Annual Report 2024 长虹美菱股份有限公司 CHANGHONG MEILING CO. LTD.二〇二四年年度报告 Annual Report 2024 1Annual Report 2024 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.Hu Xiangfei person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2024 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 directors attended the board meeting to review this report in person.Modified audit opinions notes □ Applicable √ Not applicable Pan-China Certified Public Accountants LLP issued standard unqualified Auditors’ Report for the Company’s Financial Report of 2024 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 semi-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. Risks and countermeasures” of “Section III Management Discussion and Analysis” investors are advised to read the relevant content.Securities Times China Securities Journal and Juchao Website (www.cninfo.com.cn) are the media for information disclosure for year of 2024that 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 annual period 2Annual Report 2024 √ Applicable □Not applicable The Company has no plans of cash distribution bonus shares and capitalizing of common reserves either.Whether to increase the share capital with public reserve □Yes √No The profit distribution plan for year of 2024 that deliberated and approved by 11th session of the 11th BOD was: take total shares of 1029923715 shares as base dated 31 December 2024 distributed 3.3 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 2024 Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2024 Annual Report. 3Annual Report 2024 Contents I.Important Notice Table of contents and Definitions 2 II. Company Profile & Financial Highlights. 7 III. Management Discussion & Analysis 14 IV. Corporate Governance 57 V. Environmental & Social Responsibility 92 VI. Important Events 97 VII. Change of share capital and shareholding of Principal Shareholders 170 VIII. Situation of the Preferred Shares 177 IX. Corporate Bond 178 X. Financial Report 179 4Annual Report 2024 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 2024 Definition Terms to be defined Refers to Definition Company The Company Changhong Meiling or Refers to CHANGHONG MEILING CO.LTD.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.Hefei Industrial Refers to Hefei Changhong Industrial 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.Refers to Pan-China Pan-China Certified Public Accountants LLP CSRC Refers to China Securities Regulatory Commission China Securities Regulatory Commission Anhui Province Securities Anhui Securities Bureau Refers to Regulatory Bureau SSE Refers to Shenzhen Stock Exchange 6Annual Report 2024 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 2024 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 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 ShundeGreenKel 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 (if 82852683 shares of Meiling Electric were transfer to Meiling Group by GreenKel and Meiling Group becomes the 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 2024 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 Pan-China Certified Public Accountants LLP Offices add. for CPA No.128 Xixi Road lingyin Street XihuDistrictHangzhou Signing Accountants Li Yuanliang Peng Jiahui (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 Retroactive adjustment or restatement：Changes in accounting policies and mergers under the same control Changes in the current year 2023 over the 2022 2024 previous year (+-) After Before adjustment After adjustment Before adjustment After adjustment adjustment Operating income 28601036014.9624247678970.5624377974386.9417.32%20215220192.2020607042437.68 (RMB) Net profit attributable to shareholders of the 699270051.82 741038108.54 735828796.67 -4.97% 244538734.49 216121152.94 listed company (RMB) 9Annual Report 2024 Changes in the current year 2023 over the 2022 2024 previous year (+-) After Before adjustment After adjustment Before adjustment After adjustment adjustment Net profit attributable to shareholders of the listed company after 690447639.63 749415002.39 744635309.81 -7.28% 102739493.47 73207460.84 deducting non-recurring gains and losses (RMB) Net cash flow arising from 3970257217.962082343305.042072909430.4791.53%1465155748.061463033308.55 operating activities (RMB) Basic earnings per 0.67900.71950.7144-4.96%0.23660.2098 share (RMB/Share) Diluted earnings per 0.67900.71950.7144-4.96%0.23660.2098 share (RMB/Share) Reduce by Weighted average 2.22 11.18%13.49%13.40%4.96%4.39% ROE percentage points Changes at end of the current year Year-end of2023 compared Year-end of2022 Year-end of2024 with the end of previous year (+-) After Before adjustment After adjustment Before adjustment After adjustment adjustment Total assets (RMB) 23972603896.48 19391604526.19 19638615277.46 22.07% 16200361212.80 16650451363.17 Net assets attributable to 6085800940.385824782654.096061337941.390.40%5168286872.095410040042.66 shareholder of listed company (RMB) Note: In October 2024 the Company acquired 99% of the equity of Hefei Changhong Industrial Co. Ltd.(hereinafter referred to as "Hefei Industrial") held by the controlling shareholder Sichuan Changhong Electric Co. Ltd. with its own funds; Hefei Meiling IOT Technology Co. Ltd. a subsidiary acquired 1% of the shares of Hefei Industrial held by Sichuan Changhong Innovation Investment Co. Ltd. a subsidiary of Sichuan Changhong with its own funds. On November 20 2024 Hefei Industrial has completed the industrial and 10Annual Report 2024 commercial change registration procedures for the change of shareholders of the company and obtained the "Registration Notice" issued by the Market Supervision and Administration Bureau of Hefei Economic and Technological Development Zone Anhui Province. After the completion of the equity transfer the Company holds 100% of the equity of Hefei Industrial. According to the relevant provisions of the No. 33 Accounting Standard for Business Enterprises-Consolidated Financial Statement the parent company shall adjust the opening number of the consolidated statement and at the same time shall adjust the relevant items of the comparative statements due to the addition of subsidiaries and businesses due to the business combination under the common control during the reporting period so as to treat the consolidated reporting entity as having existed since the time when the ultimate controller began to control. Accordingly the opening numbers and the numbers of the same period of the previous year have been restated.Reason for change in accounting policy and correction of accounting errors In December 2024 the Ministry of Finance issued the Interpretation No. 18 of Accounting Standards for Business Enterprises (No. 24[2024]Cai Kuai). The Company shall change its accounting policy as required and in accordance with the requirements of the notice to connect the old and the new for the first implementation of this interpretation the above-mentioned quality kind assurance that was originally included in the "sales expenses" account in 2024 and reported in the "sales expenses" statement items will be included in the "mainbusiness costs" and "other business costs" accounts as accounting policy change and presented in the “operatingcosts" statement item and the impact of the same period of the previous year is retrospectively adjusted to the relevant financial statement items and the relevant information is disclosed in the notes to the financial statements.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 11Annual Report 2024 Chinese GAAP 699270051.82 735828796.67 6085800940.38 6061337941.39 Items and amount adjusted by foreign accounting rules Foreign accounting 699270051.82735828796.676085800940.386061337941.39 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 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 accountingrules since 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 5945935887.13 9013415136.41 7815798948.22 5825886043.20 Net profit attributable to the shareholders of the listed 158489245.31 257599704.87 115953785.77 167227315.87 company Net profit after deducting of non-recurring gain/loss 188334801.75245223015.9481753224.33175136597.61 attributable to the shareholders of listed company Net Cash flow generated by -116980056.072851382750.1019585735.641216268788.29 business operation Are there significant differences between the above financial indicators or their total sum and the financial indicators related to the company's disclosed quarterly and semi annual reports □Yes √No IX. Items and amounts of non-recurring profit (gains)/losses √ Applicable □ Not applicable In RMB Item 2024 2023 2022 NoteGains/losses from the disposal of Found more in “Incomefrom assets disposal” and non-current asset (including the write-off -4568990.35 1880089.33 27602023.18“Non-operationthat accrued for impairment of assets) income/expenses”Governmental subsidy calculated into Found more in “ Financial 95130581.90 80747233.76 87509992.34 expenses” “Othercurrent gains and losses(while closely income" 12Annual Report 2024 related with the normal business of the Company the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) Net profit and loss of subsidiaries arising from mergers of enterprises under the 1918902.01 same control from the beginning of the period to the merger date Gains/losses of fair value changes arising from holding of the trading financial asset trading financial liability and Found more in "Financialinvestment earnings obtained from cost” “Investmentdisposing the trading financial asset -109763982.52 -91667835.90 36312576.77 income” andtrading financial liability andfinancial “Income of fair valueassets available for sale except for the changes” effective hedging business related to normal operation of the CompanySwitch back of the impairment for Found more in “Accountreceivables that has impairment test 28600649.28 4547547.09 2834795.58 receivable" and " independently Constrict assets" Found more inOther non-operating income and expenses “Non-operation income" 3048181.616704743.84977576.55 other than the above and " Non-operation expenses" Less: impact on income tax -4813416.23 -377847.36 3581742.85 Impact on minority shareholders’ equity 10356345.9711396138.628741529.47 (post-tax) Total 8822412.19 -8806513.14 142913692.10 -- Details of other gains/losses items that meets the definition of non-recurring gains/losses: □ Applicable √ Not applicable There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss □ Applicable √ Not applicable There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss. 13Annual Report 2024 III. Management Discussion & Analysis I. Industry of the Company during the reporting period 1. Refrigerator industry As a mature industry the refrigerator industry has entered a high-quality development stage dominated by stock replacement with a nearly satured market penetration rate. In the fourth quarter of 2024 under the strong stimulus of national subsidy policy for trade-in programs the refrigerator market showed a structural recovery.According to AVC data in 2024 the omni-channel retail volume was 40.19 million units with a year-on-year increase of 4.9% and the retail sales was RMB 143.4 billion with a year-on-year increase of 7.6%. The double increase in both volume and sales reflected the transformation of the market from "price competition" to "value upgrade" and the demand for middle- and high-end products increased significantly under the promotion of policies with the online price range of 4000-5000 yuan and offline price range of Above 8000 yuan (high-end products) becoming the main growth forces and the trend of consumption degradation reversed.The synergy advantage of the "Made in China" industrial chain is further highlighted. Relying on the intelligent manufacturing upgrade and green technology iteration the export competitiveness of home appliances continued to increase plus the growth of overseas demand which promote the export business to show a certain growth. According to industry online data the export volume of refrigerators in 2024 was 51.88 million units with a year-on-year increase of 18.6% mainly due to the recovery of demand in emerging markets and the restocking needs in European and American markets. 2. Air conditioning industry The development of China's domestic air conditioning market in 2024 followed a winding path. Amid a sluggish real estate market and generally rising commodity prices the industry's average price continued to decline in the first half of the year. However driven by the national subsidy policy for trade-in programs the industry ended the year with an uptick in performance. According to AVC's aggregated data China's domestic air conditioner sales reached 59.79 million units in 2024 with a year-on-year decline of 1.7% and the total retail sales amounted to RMB 207.1 billion with a year-on-year decline of 2%.China's air conditioner exports experienced explosive growth in 2024. Although the Red Sea crisis early in the year prolonged shipping cycle for European orders the "Belt and Road Initiative (BRI)" boosted infrastructure development in partner regions stimulating demand. Mature markets like Europe and the U.S. saw low inventory levels alongside steady demand recovery while emerging markets continued to drive growth. Rising global temperatures and overseas restocking needs further fueled export expansion. Data from Industry Online shows that China's total air conditioner exports in 2024 hit 85 million units with a year-on-year increase of 28.3%. 3. Washing machine industry In 2024 China's macroeconomic development followed a volatile trajectory exhibiting a "high-low-high" V-shaped pattern throughout the year. The home appliance market began recovering in the second half after the 14Annual Report 2024 introduction of the trade-in policy. According to AVC's aggregated data domestic sales remained stable with moderate growth: The omni-channel retail volume was 42.97 million units with a year-on-year increase of 7.3%; The retail sales reached RMB 101.4 billion with a year-on-year increase of 7.6%. On the export front growth slowed due to rising shipping costs and geopolitical uncertainties. Data from Industry Online shows China exported 45.11 million washing machines in 2024 with a year-on-year increase of 17.3%.II.Main businesses of the company engaged in during the Period As one of China's leading appliance manufacturers the Company operates four major domestic production bases (Hefei Mianyang Jingdezhen Zhongshan) and overseas facilities including Indonesia. The Company carefully builds the core competitiveness of the enterprise with technological innovation and product innovation.With the advanced R&D team and advanced technology accumulation Meiling has made continuous breakthroughs in terms of frequency conversion intelligence preservation thin wall odourlessness energy saving air cooling deep cooling simulation ultra-thin cleaning and clothing care. The Company has a national enterprise technology center a national industrial design center a national post-doctoral research center and a 5G industrial Internet innovation application laboratory. It has also established the first RoHS public testing center in Anhui Province a green energy-saving refrigerator engineering technology research center in Anhui an energy-saving and fresh-keeping green refrigerator engineering research center in Anhui and a smart home appliance manufacturing innovation center in Anhui.In recent years the Company has successively won many national honorary titles such as "Intelligent Manufacturing Pilot Demonstration Project for Smart Refrigerators" "National Green Factory" "National Quality Leading Enterprise in Home Appliance Industry" "National Technology Innovation Demonstration Enterprise" and "China Industry-University-Research Cooperation Innovation Demonstration Enterprise". At the same time the Company has won a number of technology and product innovation honors by virtue of its strong innovation products and brand and a number of Meiling products have repeatedly won multiple domestic awards constantly demonstrating Meiling's ability and strength in intelligent innovation technology.FrozenFresh Refrigerator 506WP9BDZ won the Aipulan Innovation Prize for its industry-leading FreshLock Technology (top-mounted constant-temperature fresh freezing system) which was Changhong Meiling-originated breakthrough to solve the chronic industry issue of repeated freezing cycles through disruptive cryogenic innovation and promote the upgrading of fresh-keeping consumption in the refrigerator industry; M-Fresh Refrigerator BCD-511WQ6 won the German 2024 Red Dot Award & International Industrial Design Award for its 59.9cm flush-fit installation hydro-active freshness technology constant temperature and fresh freezing technology and precise temperature/humidity monitoring system; The four-door refrigerator (cross) appearance patent won the 25th China Excellence Award for Appearance Design in 2024; The refrigerator (open state) appearance patent won the 11th Anhui Silver Award for Appearance Design in 2024;Meiling 10kg "BlueOxygen as Hand Washing" Drum Washing Machine LRS1H100D set a world record of "Drum washing machine with the least residue after rinsing in the world" in world record association. Through the "Blue Oxygen Residue Removal Technology" the product feature of "BlueOxygen as Hand Washing" series was established which promoted the R&D of washing machines to the level of "care" and "cleanliness" bringing more health and 15Annual Report 2024 science to users' life; DustFree Dual-Blade Wall AC Unit was awarded the title of "Innovative Product of the Year" by China HVAC Summit; UltraPowerSaver AC Series were selected as "Annual Energy-Efficient & Eco-Friendly Product of the Year" by Chinese Association of Refrigeration; Meiling domestic hot water and gas quick water heaters (JSQ30-MR-BS16516 JSQ30-MR-BS616Q3) won the "Boiling Quality Award" in 2024; Zhongke Meiling's Large-scale Ultra-Low Temp Automated Biobank Technology won the "Hefei Employee Innovation First Prize".After more than 40 years of development the Company has developed from single refrigerator products to a new pattern of coordinated development of refrigerators (freezers) air conditioners washing machines major kitchen appliances small home appliances and biomedical cryogenic storage equipment. Through continuous innovation it has successively introduced a series of industry-leading products such as the M-Fresh refrigerator with the best fresh-keeping effect in the industry the industry's first all-dust-free fresh air conditioner the "BlueOxygen as Hand Washing" Drum Washing Machine with the least stain residue after rinsing in the world the industry's strontium-rich intelligent tea bar machine and the ultra-low temperature medical refrigerator with a refrigeration temperature up to minus 180°C which has constantly brought consumers a fresher lifestyle with fresher products.In the future the Company will focus on the business policy of "innovation-driven resource integration industrial synergy and internal and external integration" to lead the industrial development help the industrial matrix consolidate the market foundation and accelerate its own development.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 28.335 billion yuan a 99.07% of the operating income.III. Core Competitiveness Analysis (I) Brand capability The Company is one of the well-known electrical appliance manufacturers in China with many product lines such as refrigerators freezers air conditioners washing machines kitchen appliances biomedicine and so on.In 2024 Meiling continued to implement its "Brand Revitalization" strategy adhering to the brand proposition of "Beautiful China Fresh Meiling" with a product-driven branding approach. By developing the freshest products and cultivating the freshest brand image we aim to plant the seed of "freshness" in consumers' minds mold the brand association of "Meiling = Fresh" in consumers' mind enhance brand awareness reputation and loyalty and fulfill the brand mission of "Meiling may the happiness come".In 2024 the Company enhanced brand reputation popularity and loyalty by strengthening brand publicity expanding brand dissemination channels innovating brand marketing methods and elevating content operation quality. It signed a contract to become the Official Partner of FIS Snowboard & Freeski Big Air World Cup to create winter sports IP marketing campaigns; It launched "Rose Initiative" cross-marketing programs covering metro transit systems music festivals university campuses and other scenes; It improved the ability of content 16Annual Report 2024 operation and continuously improved the content operation on new media platforms such as Douyin (TikTok) and Xiaohongshu (Little Red Book) effectively enhancing brand awareness reputation and loyalty.In 2024 the Company adhered to a value-driven approach with comprehensive efficiency improvement strengthened industrial synergy domestic-international integration user/customer-centered principle and technology leadership to accelerate product innovation. The Company has successively launched innovative products such as the Gen3 M-Fresh Refrigerator FrozenFresh Refrigerator "BlueOxygen as Hand Washing" Washing Machine and BlueOxygen Dryer-Care Machine UltraPowerSaver Air Conditioner FreshWater Tea Bar Machine and the industry's first variable frequency commercial kitchen refrigerator with the industrial chain continuously extended product structure continuously optimized and brand core competitiveness effectively improved.(II) Product capability The Company has built a whole-chain innovation system of "Technical route + Product route + Promotion route" and created a "Three-in-one" strategic layout driving industrial development with technological innovation. As a national benchmark enterprise for technological innovation the Company has built an excellent technological innovation system and quality control system. Relying on the international management systems such as ISO9001 ISO14001 as certification foundations and combined with the innovative platforms and honorary qualifications owned by the Company such as 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 Cooperative Innovation Demonstration Enterprise Anhui Green and Energy-Saving Refrigerator Engineering Technology Research Center Anhui Energy-Saving Fresh-keeping and Green Refrigerator Engineering Research Center and Anhui Manufacturing Innovation Center the Company has formed a quality assurance system covering the whole R&D and manufacturing chain. In terms of technical strategy the Company is committed to the application of basic technology research and industrialization transfer and has established a technical strategic plan with "intelligence frequency conversion simulation and fresh-keeping" as the core technologies and "refrigeration new materials and foaming" as the key technologies. In terms of product R&D it has established a four-tier R&D system of "Technical research - Platform module - Product operation unit - Planning platform" and innovatively implemented the product manager responsibility system driven by product operation unit and planning which is responsible for product definition and development internally driving cost reduction and efficiency improvement and externally driving sales promotion. Through the deep collaboration of "research production and marketing" it has realized the two-way empowerment of technological innovation and market demand and fully connected the value chain and business chain.In terms of refrigerator products through the accurate control of market trends and the research on the habits of different consumers it continued to promote product upgrading and breakthrough around the technological innovation in "fresh thin narrow embedded and intelligent" features and improved the competitiveness of 17Annual Report 2024 products constantly. In 2024 the Company continued to strengthen the business cards of "Meiling Fresh" "Meiling Thin" "Meiling Narrow" "Meiling Embedded" and "Meiling Intelligent" and focused on building a three-dimensional product matrix of technology platform and space: M-Fresh Refrigerator equipped with hydro-active freshness technology FrozenFresh Pro Refrigerator upgraded to -3.5°C with zero-impact and slight freezing New Gen Worry-Free Embedded Refrigerator equipped with double evaporator system and AI cloud moisturizing technology and differentiated 560L Zero-Flush French Door Refrigerator (Large Freezer) and economical 460L Zero-Flush Multi-Door Refrigerator which accurately met the needs of consumers for differentiation and upgrading and consolidated the brand features of "fresh thin narrow embedded and intelligent" in all directions. In terms of freezer products the Company has developed frost-free series smart screen series and ultra-freezing series freezers and innovatively developed the FrozenFresh Vertical Freezer equipped with constant-temperature and fresh freezing function as well as the industry's first variable frequency commercial kitchen freezer to create "the best freezer in the industry".In terms of air-conditioning products it insisted on a user-centered approach practiced innovative ideas speeded up technological transformation and rapidly upgraded product energy efficiency. In 2024 it continued to focus on "DustFree" and "LivingDining Pro" and continued to create differentiated product business cards of "DustFree for wall-mounted air conditioner and LivingDining Pro for floor standing air-conditioner" and launched key new products such as Q7D "DustFree FreeFlow" Wall-mounted Air-conditioner and Q7V "UltraPowerSaver" Floor Standing Air-conditioner; It continued to strengthen the "PandaLazy" hero product strategy to effectively support the implementation of the trade-in policy.In terms of washing machine products it focused on strengthening our mid-range product portfolio building a star product matrix to meet diverse market demands while continuously improving the product structure. In terms of drum washing machine it laid up "BlueOxygen as Hand Washing" Washing Machine and BlueOxygen Dryer-Care Machine to form a BlueOxygen series matrix and create the user's reliance on "Ultra Clean" and "Zero Residual" by relying on 3X cleaning power technology and innovative BlueOxygen residue removal technology. At the same time it launched the BlueOxygen Dryer-Care Machine to create a new track of "Drying & Care" achieve the feature of "Thorough Drying & Fabric Care" build the product reputation from wash - rinse - care step by step and promote the layout of products in the field of high-end and high value relying on hardcore care technology; In terms of pulsator washing machines it continued to improve the layout of Hercules Series and built a high cleaning ratio of 0.9 by relying on "Mega Motor System and PowerWave Pulsator" leading the cleaning ratio of non-frequency conversion products in the industry.In terms of major kitchen appliances and small home appliances the Company adheres to the strategy of product-driven development focusing on core product lines guided by market demand while strengthening R&D capabilities and optimizing product structure. In terms of small home appliances the Company continued to focus on core categories particularly the tea beverage product line to further solidify its market advantage. In 2024 in collaboration with China University of Geosciences (Wuhan) the Company successfully developed a proprietary strontium-rich mineralization filter technology which was applied to the "Fresh Water" Tea Bar Machine launching the N10 Fresh Water Tea Bar Machine which simulated the natural formation of mineral 18Annual Report 2024 water accelerating the dissolution of mineral elements while incorporating trace element ratio technology to achieve a scientifically balanced composition thereby enabling strontium-rich mineralization of drinking water.This innovation has gained significant market recognition. In terms of major kitchen appliances it remained user-centered principle addressing consumer pain points through innovative improvements in product technology and performance to meet diverse market demands. In 2024 it conducted research on second-generation honeycomb energy-gathering chambers stainless steel heat exchange and DC variable-frequency air supply technologies launched new products such as the H27/36 series gas water heaters with constant temperature control the second-generation energy-gathering chamber series H35/H36/H70 and the self-developed electronic control series BQ2/BQ81 which were all aimed to provide consumers with healthier and more comfortable water solutions for daily life.In terms of biomedicine the Company adheres to the brand concept of "taking products as the main carrier and delivering core values to users" focuses on the field of life sciences and continuously promotes product innovation iteration and quality upgrade based on users' scenario demand providing users with professional full-scenario solutions thus shaping a safe and stable brand image and continuously enhancing the brand influence. In the sample ecosystem sector the Company has steadily advanced key projects in standalone automation R&D tailored to users' specific scenarios providing critical equipment for building comprehensive sample storage solutions; It innovatively developed air-cooled ultra-low-temperature refrigeration technology and launched the world's first ultra-low-temperature freezer with undetectable defrosting establishing it as the optimal equipment for low-temperature storage of blood pharmaceuticals and raw solutions; It actively collaborated with multiple key institutions promoted the automation transformation of biobanks and was selected as a supported project under China’s "Key Technologies Demonstration Project for Biosafety". In the laboratory biosafety product sector the Company introduced the Ruijing series of high-efficiency biosafety cabinets clean benches and the Ruigu series of benchtop high-speed refrigerated centrifuges further diversifying its product offerings to fully meet the market's varied demands. In 2024 it developed eight centrifuge models covering the full product range forming a complete product matrix.(III) Operational capability The Company continuously improved its operational management system with business objectives as the guidance and comprehensive budget management as the key approach strengthening the integrated management of objectives budgets and performance to facilitate operational improvement and goal achievement. In terms of objective management centered on strategy and business policies and following the SMART principles it has achieved a closed-loop cycle significantly enhancing the Company's operational quality; In terms of value chain management it has established clear delineation of responsibilities rights and benefits while enhancing collaboration across all sectors of the industry forming a sound operational mechanism driven by objectives and systematically interconnected; In terms of budget management it consistently strengthened whole-process budget control realized closed-loop tracking and management of budget forecasts thereby providing strong support for business objectives; In terms of performance management it has established a business-centered and customer-focused performance evaluation system effectively stimulating the operational potential of all units. 19Annual Report 2024 Meanwhile the Company has continuously conducted benchmarking activities to consistently elevate its operational management standards and competitiveness.(IV) Marketing capability In the domestic market the Company continued to optimize the sales network and service system to provide users with high-quality services and by adhering to five key initiatives: "promoting premium products strengthening channels enhancing collaboration improving efficiency and controlling risks" drive the development of base markets and opportunity markets while continuously enhancing marketing capabilities. In terms of products it created differentiated featured products and integrated online and offline promotional resources to launch premium offerings; In terms of channels it focused on consolidating foundational channels ensuring retail channels outperforming and expanding incremental channels; In terms of management it refined organizational structures to improve operational and service efficiency. It established and enhanced an operational management system centered on rational commercial inventory management and a value management system focused on terminal retail pricing fully implemented a marketing transformation from product-line-oriented sales management to omni-channel and user-centered operation service and from single-category marketing to full-category marketing achieved product leadership and efficiency gains through steadfast benchmarking and innovative management and built marketing system capabilities and long-term growth potential.The Company has comprehensively enhanced its overseas marketing capabilities by building a team of product-specialized marketing professionals and cultivating versatile marketing talents with dual-product-line operational expertise; It has strengthened the promotion construction established the systematic promotion capability for overseas markets around product packaging terminal construction and training empowered overseas customers of B2B with the promotion mode of B2C and realized the continuous growth of sales scale of B2B through "building terminals and promoting sales"; In terms of key account (KA) business it has deepened our customer-centered transformation and upgrading to enhance service capabilities and improve customer satisfaction; In terms of channel strategy it has replaced traditional trade approaches with market-driven methodologies to boost planning capabilities consistently adhered to its "business-oriented and customer-focused" guiding principle to achieve rapid development stable operation profitable scale expansion and comprehensive marketing capability enhancement. In terms of channel sales it focused on leveraging dominant channels while expanding into emerging markets through strategic key account development initiatives; In terms of brand building it enhanced product support for subsidiaries established benchmark markets vigorously developed brand agents and implemented multi-channel strategies to build momentum for brand growth; In terms of product promotion it closely followed market trends increased the proportion of inverter products optimized its product portfolio enhanced new product launches and ultimately strengthened its product competitiveness.IV. Main Business Analysis In 2024 amid intense competition in the home appliance industry the Company adhered to value-oriented principles and comprehensive efficiency improvement while strengthening industrial synergy and 20Annual Report 2024 internal-external integration resulting in steady enhancement of operational quality. During the reporting period the Company's operating income reached RMB 28.601 billion with a year-on-year of 17.32% its net profit attributable to the parent company reached RMB 699 million A year-on-year decrease of 4.97% and its benign operation ability continued to improve.(I) Refrigerator (freezer) industry In domestic market it adhered to the principle of "capturing existing markets expanding new segments and enhancing capabilities" comprehensively upgraded its existing channels current customer base new product categories and emerging distribution networks at the same time it provided high-quality services to customers on their product operation capabilities and brand management competencies with particular emphasis on advancing trade-in programs and strengthening end-to-end trade-in service systems to further stimulate replacement demand.In R&D the Company maintained a user-centered approach anchored in its customer value innovation engine and fully implemented an experience-oriented strategy across its R&D and manufacturing operations. By deeply understanding users' needs and precisely addressing their pain points it drove product system advancement toward intelligent and premium-quality development through dual engines of intelligent technology empowerment and high-end feature upgrades. In marketing the Company has established a dual-track strategy of "Premium products + Hero SKUs" focusing on five innovative dimensions: "freshness thinness narrowness embeddability and intelligence" successfully creating an integrated online-offline product matrix. The sequential launch of M-Fresh Cross-Generation models has consistently reinforced Meiling's "freshness" brand positioning.The FrozenFresh series achieved marketing resonance across both online and offline channels with full-scale volume growth further strengthening the "fresh-frozen" brand perception. The Seamless-Embed series has built a comprehensive channel firewall while gradual product line integration continued to enhance Meiling's product family identity ultimately driving industrial scale expansion and brand reputation elevation.In overseas markets at the product end the Company has increased R&D investment in mid-to-high-end products with the successful launch of its overseas Cross series not only driving scale expansion but also facilitating product mix upgrades to enhance operational quality; At the R&D end it maintained innovation-driven development introduced differentiated products such as kimchi refrigerators for niche markets to tap into new blue ocean opportunities; At the marketing end it strengthened market capability building by fully leveraging integrated R&D and supply chain competencies along with domestic sales and export synergies achieving sustained growth in KA business.During the reporting period the Company's refrigerator (freezer) business realized an income of about RMB 9.296 billion with a year-on-year increase of 5.53%. (II) Air conditioning industry In the domestic market the Company has implemented the business strategy of "product first brand priority channel co-construction and direct user engagement" to maintain steady development. Focusing on its two product categories - "DustFree" and "LivingDining Pro" - it launched key new products including the Q7D "DustFree FreeFlow" Wall-mounted Air-conditioner and Q7D "UltraPowerSaver" Floor Standing Air-conditioner 21Annual Report 2024 while strengthening its "Panda Lazy" hit product strategy to effectively support the trade-in policy implementation; Through event marketing and media campaigns the Company has enhanced brand promotion and continuously elevated brand influence; It has progressively advanced channel co-construction accelerated resource integration and adhered to integrated online-offline operations to achieve more refined channel management; It insisted on direct user engagement implemented integrated "delivery-installation-service-recycling" processes to strengthen service guarantee meet market service demands and effectively improve user experience.In overseas markets the Company has consistently promoted healthy business development by focusing on brand momentum building product upgrades quality transformation regional balance and digital empowerment.In terms of brand-building it has steadfastly implemented the brand-first development strategy deepened its presence in base markets while continuously strengthening brand foundations; In terms of market expansion it has concentrated on key strategic markets achieved significant business growth through targeted market strategies; It has also actively explored new regions and markets with notable breakthroughs while simultaneously accelerating new client development to gradually improve its customer system thereby laying the foundation for future performance growth.During the reporting period the Company's air-conditioning business realized an income of about RMB 15.407 billion with a year-on-year increase of 33.20%. (III) Washing machine industry In washing machines the Company insists on differentiated competition strategy and optimizes and adjusts the product structure. In domestic market the Company has adopted a user-centered approach with product excellence as its key driver to deepen channel transformation through dual engines of product and technological innovation consistently advance premiumization and achieve scale expansion. Capitalizing on the trends of flush-embedded designs and large-capacity products it has strengthened its mid-range premium product portfolio while reinforcing differentiated competitive advantages of "As Hand Washing" and "Hercules". It has launched products including the BlueOxygen dry-care set Flush-Embedded As Hand Washing series and 12kg Hercules pulsator series to significantly enhance market share and mid- and high-end product influence.In oversea markets the Company has expanded client resources through refrigerator-washer synergies focused on key regions and major accounts and by introducing color-screen displays 7kg models it has delivered incremental value to existing clients enabling rapid growth of its washing machine business in key markets.During the reporting period the Company's washing machine business realized an income of about RMB 1.747 billion with a year-on-year increase of 31.44%. (D) Major kitchen appliance and small home appliance industry In the major kitchen appliance and small home appliance industry the Company has consistently focused on core product lines while actively driving technological upgrades and iterations of products. It has successfully launched new products such as the N10 Fresh Water Series tea bar machine to continuously enhanced brand 22Annual Report 2024 influence; It has accelerated product portfolio optimization and upgrading implemented quality-efficiency enhancement strategies gradually phased out the product categories with poor market performance and unexpected consumer feedback and output a comprehensive category planning outline; Through proactive business strategy adjustments and deep operational transformation it has established a compliance management system centered around core product operations to facilitate high-quality industry development.During the reporting period the Company's major kitchen appliance and small home appliance business realized an income of about RMB 1.492 billion with a year-on-year decrease of 19.34%.(V) Biomedical industry In the domestic market the Company continuously implemented the reform and reconstruction of user-centered channel organization co-ordinated the platform resources promoted the horizontal expansion and vertical deepening of market segment channel system deeply explored the user demand further enhanced the product strength and service strength expanded the user coverage and enhanced the market competitiveness and market share. Through the promotion of new products the upgrading of service capabilities and the donation of scholarships it has continuously strengthened its market promotion and continuously improved its brand awareness.In overseas markets the Company has adhered to the strategy of "increasing existing clients while expanding new client" deepened strategic cooperation with current partners while actively developing emerging markets to strengthen both the quality and quantity of its international distribution network; Its expansion in emerging markets has maintained strong momentum with multiple successful project bids accompanied by the proactive introduction of new products; It made continuous improvement in delivery efficiency and customer service capabilities steadily enhanced client loyalty while upgrading its integrated competencies of "Product - Promotion - Delivery - After-sales" ultimately establishing a sustainable mutually beneficial channel partnership ecosystem.During the reporting period the Company's biomedical business realized an income of about RMB 264 million with a year-on-year decrease of 5.36%.(ii) Revenue and cost 1. Constitute of operation revenue In RMB 20242023 Increase/decrease Ratio in Ratio in y-o-y (+-) Amount operation Amount operation revenue revenue Total operation 28601036014.96100%24377974386.94100%17.32% revenue Manufacture of 28335360230.42 99.07% 24128954793.41 98.98% 17.43% 23Annual Report 2024 household appliances Other business 265675784.54 0.93% 249019593.53 1.02% 6.69% On products Refrigerator freezer 9560071716.63 33.43% 9088215517.67 37.28% 5.19% Air-conditioning 15407055870.21 53.87% 11566440523.53 47.45% 33.20% Washing machine 1746832584.10 6.11% 1329017674.88 5.45% 31.44% Small appliance and 1491831582.425.22%1849440139.127.59%-19.34% kitchen & toilet Other products 129568477.06 0.45% 295840938.21 1.21% -56.20% Other business 265675784.54 0.93% 249019593.53 1.02% 6.69% Area Domestic 18352947530.79 64.17% 16772667160.17 68.80% 9.42% Foreign 10248088484.17 35.83% 7605307226.77 31.20% 34.75% Sub-sale model Direct sales 265675784.54 0.93% 249019593.53 1.02% 6.69% Distribution 28335360230.42 99.07% 24128954793.41 98.98% 17.43% 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 profit rease of crease of Operating revenue Operating cost operating ratio operating gross profit revenue cost y-o-y ratio y-o-y y-o-y On Industry Manufacture of 28335360230.4225262724426.5710.84%17.43%20.42%-2.21% household appliances On products Refrigerator freezer 9560071716.63 8085319070.60 15.43% 5.19% 8.39% -2.50% Air-conditioning 15407055870.21 14334050593.14 6.96% 33.20% 35.82% -1.79% Area Domestic 18108891124.51 16073739954.59 11.24% 9.52% 11.72% -1.74% Foreign 10226469105.91 9188984471.98 10.15% 34.65% 39.40% -3.06% Sub-sale model Sub-sale 28335360230.42 25262724426.57 10.84% 17.43% 20.42% -2.21% 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 24Annual Report 2024 In RMB Increase/decrease Industries Item Unit 2024 2023 y-o-y (+-) 10 thousand Sales volume 3520.59 3486.07 0.99% Manufacture of pieces/set household 10 thousand Production 3615.15 3517.94 2.76% pieces/set appliances 10 thousand Inventory 262.95 140.96 86.54% pieces/set Reasons for y-o-y relevant data with over 30% changes √ Applicable □Not applicable At the end of 2024 the inventory increased by 86.54% YOY compared with the end of the previous year which was mainly due to the increase in air conditioning inventory. Based on the continuous strategic cooperation between domestic air conditioners and key customers the export of international air conditioners has shown an explosive growth trend in the industry and the production and sales of the air conditioning industry have increased significantly. In order to ensure normal delivery and advance reserves the inventory level increased significantly. 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 2024 2023 Increase/dec Industries Item Ratio in operation Ratio in rease y-o-y Amount Amount cost operation cost (+-) Manufacture of 23131923420 Raw material 91.57% 19137016471.04 91.22% 20.88% household appliances .76 Description: None 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) 15762630982.56 Proportion in total annual sales volume for top five clients 55.11% Proportion of the related parties’ sales in total annual sales volume for 27.96% top five clients Information of top five clients of the Company 25Annual Report 2024 Proportion in total annual No Name Sales (RMB) sales 1 Client I 7342537500.60 25.67% 2 Client II 6777644358.51 23.70% 3 Client III 654258536.34 2.29% 4 Client IV 541049259.02 1.89% 5 Client V 447141328.09 1.56% Total -- 15762630982.56 55.11% Other notes of main clients □ Applicable √ Not applicable Main suppliers of the Company Total purchase amount from top five suppliers (RMB) 6268281417.27 Proportion in total annual purchase amount for top five 23.85% suppliers Proportion of related party’s purchase in total annual purchase 13.73% amount for top five suppliers Information of top five suppliers of the Company Proportion in total annual No Name Sales (RMB) purchase 1 Supplier 1 2471848576.60 9.41% 2 Supplier 2 1143166887.01 4.35% 3 Supplier Three 1135390929.15 4.32% 4 Supplier Four 776568478.91 2.95% 5 Supplier Five 741306545.60 2.82% Total -- 6268281417.27 23.85% Other notes of main suppliers □ Applicable √Not applicable During the reporting period the trade business income accounted for more than 10% of the operating income □Yes □No □Not applicable (iii) Expenses In RMB Increase/dec 2024 2023 rease y-o-y Note of major changes (+-) Sales expense 1477154043.38 1423788018.72 3.75% No major changes.Administrative expense 359672540.20 371930885.44 -3.30% No major changes.It’s mainly due to the reduction of Financial expense -168543395.34 -120449809.04 -39.93% exchange losses R&D expense 637242233.83 597529355.84 6.65% No major changes.(iv)Investment in R&D √Applicable □Not applicable 26Annual Report 2024 Expected impact on the future Projects Purpose Progress Goals to be achieved development of the Company User-oriented and Create the best fresh-keeping user-demand-centered find and Be the best refrigerator with products in the industry with solve the pain points of users in continuous iterative product Meiling Fresh features as the food preservation build the best upgrading to provide users with main line supplemented by refrigerator in full-space full-space fresh-keeping in the Completed the R&D of M-Fresh brand-new exterior and interior fresh-keeping in the industry and industry (cold water molecule product has Refrigerator design and continue to create develop a new generation of activation and fresh-keeping been launched.Meiling Refrigerator's M-Fresh product which continues technology + fresh freezing fresh-keeping feature to Meiling Fresh features technology at constant freezing enhance Meiling's high-end supplements the layout of 10000 temperature).market share. yuan+ products and improves the high-end market share.The Gen1 Frozen Fresh Refrigerator has solved the difficulty of keeping meat fresh for users in long-term Meet the short-term and Further consolidate Meiling's storage but it did not solve the pain long-term storage requirements leading position in meeting the R&D of Frozen Completed the point of thawing convenience in for meat by adding zero-impact needs of users in fresh-keeping and Fresh Gen2 product has short-term storage which takes time micro-freezing technology at use of meat in multiple scenarios Refrigerator been launched.to thaw. The purpose of this project -3.5°C in the refrigerating and further enhance the product is to solve such convenience pain chamber. competitiveness.point in short-term storage of meat for users.Continue the features of Frozen Extend the fresh-keeping Be the best and differentiated Fresh Refrigerator apply technology of Meiling Fresh in vertical (with constant-temperature constant temperature fresh freezers and consolidate it and R&D of Frozen Completed the fresh freezing technology) freezer in freezing technology to vertical achieve corner overtaking and rapid Fresh Vertical product has the industry to meet the freezer create the best improvement in the high-end Freezer been launched.fresh-keeping needs of users for fresh-keeping vertical freezer market of freezers by the frozen food. in the industry and enhance its constant-temperature fresh-keeping product competitiveness. technology.Research on and develop blue "Blue Oxygen as Hand Washing" Enhance the image of high-end oxygen residue removal drum washing machine upgrades R&D of "Blue product in drum washing machines technology and in the the rinsing technology on the basis Completed the Oxygen as Hand solve the consumers' pain points of "pre-washing-washing-rinsing of washing further consolidating product has Washing" Drum detergent residues and further " effectively remove detergent Meiling washing machine's been launched.Washing Machine consolidate the "Washing" features residues and improve cleaning "washing" features and it of Meiling Washing Machine. ability through nano innovatively adopts TFT knob micro-bubbles and blue display and 506mm ultra-thin oxygen as well as "dissolution flat-embedded body to enhance 27Annual Report 2024 decomposition and reduction". Meiling drum washing machine's product image and market influence with the proportion of high-end products continuing to increase."Blue Oxygen Dryer" develops the low-temperature and gentle drying technology of 40°C heat pump to meet the drying care needs and at the same time it adopts double-rotor inverter motor to fill the blank of Through the blue-oxygen hardware configuration of dryer; drying care technology and creates the industry's first ion innovatively develop the adsorption technology for blue-oxygen dryer with R&D of "Blue Newly develop heat pump dryer to Completed the nano-scale 7-level adsorption dust "drying permeating and Oxygen Dryer" Heat fill the category blank and expand product has removal which meets the chip caring" and open up the light Pump Dryer the product line. been launched. removal demand under the pet care track which helps Meiling economy.The successful listing of washing machine to "Blue Oxygen Dryer" has formed successfully build the third the product features of Meiling pole of washing industry.washing machine from "washing care" to "drying care" which has effectively enhanced the industrial image and laid the foundation for opening up the third pole of industrial growth.The energy efficiency of 8kg and 10kg washing and drying platform products for export has reached The energy efficiency of A/D level respectively which is the Through technical upgrading Continuous washing machines for export highest energy efficiency level for improve the washing ratio of upgrading of energy drum products reaches A-30% drying with fixed frequency fans in washing machines for domestic sale Completed the efficiency and A/D energy efficiency the EU market at present. At the reach the advanced level of the technology has technology of becomes the top priority. The same time the energy efficiency of industry in terms of energy been fully washing machines domestic drum products are 10kg BLDC single drum washing efficiency of export products and applied.for domestic sale developed with a high washing machine has reached A-30% far meet the needs of customers and and export ratio of 1.2 reaching the exceeding the high-end energy consumers.advanced level in the industry. efficiency level in the market meeting the demands of customers in different regions; The drum 10kg and 12kg platform products for domestic sale reached a washing 28Annual Report 2024 ratio of 1.2 which is in the first echelon in the current domestic sale market effectively enhancing the confidence of customers and users in Meiling washing machine.The technical achievements are High-frequency PFC popularized and applied in R&D and Solve the long-term reliability technology and high-efficiency ChanghongYunfan Series and other application of problem of air-conditioning products Complete heat exchange technology have products which won the world high-frequency PFC in complex environment and the pain technology reached the advanced level in record certification and its and high-efficiency point of user experience improve the R&D and the industry forming an popularization and application will heat exchange refrigeration and heating realize product intelligent control system greatly enhance the performance technology for performance of air-conditioner and application. scheme and improving the and comprehensive inverter air support green and low-carbon energy efficiency of control competitiveness of products with conditioner development.and refrigeration systems. various specifications and enhance the user experience.It has obtained the authoritative The Through the 3D two-wing air certification of "saving 3000 kWh Through technological innovation development supply technology realize the per year" which helps Changhong Development of make breakthrough in traditional has been uniform temperature control of to become a green consumption "Giant Energy energy efficiency respond to the completed and the whole house consolidate benchmark increasing the market Saving" Cabinet national green and low-carbon the products the brand positioning of "Seiko share of energy-efficient products Air-Conditioner policy and meet consumers' demand have been Quality" and upgrade the and promote the industry to Products for efficient and energy-saving air launched in the industry energy efficiency transform into an ultra-wide conditioners. market in standards. temperature range energy-saving batches.and comfortable direction.The Through the technical innovation of Strengthen the product development Establish a product model of Development of double louvers and all-dust-free attribute label of Changhong has been product quality improvement and All-dust-free and design solve the pain points of users practice the product concept of completed and air supply status visualization Free Air on dust accumulation and straight "Seiko Quality Comfort in the products enhance brand reputation and Wall-mounted wind blowing in traditional air Every Degree" for Changhong have been promote the upgrading of healthy Air-conditioner conditioners and improve the health Air Conditioner and push the launched in the air supply technology for industry Products and comfortable air supply industry into an all-dust-free market in products.experience. era.batches.Technical research On the basis of the existing series of Carry out continuous optimization and application of ultra-low temperature products Product Mass production and sales on the performance of the high conversion further develop new throttling application achieved Company's existing ultra-low refrigeration system technology to realize the controllable stage temperature products which will in ultra-low and stable cooling of the system; help consolidate the Company's 29Annual Report 2024 temperature Research on and develop compressor leading edge in the field of refrigerated storage initial pressure relief and ultra-low temperature products box intermediate air supply technology after the project is completed.to achieve the optimal operating conditions of the whole process and higher product reliability; Research on and develop more environmentally friendly cryogenic mix refrigerants.The project starts with the air circulation and isolation technology combined with the self-developed control system and ergonomic Meet the market demand for Research and design to provide all-round The products sterility of sample operation space application of biosafety protection for laboratory have been which is conducive to the intelligent air personnel article operation and mass-produced Mass production and sales Company's business expansion in circulation and experimental environment. The and achieved new fields new industries and new isolation technology products can be widely used in continuously markets; Improve the layout of the in biosafety cabinet medical and health care disease upgraded.Company's industrial chain.prevention and control food safety biopharmaceuticals environmental testing and various biological laboratories.Aiming at the needs of centrifuge Strengthen the layout of centrifuge work in laboratory sample industry and enhance the The first pretreatment the project designs and Company's market Laboratory product of the develops a series of centrifuge competitiveness; By providing biosafety series has been products in freezing laboratory and diversified centrifuge products technology - officially optimizes and upgrades the Mass production and sales attract more potential customers Centrifugal launched and structure control system and drive achieved and meet users' pursuit of efficient technology research new products of system of the centrifuge to improve stable and reliable equipment; and product line centrifuge the overall performance of the Promote the Company's expansion business have centrifuge and meet the users' pursuit technological innovation and been expanded.of efficient stable and reliable industrial upgrading and enhance equipment. its profitability and market share.Develop a tea bar machine with The The strontium-rich filter The first brand-new product of brand-new appearance and development element has a strontium Fresh Water Series which has sold MC-N10 Tea Bar strontium-rich mineralization was completed content of more than 0.2mg/L 150000 sets in 9 months laying a Machine Project function; At the same time it has the in April 2024 in its service life reaching the solid foundation for building our functions of voice Bluetooth and the product national natural strontium Fresh Water Series products.antibacterial pipeline and backrest has been mineral water standard 30Annual Report 2024 free installation. launched. (GB8537 natural mineral drinking water).The It uses the MY-AJ15 box mold A tea bar machine with a transparent development which has been screen and a strontium-rich It expands the product model of was completed mass-produced with the MC-H50 Tea Bar mineralized filter element is large box with 400mm width and in September backrest displayed on a Machine Project developed based on the box mold of makes maximum use of the existing 2024 and the transparent screen and a MY-AJ15 a mass-produced model box mold.product has strontium-rich mineralized and some new molds of backrest.been launched. filter element.Company's R & D personnel situation 2024 2023 Change proportion Number of Research and Development persons 1781 1667 6.84% (persons) Proportion of Research and Increase by 1.83 percentage 16.90%15.07% Development persons points Academic structure of R&D personnel Undergraduate 1160 1217 -4.68% Masters 146 113 29.20% Age composition Under 30 570 464 22.84% 30~406686306.03% Investment of R&D 2024 2023 Change proportion Investment for R&D (RMB) 801412208.23 702362069.24 14.10% R&D investment/Operating 2.80%2.88%-0.08% revenue Capitalization of R&D 207422076.26147821273.9640.32% investment (RMB) Capitalization of R&D 25.88%21.05%4.83% investment/R&D investment 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 Item 2024 2023 Increase/decre 31Annual Report 2024 ase y-o-y (+-) Subtotal of cash in-flow from operation activity 32666460604.66 26188015669.10 24.74% Subtotal of cash out-flow from operation activity 28696203386.70 24115106238.63 19.00% Net cash flow from operation activity 3970257217.96 2072909430.47 91.53% Subtotal of cash in-flow from investment activity 13768606653.54 1646745380.23 736.11% Subtotal of cash out-flow from investment activity 15464094400.84 1920380073.58 705.26% Net cash flow from investment activity -1695487747.30 -273634693.35 -519.62% Subtotal of cash in-flow from financing activity 2602742833.92 2299657561.65 13.18% Subtotal of cash out-flow from financing activity 3311631839.18 1841587354.21 79.82% Net cash flow from financing activity -708889005.26 458070207.44 -254.76% Net increased amount of cash and cash equivalent 1584920797.49 2270781048.58 -30.20% 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 in net cash flow from investment activities is mainly due to the year-on-year increase in cash paid by the Company for investment.The large change in net cash flow generated by fund-raising activities is mainly due to the year-on-year increase in cash paid by the Company to repay debts in this period.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 be Amount Ratio in total profit Note sustaina ble (Y/N) Mainly due to the interest income Investment income 35709856.70 4.39% obtained by the company during the No holding period of the debt investment Mainly due to the change in the fair Gains/losses from fair value of the company's irrevocable -87184652.30 -10.72% No value changes orders and foreign exchange contracts in this period Mainly due to the company's provision Asset impairment -116583058.63 -14.33% for inventory depreciation and intangible No asset impairment losses in this period 32Annual Report 2024 Mainly due to the year-on-year increase Non-operation income 10938462.86 1.34% in the company's income from liquidated No damages and other income in this period Mainly due to the company's non-current Non-operation 11928863.23 1.47% asset scrapping losses and relocation No expenditure losses in this period VI. Analysis of assets and liability (i) Major changes of assets composition In RMB Year-end of 2024 Year-begin of 2024 Ratio Ratio in Ratio in total changes Note of major changes Amount total Amount assets (+-) assets Mainly due to the decrease in the 10492450750. proportion caused by the Monetary fund 43.77% 8842623235.72 45.03% -1.26% 61 increase in the total assets of the Company in this period Mainly due to the company's recovery of customer payments Account 1527978374.4 6.37% 1680303240.09 8.56% -2.19% and increase in total assets in receivable 8 this period resulting in a decrease in the proportion Contract assets 2763866.97 0.01% 13261690.62 0.07% -0.06% No major changes.Mainly due to the company's 3514968009.3 Inventory 14.66% 2022749908.45 10.30% 4.36% business growth and increase in 4 inventory reserves in this period Investment real 66720850.69 0.28% 50920487.71 0.26% 0.02% No major changes. estate Long-term Mainly due to the company's equity 81511146.82 0.34% 112745811.75 0.57% -0.23% recovery of investment in joint investment ventures in this period Mainly due to the increase in 2218850660.1 the company's total assets in Fix assets 9.26% 2291776177.80 11.67% -2.41% 2 this period resulting in a decrease in the proportion Construction in 97807983.40 0.41% 69920839.20 0.36% 0.05% No major changes. progress Mainly due to the company's Right-of-use 113784190.78 0.47% 35146281.21 0.18% 0.29% new factory leasing in this assets period Mainly due to the company's Short-term 766747286.01 3.20% 1134102419.03 5.77% -2.57% repayment of bank loans in this loans period 33Annual Report 2024 Year-end of 2024 Year-begin of 2024 Ratio Ratio in Ratio in total changes Note of major changes Amount total Amount assets (+-) assets Mainly due to the increase in Contract 609737871.24 2.54% 405733638.26 2.07% 0.47% the company's advance payment liability for goods in this period Mainly due to the company's Long-term loans 108000000.00 0.55% -0.55% repayment of bank loans in this period Mainly due to the company's Lease liability 101826405.91 0.42% 28976808.54 0.15% 0.27% new factory leasing in this period Foreign assets account for a relatively high proportion □Applicable √Not applicable (ii) Assets and liability measured by fair value √Applicable □ Not applicable In RMB Accumu lative Amount changes Devaluation Changes of fair Amount of Amount at at the of fair of Item value gains/losses purchase in Sales in the period Other changes end of the beginning value withdrawing in this period the period period period reckone in the period d into equity Financial assets 1.Trading financial assets 13070000 (derivative 13070000000.00 000.00 financial assets excluded) 2. Derivative 39236447. 32773626.8072010074.43 financial 63 assets 3. Accounts 164185871516987953 receivable -124870786. 40.34.83 financing 51 4. Other non 674139515676094304.4 current 4172388.96 2217600.00.484 financial 34Annual Report 2024 Accumu lative Amount changes Devaluation Changes of fair Amount of Amount at at the of fair of Item value gains/losses purchase in Sales in the period Other changes end of the beginning value withdrawing in this period the period period period reckone in the period d into equity assets 3.Accounts receivable financing Subtotal of -124870786.2265092332 financial 23552347 36946015.76 13070000 13072217600.00 51.70 assets 03.45 000.00 The above -124870786. 2265092332 2355234736946015.761307000013072217600.00 total 51 .70 03.45000.00 Financial 32229012. 156359680.9 124130668.06 liabilities 86 2 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 “26. Assets withrestricted ownership or use rights” in “V. Note of consolidate financial statement” carried under Section X.Financial Report VII. Investment analysis (i) Overall situation √Applicable □ Not applicable Investment in the same period of last Investment in the reporting (RMB) Changes year ( RMB) 475033242.3845000000.00955.63% 35Annual Report 2024 (ii) The major equity investment obtained in the reporting period √Applicable □ Not applicable In RMB W he th er in vo Date of Meth Capi Type lv Index of Share Term of Status as of Current disclosure Name of od of Amount of tal Part of Expecte ed disclosure (if Principal business holdin investm the balance investment (if invested invest investment sour ners produc d return in applicable g ratio ent sheet date profit and loss applicable ment ces ts a ) ) la ws uit (Y /N ) General items: Technical service technical Manuf development technical consultation technical acturin Sichuan exchange technology transfer and technology g and Changh popularization; Software development; Software sales ong During the sales; Information technology consulting services; Newl Indire of Intellige reporting Industrial Internet data service; Information ct freque Juchao Website nt Air y 100000000 Self- Long-ter period it Not app N March system integration service; Electronic component holdin N/A ncy -1982983.06 www.cninfo.co Conditio establ .00 fund m invested licable o 152024manufacturing; R&D of special electronic g of conver m.cn（2024-006)ning RMB 100 materials; Integrated circuit manufacturing; R&D ished 100% sion Technol million of home appliances; Manufacturing of home drive ogy Co.appliances; Sales of home appliances; Installation control Ltd.service of home appliances; Sales of refrigeration panel and air conditioning equipment; Manufacturing of in air 36Annual Report 2024 refrigeration and air conditioning equipment; conditi Sales of electronic products; Manufacturing of oning special electronic materials; Sales of spare parts industr for home appliances; Sales of metal materials; y Manufacturing of communication equipment; (includ Non-residential real estate lease; General cargo ing storage services (excluding dangerous chemicals special and other items that need permission and air approval); Import and export of goods. (Except for conditi items that are subject to approval according to law oners) business activities shall be independently carried out according to law by virtue of business license) General projects: Manufacturing of electronic component; Retail of electronic components; Sales of electronic products; Manufacturing of Total Manuf October household appliances; Sales of household direct acturin 122024 Hefei appliances; Labor service (excluding labor and Completed g and Cobober Changh dispatch); Non-residential real estate lease; indire Self- equity-to-pri Juchao Website Purch 375033242 Long-ter sale of Not app N 14 2024 ong Mechanical equipment lease; Import and export of ct N/A ce payment 2003295.34 www.cninfo.co ase .38 fund m househ licable o NovemberIndustry goods; Import and export of technology; R&D of shareh and equity m.cn（2024-064)old 302024 Co. Ltd. household appliances; Mold sales; Mold olding transfer applia November manufacturing (except for licensed business of nces 22 2024 projects that can be operated independently 100% according to law and are not prohibited or restricted by laws and regulations) 475033242 Total -- -- -- -- -- -- -- -- -- 20312.28 -- -- --.38 (iii)The material non-equity investment in the reporting period □ Applicable √Not applicable The Company invested RMB 88 million in the refrigerator front-end capacity improvement project of Hefei manufacturing base. For details please refer to Section VI "XIII. Explanation of Other Important Matters". 1. As of the end of the reporting period the project is still under construction and not completed and the amount of related project contract is more than RMB 200 million. 37Annual Report 2024 □ Yes √ No □ Not appli8cable (iv)Financial assets investment 1. Securities investment □ Applicable √ Not applicable The Company had no securities investment in the reporting period. 2.Derivative investment √ Applicable □ Not applicable (1) Derivatives investment for hedging purposes during the reporting period √ Applicable □ Not applicable In RMB 10000 Profit and loss Changes in the Ratio of investment Amount at the Investment of fair value cumulative fair Amount purchased in the Amount sales in the amount at period-end in Type Initial investment beginning amount at change in the value included in reporting period reporting period net assets of the Company period period-end current period the equity at period-end Forward foreign exchange 630614.02332515.07-9135.7001094850.13932563.85496923.8781.65% contract Total 630614.02 332515.07 -9135.70 0 1094850.13 932563.85 496923.87 81.65% Specific principle of the accounting policy and calculation for derivatives in Not applicable the Period compared with last period in aspect of major changes Description of actual profit and loss during the reporting During the reporting period the Company confirmed the income from derivatives investment of RMB-21.2252 million.period Description of hedging 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 38Annual Report 2024 effect exchange contracts according to the foreign exchange receipt amount predicted by sales and the target cost exchange rate. The delivery period matched with the predicted return amount and the agreed delivery amount matched with the predicted return amount to avoid the risks caused by exchange rate fluctuations. The cash flow changes in the hedging tools during the reporting period can offset the cash flow changes in the hedged items caused by exchange rate fluctuations which met the requirements of hedging effectiveness and achieved the hedging objectives.Capital resource Own fund Risk analysis: 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 Risk analysis and controlling to ensure reasonable profit level.measures for derivatives 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 holdings in the Period addition forward foreign exchange transactions are processed with bank credit will not affect liquidity of company funds.(including but not limited to 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 market risk liquidity risk 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 credit risks operation risk 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 and law risks etc.) may bring to the Company is very low. 4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related management system which defines the operation process and responsibility to prevent and control risks. 5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are processing. The Company will strengthen legal review and choose good bank to carry out this kind of business as to risk control.Invested derivative products have changes in market price or fair value in the Period as 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 for analysis of the fair value 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 of derivatives disclosed 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 specific applied methods and trading financial assets and liabilities.correlation assumption and parameter setting 39Annual Report 2024 Lawsuit involved (if Not applicable applicable) Disclosure date for approval from the Board for March 302024 investment of derivatives (if applicable) Disclosure date for approval from board of shareholders April 262024 for investment of derivatives (if applicable) 40Annual Report 2024 (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 41Annual Report 2024 (i) Particular about main subsidiaries and stock-jointly companies net profit over 10% In RMB Register Company name Type Main business Total assets Net assets Operating revenue Operating profit Net profit capital Research and Zhongke Meiling development Subsidia Cryogenic Technology manufacturing and 96730934 747326052.54 611741106.18 295773281.94 18785418.13 18087029.57 ry Co. Ltd. sales of ultra-low temperature freezer Manufacturing of Jiangxi Meiling Electric Subsidia refrigeration and 50000000 419664286.58 169822325.58 907613727.78 12438813.90 12341622.60 Appliance Co. Ltd. ry freezer Manufacturing of Mianyang Meiling Subsidia refrigeration and 100000000 174120831.37 125809187.80 394653666.78 3948567.20 3885488.05 Refrigeration Co. Ltd. ry freezer R&D Sichuan Changhong Subsidia manufacturing and Air-conditioner Co. 850000000 6802632353.56 1436329167.70 10128734269.01 239880454.52 215866193.27 ry domestic sales of Ltd.air-conditioning R&D Zhongshan Changhong Subsidia manufacturing and 3340000004170891500.45526881778.445640129428.53198772910.59174173856.42 Electric Co. Ltd. ry foreign sales of air-conditioning Hefei Meiling Group Subsidia Sales of white 800000001205253847.15-225069459.405511639410.5968182966.5067066953.66 Holdings Limited ry goods R&D and sales of household Hefei Changhong Subsidia appliances kitchen Meiling Life 50000000 679748529.06 179209903.42 1335609757.73 51797109.67 39416387.36 ry appliances and Appliances Co. Ltd.small home appliances 42Annual Report 2024 (ii) Subsidiary obtained and disposed in the period √ Applicable □ Not applicable The method of obtaining and disposing The influence to the whole production and Company name subsidiaries during the report period performance The wholly-owned subsidiary of the company Changhong Air Conditioning invested 100 million yuan to establish. The establishment of the company aims to further enhance key core technological capabilities and asset utilization Sichuan Changhong Intelligent improve electronic product processing services Air Conditioning Technology Investment establishment and quality assurance capabilities and engage in Co. Ltd related businesses centered on manufacturing and selling variable frequency drive control boards for the air conditioning industry (including special air conditioners). It has little impact on the overall production operation and performance of the company.Hefei Changhong Industrial Business consolidation under the same Minor effect on the overall production and Co. Ltd. control operation and performance of the company (iii) 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 (I) Macro-environmental analysis Domestic policies continue to promote consumption upgrading and green transformation accelerate the development of green smart home appliance market through trade-in and consumption subsidies and create growth space for high-end intelligent and energy-saving products. At the same time technological progress in energy conservation and emission reduction has helped popularize environmentally-friendly home appliances and promoted the industry to upgrade to a low-carbon direction. However the home appliance industry still faces multiple challenges such as weak consumer demand shrinking real estate market and demographic changes plus the fierce competition in the stock market resulting in significant overall pressure on the industry.Institutions such as the International Monetary Fund predict that the global economic growth rate will achieve a moderate recovery in 2025 but with significant regional differences; In terms of trade pattern while the multilateral trading system faces challenges the role of regional trade agreements has become increasingly prominent against a backdrop of persistent uncertainties stemming from trade protectionism and geopolitical conflicts. Technological competition is driving the home appliance industry toward energy-efficient and environmentally-friendly transformation and elevating requirements for product technical standards; In terms of policy global monetary policy adjustments and fiscally balanced approaches may impact both the costs and market demand for home appliance exports. Other factors including exchange rate volatility and raw material price uncertainties will further influence home appliance export.Overall the Chinese home appliance sector must navigate multiple challenges in 2025 and companies need to demonstrate operational agility in adapting to environmental shifts while enhancing product competitiveness to seize opportunities. 43Annual Report 2024 (II) Industrial environment analysis 1. Refrigerator (Freezer) industry The refrigerator industry is constantly developing in terms of technological innovation green development intelligence personalization and health and green energy saving has become an important development direction.Domestic Market: In 2025 China will continue its trade-in policy though refrigerator demand is expected to remain stable. As such policy in 2024 already absorbed some pent-up demand the overall refrigerator market is projected to show weaker demand in 2025. Nevertheless the trade-in policy will still drive product mix upgrades energy efficiency improvements and accelerated growth in the built-in refrigerator industry. With deeper policy penetration into lower-tier markets county-level regions will unlock greater potential likely boosting sales in third-tier and fourth-tier cities.Export Market: Global demand will continue to expand with developed markets showing recovery-driven growth while emerging markets particularly in South America will experience rapid expansion. This growing adoption in emerging economies serves as a key driver for sustained export growth. The implementation of updated EU standards along with impending upgrades of national standards in parts of South America and the Middle East will accelerate global demand for higher-tier products. The new standards and regulations will promote rapid upgrading of industrial structure accelerate the technological R&D capabilities of energy saving frequency conversion and large volume of products focus on scientific management of carbon footprint promote the upgrading of green home appliance industry and increase the R&D and application of low-carbon production recyclable and degradable environmental protection materials. This will not only bring new industrial opportunities but also pose challenges to enterprises. 2. Air conditioning industry In the stock market competition the air-conditioning industry will develop in the green low-carbon intelligent healthy and personalized direction. Enterprises need to make continuous efforts in technological innovation product function optimization and brand building to adapt to market changes and policy requirements.Domestically the domestic air-conditioning industry is now in the era of stock competition and the brand concentration has been further improved. Leading enterprises continue to consolidate their market share by virtue of their technological advantages and scale effect. At the same time some emerging brands focusing on intelligent and environmental protection technologies enter the market by virtue of their intelligence high cost performance and technological advantages and promote the diversification of the competitive landscape.In terms of exports the global attention to energy conservation and environmental protection has prompted the air-conditioning industry to accelerate the transformation to green and low carbon and the green and low carbon policy has become increasingly strict. At the same time consumers' demand for air conditioning functions becomes increasingly diversified. In addition to basic functions they pay more attention to functions such as air purification and intelligent control. Therefore enterprises need to make constant innovation and optimize product functions to adapt to changes in market demand. Judging from the competitive situation the competition in the industry is becoming more and more fierce including not only the competition between traditional air-conditioning 44Annual Report 2024 enterprises but also the cross-sector competition from other home appliance technology enterprises. Enterprises need to constantly improve product quality reduce costs and strengthen brand building and after-sales service to enhance their own market competitiveness. In addition with the promotion of the "Belt and Road Initiative" and the development of cross-border e-commerce China's air-conditioning enterprises will further expand the international market and increase their global market share. 3. Washing machine industry The Chinese economy has entered an era of low effective demand with the washing machine market experiencing overall growth stagnation. The 2024 national subsidy policy stimulated partial demand ahead of schedule resulting in limited short-term sales growth in 2025. Judging from the retained number by 100 households incremental demand from rigid-need buyers remains insufficient shifting main market demand to "Replacement" purchases. In 2025 the extended trade-in policy will meet the trade-in demand through structural upgrading and product innovation. In the future enterprises need to leverage this policy while aligning with technological trends including AI integration flush-embedded designs large-capacity models high energy efficiency and growing demand for washer-dryer combos to deliver scenario-based solutions for users.In terms of export the global washing machine market rebounds moderately but with limited growth rate.With the implementation of upgraded EU standards green and energy-efficient technologies have begun to dominate global washing machine product upgrades. In developed markets represented by Europe and North America against the backdrop of elevated technological convergence improved product intelligence and enhanced scenario integration manufacturers are progressively launching premium high-efficiency drum models featuring energy-saving intelligence and high-performance to elevate product profitability by technology. Meanwhile emerging markets mainly in Southeast Asia Latin America and Africa remain highly price-sensitive still mainly with rigid demand in low-end and middle-end products resulting in a volume-driven yet intensely competitive market landscape. 4. Major kitchen appliance and small home appliance industry Under the dual drivers of macroeconomic recovery and consumption upgrading the major kitchen appliance and small home appliance industry is demonstrating diversified development trends. The trade-in policy has stimulated consumption while strengthened energy efficiency standards and environmental regulations are accelerating the industry's green and intelligent transformation.In the major kitchen appliance market traditional essential products like range hoods and cooktops maintain stable demand though integrated cookers have seen retail sales decline due to the sluggish real estate market. As an emerging category dishwashers have become a market highlight with their premiumization driven by technological upgrades. The deep integration of AI has enhanced health management and smart adjustment functions. Amid environmental and energy-saving trends the application of inverter technology and recyclable materials has reduced energy consumption. In the future the major kitchen appliance market will increasingly prioritize product personalization differentiation and intelligence requiring continuous innovation from enterprises to meet consumers' demand for high-quality life. Environmental sustainability and energy efficiency 45Annual Report 2024 will become critical industry direction with brand concentration expected to intensify further as leading enterprises leverage their technological and brand advantages to capture greater market share.The small home appliance market continues its "slow-growth" trend with traditional categories experiencing decelerated expansion while emerging segments particularly tea bar machines and cleaning appliances are becoming primary growth drivers through their health-oriented positioning and intelligent technology. The IoT technology promotes the interconnection of products and innovative products such as intelligent tea bar machines and intelligent electric fans are constantly emerging.Emerging e-commerce platforms such as Douyin (Tik Tok) have become an important engine for the growth of small home appliance market driving brands to grow against the trend. However the rising cost of raw materials and the competitive pressure of homogenization still exist and the concentration of head brands has further improved. In the future the small home appliance market will develop in the direction of personalized customization and scene sales to meet the diverse needs of consumers. Intelligent healthy and environmental protection will become the core direction of product innovation and enterprises need to strengthen technological R&D and brand building to cope with market competition. 5. Biomedical industry Biomedical industry is closely related to human life and health. With the improvement of economic level and the enhancement of medical care awareness coupled with the continuous acceleration of population aging the demand for medical health among residents around the world is increasing and the medical expenditure is on the rise. China is also prioritizing public health as a strategic development imperative. Furthermore bolstered by national policies such as "vigorously developing new quality productive forces" "domestic equipment substitution" and "Healthy China Initiative" the life science instruments sector is positioned for sustained long-term growth.(III) Business Plan for 2025 1. Business policy The Company will drive industrial development through innovation strengthen industrial synergy through resource integration to solidify market foundations accelerate corporate growth through internal-external convergence develop new quality productive forces and advance digital and intelligent transformation and achieve high-quality development the Company. In 2025 the Company aims to realize dual growth in both scale and profitability maintaining a virtuous development trend of profitable expansion. (1) Innovation drives industrial development Enhance industrial competitiveness around four aspects: technological innovation product innovation manufacturing innovation and management innovation. In terms of technological innovation increase technical input empower industries and focus on technological research that brings added value to product competitiveness.In terms of product innovation adhere to productism with leading products create super single products help comprehensively improve "appearance quality price and experience" and enhance brand value; In terms of manufacturing innovation accelerate the promotion of intelligent manufacturing; In terms of management 46Annual Report 2024 (2) Resource integration helps industrial matrix Build an industrial matrix dominated by white major home appliances and enhance the ability of four industrial matrices around kitchen solutions living solutions air solutions and biomedical solutions. Help the establishment and development of industrial matrix through resource integration. (3) Industrial synergy consolidates market foundation Make use of the solid customer base and strong market awareness of the existing international market strengthen industrial synergy further consolidate the market base and broaden the industrial matrix. (4) Internal and external integration accelerates the company development Conduct integration from outside to inside form scale and benefits in the international markets invest resources to participate in domestic market competition improve the overall technology products manufacturing and other capabilities of the industry and then release it overseas. After the industrial capacity is further improved upgrade domestic brand matrix and international brand matrix achieve internal and external integration and accelerate the Company's development. 2. Market strategy (1) Refrigerators (freezers) In domestic market amid the normalization of national subsidies the Company will seize four key opportunities: product enhancement category synergy retail transformation and national subsidy penetration; Uphold the dual principles of "customer-center" to meet B2B product requirements and "user-center" to fulfill B2C replacement demand while adhering to three guiding principles: profitability orientation problem-solving orientation and target orientation; Through four implementation pathways integrate production research and sales to consistently develop hero products and achieve traffic monetization feature reinforcement operational efficiency and P&L optimization; Refine operational channels by consolidating foundational channel capabilities aggressively expanding e-commerce channels enhancing KT channel profitability and optimizing lower-tier channel efficiency through integration; Upgrade market regions by categories establish brand leadership in base markets pursue scale maximization with improved profitability in revitalized markets achieve substantial profitability expansion at maintained scale in improved markets and accelerate infrastructure development in opportunity markets; Focus on brand building elevate brand with products through online and offline integration promote brand with core customers in core areas and vigorously promote brand building.In overseas markets the Company will closely grasp the upgrading trend of global consumer demand in product layout and mainly promote the trend products such as "air cooling frequency conversion multi-door energy saving" and build a tiered product matrix of "premium high-end value-driven mid-range and efficient entry-level offerings" to precisely meet diversified market demands; Build a user-centered all-round marketing system improve the demand fit of large customers and the efficiency of customer cooperation and further enhance customer loyalty; In terms of business development deepen cooperation to tap the potential of the stock market consolidate the existing business foundation focus on the layout of high-growth emerging markets actively explore 47Annual Report 2024 incremental opportunities and achieve sustained growth in market share; Deeply cultivate the brand base market and make efforts from multiple dimensions such as in-depth channel expansion product matrix improvement marketing promotion capability improvement and talent echelon construction to comprehensively enhance brand competitiveness accelerate the scale development of overseas independent brand business and create a brand image with international influence. (2) Air conditioners In the domestic market the Company will strengthen the user experience and differentiated design based on AI technology continue to create two product business cards namely "DustFree" and "LivingDining Pro" launch "Strategic hero SKUs" and continue to promote the "Panda Lazy" hero products to create premium mid-range brand offerings. It will increase market investment improve brand awareness and reputation through event marketing new media seeding and other ways. It will adhere to regional differentiated management and continue to promote the implementation of special regional strategies such as Sichuan-Chongqing Base Area Construction Plan and Second Base Area Market Construction Plan. It will strengthen the improvement of service capability around users quickly and directly and improve user satisfaction.In overseas markets the Company will continue to practice the concept of "profitable scale growth and profitable cash flow growth" adhere to brand priority increase market development in base areas and vigorously develop regional brand agents; Preserve the quantity seek increment focus on superior channels expand new markets and carry out key customer penetration; Remain attuned to market trends by elevating product premiumization driving innovation and advancing inverter technology adoption; Adhere to business-oriented and customer-centered principle and constantly improve product quality customer service ability and customer satisfaction. (3) Washing machines In the domestic market the Company will insist on the product-oriented principle promote quality and high-end and continue to build good products for the market and users. For drum washing machine products the Company will upgrade the mid-range products and break through the high-end products; Expand the flat-embedded appearance of "As Hand Washing" series products and enhance the competitiveness of mid-range products; Extend the "Hercules" pulsator products lay out Hercules 2.0 upwards continuously improve energy efficiency and create a competitive advantage; Strengthen e-commerce channel capacity building and product layout achieve scale breakthrough and at the same time focus on offline channels and ensure the steady growth of industrial scale based on base market construction.In the overseas market the Company will insist on the of internal and external integration introduce new products and technologies in the domestic market optimize the platform and expand products around color screen drum products variable frequency pulsator products large pulsator products and washing and drying machines lay out key areas focus on key customers and expand KA customers and build a leading brand of drum washing machine worldwide with "color screen + flat embedded" dual drive by increasing appearance supply and upgrading energy efficiency to meet differentiated needs. 48Annual Report 2024 (4) Major kitchen appliances and small home appliances The industry adheres to the business strategy of "transformation focus and efficiency improvement". At the retail end the Company will optimize and upgrade around "people goods market and promotion" and expand the market through online and offline integration; In terms of industrial synergy it will deepen internal system cooperation strengthen domestic business synergy and seize the national subsidies; At the product level with the guidance of "expanding cooking solutions consolidating water applications and developing environmental products" it will create high-quality hit products; and improve service efficiency and adhere to the concept of "market-oriented customer-centered". (5) Biomedical products The Company will focus on the field of life sciences adhere to the business philosophy of "technology-based product-based market-oriented and customer-centered" and based on "focusing on the sample ecology vertically deepening the whole chain of automation; Based on the life science and horizontally expanding the field of laboratory general equipment" continue to promote the construction of market channels expand the product matrix enhance operational capabilities and strive to improve operational efficiency.Focusing on the market the Company is customer-centered market-oriented growth-oriented and internal and external synergy to promote the organization to achieve leap-forward development with equal emphasis on scale and quality. In terms of vertical and horizontal expansion the Company will implement "focusing on the sample ecology vertically deepening the whole chain of automation; Based on the life science and horizontally expanding the field of laboratory general equipment" deeply cultivate low-temperature storage products expand the lineup of new products realize product synergy gradually realize various application scenario solutions and comprehensively enhance product strength. In terms of operational efficiency the Company will attach importance to the improvement of operational quality and efficiency and strengthen the driving force of the system. At the same time the Company will establish an open and innovative organizational mechanism attract excellent talents and partners build an ecosystem together and create a new benchmark in the field of life sciences.The above business plans and business objectives do not represent the listed company's profit forecast for 2025.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 operating environment of enterprises will be even worse. In 2025 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 industry competition: The risk of domestic industry demand decline The domestic major home appliance market is currently in a stage of stock competition characterized by severe product homogenization and a lack of new consumption stimuli. While the appliance trade-in policy partially unleashed consumer demand in 2024 its industry-boosting effect for 2025 remains uncertain potentially leading to 49Annual Report 2024 slowed consumption growth that may trigger corporate performance fluctuations. The Company will actively pay attention to the progress of the national home appliance consumption stimulus policy while continuously improving product quality and cost competitiveness well ensure product planning and market response in advance to gain more market share. 2. Risk of exchange rate fluctuation Changes in the international situation may lead to large fluctuations in the exchange rate. The Company will carefully operate the exchange rate from the perspective of steady operation and risk prevention and control and will pay close attention to the exchange rate changes in the future to reduce the adverse effects caused by exchange rate fluctuations. 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 of the company 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 will pay close attention to the impact of international trade frictions and geopolitical uncertainties on its global business make relevant plans in advance actively take various risk response measures and respond quickly to mitigate the impact.In view of the industry situation in 2024 and the development opportunities in 2025 combined with the current market risks the Company will lay out its products technologies and markets in advance around the business policy of "innovation-driven resource integration industrial synergy and internal and external integration" in 2025 in order to promote the Company's high-end and intelligent transformation enrich its product lines enhance its operating ability and profitability and strive to build a comprehensive home appliance enterprise to provide consumers with better products and services and create greater value for shareholders. 50Annual Report 2024 XII. In the report period reception of research communication and interview □ Applicable √Not applicable Recepti Main contents of the Time Location Way on Type discussion and the Basic situation index of investigation object information provided #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Operation condition of the January 22024 administrative Institute EfndZhongtai Securities gId=gssz0000521&stockCode=000521&announcementId=121 research Company center of the 8790341&announcementTime=2024-01-02%2017:31 Company #3 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Operation condition of the January 52024 administrative Fuguo Fund Guangfa Fund GuoshengSecudrities gId=gssz0000521&stockCode=000521&announcementId=121 research al Company center of the 8816536&announcementTime=2024-01-05%2017:21 Company #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Operation condition of the February 212024 administrative Institute Guangfa Fund gId=gssz0000521&stockCode=000521&announcementId=121 research Company center of the 9147646&announcementTime=2024-02-21%2019:55 Company #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Huaan Fund Zhong Ou AMC Southweast Operation condition of the February 232024 administrative gId=gssz0000521&stockCode=000521&announcementId=121 research al Securities Company center of the 9171786&announcementTime=2024-02-23%2018:03 Company #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Operation condition of the February 272024 administrative Institute CUAM Penghua Fund Guosheng Securities gId=gssz0000521&stockCode=000521&announcementId=121 research Company center of the 9198453&announcementTime=2024-02-27%2018:57 Company Great wall fund Southern Fund CGFGFund Management Co. Ltd.AXAspdb investment ManaGERS Co. Ltd.HongdeFundXinhua Fund #3 reference Huaan Fund FuguoFundGuangfa Fund room of the HuataqiPinebridge Investment Zhong Ou http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Operation condition of the April 22024 administrative AMABC-CA Fund ManagementCaitong Fund gId=gssz0000521&stockCode=000521&announcementId=121 research al Company center of the Xinhua Fund Dacheng Fund Changxin Fund 9504929&announcementTime=2024-04-02%2018:49 Company PenghuaFundSouthweastSecuritiesGuosheng Securities Shenwan Securities China Merchants securitiesNortheast Securities Zhongtai Securities Changjiang Securities Industrial Securities #2 reference http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field HuaanFundCUAMSouthweastSecuritiesGuoshen Operation condition of the April 82024 room of the Institute gId=gssz0000521&stockCode=000521&announcementId=121 research g Securities Company administrative 9536083&announcementTime=2024-04-08%2017:35 51Annual Report 2024 center of the Company #2 reference room of the Guangfa Fund http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Operation condition of the April 92024 administrative FuguoFundSouthweastSecuritiesGuosheng gId=gssz0000521&stockCode=000521&announcementId=121 research al Company center of the Securities 9551684&announcementTime=2024-04-09%2018:09 Company #2 reference Holding a presentation on room of the Investors who participated in the 2023 annual perfo the 2023 annual business http://www.cninfo.com.cn/new/disclosure/detailplate=szse&orApril 152024 administrative Other Other rmance briefing through Panorama.com’s “Investor results and responding the gId=gssz0000521&stockCode=000521&announcementId=121center of the Relations Interactive Platform” (https://ir.p5w.net) questions that investors 9619929&announcementTime=2024-04-15%2018:23 Company concerned #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individual Investor Song YuhuanRuiyang Operation condition of the April 232024 administrative Institute gId=gssz0000521&stockCode=000521&announcementId=121 research Investment Huaan Fund China Futures Company center of the 9766198&announcementTime=2024-04-23%2018:09 Company #1 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Operation condition of the April 242024 administrative Great Wall FundSouthweast Securities gId=gssz0000521&stockCode=000521&announcementId=121 research al Company center of the 9791260&announcementTime=2024-04-24%2017:55 Company #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Operation condition of the April 282024 administrative Institute Jiashi Fund Gluosheng Securities gId=gssz0000521&stockCode=000521&announcementId=121 research Company center of the 9893109&announcementTime=2024-04-28%2017:29 Company #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Aegon- Industrial Fund Zhongtai Securities Operation condition of the April 302024 administrative gId=gssz0000521&stockCode=000521&announcementId=121 research al Tianfeng Securities Company center of the 9956501&announcementTime=2024-04-30%2017:27 Company Meeting room http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or of Mianyang Field Huaan Fund Everbright PGIMabc-ca Fund Operation condition of the May 142024 Institute gId=gssz0000521&stockCode=000521&announcementId=122 Meiling research Management Huabao Fund Shenwan Securities Company 0052570&announcementTime=2024-05-14%2018:56 Company #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Operation condition of the May 222024 administrative Danyi Investment CITIC Securities gId=gssz0000521&stockCode=000521&announcementId=122 research al Company center of the 0133595&announcementTime=2024-05-22%2019:40 Company #2 #3 http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Boshi Fund CICC Asset management CICC Fund Operation condition of the May 232024 reference room Institute gId=gssz0000521&stockCode=000521&announcementId=122 research Kaiyuan Securities Company of the 0144169&announcementTime=2024-05-23%2017:32 52Annual Report 2024 administrative center of the Company #2 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Operation condition of the May 242024 administrative CUAMFangzheng appliance gId=gssz0000521&stockCode=000521&announcementId=122 research al Company center of the 0159214&announcementTime=2024-05-24%2018:56 Company #3 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Cunhou Fund Huabao Dund Dajia Asset Guotai Operation condition of the May 302024 administrative Institute gId=gssz0000521&stockCode=000521&announcementId=122 research Junan Company center of the 0212294&announcementTime=2024-05-30%2018:34 Company #2 reference Online room of the platform administrative for online http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or center of the Individu Operation condition of the June 52024 communic China Merchants Fund GuoshengSecudrities gId=gssz0000521&stockCode=000521&announcementId=122 Company #3 al Company ation 、 0272693&announcementTime=2024-06-05%2019:14 reference room Field ofZhongshanCh research anghong Online platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or #2 reference Operation condition of the July 42024 for online Institute Huachuang Securities gId=gssz0000521&stockCode=000521&announcementId=122 room of Company communic 0535014&announcementTime=2024-07-04%2018:28 ation Guotai Fund ChangxinFundHuatai –PineBridgeInvestmentabrdn(P)UK 、 PolymerCapitalManagement(P)HKLMRPartnersL #4 reference Online LP(P)UKStoneyLakeAsset(P)HKTigerPacificCa room of of the platform pital(P)USABeijingLongrisingAssetMgmtCoLtd( http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Individu Operation condition of the July 162024 administrative for online P)ChinaSumitomoMitsuiDSAssetManagement(P) gId=gssz0000521&stockCode=000521&announcementId=122 al Company center of the communic JapanSymmetryInvestmentsHongKongLimited(P) 0653950&announcementTime=2024-07-16%2018:52 Company ation HKPoint72AssetManagementLP(P)United StatesSumitomoMitsuiTrustBankLimited(P)JPPol ymerCapitalManagement(P)HKUSB Zhongtai Securities #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Efnd BOCOM Schroders Guosheng Securities Operation condition of the July 172024 administrative for online Institute gId=gssz0000521&stockCode=000521&announcementId=122 Southweast Securities Company center of the communic 0664189&announcementTime=2024-07-17%2019:22 Company ation #2 reference Online Individu Operation condition of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or July 252024 China Merchants Fund GuoshengSeccurities room of the platform al Company gId=gssz0000521&stockCode=000521&announcementId=122 53Annual Report 2024 administrative for online 0731803&announcementTime=2024-07-25%2019:24 center of the communic Company ation BiyunCapital Huizheng Investment Caitong Assets ManagementManulife Fund Heyuan Investment Changsheng Fund Xunyuan Asset #3 reference Online HuaanHexinbosc Asset CUAMBSCOM room of the platform CAIHAY AssetLubomai Xiangsheng Asset http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Operation condition of the August 212024 administrative for online Institute Dacheng Fund FangzhengFubang Fund CITIC gId=gssz0000521&stockCode=000521&announcementId=122 Company center of the communic Asset ManagementXinda Aoya Jinying Fund 0938419&announcementTime=2024-08-21%2018:48 Company ation Huaxia Fund Cunhou Fund Runhui Investment Guosheng Securities SouthweastSecuritiesShenwan Securities Guotai Securities #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Individu Fuguo Fund Wanjia Fund AnlianFund Southweat Operation condition of the August 232024 administrative for online gId=gssz0000521&stockCode=000521&announcementId=122 al Appliances Minsheng Securities Company center of the communic 0961940&announcementTime=2024-08-23%2017:52 Company ation #1#2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Great Wall FundSouthweastSecuritiesGuangfa Operation condition of the September 52024 administrative for online Institute gId=gssz0000521&stockCode=000521&announcementId=122 Securities Company center of the communic 1147466&announcementTime=2024-09-05%2018:06 Company ation #1#2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Individu Caitong Fund China Merchants Fund CICC Operation condition of the September 62024 administrative for online gId=gssz0000521&stockCode=000521&announcementId=122 al Securities China Merchants securities Company center of the communic 1160098&announcementTime=2024-09-06%2018:02 Company ation #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Operation condition of the September 92024 administrative for online Institute Boshi Fund Shenwan Securities gId=gssz0000521&stockCode=000521&announcementId=122 Company center of the communic 1176844&announcementTime=2024-09-09%2018:18 Company ation #2 reference Online HSBC Jinxin Zhonghang Trust Cunhe Asset room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Individu Management Anhe Capital PICC Huatai Asset Operation condition of the September 192024 administrative for online gId=gssz0000521&stockCode=000521&announcementId=122 al Kaiyuan Securities Huafu Securities CITIC Company center of the communic 1245006&announcementTime=2024-09-19%2018:02 Securities Company ation #1 reference Online Zhonghan Fund Dongwu FundMinsheng ROYAL room of the platform FundTaiping Life Hanchuan Investment http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Operation condition of the September 252024 administrative for online Institute Everbright WealthCIB Wealth Management gId=gssz0000521&stockCode=000521&announcementId=122 Company center of the communic Xingshi Investment CICC Fund UBS SDIC 1291199&announcementTime=2024-09-25%2018:04 Company ation Hangzhou Bank Fangzheng Securities CICC 54Annual Report 2024 Securities China Merchants Securities Tianfeng Securities Huachuang Securities CITIC China Securities #2 reference Penghua Fund CITIC Prudenial Fund Dacheng room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Individu Fund maxwealth Fund Changjiang Securities Operation condition of the September 262024 administrative gId=gssz0000521&stockCode=000521&announcementId=122 research al Shengyu Investment Hongshang Investment Company center of the 1306436&announcementTime=2024-09-26%2018:30 CITIC Securities Company Anlian Fund Huaan Asset Everbright PGIM ABC-CA Fund Great wall Fund Jiashi Fund #1 reference Online Manulife Fund XiangcaiFunD PengYANG Fund room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Shenwan Fund CUAM Changsheng Fund Operation condition of the October 232024 administrative for online Institute gId=gssz0000521&stockCode=000521&announcementId=122 Minsheng ROYAL Fund Changjiang Life Company center of the communic 1490595&announcementTime=2024-10-23%2020:06 Zheshang Asset Management PICC Fund Huaan Company ation Fund BOCOM Schroders Changxin Fund Yinhe Fund Southest Fund ShenwanSecurieies ICBC Fund Fuguo Fund CUAM Tianhong Fund Ping An Fund Huabao Fund GuangfaFundChina Fund CICC Fund Tianchong Assets Guolianan Fund Huamei International Investment #2 reference Online GroupBOSC Asset Taikang Asset Westard Lide room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Individu Fund Everbright PGIM Zheshang Asset Operation condition of the November 52024 administrative for online gId=gssz0000521&stockCode=000521&announcementId=122 al Management ABC-CA Fund Guangzhou Company center of the communic 1637937&announcementTime=2024-11-05%2019:38 Bank China Merchants Asset Management Company ation Donghai Self support Huatai –PineBridge Investment Suxin Fund Ping An Life Xinyuan Fund Tuling Asset Yixing Investment Huaan Securities #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Operation condition of the November 62024 administrative for online Institute Changxin Fund Guotai Junan gId=gssz0000521&stockCode=000521&announcementId=122 Company center of the communic 1639903&announcementTime=2024-11-06%2018:20 Company ation #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Individu BOC Investment Operation condition of the November 152024 administrative for online gId=gssz0000521&stockCode=000521&announcementId=122 al Management OrientAssetMinsheng Securities Company center of the communic 1742046&announcementTime=2024-11-15%2018:20 Company ation #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Operation condition of the November 182024 administrative for online Institute Guotai Fund Xingzheng Securities gId=gssz0000521&stockCode=000521&announcementId=122 Company center of the communic 1766756&announcementTime=2024-11-18%2017:32 Company ation November 202024 #2 reference Field Individu Guangfa Fund Operation condition of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or 55Annual Report 2024 room of the research al HuaanFundSouthweastSecuritiesZhongtai Company gId=gssz0000521&stockCode=000521&announcementId=122 administrative Securities 1789797&announcementTime=2024-11-20%2017:28 center of the Company #1 reference room of the http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Field Operation condition of the December 172024 administrative Institute Boshi Fund Guotai Junan gId=gssz0000521&stockCode=000521&announcementId=122 research Company center of the 2048467&announcementTime=2024-12-17%2018:32 Company #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Operation condition of the December 262024 administrative for online Institute BOCOM Schroders Southwest Securaites gId=gssz0000521&stockCode=000521&announcementId=122 Company center of the communic 2155902&announcementTime=2024-12-26%2019:20 Company ation #2 reference Online room of the platform http://www.cninfo.com.cn/new/disclosure/detailplate=szse&or Individu Operation condition of the December 272024 administrative for online CoreView capital China Securities gId=gssz0000521&stockCode=000521&announcementId=122 al Company center of the communic 2167098&announcementTime=2024-12-27%2019:08 Company ation XIII. Formulation and implementation of market value management system and valuation boost plan Whether the Company has established a market value management system □Yes□No Whether the Company has disclosed plans for valuation boost.□Yes□No XIV. The implementation of the action plan of "Double improvement of quality and return".Whether the Company has disclosed the action plan of "Double improvement of quality and return".□ Yes √No 56Annual Report 2024 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 issued the Articles of Association The Authorized Management System the Rules of Procedure of the Board of Supervisors and other systems and formulated the Implementation Rules of the ESG Management Committee 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 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 Board Meeting are revoke and open in line with the regulation of Company Law and Article of Association strictly voting and information disclosure procedures appliance with relevant rules. All directors of the 57Annual Report 2024 company have carried out the work in accordance with the Rules of Procedure for the Board of Directors and the Independent Director System conscientiously attended the board meetings and the shareholders' meetings exercised their powers in accordance with the law performed their duties diligently and actively participated in relevant training organized by the Shenzhen Stock Exchange and Anhui Securities Regulatory Bureau the Listed Companies Association of Anhui and have been familiar with relevant laws and regulations. Independent directors strictly abide by the Guiding Opinions on Establishing an Independent Director System in Listed Companies the Independent Director System and other regulations in line with a serious diligent and loyal working attitude based on an independent and prudent stand actively participated in the company's decision-making carefully considered various proposals issued prior approval and independent opinions on related transactions and major issues fully exerted the supervision and check and balance role of independent directors and effectively safeguarded the interests of the company and all shareholders especially the small and medium shareholders. The four special committees of strategy remuneration and assessment audit and nomination under the board of directors of the company have been responsible for the discussion decision-making supervision and evaluation of major work issues of the company according to the corresponding working rules of each departmental committee and quality played an important role in the scientific decision-making and the improvement of decision-making efficiency and quality. 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. 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 58Annual Report 2024 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 and realized employees' personal development goals while achieving organizational goals; In terms of protecting consumer rights we will improve the function construction of official channel service platforms such as the 4008 service hotline brand official website WeChat public account and Zhihuijia APP and handle user needs and problems in a timely manner.We will launch services such as the 180-day freshness preservation of Meiling M fresh refrigerators and unconditional returns if you are not satisfied to improve consumer satisfaction. In terms of protecting supplier rights we will establish a complete procurement management system timely optimize and revise system documents unify information system tools strictly control every link of procurement business cultivate core and strategic suppliers establish a high-end supply chain cultivation plan and form a collaborative cooperative and win-win situation with suppliers. In terms of protecting the interests of stakeholders we will promote and facilitate two-way communication and information sharing based on the principle of equality and mutual benefit and strive to establish a win-win cooperation model of common development and growth with stakeholders 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. 8. Investor relations management 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 Guidelines on Investor Relations Management of Listed Companies Investor Relations Management System and Reception and Promotion Work System. During the reporting period the Company adopted various forms of communication to strengthen communication with investors and convey the progress of various businesses of the Company. By strengthening the construction of the Company's website investors can know the Company's operation in a timely true and comprehensive manner. The Company communicated with investors through the platform of investor relations in Shenzhen Stock Exchange (https://irm.cninfo.com.cn/) fully listened to investors' opinions and suggestions and earnestly safeguarded the interests of small and medium-sized investors; The Company earnestly answered and 59Annual Report 2024 replied to investors' visits and calls and received and replied to faxes and e-mails and treated media reports cautiously; The Company seriously received the visits and consultations of investors and research institutions upheld the principle of fairness impartiality and openness in the reception promptly disclosed the communication contents with investors' research and ensured that all investors were entitled to the right to be informed and other legitimate rights and interests equally. At the same time the Company also maintained smooth communication with investors through multiple channels modes and platforms such as conference calls and investment strategy meetings so as to enhance investors' understanding of the Company and improve the transparency of the Company's operation.In order to help investors further understand the Company's operating performance and financial situation the Company organized the 2023 online performance briefing meeting and achieved good results which helped investors to understand the listed companies more comprehensively enhanced the transparency of the Company earnestly safeguarded the legitimate rights and interests of investors and continuously promoted and improved the management level of investor relations in the Company. The Company insisted on safeguarding equity interests and the principle of rewarding shareholders aiming at providing investors with long-term steady and rising dividend returns. During the reporting period the Company formulated the Shareholders' Return Plan for the Next Three Years (2024 -2026) to share the development achievements with its shareholders.(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 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 60Annual Report 2024 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 2023 AGM 44.8860% April 252024 April 262024www.cninfo.com.cn( Announcement No.:2024-024） First Extraord Extraordinary Juchao Website inary General 42.7763% June 182024 June 192024General www.cninfo.com.cn( Announcement No.:2024-036） Meeting of Meeting 2024 Second Extraord Extraordinary Juchao Website inary General 46.8113% October 292024 October 302024General www.cninfo.com.cn( Announcement No.:2024-060） Meeting of Meeting 2024 Third Extraord Extraordinary Juchao Website inary General 38.2484% December 272024 December 282024General www.cninfo.com.cn( Announcement No.:2024-076） Meeting of Meeting 2024 (ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore □ Applicable √ Not applicable 61长虹美菱股份有限公司2024年年度报告全文 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 at increase or Name Title ng Sex Age increased in this decreased in this changes term term period-begi period-end decrease of status period (share) period (share) (share) n (share) (share) shares Wu In Not Chairman Male 52 April 282019 June 182027 570500 0 0 0 570500 Dinggang office applicable In Not Zhao Qilin Director Male 49 December 232021 June 182027 0 0 0 0 0 office applicable In Not Yi Suqin Director Female 46 June 182024 June 182027 0 0 0 0 0 office applicable In Not Cheng Ping Director Male 55 June 182024 June 182027 0 0 0 0 0 office applicable In Director May 212019 June 182027 Not office applicable Zhong Ming Office Male 52 236175 0 0 0 236175 Not President leavin December 112020 November 222024 注 applicable g In Not Fang Wei Director Male 55 June 182024 June 182027 0 0 0 0 0 office applicable Independen In Not Mou Wen Female 58 October 122020 October 122026 0 0 0 0 0 t director office applicable Hong Independen In Not Male 49 October 122020 October 122026 0 0 0 0 0 yuanjia t director office applicable Cheng Independen In Not Male 55 June 182024 June 182027 0 0 0 0 0 Wenlong t director office applicable Chairman In Not Qiu Jin of Male 50 June 182024 June 182027 0 0 0 0 0 office applicable Supervisory In Not Ma Yu Supervisor Male 42 June 182024 June 182027 0 0 0 0 0 office applicable Staff In Not Ji Ge Female 43 December 252017 June 282027 0 0 0 0 0 supervisor office applicable Tang Deputy In Not Male 54 March 292021 June 182027 800000 0 0 0 800000 Youdao president office applicable Office Not Director leavin July 32014 June 182024 Kou 注 2 applicable g Male 55 0 0 0 0 0 Huameng Not Vice In November 222017 June 182027 applicable president office 62长虹美菱股份有限公司2024年年度报告全文 Office Not Director leavin June 212018 June 182024注 Hu Zhaogui g 2 applicable Male 50 178050 0 0 0 178050 Not Vice In June 212018 June 182027 applicable president office Vice Not June 182024 June 182027 0 president In applicable Li Xia Female 44 414600 0 0 414600 Secretary of office Not May 222009 June 182027 the Board applicable In Not Pang Haitao CFO Male 49 October 252017 June 182027 0 0 0 0 0 office applicable Office Yong Not Director leavin Male 56 September 122017 June 182024 0 0 0 0 0 Fengshan 注 2 applicable g Office Independen Not Zhao Gang leavin Male 46 October 122020 June 182024 0 0 0 0 0 t director 注 2 applicable g Chairman Office Not Shao Min of leavin Male 42 September 122017 June 182024 0 0 0 0 0 注 applicable Supervisory g 2 Office Not He Xintan Supervisor leavin Male 44 September 122017 June 182024 0 0 0 0 0 注 2 applicable g Office Not Huang Hong Supervisor leavin Female 54 September 122017 June 182024 0 0 0 0 0 注 2 applicable g Office Sun Staff Not leavin Female 53 March 302021 June 182024 0 0 0 0 0 Hongying supervisor 注 2 applicable g Office Huang Vice Not leavin Male 55 September 122017 June 182024 356450 0 0 0 356450 Danian president 注 2 applicable g Total -- -- -- -- -- -- 2555775 0 0 0 2555775 -- Note 1: On June 18 2024 the 10th Board of Directors and the Board of Supervisors of the Company were re-elected. After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Wu Dinggang Mr. Zhao Qilin Ms. Yi Suqin Mr. Cheng Ping Mr. Zhong Ming and Mr. Fang Wei as non-independent directors of the 11th Board of Directors of the Company; elect Ms. Mu Wen Mr. Hong Yuanjia and Mr. Cheng Wenlong as independent directors of the 11th Board of Directors of the Company; and elect Mr. Qiu Jin and Mr. Ma Yu as supervisors of the 11th Board of Supervisors of the Company.On June 17 2024 on the second meeting of the 9th Employee Congress of the Company it is agreed to democratically elect Ms. Ji Ge as the employee supervisor of the 11th Board of Supervisors of the Company. 63长虹美菱股份有限公司2024年年度报告全文 On June 18 2024 the Company held the first meeting of the 11th Board of Directors to hold a general election for senior management and agreed to appoint Mr. Zhong Ming as the president of the Company Mr. Tang Youdao Mr. Kou Huameng and Mr. Hu Zhaogui as vice presidents of the Company Ms. Li Xia as the vice president and secretary of the Board of Directors of the Company and Mr. Pang Haitao as the financial controller of the Company.Note 2: On November 22 2024 Mr. Zhong Ming the former president of the Company resigned as the president of the Company due to personal work changes. On the same day the Company held the sixth meeting of the 11th Board of Directors and authorized Mr. Tang Youdao the vice president of the Company to act as the president of the Company from the date of review and approval by the Board of Directors to the date of appointment of a new president by the Board of Directors. 64Annual Report 2024 1. During the reporting period whether there was any departure of directors and supervisors and dismissal of Senior Officers √Yes □No (1)On June 18 2024 the 10th Board of Directors of the Company was re-elected and Mr.YongFengshan the director left after his term expired. (2)On June 18 2024 the 10th Board of Directors of the Company was re-elected and Mr. Kou Huameng the director left after his term expired however he was appointed as the vice president by the 11th Board of Directors. （3）On June 18 2024 the 10th Board of Directors of the Company was re-elected and Mr. Hu Zhaogui the director left after his term expired however he was appointed as the vice president by the 11th Board of Directors. （4）On June 18 2024 the 10th Board of Directors of the Company was re-elected and Mr. Zhao Gang the incdependent director left after his term expired. （5）On June 18 2024 the 10th Board of supervisors of the Company was re-electedand Mr. Shao Min Chairman of the Board of Supervisors left after his term expired. （6）On June 18 2024 the 10th Board of supervisors of the Company was re-electedand Mr. He Xintan the supervisor of the Board of Supervisors left after his term expired. （7）On June 18 2024 the 10th Board of supervisors of the Company was re-electedand Ms. Huang Hong the supervisor of the Board of Supervisors left after his term expired. （8）On June 18 2024 the 10th Board of supervisors of the Company was re-electedand Ms. Sun Hongying the supervisor of the Board of Supervisors left after his term expired. （9）On June 18 2024The Company held the first meeting of the 11th Board of Directors to change the senior management. Mr. Huang Danian no longer served as the vice president. （10）On November 222024，Mr. Zhong Ming the former president of the Company resigned due to personal work changes. After his resignation he would continue to serve in the Company as a director a member of the Strategy Committee under the Board of Directors a member of the Nomination Committee and a member of the ESG Management Committee. 2. Changes of directors supervisors and senior executives √Applicable □Not applicable Name Title Types Date Reason After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Wu Dinggang as a non-independent director of the 11th Board of Director Elected June 182024 Directors of the Company with a term of office of three years which will take effect from the date of Wu Dinggang review and approval at the General Meeting of Shareholders According to the resolution of the first meeting of Chairman Elected June 182024 the 11th Board of Directors of the Company it was agreed to elect Mr. Wu Dinggang as the chairman 65Annual Report 2024 of the 11th Board of Directors of the Company with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Zhao Qilin as a non-independent director of the 11th Board of Zhao Qilin Director Elected June 182024 Directors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Ms. Yi Suqin as a non-independent director of the 11th Board of Ye Suqin Director Elected June 182024 Directors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Cheng Ping as a non-independent director of the 11th Board of Cheng Ping Director Elected June 182024 Directors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Zhong Ming as a non-independent director of the 11th Board of Director Elected June 182024 Directors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders According to the resolution of the first meeting of Zhong Ming the 11th Board of Directors of the Company it was agreed to elect Mr. Zhong Ming as the Vice President Appoint chairman of the 11th Board of Directors of the June 182024 Company with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.Due to personal reasons he appoint to resign President Dimission November 222024 from his position as executive vice president of the company After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Fang Wei as a Fang Wei Director Elected June 182024 non-independent director of the 11th Board of Directors of the Company with a term of office of three years which will take effect from the date of 66Annual Report 2024 review and approval at the General Meeting of Shareholders After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Ms. Mou Wen Independent Elected asanindependent director of the 11th Board of Mou Wen director June 182024 Directors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Hong Independent Hong Yuanjia Elected Yuanjiaasanindependent director of the 11th director June 182024 Board of Directors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Cheng Cheng Independent Elected Wenlongasanindependent director of the 11th June 182024 Wenlong director Board of Directors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr.Qiu Jian as the Supervisor Elected June 182024 shareholder representative supervisor of the 11th Board of supervisors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Qiu Jin Meeting of Shareholders.According to the resolution of the first meeting of the 11th Board of Supervisors of the Company it Chairman of was agreed to elect Mr. Qiu Jin as the chairman of Elected June 182024 Supervisory the 11th Board of supervisors of the Company with a term of office of three yearsThe term of office is consistent with the term of office of the current Board of Supervisors.After review and approval at the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to elect Mr. Ma Yu as the Supervisor Elected June 182024 shareholder representative supervisor of the 11th Ma Yu Board of supervisors of the Company with a term of office of three years which will take effect from the date of review and approval at the General Meeting of Shareholders.After democratic election by 2nd session of the 9th employee representative meeting Ms.Ji Ge Ji Ge Staff supervisor Elected June 172024 was elected as the employee supervisor of the 11th board of supervisors with a term of office of three yearsThe term of office is consistent with 67Annual Report 2024 the term of office of the current Board of Supervisors.According to the resolution of the first meeting of the 11th Board of Directors it was agreed to appoint Mr. Tang Youdao as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term June 182024 November of office in the current Board of Directors.Tang Youdao Vice president Appoint 222024 According to the resolution of the Sixth meeting of the 11th Board of Directors it was agreed to appoint Mr. Tang Youdao as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.When the Board of Directors changes he will Director Dimission June 182024 resign at the expiration of his term of office.According to the resolution of the first meeting of the 11th Board of Directors it was agreed to Kou Huameng appoint Mr. Kou Huameng as the Company's vice Vice president Appoint June 182024 president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.When the Board of Directors changes he will Director Dimission June 182024 resign at the expiration of his term of office.According to the resolution of the first meeting of the 11th Board of Directors it was agreed to Hu Zhaogei appoint Mr. Huu Zhaogui as the Company's vice Vice president Appoint June 182024 president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.According to the resolution of the first meeting of the 11th Board of Directors it was agreed to appoint Ms. Li Xia as the Company's vice Vice president Appoint June 182024 president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.Li Xia According to the resolution of the first meeting of the 11th Board of Directors it was agreed to appoint Ms. Li Xia as the Company's secretary of Secretary of the Appoint June 182024 the board. with a term of office from the date of Board review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.Pang Haitao CFO Appoint June 182024 According to the resolution of the first meeting of the 11th Board of Directors it was agreed to 68Annual Report 2024 appoint Mr.Pang Haitao as the Company's CFO. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors.Yong When the Board of Directors changes he will Director Dimission June 182024 resign at the expiration of his term of office.Fengshan Independent When the Board of Directors changes he will Zhao Gang Dimission June 182024 resign at the expiration of his term of office.director Chairman of When the Board of Supervisors changes he will Shao Min Supervisory Dimission June 182024 resign at the expiration of his term of office.When the Board of Directors changes he will He Xintan Supervisor Dimission June 182024 resign at the expiration of his term of office.When the Board of Directors changes he will Hong Hong Supervisor Dimission June 182024 resign at the expiration of his term of office.When the Board of Supervisors changes he will Sun Hongying Staff supervisor Dimission June 182024 resign at the expiration of his term of office.Vice president June 182024 He will resign at the expiration of his term of Huang Danian Dimission office.(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)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. (3)YiSuqin female Han born in August 1978 in Xiantao Hubei Province member of the Communist Party of China master's degree in Business Administration from University of Electronic Science and Technology of China 69Annual Report 2024 bachelor's degree in International Accounting from Zhongnan University of Economics and Law Senior Accountant. She has served as the Leading Accountant of Jining Sales Branch and Shijiazhuang Sales Branch of Sichuan Changhong Electric Co.Ltd. the Marketing Finance Director and Cost Director of Multimedia Company of Sichuan Changhong Electric Co.Ltd. the Manager of Tax Section of Finance Department the Director of Tax Section and the Senior Manager of Taxation and Integration of Sichuan Changhong Electric Co.Ltd. and the Deputy Head of Financial Management Department of Sichuan Changhong Electric Co.Ltd.She is currently the Head of the Finance Department of Sichuan Changhong Electronic Holdings Limited the Supervisor of Sichuan Changhong Electric Co.Ltd. and the Director of the Company. （4）Cheng Ping male Han born in September 1969 in Pujiang Sichuan bachelor's degree in Radio Technology from the Radio Department of University of Electronic Science and Technology of China.He has served as the head of the Technical Management Section of the Technical Quality Department and the Planning Technology Department of Sichuan Changhong Electric Co.Ltd. concurrently as the General Manager of Sichuan HongdianDigital Home Industry Technology Research Institute Co. Ltd. the director the deputy head and head of the Science and Technology Management Department of Sichuan Changhong Electric Co.Ltd. He is currently the head of Strategy and Technology Development Department of Sichuan Changhong Electronic Holdings Limited the director of Sichuan Changhong Intelligent Health Technologies Co. Ltd. the director of Sichuan Changhong Education Technology Co. Ltd. the director of Zhongjiu Shining Medical Technology Co. Ltd. and the director of the Company. （5）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 SichuangChanghong Air-conditioning Co. Ltd. and Director of Zhongke Meiling Low Temperature Technology Co. Ltd. （6）Fang Wei male Han born in September 1969 in Wuhu Anhui Province member of the Communist Party of China Senior Accountant college degree has served as the head of Fund Section of the Finance Department of Hefei Sifang Chemical Group Limited Liability Company the deputy head and head of the Planning and Finance Department of Hefei Industrial Investment Holdings Co. Ltd. and the General Manager of the Planning and Finance Department of Hefei Industrial Investment Holdings (Group) Co. Ltd.He is currently the Chief Economist of Hefei Industrial Investment Holdings (Group) Co. Ltd. and the Director of the Company. （7）Mou Wen female Han born in September 1965 in Hengshan Hunan Province master's degree in Business Management from Sichuan University.She used to serve as a lecturer in the Business School of Sichuan University an associate professor of accounting in the Business School of Sichuan University an independent director of Tibet Mining Development Co. Ltd. Sichuan Jinlu Group Co. Ltd. Changhong Huayi Compressor Co. Ltd. Jinhui Liquor Co. Ltd. Sichuan Teway Food Co. Ltd. Hebei Baoli Engineering Equipment Corporation Limited Fulin Precision Machining Co.Ltd. and Chengdu Silicon Treasure Technology Co. Ltd. an independent director of 70Annual Report 2024 Sichuan Junyi Digital Technology Co. Ltd. and a member of the Investment Decision Advisory Committee of Sichuan Chuanjiao Road & Bridge Co. Ltd. and a financial consultant of Sichuan Dakar Electric Co. Ltd. She is currently an associate professor of accounting and a master tutor at the Business School of Sichuan University an independent director of Tibet Mining Development Co. Ltd. an independent director of Chengdu RuixueFengtai Precision Machinery Co. Ltd. and an independent director of the Company. （8）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. （9）Mr. Cheng Wenlong male Han born in September 1969 in Ningguo City Anhui Provincedoctoral degree in Engineering Thermophysics from China University of Science and Technology.He has served as a teaching assistant lecturer associate professor and professor at the School of Engineering Science University of Science and Technology of China.He is currently a professor and doctoral supervisor at the School of Engineering Science University of Science and Technology of China a vice chairman of Anhui Refrigeration Society an independent director of Beijing Zhongshi Weiye Technology Co. Ltd. and independent director of the Company. （10）Qiu Jin male Han born in May 1974 in Jiangyou Sichuan bachelor's degree in accounting from Southwest University of Science and Technology.He began to work in October 1996 and served as an accountant and chief accountant in Jiangyou Post Office a project manager of Economic Benefit Department of Sichuan Changhong Electric Co.Ltd. head of Audit Department of Changhong Meiling Co. Ltd. head of Marketing Audit Section and head of Economic Benefit Section of Sichuan Changhong Electric Co.Ltd. head of Audit Department of Sichuan Electronic Military Industry Group Co. Ltd. and an senior manager of Intelligent Integration of Sichuan Changhong Electronic Holdings Limited He is currently the director of the Audit Department of Sichuan Changhong Electric Co.Ltd. and the chairman of the Board of Supervisors of the Company. （11）Ma Yu male Hui born in June 1982 in Mianyang Sichuan bachelor's degree in Trade and Economics from Xi'an JiaotongUniversity.He began to work in July 2005 and has served as an overseas sales manager and a product planning manager of product planning center of Sichuan Changhong Electric Co.Ltd. and an operation manager of Strategic Management Department of Sichuan Changhong Electronic Holdings Limited.He is currently the risk control manager of the Compliance and Risk Control Department of Sichuan Changhong Electronic Holdings Limited and the supervisor of the Company. （12）Ji Ge female Han born in January 1982 in Nanyang Henan Province bachelor's degree in law from Hunan University and master's degree in law from Anhui University.She began to work in July 2005 and has served as an Legal Commissioner Legal Officer Intellectual Property Director of the Legal Department Head of the Legal 71Annual Report 2024 Department Head of the Board Office and Compliance and Risk Control Department of Changhong Meiling Co.Ltd.She is currently the director of the Board Office and Compliance Risk Control Department employee supervisor director of the Party Committee Office and director of the Committee Office for Discipline Inspection of the Company. （13）Tang Youdao male Han born in July 1970 in Xuancheng Anhui Province bachelor's degree in Industrial Management Engineering from Wuhan University of Technology. He has served as an overseas marketing manager head of Marketing Department head of Overseas Marketing Department general manager of Overseas Business Department general manager of Ice Washing Business Headquarters and general manager of International Ice Washing Business Department. He is currently the vice president of the Company (acting as the president). （14）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. （15）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. （16）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. （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. 2. Post-holding in shareholder’s unit √ Applicable □ Not applicable 72Annual Report 2024 Drawing remuneration and Start date of office End date of office Name Shareholder’s unit Title allowance from term term shareholder’s unit (Y/N) Sichuan Wu Dinggang Changhong Deputy GM 2019.1.11 2026.12.28 Yes Electric Co. Ltd.Secretary of the 2020.12.16 2026.12.28 Yes Board of Directors Chief Compliance 2022.11.25 2026.12.28 No Officer General counsel 2022.02.14 - No Director of the Sichuan office of the Board 2021.03.29 - No Zhai Qilin Changhong of Directors Electric Co. Ltd.Director of the management office 2023.01.09 - No of ESG The Minister of the General 2024.01.26 - No Management Department Sichuan Yi Suqin Changhong Supervisor 2023.12.29 2026.12.28 No Electric Co. Ltd.Hefei Industrial Investment Fang Wei Chief Economist 2022.01.11 - Yes Holding （Group） Co. Ltd.Sichuan Qiu Jin Changhong Audit minister 2021.04.01 - Yes Electric Co. Ltd.Post-holding in shareholder’s unit N/A 3. Post-holding in other unit √ Applicable □ Not applicable Drawing remuneration Start date of End date of office Name Other unit Title and allowance office term term from other unit (Y/N) Sichuan Changhong Innovation Director 2021.01.21 - No Investment Co. Ltd.WIDEMIRACLELIMITED Director 2014.07.14 - No Ganghong Industrial Co. Ltd. Director 2013.06.18 - No SUFFICIENTVALUEGROUPL Zhao Qilin Director 2013.06.18 - No IMITED ChanghongJiahua (Hong Kong) Director 2021.01.08 - No Information Products Co. Ltd.Anjian Holdings Co. Ltd. Director 2012.01.19 - No Guangzhou Huanwang Director 2022.05.23 No Technology Co. Ltd. 73Annual Report 2024 Changhong Jiahua Holdings Executive director 2023.03.17 - No Co. Ltd.MianyangChanghong Chairman 2023.08.15 - No Technology Co. Ltd.Sichuan Changhong Minsheng Chairman 2024.05.16 - No Logistic Co. Ltd.Sichuan Changhong Electronics Minster of finance 2024.01.26 - Yes Holding Group Co. Ltd..Yi Suqin Sichuan Changhong Group Director 2024.07.25 - No Finance Co. Ltd.Minister of Strategy and Sichuan Changhong Electronics Science and 2023.10.27 - Yes Holding Group Co. Ltd.Technology Development ZhongjiuShanguang Medical Director 2022.09.15 - No Technology Co. Ltd.Cheng Sichuan Changhong New Director 2023.02.10 - No Ping Material Technology Co. Ltd.Sichuan ChanghongEducation Director 2018.04.20 - No Technology Co. Ltd Sichuan Changhong Smart Director 2023.08.04 - No Health Technology Co. Ltd Sichuan Ansifei Technology Chairman 2023.07.26 - No Co. Ltd.Zhong Sichuan Qiruk Technology Co. Director General 2024.12.10 2026.12.09 Yes Ming Ltd. Manager Hefei Venture Capital Guide Chairman 2024.02.02 - No Fund Co. Ltd efei Science and Technology Rural Commercial Bank Co. Director 2022.07.09 - No Ltd Science Island Hefei Technology Innovation Chairman 2023.05.02 - No Engineering Institute Co. Ltd Hefei Life Health Industry Chairman 2024.01.10 - No Development Co. Ltd Fang Wei Ma'Anshan Iron and Steel Director 2022.04.15 No (Hefei) Co. LTD Changxin Technology Director 2022.09.19 No GroupCo. Ltd.Hefei Medical Device Inspection and Testing Center Executive director 2024.05.27 No Co. Ltd Anhui Amway Materials Director 2024.02.02 No Technology Co. Ltd 74Annual Report 2024 Associate Business School of Sichuan professor master 1995.02 - Yes University tutor Tibet Mining Development Co. Independent Mou Wen 2021.03.09 2027.06.01 Yes Ltd. director hengduRuixueFengtai Precision Independent 2025.01.01 2027.12.31 Yes Electronics Shares Co. Ltd. director Hong YiluoTechnology( Shanghai) CFO of Asia Yuanjia Co. Ltd. pacific 2014.06 - Yes Teacher and University of Science and doctoral 2014.06.01 - Yes Technology of China Cheng supervisor Wenlong Beijing Zhongshi Weiye Independent 2022.01.24 2025.01.24 Yes Technology Co. Ltd director Chairman of the Sichuan Changhong Jiahua Board of 2023.05.31 2026.05.30 No Information Products Co. Ltd Supervisors Chairman of the Sichuan Hongxin Software Co.Board of 2022.07.01 2025.06.30 No Ltd Supervisors Sichuan Changhong Communication Technology Supervisor 2018.09.13 2027.09.12 No Co. Ltd Qiu Jin Sichuan Changhong Cloud Supervisor 2018.04.11 2027.04.10 No Computing Co. Ltd Beijing Changhong Information Supervisor 2021.12.02 2027.12.01 No Technology Co. LTD Sichuan Changhong Supervisor 2024.04.10 2027.04.09 No International Hotel Co. Ltd Sichuan Temons Hotel Co. Ltd Supervisor 2024.04.15 2027.04.14 No Manager of the Sichuan Changhong Electronics Compliance and Ma Yu 2021.04 - Yes Holding Group Co. Ltd Risk Control Department Sichuan Zhiyijia Network Director 2019.07.25 - No Technology Co. Ltd.Hu Sichuan TianyouGuigu Director 2018.01.16 - No Zhaogui Technology Co. Ltd.Chengdu Guigu Environmental Director 2018.06.30 - No Tech. Co. Ltd.Pang Hefei Xingmei Asset Director 2018.02.05 - No Haitao Management Co. Ltd.Post-holdi ng in other N/A unit 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 75Annual Report 2024 (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 of Association” and “Enforcement Regulation of Remuneration and Evaluation Committee of the Board” including: Allowance plan of independent directors are implemented after deliberated in the Board and 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 17 in total up to 31 December 2024 actually 10 person receiving remuneration from the Company 3 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 5 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 Whether Total remuneration remuneration obtained from the Name Sex Age Title Post status obtained from Company (before related party of taxes) the Company Yes Wu Male 52 Chairman In Office 0 Dinggang Zhao Qilin Male 49 Director In Office 0 Yes Yi Suqin Female 46 Director In Office 0 Yes Cheng Ping Male 55 Director In Office 0 Yes Zhong Male 52 Director In Office 137.49 Yes 76Annual Report 2024 Ming Fang Wei Male 55 Director In Office 0 Yes Independent Mou Wen Female 58 In Office 11.9 No director Hong Independent Male 49 In Office 11.9 No Yuanjia director Cheng Independent Male 55 In Office 6.35 No Wenlong director Chairman of Qiu Jin Male 50 In Office 0 Yes Supervisory Ma Yu Male 42 Supervisor In Office 0 Yes Ji Ge Female 43 Staff supervisor In Office 49.69 No Tang Male 54 Vice president In Office 214.4 No Youdao Kou Male 55 Vice president In Office 94.11 No Huameng Hu Male 50 Vice president In Office 112.22 No Zhaogui Vice president Li Xia Female 44 Secretary of the In Office 82.14 No Board Pang Male 49 CFO In Office 94.87 No Haitao Yong Male 56 Director Dimission 0 No Fengshan Independent Zhao Gang Male 46 Dimission 5.55 No director Chairman of Shao Min Male 42 Dimission 0 Yes Supervisory He Xintan Male 44 Supervisor Dimission 0 Yes Huang Female 54 Supervisor Dimission 0 Yes Hong Sun Female 53 Staff supervisor Dimission 35.52 No Hongying Huang Male 55 Vice president Dimission 64.5 No Danian Total -- -- -- -- 920.64 -- OtherNote 77Annual Report 2024 □Applicable √Not applicable VI. Responsibility performance of directors during the reporting period (i) The board of directors during the reporting period Session of meeting Date of meeting Disclosure date Meeting resolutions The Board of Directors reviewed and approved 3 proposals namely Proposal on Establishing ESG Management Organizational Structure of the Company Proposal on Formulating Detailed Rules for the Implementation of ESG Management Committee of the Board of Directors and Proposal on the The 40th session of 10thBOD February 192024 February 202024 Refrigerator Front-end Capacity Improvement Project of Hefei Manufacturing Base of the Company.for details please refer to the "Resolution Notice of the 40th session of 10thBOD" (No. 2024-004) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved the Proposal on Establishing a wholly-owned Subsidiary by Sichuan Changhong Air Conditioning Co. Ltd.for The 41stsession of 10thBOD March 142024 March 152024 details please refer to the "Resolution Notice of the 41stsession of 10thBOD" (No. 2024-006) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 33 proposals including 2023 Annual Report and Summary of Annual Report 2023 Work Report of the Board of Directors 2023 Work Report of the President 2023 Financial Statement Report and 2023 The 42ndsession of 10thBOD March 282024 March 302024 Debriefing Report of Independent Directors.for details please refer to the "Resolution Notice of the 42ndsession of 10thBOD" (No. 2024-007) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 5 proposals including the Report on the First Quarter of 2024 the Proposal on Provision for Credit Impairment and the Proposal on Provision for Asset Impairment.The 43rd session of 10thBOD April 192024 April 202024 for details please refer to the "Resolution Notice of the 43rdsession of 10thBOD" (No. 2024-020) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 7 proposals including the Proposal on Amending Some Provisions of the Company's Articles of Association the Proposal on Amending Some Articles of the Company's Authorization Management System and the Proposal on Increasing the Use of the Company's The 44thsession of 10thBOD May 312024 June 12024 Own Idle Funds to Invest in Wealth Management Products.for details please refer to the "Resolution Notice of the 44thsession of 10thBOD" (No. 2024-026) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The 1sr session of 11thBOD June 182024 June 192024 The Board of Directors reviewed and approved 8 78Annual Report 2024 proposals including the Proposal on Electing the Chairman of the 11th Board of Directors of the Company and the Proposal on Establishing Special Committees under the 11th Board of Directors of the Company.for details please refer to the "Resolution Notice of the 1stsession of 11thBOD" (No. 2024-038) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 7 proposals including the Full Text and Summary of the Semi-annual Report in 2024 Proposal on Provision for Credit Impairment and Proposal on Provision for The 2ndsession of 11thBOD August 152024 August 172024 Asset Impairment.for details please refer to the "Resolution Notice of the 2ndsession of 11thBOD" (No. 2024-041) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 20 proposals including Proposal on Acquisition of Equity and Related Transactions of Hefei Changhong Industry Co. Ltd. and Proposal on Increasing the The 3rd session of 11thBOD October 112024 October 122024 Estimated Daily Related Transactions in 2024.for details please refer to the "Resolution Notice of the 3rdsession of 11thBOD" (No. 2024-046) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 4 proposals including the Report on the Third Quarter of 2024 and the Proposal on Provision for Credit Impairment.The 4thsession of 11thBOD October 222024 October 232024 for details please refer to the "Resolution Notice of the 4thsession of 11thBOD" (No. 2024-055) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved one proposal namely the Proposal on Extension and Related Transactions of Sichuan Hongyun New Generation Information Technology Venture Capital The 5thsession of 11thBOD November 42024 November 52024 Fund Partnership Enterprise (Limited Partnership).for details please refer to the "Resolution Notice of the 5thsession of 11thBOD" (No. 2024-061) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved the Proposal on Authorizing the Company's Vice President Mr. Tang Youdao to act as President The 6thsession of 11thBOD November 222024 November 232024 for details please refer to the "Resolution Notice of the 6thsession of 11thBOD" (No. 2024-065) on the cninfo website (Juchao Website (www.cninfo.com.cn)).The Board of Directors reviewed and approved 4 The 7thsession of 11thBOD December 22024 - proposals including the Proposal on Improving the Technical Capability of the Company's Testing Center 79Annual Report 2024 and the Proposal on the Technology Platform Switching and Manufacturing System Capability Improvement Project of the Subsidiary Sichuan Changhong Air Conditioning Co. Ltd.The Board of Directors reviewed and approved 7 proposals including the Proposal on Predicting Daily Related Transactions in 2025 and the Proposal on Predicting Continuous Related Transactions between the Company and Its Subsidiaries and Sichuan The 8thsession of 11thBOD December 112024 December 122024 Changhong Group Finance Co. Ltd. in 2025 for details please refer to the "Resolution Notice of the 8thsession of 11thBOD" (No. 2024-067) on the cninfo website (Juchao Website (www.cninfo.com.cn)).It reviewed and approved the Proposal on Offering The 9thsession of 11thBOD December 162024 —— Special Performance Awards to the Company's Senior Management in 2023.The Board of Directors reviewed and approved one proposal namely the Proposal on Amending the "Risk Disposal Plan of Changhong Meiling Co. Ltd. on the Financial Business of Deposits and Loans in Sichuan The 10hsession of 11thBOD December 312024 January 22025 Changhong Group Finance Co. Ltd.".for details please refer to the "Resolution Notice of the 10thsession of 11thBOD" (No. 2025-001) 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 15 3 12 0 0 No 3 Dinggang Zhao Qilin 15 3 12 0 0 No 3 Yi Suqin 10 2 8 0 0 No 1 Cheng Ping 10 2 8 0 0 No 0 Zhong Ming 15 3 12 0 0 No 3 Fang Wei 10 2 8 0 0 No 1 Mou Wen 15 3 12 0 0 No 3 Hong 15 2 13 0 0 No 3 Yuanjia Cheng 10 2 8 0 0 No 1 Wenlong Yong 5 0 5 0 0 No 0 Fengshan Kou 5 1 4 0 0 No 2 Huameng Hu Zhaogui 5 1 4 0 0 No 1 80Annual Report 2024 Zhao Gang 5 1 4 0 0 No 2 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 .VII. The special committees under the board during the reporting period Specific Number Important comments Other circumstances of Committee name Members Date of Meeting content and suggestions performance of the meetings meeting made of duties objection (if held applicable) The proposal was A total of 1 proposal was deliberated and reviewed namely the Wu passed and agreed to March Proposal on Establishing a Not Dinggang be submitted to the No 92024 wholly-owned Subsidiary by applicable Zhao QiLin board of directors of Sichuan Changhong Air Zhong Ming the company for Conditioning Co. Ltd.Kou consideration.Huameng The proposal was Hu Zhaogui deliberated and A total of one proposal was Yong passed and agreed to March reviewed namely the Not Fengshan be submitted to the No Strategy 182024 Proposal on the Company's applicable Zhao Gang 3 board of directors of Committee Development Plan in 2024.the company for consideration.Wu Dinggang A total of 1 proposal was The proposal was Zhao Qilin reviewed namely the deliberated and Yi Suqin Proposal on Acquisition of passed and agreed to October Not Cheng Ping Equity and Related be submitted to the No 82024 applicable Zhong Ming Transactions of Hefei board of directors of Fang Wei Changhong Industry Co. the company for Cheng Ltd. consideration.Wenlong A total of 2 proposals were reviewed namely the Proposal on the Company's 2023 Financial Accounting All proposals were January Not Statement and Internal deliberated and No 122024 applicable Hong Control Audit Schedule and passed.Yuanjia the Company's 2023 Audit Committee 7 Mou Wen Unaudited Financial Zhao Gang Accounting Statement.A total of 1 proposal was deliberated namely the First The proposal were March Not Draft of the Audit of the deliberated and No 122024 applicable Company's Financial passed Accounting Statements in 81Annual Report 2024 2023. All the proposals were reviewed and approved and five proposals were agreed to be submitted to the A total of 6 proposals were Board of Directors reviewed namely the of the Company for Audited Financial review namely Accounting Report of the Audited Financial Company in 2023 Audit Accounting Report Report on Internal Control of the Company in in 2023 Summary Report on 2023 Audit Report the Audit of the Company by of Internal Control ShineWing Certified Public in 2023 Report of Accountants in 2023 Report the Audit Committee of the Audit Committee of the of the Board of March Not Board of Directors of the Directors of the No 272024 applicable Company on the Company on the Performance Evaluation and Performance Performance Supervision of Evaluation and Accounting Firms in 2023 Performance Proposal on Changing the Supervision of Audit Institution of the Accounting Firms in Financial Report and 2023 Proposal on Internal Control in 2024 and Changing Audit Proposal on the Company's Institutions of Forward Foreign Exchange Financial Report Fund Trading Business. and Internal Control in 2024 and Proposal on the Company's Forward Foreign Exchange Fund Trading Business.The proposal was A total of 1 proposal was deliberated and reviewed namely the passed and agreed to April Not Financial Statement of the be submitted to the No 172024 applicable Company for the First board of directors of Quarter of 2024 the company for consideration.The proposal was A total of 1 proposal was deliberated and reviewed namely the passed and agreed to June Not Proposal on Appointing the be submitted to the No 182024 applicable Financial Controller of the board of directors of Company. the company for consideration.Mou Wen The proposal was Wu A total of 1 proposal was deliberated and Dinggang deliberated namely the passed and agreed to Zhao Qilin August Not Semi-annual Financial be submitted to the No Hong 52024 applicable Report of the Company in board of directors of Yuanjia 2024. the company for Cheng consideration.Wenlong The proposal was A total of 1 proposal was deliberated and reviewed namely the passed and agreed to October Not Financial Report of the be submitted to the No 182024 applicable Company for the Third board of directors of Quarter of 2024. the company for consideration. 82Annual Report 2024 The proposal was A total of 1 proposal was deliberated and reviewed namely the passed and agreed to March Assessment and Payment of be submitted to the 182024 Wu the Company's Directors and board of directors of Dinggang Senior Management in 2023. the company for Mou Wen consideration. Not No Hong A total of 1 proposal was The proposal was applicable Yuanjia reviewed namely the deliberated and Remuneration and Zhao Gang Proposal on Determining the passed and agreed to May Appraisal 3 Allowance Standard for be submitted to the 292024 Committee Independent Directors of the board of directors of 11th Board of Directors of the company for the Company consideration.The proposal was Hong A total of 1 proposal was deliberated and Yuanjia Wu reviewed namely the passed and agreed to Dinggang December Proposal on Offering Special Not be submitted to the No Mou Wen 142024 Performance Awards to the applicable board of directors of Cheng Company's Senior the company for Wenlong Management in 2023 consideration.A total of 2 proposals were reviewed namely the Proposal on Qualification Examination of Candidates The proposal was Mou Wen for Non-independent deliberated and Wu Directors to be Elected by passed and agreed to Dinggang May Not the 11th Board of Directors be submitted to the No Hong 292024 applicable and Proposal on board of directors of Yuanjia Qualification Examination the company for Zhao Gang of Candidates for consideration.Independent Directors to be Elected by the 11th Board of Directors A total of 2 proposals were reviewed namely the Nomination Proposal on Qualification 3 The proposal was committee Examination of the President deliberated and of the Company to be passed and agreed to June Appointed and Proposal on Not Cheng be submitted to the No 182024 Qualification Examination applicable Wenlong board of directors of of the Vice President Wu the company for Secretary of the Board of Dinggang consideration.Directors and Financial Zhong Ming Controller of the Company Mou Wen to be Appointed Hong The proposal was Yuanjia A total of 1 proposal was deliberated and reviewed namely the passed and agreed to November Proposal on Authorizing the Not be submitted to the No 202024 Company's Vice President applicable board of directors of Mr. Tang Youdao to act as the company for President consideration.Wu The proposal was Dinggang A total of 1 proposal was deliberated and Zhao Qilin reviewed namely the Report passed and agreed to ESGadministrative Zhong Ming March Not 1 on Environment Society and be submitted to the No Committee Kou 182024 applicable Governance (ESG) of the board of directors of Huameng Company in 2023 the company for Hu Zhaogui consideration.Mou Wen 83Annual Report 2024 A total of 3 proposals were reviewed namely the Proposal on Increasing The proposal was Daily Related Transactions deliberated and Mou Wen in 2024 Profit Distribution passed and agreed to Hong March Not Plan of the Company for be submitted to the No Yuanjia 182024 applicable 2023 and Report on the board of directors of Zhao Gang Company's Continuous Risk the company for Assessment of Sichuan consideration.Changhong Group Finance Co. Ltd.A total of 2 proposals were reviewed namely Report on The proposal was the Company's Continuous deliberated and Risk Assessment of Sichuan passed and agreed to August Not Changhong Group Finance be submitted to the No 52024 applicable Co. Ltd. and Proposal on board of directors of Increasing the Estimated the company for Daily Related Transaction consideration.Limit in 2024.A total of 20 proposals were reviewed namely the The proposal was Proposal on Acquisition of deliberated and Equity and Related passed and agreed to October Transactions of Hefei Not be submitted to the No 82024 Changhong Industry Co. applicable board of directors of Ltd. and Proposal on the company for Increasing the Estimated consideration.Daily Related Transactions in 2024.Special committee A total of 1 proposal was of independent 6 reviewed namely the The proposal was directors Proposal on Extension and deliberated and Related Transactions of passed and agreed to November Not Sichuan Hongyun New be submitted to the No Mou Wen 12024 applicable Generation Information board of directors of Hong Technology Venture Capital the company for Yuanjia Fund Partnership Enterprise consideration.Cheng (Limited Partnership).Wenlong A total of 3 proposals were reviewed namely the Proposal on Predicting Daily Related Transactions in 2025 Proposal on The proposal was Predicting Continuous deliberated and Related Transactions passed and agreed to December Not between the Company and be submitted to the No 72024 applicable Its Subsidiaries and Sichuan board of directors of Changhong Group Finance the company for Co. Ltd. in 2025 and consideration.Proposal on Continuous Risk Assessment Report of Sichuan Changhong Group Finance Co. Ltd.A total of 1 proposal was reviewed namely the The proposal was Proposal on Amending the deliberated and Company's "Risk Disposal passed and agreed to December Not Plan on the Financial be submitted to the No 282024 applicable Business of Deposits and board of directors of Loans in Sichuan the company for Changhong Group Finance consideration.Co. Ltd.".VIII. Works from Supervisory Committee Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory 84Annual Report 2024 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) 3918 On-job employee in main subsidiary at period-end(people) 10737 Total on-job employees at period-end(people) 14655 Current total payroll(people) 14655 Number of retired employees with expenses paid by the parent 57 company and main subsidiary (people) Professional structure Types of professional category Numbers of professional category (people) Production staff 7410 Salesman 4458 Technician 1911 Financial staff 292 Administration staff 584 Total 14655 Education background Type of education background Numbers (people) High school and below 9096 Junior college 2282 Undergraduate 3054 Master and above 223 Total 14655 (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 the Company designed differentiated reward schemes according to the characteristics of different business units and based on the system balance so as to realize the effectiveness of positive guidance and efficiently stimulate the business vitality of each business unit. At the same time in order to promote employees' vitality and build a multi-incentive system it focuses on four core dimensions: growth incentive welfare incentive honor incentive and emotional incentive.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 85Annual Report 2024 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. In-depth development of the mechanism for selection training use and retention of reserve talents. The Company has established a clear talent standard evaluation model and completed the construction of talent standards for managerial positions supervisors and professional positions; It has established a succession map of talents in key positions in each sequence and clarified the current status of the existing talent team and the succession system of different types of talents in the future. The Company focuses on optimizing the talent reserve echelon structure of the "Yongquan Plan" and optimizes and adjusts the talent echelon structure of the middle and senior reserve cadre pool the Class A reserve successor pool the Class A reserve growth pool the Class B reserve supervisor pool and the outstanding college student pool through the selection of young reserve cadres and the regular review and evaluation of reserve talents. At the same time the reserve talent echelon readiness evaluation model is constructed which evaluates the values performance results career experience performance ability of the target position leadership training and performance effectively measures their reserve and configures a training plan in line with their career planning. 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 Plan and carry out the learning map project through the design of the learning map of the process structure finance and other sequences closely link the qualifications of specific positions with the learning map pull through the organic combination of talent 86Annual Report 2024 development and learning path and promote the Company's various sequences to cultivate professionals scientifically systematically and efficiently; Focus on the sequence of key positions to build a phased learning map micro-course resource library to help the professional construction of talent echelon.(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 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 in order to enhance and improve the shareholder return mechanism increase the transparency and operability of profit distribution policy and decision-making and effectively protect the legitimate rights and interests of public investors the Company formulated the "Shareholder Return Plan for the Company in the Next Three Years (2024-2026)" in accordance with relevant regulations and comprehensive consideration of factors such as the Company's operating and financial status. Meanwhile the Company has implemented the 2023 annual profit distribution plan that is based on the total share capital of 1029923715 shares on date of record at the time of implementing the 2023 annual equity distribution plan (including 881733881 shares of A shares and 148189834 shares of B shares) the company distributed a cash dividend of RMB 3 (including tax) for every 10 shares to all shareholders with a total cash dividend of RMB 308977114.5.and the dividend ratio accounts for 41.70% of the net profit attributable to shareholders of the listed company in 2023.Special explanation on cash dividend policy Whether it meets the requirements of the Articles of Association Yes or the resolution of the general meeting of shareholders: Whether the dividend standard and proportion are explicit and Yes clear: Whether the relevant decision-making procedures and Yes mechanisms are complete: Whether the independent directors have performed their duties Yes and played their due role: If the Company does not distribute cash dividends specific reasons as well as the measures to be taken to enhance investor Not applicable returns should be disclosed: Whether the minority shareholders have the opportunity to fully express their opinions and demands and whether their Yes legitimate rights and interests have been fully protected: Whether the cash dividend policy is adjusted or changed and whether the conditions and procedures are compliant and Yes transparent: (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 87Annual Report 2024 □ 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) 3.3 Shares added for every 10-share base (Share) 0 Equity base of distribution plan (Share) 1029923715 Total cash dividend (RMB) (Tax included) 339874825.95 Cash dividend for other ways (i.e. repurchased) (RMB) 0 Total cash dividend (including other way) (RMB) 339874825.95 Profits available for distribution (RMB) 1213740009.40 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 2024 as the base distribute cash dividends of 3.3yuan (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 Pan-China Certified Public Accountants LLP in 2024 the net profit realized in individual financial statements of the parent company was RMB 254008762.00. As of December 31 2024 the cumulative undistributed profit in individual financial statements of the parent company was RMB 1213740009.40. In addition in the consolidated financial statements of the company for the year 2024 the net profit attributable to the owners of the parent company was 699270051.82 yuan. As of December 31 2024 the cumulative undistributed profit in the consolidated financial statements was 1803207185.06 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 2024 is the accumulated undistributed profit of RMB 1213740009.40 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 3.3 yuan (including tax) for every 10 shares to all shareholders based on the total share capital of 1029923715 shares as of December 31 2024 without bonus shares or conversion of reserve funds into share capital. It is expected to distribute a cash dividend of 339874825.95 yuan. After this distribution it is expected that the remaining cumulative undistributed profit of the parent company will be 873865183.45 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 2024 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 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. 88Annual Report 2024 (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 During the reporting period as a shareholder or controller the company strictly adhered to relevant national laws and regulations as well as the provisions and requirements of the company's articles of association regarding the standardized operation and improvement of corporate governance structure and exercised supervision and management over major issues of the subsidiary. The company also had the right to legally enjoy investment returns and make decisions on major issues for the investing enterprise.The company has established a standardized and detailed decentralization manual set clear approval authorities and processes and achieved scientific reasonable and efficient management of its subsidiaries. At the same time according to the relevant internal control system of the company manage and supervise the disclosure of information standardized operation guarantee business personnel production and operation of subsidiary companies.During the reporting period the company did not have any major decisions of its subsidiaries that did not comply with company regulations or major issues that were not reported in a timely manner. The subsidiaries also did not find any significant deficiencies in their internal controls.During the reporting period the company integrated by purchasing a new subsidiary as follows: Name Problems of Integratio Resolve Follow-up Integration plan encountered Actions taken compa n progress progress resolution plan in integration ny On November 202024 The company and its subsidiary Hefei Hefei Meiling IoT Technology Industrial Co. Ltd. purchased 99% equity completed of Hefei Industry held by the the controlling shareholder Sichuan industrial Changhong and 1% equity of and Hefei Industry held by Sichuan commerci Changhong Innovation al Hefei Investment Co. Ltd. a registratio Chang subsidiary of Sichuan n hong Changhong with their own procedure Not Indust funds. This transaction is in line s for NO Not Applicable Not Applicable rial with the company's strategic sharehold Applicable Co. development needs meeting the er Ltd expansion of the company's mid changes to high end refrigerators the and expansion of its own logistics became a warehouse and the future wholly-o layout of the integrated home wned appliance industry solving the subsidiary problems of industrial within the development and resource scope of scarcity. the company's merger statement- 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) April 32025 Index of evaluation report of internal control disclosed (Full-text) Juchao Website（www.cninfo.com.cn） The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the company's consolidated financial 99.91% statements The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the company's 100.00% consolidated financial statements 89Annual Report 2024 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 prevented or found or rectified in a timely manner.Occurrence of the followings will be deemed as material defect: 1. inefficiency of environment control; 2. fraud of directors supervisors and senior management; 3. The external auditor finds material wrong reporting in current financial statement while the Company has not found such reporting during its operation; 4. The material defect identified and reported to the management fails to be rectified in a reasonable time period; Occurrence of the followings shall be 5. The audit committee and audit department of the deemed as material defect otherwise as Company exercise invalid supervision upon internal control; major defect or general defect subject to 6. Other defects which may affect financial statement users the level of influence.to make correct judgment. 1. breach of national laws regulations 2. Major defect: severally or jointly with other defects or regulatory documents; will lead to wrong reporting in financial reports being not able 2. procedure for making significant to prevented or found or rectified in a timely manner which decisions is not scientific; still needs attention from the management though it doesn’t Qualitative criteria 3. absence of system may lead to reach or exceed material defect as described above.invalid system; Occurrence of the followings will be deemed as major defect: 4. Material or major defects are not (1) Financial losses caused by guaranteeing and investing in likely to rectify; securities and financial derivatives transactions and disposing 5. Large negative effects on the property right and stock right without authorization; company and disclosed in the form of (2) The company's financial staff or other relevant business announcement; personnel have unclear powers and responsibilities or job 6. Other issues that materially affect the chaos or are suspected of being involved in economic or Company.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 1. Proportion of potential wrong reporting in total defect: 0.05% ≤ wrong reporting＜0.1%; operating income: Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; General defect: General defect: wrong reporting ＜ wrong reporting＜0.1%. 0.05%. 2. Proportion of direct property loss 2. Proportion of potential wrong reporting in total in total profit: Material defect: wrong profit: Material defect: wrong reporting ≧10%; Major defect: reporting ≧10%; Major defect: 5% ≤ 5% ≤ wrong reporting ＜ 10%; General defect: wrong wrong reporting＜10%; General defect: Quantitative reporting＜5%. wrong reporting＜5%.standard 3. Proportion of potential wrong reporting in total 3. Proportion of direct property loss assets: Material defect: wrong reporting ≧0.5%; Major in total assets: Material defect: wrong defect: 0.1% ≤wrong reporting＜0.5%; General defect: wrong reporting ≧0.2%; Major defect: 0.1% ≤ reporting＜0.1%. wrong reporting＜0.2%; General defect: 4. Proportion of potential wrong reporting in total owners’ wrong reporting＜0.1%. equity: Material defect: wrong reporting ≧0.5%; Major 4. Proportion of direct property loss in defect: 0.1% ≤ wrong reporting＜0.5%; General defect: total owners’ equity: Material defect: wrong reporting＜0.1%. wrong reporting ≧0.2%; Major defect: 0.1% ≤ wrong reporting＜0.2%; General defect: wrong reporting＜0.1%.Amount of 0 significant defects 90Annual Report 2024 in financial reports Amount of 0 significant defects in non-financial reports Amount of 0 important defects in financial reports Amount of 0 important defects in non-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 2024 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 April 32025 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. 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. 91Annual Report 2024 Section V Environmental and Social Responsibility I. Major environmental (1)The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department □Yes √No The company and its subsidiaries do not belong to the key polluters announced by the environmental protection department.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 （2）.Refer to other environmental information disclosed by key pollutant discharge units Not applicable。 （3）.Measures taken to reduce carbon emissions and their effectiveness during the reporting period √Applicable □ Not applicable The Company actively responds to the national "dual carbon" strategy adheres to the concept of green and low-carbon development and takes dual carbon control as one of the core strategies of enterprise development.The Company has established a dual carbon management committee established a complete carbon emission control system and systematically promoted the Company's overall carbon control work. During the reporting period the Company completed the carbon emission mapping and successfully completed the 2024 carbon reduction target through measures such as energy conservation and efficiency upgrading energy system optimization etc. In terms of energy conservation and efficiency improvement the application of high-efficiency and energy-saving equipment the environmental protection technology and the lean production efficiency improvement projects have been implemented which have effectively reduced energy consumption and carbon dioxide emissions. The Company also optimizes the energy structure expands photovoltaic power generation projects and increases the proportion of purchased green electricity which reaches 20% in Hefei area in 2024.Meanwhile the Company is engaged in the management of green supply chain promoting suppliers and partners to jointly reduce carbon emissions and reduce carbon emissions in the entire supply chain. （4）.Reasons for not disclosing other environmental information Neither the Company nor its subsidiaries belong to the key pollutant discharge units announced by the environmental protection department.The Company advocates the development concept of green environmental protection strictly abides by environmental protection laws and regulations such as the Environmental Protection Law of People's Republic of China the Law of the People's Republic of China on the Prevention and Control of 92Annual Report 2024 Water Pollution and the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution promotes green production enhances energy conservation and emission reduction and earnestly fulfills its environmental protection responsibilities.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 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 (2024 -2026) It guides investors to establish the concept of long-term investment and rational investment and maintains the continuity and stability of the profit distribution policy. During the reporting period combined with its own operating conditions and other factors the Company implemented the 2023 profit distribution plan and made cash dividends accounting for 41.70% of the net profit attributable to shareholders of listed companies in 2023 offered shareholders a reasonable return on investment.Meanwhile during the reporting period the Company held 4 general meetings of shareholders and implemented a combination of on-site voting and online voting so that the majority of investors could fully participate and ensure that shareholders have the right to know participate and vote on the Company's major issues. When the general meeting of shareholders deliberated on major matters affecting the interests of small and medium-sized investors the votes of small and medium-sized investors were counted separately and publicly disclosed in the resolutions of the general meeting of shareholders in a timely manner so as 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 93Annual Report 2024 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 built a sound supplier management system established the "Supplier Evaluation Management Specification" strictly standardized the supplier access and evaluation system and regularly carried out audits and evaluations to continuously improve supplier capabilities and qualifications. The Company attaches great importance to improving the ability of suppliers and is committed to collaborative development with suppliers. In order to help suppliers improve quality control and sustainable development related awareness during the reporting period the Company organized supplier training activities from time to time. Meanwhile the Company strictly controls every aspect of the procurement business cultivates core and strategic suppliers and establishes a high-end supply chain for parts suppliers of high-end products forming a synergistic cooperative and win-win situation between the Company and suppliers.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 adheres to the user-centered principle and attaches importance to user reputation. 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 100 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 customer satisfaction and user net recommendation value. 94Annual Report 2024 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 4008 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 Over the years the company has been actively participating in social welfare undertakings and various social welfare activities. The Company actively carries out actions such as helping employees with serious illness or difficulties advocating voluntary donations from employees paying attention to occupational disease prevention and control and organizing safety education and training. During the reporting period the Company took the initiative to assume social responsibilities rushed to the flood-stricken areas in Xixian County Huangshan and provided free testing and cleaning services for home appliances. The Party Committee of the Company actively participated in the third party building project of Micro-philanthropy venture capital in the Jinxiu Community Social Organization Incubation Park in Hefei Economic Development Zone. During the reporting period it organized six activities including popular science popularization experiment safety education and psychological salon to enhance the happiness of the community and family. The Company also helped many primary and secondary schools in Hefei to carry out 26 study tours gave full play to the advantages of national intelligent manufacturing demonstration enterprises set up labor practice classes on the production line received nearly 3000 primary and secondary school students and sowed the "made in China" seeds in the hearts of every teenager through interesting experiment classes creative labor classes and brand history classes.In order to actively respond to the national poverty alleviation policy and focus on improving the school infrastructure in poor areas Changhong Air Conditioning a subsidiary of the Company participated in the "ChildhoodHarbor" project promoted and implemented by China Guanghua Science and Technology Foundation and donated 50 air conditioners to Ningnan Middle School in Phisha Town Ningku County Liangshan Prefecture Sichuan Province which solved the problem of high temperature wet and cold learning and living conditions of local middle school students. In order to promote the high-quality development of public health services the Company's subsidiary Zhongke Meiling donated an automated vaccination workstation to the Linhu Community Health Service Center of Hefei Economic Development Zone through the Hefei Red Cross Society realizing the integration of storage and vaccination automatic vaccine issuance with zero errors traceability of vaccination information and more efficient and accurate vaccine management. In addition the Company's subsidiary 95Annual Report 2024 Zhongke Meiling supports the development of university education and within the scope of the amount deliberated and approved by its board of directors and shareholders' general meeting it has awarded a total of 800000 yuan of special scholarships in 2024 to 6 universities including Tsinghua University Zhejiang University and Anhui Medical University and has awarded a total of 1.7 million yuan of special scholarships to colleges and universities so far.III. Consolidate and expand the achievements of poverty alleviation and rural revitalization In 2024 the Company unswervingly and fully implements the decisions and arrangements made by the CPC Central Committee and the State Council for rural revitalization actively responds to the call promotes rural revitalization and contributes to rural development. In order to actively respond to the rural revitalization strategy and help fruit farmers expand the sales channels of agricultural products increase income and improve their lives the Company purchased high-quality kiwifruit from rural areas to help and distributes benefits to employees. 96Annual Report 2024 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 Commitm Commitment Implementatio Type/content Date Term ent party n 1. The acquirer shall not engage in refrigerator business or activity which competes or will compete with Valid for Strictly business of Meiling Electrical Appliances or that which long term implemented has interest conflict with Meiling Electrical Appliances. 2. The acquirer promises to apply shareholders’ right on a legal and reasonable manner and shall not take any Valid for Strictly Commitm Sichuan About committed action to limit or affect the normal operation of Meiling long term implemented ents made Changhong and promised in Electric.in Electric Co. order to prevent acquisition Ltd.(hereinaf horizontal 3. For any opportunity to engage in competing business 2007-6-12 report or ter the competition in the the acquirer will advise Meiling Electric in written forequity “Sichuan Acquisitionchange Changhong” Report of Hefei engaging such business or not. If Meiling Electrical report ) Meiling Co. Ltd. Appliances gives no clear written reply as to whether engaging the competing business or not within 20 days Valid for Strictly after receipt of the aforesaid letter it shall be deemed long term implemented that it will not engage in such business. The acquirer will only engage in non-competing business provided that Meiling Electric confirms not to or is deemed to not engage in such non-competing business. 1. It will not engage in such business or activity that competes with or has interest conflict with that of Meiling Electric except for the action taken for sake of Meiling Electric as required by Meiling Electrical Appliances. 2. The Company promises to apply shareholders’ right on a legal and reasonable manner and shall not take any Commitment regarding to action to limit or affect the normal operation of Meiling reducing and Electric Valid for Strictly 2010-6-24 preventing long term implemented competition with 3. In case that Meiling Electric expects on the basis of Meiling Electric its existing business to expand its operation scope into the business which the Company has already operated Commitm the Company agrees to grant priority acquisition right to ent made during the Sichuan Meiling Electric regarding such business if the same non-public Changhong conditions are met provided that the Company is still offer of the controlling shareholder or actual controller of 2010 Meiling Electric 1. Measures will be adopted to prevent continued related transaction with Meiling Electric: as to the related transaction that can not be prevented it will sign Commitment related transaction agreement with Meiling Electricregarding to under the market principles of “equally paid and mutualreducing and benefit” and fairly determined the transaction price standardizing according to the market prevailing standards.Valid for Strictly June 242010 long term implemented related transaction 2. Perform the necessary obligations to make related with Meiling directors and related shareholder abstain from voting Electric according to relevant regulation and observe legal procedure for approving related transaction and information disclosure obligations. 97Annual Report 2024 3. Promise not to hurt legal interests of Meiling Electric and other shareholders through related transaction.Commit to authorized Changhong Air-conditioner and Zhongshan November Valid for Strictly Changhong use “Changhong” trademark and relevant patents for free. 62010 long term implemented 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 such information.The Valid for Strictly Company 3. The directors supervisors senior management and core technicians of January 72011 long term implemented the Company will accept opinions and criticism from the social public and they will not trade the Company’s securities directly or indirectly with any inside information and other illegal methods. The Company promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or material omission and no relevant information will be disclosed during the application for listing without prior content from Shenzhen Stock Exchange. 1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Air-conditioner Sichuan Changhong Valid for Strictly commits upon the completion of equity transfer to continue to lease such long term implemented assets to Changhong Air-conditioner at market price. 2. After completion of this property transfer Sichuan Changhong commits Commitm ent made to manage to prevent new related transaction with Meiling Electric. For in transfer those which can not be prevented Sichuan Changhong commits to Sichuan December of air determine the transaction price based on market accepted methods so as to Changhong 102009 conditioni ensure fairness of related transaction and protection of the interest of ng assets Valid for Strictly Meiling Electric property long term implemented 3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business or activity which competes or will compete with business of Meiling Electric or that which has interest conflict with Meiling Electric Sichuan 1. Based on market conditions and as allowed by laws and rules multiple Changhong measures were adopted adequately to increase shareholding of Meiling Electric Co. Electric so as to demonstrate its firm confidence on the PRC economy and Commitm Ltd.and Meiling Electric with its actual actions maintain sound development of ents of not persons capital market and promote recovery of healthy market Valid for Strictly to acting in July 92015 long term implemented reducing concert 2. Continued to support operation and development of listed company as the shares CHANGHO NG (HK) always and promoted the achievement of Meiling Electric. It is committed TRADING 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 management of China Securities Commitm Regulatory Commission and the Shenzhen Stock Exchange.ent made Make commitments that the Company will publicly clarify in time after during the The December Valid for Strictly knowing any information on any public communications media that may non-public Company 122016 long term implemented offer in cause misleading influence on the stock price 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 98Annual Report 2024 indirectly engage in the trading activities of the Company's stock.Perform the commitment promptly or not √ Yes □ No If the commitment is overdue and has not been fulfilled the specific reasons for incomplete Not applicable 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 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 X. 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 24 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 Pan-China Certified Public Accountants LLP Remuneration for domestic accounting firm ( RMB 10000) 175 Continuous life of auditing service for domestic accounting 1 year firm Name of domestic CPA Li Yuanliang Peng Yahui Continuous life of auditing service for domestic CPA Li Yuanliang( 1 year) Peng Yahui (1 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 N/A (if applicable) Name of foreign CPA (if applicable) N/A Continuous life of auditing service for foreign CPA (if - applicable) 99Annual Report 2024 (ii)Has the CPAs been changed in the current period √Yes □ No Whether to hire a new accounting firm during the audit period □ Yes √ No Has the approval process been followed for changing accounting firms √ Yes □ No Detailed explanation of the situation of changing the appointment or accounting firm Given that Xinyong Zhonghe Certified Public Accountants has provided auditing services for the company for consecutive years in accordance with the relevant requirements of the "Management Measures for the Selection and Engagement of Accounting Firms by State-owned Enterprises and Listed Companies" issued by the Ministry of Finance the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities Regulatory Commission in order to maintain the independence objectivity and fairness of the company's auditing work after the company's public bidding process Tianjian has been appointed as the auditing institution for the company's 2024 financial reports and internal control.A detailed explanation of the change of employment and accounting firm √Applicable □Not applicable In reporting period Pan-China Certified Public Accountants LLP was appointed as audit institute of internal control for the Company auditing charge for internal control amounting as 300000 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 Whe ther to Implementat Amount Litigatio Litigation(arbi form ion of Disclo Disclo involved (Ten n(arbitra tration)trial Basic situation of litigation(arbitration) esti litigation(ar sure sure thousand tion)pro results and mate bitration)jud date index yuan) gress impact d gments liabil ities Zhiyijia an affiliated enterprise of the The court company signed a sales contract with the ordered the Jucha The defendant o defendant Tianjin Pengsheng Logistics Co.judgmen Tianjin Dece Websi Ltd. (hereinafter referred to as "Tianjin t of the Pengsheng to mber te Pengsheng"). After the contract was signed (www.first immediately 2420 Zhiyijia the plaintiff supplied the goods to pay the Under 22 cninfo 9617.43 No instance Tianjin Pengsheng the defendant as agreed plaintiff RMB execution Octob .com.c has but Tianjin Pengsheng the defendant failed 96174308.42 er n)(202 come and the 2020 2-101 to fulfill the payment obligation to Zhiyijia as into corresponding 23 and agreed. As of November 30 2022 according effect. liquidated 2023-to statistics Tianjin Pengsheng the defendant damages for 057） still owed Zhiyijia a payment of RMB overdue 100Annual Report 2024 96174308.42. Based on this Zhiyijia the payment and plaintiff brought a lawsuit against Tianjin bear the related Pengsheng the defendant to the People's litigation costs Court of Mianyang High-tech Industrial and property Development Zone and requested the court to preservation order Tianjin Pengsheng to immediately pay guarantee the plaintiff RMB 96174308.42 and the fees.corresponding liquidated damages for overdue payment and bear the related litigation costs and property preservation guarantee fees.he court ordered the defendant Meiling Group a subsidiary of the Company Twenty- Gome signed a sales contract with Gome Electrical Appliances Co. Ltd. (hereinafter referred to two Electrical as "Gome"). After the contract was signed cases Appliances Meiling Group the plaintiff fulfilled the have Co. Ltd. to supply obligation according to the contract been immediately while Gome and its affiliated companies the decided pay the Jucha defendant failed to fulfill the payment in the plaintiff o obligation to Meiling Group according to the Some cases contract. According to statistics the defendant first Meiling Websihave come Gome and its affiliated companies owe instance Group RMB Octob te into effect Meiling Group RMB 9841267.21 for 14 5483519.01 er (www. 1086.01 No and are purchase payment and RMB 1018820.55 for cases and the 2020 cninfo liquidated damages for overdue payment under have corresponding 23 .com.c totaling RMB 10860087.76. Based on this implementat come liquidated n)(202 the plaintiff Meiling Group filed a lawsuit ion.into damages for 3-058 against the defendant Gome and its affiliatedcompanies in the People's Court of Hefei effect overdue ） High-tech Industry Development Zone. It and 8 payment and requested the court to order the defendant cases bear the Gome to immediately pay the plaintiff are relevant Meiling Group the purchase payment and the under litigation costs liquidated damages for overdue payment appeal. and property totaling RMB 10860087.76.preservation guarantee fees.Part Accumulated amount of other litigation that of it does not meet the disclosure standard of major 13582.72 - - - - - litigation is a note Note: An estimated liability of 1.6527 million yuan will be confirmed in 2024. For specific details please refer to the relevant content of "43. Estimated Liabilities" in "V. Annotations to Key Items in Consolidated Financial Statements" of "Section 10 Financial Report" in this 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.XII. Penalty and rectification □Applicable√Not applicable During the reporting period the Company had no Penalty and rectification. 101Annual Report 2024 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. 102Annual Report 2024 XIV. Major related party transaction (i) Related party transaction with routine operation concerned √ Applicable □ Not applicable Trading Related Related Whether Type of Proportion limit Content of transaction transaction over the Available Seri Relations related Pricing in similar approved Clearing form for Related party related price (in 10 amount (in approved similar market Date of disclosure Index of disclosure al hip transacti principle transaction (in 10 related transaction transaction thousand 10 thousand limited or price on s (%) thousand Yuan) Yuan) Not (Y/N) Yuan) Pressure December Juchao Website Sichuan Controllin Commo regulator 52023December （www.cninfo.com.cn） integrated 222023March No.:2023-0662023-0672 Changhong g dity circuit Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 1 9529.65 9529.65 0.39% 23000 No - Electric Co. sharehold purchase transistors price acceptance 262024 August 17 072024-0082024-01420 steel plate 2024 October 24-0242024-042024-04 Ltd. er d plastic parts 112024 October 22024-0442024-046202 etc 302024. 4-0472024-0492024-60.December Juchao Website Sichuan Controllin Commo 52023December （www.cninfo.com.cn） Changhong 222023March No.:2023-0662023-0672 g dity Steel plate Electronics Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 2 and plastic 246940.12 246940.12 10.22% 293800 No - Holding sharehold purchase acceptance 262024 August 17 072024-0082024-01420 particles etc price Group Co. 2024 October 24-0242024-042024-04 er d Ltd. 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. Other enterprise control December Juchao Website Changhong Commo 52023December （www.cninfo.com.cn） under the 222023March No.:2023-0662023-0672 Huayi dity same Compressor Marketing Spot exchange Bank 302024 April 023-0682023-0802024-03 56726.83 56726.83 2.35% 80000 No - Compressor purchase Energy price acceptance 262024 August 17 072024-0082024-01420 controllin 2024 October 24-0242024-042024-04 Co. Ltd. d g 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. sharehold er and 103Annual Report 2024 ultimate controller Other enterprise control Sichuan under the December Juchao Website Commo 52023December （www.cninfo.com.cn） Changhong same Components 222023March No.:2023-0662023-0672 dity plastic parts 4 Mold Plastic controllin Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 and lining 109355.07 109355.07 4.52% 130000 No - purchase price acceptance 262024 August 17 072024-0082024-01420 Tech. Co. g accessories 2024 October 24-0242024-042024-04 d etc.Ltd. sharehold 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. er and ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Commo Changhong same Base plate 222023March No.:2023-0662023-0672 dity assembly Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 5 controllin 65751.66 65751.66 2.72% 65000 No - Jijia Fine Co. purchase black plate price acceptance 262024 August 17 072024-0082024-01420 g bracket etc. 2024 October 24-0242024-042024-04 Ltd. d sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Sichuan December Juchao Websitecontrol 52023December （www.cninfo.com.cn） Changhong under the Commo Packing 222023March No.:2023-0662023-0672 Package same dity boxes foam Marketing Spot exchange Bank 302024 April 023-0682023-0802024-06 14933.66 14933.66 0.62% 20000 No - controllin purchase fixed support price acceptance 262024 August 17 072024-0082024-01420 Printing Co.g d block etc. 2024 October 24-0242024-042024-04 Ltd. 112024 October sharehold 22024-0442024-046202 302024.4-0472024-0492024-60. er and ultimate 104Annual Report 2024 controller Other enterprise Sichuan control Printed board December Juchao Website Changhong under the 52023December （www.cninfo.com.cn） Commo machine 222023March No.:2023-0662023-0672 Precision same dity insertion Marketing Spot exchange Bank 302024 April 023-0682023-0802024-07 controllin 3122.63 3122.63 0.13% 4000 No - Electronics purchase price acceptance 262024 August 17 072024-0082024-01420 g machine paste d 2024 October 24-0242024-042024-04Tech. Co. sharehold assembly 112024 October 22024-0442024-046202 Ltd. er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Sichuan under the Commo 222023March No.:2023-0662023-0672 Changhong same dity Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 8 International controllin Foods 3.31 3.31 0.0001% 5000 No - purchase price acceptance 262024 August 17 072024-0082024-01420Hotel Co. g d 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024.4-0472024-0492024-60. ultimate controller Other enterprise control December Juchao Website Guangdong under the 52023December （www.cninfo.com.cn） Commo same 222023March No.:2023-0662023-0672Changhong Foam and dity Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 9 controllin 1080.41 1080.41 0.04% 6000 No - Electronics purchase carton price acceptance 262024 August 17 072024-0082024-01420 g d 2024 October 24-0242024-042024-04Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Sichuan Other December Juchao Website Changhong enterprise Commo 52023December （www.cninfo.com.cn） Intelligence control dity Outside cover Marketing 222023March No.:2023-0662023-0672 10 0.49 0.49 0.00002% 5000 No Cash settlement - Manufacturin under the purchase parts price 302024 April 023-0682023-0802024-0 g Technology same d 262024 August 17 072024-0082024-01420 Co. Ltd. 2024 October controllin 24-0242024-042024-04 105Annual Report 2024 g 112024 October 22024-0442024-046202 sharehold 302024. 4-0472024-0492024-60.er and ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan Commosame 222023March No.:2023-0662023-0672 Hongwei dity Electric Marketing 302024 April 023-0682023-0802024-0 11 controllin 33.49 33.49 0.0014% 6000 No Cash settlement - Technology purchase products price 262024 August 17 072024-0082024-01420 Co. Ltd g d 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Sichuan control December Juchao Website under the 52023December （www.cninfo.com.cn） Changhong Commo same 222023March No.:2023-0662023-0672 New Energy dity Batteries Marketing Spot exchange Bank 302024 April 023-0682023-0802024-012 controllin 80.08 80.08 0.0033% 5000 No - purchase price acceptance 262024 August 17 072024-0082024-01420 Technology g d 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Sichuan control December Juchao Website under the Refrigerator 52023December （www.cninfo.com.cn） Zhiyijia Commo same Washing 222023March No.:2023-0662023-0672 Network dity machine Marketing 302024 April 023-0682023-0802024-013 controllin 604.42 604.42 0.03% 6000 No Cash settlement - purchase Air price 262024 August 17 072024-0082024-01420 Technology g d conditioner 2024 October 24-0242024-042024-04 Co. Ltd. sharehold LCD TV 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller 106Annual Report 2024 Other enterprise Changhong control December Juchao Website under the 52023December （www.cninfo.com.cn） International Commo same 222023March No.:2023-0662023-0672 Holdings dity TV Air Marketing 302024 April 023-0682023-0802024-014 controllin 1952.84 1952.84 0.08% 16000 No Cash settlement - purchase conditioner price 262024 August 17 072024-0082024-01420 (Hong Kong) g d 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Commo Changhong same 222023March No.:2023-0662023-0672 dity Marketing 302024 April 023-0682023-0802024-0 15 Device controllin Printed board 501.45 501.45 0.02% 6000 No Bank acceptance - purchase price 262024 August 17 072024-0082024-01420 Technology g d 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Remote Sichuan control controls December Juchao Website under the switching 52023December （www.cninfo.com.cn） Changhong Commo same transformers 222023March No.:2023-0662023-0672 Electronic dity Marketing Spot exchange Bank 302024 April 023-0682023-0802024-016 controllin printed 2433.07 2433.07 0.10% 5000 No - purchase price acceptance 262024 August 17 072024-0082024-01420 Products Co. g boards d 2024 October 24-0242024-042024-04 Ltd. sharehold electronic 112024 October 22024-0442024-046202 er and components 302024. 4-0472024-0492024-60.ultimate etc.controller Other December Juchao Website Sichuan Commoenterprise 52023December （www.cninfo.com.cn） Jiahong dity Marketing 222023March No.:2023-0662023-0672 17 control Foods 0.99 0.99 0.00004% 5000 No Cash settlement - Industrial purchase price 302024 April 023-0682023-0802024-0 Co. Ltd under the d 262024 August 17 072024-0082024-01420 same 2024 October 24-0242024-042024-04 107Annual Report 2024 controllin 112024 October 22024-0442024-046202 g 302024. 4-0472024-0492024-60.sharehold er and ultimate controller Other enterprise Sichuan control December Juchao Website under the Internet 52023December （www.cninfo.com.cn） Ailian same Commo access 222023March No.:2023-0662023-0672 Science & dity modules Marketing Spot exchange Bank 302024 April 023-0682023-0802024-018 controllin 1230.76 1230.76 0.05% 3000 No - purchase electronic price acceptance 262024 August 17 072024-0082024-01420 Technology g d components 2024 October 24-0242024-042024-04 Co. Ltd. sharehold etc 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Sichuan control December Juchao Website under the 52023December （www.cninfo.com.cn） Aichuang Commo same Inverter 222023March No.:2023-0662023-0672 Science & dity Marketing Spot exchange Bank 302024 April 023-0682023-0802024-019 controllin integrated 15558.82 15558.82 0.64% 30000 No - purchase price acceptance 262024 August 17 072024-0082024-01420 Technology g board d 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Sichuan under the Accept 222023March No.:2023-0662023-0672Hongmofang Information same Marketing 302024 April 023-0682023-0802024-0 20 Network labor technology 0.60 0.60 0.0003% 7500 No Cash settlement - controllin price 262024 August 17 072024-0082024-01420Technology service Service g 2024 October 24-0242024-042024-04Co. Ltd. 112024 October sharehold 22024-0442024-046202 302024.4-0472024-0492024-60. er and ultimate 108Annual Report 2024 controller Other enterprise control December Juchao Website Inverter under the 52023December （www.cninfo.com.cn） Commo integrated Sichuan Aoku same 222023March No.:2023-0662023-0672 dity board ， Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 21 Technology controllin 2576.51 2576.51 0.11% 8000 No - purchase Electronic price acceptance 262024 August 17 072024-0082024-01420 Co. Ltd. g d control 2024 October 24-0242024-042024-04 sharehold 112024 October components 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller December Juchao Website Sichuan Controllin 52023December （www.cninfo.com.cn） Changhong g Shuttle Accept 222023March No.:2023-0662023-0672 Electronics sharehold transportation Marketing 302024 April 023-0682023-0802024-0 22 labor 244.74 244.74 0.12% 293800 No Cash settlement - Holding er and fee training price 262024 August 17 072024-0082024-01420 Group Co. service ultimate fee 2024 October 24-0242024-042024-04 Ltd. 112024 October controller 22024-0442024-046202 302024.4-0472024-0492024-60. Software usage fee December Juchao Website Sichuan information 52023December （www.cninfo.com.cn） Controllin Changhong Accept consultation 222023March No.:2023-0662023-0672 g Marketing 302024 April 023-0682023-0802024-0 23 labor fee 2938.39 2938.39 1.39% 7500 No Cash settlement - Electric Co. sharehold price 262024 August 17 072024-0082024-01420 service inspection er 2024 October 24-0242024-042024-04Ltd. and 112024 October 22024-0442024-046202 certification 302024. 4-0472024-0492024-60.fee Other enterprise Sichuan Transportatio December Juchao Websitecontrol n costs 52023December （www.cninfo.com.cn） Changhong under the Accept storage and 222023March No.:2023-0662023-0672 Minsheng same handling Marketing 302024 April 023-0682023-0802024-024 labor 69060.46 69060.46 32.78% 75000 No Cash settlement - controllin charges price 262024 August 17 072024-0082024-01420 Logistics Co. service g freight and 2024 October 24-0242024-042024-04 Ltd. miscellaneous 112024 October sharehold 22024-0442024-046202 charges etc. 302024. 4-0472024-0492024-60.er and ultimate 109Annual Report 2024 controller Other enterprise Sichuan control December Juchao Website under the Commission 52023December （www.cninfo.com.cn） Changhong same Accept processing 222023March No.:2023-0662023-0672 Mold Plastic Marketing Spot exchange Bank 302024 April 023-0682023-0802024-025 controllin labor fee，Change 4184.02 4184.02 1.99% 10000 No -price acceptance 262024 August 17 072024-0082024-01420 Tech. Co. g service the mold 2024 October 24-0242024-042024-04 Ltd. sharehold service 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Three Sichuan control December Juchao Websitepackages under the 52023December （www.cninfo.com.cn） Service Exp. equipment same Accept 222023March No.:2023-0662023-0672 Appliance repair Marketing 302024 April 023-0682023-0802024-026 controllin labor 38897.03 38897.03 18.46% 51000 No Cash settlement - miscellaneous price 262024 August 17 072024-0082024-01420 Service Chain g service fees 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October installation 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.fee etc.ultimate controller Other enterprise Software control usage fee December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） service Hongxin same Accept 222023March No.:2023-0662023-0672 supporting fee Marketing 302024 April 023-0682023-0802024-027 controllin labor 198.21 198.21 0.09% 7500 No Cash settlement - Software Co. price 262024 August 17 072024-0082024-01420 g service and 2024 October 24-0242024-042024-04 Ltd. sharehold information 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.service fee ultimate controller Guangdong Other Service December Juchao Website Accept support fee 52023December （www.cninfo.com.cn） Changhong enterprise Marketing 28 labor network 30.69 30.69 0.01% 7500 No Cash settlement - 222023March No.:2023-0662023-0672 control price Electrics Co. service service fee 302024 April 023-0682023-0802024-0 under the etc. 262024 August 17 072024-0082024-01420 110Annual Report 2024 Ltd. same 2024 October 24-0242024-042024-04 controllin 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. g sharehold er and ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Jiahong same Accept Meals 222023March No.:2023-0662023-0672 property Marketing 302024 April 023-0682023-0802024-0 29 controllin labor 705.35 705.35 0.33% 5000 No Cash settlement - Industrial management price 262024 August 17 072024-0082024-01420 g service fees etc. 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Sichuan control December Juchao Website under the 52023December （www.cninfo.com.cn） Changhong Meetings fee same Accept 222023March No.:2023-0662023-0672 International accommodati Marketing 302024 April 023-0682023-0802024-030 controllin labor 130.63 130.63 0.06% 5000 No Cash settlement -on，Travel price 262024 August 17 072024-0082024-01420Hotel Co. g service service 2024 October 24-0242024-042024-04 sharehold Ltd. 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other Sichuan enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Changhong Property under the Accept 222023March No.:2023-0662023-0672 31 Property same labor management Marketing 302024 April 023-0682023-0802024-0 11.24 11.24 0.01% 5000 No Cash settlement - price 262024 August 17 072024-0082024-01420 Services Co. controllin service fees 2024 October 24-0242024-042024-04 Ltd. g 112024 October 22024-0442024-046202 sharehold 302024. 4-0472024-0492024-60.er and 111Annual Report 2024 ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same Accept 222023March No.:2023-0662023-0672 Hongwei Training Marketing 302024 April 023-0682023-0802024-0 32 controllin labor 279.20 279.20 0.13% 7500 No Cash settlement - Technology services price 262024 August 17 072024-0082024-01420 Co. Ltd. g service 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise Sichuan control December Juchao Website under the 52023December （www.cninfo.com.cn） Zhiyijia Design same Accept 222023March No.:2023-0662023-0672 Network service fee Marketing 302024 April 023-0682023-0802024-033 controllin labor 10.55 10.55 0.0050% 7500 No Cash settlement - and platform price 262024 August 17 072024-0082024-01420 Technology g service usage fee 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn）Sichuan 222023March No.:2023-0662023-0672 Changhong same Accept Network Marketing 302024 April 023-0682023-0802024-0 34 Network controllin labor maintenance 0.85 0.85 0.0004% 7500 No Cash settlement - price 262024 August 17 072024-0082024-01420Technology g service services 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Miianyang An Accept Hith-Tech Enterprise Transportatio Marketing 35 labor 129.31 129.31 0.06% 200 No Cash settlement Hongfu in which n service price Technology the service 112Annual Report 2024 Co. Ltd. supervisor of the controllin g sharehold er acts as its legal representa tive Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same Accept 222023March No.:2023-0662023-0672 Changhong Commission Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 36 controllin labor 451.37 451.37 0.21% 3000 No - Jijia Fine Co. processing fee price acceptance 262024 August 17 072024-0082024-01420 g service Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan 52023December （www.cninfo.com.cn） Changhong under the same Accept 222023March No.:2023-0662023-0672Gerun Environmenta Marketing 302024 April 023-0682023-0802024-0 37 Environment controllin labor l protection 11.87 11.87 0.01% 5000 No Cash settlement - price 262024 August 17 072024-0082024-01420al protection g service service 2024 October 24-0242024-042024-04 Technology sharehold 112024 October 22024-0442024-046202 Co. Ltd.er and 302024. 4-0472024-0492024-60.ultimate controller Other December Juchao Website enterprise 52023December （www.cninfo.com.cn） Sichuan control Accept 222023March No.:2023-0662023-0672Changhong under the Network Marketing 302024 April 023-0682023-0802024-0 38 Network labor 3.05 3.05 0.00% 7500 No Cash settlement - same Maintenance price 262024 August 17 072024-0082024-01420Technology service controllin 2024 October 24-0242024-042024-04Co. Ltd. 112024 October g 22024-0442024-046202 302024.4-0472024-0492024-60. sharehold 113Annual Report 2024 er and ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Sichuan under the 222023March No.:2023-0662023-0672 Changhong same Accept Labor Marketing 302024 April 023-0682023-0802024-0 39 Electronic controllin labor 3.41 3.41 0.00% 7500 No Cash settlement - serves price 262024 August 17 072024-0082024-01420Products Co. g service 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024.4-0472024-0492024-60. ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） under the Technical Sichuan 222023March No.:2023-0662023-0672 same Accept service Aichuang Marketing 302024 April 023-0682023-0802024-0 40 controllin labor warehouse 62.07 62.07 0.03% 5000 No Cash settlement - Technology price 262024 August 17 072024-0082024-01420g service management Co. Ltd. 2024 October 24-0242024-042024-04 sharehold service 112024 October 22024-0442024-046202 er and 302024.4-0472024-0492024-60. ultimate controller Other enterprise Technology control development December Juchao Website under the service fee 52023December （www.cninfo.com.cn） Sichuan same Accept instrument 222023March No.:2023-0662023-0672 Qiruike Marketing 302024 April 023-0682023-0802024-0 41 controllin labor repair fee 903.72 903.72 0.43% 5000 No Cash settlement - Technology price 262024 August 17 072024-0082024-01420 g service inspection Co. Ltd. 2024 October 24-0242024-042024-04 sharehold and 112024 October 22024-0442024-046202 er and certification 302024. 4-0472024-0492024-60.ultimate fee etc.controller Other December Juchao Website Sichuan enterprise 52023December （www.cninfo.com.cn） Changhong Accept control Labor Marketing 222023March No.:2023-0662023-0672 42 Device labor 22.11 22.11 0.01% 7500 No Cash settlement - under the serves price 302024 April 023-0682023-0802024-0Technology service same 262024 August 17 072024-0082024-01420 Co. Ltd controllin 2024 October 24-0242024-042024-04 114Annual Report 2024 g 112024 October 22024-0442024-046202 sharehold 302024. 4-0472024-0492024-60.er and ultimate controller December Juchao Website Air 52023December （www.cninfo.com.cn） Sichuan Controllin conditioner 222023March No.:2023-0662023-0672 Changhong g Sales of Kitchen and Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 43 121.69 121.69 0.0043% 1000 No - Electric Co. sharehold goods bathroom price acceptance 262024 August 17 072024-0082024-01420 Ltd. er small 2024 October 24-0242024-042024-04 112024 October appliances 22024-0442024-046202 302024.4-0472024-0492024-60. December Juchao Website Sichuan Controllin 52023December （www.cninfo.com.cn） Changhong g Kitchen and 222023March No.:2023-0662023-0672 Electronics sharehold Sales of bathroom Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 44 14.67 14.67 0.0005% 3000 No - Holding er and goods small price acceptance 262024 August 17 072024-0082024-01420 Group Co. ultimate appliances 2024 October 24-0242024-042024-04 Ltd. 112024 October controller 22024-0442024-046202 302024.4-0472024-0492024-60. Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same Kitchen and 222023March No.:2023-0662023-0672 Changhong Sales of bathroom Marketing 302024 April 023-0682023-0802024-0 45 controllin 1.09 1.09 0.00004% 3000 No Cash settlement - Jijia Fine Co. goods small price 262024 August 17 072024-0082024-01420 Ltd. g appliances 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn）Sichuan 222023March No.:2023-0662023-0672 Changhong under the Sales of Plastic Marketing 302024 April 023-0682023-0802024-0 46 Mold same 17.23 17.23 0.0006% 3000 No Cash settlement - goods pressure parts price 262024 August 17 072024-0082024-01420 Technology controllin 2024 October 24-0242024-042024-04 Co. Ltd. g 112024 October 22024-0442024-046202 sharehold 302024. 4-0472024-0492024-60.er and 115Annual Report 2024 ultimate controller Other enterprise Sichuan control Washing December Juchao Website under the machine 52023December （www.cninfo.com.cn） Zhiyijia same Refrigerator 222023March No.:2023-0662023-0672 Network Sales of Marketing Spot exchange Bank 302024 April 023-0682023-0802024-047 controllin freezer Air 734224.78 734224.78 25.91% 880000 No - goods price acceptance 262024 August 17 072024-0082024-01420 Technology g conditioner 2024 October 24-0242024-042024-04 Co. Ltd. sharehold small 112024 October 22024-0442024-046202 er and appliances 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same 222023March No.:2023-0662023-0672Smart socket Hongwei Sales of Marketing 302024 April 023-0682023-0802024-0 48 controllin smart switch 0.16 0.16 0.00001% 3000 No Cash settlement - Technology goods price 262024 August 17 072024-0082024-01420etc Co. Ltd. g 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Sichuan under the Air-conditioni 222023March No.:2023-0662023-0672 Changhong same Sales of ng Energy Marketing 302024 April 023-0682023-0802024-0 49 Device controllin 95.13 95.13 0.0034% 3000 No Cash settlement - Technology g goods Compressed price 262024 August 17 072024-0082024-01420 air 2024 October 24-0242024-042024-04 Co. Ltd sharehold 112024 October 22024-0442024-046202 er and 302024.4-0472024-0492024-60. ultimate controller Other Sichuan December Juchao Website enterprise Air 52023December （www.cninfo.com.cn） Changhong Sales of Marketing 50 control conditioner 177.14 177.14 0.01% 3000 No Cash settlement - 222023March No.:2023-0662023-0672 goods price Minsheng under the Refrigerator 302024 April 023-0682023-0802024-0 same 262024 August 17 072024-0082024-01420 116Annual Report 2024 Logistics Co. controllin 2024 October 24-0242024-042024-04 g 112024 October 22024-0442024-046202Ltd. 302024.4-0472024-0492024-60. sharehold er and ultimate controller Other enterprise Sichuan control December Juchao WebsiteAir under the 52023December （www.cninfo.com.cn） Service Exp. conditioners same 222023March No.:2023-0662023-0672inverter 51 Appliance Sales of Marketing 302024 April 023-0682023-0802024-0 controllin integrated 616.30 616.30 0.02% 3000 No Cash settlement - goods 262024 August 17 072024-0082024-01420 Service Chain g boards price 2024 October 24-0242024-042024-04 sharehold components Co. Ltd. 112024 October 22024-0442024-046202etc.er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the Waste copper 52023December （www.cninfo.com.cn）Changhong Gerun same waste wire 222023March No.:2023-0662023-0672 Sales of harness Marketing 302024 April 023-0682023-0802024-0 52 Environment controllin 98.43 98.43 0.0035% 3000 No Cash settlement - goods waste price 262024 August 17 072024-0082024-01420al protection g packaging 2024 October 24-0242024-042024-04 Technology sharehold paper bag 112024 October 22024-0442024-046202 Co. Ltd.er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Sichuan under the 222023March No.:2023-0662023-0672 Changhong same Sales of Kitchen smal Marketing 302024 April 023-0682023-0802024-0 53 2.39 2.39 0.0001% 3000 No Cash settlement - Real Estate controllin goods l appliances price 262024 August 17 072024-0082024-01420 Co. Ltd. g 2024 October 24-0242024-042024-04 112024 October sharehold 22024-0442024-046202 302024.4-0472024-0492024-60. er and ultimate 117Annual Report 2024 controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn）Sichuan 222023March No.:2023-0662023-0672 Changhong same Sales of Air Marketing 302024 April 023-0682023-0802024-0 54 Network controllin 7.54 7.54 0.0003% 3000 No Cash settlement - goods conditioner 262024 August 17 072024-0082024-01420 Technology price g 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn）Printed board Sichuan Aoku same 222023March No.:2023-0662023-0672components Sales of Marketing 302024 April 023-0682023-0802024-0 55 Technology controllin small home 25.52 25.52 0.0009% 3000 No Cash settlement - goods price 262024 August 17 072024-0082024-01420 Co. Ltd. g appliances 2024 October 24-0242024-042024-04 sharehold etc 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same 222023March No.:2023-0662023-0672 Changhong Sales of Kitchen smal Marketing 302024 April 023-0682023-0802024-0 56 controllin 0.75 0.75 0.00003% 3000 No Cash settlement - Source Co. goods l appliances price 262024 August 17 072024-0082024-01420 g Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller December Juchao Website Sichuan Other 52023December （www.cninfo.com.cn） Ailian enterprise Sales of Electric Marketing 57 10.54 10.54 0.0004% 3000 No Cash settlement - 222023March No.:2023-0662023-0672 Technology control goods device price 302024 April 023-0682023-0802024-0 Co. Ltd. under the 262024 August 17 072024-0082024-01420 118Annual Report 2024 same 2024 October 24-0242024-042024-04 controllin 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. g sharehold er and ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） same 222023March No.:2023-0662023-0672Changhong Sales of Air Marketing 302024 April 023-0682023-0802024-0 58 New Energy controllin 98.75 98.75 0.0035% 3000 No Cash settlement - goods conditioner price 262024 August 17 072024-0082024-01420Technology g 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website 52023December （www.cninfo.com.cn） Sichuan under the 222023March No.:2023-0662023-0672 Changhong same Sales of Kitchen smal Marketing 302024 April 023-0682023-0802024-0 59 International controllin 0.11 0.11 0.000004% 3000 No Cash settlement - l appliances 262024 August 17 072024-0082024-01420 Hotel Co. goods price g 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） PT.CHANGH under the 222023March No.:2023-0662023-0672 ONGELECT Sales of Marketing 302024 April 023-0682023-0802024-0 60 same TV 194.30 194.30 0.01% 3000 No Cash settlement - RICINDONE goods price 262024 August 17 072024-0082024-01420 SIA controllin 2024 October 24-0242024-042024-04 g 112024 October 22024-0442024-046202 sharehold 302024. 4-0472024-0492024-60.er and 119Annual Report 2024 ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） CHANGHO same 222023March No.:2023-0662023-0672Air NG(HK)TRA Sales of Marketing 302024 April 023-0682023-0802024-0 61 controllin conditioner 65382.61 65382.61 2.31% 140000 No Cash settlement - DINGLIMIT goods and part price 262024 August 17 072024-0082024-01420 ED g 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） CHANGHO same Refrigerator 222023March No.:2023-0662023-0672 NGELECTRI Sales of freezers wash Marketing 302024 April 023-0682023-0802024-0 62 controllin 25696.65 25696.65 0.91% 140000 No Cash settlement - C(AUSTRAL goods ing machine price 262024 August 17 072024-0082024-01420 IA)PTY.LTD. g and part 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） same 222023March No.:2023-0662023-0672 OrionPDPCo. Sales of Marketing 302024 April 023-0682023-0802024-0 63 controllin Refrigerator 4062.24 4062.24 0.14% 6500 No Cash settlement - Ltd goods price 262024 August 17 072024-0082024-01420 g 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other December Changhong Juchao Website Sales of Marketing 52023December 64 Europe enterprise Refrigerator 9553.85 9553.85 0.34% 12000 No Cash settlement - （www.cninfo.com.cn） 222023March Electrics.r.o goods price control No.:2023-0662023-0672302024 April 120Annual Report 2024 under the 262024 August 17 023-0682023-0802024-0 same 2024 October 072024-0082024-01420 112024 October 24-0242024-042024-04 controllin 302024.22024-0442024-046202 g 4-0472024-0492024-60. sharehold er and ultimate controller Other enterprise control December Juchao Website Changhong under the Refrigerator 52023December （www.cninfo.com.cn） International same freezers Air 222023March No.:2023-0662023-0672 Sales of Marketing 302024 April 023-0682023-0802024-0 65 Holdings controllin conditioner 17436.75 17436.75 0.62% 30000 No Cash settlement - goods price 262024 August 17 072024-0082024-01420 (Hong Kong) g kitchen 2024 October 24-0242024-042024-04 Co. Ltd. sharehold utensils 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Mianyang same 222023March No.:2023-0662023-0672 Hongshang Sales of Kitchen smal Marketing 302024 April 023-0682023-0802024-0 66 controllin 1.58832 1.59 0.0001% 3000 No Cash settlement - Real Estate goods l appliances price 262024 August 17 072024-0082024-01420 Co. Ltd. g 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other December Juchao Website enterprise Sichuan 52023December （www.cninfo.com.cn） control Aichuang 222023March No.:2023-0662023-0672 under the Sales of Kitchen smal Marketing 302024 April 023-0682023-0802024-0 67 Science & 2.26 2.26 0.00% 3000 No Cash settlement - same goods l appliances price 262024 August 17 072024-0082024-01420 Technology controllin 2024 October 24-0242024-042024-04 Co. Ltd. 112024 October g 22024-0442024-046202 302024.4-0472024-0492024-60. sharehold 121Annual Report 2024 er and ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Yuanxin same 222023March No.:2023-0662023-0672 Financial Sales of Air Marketing 302024 April 023-0682023-0802024-0 68 controllin 256.85 256.85 0.01% 3000 No Cash settlement - Leasing Co. goods conditioner price 262024 August 17 072024-0082024-01420 Ltd. g 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website 52023December （www.cninfo.com.cn） Mianyang under the same 222023March No.:2023-0662023-0672Huafeng Sales of Air Marketing 302024 April 023-0682023-0802024-0 69 Hulian controllin 790.27 790.27 0.03% 3000 No Cash settlement - goods conditioner price 262024 August 17 072024-0082024-01420Technology g 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Changhong same 222023March No.:2023-0662023-0672 Jiahua Sales of Air Marketing 302024 April 023-0682023-0802024-0 70 controllin 43.24 43.24 0.0015% 3000 No Cash settlement - Information goods conditioner price 262024 August 17 072024-0082024-01420 Product Co. g 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Sichuan Controllin Providin Labour Marketing December Juchao Website71 0.59 0.59 0.01% 3000 No Cash settlement - g g service price 52023December （www.cninfo.com.cn） 122Annual Report 2024 Changhong sharehold services 222023March No.:2023-0662023-0672 er and 302024 April 023-0682023-0802024-0Electronics 262024 August 17 072024-0082024-01420 ultimate Holding 2024 October 24-0242024-042024-04 controller 112024 October 22024-0442024-046202 Group Co. 302024.4-0472024-0492024-60. Ltd.Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn）Property Changhong same Providin 222023March No.:2023-0662023-0672management Marketing 302024 April 023-0682023-0802024-0 72 Mold Plastic controllin g services 409.98 409.98 5.82% 10000 No Cash settlement - price 262024 August 17 072024-0082024-01420 Tech. Co. g services warehousing 2024 October 24-0242024-042024-04 Ltd. sharehold services etc 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan Property same Providin 222023March No.:2023-0662023-0672management Changhong Marketing Spot exchange Bank 302024 April 023-0682023-0802024-0 73 controllin g services 45.60 45.60 0.65% 3000 No - Jijia Fine Co. price acceptance 262024 August 17 072024-0082024-01420 g services warehousing Ltd. 2024 October 24-0242024-042024-04 sharehold services etc 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control Sichuan 52023December （www.cninfo.com.cn） under the Aichuang Providin 222023March No.:2023-0662023-0672 same Marketing 302024 April 023-0682023-0802024-0 74 Science & g Labor service 95.59 95.59 1.36% 3000 No Cash settlement - controllin price 262024 August 17 072024-0082024-01420 Technology services g 2024 October 24-0242024-042024-04 Co. Ltd. 112024 October sharehold 22024-0442024-046202 302024.4-0472024-0492024-60. er and ultimate 123Annual Report 2024 controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same Providin 222023March No.:2023-0662023-0672 Huafeng Marketing 302024 April 023-0682023-0802024-0 75 controllin g Labor service -1.12 -1.12 -0.02% 3000 No Cash settlement - Technology price 262024 August 17 072024-0082024-01420 Co. Ltd. g services 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Zhiyijia same Providin 222023March No.:2023-0662023-0672 Service fee Marketing 302024 April 023-0682023-0802024-076 Network controllin g 10.14 10.14 0.14% 7500 No Cash settlement - price 262024 August 17 072024-0082024-01420 Technology g services 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller December Juchao Website 52023December （www.cninfo.com.cn） Sichuan Controllin Providin 222023March No.:2023-0662023-0672 Changhong g Marketing 302024 April 023-0682023-0802024-0 77 g Labor service 757.74 757.74 10.76% 7500 No Cash settlement - Electric Co. sharehold price 262024 August 17 072024-0082024-01420 services Ltd. er 2024 October 24-0242024-042024-04 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. Other December Juchao Website enterprise Sichuan 52023December （www.cninfo.com.cn） control Changhong Providin 222023March No.:2023-0662023-0672 under the Technical Marketing 302024 April 023-0682023-0802024-0 78 Device g 55.28 55.28 0.78% 7500 No Cash settlement - same service fee price 262024 August 17 072024-0082024-01420 Technology services controllin 2024 October 24-0242024-042024-04 Co. Ltd. 112024 October g 22024-0442024-046202 302024.4-0472024-0492024-60. sharehold 124Annual Report 2024 er and ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn）Sichuan same Providin 222023March No.:2023-0662023-0672Changhong Installation Marketing 302024 April 023-0682023-0802024-0 79 New Energy controllin g 66.06 66.06 0.94% 3000 No Cash settlement - service 262024 August 17 072024-0082024-01420 Technology price g services 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） same Providin Installation 222023March No.:2023-0662023-0672Changhong service Marketing 302024 April 023-0682023-0802024-0 80 Network controllin g 17.35 17.35 0.25% 7500 No Cash settlement - maintenance Technology price 262024 August 17 072024-0082024-01420 g services service 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn）Mianyang same Providin Technical 222023March No.:2023-0662023-0672Huafeng service Marketing 302024 April 023-0682023-0802024-0 81 Hulian controllin g 1072.41 1072.41 15.23% 3000 No Cash settlement - Repair price 262024 August 17 072024-0082024-01420Technology g services Service 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Changhong Other Providin Marketing December Juchao Website 82 Labor service 139.65 139.65 1.98% 200 No Cash settlement - Huayi enterprise g price 52023December （www.cninfo.com.cn） 125Annual Report 2024 Compressor control services 222023March No.:2023-0662023-0672 Co. Ltd. under the 302024 April 023-0682023-0802024-0 262024 August 17 072024-0082024-01420 same 2024 October 24-0242024-042024-04 controllin 112024 October 22024-0442024-046202 g 302024. 4-0472024-0492024-60.sharehold er and ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Changhong same Providin maintenance 222023March No.:2023-0662023-0672 service Marketing 302024 April 023-0682023-0802024-0 83 Minsheng controllin g 13.66 13.66 0.19% 7500 No Cash settlement - Property price 262024 August 17 072024-0082024-01420 Logistics Co. g services Management 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Ailian same Providin 222023March No.:2023-0662023-0672 Marketing 302024 April 023-0682023-0802024-0 84 Science & controllin g Warehouse 0.32 0.32 0.0046% 3000 No Cash settlement - price 262024 August 17 072024-0082024-01420 Technology g services 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other December Juchao Website enterprise 52023December （www.cninfo.com.cn）Sichuan 222023March No.:2023-0662023-0672 Changhong control Providin Marketing 302024 April 023-0682023-0802024-0 85 Xinwang under the g Labor service -10.14 -10.14 -0.14% 7500 No Cash settlement - price 262024 August 17 072024-0082024-01420Technology same services 2024 October 24-0242024-042024-04 Co. Ltd. controllin 112024 October 22024-0442024-046202 g 302024. 4-0472024-0492024-60. 126Annual Report 2024 sharehold er and ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Service Exp. same Providin 222023March No.:2023-0662023-0672 Marketing 302024 April 023-0682023-0802024-0 86 Appliance controllin g Labor service 146.39 146.39 2.08% 7500 No Cash settlement - price 262024 August 17 072024-0082024-01420 Service Chain g services 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan Aoku same Providin 222023March No.:2023-0662023-0672 Marketing 302024 April 023-0682023-0802024-0 87 Technology controllin g Labor service 7.79 7.79 0.11% 3000 No Cash settlement - price 262024 August 17 072024-0082024-01420 Co. Ltd. g services 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Changhong same Providin 222023March No.:2023-0662023-0672 Maintenance Marketing 302024 April 023-0682023-0802024-0 88 International controllin g 4.29 4.29 0.06% 3000 No Cash settlement - service price 262024 August 17 072024-0082024-01420 Hotel Co. g services 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller 89 Sichuan Other Providin Property Marketing 10.14 10.14 0.14% 7500 No Cash settlement - December Juchao Website 127Annual Report 2024 Changhong enterprise g Management price 52023December （www.cninfo.com.cn） International control services 222023March No.:2023-0662023-0672 Holding 302024 April under the 023-0682023-0802024-0（HK）Co. 262024 August 17 072024-0082024-01420 same Ltd. 2024 October 24-0242024-042024-04 controllin 112024 October 22024-0442024-046202 g 302024. 4-0472024-0492024-60.sharehold er and ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Sichuan under the 222023March No.:2023-0662023-0672 Changhong same Provide Package Marketing 302024 April 023-0682023-0802024-0 90 Electronic controllin 0.36 0.36 0.01% 7500 No Cash settlement - labor service Products Co. g price 262024 August 17 072024-0082024-01420 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024.4-0472024-0492024-60. ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same Providin 222023March No.:2023-0662023-0672 Qiruike Marketing 302024 April 023-0682023-0802024-0 91 controllin g Labor service 0.14 0.14 0.0021% 3000 No Cash settlement - Technology price 262024 August 17 072024-0082024-01420 g services Co. Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other December Juchao Website enterprise 52023December （www.cninfo.com.cn） Yuanxin control Providin 222023March No.:2023-0662023-0672 Financial under the Consulting Marketing 302024 April 023-0682023-0802024-0 92 g 57.00 57.00 0.81% 7500 No Cash settlement - Leasing Co. same service price 262024 August 17 072024-0082024-01420 Ltd. services controllin 2024 October 24-0242024-042024-04 112024 October g 22024-0442024-046202 302024.4-0472024-0492024-60. sharehold 128Annual Report 2024 er and ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Changhong same Providin 222023March No.:2023-0662023-0672 Technical Marketing 302024 April 023-0682023-0802024-0 93 Property controllin g 21.40 21.40 0.30% 3000 No Cash settlement - service fee price 262024 August 17 072024-0082024-01420 Service Co. g services 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn）Changhong same Providin 222023March No.:2023-0662023-0672Jiechuang Installation Marketing 302024 April 023-0682023-0802024-0 94 Lithium controllin g service Labor 5.39 5.39 0.08% 3000 No Cash settlement - price 262024 August 17 072024-0082024-01420Battery g services service 2024 October 24-0242024-042024-04 Technology sharehold 112024 October 22024-0442024-046202 Co. Ltd.er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Changhong same Providin Air 222023March No.:2023-0662023-0672 Education conditioning Marketing 302024 April 023-0682023-0802024-0 95 controllin g 0.90 0.90 0.01% 3000 No Cash settlement - and maintenance price 262024 August 17 072024-0082024-01420 Technology g services service 2024 October 24-0242024-042024-04 Co. Ltd sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Sichuan Other Rent to Warehouse Marketing December Juchao Website 96 0.96 0.96 0.02% 3000 No Cash settlement - Aichuang enterprise the for rent price 52023December （www.cninfo.com.cn） 129Annual Report 2024 Technology control related 222023March No.:2023-0662023-0672 Co. Ltd. under the party 302024 April 023-0682023-0802024-0 262024 August 17 072024-0082024-01420 same 2024 October 24-0242024-042024-04 controllin 112024 October 22024-0442024-046202 g 302024. 4-0472024-0492024-60.sharehold er and ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Rent to Sichuan Aoku same 222023March No.:2023-0662023-0672 the Warehouse Marketing 302024 April 023-0682023-0802024-0 97 Technology controllin 0.97 0.97 0.02% 3000 No Cash settlement - related for rent price 262024 August 17 072024-0082024-01420 Co. Ltd. g party 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Rent to Service Exp. same 222023March No.:2023-0662023-0672 the Rental Marketing 302024 April 023-0682023-0802024-0 98 Appliance controllin 44.66 44.66 0.75% 4000 No Cash settlement - related apartment price 262024 August 17 072024-0082024-01420 Service Chain g party 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other December Juchao Website enterprise 52023December （www.cninfo.com.cn） Sichuan Rent to control 222023March No.:2023-0662023-0672 Qiruik the Lease of Marketing 302024 April 023-0682023-0802024-0 99 under the 4.73 4.73 0.08% 3000 No Cash settlement - Technology related factory price 262024 August 17 072024-0082024-01420 same Co. Ltd. party 2024 October 24-0242024-042024-04 controllin 112024 October 22024-0442024-046202 g 302024. 4-0472024-0492024-60. 130Annual Report 2024 sharehold er and ultimate controller December Juchao Website 52023December （www.cninfo.com.cn） Sichuan Controllin Rent to Lease of 222023March No.:2023-0662023-0672 Changhong g the Marketing 302024 April 023-0682023-0802024-0 100 factory 84.40 84.40 1.42% 4000 No Cash settlement - Electric Co. sharehold related price 262024 August 17 072024-0082024-01420 equipment Ltd. er party 2024 October 24-0242024-042024-04 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. Other enterprise control December Juchao Website under the Rental 52023December （www.cninfo.com.cn） Sichuan Rent to same apartment 222023March No.:2023-0662023-0672 Changhong the Marketing 302024 April 023-0682023-0802024-0 101 controllin warehousespl 696.97 696.97 11.73% 4000 No Cash settlement - Jijia Fine Co. related price 262024 August 17 072024-0082024-01420 g antsequipme Ltd. party 2024 October 24-0242024-042024-04 sharehold nt 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller December Juchao Website Sichuan Controllin 52023December （www.cninfo.com.cn） Changhong g Lease 222023March No.:2023-0662023-0672 Education sharehold from Lease of Marketing 302024 April 023-0682023-0802024-0 102 1.73 1.73 0.03% 3000 No Cash settlement - and er and related factory price 262024 August 17 072024-0082024-01420 Technology ultimate parties 2024 October 24-0242024-042024-04 Co. Ltd1 controller 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. Other enterprise December Juchao Website Sichuan control 52023December （www.cninfo.com.cn） Changhong Rent to under the 222023March No.:2023-0662023-0672 Precision the Rental Marketing 302024 April 023-0682023-0802024-0 103 same 84.59 84.59 1.42% 4000 No Cash settlement - Electronics related apartment price 262024 August 17 072024-0082024-01420 controllin Tech. Co. party 2024 October 24-0242024-042024-04 g 112024 October Ltd. 22024-0442024-046202 sharehold 302024. 4-0472024-0492024-60.er and 131Annual Report 2024 ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Rent to Changhong same Rental 222023March No.:2023-0662023-0672 the Marketing 302024 April 023-0682023-0802024-0 104 Minsheng controllin apartment 47.56 47.56 0.80% 4000 No Cash settlement - related price 262024 August 17 072024-0082024-01420 Logistics Co. g office factory party 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control Serviced December Juchao Website Sichuan under the apartment 52023December （www.cninfo.com.cn） Rent to Changhong same warehouse 222023March No.:2023-0662023-0672 the Marketing 302024 April 023-0682023-0802024-0 105 Mold Plastic controllin workshop 1826.96 1826.96 30.74% 4000 No Cash settlement - related price 262024 August 17 072024-0082024-01420 Tech. Co. g equipment party 2024 October 24-0242024-042024-04 Ltd. sharehold and living 112024 October 22024-0442024-046202 er and quarters 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Rent to Changhong same 222023March No.:2023-0662023-0672 the Lease of Marketing 302024 April 023-0682023-0802024-0 106 Device controllin 128.60 128.60 2.16% 4000 No Cash settlement - related factory price 262024 August 17 072024-0082024-01420 Technology g party 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Sichuan Other Rent to December Juchao Website Rental Marketing 52023December 107 Zhiyijia enterprise the 18.83 18.83 0.32% 4000 No Cash settlement - （www.cninfo.com.cn） apartment price 222023March Network control related No.:2023-0662023-0672302024 April 132Annual Report 2024 Technology under the party 262024 August 17 023-0682023-0802024-0 Co. Ltd. same 2024 October 072024-0082024-01420 112024 October 24-0242024-042024-04 controllin 302024.22024-0442024-046202 g 4-0472024-0492024-60. sharehold er and ultimate controller Other enterprise control December Juchao Website Chengdu under the 52023December （www.cninfo.com.cn） Leasing Changhong same 222023March No.:2023-0662023-0672 from Marketing 302024 April 023-0682023-0802024-0 108 Electronic controllin Leasing office 69.14 69.14 1.16% 4000 No Cash settlement - related price 262024 August 17 072024-0082024-01420 Technology g party 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Guangdong Leasing same Lease of staff 222023March No.:2023-0662023-0672 Changhong from Marketing 302024 April 023-0682023-0802024-0 109 controllin dormitory 12.28 12.28 0.21% 4000 No Cash settlement - Electrics Co. related price 262024 August 17 072024-0082024-01420 g plant Ltd. party 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other December Juchao Website enterprise 52023December （www.cninfo.com.cn） Sichuan control Leasing 222023March No.:2023-0662023-0672 Jiahong under the from Lease of staff Marketing 302024 April 023-0682023-0802024-0 110 55.24 55.24 0.93% 5000 No Cash settlement - Industrial same related dormitory price 262024 August 17 072024-0082024-01420 Co. Ltd. controllin party 2024 October 24-0242024-042024-04 112024 October g 22024-0442024-046202 302024.4-0472024-0492024-60. sharehold 133Annual Report 2024 er and ultimate controller December Juchao Website 52023December （www.cninfo.com.cn） Sichuan Controllin Leasing 222023March No.:2023-0662023-0672 Lease of Changhong g from Marketing 302024 April 023-0682023-0802024-0 111 laboratory 401.97 401.97 6.76% 4000 No Cash settlement - Electric Co. sharehold related price 262024 August 17 072024-0082024-01420and workshop Ltd. er party 2024 October 24-0242024-042024-04 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. December Juchao Website Sichuan Controllin 52023December （www.cninfo.com.cn） Changhong g Leasing 222023March No.:2023-0662023-0672 Electronics sharehold from Marketing 302024 April 023-0682023-0802024-0 112 Rental stores 19.51 19.51 0.33% 293800 No Cash settlement - Holding er and related price 262024 August 17 072024-0082024-01420 Group Co. ultimate party 2024 October 24-0242024-042024-04 Ltd. 112024 October controller 22024-0442024-046202 302024.4-0472024-0492024-60. Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Rent to Zhiyijia same 222023March No.:2023-0662023-0672 the Marketing 302024 April 023-0682023-0802024-0 113 Network controllin Rental office 0.50 0.50 0.01% 4000 No Cash settlement - related price 262024 August 17 072024-0082024-01420 Technology g party 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise December Juchao Website control 52023December （www.cninfo.com.cn） Changhong under the Rent to 222023March No.:2023-0662023-0672 Huayi same the Lease of staff Marketing 302024 April 023-0682023-0802024-0 114 11.48 11.48 0.19% 80000 No Cash settlement - Compression controllin related dormitory price 262024 August 17 072024-0082024-01420 Co. Ltd. g party 2024 October 24-0242024-042024-04 112024 October sharehold 22024-0442024-046202 302024.4-0472024-0492024-60. er and ultimate 134Annual Report 2024 controller Other enterprise control December Juchao Website Sichuan Purchase under the 52023December （www.cninfo.com.cn） Changhong and same 222023March No.:2023-0662023-0672Line body Intelligent construc Marketing 302024 April 023-0682023-0802024-0 115 controllin transformatio 35.24 35.24 0.07% 500 No Cash settlement - Manufacturin tion of price 262024 August 17 072024-0082024-01420n g Technology g fixed 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October assets 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller December Juchao Website 52023December （www.cninfo.com.cn） Sichuan Controllin Leasing 222023March No.:2023-0662023-0672 Laboratory Changhong g from Marketing 302024 April 023-0682023-0802024-0 116 infrastructure 95.26 95.26 0.20% 3000 No Cash settlement - Electric Co. sharehold related price 262024 August 17 072024-0082024-01420construction Ltd. er party 2024 October 24-0242024-042024-04 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Zhiyijia same Purchase 222023March No.:2023-0662023-0672 Marketing 302024 April 023-0682023-0802024-0 117 Network controllin of fixed TV 7.88 7.88 0.02% 3000 No Cash settlement - price 262024 August 17 072024-0082024-01420 Technology g assets 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other December Juchao Website enterprise 52023December （www.cninfo.com.cn） Sichuan control Purchase 222023March No.:2023-0662023-0672 Hongwei under the Data center Marketing 302024 April 023-0682023-0802024-0 118 of fixed 28.10 28.10 0.06% 3000 No Cash settlement - Technology same large screen price 262024 August 17 072024-0082024-01420 Co. Ltd. assets controllin 2024 October 24-0242024-042024-04 112024 October g 22024-0442024-046202 302024.4-0472024-0492024-60. sharehold 135Annual Report 2024 er and ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） 081 same Purchase 222023March No.:2023-0662023-0672Archives Electronics Marketing 302024 April 023-0682023-0802024-0 119 controllin of fixed room 18.46 18.46 0.04% 3000 No Cash settlement - Group Co. 262024 August 17 072024-0082024-01420 g assets equipment price Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same 222023March No.:2023-0662023-0672Purchase Qiruik Marketing 302024 April 023-0682023-0802024-0 120 controllin Intangibl Equipment 14.69 14.69 0.03% 5000 No Cash settlement - Technology price 262024 August 17 072024-0082024-01420 g e assets Co. Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same 222023March No.:2023-0662023-0672Purchase Hongxin Information Marketing 302024 April 023-0682023-0802024-0 121 controllin Intangibl 67.92 67.92 0.14% 3000 No Cash settlement - Software Co. management price 262024 August 17 072024-0082024-01420 g e assets Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Sichuan Other Purchase Data center Marketing December Juchao Website 122 155.19 155.19 0.32% 3000 No Cash settlement - Hongxin enterprise Intangibl large screen price 52023December （www.cninfo.com.cn） 136Annual Report 2024 Software Co. control e assets 222023March No.:2023-0662023-0672 Ltd. under the 302024 April 023-0682023-0802024-0 262024 August 17 072024-0082024-01420 same 2024 October 24-0242024-042024-04 controllin 112024 October 22024-0442024-046202 g 302024. 4-0472024-0492024-60.sharehold er and ultimate controller December Juchao Website 52023December （www.cninfo.com.cn） Sichuan Controllin 222023March No.:2023-0662023-0672 Sales of Changhong g Marketing 302024 April 023-0682023-0802024-0 123 Fixed Equipment 176.16 176.16 35.83% 3000 No Cash settlement - Electric Co. sharehold price 262024 August 17 072024-0082024-01420assets Ltd. er 2024 October 24-0242024-042024-04 112024 October 22024-0442024-046202 302024.4-0472024-0492024-60. Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Sichuan same 222023March No.:2023-0662023-0672Sales of Qiruik Marketing 302024 April 023-0682023-0802024-0 124 controllin Fixed Equipment 35.90 35.90 7.30% 3000 No Cash settlement - Technology price 262024 August 17 072024-0082024-01420 g assets Co. Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn）Guangyuan 222023March No.:2023-0662023-0672 Changhong same Sales of Marketing 302024 April 023-0682023-0802024-0 125 Electric controllin Fixed Equipment 8.36 8.36 1.70% 3000 No Cash settlement - price 262024 August 17 072024-0082024-01420Technology g assets 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller 137Annual Report 2024 Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn）Sichuan same 222023March No.:2023-0662023-0672Service Exp. Sales of Marketing 302024 April 023-0682023-0802024-0 126 Appliance controllin Fixed Equipment 1.45 1.45 0.29% 3000 No Cash settlement - price 262024 August 17 072024-0082024-01420Service Chain g assets 2024 October 24-0242024-042024-04 Co. Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website Sichuan under the 52023December （www.cninfo.com.cn） Changhong same 222023March No.:2023-0662023-0672Sales of Marketing 302024 April 023-0682023-0802024-0 127 Mold Plastic controllin Fixed Equipment 5.81 5.81 1.18% 3000 No Cash settlement - assets price 262024 August 17 072024-0082024-01420 Tech. Co. g 2024 October 24-0242024-042024-04 Ltd. sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Other enterprise control December Juchao Website under the 52023December （www.cninfo.com.cn） Yuanxin Financin same 222023March No.:2023-0662023-0672Financing Financial Marketing 302024 April 023-0682023-0802024-0 128 controllin g 149852.72 149852.72 209000 No Cash settlement - Leasing Co. business price 262024 August 17 072024-0082024-01420 g business Ltd. 2024 October 24-0242024-042024-04 sharehold 112024 October 22024-0442024-046202 er and 302024. 4-0472024-0492024-60.ultimate controller Total -- -- 1666569.0 -- 2127700 -- -- -- -- -- 9 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 from transactions which were projected about their total Sichuan Changhong and its subsidiary by the Company for year of 2024 was 2690 million yuan at most (tax-excluded) actually 2092.9895 million yuan occurred in 138Annual Report 2024 amount by types during the reporting period (if reporting period. It is estimated that the amount of related-party transactions of the company's purchase of goods from Sichuan Changhong Jijia Fine Co. Ltd. in 2024 applicable) will not exceed 650 million yuan although the actual amount incurred during the reporting period was 657.5166 million yuan. and the actual total amount of routine related party transactions between the Company and Sichuan Changhong and its subsidiaries (including Changhong Jijia 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". 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 2024 was 802 million yuan at most (tax-excluded) actually 568.7796 million yuan occurred in reporting period. 3. It is estimated that the related transaction amount resulted by purchasing or selling equipment software maintenance and spare parts and molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2024 was 30 million yuan at most (tax-excluded) actually 5.6459 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 2024 was 10660 million yuan at most (tax-excluded) actually 8538.2845 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 2024 was 40 million yuan at most (tax-excluded) actually 34.1645 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 2024 was 750 million yuan at most (tax-excluded) actually 690.6046 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 2024 was 510 million yuan at most actually 388.9703 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 2024 was 205 million yuan at most (tax-excluded) actually 96.3535 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 2024 was 95 million yuan at most (tax-excluded) actually 64.2243 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 2024 was 3403 million yuan at most (tax-excluded) actually 2685.8539 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 for year of 2024 was 2090 million yuan at most actually 1498.5272 million yuan occurred in reporting period.Reasons for major differences between trading price Not applicable and market reference price (if applicable) Note: According to the Shenzhen Stock Exchange's "Listing Rules" and the company's "Authorization Management System" and other relevant regulations related party transactions between the company and related parties with an amount less than 3 million yuan (including 3 million yuan) shall be implemented with the approval of the company's president. Therefore during the reporting period the related-party transactions between the company and its related party Mianyang High-tech Zone Hongfu Technology Co. Ltd. were within 3 million yuan and has been approved by the company's president. 139Annual Report 2024 (ii) Related transactions by assets acquisition and sold √ Applicable □Not applicable Apprais ed Carryin value of g value Transfe Gain/lo assets of assets rred Settlem ss on Date of Related Relati Prici transfer Index of Type Contents transferr price ent trading( disclos party onship ng red disclosure ed (10000 terms 10000 ure (10000 (10000 yuan) yuan) yuan) yuan) (if any) The Company acquired 99% Related- Sichuan Contr equity of Hefei mar party Juchao Website Changhong olling Changhong ket 37128. 37128. October equity 23255 Cash - www.cninfo.com.Electric shareh Industry Co. Ltd. pric 29 29 122024 acquisiti cn （2024-048） Co.Ltd. older held by Sichuan e on Changhong Electric Co.Ltd.Other enterp rises Hefei Meiling IOT contro Technology Co.lled by Ltd. a the wholly-owned Sichuan same Related- subsidiary of the mar Changhong contro party Company Juchao Website ket October Venture lling equity acquired 1% 234.9 375.03 375.03 Cash - www.cninfo.com.pric 122024 Capital Co. shareh acquisiti equity of Hefei cn （2024-048） e Ltd. older on Industry held by and Sichuan ultima Changhong te Venture Capital contro Co. Ltd.lling party Reasons for major differences between transferred price Not applicable and carrying value or appraised value (if any) This transaction is in line with the Company's strategic planning and development direction solves the problems of industrial development and resource shortage and meets the needs of capacity expansion of medium and high-end refrigerators expansion of its own logistics Impact on operation result and financial status warehouse and integrated layout of home appliances and homes. The transaction funds come from the Company's own funds. At present as the Company has abundant funds the transaction funds will not cause cash flow shortage to the Company nor will it affect the funds required for the Company's normal production and operation.Performance during the reporting period if relevant Not applicable trading involves a performance covenant (iii) Related party transaction of joint foreign investment □Applicable √ Not applicable No such cases in the reporting period.(iv) Connect of related liability and debt 140Annual Report 2024 √ 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 rate range withdrawn in the (10 thousand thousand yuan) Period (10 yuan) Period (10 yuan) thousand yuan) thousand yuan) Sichuan Other enterprises Changhong controlled by the Group same controlling 450000.00 0.42%-2.35% 426145.85 5957451.79 5935746.83 447850.81 Finance Co. shareholder and Ltd. 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 - Finance Co. Ltd. controlling shareholder note issuance 300000.00 87879.85 and ultimate controller Other enterprises Sichuan Changhong Group controlled by the same Other financial services - Finance Co. Ltd. controlling shareholder note discounting 300000.00 40984.06 and ultimate controller Other enterprises Sichuan Changhong Group controlled by the same Other financial services - Finance Co. Ltd. controlling shareholder note discounting 100000.00 97.72 and ultimate controller Note 1: The Company's subsidiary Zhongke Meiling is a listed company on the Beijing Stock Exchange and its dealings with financial companies with related relationships are detailed in the "2024 Annual Report" of Zhongke Meiling.Note 2: As of December 312024 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 3: 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 servicescooperation between the Company and Changhong Finance Company and renew the “Financial ServiceAgreement” 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 No such cases in the reporting period.(vii) Other related party transactions √ Applicable □ Not applicable 1.On March 282024 and April 25 2024 it was reviewed and approved by the 42nd meeting of the Tenth 141Annual Report 2024 Board of Directors and the 30th meeting of the Tenth Board of Supervisors and it was agreed that the amount of daily related transactions between the Company and its subsidiaries and Changhong Group and its subsidiaries on purchase of commodities and raw materials in 2024 should not exceed RMB 1138. million (excluding tax);After this increase estimation the Company and its subsidiaries expect that the total amount of daily related-party transactions with Changhong Group such as in purchasing goods accepting labor services and renting will not exceed RMB 2938 million (excluding tax) in 2024. 2. On August 15 2024 after deliberation and approval at the second meeting of the 11th board of directors and the second meeting of the 11th board of supervisors of the Company it’s agreed that the Company will increase the amount of routine related party transactions such as financial leasing commercial factoring and bill financing between the Company and its subsidiaries and Yuanxin Financial Leasing Co. Ltd. in 2024 not exceeding 290 million yuan (excluding tax). After the increase the amount of routine related party transactions such as financial leasing commercial factoring and bill financing between the Company and its subsidiaries and Yuanxin Financial Leasing Co. Ltd. in 2024 is expected to not exceed RMB 10.9 billion (excluding tax). 3. On October 11 2024 and October 29 2024 after deliberated and approved in the third meeting of the 11th board of directors the third meeting of the 11th board of supervisors and the second extraordinary general meeting of shareholders in 2024 it’s agreed that the Company will increase the amount of routine related party transactions such as accepting or providing services labor services financial leasing commercial factoring and bill financing between the Company and its subsidiaries and Sichuan Changhong and its subsidiaries in 2024not exceeding 1025000000 yuan (excluding tax). Among them it’s expected that in 2024 the amount of routine related party transactions between the Company and its subsidiaries and Sichuan Changhong and its subsidiaries such as accepting or providing services and labor services will not exceed RMB 25 million (excluding tax); It’s expected that in 2024 the amount of routine related party transactions such as financial leasing commercial factoring and bill financing between the Company and its subsidiaries and Yuanxin Financial Leasing Co. Ltd. a wholly-owned subsidiary of Sichuan Changhong will not exceed 10 billion yuan (excluding tax). After this increase the Company and its subsidiaries are expected to conduct a total of no more than RMB16975000000(excluding tax) in total routinerelated party transactions with Sichuan Changhong and its subsidiaries (excluding Changhong Huayi Compressor Co. Ltd.) in 2024. 4. On November 4 2024 after the deliberation and approval of the fifth meeting of the 11th board of directors and the fifth meeting of the 11th board of supervisors of the Company it’s agreed to extend the duration of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership (Limited Partnership) for 1 year (the specific expiration date is subject to industrial and commercial registration) (hereinafter referred to as "Hongyun Fund Phase I") that is the cumulative duration of the fund after this extension is 10 years and it’s agreed that the Company and other partners will sign the " Amendment to the Partnership Agreement of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership (Limited Partnership). 5. On December 11 and December 27 2024 after deliberated and approved in the eighth meeting of the 11th board of directors the sixth meeting of the 11th board of supervisors and the third extraordinary general meeting 142Annual Report 2024 of shareholders in 2024 it’s agreed that the total amount of routine related party transactions between the Company and its holding subsidiaries and related parties shall not exceed 26168200000 yuan (excluding tax); It’s agreed that in 2025 the Company and Sichuan Changhong Group Finance Co. Ltd. will continue to carry out financial services related transactions such as deposits and loans.Related searches for disclosure website of interim report with major related transaction concerned Interim report Disclosure date Website for disclosure Resolution Notice of the 42ndsession of 10thBOD (2024-007) Resolution Notice of the 30thsession of 10thBOS (2024-008) Announcement on Increasing the Daily March 302024 April 262024 Juchao Website www.cninfo.com.cn Related Party Transactions in 2024 （2024-014） Announcement of the Resolution of the general meeting of 2023 (2024-024) Resolution Notice of the 2ndsession of 11thBOD (2024-041) Resolution Notice of the 2nd session of 11thBOS (2024-042) August 172024 Juchao Website www.cninfo.com.cn Announcement on Increasing the Daily Related Party Transactions in 2024 （2024-044） Resolution Notice of the 3rdsession of 11thBOD (2024-046) Resolution Notice of the 3rd session of 11thBOS (2024-047) Announcement on Increasing the Daily October 112024 Juchao Website www.cninfo.com.cn Related Party Transactions in 2024 （2024-049） Announcement of the Resolution of the Second Extraordinary general meeting of 2024(2024-060) Resolution Notice of the 5thsession of 11thBOD (2024-061) Resolution Notice of the 5th session of 11thBOS (2024-0462) Announcement on Extension and Related Transactions of Sichuan November 52024 Juchao Website www.cninfo.com.cn Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership). (2024-063) 143Annual Report 2024 Resolution Notice of the 6thsession of 11thBOD (2024-067) Resolution Notice of the 6th session of 11thBOS (2024-068) Announcement on Increasing the Daily Related Party Transactions in 2025 （2024-069） December 122024December 28 2024 Juchao Website www.cninfo.com.cn Announcement on the expected continued related party transactions with Sichuan Changhong Group Finance Co. Ltd. in 2025（2024-070） Announcement of the Resolution of the Third Extraordinary general meeting of 2024(2024-076) 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 Note For the operational leasing of the company please refer to "investment real estate" "fixed assets" "use assets" "use assets" "related party lease" and "related party lease" in the notes to the financial statements.Project which generates profit or loss reaching over 10% of total profits of the Company during the Reporting Period □ Applicable √ Not applicable There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period. 144Annual Report 2024 (ii) Major guarantee √ Applicable □ Not applicable 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 period (A4) 0 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) Announcement No.: 2021-0912021-092202 1-0962021-109 Joint liability 140000.00 October 112022 15000.00 Yes 1 year Yes No released on December guaranty 72021 and December 242021 Joint liability April 72023 6000.00 Yes 1 year Yes No guaranty Joint liability Zhongshan April 242023 10000.00 Yes 1 year Yes No guaranty Changhong Electric Announcement No.: Joint liability Co. Ltd. 2022-0872022-088 June 82023 10000.00 Yes 1 year Yes No guaranty 2022-091 and 2022-100 Joint liability 150000.00 June 272023 7000.00 Yes 1 year Yes No released on December guaranty 72022 and December Joint liability June 4 2023 10000.00 Yes 1 year Yes No 232022 guaranty Joint liability July 102023 20000.00 Yes 1 year Yes No guaranty Joint liability July 282023 5000.00 Yes 1 year Yes No guaranty 145Annual Report 2024 Joint liability August 292023 15000.00 Yes 1 year Yes No guaranty Joint liability November 22023 5000.00 Yes 1 year Yes No guaranty Announcement No.: 2023-0662023-067202 3-0702023-080 130000.00------- released on December 52023 and December 222023 Announcement No.: 2021-0912021-092202 1-0962021-109 released on December Joint liability 7 16000.00 December 820222 3500.00 guaranty Yes 11.2 months Yes No 2021 December 242021December 242021 Changhong Meiling Announcement No.: Ridian Technology 2022-0872022-088202 Co. Ltd. 2-0912022-100 Joint liability 16000.00 July 102023 4000.00 guaranty Yes 1 year Yes No released on December 72022 December 23 2022 Announcement No.: 2023-0662023-067202 Joint liability 3-07 2023-080 released 14500.00 March 192024 3500.00 guaranty Yes 10.7 months No No on December 52023 December 22 2023 Announcement No.: Zhongke Meiling 2023-0662023-067202 Cryogenic 3-0702023-80 released on December 10000.00 - - - - - - - Technology Co.Ltd. 5 2023 December 22 2023 Joint liability Announcement No.: January 172023 10000.00 guaranty Yes 9 months Yes No 2022-0872022-088202 Joint liability Sichuan Changhong 2-0912022-100 January 172023 5000.00 guaranty Yes 1 year Yes No Air-conditioner Co. released on December 250000.00 Joint liability Ltd. 7 2022 December 23 February 272023 16000.00 guaranty Yes 1 year Yes No 2022 March 162023 30000.00 Joint liability Yes 1 year Yes No 146Annual Report 2024 guaranty Joint liability March 242023 60000.00 guaranty Yes 1 year Yes No Joint liability April 142023 12000.00 guaranty Yes 1 year Yes No Joint liability July 52023 1500.00 guaranty Yes 5.4 months Yes No Announcement No.: 2023-0662023-067202 3-0702023-080 262000.00------- released on December 52023 December 22 2023 Announcement No.: 2024-0202024-021202 Joint liability 4-0232024-036 60000.00 September 272024 60000.00 guaranty Yes 6.4 months No No released on April 20 2024 June 192024 Announcement No.: 2024-0672024-068202 4-0712024-076 61800.00------- released on December 12 2024 December 282024 Announcement No.: 2023-0662023-067202 3-0702023-080 15000.00------- released on December 5 2023 December 22 Jiangxi Meiling 2023 Electric Appliance Co. Ltd. Announcement No.: 2024-0672024-068202 4-0712024-076 10000.00------- released on December 12 2024 December 28 2024 Announcement No.: Hefei Meiling 2023-0662023-067202 Nonferrous Metal 3-0702023-080 3000.00 - - - - - - - Products Co. Ltd. released on December 5 2023 December 22 147Annual Report 2024 2023 Announcement No.: 2022-0872022-088202 Joint liability May 112023 4500.00 Yes 1 year Yes No 2-0912022-100 guaranty 60000.00 released on December 7 2022 December 23 Joint liability July 122023 8000.00 Yes 1 year Yes No 2022 guaranty Announcement No.: 2023-0662023-067202 Hefei Meiling 3-0702023-080 Joint liability Group Holdings 25000.00 November 62024 20000.00 Yes 1 year No No released on December guaranty Limited 5 2023 December 22 2023 Announcement No.: 2023-0662023-067202 3-0702023-080 released on December 70000.00 5 2023 December 22 2023。 Announcement No.: 2021-0912021-092202 1-096 and 2021-109 Joint liability 35000.00 November 212022 5000.00 Yes 1 year Yes No released on December guaranty 7 2021 and December 242021 Joint liability March 222023 8000.00 Yes 11 months Yes No guaranty Hefei Changhong Joint liability Meiling Life April 242023 2000.00 Yes 1 year Yes No guaranty Appliances Co. Announcement No.: Ltd. 2022-0872022-088202 Joint liability May 42023 5000.00 Yes 1 year Yes No 2-091 and 2022-100 guaranty 35000.00 released on December Joint liability 7 2022 and December October 192023 2000.00 Yes 1 year Yes No guaranty 232022 Joint liability December 12023 10000.00 Yes 1 year Yes No guaranty Joint liability December 152023 4000.00 Yes 5.7 months Yes No guaranty 148Annual Report 2024 Announcement No.: 2023-040，2023-041， 2023-043，2023-065 8000.00------- released on August 18 2023 November 4 2023。 Announcement No.: 2023-0662023-067202 Joint liability March 62024 5000.00 Yes 8.4 months Yes No 3-0702023-080 50000.00 guaranty released on December 5 2023 December 22 Joint liability 2023 March 262024 8000.00 Yes 1 year No No guaranty Announcement No.: 2023-0662023-067202 3-0702023-080 20000.00------- released on December 5 2024 December 22 2024 Announcement No.: 2023-0662023-067202 Hefei Changhong 3-0702023-080 40000.00------- Industrial Co. Ltd. released on December 5 2024 December 22 2024 Total amount of approving guarantee for subsidiaries in report period Total amount of actual occurred guarantee for subsidiaries in 261800.00390000.00 (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 386300.00101500.00 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) Announcement No.: Joint liability Anhui Touxing 2022-0872022-088202 June 202023 1000.00 1 year Yes No guaranty Technology Co. 2-091 and 2022-100 8000.00 Ltd. released on December Joint liability 7 2022 and December August 152023 400.00 1 year No No guaranty 149Annual Report 2024 232022 Joint liability October 252023 1000.00 1 year Yes No guaranty Announcement No.: 2023-0662023-067202 3-0702023-080 Joint liability 11.5 month 5000.00 July 242024 1000.00 No No released on December guaranty s 5 2023 December 22 2023 Announcement No.: 2023-0662023-067202 3-0702023-080 3000.00------- released on December 5 2024 December 22 2024 Announcement No.: Joint liability 2022-0872022-088202 August 252023 1000.00 1 year Yes No guaranty 2-091 and 2022-100 12000.00 released on December 7 2022 and December Joint liability October 202023 1000.00 1 year Yes No 23 2022 guaranty Announcement No.: 2023-0662023-067202 Anhui Ling'an 3-0702023-080 Joint liability Medical Equipment 10000.00 October 312024 1000.00 1 year No No released on December guaranty Co. Ltd 5 2023 December 22 2023 Announcement No.: 2023-0662023-067202 3-0702023-080 5000.00------- released on December 5 2024 December 22 2024 Announcement No.: Ground Energy 2023-0662023-067202 Heat Pump 3-0702023-080 56500.00------- Tech.(Zhongshan) released on December Co. Ltd. 5 2024 December 22 2024 Total amount of approving guarantee for subsidiaries in report period Total amount of actual occurred guarantee for subsidiaries in 64500.006400.00 (C1) report period (C2) 150Annual Report 2024 Total amount of approved guarantee for subsidiaries at the end of Total balance of actual guarantee for subsidiaries at the end of 87500.002400.00 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) 326300.00 396400.00 (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 473800.00103900.00 (A3+B3+C3) (A4+B4+C4) Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 17.07% 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) 78000 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) 78000 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 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 there were no external guarantees for the Company and its subsidiaries but there were guarantees from the Company to its subsidiaries or from such subsidiaries to their subsidiaries.By the end of the reporting period the total approved amount of the Company's guarantee provided to its subsidiaries and the guarantee provided by such subsidiaries to their subsidiaries was RMB 4738 million the actual amount was RMB 3964 million and the actual guarantee balance was RMB 1039 million accounting for 17.07% of the Company's latest net assets.Explanation on guarantee with composite way: Not applicable 151Annual Report 2024 (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 1215000.00 0 0 0 products Total 1215000.00 0 0 0 Details of the single major amount or high-risk trust investment with low security poor fluidity √ Applicable □ Not applicable 152Annual Report 2024 In RMB 10000 Amount of Anticipat reserve Refere Actual Whether Whether Summary of Trustee ed Actual for Sour Criteria for nce collected approved has entrust the items and institution Trustee Product income gains/los devaluati Amount ce of Start date Expiry date Capital investment purpose fixing annual gains/los by legal finance related query (or name of type type (if ses in on of funds reward rate of ses in procedur plan in the index (if trustee) applicabl period withdraw return period e (Y/N) future applicable) e) ing (if applicabl e) This product is a RMB structured deposit product with embedded financial derivatives.Banks invest the raised structured deposit funds in bank time deposits and at the same time invest in China Principal financial derivative transactions (including but not Not Juchao Website Everbright -guarante Idle January April1620 limited to derivative transactions such as options appl Not (www.cninfo.c Bank Co. Bank ed with 30000.00 own Agreement 2.60% 195.00 195.00 N/A Yes 162024 24 and swaps) in domestic or international financial icab applicable om.cn)(2024-0 Ltd. Hefei floating funds Branch income markets within the upper limit of the income of le 01) such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products.This product is a RMB structured deposit product with embedded financial derivatives.Banks invest the raised structured deposit funds in bank time deposits and at the same time invest in China Principal financial derivative transactions (including but not Juchao Website Everbright -guarante Idle NotJanuary April1820 limited to derivative transactions such as options Not （www.cninfo.Bank Co. Bank ed with 5000.00 own Agreement 2.60% applicabl 32.50 32.50 N/A Yes 182024 24 and swaps) in domestic or international financial e applicable com.cn)(2024-Ltd. Hefei floating funds Branch income markets within the upper limit of the income of 002) such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. 153Annual Report 2024 Bank of Communications operates the funds raised by structured deposit products in a unified manner and manages them in accordance with the principle of separating basic deposits from Zhongshan Principal derivative transactions. The raised principal will Not branch of Juchao Website -guarante Idle March292 May Bank of be included in the internal fund of Bank of appl Not (www.cninfo.c Bank ed with 3000.00 own Agreement 2.35% 12.17 12.17 N/A Yes 024312024 Communicat Communications for unified operation and icab applicable om.cn)floating funds (2024-017） ions Co. Ltd income management and will be included in the payment le scope of deposit reserve fund and deposit insurance. The embedded derivative part of products will be linked to the exchange rate interest rate commodity and index etc This deposit product is a RMB capital-guaranteed Principal Industrial non-fixed income product and the product income Not -guarante Idle Bank Co. May August is divided into two parts: fixed income and appl Not Bank ed with 15000.00 own Agreement 2.65% 100.19 100.19 N/A Yes - Ltd. Hefei 272024 272024 non-fixed income in which the non-fixed income icab applicable floating funds Branch income is associated with the fluctuation of the observed le target.This deposit product is a RMB capital-guaranteed Principal Industrial non-fixed income product and the product income Not -guarante Idle Bank Co. May August is divided into two parts: fixed income and appl Not Bank ed with 5000.00 own Agreement 2.65% 33.40 33.40 N/A Yes - Ltd. Hefei 272024 282024 non-fixed income in which the non-fixed income icab applicable floating funds Branch income is associated with the fluctuation of the observed le target.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou May November Derivative financial instruments include but are not appl Not Bank ed with 12000.00 own Agreement 2.82% 166.88 166.88 N/A Yes - Co. Ltd. 292024 252024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.Principal Not Idle This deposit product is a RMB Bank of -guarante May August appl Not Bank 15000.00 own capital-guaranteed non-fixed income product and Agreement 1.20% 45.37 45.37 N/A Yes - China ed with 302024 302024 icab applicable funds floating the product income is divided into two parts: fixed le 154Annual Report 2024 income income and non-fixed income in which the non-fixed income is associated with the fluctuation of the observed target.The principal part of structured deposits is included in the in-statement accounting and it is included in the scope of deposit reserve and deposit Dongguan Principal insurance premium payment according to the Not Bank -guarante Idle deposit management. The relevant assets are May November appl Not Co. Ltd. Bank ed with 13000.00 own accrued with capital and provisions according to Agreement 2.95% 191.22 191.22 N/A Yes - 302024 282024 icab applicable Hefei floating funds the relevant regulations of the State Council's le Branch income Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target and is influenced by many factors in the market.The principal part of structured deposits is included in the in-statement accounting and it is included in the scope of deposit reserve and deposit Principal insurance premium payment according to the Dongguan Not -guarante Idle deposit management. The relevant assets are Bank Co. May November appl Not Bank ed with 3000.00 own accrued with capital and provisions according to Agreement 2.95% 44.13 44.13 N/A Yes - Ltd. Hefei 312024 292024 icab applicable floating funds Branch the relevant regulations of the State Council's le income Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target and is influenced by many factors in the market.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou June June Derivative financial instruments include but are not appl Not Bank ed with 20000.00 own Agreement 2.90% 42.90 42.90 N/A Yes - Co. Ltd. 32024 302024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.Bank of Principal Idle Not June June The principal of this product is invested in bank Not Hangzhou Bank -guarante 5000.00 own Agreement 2.60% appl 8.19 8.19 N/A Yes - 52024 292024 deposits and derivative financial instruments. applicable Co. Ltd. ed with funds icab 155Annual Report 2024 Hefei Branch floating Derivative financial instruments include but are not le income limited to credit goods foreign exchange interest rate options and other derivative financial instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou June June Derivative financial instruments include but are not appl Not Bank ed with 27000.00 own Agreement 2.90% 49.34 49.34 N/A Yes - Co. Ltd. 52024 282024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou June June Derivative financial instruments include but are not appl Not Bank ed with 10000.00 own Agreement 2.90% 17.48 17.48 N/A Yes - Co. Ltd. 62024 282024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits and at the same time invest in financial China Principal derivative transactions (including but not limited to Not Everbright -guarante Idle June September derivative transactions such as options and swaps) appl Not Bank Co. Bank ed with 20000.00 own Agreement 2.35% 117.50 117.50 N/A Yes - 262024 262024 in domestic or international financial markets icab applicable Ltd. Hefei floating funds le Branch income within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products.This product is a RMB structured deposit product China Principal with embedded financial derivatives. Banks invest Not Everbright -guarante Idle July September the raised structured deposit funds in bank time appl Not Bank Co. Bank ed with 10000.00 own Agreement 2.30% 54.31 54.31 N/A Yes - 22024 272024 deposits and at the same time invest in financial icab applicable Ltd. Hefei floating funds derivative transactions (including but not limited to le Branch income derivative transactions such as options and swaps) 156Annual Report 2024 in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou July July Derivative financial instruments include but are not appl Not Bank ed with 5000.00 own Agreement 2.60% 9.97 9.97 N/A Yes - Co. Ltd. 32024 312024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou July July Derivative financial instruments include but are not appl Not Bank ed with 35000.00 own Agreement 2.90% 55.62 55.62 N/A Yes - Co. Ltd. 42024 242024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou July Derivative financial instruments include but are not appl Not Bank ed with 50000.00 own July 29 Agreement 2.90% 99.32 99.32 N/A Yes - Co. Ltd. 42024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou July July Derivative financial instruments include but are not appl Not Bank ed with 45000.00 own Agreement 2.90% 92.96 92.96 N/A Yes - Co. Ltd. 42024 302024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.Bank of Principal Not Idle The principal of this product is invested in bank Hangzhou -guarante July July appl Not Bank 10000.00 own Agreement 2.90% 21.45 21.45 N/A Yes - Co. Ltd. ed with 42024 312024 deposits and derivative financial instruments.icab applicable funds Hefei Branch floating Derivative financial instruments include but are not le 157Annual Report 2024 income limited to credit goods foreign exchange interest rate options and other derivative financial instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou August August Derivative financial instruments include but are not appl Not Bank ed with 55000.00 own Agreement 2.80% 97.04 97.04 N/A Yes - Co. Ltd. 52024 282024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou August August Derivative financial instruments include but are not appl Not Bank ed with 75000.00 own Agreement 2.80% 138.08 138.08 N/A Yes - Co. Ltd. 52024 292024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch rate options and other derivative financial le income instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou August August Derivative financial instruments include but are not appl Not Bank ed with 5000.00 own Agreement 2.60% 8.90 8.90 N/A Yes - Co. Ltd. 52024 302024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou August August Derivative financial instruments include but are not appl Not Bank ed with 30000.00 own Agreement 2.80% 25.32 25.32 N/A Yes - Co. Ltd. 192024 302024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch income rate options and other derivative financial le instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou August November Derivative financial instruments include but are not appl Not Bank ed with 10000.00 own Agreement 2.60% 64.11 64.11 N/A Yes - Co. Ltd. 192024 172024 limited to credit goods foreign exchange interest icab applicable floating funds Hefei Branch rate options and other derivative financial le income instruments. 158Annual Report 2024 The funds raised by the structured deposit products of the Bank of Communications are operated by the Bank of Communications in a unified manner and the business management is carried out in accordance with the principle of separating the basic deposits from derivative transactions. The part of the principal raised is included in the unified operation and management Principal of the internal funds of Bank of Communications Not Bank of -guarante Idle August November and is included in the scope of payment of deposit appl Not Communicat Bank ed with 5000.00 own Agreement 2.45% 30.54 30.54 N/A Yes - 192024 182024 reserves and deposit insurance premiums and the ions Co. Ltd floating icab applicable funds income embedded derivatives part of the product is linked le to the exchange rate interest rate commodity index and other underlying objects. The underlying price under this product agreement is the [Shanghai Gold Centralized Pricing Contract (Code: SHAU) Benchmark Price Morning Price] and the final performance of the product income is linked to the morning price of the SHAU benchmark price.The principal of this product is invested in bank Principal Industrial deposits and derivative financial instruments. Not -guarante Idle Bank Co. August November Derivative financial instruments include but are not appl Not Bank ed with 10000.00 own Agreement 2.25% 56.71 56.71 N/A Yes - Ltd. Hefei 282024 282024 limited to credit goods foreign exchange interest floating fund icab applicable Branch rate options and other derivative financial le income instruments.The principal of this product is partly incorporated into the unified operation and management of Principal internal funds of ICBC The earnings are partly Not ICBC -guarante Idle August December invested in derivatives pegged to the euro against appl Not MianyangGa Bank ed with 10000.00 own Agreement 2.39% 56.76 56.76 N/A Yes - 292024 22024 the dollar and the product gains are linked to the oxin Branch icab applicable floating fund performance of the euro against dollar exchange le income rate in the international market during the observation period. Investor earnings depend on 159Annual Report 2024 the euro against the dollar during the observation period. In the principle of fairness and justice ICBC will observe the exchange rate of the euro against the US dollar during the observation period according to the market conditions and pay the investor for the product in strict accordance with the income conditions stipulated in the product specification.Principal The structured deposits are included in the Not Mianyang -guarante Idle September September payment scope of deposit reserve and deposit appl Not branch of Bank ed with 10000.00 own Agreement 2.60% 20.22 20.22 N/A Yes - 22024 302024 insurance premium in accordance with deposit SPD Bank fund icab applicable floating management and regulatory requirements le income The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou September September Derivative financial instruments include but are not appl Not Bank ed with 55000.00 own Agreement 2.60% 90.11 90.11 N/A Yes - Co. Ltd. 42024 272024 limited to credit goods foreign exchange interest fund icab applicable floating Hefei Branch rate options and other derivative financial le income instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments.-guarante Idle Not Hangzhou September September Derivative financial instruments include but are not Not Bank ed with 75000.00 own Agreement 2.60% appli 138.90 138.90 N/A Yes - Co. Ltd. 42024 302024 limited to credit goods foreign exchange interest applicable floating fund cable Hefei Branch rate options and other derivative financial income instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou September September Derivative financial instruments include but are not appl Not Bank ed with 30000.00 own Agreement 2.60% 53.42 53.42 N/A Yes - Co. Ltd. 52024 302024 limited to credit goods foreign exchange interest icab applicable floating fund Hefei Branch rate options and other derivative financial le income instruments.Principal The principal of this structured deposit is included Not Hefei Branch -guarante Idle September December in the unified operation and management of funds appl Not of Guangfa Bank ed with 10000.00 own Agreement 2.46% 47.18 47.18 N/A Yes - 272024 62024 of Guangfa Bank，The returns are partly invested Bank floating fund icab applicable in financial derivatives and investors' structured le income 160Annual Report 2024 deposit returns depend on the performance of spot gold during the observation period.This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits and at the same time invest in financial China Principal derivative transactions (including but not limited to Not Everbright -guarante Idle 2024 年 9 2024 年 12 derivative transactions such as options and swaps) appl Not Bank Co. Bank ed with 30000.00 own Agreement 2.35% 176.42 176.42 N/A Yes -月29日月29日 Ltd. Hefei fund in domestic or international financial markets icab applicable floating Branch income within the upper limit of the income of such time le deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products.The principal part of structured deposits is included in the in-statement accounting and it is included in the scope of deposit reserve and deposit Principal insurance premium payment according to the Dongguan Not -guarante Idle deposit management. The relevant assets are Bank Co. September December appl Not Bank ed with 2000.00 own Ltd. Hefei 302024 302024 accrued with capital and provisions according to Agreement 1.70% 8.48 8.48 N/A Yes - fund icab applicable Branch floating the relevant regulations of the State Council's le income Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target and is influenced by many factors in the market.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou October October Derivative financial instruments include but are not appl Not Bank ed with 55000.00 own Agreement 2.60% 74.44 74.44 N/A Yes - Co. Ltd. 102024 292024 limited to credit goods foreign exchange interest icab applicable floating fund Hefei Branch rate options and other derivative financial le income instruments.Bank of Principal Idle The principal of this product is invested in bank Not October October Not Hangzhou Bank -guarante 90000.00 own deposits and derivative financial instruments. Agreement 2.60% appl 134.63 134.63 N/A Yes - 102024312024 fund applicable Co. Ltd. ed with Derivative financial instruments include but are not icab 161Annual Report 2024 Hefei Branch floating limited to credit goods foreign exchange interest le income rate options and other derivative financial instruments.Principal The structured deposits are included in the Not Mianyang -guarante Idle October November payment scope of deposit reserve and deposit appl Not branch of Bank ed with 10000.00 own Agreement 2.20% 18.33 18.33 N/A Yes - 142024 142024 insurance premium in accordance with deposit SPD Bank icab applicable floating fund management and regulatory requirements le income The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou November November Derivative financial instruments include but are not appl Not Bank ed with 60000.00 own Agreement 2.50% 98.63 98.63 N/A Yes - Co. Ltd. 42024 282024 limited to credit goods foreign exchange interest icab applicable floating fund Hefei Branch rate options and other derivative financial le income instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou November November Derivative financial instruments include but are not appl Not Bank ed with 80000.00 own Agreement 2.50% 136.99 136.99 N/A Yes - Co. Ltd. 42024 292024 limited to credit goods foreign exchange interest icab applicable floating fund Hefei Branch rate options and other derivative financial le income instruments.Principal The structured deposits are included in the payment scope of deposit reserve and deposit Not Bank of -guarante Idle November December appl Not Communicat Bank ed with 10000.00 own insurance premium in accordance with deposit Agreement 2.10% 18.99 18.99 N/A Yes - 202024232024 ions Co. Ltd floating fund icab applicable management and regulatory requirements le income Principal The structured deposits are included in the Mianyang -guarante Idle payment scope of deposit reserve and deposit Not November December appl Not branch of Bank ed with 10000.00 own insurance premium in accordance with deposit Agreement 2.00% 16.67 16.67 N/A Yes - 252024252024 SPD Bank fund icab applicable floating management and regulatory requirements le income The principal of this product is invested in bank Industrial Principal deposits and derivative financial instruments. Not Bank Co. -guarante Idle December December Derivative financial instruments include but are not appl Not Ltd. Bank ed with 10000.00 own Agreement 2.17% 16.05 16.05 N/A Yes - 302024 302024 limited to credit goods foreign exchange interest Mianyang icab applicable floating fund Branch rate options and other derivative financial le income instruments. 162Annual Report 2024 The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou December December Derivative financial instruments include but are not appl Not Bank ed with 80000.00 own Agreement 2.50% 98.63 98.63 N/A Yes - Co. Ltd. 42024 222024 limited to credit goods foreign exchange interest fund icab applicable floating Hefei Branch rate options and other derivative financial le income instruments.The principal of this product is invested in bank Principal Bank of deposits and derivative financial instruments. Not -guarante Idle Hangzhou December December Derivative financial instruments include but are not appl Not Bank ed with 60000.00 own Agreement 2.40% 90.74 90.74 N/A Yes - Co. Ltd. 42024 272024 limited to credit goods foreign exchange interest fund icab applicable floating Hefei Branch rate options and other derivative financial le income instruments. 1215000. Total -- -- -- -- -- -- -- 3106.19 -- -- -- -- -- 00 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 2024 annual Report.Entrust financial expected to be unable to recover the principal or impairment might be occurred □ Applicable √ Not applicable Are there any financial products with a single outstanding balance of over 50 million yuan or overdue payments at the end of the reporting period.□ Yes √ No □ Not applicable 163Annual Report 2024 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 resolution of the 40th meeting of the 10th Board of Directors of the Company it was agreed that the Company should set up an ESG management organization structure and an ESG management committee under the Board of Directors of the Company consisting of six directors of the Board of Directors namely Mr. Wu Dinggang Mr. Zhong Ming Mr. Zhao Qilin Mr. Kou Huameng Mr. Hu Zhaogui and Ms. Mou Wen (independent directors) and the chairman of Mr. Wu Dinggang which will take effect from the date of review and approval by the Board of Directors. The term of office of the above members is the same as that of the Board of Directors.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. 2024-004 and 2024-005 )on 20 February 2024. 2. According to the resolution of the 40th meeting of the 10th Board of Directors it was agreed that the Company will invest RMB 88 million to transform the front-end refrigerator production line of Hefei manufacturing base in order to enhance the refrigerator manufacturing capacity of Hefei base and improve the market competitiveness of products.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. 2024-004 )on 20February 2024. 3. According to the resolutions of the 42nd meeting of the 10th Board of Directors the 30th meeting of the 10th Board of Supervisors and the 2023 Annual General Meeting of Shareholders it was agreed to pass the Company's 2023 profit distribution plan: based on the Company's total share capital of 1029923715 shares on December 31 2023 it will distribute a cash dividend of RMB 3 (including tax) to all shareholders for every 10 shares with no bonus shares or share capital increase by reserve fund conversion. It is expected to distribute a cash dividend of RMB 308977114.50 (including tax) accounting for 41.70% of the net profit attributable to shareholders of listed companies in 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. 2024-0072024-008 2024-010 and 2024-024)on 30 March 2024 and 26 April 2024.. 4. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual General Meeting of Shareholders it was agreed to appoint Pan-China Certified Public Accountants (special general partnership) AS appointed as the auditor of the Company's 2024 annual financial report and internal control for a 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. 2024-007 2024-011 and 2024-024)on 30 March 2024 and 26 April 2024. 5. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual General 164Annual Report 2024 Meeting of Shareholders it was agreed that the Company and its subsidiaries will conduct forward foreign exchange fund trading business from July 1 2024 to June 30 2025 with a transaction balance not exceeding USD 1.199 billion (mainly including USD AUD and EUR and all other foreign exchange will be converted into USD) and alongest delivery period of a single business of no more than one year.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. 2024-0072024-013 and 2024-024)on 30 March 2024 and 26 April 2024.. 6. According to the resolutions of the 42nd meeting of the 10th Board of Directors the 30th meeting of the 10th Board of Supervisors and the 2023 Annual General Meeting of Shareholders it was agreed to pass the Company'sReturn Plan for Shareholders for the Next Three Years (2024 -2026).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. 2024-0072024-008 and 2024-024)on 30 March 2024 and 26 April 2024.. 7. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual General Meeting of Shareholders it was agreed that the Company and its subsidiaries apply to Hefei Branch of Industrial Bank Co. Ltd. for a special credit line of up to RMB 400 million for bill pool; and apply to Hefei Branch of Ping An Bank Co. Ltd. for a special credit line of up to RMB 500 million for bill pool.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. 2024-0072024-015 and 2024-024)on 30 March 2024 and 26 April 2024.. 8. According to the 43rd meeting of the 10th Board of Directors the 31st meeting of the 10th Board of Supervisors and the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to provide a total guarantee amount of no more than RMB 600 million for raw materials purchased by Changhong Air Conditioning a wholly-owned subsidiary of the Company with a guarantee period of one year starting from the date of review and approval 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. 2024-0202024-0212024-023 and 2024-036)on 20 April 2024 and 19 June 2024.. 9. In order to establish a variety of shareholder return mechanisms thank shareholders for their long-term concern and support and at the same time to allow shareholders to experience the Company's new products and services and improve investors' understanding and recognition of the Company's intrinsic value the Company held the "Changhong Meiling Shareholder Thanksgiving Festival" from May 18 2024 to May 26 2024.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. 2024-025)on 17 May 2024 . 10. According to the resolutions of the 44th meeting of the 10th Board of Directors and the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to amend some clauses of the Company's Articles of Association according to relevant provisions of laws and regulations and combined with the actual situation of the 165Annual Report 2024 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. 2024-0262024-028 and 2024-036)on 1 June 2024 and 19 June 2024.. 11. According to the resolution of the 44th meeting of the 10th Board of Directors and the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to amend some clauses of the Company's Authorization Management System according to the relevant provisions of laws and regulations and combined with 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. 2024-0262024-028 and 2024-036)on 1 June 2024 and 19 June 2024.. 12. According to the resolutions of the 44th meeting of the 10th Board of Directors the 32nd meeting of the 10th Board of Supervisors and the First Extraordinary General Meeting of Shareholders in 2024 it was agreed that the Company and its subsidiaries (excluding Zhongke Meiling Cryogenic Technology Co. Ltd. and its subsidiaries) would increase the use of their own idle funds of no more than RMB 1.85 billion (which can be used in a rolling way) to invest in and purchase 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 by the General Meeting of Shareholders of the Company.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. 2024-0262024-027 2024-030 and 2024-036)on 1 June 2024 and 19 June 2024.. 13. In view of the expiration of the term of the 10th Board of Directors of the Company according to relevant regulations the Board of Directors of the Company needs to be re-elected. It was agreed that the 11th Board of Directors of the Company should have 9 directors including 6 non-independent directors and 3 independent directors. According to the resolutions of the 44th meeting of the 10th Board of Directors and the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to appoint Mr. Wu Dinggang Mr. Zhong Ming Mr. Zhao Qilin Ms. Yi Suqin Mr. Cheng Ping and Mr. Fang Wei as the non-independent directors of the 11th Board of Directors and Ms. Mou Wen Mr. Hong Yuanjia and Mr. Cheng Wenlong as the independent directors of the 11th Board of Directors.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. 2024-0262024-031 and 2024-036)on 1 June 2024 and 19 June 2024.. 14. According to the resolution of the 32nd meeting of the 10th Board of Supervisors and the First Extraordinary General Meeting of Shareholders in 2024 in order to optimize the enterprise supervision system combined with the revision of the Articles of Association it was agreed to amend some clauses of the Rules of Procedure of the Board of Supervisors and adjust the member number of the Board of Supervisors from 5 to 3.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. 2024-0272024-029 and 2024-036)on 1 June 2024 and 19 June 2024.. 15. In view of the expiration of the term of the 10th Board of Supervisors of the Company according to 166Annual Report 2024 relevant regulations the Board of Supervisors of the Company needs to be re-elected. It was agreed that the 11th Board of Supervisors of the Company should have 3 supervisors including 2 shareholder representative supervisors and 1 employee supervisor. According to the resolution of the 32nd meeting of the 10th Board of Supervisors and the First Extraordinary General Meeting of Shareholders in 2024 it was agreed to appoint Mr. Qiu Jin and Mr. Ma Yu as the shareholder representative supervisors of the 11th Board of Supervisors; After voting at the second meeting of the Ninth Workers' Congress it was agreed to elect Ms. Ji Ge as the employee supervisor of the 11th Board of Supervisors.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. 2024-0272024-032 2024-036 and 2024-037)on 1 June 2024 and 19 June 2024.. 16. According to the resolution of the first meeting of the 11th Board of Directors it was agreed to elect Mr. Wu Dinggang as the chairman of the 11th Board of Directors to elect members of the strategy audit nomination remuneration and assessment and ESG management committees under the 11th Board of Directors to re-appoint Mr.Tang Youdao Mr. Kou Huameng and Mr. Hu Zhaogui as the Company's vice presidents to employ Ms. Li Xia as the Company's vice president and concurrently the secretary of the Board of Directors and to re-appoint Mr. Pang Haitao as the Company's financial director with a term of office from the date of review and approval by the Board of Directors to the Company to the date of expiration of the term of office of the current Board of Directors.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. 2024-038 and 2024-040)on 19 June 2024 and 20 June 2024.. 17. According to the resolution of the first meeting of the 11th Board of Supervisors of the Company it was agreed to elect Mr. Qiu Jin as the chairman of the 11th Board of Supervisors of the Company with a term of officethe same as that of the 11th Board of Supervisors of the Company.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. 2024-038 and 2024-040)on 19 June 2024 and 20 June 2024.. 18. On August 15 2024 through the resolution passed at the second meeting of the 11th board of directors of the Company according to the Company's production and operation needs in order to improve the manufacturing capacity of the Company's refrigerator products it’s agreed that the Company will use its own funds of 16.35 million yuan to carry out technical transformation of some equipment of the refrigerator production line to enhance the production capacity and market competitiveness of the Company's products.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. 2024-041on 19 August 17.. 19. On October 11 2024 and October 29 2024 respectively through the resolution passed at the third meeting of the Company's 11th board of directors the third meeting of the 11th board of supervisors and the second extraordinary general meeting of shareholders in 2024 according to the Company's strategic development plan and business needs in order to meet the Company's needs for high-end refrigerator expansion self-owned logistics warehouse expansion future home appliance and home integration industrial layout etc. and solve the problem of industrial development and resource shortage it’s agreed that the Company will use its own funds of 167Annual Report 2024 RMB 371282909.96 to acquire 99% equity of Hefei Changhong Industrial Co. Ltd. (hereinafter referred to as "Hefei Industrial" the company's main assets are land plants etc.) held by Sichuan Changhong Electric Co. Ltd.and agreed Hefei Meiling IoT Technology Co. Ltd.-a wholly-owned subsidiary of the Company-to acquire the 1% equity in Hefei Industrial held by Sichuan Changhong Innovation Investment Co. Ltd. with its own funds of RMB 3750332.42. After this transaction Hefei Industrial has become a subsidiary of the Company by directly and indirectly holding 100% of the shares which will be included in the Company's consolidated financial statement. 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. 2024-046 and 2024-048)on 12 October 2024.. 20. On October 11 2024 and October 29 2024 through the resolution passed at the third meeting of the 11th board of directors of the Company and the second extraordinary general meeting of shareholders in 2024 it’s agreed the Company and its subsidiaries to carry out asset pool business with Hefei Branch of Zheshang Bank Co.Ltd. with a total quota of no more than RMB 500 million; Approved the Company and its subsidiaries to carry out asset pool business with Hefei Branch of Bohai Bank Co. Ltd. with a total quota of not more than RMB 300 million. 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. 2024-046 and 2024-050)on 12 October 2024.. 21. On October 11 2024 and October 29 2024 through the resolution passed at the third meeting of the 11th board of directors of the company and the second extraordinary general meeting of shareholders in 2024 it’s agreed the Company and its subsidiaries to apply for a special credit line of up to RMB 500 million for the bill pool from Huaxia Bank Co. Ltd. Hefei Branch; Approved the Company and its subsidiaries to apply for a special credit line of up to 600 million yuan for the bill pool from Bank of Hangzhou Co. Ltd. Hefei Branch; Approved the Company and its subsidiaries to apply for a special credit line of up to RMB 1 billion for the bill pool from Bank of Communications Co. Ltd. Anhui Branch. 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. 2024-046 )on 12 October 2024.. 22. On November 22 2024 Mr. Zhong Ming the former president of the Company resigned from his position as President of the Company due to personal reasons and he will continue to serve as a director of the Company a member of the Strategy Committee a member of the Nomination Committee and a member of the ESG Management Committee of the Company. Passed by the resolution of the sixth meeting of the 11th board of directors of the Company in accordance with "The Company Law" "Articles of Association of the Company" and the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange in order to ensure the smooth progress of the Company's daily operation and management after review and approval by the nomination committee under the board of directors the board of directors agreed to authorize Mr. Tang Youdao vice president of the Company to act as the president with the agency period will be from the date of the resolution of the board of directors to the date of appointment of the new president of the board of directors.Found more on appointed media “Securities Times” “China Securities Journal” and Juchao Website 168Annual Report 2024 (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-065 and 2024-066)on 12 October 2024.. 23. On December 11 2024 and December 27 2024 through the resolution passed at the eighth meeting of the 11th board of directors the sixth meeting of the 11th board of supervisors and the third extraordinary general meeting of shareholders in 2024 In order to improve the efficiency of the Company's capital use increase the Company's cash asset income and maximize the interests of shareholders under the premise of ensuring the capital needs of daily operation and effectively controlling investment risks it’s agreed that the Company and its subsidiaries (excluding Zhongke Meiling Cryogenic Technology Co. Ltd. and its subsidiaries) will use their own idle funds not exceeding 6.35 billion yuan (the quota can be used on a rolling basis) to invest in bank wealth management products with high security good liquidity low risk and stability within one year and the authorization period shall be valid for one year from the date of approval 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. 2024-067 and 2024-072)on 12 December 2024..XVII. Major event of the subsidiary √ Applicable □ Not applicable 1. According to the resolution of the 41st meeting of the 10th Board of Directors of the Company it was agreed that Sichuan Changhong Air Conditioning Co. Ltd. a subsidiary of the Company would invest RMB 100 million with its own funds to set up a wholly-owned subsidiary Sichuan Changhong Intelligent Air Conditioning Technology Co. Ltd. to engage in related business centered on manufacturing and sales of frequency conversion drive control panels in the air conditioning industry (including special air conditioners).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. 2024-006 )on 15 March 2024.. 2. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 30th meeting of the 10th Board of Supervisors it was agreed that Hefei Meiling Nonferrous Metal Products Co. Ltd. a subsidiary of the Company would write off some unrecoverable accounts receivable totaling RMB 3092614.56.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. 2024-0072024-008 and 2024-012 )on 30 March 2024. 169Annual Report 2024 VII .Changes in Shares and Particulars about Shareholders I. Changes in Share Capital (i) Changes in Share Capital In Shares Before the Change Increase/Decrease in the Change (+ -) After the Change Public reserve New Bonus transfer Amount Proportion shares Others Subtotal Amount Proportion shares into issued share capital I. Restricted 76888420.75%000-1534757-153475761540850.60% shares 1. State-owned 0 0.00% 0 0 0 0 0 0 0.00% shares 2. State-owned legal 1141053 0.11% 0 0 0 0 0 1141053 0.11% person’s shares 3. Other domestic 5280369 0.52% 0 0 0 -267337 -267337 5013032 0.49% shares Including: Domestic legal 3363539 0.33% 0 0 0 0 0 3363539 0.33% person’s shares Domestic natural 19168300.19%000-267337-26733716494930.16% person’s shares 4. Foreign 12674200.12%000-1267420-126742000.00% shares Including: Foreign legal 00.00%0000000.00% person’s shares Foreign natural 12674200.12%000-1267420-126742000.00% person’s shares II.Unrestricted 1022234873 99.25% 0 0 0 +1534757 +1534757 1023769630 99.40% shares 1. RMB ordinary 875312459 84.99% 0 0 0 +267337 +267337 875579796 85.01% shares 2. Domestically 14692241414.26%000+1267420+126742014818983414.39% listed foreign shares 3. Overseas listed foreign 0 0.00% 0 0 0 0 0 0 0.00% shares 4. Others 0 0.00% 0 0 0 0 0 0 0.00% III. Total 1029923715100.00%000001029923715100.00% shares 170Annual Report 2024 1. Reasons for share changed √ Applicable □ Not applicable (1)On June 18 2024 the Company held the first meeting of the 11th Board of Directors and held a general election for senior managers. Mr. Huang Danian no longer served as the Company's vice president. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors Supervisors and Senior Managers During the Reporting Period Mr. Huang Danian the former vice president of the Company had left office for six months so 75% of the total number of shares of the Company held by him i.e. 267337 shares was lifted. (2) On May 25 2023 Mr. Liu Hongwei the former Executive Vice President of the Company resigned as the executive vice president of the Company for personal reasons and his original term of office expired on June 18 2024. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors Supervisors and Senior Managers all the shares of Mr. Liu Hongwei were locked six months after his resignation During the reporting period as it had been six months since Mr. Liu Hongwei left office and his original term expired 75% of the shares held by him that is 1267420 shares were lifted from restricted sale. 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 Ending Opening Shares shares Sharehold shares shares released in increased Restricted reasons Date for released ers restricte restricted Period in d Period On June 18 2024 the Company held the first meeting of the 11th Board of Directors and held a general election for senior managers. Mr. Huang Danian no longer served as the Company's vice president. According to the relevant provisions of the Huang Top management 267337 0 267337 0 Guideline No.18 on Self-regulation of Danian lock-in stock Listed Companies of Shenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors Supervisors and Senior Managers During the Reporting Period Mr.Huang Danian the former vice president of the Company had left 171Annual Report 2024 office for six months so 75% of the total number of shares of the Company held by him i.e. 267337 shares was lifted.On May 25 2023 Mr. Liu Hongwei the former Executive Vice President of the Company resigned as the executive vice president of the Company for personal reasons and his original term of office expired on June 18 2024. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Liu Top management Exchange - Reduction of Shares held 1267420012674200 Hongwei lock-in stock by Shareholders and Directors Supervisors and Senior Managers all the shares of Mr. Liu Hongwei were locked six months after his resignation During the reporting period as it had been six months since Mr. Liu Hongwei left office and his original term expired 75% of the shares held by him that is 1267420 shares were lifted from restricted sale.Total 1534757 0 1534757 0 -- -- 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 number of common shareholders as of Total preference shareholders Total preference shareholders Total the end of the shareholders at with voting rights recovered with voting rights recovered at 73514 previous month 71608 0 0 end of the Period at end of reporting period (if end of last month before annual (March 20th) prior applicable) report disclosed (if applicable) to the disclosure date of the annual report Particulars about common shares held above 5% by shareholders or top ten common shareholders(Excludes shares lent through refinancing) Full name of Shareholders Nature of Proportion Amount of Changes in Amou Amount of Information of 172Annual Report 2024 shareholder of shares common shares report period nt of common shares shares pledged held held at the end restrict held without tagged or frozen of reporting ed restriction period comm State on of Amount shares share held State-owned Sichuan Changhong Electric Co. Ltd. 24.12% 248457724 0 0 248457724 - - legal person Domestic The National Social Security Fund 101 non-state-own 3.44%35423661+12640925035423661-- portfolio ed legal person Foreign legal HKSCC 2.98% 30721614 +26003000 0 30721614 - - person CHANGHONG (HK) TRADING Foreign legal 2.63%270777970027077797-- LIMITED person Hefei Industry Investment Holding (Group) State-owned 1.83%18864896-28958505018864896 Co. Ltd. - - legal person Foreign legal CAO SHENGCHUN 1.43% 14766086 0 0 14766086 - - person Domestic Industrial Bank－Southern Xingrun value non-state-own one-year holding period of hybrid securities 1.24% 12751953 +3590353 0 12751953 - - ed legal investment fund person Domestic ICBC－South Excellent Growth Stock non-state-own 1.14%11783600+1140600011783600-- Securities Investment Fund ed legal person Domestic CUAM Fund－The National Social non-state-own 0.91%9419401+941940109419401-- Security Fund 17021 portfolio ed legal person Foreign legal PHILLIP SECURITIES（HK）LIMITED 0.61% 6296913 0 0 6296913 - - person Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable) Not 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 concerted actors as Explanation on associated specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed relationship among the Companies among Sichuan Changhong Electric Co. Ltd Hong Kong Changhong and other top 8 shareholders The aforesaid shareholders company neither knows whether there is any association among other shareholders nor knows whether othershareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on InformationDisclosure 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(Excluding shares lent through refinancing and Top management lock-in stock) Amount of Type of shares unrestricted Shareholders’ name shares held at Type Amount end of Period Sichuan Changhong Electric Co. Ltd. 248457724 Common shares in 248457724 RMB The National Social Security Fund 101 portfolio 35423661 Common shares in 35423661 173Annual Report 2024 RMB HKSCC 30721614 Common shares in 30721614 RMB 27077797 Foreign shares in 27077797 CHANGHONG (HK) TRADING LIMITED domestic market Hefei Industry Investment Holding (Group) Co. Ltd. 18864896 Common shares in 18864896 RMB CAO SHENGCHUN 14766086 Common shares in 14766086 RMB Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities 12751953 Common shares in 12751953 investment fund RMB Common shares in ICBC－South Excellent Growth Stock Securities Investment Fund 11783600 11783600 RMB Common shares in CUAM Fund－The National Social Security Fund 17021 portfolio 9419401 9419401 RMB 6296913 Foreign shares in 6296913 PHILLIP SECURITIES（HK）LIMITED domestic marketExpiation 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 Not applicable business (if any) 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 Information of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participating in the lending of shares in securities lending and borrowing business □ Applicable √ Not applicable The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared with the previous period due to the securities lending/returning of shares in securities lending and borrowing business □ Applicable √ Not applicable 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 174Annual Report 2024 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 ) 1. As of December 312024 Sichuan Changhong directly holds 212994972 shares of Changhong Huayi Compressor Co. Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange accounting for 30.60% of the equity of Changhong Huayi Compressor Co. Ltd.Equity 2. As of December 312024 Sichuan Changhong indirectly holds 1990518000 ordinary shares and preferred shares in total of controlling Changhong Jiahua Holdings Co. Ltd. (Stock code: 03991) - a company listed on the main board of Hong Kong Stock Exchange and jointly accounting for 77.44% of the whole ordinary shares and preferred shares under the name of Changhong Jiahua Holdings Co. Ltd.of other 3.As of December 31 2024 Sichuan Changhong directly holds 86258333 shares of Sichuan Changhong Minsheng Logistics Co. Ltd foreign/dom estic listed (stock code:836237)- the company with shares transferring in National Equities Exchange and Quotations accounting for 70.27% of the company by equity of Sichuan Changhong Minsheng Logistics Co. Ltd.controlling 4. As of December 31 2024 Sichuan Changhong directly holds 95% of the equity of Sichuan Changhong Innovation Investment Co.shareholder Ltd. Changhong Group the controlling shareholder of Sichuan Changhong directly holds 5% of the equity of Sichuan Changhong in reporting Innovation Investment Co. Ltd. and Sichuan Changhong Innovation Investment Co. Ltd. directly holds 24068160 shares of Sichuan period Huafeng Technology Co. Ltd. (stock code: 688629) a company listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange which accounts for 5.22% of the equity of Sichuan Huafeng Technology Co. Ltd.. 3. Controlling shareholder changes in reporting period □ Applicable √ Not applicable Controlling shareholder stays the same in Period.(iii) Actual controller of the Company and its person acting in concert 1. Nature of actual controller: local state-owned assets management 2. Type of actual controller: legal person Legal Dated Actual controller rep./person in Organization code Main business founded charge of unit State-owned Assets Supervision & State-owned Assets Supervision & -- -- -- Administration Commission of Mianyang 175Annual Report 2024 Administration Commission of Mianyang Municipality is entrusted by the same level Municipality government together performs decision-making and management of state-owned asset owners and is one organization which executes comprehensive management and supervision on its belonged state-owned assets.Equity controlling of other foreign/domestic listed company by 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 2024)绵阳市国有资产监督管理委员会四川省财政厅 90%10% %%四川长虹电子控股集团有限公司 23.22% %四川长虹电器股份有限公司 100% 四川长虹（香港）贸易有限公司省绵24.12%阳市四川省 3.24% 虹欢绵阳市 %长科虹技美菱股份有限公司虹欢科有限技有限 5. Actual controller controlling the Company b责y 任means of entrust or other ass责ets任 m公anagement □ Applicable √ Not applicable 公司 司 (iv) The total number of shares pledged by con trolling shareholders or the first majority shareholder and % its persons acting in concert accounts for 80%% of the shares held by them □ Applicable √ Not applicable (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 176Annual Report 2024 VIII. Situation of the Preferred Shares □ Applicable √ Not applicable The Company had no preferred stock in the Period 177Annual Report 2024 IX.Corporate Bond □ Applicable √ Not applicable 178Annual Report 2024 X. Financial Report I. Audit report Type of audit opinion Standard unqualified opinion Date for signing the report April 1 2025 Name of audit institute Pan-China Certified Public Accountants LLP Serial of Auditing Report Tianjian Review [2025] No. 11-203 Name of CPA Li Yuanliang Peng Yahui Auditor’s Report 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 2024 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 2024 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 2024 and the operating results and cash flow of the Company for Current Year of 2024.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 operating income 1. Description of item Please refer to Notes III (XXX) and V (II) 1 to the financial statements for details of relevant information disclosure.Changhong Meiling's operating income mainly comes from selling refrigerators (freezers) air conditioners washing machines small home appliances kitchens and bathrooms and other home appliances to domestic and foreign customers. In 2024 the operating income was RMB 28601036014.96 yuan of which the income from refrigerators (freezers) air conditioners and washing machines was RMB 26713960170.94 yuan accounting for 93.40% of the operating income. As operating income is one of the key performance indicators of Changhong Meiling there may be inherent risks that the management of Changhong Meiling (hereinafter referred to as management) achieves specific goals or 179Annual Report 2024 expectations through improper income recognition. Therefore we determine income recognition as a key audit item. 2. Audit response For revenue recognition the audit procedures we implemented mainly include: (1) Understanding the key internal controls related to revenue recognition evaluating the design of these controls determining whether they are implemented and testing the operating effectiveness of relevant internal controls; (2) Reviewing the sales contract understanding the main contract terms or conditions and evaluating whether the revenue recognition method is appropriate; (3) Analyzing the operating revenue and gross profit rate by month product region etc. identifying whether there are significant or abnormal fluctuations and ascertaining the reasons for the fluctuations; (4) For domestic sales revenue choosing supporting documents for checked items including sales contracts orders sales invoices outbound delivery orders shipping orders shipping documents customers’ signature form and payment receipts. For overseas revenue obtaining port information and checking with the accounting records and checking the sales contracts export declaration forms bills of lading sales invoices and other supporting documents by sampling; (5) Based on the accounts receivable letter of confirmation select specific samples to send letters of confirmation to major customers regarding the current sales revenue (6) Carrying out a cut-off test and evaluating whether the operating revenue is recognized within an appropriate period (7) Checking whether the information relating to operating revenue has been properly presented in the financial statements.(II) Capitalization of R&D expenditure 1. Description of item For details of relevant information disclosure please refer to Notes III (XXI) V (I) 21 and VI to the financial statements.As of December 31 2024 the company's research and development is focused on refrigerators washing machines and air conditioning projects. In 2024 the company capitalized a total of RMB 207422076.26 in R&D investment generated during the research and development of patented and non patented technologies as development expenses..R&D expenditure can be capitalized only when all the capitalization requirements listed in Note III (XXI) to the financial statements are met. Since determining whether R&D expenditure meets all the capitalization conditions requires significant accounting estimation and judgment by the management we recognize the capitalization of R&D expenditure as a key audit item. 2. Audit response For capitalization of R&D expenditure the audit procedures we intend to implement mainly include: (1) Understand the scope and accounting methods of R&D expenditures key controls for capitalizing R&D expenditures and test the effectiveness of relevant internal control operations;; 180Annual Report 2024 (2) Understand the accounting policy for capitalization of R&D expenditure of Changhong Meiling and evaluate whether it conforms to the relevant provisions of the Accounting Standards for Business Enterprises; (3) Obtain a detailed list of R&D expenditures perform analytical procedures on R&D expenditures select specific samples to check supporting documents related to R&D expenditures evaluate whether the collection scope of R&D expenditures is appropriate and whether R&D expenditures are true;; (4) Obtain and check the project application report small batch trial manufacture review report trial production review report and acceptance report of the project in the development stage and interview the management to evaluate whether the management's judgment on the feasibility of the project is appropriate and whether the capitalization time of the project is reasonable; (5) Check whether the information related to capitalization of R&D expenditure has been properly presented in the financial report.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.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 181Annual Report 2024 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 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.Pan-China Certified Public Accountants LLP Chinese CPA: Li Yuanliang (Engagement partner) Chinese CPA: Peng Yahui Hangzhou China April 1，2025 ： 182Annual Report 2024 II. Financial statements Units in Notes of Financial Statements is RMB 1. Consolidated Balance Sheet Prepared by CHANGHONG MEILING CO. LTD. December 31 2024 In RMB Item December 312024 January 12024 Current assets: Monetary funds 10492450750.61 8842623235.72 Settlement provisions Capital lent Trading financial assets 39236447.63 Derivative financial assets 72010074.43 Note receivable 267174.50 Account receivable 1527978374.48 1680303240.09 Receivable financing 1516987953.83 1641858740.34 Accounts paid in advance 60352345.27 45796175.02 Insurance receivable Reinsurance receivables Contract reserve of reinsurance receivable Other account receivable 135391270.79 100159876.70 Including: Interest receivable Dividend receivable 12124951.70 Buying back the sale of financial assets Inventories 3514968009.34 2022749908.45 Including：Data resources Contractual assets 2763866.97 13261690.62 Assets held for sale Non-current asset due within one year 60242921.84 122294027.78 Other current assets 562030362.98 225419883.07 Total current assets 17945175930.54 14733970399.92 Non-current assets: Loans and payments on behalf Debt investment 1474153793.17 420537485.54 Other debt investment Long-term account receivable Long-term equity investment 81511146.82 112745811.75 Investment in other equity instrument 183Annual Report 2024 Item December 312024 January 12024 Other non-current financial assets 676094304.44 674139515.48 Investment real estate 66720850.69 50920487.71 Fixed assets 2218850660.12 2291776177.80 Construction in progress 97807983.40 69920839.20 Productive biological asset Oil and gas asset Right-of-use assets 113784190.78 35146281.21 Intangible assets 994429966.05 930141998.97 Including：Data resources Expense on Research and Development 74710694.74 97177535.34 Including：Data resources Goodwill Long-term expenses to be apportioned 33336772.23 35698465.62 Deferred income tax asset 176953941.27 159838664.57 Other non-current asset 19073662.23 26601614.35 Total non-current asset 6027427965.94 4904644877.54 Total assets 23972603896.48 19638615277.46 Current liabilities: Short-term loans 766747286.01 1134102419.03 Loan from central bank Capital borrowed Trading financial liability 32229012.86 Derivative financial liability 156359680.92 Note payable 7934125435.65 5910417290.11 Account payable 6132020588.41 3900524844.73 Accounts received in advance 11085.70 55949.90 Contractual liability 609737871.24 405733638.26 Selling financial asset of repurchase Absorbing deposit and interbank deposit Security trading of agency Security sales of agency Wage payable 389952777.46 444585894.98 Taxes payable 95871539.98 93221395.45 Other account payable 1031439412.53 887428362.41 Including: Interest payable Dividend payable 6005989.72 5384407.44 Commission charge and commission payable Reinsurance payable 184Annual Report 2024 Item December 312024 January 12024 Liability held for sale Non-current liabilities due within one 29135164.6846655412.91 year Other current liabilities 23824389.50 19177067.62 Total current liabilities 17169225232.08 12874131288.26 Non-current liabilities: Insurance contract reserve Long-term loans 108000000.00 Bonds payable Including: Preferred stock Perpetual capital securities Lease liability 101826405.91 28976808.54 Long-term account payable 455409.20 800347.84 Long-term wages payable 10195289.45 11497075.82 Accrual liability 45030417.22 32054790.39 Deferred income 125435177.90 132977494.33 Deferred income tax liabilities 44072593.30 19587398.52 Other non-current liabilities Total non-current liabilities 327015292.98 333893915.44 Total liabilities 17496240525.06 13208025203.70 Owner’s equity: Share capital 1029923715.00 1029923715.00 Other equity instrument Including: Preferred stock Perpetual capital securities Capital public reserve 2750470215.39 3125503457.77 Less: Inventory shares Other comprehensive income -21222419.68 -20704362.05 Reasonable reserve 20968173.59 11246811.91 Surplus public reserve 502454071.02 477053194.82 Provision of general risk Retained profit 1803207185.06 1438315123.94 Total owner’ s equity attributable to 6085800940.386061337941.39 parent company Minority interests 390562431.04 369252132.37 Total owner’ s equity 6476363371.42 6430590073.76 Total liabilities and owner’ s equity 23972603896.48 19638615277.46 Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 185Annual Report 2024 2. Balance Sheet of Parent Company In RMB Item December 312024 January 12024 Current assets: Monetary funds 3939389057.28 4809758761.19 Trading financial assets 18729757.94 Derivative financial assets 19821438.48 Note receivable 38674.50 Account receivable 833235885.99 1451795533.72 Receivable financing 1442869017.45 1497014392.88 Accounts paid in advance 48554780.33 57223852.86 Other account receivable 149182032.46 61841221.91 Including: Interest receivable Dividend receivable 12124951.70 Inventories 666268187.19 563055688.46 Data resources Contractual assets 37408.05 Assets held for sale Non-current assets maturing within one 122294027.78 year Other current assets 291466689.98 117873746.80 Total current assets 7390787089.16 8699663066.09 Non-current assets: Debt investment 925585208.34 185038444.44 Other debt investment Long-term receivables Long-term equity investments 2063325214.07 1857475810.90 Investment in other equity instrument Other non-current financial assets 641137345.26 639796405.98 Investment real estate 3126179.84 3335032.47 Fixed assets 1053825318.71 1129605191.26 Construction in progress 59788586.47 23067134.99 Productive biological assets Oil and natural gas assets Right-of-use assets 12954326.53 14847119.40 Intangible assets 442210732.72 450919869.65 Data resources Research and development costs 38924294.89 59134989.07 Data resources Goodwill 186Annual Report 2024 Item December 312024 January 12024 Long-term deferred expenses 17709281.58 18688725.10 Deferred income tax assets 95484746.18 112630572.62 Other non-current assets 638649.57 638649.57 Total non-current assets 5354709884.16 4495177945.45 Total assets 12745496973.32 13194841011.54 Current liabilities: Short-term borrowings 746224022.12 1128097377.36 Trading financial liability 13310995.04 Derivative financial liability 35876471.02 Notes payable 2977167497.82 2697168522.01 Account payable 2256196451.43 2296410046.78 Accounts received in advance Contractual liability 175438827.79 107529353.67 Wage payable 107686556.89 159773962.41 Taxes payable 17041928.43 25137168.64 Other accounts payable 943872547.30 951772428.91 Including: Interest payable Dividend payable 5405989.72 4784407.44 Liability held for sale Non-current liabilities due within one 2368977.6842339541.12 year Other current liabilities 7744840.19 4875594.29 Total current liabilities 7269618120.67 7426414990.23 Non-current liabilities: Long-term loans 108000000.00 Bonds payable Including: Preferred stock Perpetual capital securities Lease liability 12915911.24 14511484.16 Long-term account payable Long term employee compensation 5434796.156554481.48 payable Accrued liabilities 12165219.71 8758265.23 Deferred income 81760946.33 75130950.40 Deferred income tax liabilities 15926816.74 13589235.48 Other non-current liabilities Total non-current liabilities 128203690.17 226544416.75 Total liabilities 7397821810.84 7652959406.98 Owners’ equity: 187Annual Report 2024 Item December 312024 January 12024 Share capital 1029923715.00 1029923715.00 Other equity instrument Including: Preferred stock Perpetual capital securities Capital public reserve 2601775532.74 2740508510.57 Less: Inventory shares Other comprehensive income Special reserve 505111.75 Surplus reserve 502235905.34 476835029.14 Retained profit 1213740009.40 1294109238.10 Total owner’s equity 5347675162.48 5541881604.56 Total liabilities and owner’s equity 12745496973.32 13194841011.54 Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 3. Consolidated Profit Statement In RMB Item 2024 2023 I. Total operating income 28601036014.96 24377974386.94 Including: Operating income 28601036014.96 24377974386.94 Interest income Insurance gained Commission charge and commission income II. Total operating cost 27829543526.32 23607302828.05 Including: Operating cost 25411275203.27 21134276562.82 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 112742900.98 200227814.27 Sales expense 1477154043.38 1423788018.72 Administrative expense 359672540.20 371930885.44 R&D expense 637242233.83 597529355.84 Financial expense -168543395.34 -120449809.04 Including: Interest expenses 24540000.01 31212055.56 188Annual Report 2024 Item 2024 2023 Interest income 182415110.59 193136304.82 Add: Other income 196071087.54 146672702.27 Investment income (Loss is listed with “-”) 35709856.70 7895511.23 Including: Investment income on affiliated company and joint venture 9165103.88 19133884.40 The termination of income recognition for financial assets measured by -38661658.21-22489932.70 amortized cost Exchange income (Loss is listed with “-”) Net exposure hedging income (Loss is listed with “-”) Income from change of fair value (Loss is listed with “-”) -87184652.30 7293761.73 Loss of credit impairment (Loss is listed with “-”) 14901780.81 -81468574.70 Losses of devaluation of asset (Loss is listed with “-”) -116583058.63 -55234107.48 Income from assets disposal (Loss is listed with “-”) 160661.55 1880089.33 III. Operating profit (Loss is listed with “-”) 814568164.31 797710941.27 Add: Non-operating income 10938462.86 15072219.01 Less: Non-operating expense 11928863.23 8367475.17 IV. Total profit (Loss is listed with “-”) 813577763.94 804415685.11 Less: Income tax expense 88910261.07 36422352.81 V. Net profit (Net loss is listed with “-”) 724667502.87 767993332.30 (i) Classify by business continuity 1.continuous operating net profit (net loss listed with ‘-”) 724667502.87 767993332.30 2.termination of net profit (net loss listed with ‘-”) (ii) Classify by ownership 1.Net profit attributable to owner’s of parent company 699270051.82 735828796.67 2.Minority shareholders’ gains and losses 25397451.05 32164535.63 VI. Net after-tax of other comprehensive income -465244.39 433908.69 Net after-tax of other comprehensive income attributable to owners of -518057.63177100.58 parent 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 -518057.63177100.58 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 189Annual Report 2024 Item 2024 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 -518057.63177100.58 financial statements 7.Other Net after-tax of other comprehensive income attributable to minority 52813.24256808.11 shareholders VII. Total comprehensive income 724202258.48 768427240.99 Total comprehensive income attributable to owners of parent Company 698751994.19 736005897.25 Total comprehensive income attributable to minority shareholders 25450264.29 32421343.74 VIII. Earnings per share: (i) Basic earnings per share 0.6790 0.7144 (ii) Diluted earnings per share 0.6790 0.7144 As for the enterprise combined under the same control net profit of 1918902.01 yuan achieved by the merged party before combination while -5606904.68 yuan achieved last period Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 4. Profit Statement of Parent Company In RMB Item 2024 2023 I. Operating income 10332554876.58 9608398530.57 Less: Operating cost 9451034846.99 8715341736.95 Taxes and surcharge 45865395.79 86233117.13 Sales expenses 235254055.13 254382015.75 Administration expenses 131613837.20 139854173.76 R&D expenses 320054920.88 281165357.51 Financial expenses -55380238.83 -34410768.97 Including: Interest expenses 15040671.80 28980467.63 Interest income 81778925.78 91292890.78 Add: Other income 34545492.77 26474061.57 Investment income (Loss is listed with “-”) 76459962.63 190286552.58 Including: Investment income on affiliated Company and joint 8398963.6518713956.61 venture The termination of income recognition for financial assets -9688921.63-6157758.00 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 “-”) -17915256.16 13710776.81 Loss of credit impairment (Loss is listed with “-”) 3500641.91 -9095054.57 190Annual Report 2024 Losses of devaluation of asset (Loss is listed with “-”) -24234772.55 -11009739.57 Income on disposal of assets (Loss is listed with “-”) 3044.16 1382274.00 II. Operating profit (Loss is listed with “-”) 276471172.18 377581769.26 Add: Non-operating income 594900.34 1740921.86 Less: Non-operating expense 3573902.82 3452240.92 III. Total Profit (Loss is listed with “-”) 273492169.70 375870450.20 Less: Income tax 19483407.70 17525416.84 IV. Net profit (Net loss is listed with “-”) 254008762.00 358345033.36(i) continuous operating net profit (net loss listed with ‘-”) 254008762.00 358345033.36(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 254008762.00 358345033.36 VII. Earnings per share: (i) Basic earnings per share 0.2466 0.3479 (ii) Diluted earnings per share 0.2466 0.3479 Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 5. Consolidated Cash Flow Statement In RMB Item 2024 2023 191Annual Report 2024 Item 2024 2023 I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 31497336084.34 25438947904.30 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 1035628999.48 637810770.31 Other cash received concerning operating activities 133495520.84 111256994.49 Subtotal of cash inflow arising from operating activities 32666460604.66 26188015669.10 Cash paid for purchasing commodities and receiving labor service 25054928387.36 20833778564.54 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 2103869806.96 1944382915.07 Taxes paid 403412758.30 571959228.25 Other cash paid concerning operating activities 1133992434.08 764985530.77 Subtotal of cash outflow arising from operating activities 28696203386.70 24115106238.63 Net cash flows arising from operating activities 3970257217.96 2072909430.47 II. Cash flows arising from investing activities: Cash received from recovering investment 13508000000.00 1290000000.00 Cash received from investment income 60849394.98 38159487.68 Net cash received from disposal of fixed intangible and other 3354735.137434757.68 long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities 196402523.43 311151134.87 Subtotal of cash inflow from investing activities 13768606653.54 1646745380.23 Cash paid for purchasing fixed intangible and other long-term assets 324899569.37 272087223.62 Cash paid for investment 15117895464.58 1531781453.97 Net increase of mortgaged loans Net cash received from subsidiaries and other units obtained 192Annual Report 2024 Item 2024 2023 Other cash paid concerning investing activities 21299366.89 116511395.99 Subtotal of cash outflow from investing activities 15464094400.84 1920380073.58 Net cash flows arising from investing activities -1695487747.30 -273634693.35 III. Cash flows arising from financing activities: Cash received from absorbing investment Including: Cash received from absorbing minority shareholders’ investment by subsidiaries Cash received from loans 2356263587.01 1923365052.15 Other cash received concerning financing activities 246479246.91 376292509.50 Subtotal of cash inflow from financing activities 2602742833.92 2299657561.65 Cash paid for settling debts 2863465327.65 1617564263.12 Cash paid for dividend and profit distributing or interest paying 337885485.36 134699226.43 Including: Dividend and profit of minority shareholder paid by 5083093.4016677010.63 subsidiaries Other cash paid concerning financing activities 110281026.17 89323864.66 Subtotal of cash outflow from financing activities 3311631839.18 1841587354.21 Net cash flows arising from financing activities -708889005.26 458070207.44 IV. Influence on cash and cash equivalents due to fluctuation in 19040332.0913436104.02 exchange rate V. Net increase of cash and cash equivalents 1584920797.49 2270781048.58 Add: Balance of cash and cash equivalents at the period -begin 8391177936.62 6120396888.04 VI. Balance of cash and cash equivalents at the period -end 9976098734.11 8391177936.62 Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 6. Cash Flow Statement of Parent Company In RMB Item 2024 2023 I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor 10717024476.328764645288.77 services Write-back of tax received 482117381.83 219064162.92 Other cash received concerning operating activities 60704809.80 39429001.18 Subtotal of cash inflow arising from operating activities 11259846667.95 9023138452.87 Cash paid for purchasing commodities and receiving labor service 9054439591.12 7020255494.88 Cash paid to/for staff and workers 555653802.87 555776356.25 Taxes paid 64481802.14 130615286.70 Other cash paid concerning operating activities 320519228.73 247010356.89 Subtotal of cash outflow arising from operating activities 9995094424.86 7953657494.72 Net cash flows arising from operating activities 1264752243.09 1069480958.15 II. Cash flows arising from investing activities: 193Annual Report 2024 Cash received from recovering investment 6888000000.00 170094761.15 Cash received from investment income 73566793.59 252919498.24 Net cash received from disposal of fixed intangible and other 528490.004023955.68 long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities 76881804.89 92192116.86 Subtotal of cash inflow from investing activities 7038977088.48 519230331.93 Cash paid for purchasing fixed intangible and other long-term 165621042.85145165539.29 assets Cash paid for investment 8091282909.96 239391719.60 Net cash received from subsidiaries and other units obtained Other cash paid concerning investing activities 5392311.69 54598530.06 Subtotal of cash outflow from investing activities 8262296264.50 439155788.95 Net cash flows arising from investing activities -1223319176.02 80074542.98 III. Cash flows arising from financing activities: Cash received from absorbing investment Cash received from loans 2023749317.81 1917365052.15 Other cash received concerning financing activities 5141249.61 191861996.18 Subtotal of cash inflow from financing activities 2028890567.42 2109227048.33 Cash paid for settling debts 2555295723.05 1433564263.12 Cash paid for dividend and profit distributing or interest paying 322879236.79 115586128.29 Other cash paid concerning financing activities 49918200.78 52320157.85 Subtotal of cash outflow from financing activities 2928093160.62 1601470549.26 Net cash flows arising from financing activities -899202593.20 507756499.07 IV. Influence on cash and cash equivalents due to fluctuation in -6776238.151866961.18 exchange rate V. Net increase of cash and cash equivalents -864545764.28 1659178961.38 Add: Balance of cash and cash equivalents at the period -begin 4746147736.99 3086968775.61 VI. Balance of cash and cash equivalents at the period -end 3881601972.71 4746147736.99 Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 194Annual Report 2024 7. Statement of Changes in Owners’ Equity (Consolidated) This Period In RMB 2024 Owners’ equity attributable to the parent Company Other equity instrument Less: Perp Capi Other Reaso Provis Item Inve etual tal compreh nable Surplus ion of Retained Minority interests Total owners’ equity Share capital Prefe ntory Other Subtotal capit Othe reser ensive reserv reserve gener profit rred share al r ve income e al risk stock s secur ities I. The ending 280 balance of 11246102992371 550 -207043 477053194.8 15217598 5824782654.0 811.9369252132.376194034786.46 the 5.00 345 62.05 2 36.64 9 7.77 previous year Add: Changes of accountin g policy Error correction of the last period Enterprise combine 195Annual Report 2024 under the same control 320 000-83444712. Other 236555287.30 236555287.30 000.70 00 II. The beginning 312 11246 102992371550-207043477053194.8143831516061337941.3 balance of 811.9 369252132.37 6430590073.76 5.0034562.05223.949 the current 1 7.77 year III.Increase/ Decrease -375 in the 9721 033 -518057. 361.636489206124462998.9921310298.6745773297.66 period 242. 63 25400876.20 8.12 38 (Decrease is listed with “-”) (i) Total comprehe -518057. 699270051698751994.1925450264.29724202258.48 nsive 63.82 income (ii) Owners’ -375 devoted 033 -375033242.38 and 242. -375033242.38 38 decreased capital 1.Commo 196Annual Report 2024 n shares invested by sharehold ers 2. Capital invested by holders of other equity instrument s 3. Amount reckoned into owners equity with share-base d payment -375 033 4. Other -375033242.38 242.-375033242.38 38 (iii) Profit distributio -33437799 -5083093.40 -314060207.90 25400876.20-308977114.50 n 0.70 1. Withdraw -25400876.al of 25400876.20 20 surplus 197Annual Report 2024 reserves 2. Withdraw al of general risk provisions 3. Distributi on for -30897711-5083093.40-314060207.90 owners (or -308977114.50 4.50 sharehold ers) 4. Other (iv) Carrying forward internal owners’ equity 1. Capital reserves conversed to capital (share capital) 2. Surplus reserves conversed to capital 198Annual Report 2024 (share capital) 3. Remedyin g loss with surplus reserve 4. Carry-ove r retained earnings from the defined benefit plans 5. Carry-ove r retained earnings from other comprehe nsive income 6. Other (v) 9721 Reasonabl 361.6 9721361.68 943127.78 10664489.46 e reserve 8 1.4041 5747.40415747.601758422.5142174170.11 Withdraw 60 199Annual Report 2024 al in the report period 2. Usage in the 3069 4385.30694385.92815294.7331509680.65 report 92 period (vi) Others IV. 275 2096 Balance at 102992371 047 -212224 8173.502454071.0180320716085800940.3390562431.046476363371.42 the end of 5.00 021 19.68 59285.068 the period 5.39 Last Period In RMB 2023 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 102 280 2467 992649-208814441201471.9909082037.65168286872. balance of the 205.7 370748395.26 5539035267.35 37139062.638609 previous year 8 5.00 4.30 Error correction 17219.50 167328.13 184547.63 -8145.54 176402.09 200Annual Report 2024 of the last period Enterprise combine under the same control 320 000-78235400.8241764599.1 Other 241764599.17 000.37 00 II. The beginning 102 312 2467 992649-208814441218691.4831013964.95410236018. balance of the 205.7 370740249.72 5780976268.61 37139062.638689 current year 8 5.00 4.30 III. Increase/ Decrease in the -990 8779177100. 607301158.9 651101922.5 446.606.135834503.34-1488117.35649613805.15 period (Decrease 58 8 0 533 is listed with “-”) (i) Total 177100.735828796.6736005897.2 comprehensive 32421343.74 768427240.99 5875 income (ii) Owners’ -990 devoted and 446. -990446.53 -18627553.47 -19618000.00 decreased capital 53 1.Common shares invested by shareholders 2. Capital invested by holders of other equity instruments 3. Amount reckoned into owners equity 201Annual Report 2024 with share-based payment -990 4. Other 446. -990446.53 -18627553.47 -19618000.00 53 (iii) Profit -128527637. -92693134.3 35834503.34-16677010.63-109370144.98 distribution 69 5 1. Withdrawal of -35834503.3 35834503.34 surplus reserves 4 2. Withdrawal of general risk provisions 3. Distribution for -92693134.3-92693134.3 owners (or -16677010.63 -109370144.98 55 shareholders) 4. Other (iv) Carrying forward internal owners’ equity 1. Capital reserves conversed to capital (share capital) 2. Surplus reserves conversed to capital (share capital) 3. Remedying loss with surplus reserve 202Annual Report 2024 4. Carry-over retained earnings from the defined benefit plans 5. Carry-over retained earnings from other comprehensive income 6. Other (v) Reasonable 8779 606.18779606.131395103.0110174709.14 reserve 3 1. Withdrawal in 3127 7872.31277872.272105658.1533383530.42 the report period 27 2. Usage in the 2249 8266.22498266.14710555.1423208821.28 report period 14 (vi) Others 102312 IV. Balance at the 11246992 550 -207043 477053194.8 1438315123. 6061337941. 811.9369252132.376430590073.76 end of the period 371 345 62.05 2 94 39 1 5.007.77 Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 8. Statement of Changes in Owners’ Equity (Parent Company) This Period In RMB 2024 Other Less: Othe Surp Item Capital Reasonable Share capital equity instrument Inventory r lus Retained profit Other Total owners’ equity reserve reserve Preferred Perpetual Other shares com reser 203Annual Report 2024 stock capital preh ve securities ensi ve inco me I. The ending 476 102992371274050835 balance of the 505111.75 1294109238.10 5541881604.56 5.008510.57029. previous year 14 Add: Changes of accounting policy Error correction of the last period Other II. The 476 beginning 102992371 274050 835 505111.751294109238.105541881604.56 balance of the 5.00 8510.57 029. 14 current year III. Increase/ Decrease in the period 254-13873 -505111.75008-80369228.70-194206442.08 (Decrease is 2977.83 76.2 listed with 0 “-”) (i) Total comprehensiv 254008762.00 254008762.00 e income (ii) Owners’ -13873 -138732977.83 devoted and 2977.83 204Annual Report 2024 decreased capital 1.Common shares invested by shareholders 2. Capital invested by holders of other equity instruments 3. Amount reckoned into owners equity with share-based payment -13873 4. Other -138732977.83 2977.83 (iii) Profit 254 008-334377990.70-308977114.50 distribution 76.2 0 1. Withdrawal 254 of surplus 008 -25400876.20 reserves 76.2 0 2. Distribution for owners (or -308977114.50 -308977114.50 shareholders) 3. Other 205Annual Report 2024 (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 comprehensiv e income 206Annual Report 2024 6. Other (v) Reasonable -505111.75 -505111.75 reserve 1. Withdrawal in the report 10305674.40 10305674.40 period 2. Usage in the report 10810786.15 10810786.15 period (vi) Others IV. Balance at 502 102992371260177 the end of the 235 1213740009.40 5347675162.48 5.005532.74 period 905. 34 Last period In RMB 2023 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 balance of the 102992371 274050 687069.3 440983 1064136866.98 5276239468.23 previous year 5.00 8510.57 8 306.30 Add: Changes of accounting 17219.5 154975.45 172194.95 policy 0 207Annual Report 2024 Error correction of the last period Other II. The beginning 102992371274050687069.34410001064291842.435276411663.18 balance of the 5.008510.578525.80 current year III. Increase/ Decrease in the period -181957.358345229817395.67265469941.38 (Decrease is 6303.34 listed with “-”) (i) Total comprehensiv 358345033.36 358345033.36 e income (ii) Owners’ devoted and decreased capital 1.Common shares invested by shareholders 2. Capital invested by holders of other equity instruments 208Annual Report 2024 3. Amount reckoned into owners equity with share-based payment 4. Other (iii) Profit 358345-128527637.69-92693134.35 distribution 03.34 1. Withdrawal of surplus 358345 -35834503.34 reserves 03.34 2. Distribution for owners (or -92693134.35 -92693134.35 shareholders) 3. Other (iv) Carrying forward internal owners’ equity 1. Capital reserves conversed to capital (share capital) 2. Surplus reserves conversed to capital (share 209Annual Report 2024 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. -181957.63 reserve 63 1. Withdrawal in the report 8557762. 8557762.79 period 79 2. Usage in the report 8739720. 8739720.42 period 42 (vi) Others IV. Balance at the end of the 102992371 274050 505111.7 476835 1294109238.10 5541881604.56 period 5.00 8510.57 5 029.14 210Annual Report 2024 Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Hu Xiangfei 211Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （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 asHefei 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 GuoziChanquan (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 AnhuiProvincial Government replied with Document [WGZCQH (2007) No.309] Reply on “RelatedMatters of Share Merger Reform 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-tradable shareholders by original Meiling Group in share reform) held by originalMeiling Group the “Notice of Freely Transfer of Meiling Electrics Equity held by MeilingGroup”[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 ChanghongGroup 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 Freely of Part of the Shares of Hefei Meiling Co. Ltd.held by State-owned shareholders” [GZCQ (2008) No. 1413] issued by SASAC agrees the above said share transferring.On 24 December 2010 being deliberated and approved in 32nd Session of 6th BOD and 2nd Extraordinary 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 212Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 HuashenZhengda 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 AnlianXinda 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 ofChina Securities Regulatory Commission [CSRC License No. (2016) 1396] “Reply to theapproval 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 2024 total share capital of the Company amounting to 1029923715shares with ordinary shares in full. Among which 881733881 shares of A-share accounting 85.61% in total shares while B-share with 148189834 shares accounting 14.39% in total shares. Specific capital structure is as follows: Type of stock Quantity Proportion (I)Restricted shares 6154085 0.60 1. State-owned shares 213Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Type of stock Quantity Proportion 2. State-owned legal person’s shares 1141053 0.11 3. Other domestic shares 5013032 0.49 Including: Domestic legal person’s shares 3363539 0.33 Domestic natural person’s shares 1649493 0.16 4. Foreign shares (II)Unrestricted shares 1023769630 99.40 1. RMB Ordinary shares 875579796 85.01 2. Domestically listed foreign shares 148189834 14.39 3. Overseas listed foreign shares 4. Others Total shares 1029923715 100.00 The Company belongs to the manufacture of light 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 April 1 2025.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 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. 214Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 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 2024 as well as the operating results and cash flow in 2024. 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 standard materiality standards The single accrual amount accounts for 10% of the total bad debt Material receivables with bad debt provision accrued provision of various receivables and is more than RMB 50 individually million Material amount recovered or reversed from bad debt The single amount recovered or reversed accounts for more than provision of receivables in this period 10% of the total receivables and is more than RMB 50 million The single write-off amount accounts for more than 10% of the Actual write-off of material receivables total bad debt provision of various receivables and is more than RMB 50 million The change in book value of contract assets accounts for more Significant change has taken place in the book value of than 30% of the balance of contract assets at the beginning of the the contract assets period The change in book value of contractual liabilities accounts for Significant change has taken place in the book value of more than 30% of the balance of contractual liabilities at the contractual liabilities beginning of the period Contractual liabilities with a single aging of more than one year Material contractual liabilities with an age of more than account for more than 10% of the total contractual liabilities and one year are more than RMB 50 million Payables with a single aging of more than one year account for Material payables more than 5% of the total payables and are more than RMB 100 million Other payables with a single aging of more than one year account Other material payables for more than 5% of the total amount of other payables and are more than RMB 50 million Material construction in progress The budget of a single project is more than RMB 100 million Material capitalized R&D projects The ending balance of a single project accounts for more than 215Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Matters disclosed involving the judgment by Determination method and selection basis of importance standard materiality standards 10% of the ending balance of development expenditure and is more than RMB 10 million The cash received from or paid for a single investment activity Important investment activities accounts for more than 10% of the total inflow or outflow and is more than RMB 100 million The net assets of subsidiaries account for more than 1% of the Important non-wholly-owned subsidiaries Company's net assets The book value of the long-term equity investment in a single investee accounts for more than 1% of the Company's net assets An important cooperative enterprise or joint venture and is more than RMB 50 million or the investment profit and loss under the long-term equity investment method accounts for more than 1% of the Company's consolidated net profit It does not involve the current cash receipts and payments and Major activities not involving current cash receipts and the impact on the current statements is greater than 10% of the net payments 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 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. 216Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 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 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 217Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 remeasure 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. 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 218Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)losses arising from such transaction attributable to other participators of the jointly controlled entity is only recognized. 9.Cash and cash equivalents Cash comprises cash on hand and deposits that can be readily withdrawn on demand.Cashequivalents include short-term (generally within three months of maturity at acquisition)highly liquid investments that are readily convertible into known amounts of cashandwhichare subject to an insignificant risk of changes 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 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 219Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 220Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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.* Evaluate expected credit losses based on individual items: credit notes receivable (including accepted letters of credit) of financial institutions in notes receivable and accounts receivable and related party payments (related parties under the same control and significant related parties); dividends receivable interest receivable reserve funds investment loans cash deposits (including warranty) government grants (including dismantling subsidies) in other receivables and receivables with significant financing components (i.e. long-term receivables); * 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 221Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)cash flow shortage is directly written down the book balance of the financial asset.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 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. 222Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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.* 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 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 223Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 if the tools existing 224Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 225Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 226Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 227Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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.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 228Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 4.00-5.00 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.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 229Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 Category Depreciation term Depreciation rate per year value House and buildings 30-40 years 4%-5% 2.375%-3.20% Machinery equipment 10-14 years 4%-5% 6.786%-9.60% Transport equipment 5-12 years 4%-5% 7.92%-19.20% 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 230Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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.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 231Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 232Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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. 233Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 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 payment. 234Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 235Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 236Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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; 4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer; 5) The customer has accepted the goods or services etc. The Company’s right to receive consideration for goods or services that have been transferred to customers are presented as contractual assets which are impaired on the basis of expected credit losses. The Company’s unconditional right to receive consideration from customers is shown as a account receivable. The obligation to transfer goods or services to customers for which the Company has received consideration receivable from them is shown as a contractual liability.Specific methods of income recognition: 1. Income from transfer of commodities For the commodities sold between the Company and customers income is usually recognized at the time when the control right of the commodities is transferred based on comprehensive consideration of the factors such as obtaining the current right to collect the commodity payment the transfer of the main risks and rewards in the ownership of the commodities the transfer of the legal ownership of the commodities the transfer of the physical assets of the commodities and the acceptance of the commodities by the customers. For the goods picked up by the merchants themselves the income is recognized when the goods are picked up; For the goods delivered by logistics the income is recognized when the goods are delivered at the merchant for signing; For the sales business with consignment characteristics according to the contract the income is recognized when the merchant provides the commodity settlement list; For the sales business through online sales channels when the commodities are delivered to customers for receipt it is regarded as the 237Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)main risk and rewards on the ownership of the commodities are transferred and the realization of the sales income of the commodities is recognized; With regard to export income according to the contract after the goods are delivered to the port or place designated by the customer or to the carrier designated by the customer and the customs declaration is passed the income is recognized. 2. Income from providing labor services For the quality assurance service the service has been provided according to the contract and the income is recognized when the payment is received or the documents (including the amount) signed by the customer are obtained (unless it is indicated that it is not a condition for income recognition); For technical development service the service has been provided according to the contract and the income is recognized according to the business recognition documents of both parties; For other engineering services the income is recognized by stages according to the project performance progress and the performance progress is determined according to the output method. 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. 238Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 239Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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. 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 240Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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. (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 241Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 242Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 (1) Changes in accounting policies caused by changes in accounting standards for business enterprises 1) Since January 1 2024 the company has implemented the provisions of "Division of Current Liabilities and Non-current Liabilities" stipulated in the Interpretation No.17 of Accounting Standards for Business Enterprises promulgated by the Ministry of Finance and this accounting policy change has no impact on the company's financial statements. 2) Since January 1 2024 the Company has implemented the provisions of "Disclosure of Supplier Financing Arrangements" in Interpretation No.17 of Accounting Standards for Business Enterprises promulgated by the Ministry of Finance. See V (4) 3 for the specific disclosure impact. 3) Since January 1 2024 the company has implemented the provisions of "Accounting Treatment of After-sale Leaseback Transactions" stipulated in the Interpretation No.17 of Accounting Standards for Business Enterprises promulgated by the Ministry of Finance and this accounting policy change has no impact on the Company's financial statements. 4) Since January 1 2024 the Company has implemented the provisions of"Accounting Treatment for Guaranteed Quality Assurance that is not a single performance obligation" stipulated in the Interpretation No.18 of Accounting Standards for Business Enterprises promulgated by the Ministry of Finance and made retrospective adjustments to the information in comparable periods.The impact of implementing the above accounting policies on the consolidated income statement for the year 2023 is as follows: Report items significantly affected Consolidated report impact Individual reports of the parent amount company affect the amount 2023 Annual Income Statement Items Operating cost 148752958.42 20592252.94 243Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Sale cost -148752958.42 -20592252.94 Relevant accounting policy changes have been approved at the 12th meeting of the 11th Board of Directors of the Company IV. Taxation 1. Major taxes and tax rates Tax (expenses) Tax (expenses) base Tax (expenses) rate The output tax is calculated based on the income from sales of goods and taxable services calculated according to the VAT provisions of the tax law. After deducting the input tax 13%9%6%5%3% allowed to be deducted in the current period the difference is the VAT taxable In case of ad valorem it will be levied according to 1.2% of the residual value after deducting 30% from the original House Property Tax 1.2%、12% value of the property; In case of rent-based collection it will be levied according to 12% of the rental income Land use tax Actual land area used 1-6 yuan/㎡ Urban maintenance Turnover tax 7%5% and construction tax Education surcharge Turnover tax 3% Local education Turnover tax 2% surcharge Corporate income tax Taxable income 29%25%22%20%15% Description of taxpayers with different corporate income tax rates: Name Income tax rate The Company 15.00% Zhongke Meiling Cryogenic Technology Co. Ltd. 15.00% Zhongshan Changhong Electric Co. Ltd. 15.00% Sichuan Hongmei Intelligent Technology Co. Ltd. 15.00% Mianyang Meiling Refrigeration Co. Ltd. 15.00% Ground Energy Heat Pump Tech. (Zhongshan) Co. Ltd. 15.00% Hefei Meiling Nonferrous Metal Products Co. Ltd. 15.00% Jiangxi Meiling Electric Appliance Co. Ltd. 15.00% Sichuan Changhong Air-conditioner Co. Ltd. 15.00% Hefei Meiling Wulian Technology Co. Ltd 15.00% 244Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Name Income tax rate Anhui Tuoxing Technology Co. Ltd. 20.00% Guangzhou Changhong Trading Co. Ltd. 20.00% Hebei Hongmao Daily Appliance Technology Co. Ltd. 20.00% CH-Meiling International (Philippines) Inc. 20.00% Changhong Ruba Trading Company (Private) Limited 29.00% CHANGHONG MEILING ELECTRIC INDONESIAPT 22.00% Other taxpayers except the above 25.00% 2. Preferential tax 1.Corporate income tax (1) On November 30 2023 the Company passed the high-tech enterprise certification and obtained the high-tech enterprise certificate numbered GR2020340006385 and shall enjoy the national high-tech enterprise income tax rate of 15% which is valid for three years. (2) On October 16 2023 the subsidiary Zhongke Meiling Cryogenic Technology Co. Ltd. obtained the high-tech enterprise certificate numbered GR202334003036 approved by the Anhui Provincial Department of Science and Technology the Anhui Provincial Department of Finance and the Anhui Provincial Taxation Bureau of the State Administration of Taxation and shall enjoy the 15% enterprise income tax rate of the national high-tech enterprise which is valid for three years. (3) On December 28 2023 the subsidiary Zhongshan Changhong Electric Appliance Co. Ltd. obtained a high-tech enterprise certificate with a certificate number of GR202344012950 approved by the Guangdong Provincial Department of Science and Technology the Guangdong Provincial Department of Finance and the Guangdong Provincial Taxation Bureau of the State Administration of Taxation and shall enjoy a national enterprise income tax rate of 15% for high-tech enterprises which is valid for three years (4) On December 6 2024 the subsidiary Sichuan Hongmei Intelligent Technology Co. Ltd. obtained the high-tech enterprise certificate with a certificate number of GR202451002000 approved by the Science and Technology Department of Sichuan Province the Finance Department of Sichuan Province and the Sichuan Provincial Tax Service State Taxation Administration and was entitled to the income tax rate of 15% for national high-tech enterprises for a period of three years. (5) The subsidiary Mianyang Meiling Refrigeration Co. Ltd. belongs to the encouraged industries listed in the Guidance Catalogue of Industrial Structure Adjustment and is entitled to the 245Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)preferential tax policy of enterprise income tax for the development of the western region and its enterprise income tax is levied at a reduced rate of 15% which is valid until December 31 2030. (6) On December 22nd 2022 the subsidiary Hongyuan Ground Energy Heat Pump Technology (Zhongshan) Co. Ltd. obtained the high-tech enterprise certificate with a certificate number of GR202244005222 approved by the Department of Science and Technology of Guangdong Province Department of Finance of Guangdong Province and Guangdong Provincial Tax Service State Taxation Administration and was entitled to the enterprise income tax rate of 15% for national high-tech enterprises for a period of three years. (7) On November 28 2024 the subsidiary Hefei Meiling Non-ferrous Metal Products Co. Ltd. obtained the high-tech enterprise certificate with a certificate number of GR202434004167 approved by Anhui Provincial Department of Science and Technology Anhui Provincial Department of Finance and Anhui Provincial Taxation Service State Taxation Administration and was entitled to the income tax rate of 15% for national high-tech enterprises for a period of three years. (8) On November 4 2022 the subsidiary Jiangxi Meiling Electric Appliance Co. Ltd. obtained the high-tech enterprise certificate with a certificate number of GR202236000475 approved by Science and Technology Department of Jiangxi Province Jiangxi Provincial Department of Finance and Jiangxi Tax Service State Taxation Administration and was entitled to the income tax rate of 15% for national high-tech enterprises for a period of three years. (9) On November 29 2022 the subsidiary Sichuan Changhong Air Conditioning Co. Ltd. obtained the high-tech enterprise certificate with a certificate number of GR202251005824 approved by Science and Technology Department of Sichuan Province Sichuan Provincial Finance Department and State Taxation Administration and was entitled to the income tax rate of 15% for national high-tech enterprises for a period of three years. (10) On November 28 2024 the subsidiary Hefei Meiling IOT Technology Co. Ltd. obtained the high-tech enterprise certificate with a certificate number of GR202434004986 approved by Anhui Provincial Department of Science and Technology Anhui Provincial Department of Finance and Anhui Provincial Taxation Service State Taxation Administration and was entitled to the income tax rate of 15% for national high-tech enterprises for a period of three years. (11) According to the Announcement of the Ministry of Finance and the State Taxation Administration on Further Supporting the Development of Tax and Fee Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households (Announcement No.12 of the Ministry of Finance and the State Taxation Administration in 2023) "The taxable income of small and low-profit enterprises will be reduced by 25% and the enterprise income tax policy will be paid at a rate of 20% which will be implemented until December 31 2027". The subsidiaries 246Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Anhui Tuoxing Technology Co. Ltd. Guangzhou Changhong Trading Co. Ltd. and Hebei Hongmao Household Appliance Technology Co. Ltd. applied the above preferential policies this year. 2.VAT (1) According to the Announcement of the Ministry of Finance and the State Taxation Administration on the Policy of Adding and Deducting VAT for Advanced Manufacturing Enterprises (Announcement No.43 of the Ministry of Finance and the State Taxation Administration in 2023) additional VAT payable of 5% will be deducted according to the deductible input tax in the current period for advanced manufacturing enterprises from January 1 2023 to December 31 2027.The Company and its subsidiaries Zhongke Meiling Cryogenics Technology Co. Ltd. Zhongshan Changhong Electric Co.Ltd. Hongyuan Ground Energy Heat Pump Technology (Zhongshan) Co.Ltd. Hefei Meiling Non-ferrous Metal Products Co. Ltd. Jiangxi Meiling Electric Appliance Co.Ltd. and Sichuan Changhong Air Conditioning Co. Ltd. applied the above preferential policies. (2) According to the Notice of the Ministry of Finance and the State Taxation Administration on the VAT Policy of Software Products (CS [2011] No.100) for sales by general VAT taxpayers of the software products developed and produced by themselves after the VAT is levied at the rate of 13% the part whose actual VAT tax exceeds 3% will be refunded immediately. The subsidiaries Zhongke Meiling Cryogenics Technology Co. Ltd. and Sichuan Hongmei Intelligent Technology Co. Ltd. applied the above preferential policies.V.Consolidated financial statement item notes 1. Monetary fund Item Ending balance Beginning balance Cash 19623.13 15600.68 Bank deposit 5430927146.17 4160140914.47 Other monetary fund 492614908.35 427457768.37 Deposit funds from the financial company 4568889072.96 4255008952.20 Total 10492450750.61 8842623235.72 Including: total amount deposited in overseas 39440542.18 25902580.15 2. Tradable financial assets Item Ending Balance Beginning Balance Financial assets measured at fair value and whose changes 39236447.63 are included in current gains/losses Including: Derivative financial assets 39236447.63 247Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Ending Balance Beginning Balance Total 39236447.63 3. Derivative financial assets project Ending Balance Beginning Balance forward exchange contract 72010074.43 total 72010074.43 4. Note receivable (1) Detail Item Ending Balance Beginning Balance Bank acceptance 228500.00 Trade acceptance 38674.50 Total 267174.50 (2) By accrual of bad debt provision 1) Detail Beginning balance Category Book balance Bad debt provision Book value Amount Ratio (%) Amount Ratio (%) With bad debt provision accrual 267174.50100.00267174.50 on single item Including: Bank acceptance 228500.00 85.52 228500.00 Trade acceptance 38674.50 14.48 38674.50 Subtotal 267174.50 100.00 267174.50 Account receivable withdrawal bad debt provision by portfolio Total 267174.50 100.00 267174.50 5. 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） 1497253392.98 1653598197.84 Including： 248Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Account age Balance at year-end Balance at year-begin Within 3 months (3 months included) 1368463315.70 1465495273.51 More than 3 months and less than 6 months (6 months 97181265.60140402241.40 included) Over 6 months and within one year (One year included) 31608811.68 47700682.93 Over one year - within 2 years (2 years included) 75307523.19 131382522.20 Over 2 years - within 3 years (3 years included) 87182259.34 154167214.15 Over 3 years 188612629.93 76295036.77 Total 1848355805.44 2015442970.96 (2) By accrual of bad debt provision 1) Detail Balance at year-end Book balance Bad debt provision Category Ratio Ratio Book value Amount Amount (%)(%) Account receivable that withdrawal bad debt provision 736905399.87 39.87 174360359.87 23.66 562545040.00 by single item Including: Account receivable 204543428.3611.07204543428.36 with letter of credit Current payment with related 485828526.6726.28129934772.0726.74355893754.60 party Receivables whose single amount is not significant but 46533444.842.5244425587.8095.472107857.04 whose single provision for bad debts Account receivable withdrawal 1111450405.5760.13146017071.0913.14965433334.48 bad debt provision by portfolio Including: account receivable of 185634242.2410.0454756852.9029.50130877389.34 engineering customers Receivables other than 925816163.3350.0991260218.199.86834555945.14 engineering customers Total 1848355805.44 100.00 320377430.96 17.33 1527978374.48 Continued Amount at year-begin Category Book balance Bad debt provision Book value 249Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Ratio Ratio Amount Amount (%)(%) Account receivable that withdrawal bad debt provision 712659116.51 35.36 195578324.84 27.44 517080791.67 by single item Including: Account receivable 83951301.014.1783951301.01 with letter of credit Current payment with related 575373568.9328.55154606151.9826.87420767416.95 party Receivables whose single amount is not significant but 53334246.572.6540972172.8676.8212362073.71 whose single provision for bad debts Account receivable withdrawal 1302783854.4564.64139561406.0310.711163222448.42 bad debt provision by portfolio Including: account receivable of 212621463.4510.5544910916.5021.12167710546.95 engineering customers Receivables other than 1090162391.0054.0994650489.538.68995511901.47 engineering customers Total 2015442970.96 100.00 335139730.87 16.63 1680303240.09 2) Receivables whose single amount is not significant but whose single provision for bad debts Receivables whose single amount is not significant but whose single provision for bad debts refers to the minor single receivables and withdrawal bad debt provision by combination shows no risk characteristic of the receivables 116 clients involved. 3) 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 25327660.33 included) More than 3 months and less than 6 14901434.29 months (6 months included) Over 6 months and within one year 28923666.97 (One year included) Over one year - within 2 years (2 56974354.6111394870.9320.00 years included) Over 2 years - within 3 years (3 32290288.1516145144.0850.00 years included) Over 3 years 27216837.89 27216837.89 100.00 Total 185634242.24 54756852.90 29.50 250Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Continued Balance at year-begin Account age Book balance Bad debt provision Provision ratio (%) Within 3 months (3 months 33502386.39 included) More than 3 months and less than 6 29638184.67 months (6 months included) Over 6 months and within one year 29724507.75 (One year included) Over one year - within 2 years (2 71526399.7014305279.9420.00 years included) Over 2 years - within 3 years (3 35248696.7717624348.3950.00 years included) Over 3 years 12981288.17 12981288.17 100.00 Total 212621463.45 44910916.50 21.12 B.Receivables other than engineering customers Balance at year-end Account age Book balance Bad debt provision Provision ratio (%) Within 3 months (3 months 832210142.168322101.421.00 included) More than 3 months and less than 6 8867933.33886793.3310.00 months (6 months included) Over 6 months and within one year 2545036.25509007.2520.00 (One year included) Over one year - within 2 years (2 1083159.99541580.0050.00 years included) Over 2 years - within 3 years (3 545777.06436621.6580.00 years included) Over 3 years 80564114.54 80564114.54 100.00 Total 925816163.33 91260218.19 9.86 Continued Balance at year-begin Account age Book balance Bad debt provision Provision ratio (%) Within 3 months (3 months 940622126.919406221.281.00 included) More than 3 months and less than 6 42030490.134203049.0110.00 months (6 months included) Over 6 months and within one year 9463055.001892611.0020.00 (One year included) 251Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Balance at year-begin Account age Book balance Bad debt provision Provision ratio (%) Over one year - within 2 years (2 2765533.981382766.9950.00 years included) Over 2 years - within 3 years (3 87576718.6170061374.8880.00 years included) Over 3 years 7704466.37 7704466.37 100.00 Total 1090162391.00 94650489.53 8.68 C. Bad debt provision of accounts receivable 1) Detail Changes this year Balance at Resal Balance at Category year-begin Withdrawal or e or Other Accrual year-end reversal write- decreases off Withdrawal bad debt 195578324.847394931.7728600649.28-12247.46174360359.87 provision by single item Withdrawal bad debt 139561406.036212365.75243299.31146017071.09 provision by portfolio Total 335139730.87 13607297.52 28600649.28 231051.85 320377430.96 2) Recovery or reversal of important bad debt reserves in this period Basis and rationality of Amount recovered or Reason for Unit name Recovery mode determining the original reversed reversal provision for bad debts Mainly due to recovery of bad Sichuan Zhiyijia Network Payment Customer debts accrued in the early 26402499.40 Technology Co. Ltd. recovery repayment period due to the deterioration of Gome's business Subtotal 26402499.40 (4) Account receivable actually written-off in Current Year N/A (5) Top 5 accounts receivable and contract assets amount Top 5 receivables collected by arrears party amounting to 587980658.36yuan in total accounted 252Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)for 31.76% of the receivables of current year-end the bad debt provision accrual correspondingly amounting to 90080165.99 yuan at year-end balance. 6. Receivables financing (1) Detail Item Ending balance Opening balance Bank acceptance 1482928143.55 1641858740.34 Financial company acceptance bill 34059810.28 Total 1516987953.83 1641858740.34 (2) By accrual of bad debt provision Ending balance Book balance Bad debt provision Category Ratio Book value Amount Ratio (%) Amount (%) Withdrawal bad debt 1516987953.83100.001516987953.83 provision by single item Including： Bank 1482928143.55 97.75 1482928143.55 acceptance Financial company 34059810.282.2534059810.28 acceptance bill Total 1516987953.83 100.00 1516987953.83 Continued Balance at year-begin Book balance Bad debt provision Category Ratio Book value Amount Ratio (%) Amount (%) Withdrawal bad debt provision by 1641858740.34 100.00 1641858740.34 single item Including：Bank 1641858740.34100.001641858740.34 acceptance Total 1641858740.34 100.00 1641858740.34 253Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) (3) Changes in credit impairment provisions 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 584233204.78 Subtotal 584233204.78 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. 26. 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 Item Amount derecognition at period-end Bank acceptance 804812890.67 Financial company acceptance bill 6118683.00 Total 810931573.67 7. Accounts paid in advance (1) Age of account paid in advance Ending balance Aging Provision for Book balance Ratio(%) Book value impairment 59929582.8399.3059929582.83 Within one year 1-2 years 266216.81 0.44 266216.81 2-3 years 47912.63 0.08 47912.63 108633.000.18108633.00 Over 3 years Total 60352345.27 100.00 60352345.27 Continued Opening balance Aging Provision for Book balance Ratio(%) Book value impairment 43346277.8894.6543346277.88 Within one year 1-2 years 811122.73 1.77 811122.73 2-3 years 707919.39 1.55 707919.39 254Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Opening balance Aging Provision for Book balance Ratio(%) Book value impairment 930855.022.03930855.02 Over 3 years Total 45796175.02 100.00 45796175.02 (2) Top 5 of account paid in advance Top 5 of account paid in advance in balance at period-end amounting to 48658243.44 yuan accounted for 80.62% of the account. 8. Other account receivable (1) Detail Ending balance Ending balance Opening balance Dividend receivable 12124951.70 Other account receivable 123266319.09 100159876.70 Total 135391270.79 100159876.70 (2) Dividend receivable Ending balance Ending balance Opening balance Sichuan Zhiyijia Network Technology Co. Ltd. 11849751.70 Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise 275200.00 (Limited Partnership Subtotal 12124951.70 (3) Other receivable 1)) Category of other account receivable Nature Book balance at year-end Book balance at year-begin Loans of employee’s pretty cash 15452988.04 21047009.96 Cash deposit 11343322.56 20927726.52 Export rebate 95274068.20 41300752.20 Related party 3020490.22 17748842.07 Other 1327326.50 2195851.43 Subtotal 126418195.52 103220182.18 2) By account age 255Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Account age Balance at year-end Balance at year-begin Within 3 months 112225289.22 77938073.75 More than 3 months and less than 6 months 787433.33 1842273.09 Over 6 months and within one yea 3137720.39 12066909.96 1-2 years 2433214.96 3017092.43 2-3 years 2216446.08 2473240.42 Over 3 years 5618091.54 5882592.53 Subtotal 126418195.52 103220182.18 3) By accrual of bad debt provision Amount at year-end Category Book balance Bad debt provision Book value Amount Ratio (%) Amount Ratio (%) That withdrawal bad debt 126192156.34 99.82 3057306.45 2.42 123134849.89 provision by single item In which: other receivables with 27897597.92 22.07 3057306.45 10.96 24840291.47 no major individual amount but bad debt provision accrued individually Export rebate receivable 95274068.20 75.36 95274068.20 Related party funds 3020490.22 2.39 3020490.22 Bad debt provision accrued by 226039.18 0.18 94569.98 41.84 131469.20 portfolio In which: other receivables 226039.18 0.18 94569.98 41.84 131469.20 accrued by aging portfolio Total 126418195.52 100.00 3151876.43 2.49 123266319.09 Continued Balance at year-begin Category Book balance Bad debt provision Book value Amount Ratio (%) Amount Ratio (%) That withdrawal bad debt 102904714.1699.702945873.362.8699958840.80 provision by single item In which: other receivables with no major individual amount but 43855119.8942.492945873.366.7240909246.53 bad debt provision accrued individually 256Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Balance at year-begin Category Book balance Bad debt provision Book value Amount Ratio (%) Amount Ratio (%) Export rebate receivable 41300752.20 40.01 41300752.20 Related party funds 17748842.07 17.20 17748842.07 Bad debt provision accrued by 315468.020.30114432.1236.27201035.90 portfolio In which: other receivables 315468.020.30114432.1236.27201035.90 accrued by aging portfolio Total 103220182.18 100.00 3060305.48 2.96 100159876.70 4) Changes in bad debt provisions * Detail First stage Second stage Third stage Expected credit loss for Bad debt provision Expected credit Expected credit loss for the whole duration Subtotal loss in next 12 the whole duration (no (credit impairment has months credit impairment) occurred) Balance at year-begin 181.49 58484.21 3001639.78 3060305.48 Balance at year-begin in —————— Current Year --Transfer to the second stage -- Transfer to the third stage -- Reversal to the second stage -- Reversal to the first stage Provision in Current Year 5749.78 -36079.13 132367.51 102038.16 Reversal in Current Year 10467.21 10467.21 Write off in Current Year Other change Balance at year-end 5931.27 22405.08 3123540.08 3151876.43 * Bad debt provision for other receivables accrued recovered or reversed this year Category Year-beginning Amount of change this year Year-end 257Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Recovery or Write-off or balance Accrual Other reversal cancellation Withdrawal bad debt provision 2945873.36 121900.30 10467.21 3057306.45 by single item Withdrawal bad debt 114432.12-19862.1494569.98 provision by portfolio Subtotal 3060305.48 102038.16 10467.21 3151876.43 5) Other account receivable actually written-off in Current Year:N/A 6) Top 5 other receivables Proportion in total Bad debt other receivables provision Name Nature Balance at year-end Account age ending balance (%) Balance at year-end Unit I Tax rebate 95274068.20 Within 3 months 75.36 Unit II Related party 2217600.00 Within 3 months 1.75 Loans of Unit III employee’s 1749678.39 Within 3 months 1.38 pretty cash Unit IV Cash deposit 1689512.96 6 months-1 year 1.34 Loans of Unit V employee’s 1492204.27 Within 3 months 1.18 pretty cash Total 102423063.82 81.01 9. Inventories (1) Detail Amount at year-end Inventory price decline Item provision/contract Book balance Book value performance cost impairment provision Raw materials 212959918.52 5083192.31 207876726.21 258Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Amount at year-end Inventory price decline Item provision/contract Book balance Book value performance cost impairment provision Low value consumable 266404.7897317.58169087.20 articles Deferred expense for mould 90498578.88 90498578.88 Stock commodities 2140311193.05 101125135.79 2039186057.26 Goods in transit 1144852004.99 9982021.26 1134869983.73 Goods-in-process 10482237.67 39214.30 10443023.37 Contract performance cost 31928661.07 4108.38 31924552.69 Total 3631298998.96 116330989.62 3514968009.34 (Continued) Opening balance Inventory price decline Item provision/contract Book balance Book value performance cost impairment provision Raw materials 150806222.67 4061217.23 146745005.44 Low value consumable 3141564.20143306.822998257.38 articles Deferred expense for mould 47131566.78 47131566.78 Stock commodities 1216312053.20 60027642.16 1156284411.04 Goods in transit 641198998.83 7934263.70 633264735.13 Goods-in-process 7337268.01 7337268.01 Contract performance cost 28988664.67 28988664.67 Total 2094916338.36 72166429.91 2022749908.45 (2) Provision for inventory depreciation and contract performance cost impairment provision 1) Detail Increase this period Decrease this period Item Opening balance Reversal or Ending balance Accrual Other Other reselling 259Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Increase this period Decrease this period Item Opening balance Reversal or Ending balance Accrual Other Other reselling Raw materials 4061217.23 3356900.39 2334925.31 5083192.31 Low value consumable 143306.82 2634.64 48623.88 97317.58 articles Stock 60027642.1676933185.8135748538.3087153.88101125135.79 commodities Goods in transit 7934263.70 16960541.01 14912783.45 9982021.26 Goods-in-proce 39214.3039214.30 ss Contract performance 121857.53 117749.15 4108.38 cost Total 72166429.91 97414333.68 53162620.09 87153.88 116330989.62 2) Specific basis for determining the net realizable value and the reasons for reversal or write-off of inventory depreciation provision in this period Reasons for the reversal or Item Specific basis for determining of net realizable value reselling in Current Period Cost is higher than net realizable value (The processed products Raw materials For production are decline) Cost is higher than net realizable value (The market price at Stock commodities For sale period-end fell) Cost is higher than net realizable value (The market price at Goods in transit For sale period-end fell) Low value Cost is higher than net realizable value Already used consumable articles Contract performance Engineering construction cost is higher than net realizable value Already used cost (The processed products are decline) 10. Contract assets (1) Detail Ending balance Item Book balance Impairment provision Book value Warranty 3226503.19 462636.22 2763866.97 Total 3226503.19 462636.22 2763866.97 260Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) (Continued) Opening balance Item Book balance Impairment provision Book value Warranty 13879087.90 617397.28 13261690.62 Total 13879087.90 617397.28 13261690.62 (2) Amount and reasons for significant changes in book value during the year Items Change amount Change cause Warranty -10497823.65 New performance sales contract Total -10497823.65 (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 3226503.19100.00462636.2214.342763866.97 provision by single Total 3226503.19 100.00 462636.22 14.34 2763866.97 Continued Amount at year-begin Category Book balance Bad debt provision Book value Amount Ratio (%) Amount Ratio (%) Withdrawal bad debt 13879087.90100.00617397.284.4513261690.62 provision by single Total 13879087.90 100.00 617397.28 4.45 13261690.62 (4) Provision for impairment of contract asset in the Period Increase this year Amount at Item Reversal or Amount at year-end year-begin Accrual Other Other reselling Withdrawal bad debt provision 617397.28 37408.05 192169.11 462636.22 by single Total 617397.28 37408.05 192169.11 462636.22 11. Non-current assets coming due within one year (1) Detail 261Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Balance at year-end Balance at year-begin Impai Name Impairment rment Book balance Book value Book balance Book value provision provis ion Creditor's right investment due within 53831301.37 53831301.37 122294027.78 122294027.78 one year Warranty money due 6531620.47120000.006411620.47 within one year Total 60362921.84 120000.00 60242921.84 122294027.78 122294027.78 (2) 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 53831301.37 53831301.37 122294027.78 122294027.78 certificates Total 53831301.37 53831301.37 122294027.78 122294027.78 (3) Creditor's right investment due within 1 year at the end of the year:NO 12.Other current asset Balance at year-end Balance at year-begin Impair Impai Item ment rment Book balance Book value Book balance Book value provisi provis on ion VAT to be 6591963.446591963.44 deducted Advance payment 38375210.1338375210.1329599620.5029599620.50 of income tax VAT input tax is to 199284116.97199284116.97193911165.30193911165.30 be deducted Contract 701222.80701222.80 acquisition cost Time deposits held 253112899.55253112899.55 to maturity Hold a large loan 54770499.4354770499.43 due 262Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Balance at year-end Balance at year-begin Impair Impai Item ment rment Book balance Book value Book balance Book value provisi provis on ion Local sales tax in 689887.41689887.41511584.19511584.19 Pakistan Deferred expenses 9205786.05 9205786.05 696290.28 696290.28 Total 562030362.98 562030362.98 225419883.07 225419883.07 13.Creditors' right investment (1) Detail Balance at year-end Item Impairment Book balance Book value provision large deposit certificates 1474153793.17 1474153793.17 Total 1474153793.17 1474153793.17 Continued Balance at year-begin Item Impairment Book balance Book value provision large deposit certificates 420537485.54 420537485.54 Total 420537485.54 420537485.54 (2) Other important creditor's right investment Balance at year-end Item Face value Interest rate Actual rate Date of expiring Overdue principal Fixed deposit 250000000.00 3.05 3.05 2027-5-24 Fixed deposit 150000000.00 2.70 2.70 2026-8-7 large deposit 150000000.003.153.152027-5-16 certificates large deposit 100000000.002.602.602027-6-21 certificates large deposit 80000000.003.353.352026-3-28 certificates Subtotal 730000000.00 Continued Item Balance at year-begin 263Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Overdue Face value Interest rate Actual rate Date of expiring principal large deposit 100000000.003.203.202026-1-31 certificates large deposit 80000000.003.353.352026-3-28 certificates large deposit 50000000.003.303.302026-6-14 certificates large deposit 50000000.003.103.102026-6-26 certificates large deposit 30000000.003.303.302026-5-31 certificates large deposit 30000000.003.203.202026-3-16 certificates large deposit 25000000.003.253.202025-8-30 certificates large deposit 25000000.003.303.202025-8-30 certificates large deposit 3.15 20000000.003.152026-7-31 certificates Subtotal 410000000.00 14. Long-term equity investment (1) Classification situation Balance at year-end Item Book balance Impairment provision Book value Associated companies 84608551.82 3097405.00 81511146.82 Total 84608551.82 3097405.00 81511146.82 Continued Balance at year-begin Item Book balance Impairment provision Book value Associated companies 112745811.75 112745811.75 Total 112745811.75 112745811.75 (2) Detail Invested Balance at year-begin Changes in Current Year 264Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)enterprise Investment Other Impairment Additional profit and loss comprehensive Book value Disinvestment provision investment confirmed by income equity method adjustment Associated companies Sichuan Zhiyijia Network 68854162.708268998.98 Technology Co.Ltd.Hefei Xingmei Assets Management 14139256.78 25235.21 Co. Ltd.Chengdu Guigu Environmental 8756262.50 -1252182.11 Tech. Co. Ltd Sichuan Tianyou Guigu Technology 2948859.23 -184548.86 Co. Ltd..Sichuan HongyunVenture 18047270.5418000000.00104729.46 Investment Partnership（LP） Hefei Xinmei Solar Energy Technology 2202871.20 Co. Ltd Changhong Ruba Electric Company (Private) Ltd.Total 112745811.75 18000000.00 9165103.88 Continued Changes in Current Year Balance at year-end Other Invested enterprise Declaration of changes Provision for Impairment cash dividends Other Book value of impairment provision or profits equity Associated companies Sichuan Zhiyijia Network 16947492.6160175669.07 Technology Co.Ltd. 265Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Changes in Current Year Balance at year-end Other Invested enterprise Declaration of changes Provision for Impairment cash dividends Other Book value of impairment provision or profits equity Hefei Xingmei Assets Management 14164491.99 Co. Ltd.Chengdu Guigu Environmental 3008655.00 4495425.39 3008655.00 Tech. Co. Ltd Sichuan Tianyou Guigu Technology 88750.00 2675560.37 88750.00 Co. Ltd..Sichuan HongyunVenture 152000.00 Investment Partnership（LP） Hefei Xinmei Solar Energy Technology 2202871.20 Co. Ltd Changhong Ruba Electric Company (Private) Ltd.Total 19302363.81 3097405.00 81511146.82 3097405.00 (3) Impairment test of long-term equity investment Impairment amount Item Book value Recoverable amount accrued in this period Chengdu Guigu Environmental Tech. Co. 7504080.394495425.393008655.00 Ltd Sichuan Tianyou Guigu Technology Co. 2764310.372675560.3788750.00 Ltd.Subtotal 10268390.76 7170985.76 3097405.00 Continued Number of years Key parameters of forecast period Key parameters of stable period Item of forecast period and their determination basis and their determination basis It is expected that liquidation will begin in July 2025 and the financial Chengdu Guigu data from the balance sheet date to the Environmental Tech. Co. Half year Not applicable liquidation time will be predicted and Ltd the future recoverable amount will be determined in combination with the 266Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Number of years Key parameters of forecast period Key parameters of stable period Item of forecast period and their determination basis and their determination basis estimated liquidation expenses It is expected that liquidation will begin in July 2025 and the financial data from the balance sheet date to the Sichuan Tianyou Guigu Half year liquidation time will be predicted and Not applicable Technology Co. Ltd.the future recoverable amount will be determined in combination with the estimated liquidation expenses Subtotal 15. Other non-current financial assets Item Ending balance Opening balance Sichuan Changhong Group Finance Co. Ltd. 556681286.83 554145436.29 Sichuan Hongyun New-Generation Information technology 30929099.25 36507860.19 Venture Capital Fund Partnership (limited partnership) Changhong Group Sichuan ShenwanHongyuan Strategic 69913918.36 68686219.00 New Industrial Parent Fund Partnership (limited partnership) Huishang Bank Co. Ltd. 18570000.00 14800000.00 Total 676094304.44 674139515.48 16. Investment real estate (1) Detail Item House and buildings Total I.Original book value Balance at year-begin 62361143.47 62361143.47 Increase in this year 35001468.95 35001468.95 1) Transfer of fixed assets 35001468.95 35001468.95 Decrease in this year Balance at year-end 97362612.42 97362612.42 Accumulated depreciation and accumulated amortization Balance at year-begin 11440655.76 11440655.76.Increase in this year 19201105.97 19201105.97 267Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 1) Withdrawal or amortization 1978095.75 1978095.75 2) Deprecation and transfer of fixed assets 17223010.22 17223010.22 Decrease in this year Balance at year-end 30641761.73 30641761.73 Book value Ending book value 66720850.69 66720850.69 Opening book value 50920487.71 50920487.71 (2) Investment real estate without property certification held Reasons for failing to complete Item Book value property rights certificate J03workshop Book value Related property rights in procedure Subtotal 17727364.92 17. Fixed assets (1) Detail Item Book value at year-end Book value at year-begin Fixed assets 2186003136.01 2259482994.04 Liquidation of fixed assets 32847524.11 32293183.76 Total 2218850660.12 2291776177.80 (2) Fixed assets (1) Detail House and Machinery Transport Item Other equipment Total buildings equipment equipment Original book value Balance at year-begin 1986815666.30 1906289172.39 36650072.30 281151364.21 4210906275.20 Increase in this year 4993904.65 189915198.45 5523240.42 48287841.75 248720185.27 1) Purchase 14959107.15 1077495.97 3987932.29 20024535.41 2) Construction in 4370084.62173874253.734445744.4544205796.63226895879.43 progress transfer-in 3) Increase in foreign 60601.7260601.72 currency translation 4) Other 623820.03 1081837.57 33511.11 1739168.71.Decrease in this year 65074297.92 87510302.36 2324801.47 10882664.08 165792065.83 1) Dispose or 60787180.53 1896962.34 9496848.24 72180991.11 268Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)House and Machinery Transport Item Other equipment Total buildings equipment equipment retirement 2) Construction in 22713498.68423333.30242796.8523379628.83 progress transfer-in 3) Transfer 35001468.9535001468.95 investment real estate 4) Decrease in foreign 4505.834505.83 currency translation 5) Other 30072828.97 4009623.15 1143018.99 35225471.11 Balance at year-end 1926735273.03 2008694068.48 39848511.25 318556541.88 4293834394.64.Accumulated depreciation.Balance at year-begin 611809867.87 1164231721.95 25939684.97 142820391.82 1944801666.61.Increase in this year 64100197.87 149702411.26 2561167.88 32276169.77 248639946.78 1) Accrual 64016036.73 148747448.58 2561167.88 32225148.78 247549801.97 2) Impact of foreign 50750.5650750.56 currency conversion 3) Other 84161.14 954962.68 270.43 1039394.25 Decrease in this year 17326275.84 63947774.21 2155790.19 8259942.26 91689782.50 1) Dispose or 53440218.781798894.858033041.4563272155.08 retirement 2) Construction in 9320907.89351895.80201080.299873883.98 progress transfer-in 3)Transfer investment 17223010.2217223010.22 real estate 4) Impact of foreign 4999.544999.54 currency conversion 5) Other 103265.62 1186647.54 25820.52 1315733.68 Balance at year-end 658583789.90 1249986359.00 26345062.66 166836619.33 2101751830.89 Impairment provision Balance at year-begin 199392.18 5378326.42 1043895.95 6621614.55 Increase in this year.Decrease in this year 524101.85 18084.96 542186.81 1) )Dispose or 516900.4418084.96534985.40 retirement 2) Other 7201.41 7201.41 269Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)House and Machinery Transport Item Other equipment Total buildings equipment equipment Balance at year-end 199392.18 4854224.57 1025810.99 6079427.74 Book value.Ending book value 1267952090.95 753853484.91 13503448.59 150694111.56 2186003136.01 Opening book value 1374806406.25 736679124.02 10710387.33 137287076.44 2259482994.04 2) Fixed assets temporary idle at year-end. Original book Accumulated Impairment Item Book value Remark value depreciation provision House and buildings 823277.88 252088.41 199392.18 371797.29 Machinery 39385736.8730989159.754732667.163663909.96 equipment Transport 866983.91823634.7043349.21 equipment Other 2721454.57 2555965.98 29415.81 136072.78 Subtotal 43797453.23 34620848.84 4961475.15 4215129.24 3) Fixed assets leased through operating lease at year-end Accumulated Impairment Item Original book value Book value Remark depreciation provision House and 113862815.8849563207.9664299607.92 buildings Machinery 24069771.3614068782.5210000988.84 equipment Other 290703.88284096.336607.55 equipment Total 138223291.12 63916086.81 74307204.31 4) Fixed assets without property certificate Reason of not complete the property certificate Item Book value J01workshop 25111339.70 Related property rights in procedure Canopy 1473562.66 Related property rights in procedure Connecting corridor 3054589.49 Related property rights in procedure J02workshop 27092611.16 Related property rights in procedure J09raw material warehouse 6006540.59 Related property rights in procedure 270Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Reason of not complete the property certificate Item Book value J19D guard room 133256.49 Related property rights in procedure J19E guard room 133256.49 Related property rights in procedure J08 packing materials 4169409.45 Related property rights in procedure warehouse J50finished product 15623863.61 Related property rights in procedure warehouse J51finished product 15159508.88 Related property rights in procedure warehouse J53finished product 11503048.93 Related property rights in procedure warehouse J54finished product 10751165.10 Related property rights in procedure warehouse J55finished product 9912153.77 Related property rights in procedure warehouse J56 finished product 9912153.77 Related property rights in procedure warehouse J52finished product 10995311.37 Related property rights in procedure warehouse J08 packing materials 23479798.48 Related property rights in procedure warehouse Subtotal 174511569.94 (3). Disposal of fixed assets Item Amount at year-end Amount at year-begin Relevant assets disposal for reserved lands 32293183.76 32293183.76 Undisposed equipment 554340.35 Subtotal 32847524.11 32293183.76 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 271Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 relocation compensation.No impairment of relevant assets disposal for reserved lands at year-end. 18. Construction in progress (1) Detail Item Balance at year-end Balance at year-begin Construction in progress 97807983.40 69920839.20 Total 97807983.40 69920839.20 (2) Construction in progress 1) Details of construction in progress Amount at year-end Amount at year-begin Impairm Item Impairme ent Book balance nt Book value Book balance Book value provisio provision n Refrigerator Front-end 27527110.5 Capacity Improvement Project 27527110.50 0 of Hefei Manufacturing Base Capacity Improvement and Transformation Project of Air 14077889.0 24062124. 14077889.0124062124.83 Conditioning Manufacturing 1 83 System Investment Project to Manufacturing Company by Washing Machine Business 8092928.458092928.45 Department to Increase Production and Guarantee Supply in 2024 Zhongshan Changhong 7036680.5 Technical Transformation 6432519.38 6432519.38 7036680.59 9 Project Extrusion and Crushing 1033130.0 Capacity Improvement 3654455.49 3654455.49 1033130.00 0 Demand Project of Hefei 272Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Amount at year-end Amount at year-begin Impairm Item Impairme ent Book balance nt Book value Book balance Book value provisio provision n Refrigerator Manufacturing Company Plastic Vacuum Forming 1027433.6 3590796.453590796.451027433.62 Machine Project 2 Fixed Assets Project of 7 kg 1534513.2 Supporting Production 3535542.99 3535542.99 1534513.28 8 Equipment Reconstruction of J05 Two-Device Workshop of Air 3447901.143447901.14 Conditioning Company - Steel Platform Project To-be-installed Equipment 2003069.7 2774000.002774000.002003069.71 Project 1 Door Shell Capacity 1947251.991947251.99 Equipment Update Project Investment Project for Switching Technology 1686232.801686232.80 Platform of Cabinet Air Conditioning Heat Exchanger Update Project of Multi-gun Feeding Equipment on the 1446902.65 1446902.65 Back of Large Refrigerator Investment Project of Production Equipment for 1441592.921441592.92 Inner Cylinder of Meiling Export Dryer New Flat Color Plate Door 2155584.0 397699.12397699.122155584.07 Shell Line Project 7 Construction Project of Liquid Nitrogen Tank Production 23349.06 23349.06 680956.02 680956.02 Line Relocation and Capacity Expansion Project of Meiling 339115.04 339115.04 Extrusion Line Projects to improve the capacity and production 1624647.0 1624647.04 efficiency of the washing 4 machine manufacturing 273Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Amount at year-end Amount at year-begin Impairm Item Impairme ent Book balance nt Book value Book balance Book value provisio provision n company in the first quarter Investment Project of Washing Machine Supporting 617699.12 617699.12 Production Equipment Changhong Meiling 5563207.5 Promotion Project of 5563207.57 7 Industrial Internet Efficiency Improvement and 1388626.0 Transformation Project of 1388626.00 0 Large Refrigerators Adaptability Transformation Project of Fin Stamping 2634632.9 2634632.94 Production Line and Its 4 Supporting Equipment Rectification Project of Elevators and Fire Hazards in 1124589.1 1124589.14 Charging Area of Finished 4 Product Warehouse Transformation and 2048088.4 Maintenance Project of Large 2048088.46 6 Line for B-line Shift Recovery Manufacturing System 1113002.2 1113002.29 Automation Project in 2023 9 Commercial Kitchen 1894989.0 1894989.00 Refrigerator Cabinet Project 0 Laboratory Investment Project 627076.10 627076.10 17731811.411411674. Other project 17731811.45 11411674.38 538 97807983.469920839. Total 97807983.40 69920839.20 020 2) Changes in significant construction in progress Book Transfer to fixed balance Increase in Book balance at Projects Budget at assets in Current Other decrease Current Period period- period-end Period begin Front-end 88000000.00 38550472.22 8695934.69 2327427.03 27527110.50 274Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Book Transfer to fixed balance Increase in Book balance at Projects Budget at assets in Current Other decrease Current Period period- period-end Period begin expansion project of Hefei base with an annual output of refrigerator cabinets (Continued) Proportion of Accumulated including: interest Interest project amount of Projects Progress capitalized amount capitalization rate Source of funds investment in interest of Current Period of Current Period budget capitalization Front-end expansion project of Hefei base 43.81 68.70 Self-raised with an annual output of refrigerator cabinets 19. Right-of-use assets Item House and buildings Total Original book value Balance at year-begin 43077219.46 43077219.46 Increase in this year 140945907.49 140945907.49 (1) New lease 140945907.49 140945907.49 Decrease in this year 51808320.42 51808320.42 (1) Expiration of lease and change of 51693396.8351693396.83 contract (2) Impact of foreign currency conversion 114923.59 114923.59 Balance at year-end 132214806.53 132214806.53 Accumulated depreciation Balance at year-begin 7930938.25 7930938.25 Increase in this year 13591410.48 13591410.48 275Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item House and buildings Total (1) )Accrual 13591410.48 13591410.48. Decrease in this year 3091732.98 3091732.98 (1) Expiration of lease and change of 3079341.963079341.96 contract (2) Impact of foreign currency conversion 12391.02 12391.02 Balance at year-end 18430615.75 18430615.75 Book value Ending book value 113784190.78 113784190.78 Opening book value 35146281.21 35146281.21 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. 20. Intangible assets (1) Detail Trademark Non-patent Item Land use right Patent technology Other Total special right technology.Original book value Balance at 926964151.60283292439.34743027808.89196090356.1611193437.002160568192.99 year-begin Increase in this year 115842290.70 114343648.32 660622.64 230846561.66 1) Purchase 1828141.58 281000.00 2109141.58 2) Internal 114014149.12114343648.32228357797.44 research 3) Other 379622.64 379622.64 Decrease in this year 20470204.82 84615.44 20554820.26 1)Dispose 20090582.18 20090582.18 2) Other 379622.64 84615.44 464238.08 Balance at year-end 926964151.60 283292439.34 838399894.77 310434004.48 11769444.20 2370859934.39 Accumulated amortization Balance at year-begin 251860307.11 283292439.34 550293846.69 76940491.50 4235458.67 1166622543.31.Increase in this year 19663819.27 91207638.03 38162340.12 1371805.93 150405603.35 276Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Trademark Non-patent Item Land use right Patent technology Other Total special right technology.Original book value 1) )Accrual 19663819.27 91207638.03 38162340.12 1087088.97 150120886.39 2) Other 284716.96 284716.96 Decrease in this year 15718530.66 15718530.66 1) Dispose 15433813.70 15433813.70 2) Other 284716.96 284716.96 Balance at year-end 271524126.38 283292439.34 625782954.06 115102831.62 5607264.60 1301309616.00.Impairment provision Balance at 41003993.4118291161.974508495.3363803650.71 year-begin Balance at year-end 12095041.19 3655520.53 15750561.72 1) Accrual 12095041.19 3655520.53 15750561.72 Decrease in this year 4050099.37 383760.72 4433860.09 1) Dispose 4050099.37 4050099.37 2) Other 383760.72 383760.72 Balance at year-end 49048935.23 21946682.50 4124734.61 75120352.34 Book value Ending book value 655440025.22 163568005.48 173384490.36 2037444.99 994429966.05 Opening book value 675103844.49 151729968.79 100858702.69 2449483.00 930141998.97 The intangible assets resulted from internal research takes 9.63% of the balance of intangible assets at year-end (2) Intangible assets impairment text Item Book value Recoverable amount Impairment amount Non-patent technology 9241832.80 2939427.92 6302404.88 Non-patent technology 5792636.31 5792636.31 Patent technology 4075343.94 419823.41 3655520.53 Subtotal 19109813.05 3359251.33 15750561.72 (Continued) 277Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Key parameters of forecast Number of years Key parameters of stable period Item period and their of forecast period and their determination basis determination basis Sales volume revenue and Sales volume revenue and cost; Determine based on cost; Determine based on Non-patent technology 3 comprehensive analysis of comprehensive analysis of enterprise budget and enterprise budget and development plan development plan Sales volume revenue and Sales volume revenue and cost; Determine based on cost; Determine based on comprehensive analysis of Non-patent technology 5 comprehensive analysis of enterprise budget and enterprise budget and development plan development plan Sales volume revenue and Sales volume revenue and cost; Determine based on cost; Determine based on Patent technology 5 comprehensive analysis of comprehensive analysis of enterprise budget and enterprise budget and development plan development plan Subtotal 21. Development expense Amount at year-end Amount at year-begin Item Impairment Impairment Book balance Book value Book balance Book value provision provision Technology development for 35786399.85 35786399.85 38042546.27 38042546.27 Air-conditioner Technology development for 38924294.89 38924294.89 59134989.07 59134989.07 refrigerator Total 74710694.74 74710694.74 97177535.34 97177535.34 22. Goodwill (1) Original value of goodwill Formation Decrease this year from Balance at Invested enterprise Opening balance enterprise Dispose Other year-end merger Hefei Meiling Group 3553367.773553367.77 Holdings Limited 278Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Formation Decrease this year from Balance at Invested enterprise Opening balance enterprise Dispose Other year-end merger Total 3553367.77 3553367.77 (2) Impairment loss of goodwill Increase this period Decrease this period Invested enterprise Opening balance Ending balance Accrual Other Accrual Other Hefei Meiling Group Holdings 3553367.773553367.77 Limited Total 3553367.77 3553367.77 23. Long-term prepaid expenses Opening Increase this Amortization Other Item Ending balance balance period for the period decreases Fixed assets 33216682.0712912594.0815025844.20331197.4430772234.51 overhaul Rental plant decoration 2308827.63 1215902.27 960192.18 2564537.72 project Technical support project of vaccine 172955.92172955.92 traceability date interface Total 35698465.62 14128496.35 16158992.30 331197.44 33336772.23 24. Deferred tax assets and deferred tax liabilities (1) Deferred income tax assets without the offset Ending balance Opening balance Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax difference assets difference assets Deduction of loss 360864560.75 54129684.11 575117840.02 86267676.00 Asset impairment 338637346.0751171867.09313597900.7547114940.66 provision Lease liabilities 121116910.59 18556500.32 35460065.89 4786118.44 Changes in fair 156334600.7923450190.12323557.5048533.63 value Deferred income 77980146.46 11697021.96 89179865.35 13376979.81 279Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Ending balance Opening balance Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax difference assets difference assets Estimated liability 44310978.00 6994965.59 31904790.39 4785718.56 Dismission 12394842.891859226.4413940576.252091086.44 welfare Witholding 6624971.581387454.966464906.831367611.03 expenses Deferred income tax assets recognized for 51380204.587707030.68 development expenditure Total 1169644561.71 176953941.27 1065989502.98 159838664.57 (2) Deferred income tax liabilities without the offset Ending balance Opening balance Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax differences liability differences liability Recognized by 143241777.44 21486266.61 72922565.81 10938384.87 changes in fair value Right to use assets 112973204.23 17323066.27 35146281.21 4804068.40 Recognized by fixed assets 35081399.76 5263260.42 25632968.47 3844945.25 depreciation Total 291296381.43 44072593.30 133701815.49 19587398.52 (3) Details of unrecognized deferred income tax assets Item Ending balance Opening balance Deductible temporary difference 175445032.54 159322703.86 Deductible loss 204180133.57 258387040.61 Total 379625166.11 417709744.47 25. Other non-current assets Amount at year-end Amount at year-begin Item Impairment Impairment Book balance Book value Book balance Book value provision provision Prepaid 276000.00276000.00 engineering Prepaid 9704450.569704450.5615299373.8515299373.85 equipment 280Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （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 Warranty money due 9623211.67530000.009093211.6711955960.50653720.0011302240.50 within one year Total 19603662.23 530000.00 19073662.23 27255334.35 653720.00 26601614.35 26.Assets with restricted ownership or use right Restriction Item Book Balance Book value Restriction information type Security deposit; Frozen for Monetary funds 510680650.07 510680650.07 Frozen litigation Receivable Pledge for issuing bank acceptance 584233204.78 584233204.78 Pledge financing bills Total 1094913854.85 1094913854.85 (Continued from the table above) Restriction Item Book Balance Book value Restriction information type Monetary 440543697.92440543697.92 funds Accounts freeze bond; Frozen due to litigation receivable 997291535.93 997291535.93 financing fixed assets pledge Used for issuing bank 478732601.33321209491.52 acceptance bills as collateral intangible mortgage Apply for loan mortgage 415797056.93264252595.08 assets Investment mortgage Apply for loan mortgage 5795017.723097441.68 real estate total 2338159909.83 2026394762.13 27. Short-term loans Category Ending balance Opening balance Loan in credit 750608522.12 1128967080.14 Pledge loan 16000000.00 Guaranteed loan 5000000.00 Interest payable 138763.89 135338.89 281Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Category Ending balance Opening balance Total 766747286.01 1134102419.03 28. Trading financial liability Item Closing balance Opening balance Trading 32229012.86 financial liability Including: Derivative 32229012.86 financial liability Total 32229012.86 29. Derivative financial liabilities project Closing balance Opening balance forward exchange 156359680.92 contract total 156359680.92 30. Note payable Type Balance at year-end Balance at year-begin Bank acceptance 6418137195.82 5610344422.69 Trade acceptance 870829729.52 Commercial Acceptance Bill 645158510.31 300072867.42 Total 7934125435.65 5910417290.11 31. Account payable (1) Detail Item Amount at year-end Amount at year-begin Within 1 year 6045137505.31 3811958127.23 Amount aged over 1 year 86883083.10 88566717.50 Total 6132020588.41 3900524844.73 (2) Major account payable with over one year book age at year-end.:N/A 32.Received in advance. Category Amount at year-end Amount at year-begin 282Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Category Amount at year-end Amount at year-begin Rent received in advance 11085.70 55949.90 Total 11085.70 55949.90 33. Contract liabilities (1) Detail Item Balance at year-end Balance at year-begin Within 1 year 583600476.83 362934770.50 Over 1 year 26137394.41 42798867.76 Total 609737871.24 405733638.26 (2) Major contract liabilities with over one year book age at year-end.: N/A (3) Amount and reasons for major changes in book value during the reporting period Item Change amount Reason Goods 204004232.98 Advance payment for goods increased Total 204004232.98 34. Wages payable (1) Detail Balance at Item Increase this year Decrease this year Balance at year-end year-begin Short-term 1930190966.10 1984122640.50 438369579.20384437904.80 compensation After-service welfare- 148057949.72 148410427.62 defined contribution 1752993.49 1400515.59 plans Dismiss welfare 4463322.29 5669237.45 6018202.67 4114357.07 Total 444585894.98 2083918153.272138551270.79389952777.46 (2) Short-term compensation Balance at Balance at Item Increase this year Decrease this year year-begin year-end Wages bonuses 1726001349.96 1781303808.76 allowances and 430145684.21 374843225.41 subsidies 283Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Balance at Balance at Item Increase this year Decrease this year year-begin year-end Welfare for workers and 557735.88 54953299.76 54617192.77 893842.87 staff Social 1701031.2163386832.9363630447.521457416.62 insurance Including: Medical 1671812.10 57958925.64 58196974.93 1433762.81 insurance Work injury 29219.11 5427907.29 5433472.59 23653.81 insurance Housing accumulation 5451792.24 78836424.65 78735630.00 5552586.89 fund Labor union expenditure and 513335.667013058.805835561.451690833.01 personnel education expense Total 438369579.20 1930190966.10 1984122640.50 384437904.80 (3) Defined contribution plans Item Balance at year-begin Increase this year Decrease this year Balance at year-end Basic endowment 598361.39142927254.43142810804.27714811.55 insurance Unemployment 1154632.105130695.295599623.35685704.04 insurance Total 1752993.49 148057949.72 148410427.62 1400515.59 35. Tax payable Item Balance at year-end Balance at year-begin Enterprise income tax 37295721.67 22442997.30 VAT 18736805.30 16639990.58 Individual income tax 10765426.61 9049531.30 Urban maintenance and 9332329.708813777.65 construction tax 284Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Balance at year-end Balance at year-begin Educational surtax 6751533.75 6398148.77 Stamp tax 5165439.65 4295452.50 Real estate tax 4547226.68 4421430.56 Land use tax 1752087.81 1752087.77 Other local taxes 1524968.81 2971284.02 Treatment fund for abandon 16436695.00 electrics & electronics Total 95871539.98 93221395.45 36. Other account payable (1) Detail Item Balance at year-end Balance at year-begin Dividend payable 6005989.72 5384407.44 Other account payable 1025433422.81 882043954.97 Total 1031439412.53 887428362.41 (2)Dividend payable Item Balance at year-end Balance at year-begin China Life Insurance (Group) Company 43992.07 288404.82 The People’s Insurance Company (Group) of China 65987.57432607.23 Limited Bank of Communications-Fuguo Tianyi Value 153697.50153697.50 Securities Investment Fund Hefei Branch of Bank of China 631013.60 446576.60 Hefei Collective Industrial Association 631012.60 446575.90 Provincial trust and investment company Wuhu 504810.90357261.30 office Other 3975475.48 3259284.09 Total 6005989.72 5384407.44 (3) Other account payable by nature Nature Balance at year-end Balance at year-begin Accrued expenses 503726134.42 382265202.45 Receivables received temporary and deducted 6356898.8013212983.35 temporary 285Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Nature Balance at year-end Balance at year-begin Deposit margin 170587261.56 171636107.69 Related parties 312082468.47 285904610.83 Other 32680659.56 29025050.65 Total 1025433422.81 882043954.97 37. Non-current liability due within one year Item Balance at year-end Balance at year-begin Long-term loan principal and interest due within 9844660.0040172155.56 one year Lease liabilities due within one year 19290504.68 6483257.35 Total 29135164.68 46655412.91 38. Other current liabilities Item Balance at year-end Balance at year-begin Tax to be resold 18610598.53 18920057.53 Factoring fees payable 5213790.97 218335.59 Supply chain bill reversal 38674.50 Total 23824389.50 19177067.62 39. Long term borrowings Item Ending balance Amount at year-begin Loan in mortgage 108000000.00 Total 108000000.00 40. Lease liability Item Balance at year-end Balance at year-begin Lease prepayment 119266218.75 34691151.02 Less：Unrecognized financing charges 17439812.84 5714342.48 Total 101826405.91 28976808.54 41. Long-term payable (1) Detail 286Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Balance at year-end Balance at year-begin Special payable 455409.20 800347.84 Total 455409.20 800347.84 (2) Special payable Balance at Item Increase this year Decrease this year Balance at year-end year-begin Special funds for technological transformation from Zhongshan 800347.84 344938.64 455409.20 Changhong Subtotal 800347.84 344938.64 455409.20 42. Long-term wage payable Item Balance at year-end Balance at year-begin Dismissal welfare 10195289.45 11497075.82 Total 10195289.45 11497075.82 43. Accrual liability Item Balance at year-end Balance at year-begin Product quality guarantee note1 41657177.57 29939918.07 Litigation matters note2 3373239.65 2114872.32 Total 45030417.22 32054790.39 Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy.Note 2: 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.he management raised a total of 1652705.23 yuan against other operating lawsuits 44. Deferred income 287Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Balance at Item Increase this year Decrease this year Balance at year-end Reason year-begin Subsidies of Government developmen 102040223.27 23346500.00 28234866.43 97151856.84 subsidies t project Subsidies of Government 30937271.062653950.0028283321.06 Relocation subsidies Total 132977494.33 23346500.00 30888816.43 125435177.90 45. Share capital Change during the period (+、-) Item Opening balance Ending balance New shares Bonus Shares transferred Other Subtotal issued share from capital reserve Total 1029923715.001029923715.00 shares 46. Capital reserve (1) Detail Increase this Item Opening balance Decrease this period Ending balance period Share premium 3077460366.37 375033242.38 2702427123.99 Other capital reserve 48043091.40 48043091.40 Total 3125503457.77 375033242.38 2750470215.39 (2) Other note The change of capital reserve in this period is mainly due to the Company's acquisition of the equity of its subsidiary Hefei Changhong Industry Co. Ltd. under the same control. 47. Other comprehensive income Balance at Current Year Balance at Item year-begin Net after-tax amount of other comprehensive income Less: year-end 288Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)previousl Less: y written included in other in other compreh comprehe ensive nsive income Less income Account in ： transferre Belong to Belong to before previous Inco d to parent minority income tax period me retained company shareholder in Current and tax earnings after tax s after tax Year carried expe in the forward nses current to gains period and (after tax losses in attributab current le to the period parent company) Reclassify other comprehensiv -20704362.05 -465244.39 -518057.63 52813.24 -21222419.68 e income into profit or loss Including: Conversion difference arising from -20704362.05-465244.39-518057.6352813.24-21222419.68 foreign currency financial statement Total -20704362.05 -465244.39 -518057.63 52813.24 -21222419.68 48.Special reserves (1)Detail Amount at Item Increase this year Decrease this year Amount at year-end year-begin Safety production costs 11246811.91 40415747.60 30694385.92 20968173.59 Total 11246811.91 40415747.60 30694385.92 20968173.59 (2) Other note Note: This year's increase refers to the work safety expenses accrued according to the notice 289Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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). 49. Surplus reserves (1) Detail Decrease this Item Amount at year-begin Increase this year Amount at year-end year Statutory surplus reserve 361445492.66 25400876.20 386846368.86 Discretionary surplus 115607702.16 115607702.16 reserve Total 477053194.82 25400876.20 502454071.02 (2) Other note The increase in this period is due to the statutory surplus reserve accrued by 10% of the parent company's net profit. 50. Retained profit (1) Detail Item Current Year Last Year Undistributed profit at the end of the previous 1521759836.64909082037.66 period before adjustment Adjust the total amount of undistributed profits -83444712.70-78068072.70 at the beginning of the period Adjust the initial undistributed profits in the later 1438315123.94831013964.96 stage Add: Net profit attributable to the owners of the 699270051.82 735828796.67 parent company for the current period Less: withdraw of statutory surplus reserve 25400876.20 35834503.34 Withdraw of general risk provision Dividend payable for ordinary shares 308977114.50 92693134.35 Balance at year-end 1803207185.06 1438315123.94 (2) Adjustment of the details of undistributed profits at the beginning of the period The change of consolidation scope caused by the same control affects the undistributed profit at the beginning of the period RMB -83444712.70.(II)Item notes of the consolidated profit statement 1. Operation income and operation cost (1)Detail Item Current Year Last Year 290Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Income Cost Income Cost Main business 28335360230.42 25262724426.57 24128954793.41 20979329606.68 Other business 265675784.54 148550776.70 249019593.53 154946956.14 Total 28601036014.96 25411275203.27 24377974386.94 21134276562.82 (2) The decomposition information of operation income and operation cost Current Year Last Year Type Income Cost Income Cost Product Including： 15407055870.2114334050593.1411566440523.5310553796367.40 Air-conditioning Refrigerator 9560071716.638085319070.609088215517.677459217140.19 Freezer Washing machine 1746832584.10 1444516804.89 1329017674.88 1103161215.02 Small household appliances and 1491831582.421304824476.331849440139.121625597604.62 kitchen and bathroom Other product 129568477.06 94013481.61 295840938.21 237557279.45 Other business 265675784.54 148550776.70 249019593.53 154946956.14 Area Including: 18352947530.7916206086697.4416772667160.1714534302232.34 Domestic Overseas 10248088484.17 9205188505.83 7605307226.77 6599974330.48 Subtotal 28601036014.96 25411275203.27 24377974386.94 21134276562.82 (3)Information related to the transaction price allocated to the remaining performance obligations On December 31 2024 the income corresponding to the performance obligations that have been signed but not yet fulfilled or not yet fully fulfilled is RMB 74542459.76 of which RMB 74542459.76 is expected to be recognized in 2025. 2. Business tax and extra charges Item Current Year Last Year City construction tax 25914199.06 30631637.08 Real estate tax 25461294.25 25176737.11 Stamp duty 24703855.76 20280757.53 Education surcharge 19726338.56 23303329.57 Land use tax 9127558.32 9128146.80 291Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Current Year Last Year Water fund 7737529.88 7728166.29 Treatment fund for abandon electrics & 83956488.00 electronics Other 72125.15 22551.89 Total 112742900.98 200227814.27 3. Sales expense Item Current Year Last Year Salary extra charges and labor service 576155784.54652507519.61 expenses Market support expenses 351459135.82 299985325.55 Shipping and Installation expense 185363073.10 170138310.70 Storage lease expenses 129398876.12 99071460.40 Insurance 49096523.31 34655440.67 Travelling expenses 27486626.86 28183664.81 Three fee 15860631.14 32226527.64 Business activity expenses 15368031.16 16818583.84 Vehicle expenses 14708517.19 13438130.42 Service 8789029.44 16695232.90 Depreciation expenses 7844732.52 8123955.41 Other 95623082.18 51943866.77 Total 1477154043.38 1423788018.72 4. Administration expense Item Current Year Last Year Salary and social insurance etc. 198437769.99 234911595.10 Depreciation 45919238.84 45622889.34 Software use 22466676.77 12408011.23 Water and electricity fee 9289865.46 6526175.82 Employment guarantee fund for the 8447278.237230460.80 disabled Service 8312503.04 6004749.22 292Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Current Year Last Year Property insurance 7188254.55 6220209.31 Other low-value consumables 6003814.881087977.03 amortization Engineering maintenance fee 5994580.74 3547756.90 Safety in production 5079502.47 4936056.08 Domestic travelling fee 4070311.00 3868355.25 Other 38462744.23 39566649.36 Total 359672540.20 371930885.44 5. R&D expenses Item Current Year Last Year Salary and social insurance etc. 268361918.57 289259184.48 Amortized intangible assets 196665452.62 175442949.00 Trial fee of R&D 90943254.33 76386928.59 Inspection and authentication fee 18549348.84 17003613.90 Other expenses 62722259.47 39436679.87 Total 637242233.83 597529355.84 6. Financial expenses Item Current Year Last Year Interest expenditure 21059820.87 31212055.56 Less: Interest income 182415110.59 193136304.82 Add: exchange loss 670047.10 54126655.77 Discount expenditure -27355384.73 -27110900.70 Handling fee expenditure 16017052.87 13591856.02 Interest expense on lease liability 3480179.14 866829.13 Total -168543395.34 -120449809.04 7. Other income Amount included in Amount of the same Item Current amount current non-recurring period last year gains and losses Government subsidies related to 31233755.0730780817.5831233755.07 assets 293Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Amount included in Amount of the same Item Current amount current non-recurring period last year gains and losses Government subsidies related to 63679326.8349409103.1463679326.83 income Refund of handling fee for personal 767204.01515213.04 income tax withheld Additional VAT deduction 92050712.81 56552366.70 VAT will be refunded upon 8340088.829415201.81 collection Total 196071087.54 146672702.27 94913081.90 8. Investment income Item Current Year Last Year Long-term equity investment income by equity method 9165103.88 19133884.40 Disposition of the investment income generated by the 22760.28 long-term equity investment Investment income of other non-current financial assets during 14911850.5512932690.90 holding period Investment income obtained from the disposal of trading 35122865.42 -21761889.37 financial assets Investment income obtained from disposal of derivative -17541274.69 financial assets Interest income from debt investment during the holding period 32712969.75 20057997.72 The termination of income recognition for financial assets -38661658.21-22489932.70 measured by amortized cost Total 35709856.70 7895511.23 9. Changes in fair value gains Item Current Period Last Period Trading financial assets -18695483.36 Including :Income of fair value changes from derivative -18695483.36 financial instruments Derivative financial assets 32773626.80 Among them: Income from fair value changes 32773626.80 generated by derivative financial instruments Trading financial liability 9732511.92 Including: Income of fair value changes from derivative 9732511.92 financial instruments 294Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Current Period Last Period Derivative financial liabilities -124130668.06 Among them: Income from fair value changes -124130668.06 generated by derivative financial instruments Other non-current financial assets measured at fair 4172388.96 16256733.17 value Including : Amount of change in the fair value of the 4172388.96 current profit and loss of the non-trading equity 16256733.17 instruments Total -87184652.30 7293761.73 10. Credit impairment loss Item Current Year Last Year Account receivable bad debt loss 14993351.76 -81390317.77 Other account receivable bad debt loss -91570.95 -78256.93 Total 14901780.81 -81468574.70 11. Assets impairment loss Item Current Period Last Period Loss on inventory valuation -96363207.80 -36533558.64 Impairment loss on intangible assets -15750561.72 -18200119.46 Long-term equity investment impairment loss -3097405.00 Development expense impairment loss -1530365.17 Impairment loss on contractual assets 94761.06 -500429.38 Other impairment losses of non-current assets 63720.00 Total -116583058.63 -55234107.48 12. Income from assets disposal Item Current Period Last Period Income from non-current assets disposal 160661.55 1880089.33 Including: income classify to assets ready for sale 160661.55 1880089.33 Income from the disposal of the right to use the assets 427769.09 73793.22 Income from fixed assets disposal -267107.54 1806296.11 295Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Current Period Last Period Income from non-current assets disposal 160661.55 1880089.33 Including: income classify to assets ready for sale 160661.55 1880089.33 Total 160661.55 1880089.33 13.Non-operation revenue Amount reckoned into non-recurring Item Current Period Last Period gains/losses in Current Period Income of penalty 2820099.56 6392175.77 2820099.56 other 8118363.30 8680043.24 8118363.30 Total 10938462.86 15072219.01 10938462.86 14. Non-operating expenditure Amount reckoned into non-recurring Item Current Period Last Period gains/losses in Current Period Non-current asset retirement losses 4336902.78 5218522.66 4336902.78 Public welfare donation expenditure 934781.74 1106759.24 934781.74 Other 6657178.71 2042193.27 6657178.71 Total 11928863.23 8367475.17 11928863.23 15. Income tax expenses Item Current Year Last Year Current income tax 81540342.99 32617426.64 Deferred income Tax 7369918.08 3804926.17 Total 88910261.07 36422352.81 16. Other comprehensive income Found more in 47. Other comprehensive income in V (III) 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 Government subsidy and rewards 86323429.01 54092201.06 296Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Current Year Last Year Cash deposit deposit 21680522.40 37414693.10 Other 25491569.43 19750100.33 Total 133495520.84 111256994.49 (2) Cash paid for other activities relating to operation Item Current Year Last Year Operating out of cash expenses 1087578839.60 699585416.82 Petty cash deposit Cash deposit 46413594.48 65400113.95 Total 1133992434.08 764985530.77 (2) Cash related to Investment activities 1) Important cash received related to investment activities Item Current Period Last Period Structural deposits 13070000000.00 1120000000.00 Large deposit certificate 220000000.00 170000000.00 Total 13290000000.00 1290000000.00 (2) Important cash payable related to investment activities Item Current Period Last Period Structural deposits 13070000000.00 1120000000.00 Large deposit certificate 872862222.20 360000000.00 Total 13942862222.20 1480000000.00 (3) Cash received from other activities relating to investment Item Current Period Last Period Interest income arising from bank savings 177500877.49 190340378.30 Capital collection 17129427.73 119615832.70 Cash deposit 1706624.53 1194923.87 Income of forward exchange settlement 65593.68 Total 196402523.43 311151134.87 (4) Cash paid for other activities relating to investment Item Current Period Last Period Loses of forward exchange settlement 21299366.89 116011395.99 Bid bond refund 500000.00 297Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Current Period Last Period Total 21299366.89 116511395.99 ( 3) Cash related to financing activities 1) Cash received from other activities relating to financing Item Current Year Last Year Recover restricted funds 16831731.38 356794918.15 Meiling series (internal) bill discounting fundraising 229647515.53 19497591.35 Total 246479246.91 376292509.50 2) Cash paid for other activities relating to financing Item Current Year Last Year Turn into limited funds 86968683.53 71212010.57 Distribusigned to shareholders at the time of cancellation 14470087.35 8257294.29 Lease liability principal and interest 8361366.02 9788959.46 Dividend service charge 230889.27 65600.34 Other 250000.00 Total 110281026.17 89323864.66 4. Supplementary of the consolidated cash flow statement Supplementary Current Period Last Period 1. Net profit is adjusted to cash flow of operation activities: Net profit 724667502.87 767993332.30 Add: provision for depreciation of assets 116583058.63 55234107.48 Credit impairment provision -14901780.81 81468574.70 Depreciation of fixed assets consumption of oil gas assets and 264209453.01248036737.69 depreciation of productive biological assets Amortization of intangible assets 150120886.39 149895749.73 Amortization of long-term retained expense 16158992.30 9199217.86 Loss from disposal of fixed assets intangible assets and other -1880089.33 -160661.55 long term assets (gain is listed with “-”) Loss from discarding fixed assets as useless (gain is listed 5081404.15 4103076.53 with “-”) Loss from change of fair value (gain is listed with “-”) 87184652.30 -7293761.73 Financial expense (gain is listed with “-”) -157205062.67 -105597302.07 298Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Supplementary Current Period Last Period Investment loss (gain is listed with “-”) -35709856.70 -8966008.84 Decrease of deferred income tax assets (increase is listed with -17115276.701727030.73 “-”) Increase of deferred income tax liabilities (decrease is listed 24485194.782077895.44 with “-”) Decrease of inventories (increase is listed with “-”) -1588581308.69 -296195160.51 Decrease of operational accounts receivable (increase is listed 186215213.84-758811422.19 with “-”) Increase of operational accounts receivable (decrease is listed 4210203134.431930939125.06 with “-”) Other Net cash flow arising from operation activities 3970257217.96 2072909430.47 2. Major investment and financing activities that do not involve cash receipts: Conversion of debt into capital Switching Company bonds due within one year New right to use assets 3. Net change in cash and cash equivalents: Balance at period-end of cash 9976098734.11 8391177936.62 Less: Opening balance of cash 8391177936.62 6120396888.04 Add: Balance at period-end of cash equivalents Less: Opening balance of cash equivalents Net increase in cash and cash equivalents 1584920797.49 2270781048.58 5. Cash and cash equivalent (1) Detail Item Current Period Last Period 1) Cash 9976098734.11 8391177936.62 Including: cash in stock 19623.13 15600.68 Bank deposits available for payment at any time. 9974662103.93 8387434041.46 Other monetary fund available for payment at any time 1417007.05 3728294.48 2) Cash equivalents 299Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Current Period Last Period Including: bond investment due within 3 months Balance of cash and cash equivalents at period-end 9976098734.11 8391177936.62 (2) Monetary funds that are not cash and cash equivalents Reasons other than Item This year's amount Last year's amount cash and cash equivalents Judicial freezing of funds due to contract 504942490.94 412827872.71 Limited use disputes Guarantee and acceptance bill deposit 5738159.13 27715825.21 Limited use Interest receivable 5671366.43 10901601.18 Interest accrual Total 516352016.50 451445299.10 6. Changes in liabilities arising from fund-raising activities Increase this year Decrease in the year Amount at Amount at year Item year-begin Non cash Cash changes Non cash changes Cash changes end changes Short-term 1134102419.03 2346263587.01 8871602.37 2722489371.00 951.40 766747286.01 Long-term 148172155.5610000000.00135116.92148462612.489844660.00 loans Lease 35460065.89115123187.688361366.0221104976.96121116910.59 liabilities Dividend 5384407.44347853265.05347231682.776005989.72 payable Subtotal 1323119047.92 2356263587.01 471983172.02 3226545032.27 21105928.36 903714846.32 7. Statement of cash flow in net amount Basis for adopting net Item Relevant facts Financial impact presentation As a legal entity the Company reports the gains or losses of foreign exchange contract Forward foreign The reported information is more delivery to the receipt of other cash related No exchange delivery intuitive to investment activities and the payment of other cash related to investment activities As a legal entity the Company reports the current year's change of restricted funds to Restricted funds the receipt of other cash related to Rolling reflection No fundraising activities and the payment of other cash related to fundraising activities 300Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Basis for adopting net Item Relevant facts Financial impact presentation As a legal entity the Company reclassifies the current year's change in Meiling (internal) notes discount undue from cash Meiling (internal) received from sales of goods service notes discount provision/cash paid from purchase of Rolling reflection No goods and receipt of services to other fundraising amount received cash related to fund-raising activities/other paid cash related to fundraising activities 8. 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 N/A (IV)Other 1. Foreign currency (1) Detail Ending foreign currency Exchange Ending RMB converted Item balance rate balance Monetary fund 417983789.41 Including: USD 30492303.47 7.1884 219190874.26 Euro 16271655.23 7.5257 122455595.76 AUD 5436976.88 4.5070 24504454.80 PKR 1100078112.61 0.0258 28409517.26 IDR 40026618584.00 0.000451 18052004.98 Won 983088756.00 0.004938 4854492.28 PHP 4158018.92 0.1243 516850.07 Account receivable 1304756472.57 Including: USD 112606719.14 7.1884 809462139.87 Euro 17259951.25 7.5257 129893215.12 AUD 21965383.89 4.5070 98997985.19 HKD 125183875.84 0.9260 115920269.03 PKR 392500262.03 0.0258 10136319.27 301Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Ending foreign currency Exchange Ending RMB converted Item balance rate balance IDR 221379247642.96 0.000451 99842040.69 Won 3481016998.00 0.004938 17189261.94 PHP 187569318.78 0.1243 23315241.46 Other account receivable 1806114.89 Including: USD 200000.00 7.1884 1437680.00 PKR 4890883.07 0.0258 126307.06 IDR 255496000.00 0.000451 115228.70 PHP 1020893.70 0.1243 126899.13 Account payable 79388986.73 Including: USD 7558.56 7.1884 54333.95 PKR 742849280.85 0.0258 19184082.68 IDR 96728874373.00 0.000451 43624722.34 PHP 132949170.22 0.1243 16525847.76 (2) Description of overseas business entities Whether the Reason Main place of Name of overseas company Recording currency recording currency of business changes change CHMeilingInternational(Philippines) Philippines Philippine peso No Inc.ChanghongRubaTradingCompany Lahore PKR No（Private）Limited Pakistan CHANGHONGMEILINGELECTRI Indonesia IDR No CINDONESIAPT 2. Lease （1）The Company as lessee 1) Please refer to Note V (I) 18 to the financial statements for details about the right-to-use assets. 2) The amount of lease expenses included in the current profits and losses is as follows: Amount of the same Item Current amount period last year Interest expense of lease liabilities 3480179.14 866829.13 Short-term lease expense 8899819.70 10020995.84 302Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)The Company's accounting policies for short-term lease and low-value asset lease are detailed in Note III (XXXIII) to the financial statements. 3) The total cash outflow related to lease is RMB 16533558.16. 4) For details of the maturity analysis of lease liabilities and the corresponding liquidity risk management please refer to the description of Note IX (II) to the financial statements. （2）The Company as lessor 1）Operating lease of the Company as lessor Amount of the same Item Current amount period last year Lease income 42904760.57 49331981.60 For details of operating leased-out fixed assets please refer to Note V (I) 17 of the financial statements. 2) Financial lease The Company has no financial lease as a lessor 3) The Company does not recognize the profit and loss of financial lease sales as a manufacturer or distributor. 3. Supplier financing arrangement (1) Terms and conditions of supplier financing arrangements Types of supplier financing Terms and conditions arrangements The supplier handles the financing business with Yuanxin Financial Leasing Financing business Co. Ltd. according to the bills issued by the Company discounts the relevant bills and shortens the payment period (2) Liabilities related to supplier financing arrangements 1) Book value of related liabilities Item Ending amount Opening amount Accounts payable 185567424.38 133021074.80 In which: the supplier has received the payment 185567424.38 133021074.80 Subtotal 185567424.38 133021074.80 2) Maturity date range for related liabilities Item Maturity date range of final payment Liabilities belonging to financing arrangements 1-6 months after the invoice is issued 303Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)VI.R&D expenditure (I) R&D expenditure Amount incurred this Amount incurred last Item year year Salary and social insurance etc. 290438820.29 333204514.37 Amortized intangible assets 128863813.35 128124567.42 Cost of mould 138699736.02 93918099.78 Trial fee of R&D 90611055.62 83379401.74 Technical development cost 70128627.53 26648055.81 Depreciation 27268033.15 20217498.97 Inspection and authentication fee 28187701.47 19974458.24 Domestic travel expenses 4367990.30 3760534.31 Other 66098532.36 36123499.16 Total 844664310.09 745350629.80 Including: expensed R&D expenditure 637242233.83 597529355.84 Capitalized R&D expenditure 207422076.26 147821273.96 (II) Development expenditure 1. Changes of opening and ending balance of development expenditure Increase in this period Decrease in this period Opening Recognized Transferred Internal Ending Item balance as to current development Others Others balance intangible profits and expenditure assets losses Development of air 158680478.8 38042546.27156424332.4735786399.85 conditioning 9 technology Development of ice 59134989.0750997743.7969677318.551531119.4238924294.89 washing technology 228357797.4 Total 97177535.34 207422076.26 1531119.42 74710694.74 4 2. Impairment of development expenditure Changes in impairment provision for development expenditure 304Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Increase in this period Decrease in this period Opening Item Ending amount amount Disposal or Accrual Others Others scrapping Development of ice washing 1530365.17 1530365.17 technology Subtotal 1530365.17 1530365.17 VII. Changes of consolidation rage 1. Enterprise combined are not under the same control 1.) Business merger under the same control in this period Proportion of rights and interests Basis for forming business Name of merged Basis for determining obtained in business merger under the same control Merger date party the merger date merger Hefei Changhong Under the control of Sichuan 100.00% 2024-11-20 Equity change Industry Co. Ltd. Changhong Electric Co.Ltd. （Continued） Net profit of the Income of the merged party from Income of the merged party from the beginning of the merged party during Net profit of the merged party Name of merged the beginning of the current merger the comparison during the comparison period party current merger period to the merger period period to the merger date date Hefei Changhong 23789354.601918902.01130078151.73-4840697.26 Industry Co. Ltd. 2. Merger cost Merger cost 375033242.38 Cash 375033242.38 3. Book value of the assets and liabilities of the merged party on the merger date (1) Detail Hefei Changhong Industry Co. Ltd.Item Merger date End of last period Assets 245444834.36 264664633.71 305Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Hefei Changhong Industry Co. Ltd.Item Merger date End of last period Monetary fund 30542227.43 1937710.01 Account receivable 26842753.96 46604860.24 Financing receivable 254932.58 Advance payment 4512.15 60355.39 Other receivable 1359651.17 17206067.73 Contract assets 50000.00 50000.00 Fixed assets 144106028.05 154864143.52 Intangible assets 42539661.60 43686564.24 Liabilities 8527632.82 29666334.18 Not payable 6285132.71 Account payable 3802278.48 18220935.84 Advance received 420478.56 Contract liabilities 3439.36 34882.24 Salary payable to staff and worker 709255.59 973678.42 Taxes payable 809721.27 1303643.74 Other payable 2782021.01 2763641.11 Other current liabilities 438.55 4526.12 Long-term employee remuneration payable 79894.00 Net assets 236917201.54 234998299.53 Less：Minority equity Net assets obtained 236917201.54 234998299.53 (2) Changes in the scope of merger due to other reasons 1. Increase in the scope of merger Amount of capital Mode of equity Time of equity Ratio of contribution Name of company contribution (RMB acquisition acquisition (%) '0000) Sichuan Changhong Intelligent Air New March 26 2024 10000.00 100.00 Conditioning Technology Co. Ltd. 306Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)VIII. Equity in other entity (I) Composition of enterprise groups 1. The Company included 24 subsidiaries including Zhongke Meiling Cryogenics Technology Co. Ltd. Sichuan Changhong Air Conditioning Co. Ltd. and Zhongshan Changhong Electric Co.Ltd. into the scope of consolidated financial statements. 2. Basic information of subsidiaries Main place Shareholding ratio (%) Registered of business Business Acquisitio Name of subsidiary capital (RMB and place of nature '0000) Direct Indirect n method registration Funded Jiangxi Meiling Electric Jingdezhen Manufacture 5000.00 98.75 1.25 establishm Appliance Co. Ltd. Jiangxi and sale ent Funded Mianyang Meiling Manufacturin 10000.00 Mianyang 95.00 5.00 establishm Refrigeration Co. Ltd. g and sales ent Zhongke Meiling Funded Manufacturin Cryogenic Technology 9673.09 Hefei 47.4512 establishm g and sales Co. Ltd ent Funded Anhui Tuoxing Technology 1000.00 Hefei 47.4512 establishm Technology Co. Ltd. R & D ent Funded Anhui Ling'an Medical Manufacturing 5000.00 Lu'an 47.4512 establishm Equipment Co. Lt and sales ent Enterprise Sichuan Changhong combined Manufacturing Air-conditioner Co. 85000.00 Mianyang 100.00 under the and sales Ltd same control Funded Ground Energy Heat Manufacturing 5000.00 Mianyang 85.00 establishm Pump Tech. Co. Ltd. and sales ent Ground Energy Heat Funded Manufacturing Pump Tech. 4500.00 Zhongshan 85.00 establishm and sales (Zhongshan) Co. Ltd. ent Sichuan Changhongi Funded Manufacturing Intelligent Technology 10000.00 Mianyang 100.00 establishm and sales Co. Ltd. ent Zhongshan Changhong Manufacturin Enterprise 33400.00 Zhongshan 90.00 10.00 Electric Co. Ltd g and sales combined 307Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Main place Shareholding ratio (%) Registered of business Business Acquisitio Name of subsidiary capital (RMB and place of nature Direct Indirect n method '0000) registration under the same control Changhong Ruba Funded Trading Company 8308.98 Pakistan Sales 60.00 establishm (Private)Limited ent Funded Changhong Meiling 4027.20 Jakata Sales 100.00 establishm Electric IndonesiaPT ent Funded Guangzhou Changhong 100.00 Zhuangzhou Sales 100.00 establishm Trading Co. Ltd.ent Enterprise Changhong Meiling combined Manufacturing Ridian Technology Co. 8300.00 Zhongshan 99.0361 under the and sales Ltd same control Hebei Hongmao Daily Funded Manufacturing Appliance Technology 500.00 Handan 99.0361 establishm and sales Co. Ltd ent Funded Hefei Meiling Group 8000.00 Hefei Sales 100.00 establishm Holdings Limited ent Enterprise Hefei Meiling combined Manufacturing Nonferrous Metal 2428.68 Hefei 100.00 not under and sales Products Co. Ltd the same control Enterprise Meiling Equator combined Manufacturin Appliance（Hefei）Co. 2479.31 Hefei 100.00 not under g and sales Ltd. the same control Enterprise combined Meiling Equator Manufacturin 1200.00 Hefei 100.00 not under Appliance Co. Ltd. g and sales the same control Hefei Meiling Wulian Software Funded 1000.00 Hefei 100.00 Technology Co. Ltd. Developme establishm 308Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Main place Shareholding ratio (%) Registered of business Business Acquisitio Name of subsidiary capital (RMB and place of nature n method '0000) Direct Indirect registration nt ent CH-Meiling Funded International 688.91 Philippine Sales 100.00 establishm (Philippines) Inc. ent Hefei Changhong Funded Meiling Life 5000.00 Hefei Sale 70.00 establishm Appliances Co. Ltd. ent Sichuan Hngmei Software Funded Intelligent Technology 500.00 Mianyang Developme 100.00 establishm Co. Ltd nt ent Enterprise combined Hefei Changhong Manufacturin 10000.00 Hefei 99.00 1.00 under the Industrial Co. ltd. g and sales same control 3. Other note (1) Basis for holding half or less voting rights but still controlling the investee and holding more than half voting rights but not controlling the investee The Company holds 47.4512% equity of Zhongke Meiling and is its largest shareholder. In addition to independent directors the Board of Directors of Zhongke Meiling comprises a total of three members of which Chairman Wu Dinggang just serves as the chairman of the controlling shareholder Changhong Meiling and Director Zhong Ming serves as the director and member of Changhong Meiling which controls the daily operation of Zhongke Meiling. (2) Major non-wholly-owned subsidiary 1. Detail Gains/losses Dividend distributed Shareholding ratio of attributable to to minority Balance of minority’s Subsidiary minority minority in Current announced in Current interest at period-end Period Period Zhongke Meiling Ground Energy 15.00% 1152690.17 11138843.47 Ridian Technology 0.9639% -176968.07 1187703.07 Meiling Life Appliances 30.00% 11824916.21 53762971.03 309Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 2. Financial information for major non-wholly-owned subsidiary (1) Asset and Liabilities Ending balance Subsidiary Non-current Current assets Non-current assets Total assets Current liability Total liabilities liability Zhongke 616938129.16128338295.37745276424.53125597564.667937753.69133535318.35 Meiling Ground 659779005.79119097321.45778876327.24634669777.1369947593.70704617370.83 Energy Ridian 203569313.3535669577.14239238890.49114766806.02946297.67115713103.69 Technology Meiling Life 626279605.7753468923.29679748529.06497055436.733483188.91500538625.64 Appliances （Continued） Opening balance Subsidiary Non-current Non-current Current assets Total assets Current liability Total liabilities assets liability Zhongke 590872333.93143608411.32734480745.25120874302.4412086470.45132960772.89 Meiling Ground 256060078.7627234236.22283294314.98216616587.412400.97216618988.38 Energy Ridian 226657040.8240283953.89266940994.71125655866.42292501.04125948367.46 Technology Meiling Life 621873116.90613240.68622486357.58481523383.111169458.41482692841.52 Appliances (2) Profit and loss and cash flow situation Current Period Subsidiary Total comprehensive Cash flow from Operation income Net profit income operation activity Zhongke Meiling 295773281.94 18087029.57 18087029.57 25513232.80 Ground Energy 1576880674.39 7684601.11 7684601.11 50051754.93 Ridian Technology 140493379.04 -18360438.04 -18360438.04 -154927.16 Meiling Life 1335609757.7339416387.3639416387.3640668906.07 Appliances (Continued) Last Period Subsidiary Total comprehensive Cash flow from Operation income Net profit income operation activity 310Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （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 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 3. Equity in joint venture or associate enterprise (1) Major joint venture or associate enterprise Shareholding MainJoint venture or Register Business ratio（%) Accounting treatment foroffice investment of joint venture or associate enterprise place nature Directl Indirec associate enterprise place y tly Sichuan Zhiyijia Network Mianyang Mianyang Sales 50.00 Equity Technology Co.Ltd. 2. Financial information for major Joint venture Sichuan Zhiyijia Network Technology Co. Ltd.Item Balance at year-end/Current Balance at year-begin /Last Year Year Current assets 2007299998.18 2466521759.37 Non-current assets 20768579.44 18519147.09 Total assets 2028068577.62 2485040906.46 Current liability 1902969573.01 2343467271.81 Non-current liability 6391421.04 5509063.82 Total liabilities 1909360994.05 2348976335.63 Minority's interest Equity attributable to shareholder of parent 118707583.57136064570.83 company Share of net assets measured by 59353791.7968032285.42 shareholding Adjustment 821877.28 821877.28 311Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Sichuan Zhiyijia Network Technology Co. Ltd.Item Balance at year-end/Current Balance at year-begin /Last Year Year --Goodwill 821877.28 821877.28 Book value of the equity investment for 60175669.0768854162.70 associate enterprise Fair value of equity investment for the affiliates with consideration publicly Operation income 481211169.61 509222643.15 Net profit 16537997.96 37428167.10 Net profit from the termination of the business operations Other comprehensive income Total comprehensive income 16537997.96 37428167.10 Dividend received from associate 5097740.911629022.64 enterprise in Current Year 3. Financial summary for non-important Joint venture and associate enterprise Balance at Balance at year-begin /Last Item year-end/Current Year Year Associated companies： Total book value of investment 21335477.75 43891649.05 Total amount measured by shareholding ratio --Net profit -3204885.32 -28901875.68 --Other comprehensive income -733111.33 7663003.10 -- Total comprehensive income -3937996.65 -21238872.58 4. Excess loss occurred in joint venture or affiliates Hefei Meiling Solar Energy Technology Co. Ltd and ChanghongRubaElectricCompany(Private)Ltd have losses above the quota.IX.Government subsidies (I) New government subsidies in this period Item New subsidy amount in this period Government subsidies related to assets 23346500.00 Of which: included in deferred income 23346500.00 Government subsidies related to income 72019415.65 312Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item New subsidy amount in this period In which: included in other income 72019415.65 Total 95365915.65 (2) Liabilities involving government subsidies Amount included Amount included Increase in this in non-operating Items presented in in other income in Opening amount period income in this financial statements this period Subsidy amount period Deferred income 132977494.33 23346500.00 30888816.43 Subtotal 132977494.33 23346500.00 30888816.43 Continued Amount Amount of of assets Items presented in Other cost offset in written Ending amount Assets/income-related financial statements changes this period off in this period Deferred income 125435177.90 Asset-related Subtotal 125435177.90 (3) Amount of government subsidies included in the current profits and losses Amount of the same Item Current amount period last year Other income 103253170.72 89605122.53 Financial expenses 42100.00 Total 103253170.72 89647222.53 (4) Government subsidies returned in this period Item Returned amount Return reason Return of incentive funds for promoting new industrialization policy in the Hefei Economic Zone 30000.00 Issue error notified to return in 2019 Following personnel dismissal Return of partial prepaid subsidy funds for the new 187500.00 resulting in a decrease in apprenticeship training of enterprises in 2021 subsidies Total 217500.00 X. Relevant risks related with financial instrument 313Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)The main financial instruments of our company include loans accounts receivable accounts payable trading financial assets derivative financial assets trading financial liabilities derivative financial liabilities etc Trading financial liability the details of which are set out in Note V.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 312024 is RMB -84349606.49. Changes in the fair value of derivative financial instruments have been included in the profit and loss and the relevant contents of "V. 9 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 312024 the Company's interest-bearing debts were mainly the fixed-rate loan contracts denominated in RMB with a total amount of RMB776591946.01; The Company's risk of changes in the fair value of financial instruments due to changes in interest rates is 314Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 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 31n2024 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 587980658.36 accounting for 31.76% 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.Financial liabilities are classified by remaining maturity date Item Ending amount 315Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Undiscounted contract Book value Within 1 year 1-3 years More than 3 years amount Bank loan 776591946.01 783822244.05 783822244.05 Derivative financial 156359680.92 156359680.92 156359680.92 liabilities Notes 7934125435.657934125435.657934125435.65 payable Accounts 6132020588.416132020588.416132020588.41 payable other 1025433422.811025433422.811025433422.81 payables Lease liabilities (including 121116910.59142586055.1423319836.39119266218.75 those due within one year) Subtotal 16145647984.39 16174347426.98 16055081208.23 119266218.75 2.Hedging (1)The Company carries out hedging business and risk management The Company mainly uses forward foreign exchange contracts to hedge the risk of exchange rate fluctuations. The Company designates the purchased forward foreign exchange contracts as hedging instruments treats them in accordance with the hedge accounting method and evaluates the hedged items of unconfirmed asset liability itemssuch as unrecognized fixed commitments at the balance sheet date. The Company uses the ratio analysis method to evaluate the effectiveness of the hedge and considers that it is highly effective and the amount of hedge invalidity recognized in the current period is not material Expected The impact of Qualitative The economic Corresponding effective the and relationship between risk management achievement of corresponding Item Quantitative the hedged item and strategies and risk hedging activity information on the related hedging objectives management on the risk hedged risk instrument objectives exposure A foreign The extent to Forward foreign Foreign According to the exchange risk which changes exchange contracts exchange hedge Forward prevention in the fair are hedging hedging refers accounting foreign strategy with value of the instruments that are to the risk standards in exchange hedging as the hedging locked based on the management order to ensure contracts core and risk instrument can foreign exchange activity of the effectiveness prevention as the offset the exposure generated designating a of hedging the 316Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Expected The impact of Qualitative The economic Corresponding effective the and relationship between risk management achievement of corresponding Item Quantitative the hedged item and strategies and risk hedging activity information on the related hedging objectives management on the risk hedged risk instrument objectives exposure purpose change in the by the business: financial premise of fair value or foreign exchange instrument as a exposure cash flows of exposures include hedging hedging is that the hedged book assets and instrument in the currency is item caused by irrevocable orders. order to the same the the hedged Irrevocable orders manage the direction is risk which are defined risk exposure opposite and the commitments that arising from expected date of have not yet been foreign receipt and confirmed; Not yet exchange risk payment of recognized which so that the fair foreign means that it has not value or cash exchange is been recognized in flow of the similar the balance sheet; A hedging firm commitment instrument refers to the changes in exchange of a anticipation of specific amount of offsetting all or resources at an part of the agreed price and the change in the signing of a legally fair value or binding agreement cash flow of at a specific date or the hedged period in the future item (2) The Company conducts qualified hedging business and applies hedge accounting Hedging adjustment of Book value related Hedging Impact of hedging accumulated fair value to hedged items effectiveness and accounting on the Item of hedged items and hedging source of part with Company's included in the book instruments invalid hedging financial statements value of hedged items Fair value hedging Hedging instruments- Financial expenses - Derivative 72010074.43 Exchange losses; financial Investment income; -110397578.69 liabilities Change of income fair value Hedging 156359680.92 317Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Hedging adjustment of Book value related Hedging Impact of hedging accumulated fair value to hedged items effectiveness and accounting on the Item of hedged items and hedging source of part with Company's included in the book instruments invalid hedging financial statements value of hedged items instruments- Derivative financial liabilities hedged 5076274396.73 items-assets hedged items-liabilities 3. Transfer of financial assets (1)Classification of transfer modes Nature of Amount of transferred Derecognized Judgment basis of Transfer mode transferred financial assets or Not derecognition financial assets Notes Almost all its risks and Receivable endorsement/ 2595774351.83 Derecognize d rewards have been financing Notes discount transferred Almost all its risks and Accounts Factoring 7039895390.42 Derecognize d rewards have been receivable transferred Subtotal 9635669742.25 (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 Receivable Notes endorsement/ 2595774351.83-8050999.01 financing Notes discount Accounts Factoring 7039895390.42 -38646658.21 receivable Subtotal 9635669742.25 -46697657.22 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 Item 1st level 2nd level 3rd level Total 318Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Fair value at period-end Item 1st level 2nd level 3rd level Total I. Continuous fair value measurement 1. Derivative financial 72010074.43 72010074.43 assets (1) Forward foreign 72010074.43 72010074.43 exchange contracts 2. Accounts 1516987953.83 1516987953.83 receivable financing 3. Other non 100843017.61 575251286.83 676094304.44 current financial assets Total assets 72010074.43 100843017.61 2092239240.66 2265092332.70 continuously measured at fair value 4. Derivative financial 156359680.92 156359680.92 liabilities (1) Forward 156359680.92 156359680.92 foreign exchange contracts Total liabilities 156359680.92 156359680.92 continuously measured at fair value 2. The basis for determining the market price of continuous and non-continuous first-level fair value measurement items The derivative financial assets held by the Company and measured at the first-level fair value are futures contracts and foreign exchange options and the market price of futures contracts is determined based on the closing price of futures contracts at the end of the period; The market price of foreign exchange options is determined according to the quotation of foreign exchange options contract products by financial institutions 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 Other non-current financial assets held by the Company and measured at the second-level fair value are long-term investments in fund companies and the book value of long-term investments in fund companies after evaluation can represent the best estimate of fair value within this range. 4. Qualitative and quantitative information on the valuation techniques used and important 319Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)parameters for continuous and non-continuous third-level fair value measurement items Other non-current financial assets held by the Company and measured at the third-level fair value are investments in Sichuan Changhong Group Finance Co. Ltd. and Huishang Bank Co. Ltd.and the fair value is estimated by a series of valuation models and the assumptions adopted are not supported by observable market prices or interest rates. The Company believes that the fair value estimated by the valuation technique and its changes are reasonable and the most suitable value on the balance sheet date.The receivable financing held by the Company and measure at the third-level fair value is a bank acceptance bill receivable which has a small credit risk and a short remaining period. The Company determines its fair value based on its face balance.XII. Related parties and related transaction (I) Relationship of related parties 1. Controlling shareholder and ultimate controller Controlling Share-holding Voting rights Registration Business shareholder and Registered capital ratio in the ratio in the place nature ultimate controller Company Company Sichuan Changhong Manufacture Mianyang 4616244222.00 27.36% 27.36% Electric Co. Ltd. and sales (1) Controlling shareholder and ultimate controller Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan ChanghongElectric Co. LTD and the SASAC Mianyang office holds90% equity interests of Sichuan Changhong Electronic Holding Group which means that SASAC Mianyang office is the ultimate controller of the Company. (2) Register capital and change thereof of controlling shareholder Increase this Decrease Controlling shareholder Opening balance Ending balance period this period Sichuan Changhong Electric Co. 4616244222.004616244222.00 Ltd. (3) Shares held by the controlling shareholder and its changes on equity Amount of shares held Shareholding ratio Controlling shareholder Ratio at Ratio at Ending balance Opening balance period-beginn period-end ing Sichuan Changhong Electric Co. 281832434.00281832434.0027.36%27.36% Ltd. 2. Subsidiary Found more in Note “VIII. 1 (1) Enterprise group composition” 320Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 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: For details of the Company's important joint ventures or joint ventures please refer to Note VIII (III) 1: Relevant contents of important joint ventures or 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 Associated enterprise of subsidiary Zhongshan Changhong Ruba Electric Company (Private) Ltd.Changhong Associated enterprise of subsidiary Changhong Sichuan Tianyou Guigu Technology Co. Ltd Air-conditioner Associated enterprise of subsidiary Changhong Ground Energy Heat Tech. Co. Ltd Air-conditioner Associated enterprise of subsidiary Changhong Chengdu Guigu Environmental Tech. Co. Ltd Air-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 Hongyun New-Generation Information technology Venture Capital Fund Partnership (limited Associated enterprise of controlling shareholder partnership) Sichuan Hongran Green Energy Co. Ltd. Associated enterprise of controlling shareholder Sichuan Changxin Refrigeration Parts Co. Ltd. Associated enterprise of controlling shareholder An enterprise where the supervisor of the controlling Mianyang High-tech Zone Hongfu Technology Co. Ltd shareholder acts as its legal representative Associated enterprise of other enterprise that have Sichuan Baiku Technology Co. Ltd the same controlling shareholder Associated enterprise of other enterprise that have Sichuan Hongyu Metal Manufacturing Co. Ltd.the same controlling shareholder Control by same controlling shareholder and CHANGHONG (HK) TRADING LIMITED ultimate controller Control by same controlling shareholder and Changhong Europe Electric s.r.o ultimate controller CHANGHONG.ELECTRIC.(AUSTRALIA)PTY.LTD. Control by same controlling shareholder and 321Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Other related party Relationship with the company ultimate controller Control by same controlling shareholder and Orion.PDP.Co.ltd ultimate controller Control by same controlling shareholder and PT.CHANGHONG ELECTRIC INDONESIA ultimate controller Control by same controlling shareholder and Chengdu Changhong Electronic Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Guangdong Changhong Electronics Co. Ltd.ultimate controller Guangyuan Changhong Electrionics Technology Co. Control by same controlling shareholder and Ltd. ultimate controller Control by same controlling shareholder and 081 Electronic Group Co. Ltd. ultimate controller Control by same controlling shareholder and MianyangHongshang Real Estate Co. Ltd.ultimate controller Control by same controlling shareholder and Mianyang Huafeng Hulian Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Aichuang Science & Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Ailink Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Ansifei Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Aoku Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Hongmofang Network Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Hongwei Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Hongxin Software Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Huafeng Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Jiahong Industry Co. Ltd.ultimate controller Sichuan Kuaiyidian Electric Appliance Service Chain Co. Control by same controlling shareholder and Ltd ultimate controller Control by same controlling shareholder and Sichuan Qineng Zhongzheng Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Qiruik Technology Co. Ltd.ultimate controller 322Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Other related party Relationship with the company Control by same controlling shareholder and Sichuan Qisai Microelectronics Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Package Printing Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Power Source Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Electronic Products Co. Ltd.ultimate controller Sichuan ChanghongGerun Environmental Protection Tech. Control by same controlling shareholder and Co. Ltd. ultimate controller Control by same controlling shareholder and Sichuan Changhong International Hotel Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Group Finance Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan ChanghongJijia Fine Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Jiahua Information Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Education and Technology Co. Ltd ultimate controller Control by same controlling shareholder and Sichuan ChanghongJichuang Lithium Technology Co. Ltd ultimate controller Control by same controlling shareholder and Sichuan Changhong Precision Electronics Tech. Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Minsheng Logistics Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Mold Plastic Tech. Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Device Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Network Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong Property Service Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan Changhong New Energy Technology Co. Ltd.ultimate controller Control by same controlling shareholder and Sichuan ChanghongXinwang Technology Co. Ltd.ultimate controller Sichuan Changhong Intelligent Manufacturing Technology Control by same controlling shareholder and Co. Ltd. ultimate controller Control by same controlling shareholder and Sichuan Changhong Real Estate Co. Ltd.ultimate controller 323Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Other related party Relationship with the company Control by same controlling shareholder and Yibin Hongxing Electric Co. Ltd.ultimate controller Control by same controlling shareholder and Yuanxin Financial Leasing Co. Ltd.ultimate controller Control by same controlling shareholder and Changhong International Holdings (Hong Kong) Co. Ltd.ultimate controller Control by same controlling shareholder and Changhua Huayi Compressor Co. Ltd.ultimate controller Control by same controlling shareholder and Zhongjiu Shining Medical Technology Co. Ltd.ultimate controller (II) Related transactions 1. Purchasing commodity Current Year Approved Last year Whether the（In 10 tradingquota （In 10Related party Content tradinginit isthousand （In 10 thousandexceeded yuan) thousand yuan) yuan) Sichuan Changhong Mold Purchasing 109355.07 130000.00 No 79012.78 Plastic Tech. Co. Ltd. commodity Sichuan Changxin Purchasing 66108.7853476.76 Refrigeration Parts Co. Ltd. commodity Sichuan ChanghongJijia Fine Purchasing 65751.66 65000.00 Yes 47010.15 Co. Ltd. commodity Changhong Huayi Compressor Purchasing 56726.83 80000.00 No 56361.04 Co. Ltd. commodity Mianyang Haili Appliance Co. Purchasing 41209.0936490.77 Ltd commodity Sichuan Aichuang Technology Purchasing 15558.82 30000.00 No 16847.00 Co. Ltd. commodity Sichuan Changhong Package Purchasing 14933.66 20000.00 No 11012.12 Printing Co. Ltd. commodity Sichuan Changhong Electics Purchasing 9529.65 23000.00 No 34337.22 Co. Ltd. commodity Sichuan Changhong Precision Purchasing 3122.63 4000.00 No 2515.35 Electronics Tech. Co. Ltd. commodity Sichuan Aoku Technology Co. Purchasing 2576.51 8000.00 No 2758.52 Ltd. commodity Sichuan Changhong Electronic Purchasing 2433.07 5000.00 No 2771.62 Products Co. Ltd. commodity Changhong International Purchasing 1952.84 16000.00 No 5500.00 Holdings (Hong Kong) Co. commodity 324Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Current Year Approved Last year Whether the（In 10 tradingquota （In 10Related party Content tradinginit isthousand （In 10 thousandexceeded yuan) thousand yuan) yuan) Ltd.Sichuan Ailian Technology Purchasing 1230.76 3000.00 No 1234.06 Co. Ltd. commodity Guangdong Changhong Purchasing 1080.41 6000.00 No 753.21 Electronics Co. Ltd. commodity Sichuan Zhiyijia Network Purchasing 604.42 6000.00 No 806.22 Technology Co. Ltd. commodity Sichuan Changhong Device Purchasing 501.45 6000.00 No 797.63 Technology Co. Ltd commodity Changhong Ruba Electric Purchasing 409.171318.25 Company(Private)Ltd. commodity Sichuan Hongran Green Purchasing 132.33145.41 Energy Co. Ltd. commodity Sichuan Changhong New Purchasing 80.08 5000.00 No 20.18 Energy Technology Co. Ltd. commodity Sichuan Hongwei Technology Purchasing No 33.496000.004.72 Co. Ltd. commodity Sichuan Changhong Purchasing 3.31 5000.00 No 3.23 International Hotel Co. Ltd. commodity Sichuan Jiahong Industrial Co. Purchasing 0.99 5000.00 No 2.80 Ltd. commodity Sichuan Changhong Intelligent Purchasing Manufacturing Technology 0.49 5000.00 No 0.05 commodity Co. Ltd.GuangyuanChanghong Purchasing 160.34 Electronic Technology Co. Ltd commodity CHANGHONG (HK) Purchasing 120.12 TRADING LIMITED commodity Purchasing 081 Electronic Group Co. Ltd. 5.30 commodity Sichuan Hongyu Metal Purchasing 1.47 Manufacturing Co. Ltd. commodity Sichuan Service Exp.Purchasing Appliance Service Chain Co. 0.18 commodity Ltd.Sichuan Changhong Source Purchasing 0.18 Co. Ltd. commodity Total 640275.63 357182.46 325Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 2. Accept the services Whether Approved trading the trading Related party Content Current Year Last Year quota limit is exceeded Sichuan Changhong Accept the Minsheng Logistics 690604599.29 750000000.00 No 683224664.94 services Co. Ltd.Sichuan Service Exp. Appliance Accept the 388970261.6 510000000.00 No 318337233.03 Service Chain Co. services Ltd.Sichuan Changhong Accept the Mold Plastic Tech. 41840238.31 100000000.00 No 40943864.06 services Co. Ltd.Sichuan Changhong Accept the 29383913.77 75000000.00 No 3886724.22 Electric Co. Ltd. services Sichuan Qiruik Accept the Technology Co. 9037166.72 50000000.00 No 9907402.78 services Ltd.Sichuan Changxin Accept the Refrigeration Part 8616507.40 2113071.18 services Co. Ltd.Sichuan Jiahong Accept the 7053542.74 50000000.00 No 5580266.42 Industrial Co. Ltd. services Sichuan Accept the ChanghongJijia 4513721.37 30000000.00 No 7801048.46 services Fine Co. Ltd.Sichuan Hongwei Accept the Technology Co. 2791966.25 75000000.00 No 6920.35 services Ltd.Sichuan Changhong Accept the Electronics Holding 2447354.74 2938000000.00 No 2836845.39 services Group Co. Ltd.Sichuan Hongxin Accept the 1982132.08 75000000.00 No 13997853.78 Software Co. Ltd. services Sichuan Changhong Accept the International Hotel 1306322.67 50000000.00 No 736015.39 services Co. Ltd.Mianyang High-tech Zone Accept the 1293081.71 2000000.00 No Hongfu Technology services Co. Ltd 326Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Whether Approved trading the trading Related party Content Current Year Last Year quota limit is exceeded Sichuan Aichuang Accept the Technology Co. 620668.67 50000000.00 No 1371321.88 services Ltd.Guangdong Changhong Accept the 306937.56 75000000.00 No 1112606.43 Electronics Co. services Ltd.Sichuan Changhong Accept the Electronic Products 221109.20 75000000.00 No services Co. Ltd.Sichuan Changhong Gerun Environmental Accept the 118705.94 50000000.00 No 325332.17 Protection services Technology Co.Ltd Sichuan Changhong Accept the Property Service 112407.14 50000000.00 No 145611.44 services Co. Ltd.Sichuan Zhiyijia Network Accept the 105496.47 75000000.00 No 139286.01 Technology Co. services Ltd.Chengdu Guigu Accept the Environmental 84905.66 services Tech. Co. Ltd Sichuan Changhong Accept the Electric Product 34147.70 75000000.00 No 275044.71 services Co. Ltd.Sichuan Changhong Network Accept the 30517.92 75000000.00 No 30517.92 Technology Co. services Ltd.Sichuan Changhong New Network Accept the 8532.11 75000000.00 No Technology Co. services Ltd.Sichuan Changhong Accept the Intelligent 6042.83 75000000.00 No 94339.62 services Manufacturing 327Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Whether Approved trading the trading Related party Content Current Year Last Year quota limit is exceeded Technology Co.Ltd.Sichuan Hongfangfang Accept the Network 94339.62 services Technology Co.Ltd Yuanxin Financial Accept the 214645.83 Leasing Co. Ltd. services Accept the Orion.PDP.Co.ltd 50097.44 services Sichuan Ailink Accept the Technology Co. 10754.72 services Ltd.Total 1191490279.91 1093141468.17 3. Sales of goods Content Current Period(in 10 Last Period(in 10 Related party thousand Yuan) thousand Yuan) Sichuan Zhiyijia Network Technology Co.Sales of goods 734224.78 728895.73 Ltd.CHANGHONG (HK) TRADING Sales of goods 65382.61 69999.52 LIMITED CHANGHONG ELECTRIC Sales of goods 25696.65 17630.27 (AUSTRALIA) PTY.LTD. Changhong International Holdings (Hong Sales of goods 17436.75 11246.60 Kong) Co. Ltd.Changhong Europe Electric s.r.o Sales of goods 9553.85 10299.23 Orion.PDP.Co.ltd Sales of goods 4062.24 4478.34 Mianyang Huafeng Hulian Technology Co.Sales of goods 790.27 Ltd.Sichuan Service Exp. Appliance Service Sales of goods 616.30 654.81 Chain Co. Ltd.Yuanxin Financial Leasing Co. Ltd Sales of goods 256.85 PT.CHANGHONG ELECTRIC Sales of goods 194.30 INDONESIA Sichuan Changhong Minsheng Logistic Sales of goods 177.14 79.93 328Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Content Current Period(in 10 Last Period(in 10 Related party thousand Yuan) thousand Yuan) Co. Ltd.Sichuan Changhong Electric Co. Ltd. Sales of goods 121.69 472.04 Sichuan Changhong New Energy Sales of goods 98.75 - Technology Co.Ltd.Sichuan ChanghongGerun Environmental Sales of goods 98.43 - Protection Technology Co. Ltd Sichuan Changhong Device Technology Sales of goods 95.13 14.81 Co. Ltd Sichuan Changhong Jiahua Information Sales of goods 43.24 Products Co. Ltd Chengdu Guigu Environmental Technology Sales of goods 29.05 43.78 Co. Ltd Sichuan Aiku Technology Co. Ltd. Sales of goods 25.52 21.93 Sichuan Changhong Mold Plastic Tech.Sales of goods 17.23 21.18 Co. Ltd.Sichuan Changhong Electric Holdings Sales of goods 14.67 0.60 Group Co. Ltd.Sichuan Ailian Technology Co. Ltd. Sales of goods 10.54 0.78 Sichuan Changhong Network Technology Sales of goods 7.54 Co. Ltd.Sichuan Baiku Technology Co.Ltd.; Sales of goods 2.99 19.20 Sichuan Changhong Real Estate Co. Ltd. Sales of goods 2.39 6.11 Sichuan Aichuang Technology Co. Ltd. Sales of goods 2.26 407.43 MianyangHongsheng Real Estate Co. Ltd. Sales of goods 1.59 Sichuan ChanghongJija Fine Co. Ltd. Sales of goods 1.09 2.68 Sichuan Changhong Power Source Co. Ltd. Sales of goods 0.75 5.46 Sichuan Hongwei Technology Co.Ltd. Sales of goods 0.16 Sichuan Changhong International Hotel Sales of goods 0.11 Co. Ltd.Sichuan Changhong Intelligent Sales of goods 258.76 Manufacturing Technology Co. Ltd.Sichuan ChanghongJihuang Lithium Sales of goods 114.78 Technology Co. Ltd Sichuan Tianyou Guigu Technology Co.Sales of goods 96.18 Ltd.Changhong Huayi Compressor Co. Ltd. Sales of goods 89.44 329Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Content Current Period(in 10 Last Period(in 10 Related party thousand Yuan) thousand Yuan) Guangyuan Changhong Electronic Sales of goods 31.76 Technology Co. Ltd Guangdong Changhong Electronic Co. Ltd. Sales of goods 27.03 Ground Energy Heat Pump Tech. Co. Ltd. Sales of goods 23.32 Zhongji Flash Medical Technology Co. Ltd Sales of goods 14.57 Sichuan Qineng Zhongzheng Technology Sales of goods 9.85 Co. Ltd Yibin Hongxing Electric Co. Ltd. Sales of goods 8.67 Sichuan Hongmofang Network Technology Sales of goods 6.06 Co. Ltd.Sichuan Qisai Microelectronics Co.Ltd. Sales of goods 4.99 Sichuan Changhong Precision Electronic Sales of goods 1.08 Technology Co. Ltd Sichuan Jiahong Industril Co. Ltd. Sales of goods 0.84 Sichuan Changhong Property Service Co.Sales of goods 0.46 Ltd.Sichuan Qiruik Technology Co. Ltd. Sales of goods 0.27 Sichuan Ansifei Technology Co. Ltd. Sales of goods 0.01 Total 858964.87 844988.50 4. Providing services Related party Content Current Year Last Year Mianyang Huafeng Hulian Technology Provide the services 10724113.48 349753.68 Co. Ltd.Sichuan Changhong Electric Co. Ltd. Providing services 7577406.09 11395693.06 Sichuan Changhong Mold Plastic Tech.Providing services 4099830.16 3690091.63 Co. Ltd.Sichuan Service Exp. Appliance Service Provide the services 1463906.78 2337991.38 Chain Co. Ltd.Changhong Huayi Compressor Co. Ltd. Provide the services 1396465.80 1343950.04 Sichuan Aichuang Technology Co. Ltd. Providing services 955904.56 4743474.93 Sichuan Changhong New Energy Providing services 660622.02 Technology Co. Ltd.Yuanxin Financial Leasing Co. Ltd. Providing services 570024.15 907791.40 Sichuan Changhong Device Technology Providing services 552789.38 124018.93 Co. Ltd 330Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Related party Content Current Year Last Year Sichuan ChanghongJija Fine Co. Ltd. Provide the services 455956.13 229038.19 Sichuan Changhong Property Service Co.Providing services 214043.74 259029.87 Ltd.Sichuan Changhong Network Technology Provide the services 173539.62 268020.00 Co. Ltd.Sichuan Changhong Minsheng Logistics Providing services 136628.82 425430.66 Co. Ltd.Sichuan Zhiyijia Network Technology Co.Providing services 101440.08 185395.50 Ltd.Changhong International Holdings (Hong Providing services 101351.88 Kong) Limited Sichuan Aoku Technology Co. Ltd. Providing services 77946.40 4456.25 Sichuan Changhong Jihuang Lithium Providing services 53864.91 2277747.12 Technology Co. Ltd Sichuan Changhong International Hotel Providing services 42909.37 65714.90 Co. Ltd Sichuan Changhong Education and Providing services 9000.00 9000.00 Technology Co. Ltd Chengdu Guigu Environment Technology Provide the services 8391.23 10061.17 Co. Ltd.Sichuan Changhong Electric Group Co.Providing services 5875.00 6742.60 Ltd.Sichuan Changhong Electric Part Co. Ltd. Providing services 3600.00 7200.00 Sichuan Ailan Technology Co.Ltd. Providing services 3229.42 Sichuan Qiruik Technology Co. Ltd. Provide the services 1446.00 95653.62 Guangdong Changhong Electronics Co.Providing services 627354.91 Ltd Sichuan Qineng Zhongzheng Technology Providing services 108865.14 Co. Ltd.Sichuan Hongwei Technology Co.Ltd Providing services 69735.85 Sichuan Changhong Real Estate Co. Ltd. Provide the services 45992.16 Sichuan Qisai \Microelectonics Co. Ltd. Providing services 44593.58 Sichuan Changhong Precision Electronic Providing services 21039.34 Technology Co. Ltd Mianyang Huafeng Technology Co. Ltd. Providing services -11201.00 576234.00 Sichuan Changhong Network Technology Provide the services -101370.00 16670.00 Co. Ltd. 331Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Related party Content Current Year Last Year Total 29277714.02 30246739.91 5. Related rental (1) Rent out Leasing income in Leasing income in Lessor Lessee Type of assets Current Period Last Period Apartments Changhong Sichuan Changhong Mold Plastic warehouses 1998754.51 2956810.97 Meiling Tech. Co. Ltd.factories apartment Changhong Sichuan Changhong Jijia Fine Co.forklift 796113.61 950642.38 Meiling Ltd.warehouse Changhong Sichuan Changhong Minsheng apartment office 219708.07 206115.96 Meiling Logistics Co. Ltd.Changhong Sichuan Service Exp. Appliance Apartments 202690.08162376.19 Meiling Service Chain Co. Ltd. Offices Forklifts Changhong Sichuan Zhiyijia Network Apartment 188256.88 188256.88 Meiling Technology Co. Ltd.Changhong Sichuan Aoku Technology Co.Warehouse 5858.10 43392.81 Meiling Ltd.Changhong Sichuan Hongxin Software Co.Apartments 4400.00 Meiling Ltd.Changhong Sichuan Changhong Precision Apartments 1105.00 Meiling Electronic Technology Co. Ltd Changhong Sichuan Aichuang Science & Warehouse 39014.00 Meiling Technology Co. Ltd.Changhong Changhong Huayi Compressor Warehouse 5811.32 Meiling Co. Ltd.Changhong Sichuan Ailink Technology Co.Warehouse 3496.76 Meiling Ltd.Changhong Factory Sichuan Changhong Mold Plastic Air-conditio buildings and 5716010.19 5524818.10 Tech. Co. Ltd.ner equipment Changhong Factory Sichuan Changhong Jijia Fine Co.Air-conditio buildings and 3706088.50 3662397.40 Ltd.ner equipment Changhong Factory Sichuan Changhong Electric Co.Air-conditio buildings and 844041.16 807070.04 Ltd.ner equipment Changhong Sichuan Changxin Refrigeration Processing Air-conditio 53333.35 159999.98 Parts Co. Ltd. equipment of U ner 332Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Leasing income in Leasing income in Lessor Lessee Type of assets Current Period Last Period Changhong Chengdu Guigu Environmental Air-conditio Workshop 28403.67 28403.67 Tech. Co. Ltd ner Changhong Sichuan Changhong Electric Air-conditio Workshop 4.49 Holding Co. Ltd.ner Ridian Sichuan Changhong Device Workshop 1285985.43 2147149.80 Technology Technology Co. Ltd.Changhong Sichuan Changhong Precision Workshop 845919.00 Ridian Electronics Tech. Co. Ltd.Changhong Sichuan Ailink Technology Co.Workshop 47314.29 47314.29 Ridian Ltd.Zhongshan Sichuan Changhong Minsheng Parts of the office 44297.1644297.16 Changhong Logistics Co. Ltd. building rent-out Zhongshan Sichuan Changhong Moulding living area 34946.67 Changhong Tech. Co. Ltd.Zhongshan Sichuan Changhong Precision living area 67200.00 Changhong Electronics Tech. Co. Ltd.Jiangxi Sichuan Changhong Minsheng Warehouse 1016358.11 822288.36 Meiling Logistics Co. Ltd.Jiangxi Sichuan ChanghongJijia Fine Co.warehouse 16000.00 8000.00 Meiling Ltd.Jiangxi Sichuan Aichuang Science & Warehouse 9600.00 9600.00 Meiling Technology Co. Ltd.Jiangxi Sichuan Changhong Minsheng Workshop 9142.86 9142.86 Meiling Logistics Co. Ltd.Jiangxi Sichuan Aoku Technology Co.Warehouse 3840.00 Meiling Ltd.Jiangxi Changhong Huayi Compressor Warehouse 4800.00 Meiling Co. Ltd.Hefei Sichuan Changhong Mold Plastic Workshop 9538474.71 Industrial Tech. Co. Ltd.Hefei Sichuan ChanghongJijia Fine Co.Workshop 2451535.20 2451535.20 Industrial Ltd.Hefei Sichuan Service Exp. Appliance Workshop 243950.40 21600.00 Industrial Service Chain Co. Ltd.Hefei Sichuan Changhong Minsheng Workshop 202464.00 260150.40 Industrial Logistics Co. Ltd.Hefei Sichuan Changhong Education and Workshop 17280.00 6898252.83 Industrial Technology Co. LTD Hefei Sichuan Changhong Precision Workshop 12672547.93 Industrial Electronic Technology Co. Ltd 333Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Leasing income in Leasing income in Lessor Lessee Type of assets Current Period Last Period Total 29491419.28 40242941.45 (2)Lessee of related parties 334Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Variable lease payments not Rental charges for short-term included in lease Interest expenses on lease Rent paid Increased use right assets and low-value assets (if any) liabilities liabilities assumed measurement (if Type of Lessor Lessee any) assets Amount of Amount of Amount Amoun Amount of Amount of Amount of Amount Amount of Amount of current period previous of t of current previous current of current period previous period current previou period period period previous period period s period period Changhong Huayi Jiangxi Staff Compressor Co. 114803.62 115810.67 Meiling dormitory Ltd.Chengdu Changhong Hongmei Electronic Office 128587.13 11572.84 746115.01 Intelligent Technology Co.Ltd.Chengdu Changhong Hongmei Electronic Office 658462.06 678008.96 32923.10 47945.48 658462.06 Intelligent Technology Co.Ltd.Sichuan Zhiyijia Changhong Office 4954.13 Network Air-conditio 335Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Technology Co. ner Ltd.Sichuan Jiahong Changhong Staff Industrial Co. Air-conditio 432717.96 399176.91 dormitory Ltd. ner Sichuan Changhong Changhong Air-conditio Workshop 240198.20 Electric Co. Ltd. ner Sichuan Changhong Changhong Electronics Air-conditio Rent 143252.58 188111.04 7014.92 376222.06 Holding Group ner Co. Ltd.Sichuan Changhong VISA Changhong Air-conditio 306863.00 306863.00 34315.04 34315.04 1534315.05 laboratory Electric Co. Ltd. ner Guangdong Ground Changhong Staff energy heat 81398.37 80355.16 Electronics Co. dormitory pump Ltd.Intelligent Sichuan Jiahong air Staff Industrial Co. 88304.15 conditionin dormitory Ltd.g Sichuan Mianyang Workshop 97312.98 96779.07 2132911.64 2831656.00 1067896.18 451647.92 48252806.05 26088842.03 Changhong Meiling 336Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Electric Co. Ltd.Sichuan Jiahong Mianyang Staff 31379.4032599.20 Industrial Co. Ltd. Meiling dormitory Chengdu Changhong Meiling Electric Life Office 130997.43 Technology Co. appliance Ltd.Guangdong Changhong Ridian Staff 41405.1464994.60 Electronics Co. Technology dormitory Ltd.Total 1132473.95 1063965.62 3414934.87 3816527.96 1153722.08 533908.44 50033605.18 27623157.08 337Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 6. Related guarantee Maximum guarantee Completed Secured party Sponsored party Start Date due amount (Y/N) Guarrantee： (In 10 thousand Yuan) Fulfill Changhong Meiling Meiling Group 4500.00 2023-5-11 2024-5-11 Yes Changhong Meiling Meiling Group 8000.00 2023-7-12 2024-7-11 Yes 2024-10-12027-10-1 Changhong Meiling Meiling Group 20000.00 No 65 Changhong Meiling Ridian Technology 4000.00 2023-7-8 2024-7-8 Yes 2022-11-1 Changhong Meiling Ridian Technology 3500.00 2023-11-9 Yes 0 2024-12-2 Changhong Meiling Ridian Technology 3500.00 2024-2-6 No 8 Zhongshan Changhong Meiling 15000.00 2022-8-15 2023-8-14 Yes Changhong Zhongshan Changhong Meiling 10000.00 2023-5-30 2024-5-29 Yes Changhong Zhongshan Changhong Meiling 6000.00 2023-3-15 2024-3-15 Yes Changhong Zhongshan Changhong Meiling 7000.00 2023-6-15 2024-6-14 Yes Changhong Zhongshan Changhong Meiling 10000.00 2023-5-11 2024-5-10 Yes Changhong Zhongshan Changhong Meiling 15000.00 2023-8-23 2024-8-23 Yes Changhong Zhongshan Changhong Meiling 20000.00 2023-7-3 2024-7-3 Yes Changhong Zhongshan Changhong Meiling 5000.00 2023-7-28 2024-7-27 Yes Changhong Zhongshan Changhong Meiling 10000.00 2023-5-12 2024-5-12 Yes Changhong Zhongshan Changhong Meiling 5000.00 2023-11-2 2024-11-2 Yes Changhong Meiling Life 2022-10-2 2023-10-2 Changhong Meiling 5000.00 Yes Appliances 6 5 Meiling Life Changhong Meiling 2000.00 2023-4-24 2024-4-23 Yes Appliances Meiling Life Changhong Meiling 5000.00 2024-1-1 2024-8-14 Yes Appliances Changhong Meiling Meiling Life 8000.00 2023-2-22 2024-1-12 Yes 338Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Maximum guarantee Completed Secured party Sponsored party Start Date due amount (Y/N) Appliances Meiling Life Changhong Meiling 8000.00 2024-1-22 2025-1-22 No Appliances Meiling Life Changhong Meiling 5000.00 2023-4-21 2024-4-21 Yes Appliances Meiling Life Changhong Meiling 2000.00 2023-11-3 2024-11-2 Yes Appliances Meiling Life 2024-11-3 Changhong Meiling 10000.00 2023-12-1 No Appliances 0 Meiling Life 2023-12-1 Changhong Meiling 4000.00 2024-6-4 Yes Appliances 5 Changhong Changhong Meiling 60000.00 2023-3-18 2024-3-18 Yes air-conditioner Changhong Changhong Meiling 12000.00 2023-4-14 2024-4-13 Yes air-conditioner Changhong 2023-10-1 Changhong Meiling 10000.00 2023-1-17 Yes air-conditioner 1 Changhong Changhong Meiling 5000.00 2023-1-17 2024-1-16 Yes air-conditioner Changhong Changhong Meiling 16000.00 2023-2-27 2024-2-26 Yes air-conditioner Changhong Changhong Meiling 30000.00 2023-3-16 2024-3-16 Yes air-conditioner Changhong 2023-12-1 Changhong Meiling 1500.00 2023-7-5 Yes air-conditioner 3 Changhong 2024-12-3 Changhong Meiling 60000.00 2024-6-18 No air-conditioner 1 Zhongke Meiling Anhui Tuoxing 1000.00 2023-6-20 2024-6-4 Yes Zhongke Meiling Anhui Tuoxing 400.00 2023-8-15 2024-8-14 No 2023-10-22024-10-2 Zhongke Meiling Anhui Tuoxing 1000.00 Yes 00 Zhongke Meiling Anhui Tuoxing 1000.00 2024-7-24 2025-6-17 No Zhongke Meiling Lingan Medical 1000.00 2023-8-25 2024-8-24 Yes 2023-10-22024-10-2 Zhongke Meiling Lingan Medical 1000.00 Yes 00 2024-10-2025-10- Zhongke Meiling Lingan Medical 1000.00 No 3130 339Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Maximum guarantee Completed Secured party Sponsored party Start Date due amount (Y/N) Counter guarrantee： Meiling Group Changhong Meiling 4500.00 2023-5-11 2024-5-11 Yes Meiling Group Changhong Meiling 8000.00 2023-7-12 2024-7-11 Yes 2024-10-12027-10-1 Meiling Group Changhong Meiling 20000.00 No 65 Ridian Technology Changhong Meiling 4000.00 2023-7-8 2024-7-8 Yes 2022-11-1 Ridian Technology Changhong Meiling 3500.00 2023-11-9 Yes 0 2024-12-2 Ridian Technology Changhong Meiling 3500.00 2024-2-6 No 8 Zhongshan Changhong Meiling 15000.00 2022-8-15 2023-8-14 Yes Changhong Zhongshan Changhong Meiling 10000.00 2023-5-30 2024-5-29 Yes Changhong Zhongshan Changhong Meiling 6000.00 2023-3-15 2024-3-15 Yes Changhong Zhongshan Changhong Meiling 7000.00 2023-6-15 2024-6-14 Yes Changhong Zhongshan Changhong Meiling 10000.00 2023-5-11 2024-5-10 Yes Changhong Zhongshan Changhong Meiling 15000.00 2023-8-23 2024-8-23 Yes Changhong Zhongshan Changhong Meiling 20000.00 2023-7-3 2024-7-3 Yes Changhong Zhongshan Changhong Meiling 5000.00 2023-7-28 2024-7-27 Yes Changhong Zhongshan Changhong Meiling 10000.00 2023-5-12 2024-5-12 Yes Changhong Zhongshan Changhong Meiling 5000.00 2023-11-2 2024-11-2 Yes Changhong Meiling Life 2022-10-2 2023-10-2 Changhong Meiling 5000.00 Yes Appliances 6 5 Meiling Life Changhong Meiling 2000.00 2023-4-24 2024-4-23 Yes Appliances Meiling Life Changhong Meiling 5000.00 2024-1-1 2024-8-14 Yes Appliances Meiling Life Changhong Meiling 8000.00 2023-2-22 2024-1-12 Yes Appliances 340Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Maximum guarantee Completed Secured party Sponsored party Start Date due amount (Y/N) Meiling Life Changhong Meiling 8000.00 2024-1-22 2025-1-22 No Appliances Meiling Life Changhong Meiling 5000.00 2023-4-21 2024-4-21 Yes Appliances Meiling Life Changhong Meiling 2000.00 2023-11-3 2024-11-2 Yes Appliances Meiling Life 2024-11-3 Changhong Meiling 10000.00 2023-12-1 No Appliances 0 Meiling Life 2023-12-1 Changhong Meiling 4000.00 2024-6-4 Yes Appliances 5 Changhong Changhong Meiling 60000.00 2023-3-18 2024-3-18 Yes air-conditioner Changhong Changhong Meiling 12000.00 2023-4-14 2024-4-13 Yes air-conditioner Changhong 2023-10-1 Changhong Meiling 10000.00 2023-1-17 Yes air-conditioner 1 Changhong Changhong Meiling 5000.00 2023-1-17 2024-1-16 Yes air-conditioner Changhong Changhong Meiling 16000.00 2023-2-27 2024-2-26 Yes air-conditioner Changhong Changhong Meiling 30000.00 2023-3-16 2024-3-16 Yes air-conditioner Changhong 2023-12-1 Changhong Meiling 1500.00 2023-7-5 Yes air-conditioner 3 Changhong 2024-12-3 Changhong Meiling 60000.00 2024-6-18 No air-conditioner 1 Anhui Tuoxing Zhongke Meiling 1000.00 2023-6-20 2024-6-4 Yes Anhui Tuoxing Zhongke Meiling 400.00 2023-8-15 2024-8-14 No 2023-10-22024-10-2 Anhui Tuoxing Zhongke Meiling 1000.00 Yes 00 Anhui Tuoxing Zhongke Meiling 1000.00 2024-7-24 2025-6-17 No Lingan Medical Zhongke Meiling 1000.00 2023-8-25 2024-8-24 Yes 2023-10-22024-10-2 Lingan Medical Zhongke Meiling 1000.00 Yes 00 2024-10-32025-10-3 Lingan Medical Zhongke Meiling 1000.00 No 10 7. Assets transfer and debt reorganization of related parties 341Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Current Related party Type Last Period Period Sale of 1761621.3 Sichuan Changhong Electric Co. Ltd.Fixed assets 4 Sale of Sichuan Qiruik Technology Co. Ltd. 359033.63 Fixed assets Sale of Guangdong Changhong Electric Co. Ltd. 83599.99 Fixed assets Sale of Sichuan Changhong Mold Paasitic Technology Co. Ltd 58103.56 Fixed assets Sale of Sichuan Service Exp. Appliance Service Chain Co. Ltd. 14493.81 Fixed assets Purchase and 1551878.4 Sichuan Hongxin Software Co. Ltd. construction 3061404.42 5 of fixed assets Constructio Sichuan Changhong Electric Co. Ltd. n of fixed 952598.21 428600.00 assets Purchase and Sichuan Changhong Intelligent Manufacturing Technology Co.construction 352395.49 2100406.26 Ltd.of fixed assets Purchase and Sichuan Hongwei Technology Co. Ltd. construction 281000.00 of fixed assets Purchase and Sichuan Qiruik Technology Co. Ltd. construction 146900.00 of fixed assets Purchase and Sichuan Changhong Electronics Holding Group Co. Ltd. construction 1698113.21 of fixed assets Purchase Sichuan Changhong Jiahua Information Product Co. Ltd. 275800.17 and 342Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)construction of fixed assets Purchase and Chengdu Guigu Environment Technology Co. Ltd. construction 50600.00 of fixed assets Purchase and 081 Electronic Group Co. Ltd. construction 184634.57 of fixed assets Purchase and Sichuan Zhiyijia Network Technology Co. Ltd. construction 78818.00 40519.46 of fixed assets Purchase of Sichuan Hongxin Software Co. Ltd. intangible 679245.28 3192988.66 assets Purchase of Sichuan Qiruik Technology Co. Ltd. intangible 288000.00 assets 6504322.311136432.1 Total 38 8. Other related party transactions Current Period (in 10 Last Period (in 10 thousand Name of company Content thousand Yuan) Yuan) Yuanxin Financial Leasing Financing business 149852.72 47232.36 Co. Ltd. 9. Related transaction with Changhong Finance Company (1) Saving balance Interest income from bank Name of company Ending balance Opening balance saving in the period Changhong Meiling Co. Ltd. 1415028147.56 2052187201.79 45273962.71 Zhongshan Changhong Electric Co. Ltd 1283231387.72 761905289.07 13733280.71 343Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Interest income from bank Name of company Ending balance Opening balance saving in the period Sichuan Changhong Air-conditioner Co. 1255972933.70977689247.5818017640.33 Ltd Hefei Changhong Meiling Life 240741317.89243577856.452978281.45 Appliances Co. Ltd.Ground Energy Heat Pump Tech. 169736029.92167225376.643247242.76 (Zhongshan) Co. Ltd.Changhong Meiling Ridian Technology 80215052.0756655316.22179946.97 Co. Ltd.Zhongke Meiling Cryogenic Technology 80025044.4660561687.381101447.61 Co. Ltd Hefei Changhong Industrial Co. Ltd. 33061349.30 1890237.02 68592.31 Anhui Tuoxing Technology Co. Ltd. 7364529.96 7358942.16 161550.47 Anhui Ling'an medical equipment Co. 2991432.99825.26126.31 Ltd.Hefei Meiling Group Holdings Limited 498534.27 304516.48 6580.09 Mianyang Meiling Refrigeration Co. 14082.6213743.0050.63 Ltd.Jiangxi Meiling Electric Appliance Co. 9230.509667.6439.80 Ltd.Ground Energy Heat Pump Tech. Co. 0.51 Ltd.Sichuan Changhong Intelligent Air 2016.30 Conditioning Technology Co. Ltd.Total 4568889072.96 4329379906.69 84770758.96 (2) Discounted bills Discounting fees Name face amount Bill discount amount Amount of expenses Sichuan Changhong Air-conditioner Co. 888967457.93882371606.006595851.93 Ltd Changhong Meiling Co. Ltd. 532621822.26 529682758.57 2939063.69 Sichuan Changhong Intelligent Air 222837475.57222837475.57 Conditioning Technology Co. Ltd Hefei Changhong Meiling Life Appliances 130877265.21130125972.66751292.55 Co. Ltd.Zhongshan Changhong Electric Co. Ltd 8377206.93 8318511.81 58695.12 Changhong Meiling Ridian Technology 7539519.04 7503749.88 35769.16 344Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Discounting fees Name face amount Bill discount amount Amount of expenses Co. Ltd.Anhui Ling'an medical equipment Co. Ltd. 3000000.00 2985000.00 15000.00 Total 1794220746.94 1783825074.49 10395672.45 (3) Issuance of invoices Name of company Issuer Bill amount Types Financial Sichuan Changhong Sichuan Changhong Group Finance 837430755.91 company Air-conditioner Co. Ltd. Co. Ltd.acceptance bill Financial Zhongshan Changhong Electric Sichuan Changhong Group Finance 440492818.94 company Co. Ltd. Co. Ltd.acceptance bill Financial Ground Energy Heat Pump Tech. Sichuan Changhong Group Finance 191117342.13 company (Zhongshan) Co. Ltd. Co. Ltd.acceptance bill Financial Sichuan Changhong Group Finance Changhong Meiling Co. Ltd. 96656000.00 company Co. Ltd.acceptance bill Financial Hefei Changhong Meiling Life Sichuan Changhong Group Finance 95895778.80 company Appliances Co. Ltd. Co. Ltd.acceptance bill Financial Zhongke Meiling Cryogenic Sichuan Changhong Group Finance 43722178.46 company Technology Co. Ltd. Co. Ltd.acceptance bill Financial Hefei Meiling Group Holdings Sichuan Changhong Group Finance 35793311.60 company Limited Co. Ltd.acceptance bill Financial Changhong Meiling Ridian Sichuan Changhong Group Finance 8921432.24 company Technology Co. Ltd. Co. Ltd.acceptance bill Financial Anhui Ling'an medical equipment Sichuan Changhong Group Finance 1074502.45 company Co. Ltd. Co. Ltd.acceptance bill Total 1751104120.53 (4) Credit or other financial services Name Transaction content Amount incurred this year 345Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Name Transaction content Amount incurred this year Sichuan Changhong Air Conditioning Co. Ltd Guarantee letter 628690.07 Total 628690.07 10.Remuneration for key management Current Year (In 10 Last Year (In 10 thousand Item thousand yuan) yuan) Remuneration for key management 920.64 516.67 (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 Sichuan Zhiyijia Account Network Technology 128220885.04 83477192.59 188235530.60 110410176.95 receivable Co. Ltd.Account CHANGHONG (HK) 124276627.62139679048.37 receivable TRADING LIMITED Changhong Account International Holdings 90937385.97 5052875.52 67734903.25 3339617.94 receivable (Hong Kong) Co. Ltd.CHANGHONG Account ELECTRIC 74487210.9439350.4079488591.21 receivable (AUSTRALIA) PTY.LTD.Changhong Ruba Account Electric Company 41322357.73 41322357.73 40856357.09 40856357.09 receivable (Private) Ltd.Account Orion.PDP.Co.ltd 12279923.14 13506278.22 receivable Mianyang Huafeng Account Hulian Technology 9218144.00 8800.00 receivable Co. Ltd.Account Changhong Europe 2558625.1742995.8331860854.17 receivable Electric s.r.o Sichuan Changhong Account Electric Appliance 729165.87 7510684.66 receivable Co. Ltd 346Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise 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 402121.613195467.74 receivable Technology Co. Ltd.Account Yuanxin Financial 381503.00558665.14 receivable Leasing Co. Ltd.Account Changhong Huayi 380929.13718403.54 receivable Compressor Co. Ltd.Sichuan Service Exp.Account Appliance Service 323007.09 351250.17 receivable Chain Co. Ltd.Sichuan Account ChanghongJijia Fine 293742.36 receivable Co. Ltd.Account Sichuan Changhong 8300.00 receivable Electric Part Co. Ltd.Account Sichuan Aoku 5618.00 receivable Technology Co. Ltd.Sichuan Changhong Account Minsheng Logistics 2980.00 12760.00 receivable Co. Ltd.Sichuan Changhong Account Intelligent 727500.00 receivable Manufacturing Technology Co. Ltd.Account paid Sichuan Changhong 216411.80 in advance Electric Co. Ltd.Sichuan Huafeng Account paid Technology Co. 176400.00 in advance Ltd./ Sichuan Changhong Account Modeling Technology 176175.52 receivable Co. Ltd.Account Sichuan Changhong 119213.45 receivable Real Estate Co. Ltd.Sichuan Changhong Account New Network 112000.00 receivable Technology Co. Ltd.Sichuan Changhong Account Network Technology 96000.00 receivable Co. Ltd. 347Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise 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 Sichuan Changhong Account Lithium Battery 30600.00 receivable Technology Co. Ltd.Account Sichuan Changhong 954.00 receivable Electric Part Co. Ltd.Sichan Changhong Account Electric Holdings 720.00 receivable Group Co. Ltd.Chengdu Changhong Account paid Electric Technology 345692.58 381126.07 in advance Co. Ltd.Sichuan Changhong Account paid Minsheng Logistics 248306.00 8396.00 in advance Co. Ltd.Account paid Sichuan Ailian 50889.4953247.60 in advance Technology Co. Ltd.Account paid Sichuan Changhong 19.17 in advance Electric Co. Ltd.Sichuan Hongyun New-Generation Other Information account technology Venture 2217600.00 receivable Capital Fund Partnership (limited partnership) Other Sichuan Service Exp.account Appliance Service 570493.29 313490.41 receivable Chain Co. Ltd.Other Sichuan Zhyijia account Network Technology 209510.00 303019.00 receivable Co. Ltd.Other Sichuan Jiahong account 19982.00 Industrial Co. Ltd.receivable Other Sichuan Changhong account Property Service Co. 2904.93 2904.93 receivable Ltd.Other Sichuan Changhong 17129427.73 account Electric Appliance 348Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise 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 receivable Co. Ltd Yuanxin Financial Contract assets 534886.00 Leasing Co. Ltd.Total 490028790.96 129934772.07 593565199.84 154606151.98 2.Payable items Item Related party Balance at year-end Balance at year-begin Account Sichuan Changhong Electric Holdings Group 299558983.3723732724.50 payable Co. Ltd.Account Sichuan Changhong Mold Plastic Tech. Co. 258862002.89173023852.05 payable Ltd.Account Sichuan ChanghongJijia Fine Co. Ltd. 130536924.54 32211531.65 payable Account Changhong Huayi Compressor Co. Ltd. 106340141.35 117609190.18 payable Account Sichuan Changxin Refrigeration Parts Co. 55712908.2017976156.76 payable Ltd.Account Sichuan Aichuang Science & Technology Co. 50559432.8656579812.80 payable Ltd.Account Sichuan Changhong Package Printing Co. 37429782.7114430893.66 payable Ltd.Account Changhong Ruba Electric Company (Private) 19165511.4513195411.19 payable Ltd.Account Sichuan Changhong Electric Co. Ltd. 16714312.78 2863953.34 payable Account Changhong International Holdings (Hong 16331072.348933631.46 payable Kong) Co. Ltd.Account Sichuan Changhong Precision Electronics 7834650.422884803.49 payable Tech. Co. Ltd.Account Sichuan Aoku Technology Co. Ltd. 7036322.79 14614765.93 payable Account Sichuan Changhong Electronic Products Co. 6151227.603801344.25 payable Ltd.Account Sichuan Changhong Minsheng Logistics Co. 3463779.164022048.97 payable Ltd.Account Sichuan Ailink Technology Co. Ltd. 3277511.80 1721318.59 payable 349Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Related party Balance at year-end Balance at year-begin Account Guangdong Changhong Electric Co. Ltd. 3006306.65 1554593.15 payable Account Sichuan Service Exp. Appliance Service Chain 892549.81725473.65 payable Co. Ltd.Account Sichuan Hongxin Software Co. Ltd. 779047.17 451301.89 payable Account Sichuan Hongwei Technology Co. Ltd. 297860.00 5492.64 payable Account Sichuan Changhong Electronic Products Co. 272906.941148884.00 payable Ltd.Account Sichuan Changhong New Energy Technology 252981.10225732.08 payable Co. Ltd.Account Sichuan Changhong Intelligent Manufacturing 239196.58270846.58 payable Technology Co. Ltd.Account Sichuan Changhong International Hotel Co. 106873.00146276.00 payable Ltd.Account Sichuan Zhiyijia Network Technology Co. 32784.7335267.63 payable Ltd.Account Sichuan Qiruik Technology Co. Ltd. 32000.00 32000.00 payable Account Chengdu Guigu Environmental Tech. Co. Ltd 8247.36 57178.00 payable Account Mianyang Haili Appliance Co. Ltd. 17723765.52 payable Account PT.CHANGHONG ELECTRIC INDONESIA 1514130.31 payable Account GuangyuanChanghong Electric Technology 50286.58 payable Co. Ltd.Account Sichuan Jiahong Industrial Co. Ltd. 396.00 payable Contract Sichuan Zhiyijia Network Technology Co. 71546849.7532073215.34 liability Ltd.Contract Zhongjiu Flash Medical Technology Co. Ltd 419207.79 liability Contract Sichuan Changhong Electric Co. Ltd. 354131.55 353941.29 liability Contract Sichuan Changhong International Holidng(hk) 427524.5991046.37 liability Co. Ltd Contract Sichuan Aichuang Technology Co. Ltd. 198900.00 liability 350Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Related party Balance at year-end Balance at year-begin Contract Sichuan ChanghongGerun Environmental 175023.04 liability Protection Technology Co. Ltd Contract Sichuan Baiku Technology Co. Ltd. 138472.56 22932.74 liability Contract Sichuan Service Exp. Appliance Service Chain 42786.1710727.89 liability Co. Ltd.Contract Sichuan Changhong Minsheng Logistics Co. 14654.8914654.86 liability Ltd.Contract CHANGHONG (HK) TRADING LIMITED 922.22 908.66 liability Contract Sichuan Anshifei Technology Co. Ltd. 2646.19 liability Contract Sichuan Changhong Mold Plastic Tech. Co. 2415.93 liability Ltd.Contract 081 Electronic Group Co. Ltd. 22.61 liability Lease liability Sichuan Changhong Electric Co. Ltd. 24991184.60 27418257.97 Chengdu Changhong Electronic Technology Lease liability 345692.58 381126.07 Co. Ltd.Sichuan Changhong Electronics Holding Lease liability 188111.02 Group Co. Ltd.Chengdu Changhong Electronic Technology Lease liability 381126.07 Co. Ltd.Sichuan Changhong Minsheng Logistics Co.Other payable 168320548.19 132815918.64 Ltd.Sichuan Service Exp. Appliance Service Chain Other payable 129354211.90 82400851.21 Co. Ltd.Other payable Sichuan Changhong Electric Co. Ltd. 4455214.28 58735.52 Sichuan Changhong Electronics Holding Other payable 2235171.18 393156.00 Group Co. Ltd.Sichuan Changhong Mold Paasitic Technology Other payable 1933572.12 2559981.65 Co. Ltd Other payable Changhong Huayi Compressor Co. Ltd. 1801167.60 1903400.00 Other payable Sichuan Hongwei Technology Co. Ltd. 1262762.78 - Other payable Sichuan Qiruik Technology Co. Ltd. 826071.35 585767.70 Other payable Sichuan ChanghongJijia Fine Co. Ltd. 430500.00 425492.32 Other payable Sichuan Jiahong Industrial Co. Ltd. 301482.92 18.00 351Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Item Related party Balance at year-end Balance at year-begin Sichuan Zhiyijia Network Technology Co.Other payable 232021.08 566063.25 Ltd.Other payable Sichuan Hongxin Software Co. Ltd. 187735.85 594516.98 Sichuan ChanghongGerun Environmental Other payable 150000.00 - Protection Technology Co. Ltd Other payable Sichuan Aoku Technology Co. Ltd. 132973.56 260212.20 Other payable Sichuan Aichuang Technology Co. Ltd. 101132.08 1443020.00 Sichuan Changhong Electronic Products Co.Other payable 100000.00 50000.00 Ltd.Sichuan Changxin Refrigeration Parts Co.Other payable 57098.03 173907.41 Ltd.Other payable Sichuan Ailian Technology Co. Ltd. 51306.28 50000.00 Sichuan Changhong Package Printing Co.Other payable 50000.00 139699.18 Ltd.Other payable 081 Electronic Group Co. Ltd. 40867.89 - Sichuan Changhong Intelligence Other payable 34550.00 109596.00 Manufacturing Technology Co. Ltd.Other payable Guangdong Changhong Electric Co. Ltd. 17514.52 25113.76 Chengdu Guigu Environmental Technology Other payable 5717.80 - Co. Ltd Sichuan Changhong International Hotel Co.Other payable 849.06 - Ltd Other payable Yuanxin Financial Leasing Co. Ltd - 61295062.03 Sichuan Changhong New Energy Technology Other payable - 50000.00 Co. Ltd.Other payable CHANGHONG (HK) TRADING LIMITED - 3334.85 Sichuan Changhong Precision Electronic Other payable - 734.43 Technology Co. Ltd Sichuan Changhong Device Technology Co.Other payable - 29.70 Ltd.Total 1435821246.83 858200695.67 XIII. Commitments and contingencies (I) Important commitments As of December 31 2024 the Company has no important commitments that should be disclosed but not disclosed. 352Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)(II) 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". Up to now Zhongke Meiling and Zhejiang Teruisi Pharmaceutical Inc.have reached a preliminary settlement intention and have withdrawn the third-stage cost appraisal from the court and both are communicating the project maintenance plan. The estimated maintenance cost is RMB 1720534.42.As of December 31 2024 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 XIVI. Events occurring after the balance sheet date 1. Profit distribution: According to the audit by Pan-China Certified Public Accountants LLP in 2024 the net profit realized in individual financial statements of the parent company was RMB 254008762.00. As of December 31 2024 the cumulative undistributed profit in individual financial statements of the parent company was RMB1213740009.40. In addition in the consolidated financial statements of the company for the year 2024 the net profit attributable to the owners of the parent company was 699270051.82 yuan. As of December 31 2024 the cumulative undistributed profit in the consolidated financial statements was 1803207185.06 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 2024 is the accumulated undistributed profit of RMB 1213740009.40 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 2024 the company will distribute a cash dividend of 3.3 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 339874825.95 yuan.After this distribution it is expected that the remaining cumulative undistributed profit of the parent company will be 873865183.45 yuan and the remaining undistributed profit will be 353Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)carried forward for distribution in future years.The aforementioned plan has been reviewed and approved by the 12th meeting of the 11th Board of Directors of the company and is still awaiting approval by the shareholders' meeting.XV. Other significant matters (I) Branch information 1. Determine the factors considered by the reporting segment The Company determines the reporting segment based on the internal organizational structure management requirements and internal reporting system and according to the business segment. It assesses the operating performance of refrigerator freezer and washing machine business air conditioner business small home appliances business and other product business respectively. 2.Branch information In RMB 10000 Refrigerator freezer Small home Sales in Item Air-conditioner Other Total Washing appliances branch machine Operation 1142403.051561619.05167973.8845208.5457100.912860103.60 income Including: foreign trade 1133744.67 1561597.20 148555.36 16206.38 2860103.60 income Income from transactions 8658.3821.8519418.5129002.1757100.91 between divisions Operation 1121856.591519683.59165473.4842824.0956715.272793122.48 expenses Other income and expense 12667.10 1917.89 1628.23 988.70 2825.27 14376.66 items Operation 33213.5643853.344128.623373.153210.9081357.78 profit Total assets 1356959.01 1085358.64 91131.17 49139.52 203023.35 2379565.00 Total liability 811539.38 897997.95 60986.28 12272.00 37578.81 1745216.79 Supplementary information 354Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Depreciation and 24434.5316321.41324.242045.56183.5842942.15 amortization expenses Capital 21278.2527359.307.99953.5549599.08 expenditure Not :Total assets do not include deferred income tax assets and total liabilities exclude deferred income tax liabilities.XVI. Notes to main items of financial statement of parent company 1.Account receivable (1) By account age Account age Balance at year-end Balance at year-begin Within 1 year（Including 1 year） 844020537.28 1455451760.05 Including： Within 3 months (3 months included) 804602070.05 1405485686.08 More than 3 months and less than 6 months (6 months 37341630.4840372699.21 included) Over 6 months and within one year (One year included) 2076836.75 9593374.76 Over one year - within 2 years (2 years included) 967919.29 13012239.58 Over 2 years - within 3 years (3 years included) 6068876.14 26677206.61 Over 3 years 46551037.50 24592353.91 Total 897608370.21 1519733560.15 (2) By accrual of bad debt provision 1) Detail Ending Balance Book balance Bad debt provision Category Ratio Ratio Book value Amount Amount (%)(%) Account receivable that withdrawal bad debt provision 550963154.98 61.38 57852034.98 10.50 493111120.00 by single item Including: Account receivable 24607781.542.7424607781.54 with letter of credit 355Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Ending Balance Book balance Bad debt provision Category Ratio Ratio Book value Amount Amount (%)(%) Current payment with related 506527455.8356.4340131974.457.92466395481.38 party Receivables whose single amount is not significant but 19827917.612.2117720060.5389.372107857.08 whose single provision for bad debts Account receivable withdrawal 346645215.2338.626520449.241.88340124765.99 bad debt provision by portfolio Including: account receivable 346645215.2338.626520449.241.88340124765.99 of engineering customers Total 897608370.21 100.00 64372484.22 7.17 833235885.99 Continued Amount at year-begin Book balance Bad debt provision Category Ratio Ratio Book value Amount Amount (%)(%) Account receivable that withdrawal bad debt 876212956.55 57.66 53914896.27 6.15 822298060.28 provision by single item Including: Account receivable with letter of 52483325.93 3.45 52483325.93 credit Current payment with 803660757.4652.8839553880.214.92764106877.25 related party Receivables whose single amount is not significant 20068873.161.3214361016.0671.565707857.10 but whose single provision for bad debts Account receivable withdrawal bad debt 643520603.60 42.34 14023130.16 2.18 629497473.44 provision by portfolio Including: account receivable of engineering 643520603.60 42.34 14023130.16 2.18 629497473.44 customers Total 1519733560.15 100.00 67938026.43 4.47 1451795533.72 356Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement) 2) ) Account receivable withdrawal bad debt provision by portfolio Balance at year-end Account age Book balance Bad debt provision Provision ratio (%) Within 3 months (3 months included) 341176281.76 3411762.82 1.00 More than 3 months and less than 6 342770.6234277.0610.00 months (6 months included) Over 6 months and within one year (One 2076836.75415367.3520.00 year included) Over one year - within 2 years (2 years 780567.95390283.9850.00 included) Over 2 years - within 3 years (3 years 0.600.4880.00 included) Over 3 years 2268757.55 2268757.55 100.00 Total 346645215.23 6520449.24 1.88 Continued Balance at year-begin Account age Book balance Bad debt provision Provision ratio (%) Within 3 months (3 months included) 616484217.92 6164842.18 1.00 More than 3 months and less than 6 10991345.131099134.5110.00 months (6 months included) Over 6 months and within one year (One 9190814.211838162.8420.00 year included) Over one year - within 2 years (2 years 2053806.511026903.2650.00 included) Over 2 years - within 3 years (3 years 4531662.283625329.8280.00 included) Over 3 years 268757.55 268757.55 100.00 Total 643520603.60 14023130.16 2.18 (3) Changes in bad debt provisions 1) Detail Changes this year Balance at Resale Balance at Category year-begin Withdrawal Other Accrual or year-end or reversal decreases write-off Withdrawal 53914896.273987224.5850085.8757852034.98 bad debt 357Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Changes this year Balance at Resale Balance at Category year-begin Withdrawal Other Accrual or year-end or reversal decreases write-off provision by single item Withdrawal bad debt 14023130.16-7502680.926520449.24 provision by portfolio Total 67938026.43 -3515456.34 50085.87 64372484.22 (5) Top 5 accounts receivable and contract assets amount Top 5 receivables collected by arrears party amounting to 540891866.45 yuan in total accounted for 60.26% of the receivables of current year-end the bad debt provision accrual correspondingly amounting to 2028050.45 yuan at year-end balance. 2.Other account receivable (1) Detail Ending balance Ending balance Opening balance Dividend receivable 12124951.70 Other account receivable 137057080.76 61841221.91 Total 149182032.46 61841221.91 (2) Dividend receivable Detail Ending balance Ending balance Opening balance Sichuan Zhiyijia Network Technology Co. Ltd. 11849751.70 Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited 275200.00 Partnership Subtotal 12124951.70 (3) Other receivable 1)) Category of other account receivable 358Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Book balance at Book balance at Nature year-end year-begin Loans of employee’s pretty cash 5755189.42 10727346.46 Cash deposit 4369898.32 4109987.09 Export rebate 95274068.20 41179511.61 Related party 31839049.68 5957370.23 Other 473034.34 456265.42 Subtotal 137711239.96 62430480.81 2) By account age Account age Balance at year-end Balance at year-begin Within 3 months 105115890.25 53994269.35 More than 3 months and less than 6 months 370007.17 1161881.37 Over 6 months and within one yea 971808.01 2017703.46 1-2 years 1486879.41 1206412.81 2-3 years 313350.00 1288721.92 Over 3 years 29453305.12 2761491.90 Subtotal 137711239.96 62430480.81 3) By accrual of bad debt provision * Detail Amount at year-end Book balance Bad debt provision Category Ratio Ratio Book value Amount Amount (%)(%) That withdrawal bad debt 137711239.96100.00654159.200.48137057080.76 provision by single item In which: other receivables with no major individual amount but bad debt 10598122.08 7.70 654159.20 6.17 9943962.88 provision accrued individually Export rebate receivable 95274068.20 69.18 95274068.20 Other receivables under the 31839049.6823.1231839049.68 same control and of related 359Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Amount at year-end Book balance Bad debt provision Category Ratio Ratio Book value Amount Amount (%)(%) parties with significant influence In which: other receivables accrued by aging portfolio Total 137711239.96 100.00 654159.20 0.48 137057080.76 Continued Balance at year-begin Book balance Bad debt provision Category Ratio Ratio Book value Amount Amount (%)(%) That withdrawal bad debt 62430480.81100.00589258.900.9461841221.91 provision by single item In which: other receivables with no major individual 15293598.9724.50589258.903.8514704340.07 amount but bad debt provision accrued individually Export rebate receivable 41179511.61 65.96 41179511.61 Other receivables under the same control and of related parties with 5957370.23 9.54 5957370.23 significant influence In which: other receivables accrued by aging portfolio Total 62430480.81 100.00 589258.90 0.94 61841221.91 4) Changes in bad debt provisions * Detail First stage Second stage Third stage Expected credit Expected credit loss Item Expected credit loss for the whole for the whole Subtotal loss in next 12 duration (credit duration (no credit months impairment has impairment) occurred) Balance at year-begin 589258.90 589258.90 Balance at year-begin —————— in Current Year 360Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)First stage Second stage Third stage Expected credit Expected credit loss Item Expected credit loss for the whole for the whole Subtotal loss in next 12 duration (credit duration (no credit months impairment has impairment) occurred) --Transfer to the second stage -- Transfer to the third stage -- Reversal to the second stage -- Reversal to the first stage Provision in Current 64900.3064900.30 Year Reversal in Current Year Write off in Current Year Other change Balance at year-end 654159.20 654159.20 * Bad debt provision for other receivables accrued recovered or reversed this year Amount of change this year Year-end Category Year-beginning Recovery or Write-off or Accrual Other balance reversal cancellation Withdrawal bad debt provision 589258.90 64900.30 654159.20 by single item Total 589258.90 64900.30 654159.20 5) Top 5 other receivables 361Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Proportion Bad in total debt other provi receivable sion Name Nature Balance at year-end Account age s ending Balan balance ce at (%) year-e nd Unit I Tax rebate 95274068.20 Within 3 months 69.18 Within 3 months6months-1 Unit II Related party 26524883.46 19.26 year1-2 years2-3 yearsOver 3 years Loans of Unit III employee’s pretty 2217600.00 Within 3 months 1.61 cash Unit IV Cash deposit 1461173.01 Within 3 months 1.06 Loans of Unit V employee’s pretty 1437680.00 Within 3 months 1.05 cash Total 126915404.67 92.16 3. Long-term equity investments (1) Detail Ending balance Item Book balance Impairment loss Book value Investment in subsidiaries: 1988985053.01 1988985053.01 Investment in associates: 74340161.06 74340161.06 Total 2063325214.07 2063325214.07 (Continued) Opening balance Item Book balance Impairment loss Book value Investment in subsidiaries: 1756435120.88 1756435120.88 Investment in associates: 101040690.02 101040690.02 Total 1857475810.90 1857475810.90 (2) Investment in subsidiaries 362Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Opening balance Changes in Current Period Provisi Invested enterprise NegatiImpairme on for Additional ve Book balance impair Other nt loss Investment Invest ment ment loss Zhongke Meiling Cryogenic 42652000.00 Technology Co. Ltd Mianyang Meiling Refrigeration 95000000.00 Co. Ltd.Zhongshan Changhong Electric 304856419.37 Co. Ltd Sichuan Changhong 955600437.79 Air-conditioner Co. Ltd Hefei Meiling Group Holdings 113630000.00 Limited Jiangxi Meiling Electric Appliance 79000000.00 Co. Ltd.Changhong Meiling Ridian 91082111.12 Technology Co. Ltd.Hefei Meiling Wulian Technology 10000000.00 Co. Ltd CH-Meiling.International 6889100.00 (Philippines) Inc.Hefei Changhong Meiling Life 35000000.00 Appliances Co. Ltd.Sichuan Hongmei Intelligent 22725052.60 Technology Co. Ltd Hefei Changhong Industrial Co. 232549932.1 Ltd. 3 232549932.1 Subtotal 1756435120.88 3 (continued) Ending balance Invested enterprise Book balance Impairment loss Zhongke Meiling Cryogenic Technology Co. Ltd 42652000.00 Mianyang Meiling Refrigeration Co. Ltd. 95000000.00 Zhongshan Changhong Electric Co. Ltd 304856419.37 Sichuan Changhong Air-conditioner Co. Ltd 955600437.79 Hefei Meiling Group Holdings Limited 113630000.00 363Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Jiangxi Meiling Electric Appliance Co. Ltd. 79000000.00 Changhong Meiling Ridian Technology Co. Ltd. 91082111.12 Hefei Meiling Wulian Technology Co. Ltd 10000000.00 CH-Meiling.International (Philippines) Inc. 6889100.00 Hefei Changhong Meiling Life Appliances Co. Ltd. 35000000.00 Sichuan Hongmei Intelligent Technology Co. Ltd 22725052.60 Hefei Changhong Industrial Co. Ltd. 232549932.13 Subtotal 1988985053.01 (3) Investment in associates Opening balance Changes in Current Period Investment Other gains and Invested enterprise Additional Negative comprehenImpairme losses Book value Investmen Investmen sive nt loss recognized t t earnings under the adjustment equity metho Hefei Xingmei Assets Management 14139256.78 25235.21 Co. Ltd.Sichuan Zhiyijia Network Technology 68854162.70 8268998.98 Co. Ltd.Sichuan Hongyun Venture Capital 1800000 18047270.54104729.46 Partnership (Limited 0.00 partnership) 1800000 Total 101040690.02 8398963.65 0.00（continued） Changes in Current Period Ending balance Invested enterprise Provision Other equity Cash dividend or profit for Impairmen Other Book value change announced to issued impairment t loss loss Hefei Xingmei Assets 14164491.99 Management Co. Ltd.Sichuan Zhiyijia 16947492.6160175669.07 Network Technology 364Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Changes in Current Period Ending balance Invested enterprise Provision Other equity Cash dividend or profit for Impairmen Other Book value change announced to issued impairment t loss loss Co. Ltd.Sichuan Hongyun Venture Capital 152000.00 Partnership (Limited partnership) Total 17099492.61 74340161.06 (II)profit statement item notes of parent company 1. Operation income operation cost (1) Detail Current Period Last Period Item Income Cost Income Cost Main business 9743416487.41 8916334488.72 9149147263.72 8312866759.79 Other business 589138389.17 534700358.27 459251266.85 402474977.16 Total 10332554876.58 9451034846.99 9608398530.57 8715341736.95 (2)Income information Current Period Last Period Item Operation income Operation cost Operation income Operation cost Product Including：air 3447265.493447282.049284414.169279679.94 conditioner Refrigerator 7786693499.057182764867.617620019850.616971955522.77 freezer Washing machine 1722549267.91 1529070147.07 1298981507.21 1129740688.09 Small household appliances and 230726454.96201052192.00220861491.74201890868.99 kitchen and bathroom Other 589138389.17 534700358.27 459251266.85 402474977.16 Area 365Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)Current Period Last Period Item Operation income Operation cost Operation income Operation cost Including： 5675953763.655366965328.845565648590.035302764073.54 Domestic Overseas 4656601112.93 4084069518.15 4042749940.54 3412577663.41 Subtotal 10332554876.58 9451034846.99 9608398530.57 8715341736.95 2. Investment income Item Current Year Last Year Long-term equity investment income by equity method 8398963.65 18713956.61 Long-term equity investment income by Cost method 32784230.13 168821072.56 Investment income obtained from the disposal of trading 18233784.22-18582366.11 financial assets Investment income obtained from disposal of derivative -8333541.14 financial assets Interest income from debt investment during the holding 20153596.8514558956.62 period Investment income of other non-current financial assets 14911850.5512932690.90 during holding period The termination of income recognition for financial assets -9688921.63-6157758.00 measured by amortized cost Total 76459962.63 190286552.58 XVII. Other supplementary information (1) Non-recurring gains and losses (1) Detail Item Current Year Note Non-current asset disposal gain/loss(including the write-off part for -4568990.35 which assets impairment provision is made) Government subsidies recognized in current gain and loss(excluding those closely related to the Company’s business and 95130581.90 granted under the state’s policies) Net profit and loss of subsidiaries arising from mergers of enterprises under the same control from the beginning of the period 1918902.01 to the merger date 366Annotations of Financial Statements of Changhong Meiling Co. Ltd. January 1 2024 to December 31 2024 （Unless other wise specified RMB for record in the statement)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 -109763982.52 assetstrading financial 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 28600649.28 separate impairment test Other non-operating income and expenses other than the above 3048181.61 Subtotal 14365341.93 Less：Impact number of enterprise income tax -4813416.23 Less: minority shareholders’ equity (post-tax) 10356345.97 Net non-recurring gains and losses attributable to the owner of the 8822412.19 parent company 2. Return on equity and earnings per share Weighted average return Earnings per share/EPS (RMB/Share) Profit during the report period on equity Basic EPS Diluted EPS Net profit attributable to ordinary 11.18%0.67900.6790 shareholders of the parent company Net profit attributable to ordinary shareholders of the parent company 11.49%0.67040.6704 after deduction of the non-recurring gains/losses Changhong Meiling Co. Ltd.Chairman: Wu Dinggang April 3 2025 367