CHANGHONG MEILING CO. LTD.
THE THIRD QUARTERLY REPORT FOR 2020
October 2020
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section I. Important Notes
Board of Directors and the Supervisory Committee of Changhong Meiling Co. Ltd. (hereinafter referred to as the
Company) and its directors supervisors and senior executives 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.Principal of the Company Mr. Wu Dinggang Person in Charge of Accounting Works Mr. Pang Haitao and Person
in Charge of Accounting Organ (Accounting Officer) Mr. Yang Jun hereby confirm that the Financial Report of
the Third Quarterly Report is authentic accurate and complete.Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Third quarterly report of 2020 has not been audited.
All directors of the Company are attended the Meeting for quarterly report deliberation.
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section II. Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
End of this period End of last period
Changes of this period-end over
same period-end of last year
Total assets (RMB) 15452014816.87 14202233615.47 8.80%
Net assets attributable to
shareholders of listed company
(RMB)
4825837316.31 5004947673.36 -3.58%
Current period
Increase/decrease in
comparison with same
period of last year
Year-begin to end
of the Period
Increase/decrease in
comparison with year-begin to
Period-end of last year
Operating revenue (RMB) 4560882229.12 16.71% 11356742966.11 -12.92%
Net profit attributable to
shareholders of the listed company
(RMB)
86575054.56 227.71% -123555526.37 -253.01%
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains
and losses (RMB)
16310383.26 82.12% -240824280.10 -1893.02%
Net cash flow arising from
operating activities (RMB)
109494010.35 163.56% -278610948.06 -238.46%
Basic earnings per share
(RMB/Share)
0.0829 227.67% -0.1183 -253.04%
Diluted earnings per share
(RMB/Share)
0.0829 227.67% -0.1183 -253.04%
Weighted average ROE 1.81% 1.28 percentage points up -2.51% 4.11 percentage points down
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Item
Amount from year-begin
to end of the Period
Note
Gains/losses from the disposal of non-current asset (including the
write-off that accrued for impairment of assets)
-542955.36
Found more in “Income from assetsdisposal”
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
national standards which are closely relevant to enterprise’s
business)
69462400.24 Found more in “Other income”
Except for the effective hedging business relevant with normal
operations of the Company gains/losses from change of the fair
value for holding the trading financial assets derivative financial
assets trading financial liabilities and derivative financial
liability as well as the investment income from disposing the
trading financial assets derivative financial assets trading
financial liabilities derivative financial liability and other
creditors’ investment
62504367.95
Found more in “investment income”
“Changes in fair value”
Switch-back of the receivables for separate impairment tests and
provision for impairment of contract assets
1809494.78
Found more in “Accountsreceivable”
Other non-operation income and expenditure except for the
aforementioned items
3865646.51
Found more in “Non-operationincome” “Non-operationexpenditure”
Less: impact on income tax 19492847.45 --
Impact on minority shareholders’ equity (post-tax) 337352.94 --
Total 117268753.73 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss explain reasons
□Applicable √Not applicable
The Company has no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss in
the period
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Number of common shareholders and preference shareholders with voting rights recovered and top ten
common shareholders
In shares
Total number of common
shareholders at the end of report
period
60751
Total preference shareholders
with voting rights recovered at
end of reporting period (if
applicable)
0
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Top ten shareholders
Shareholder’s name Nature of shareholder
Proportion
of shares
held
Amount of
shares held
Amount of
restricted
shares
held
Number of share
pledged/frozen
State of
share
Amo
unt
Sichuan Changhong Electric Co. Ltd.State-owned legal
person
23.79% 248457724 0 -- --
Hefei Industrial Investment Holding (Group)
Co. Ltd.
State-owned legal
person
4.58% 47823401 0 -- --
CHANGHONG (HK) TRADING LIMITED Foreign legal person 2.59% 27077797 0 -- --
Ma Guobin Domestic natural person 1.82% 19030000 0 -- --
CAO SHENGCHUN Foreign natural person 1.41% 14766086 0 -- --
Caitong Fund- Ningbo Bank-Haitong Xingtai
(Anhui) Emerging Industry Investment Fund
(Limited Partnership)
Domestic
non-state-owned legal
person
1.03% 10733452 0 -- --
Shanghai Fangda Investment Management Co.Ltd.
Domestic
non-state-owned legal
person
0.91% 9510800 0 -- --
Phillip Securities (Hong Kong) Limited Foreign legal person 0.60% 6296913 0 -- --
China Securities Finance Corporation Limited
Domestic
non-state-owned legal
person
0.42% 4362500 0 -- --
Long Qinfang Foreign natural person 0.34% 3558116 0 -- --
Particular about top ten shareholders with un-restrict shares held
Shareholders’ name
Amount of unrestricted
shares held
Type of shares
Type Amount
Sichuan Changhong Electric Co. Ltd. 248457724 RMB ordinary shares 248457724
Hefei Industrial Investment Holding (Group) Co. Ltd. 47823401 RMB ordinary shares 47823401
CHANGHONG (HK) TRADING LIMITED 27077797
Domestically listed foreign
shares
27077797
Ma Guobin 19030000 RMB ordinary shares 19030000
CAO SHENGCHUN 14766086
Domestically listed foreign
shares
14766086
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui)
Emerging Industry Investment Fund (Limited Partnership)
10733452 RMB ordinary shares 10733452
Shanghai Fangda Investment Management Co. Ltd. 9510800 RMB ordinary shares 9510800
Phillip Securities (Hong Kong) Limited 6296913 Domestically listed foreign 6296913
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
shares
China Securities Finance Corporation Limited 4362500 RMB ordinary shares 4362500
Long Qinfang 3558116
Domestically listed foreign
shares
3558116
Explanation on associated
relationship or consistent
actors among the aforesaid
shareholders
Among the above shareholders CHANGHONG (HK) TRADING LIMITED (hereinafter referred to
as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co. Ltd.;
except the shares of the Company directly held by Hong Kong Changhong 6296913 shares of
B-stock are also held through Phillip Securities (Hong Kong) Limited the foregoing shareholders
constitute persons of uniform action. There existed no associated relationship or belong to the
concerted actors as specified in the Measures for the Administration of Information Disclosure of
Shareholder Equity Changes of Listed Companies among Sichuan Changhong Hong Kong
Changhong and other top 7 shareholders (Excluding Phillip Securities (Hong Kong) Limited);
“Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry Investment Fund (LimitedPartnership) ” refers to the products of Caitong Fund Management Company subscribe for privately
placement of 2016; The company neither knows whether there is any association among other
shareholders nor knows whether other shareholders belong to the persons acting in concert that isstipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding ofListed Companies”.
Explanation on top ten
common shareholders
involving margin business
(if applicable)
As of 30th September 2020 among the top 10 common shareholders Ma Guobin holds 18330000
shares of the Company through customer credit trading secured account of Founder Securities Co.Ltd. and 700000 shares hold through common securities account thus 19030000 shares of the
Company are held in total. The shareholder-Shanghai Fangda Investment Management Co. Ltd.
customer credit transaction guaranteed securities account of Guoyuan Securities Co. Ltd holds
9510800 shares of the Company.
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 Changhong (Hong Kong) Trading Co. Ltd. 6296913 shares are held through Philip Securities
(H.K.) Co. Ltd.Note 2: In the above table "Particulars about shares held above 5% by common shareholders or top 10 common
shares holding" is subject to the data on stock transfer books provided by China Securities Depository and
Clearing Corporation Limited Shenzhen Branch
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons
√ Applicable □Not applicable
(i) Changes of items of balance sheet and cause analysis
In RMB
Item Closing balance Opening balance Changes Reasons
Tradable financial
assets
28451689.69 7730268.92 268.06%
This was mainly due to changes in the fair value of
forward foreign exchange contracts carried out by the
company during the current period.
Account receivable 2474469751.84 1387961981.66 78.28%
This was mainly due to the increase in accounts receivable
from the parent company and its subsidiaries Meiling
Group Changhong Air Conditioning and Zhongshan
Changhong in the current period.
Account paid in
advance
102147656.59 25270406.37 304.22%
This was mainly due to the increase in the company's
prepayments for purchasing raw materials during the
current period.Other current assets
247545304.92 63604031.96 289.20%
This was mainly due to the increase in the company's
financial products during the current period.Other non-current
financial assets
542540000.00 45000000.00 1105.64%
This was mainly due to the company's investment in
Sichuan Changhong Group Finance Co. Ltd. in the current
period.Investment real estate 54357952.53 96343760.13 -43.58%
This was mainly due to the transfer of the company's
investment real estate into fixed assets in the current
period.
Construction in
progress
110309222.32 252494792.31 -56.31%
This was mainly due to the transfer of the company's
construction in progress into fixed assets in the current
period.Tradable financial
liability
3846486.01 1081534.93 255.65%
This was mainly due to changes in the fair value of
forward foreign exchange contracts carried out by the
company during the current period.Taxes Payable 106761494.22 68558391.66 55.72%
This was mainly due to the increase in the value-added tax
payable by Changhong Air Conditioning a subsidiary of
the company in the current period.Non-current liability 405676176.26 1708193.90 23648.84% This was mainly due to the reclassification of the parent
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
due within one year company’s long-term loans due within one year.Long-term loans 192640000.00 401280000.00 -51.99%
This was same as "non-current liabilities due within one
year".Long-term payables 1878823.17 3016921.44 -37.72%
This was mainly due to the payment of the company's
financial lease payments in the current period.
Deferred income tax
liability
8611131.03 6256759.14 37.63%
This was mainly due to the recognition of deferred income
tax liabilities for changes in the fair value of the company's
forward foreign exchange contracts during the current
period.(ii) Changes of items of profit statement and cause analysis
In RMB
Item Current Period
Same period of last
year
Changes Reasons
R&D expenses 264619301.52 194093406.99 36.34%
This was mainly due to the year-on-year increase in
amortization of R&D assets and R&D trial production
during the current period.
Financial expenses -1509899.93 -9844161.99 84.66%
This was mainly due to the year-on-year decrease in interest
income from the subsidiary Changhong Air Conditioning in
the current period.
Assets impairment
loss -34714276.42 -24702231.08 -40.53%
This was mainly due to the year-on-year increase in
impairment losses of the company's inventory assets during
the current period.
Credit impairment
loss
-33008077.62 1082468.11 -3149.33%
This was mainly due to the year-on-year increase in
impairment losses of the company's notes receivable and
accounts receivable during the current period.Income from fair
value changes
17956801.15 43185470.53 -58.42%
This was mainly due to changes in the fair value of forward
foreign exchange contracts carried out by the company
during the current period.Investment income 47154706.68 -38327115.65 223.03%
This was mainly due to the decrease in the foreign exchange
losses of Zhongshan Changhong a subsidiary of the
company and the parent company's receipt of profit
distribution from the shareholding companies during the
current period.Income from assets
disposal
-542955.36 -4436536.97 87.76%
This was mainly due to the year-on-year decrease in the
company's disposal of some asset losses in the current
period.Non-operation
expenditure
1206761.93 3776106.23 -68.04%
This was mainly due to the removal expenses of the
subsidiary Changhong Air Conditioning in the same period
last year and there was no such matter in the current period.
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Income tax expenses 1746437.69 36397055.33 -95.20%
This was mainly due to the decrease in the company's
taxable income during the current period.Gains/losses of
minority
shareholders
-2151849.18 -11984976.39 82.05%
This was mainly due to the year-on-year decrease in losses
of some non-wholly-owned subsidiaries of the company
during the current period.(iii) Changes of items of cash flow statement and cause analysis
In RMB
Item Current Period
Same period of
last year
Changes Reasons
Refunds of taxes 412733445.22 280384080.90 47.20%
This was mainly due to the year-on-year increase in
export tax rebates received by the company during the
current period.Taxes paid 237937839.39 448423347.16 -46.94%
This was mainly due to the year-on-year decrease in
the company's VAT payment in the current period.
Cash received from investment
recovery
737460000.00 2174000000.00 -66.08%
This was mainly due to the year-on-year decrease in
the company's withdrawal of entrusted wealth
management after its expiration.Net cash received from disposal of
fixed assets intangible assets and
other long-term assets
381041.58 19483459.24 -98.04%
This was mainly due to the decrease in the disposal of
fixed assets and intangible assets by the company
during the current period resulting in the year-on-year
decrease in cash received .Other cash paid concerning
investment activities
- 76709995.61 -100.00%
This was mainly due to the delivery loss of the
company's forward foreign exchange contracts in the
previous period but none in the current period.
Cash received by borrowing 1703478583.33 1308256908.10 30.21%
This was mainly due to the year-on-year increase in
loans obtained by the company during the current
period.Other cash paid concerning
financing activities
2432566.62 32764857.16 -92.58%
This was mainly because the use of the company's
financing margin was restricted in the previous period
but none in the current period.Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-18563610.41 12976331.25 -243.06%
This was mainly due to changes in foreign currency
exchange rates during the current period.II. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable
(i) Implementation for annual performance incentive fund
On August 9 2012 and August 28 2012 the Company considers the adoption of "Hefei Meiling annual
performance incentive fund implementation plan" (hereinafter referred to as "" stimulus "") on the 16th meeting of
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CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
the 7th board of directors and the 2012-second provisional shareholders meeting. Details were disclosed on
information disclosure media appointed by the Company as "Securities Times" "Chinese Securities Daily"
"Hong Kong Commercial Daily" and the Juchao network (www.cninfo.com.cn) on August 10 2012 and August
29 in the form of announcement (No.: 2012-028 No.:2012-035).
1. Implementation about 2012 2013 2014 and 2016 performance incentive fund provision and distribution
plan
See details in "Implementation of the company's annual incentive fund" in "XV Implementation of the company's
stock incentive plan employee stock ownership plan or other employee incentive measures" in "Section V
Important Events" of the company's "2019 Annual Report" disclosed on 28 March 2020.
All the stocks purchased by the incentive object are locked according to their promises. Up to the end of this
reporting period the company's stock purchased by 2012 annual performance incentive objects (non-directors
supervisors and senior management) 2013 annual performance incentive objects (non-directors supervisors and
senior management) the 2014 annual performance incentive objects (non-directors supervisors and senior
management) with their granted 2012 annual performance incentive funds and own funds and 2013 & 2014
annual performance incentive funds and own funds have been fully released for trading; the stock purchased by
2016 annual performance incentive objects (non-directors supervisors and senior management) with their granted
2016 annual performance incentive funds and own funds are expired for two years or three years some of the
stock shall be released for trading details of the share reduction for the above mentioned objects see below. In the
Period the Company’s shares purchased by the current directors supervisors and senior executives among the
performance incentive targets due to the implementation of the 2012 2013 2014 and 2016 annual performance
incentive plans have not reduced the shareholdings.
2. Shareholding and reducing of performance incentive objects of the Company
Ended as 30 September 2020 shares hold by all incentive objects amounting to 10542267 shares a 1.0092 % in
total share capital of the Company including 8852374 A-share a 0.8474% in total share capital and 1689893
B-share a 0.1618% in total share capital of the Company. Other grantees of the 2012 2013 2014 and 2016
incentive plan have reduced holding of 5971548 in aggregate accounting for about 0.5717% of the total share
capital and 657950 shares are reduced in the reporting period.(ii) Transaction with Sichuan Changhong Group Finance Co. Ltd
According to The Proposal on Continuing Related Transactions with Sichuan Changhong Group Finance Co. Ltd.
in 2020 approved by the deliberation of the 31st meeting of the ninth board of directors and the 16th meeting of the
ninth board of supervisors and the fourth extraordinary general meeting of shareholders in 2019 held on
November 29 and December 17 2019 and approved by resolution of the 41st meeting of the ninth board of
directors and the fourth extraordinary general meeting of shareholders held on August 14 and October 12 2020
approved and agreed the company to continue carry out the financial service cooperation with Sichuan
Changhong Group Finance Co. Ltd. (hereinafter referred to as “Changhong Finance Company”) and sign a
triennial Financial Service Agreement Changhong Finance Company shall provide a series of financial services
such as deposit and loan in its business scope according to the requirements of the Company and its subsidiaries.The related transactions between the company and its subsidiaries and Changhong Finance Company from the
10
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
beginning of the year to the end of the reporting period are as follows:
In RMB
Item Opening balance
Increased during the
period
Decreased during the
period
Ending balance
Interest
handling charge
paid or received
I. Savings in
Changhong Group
Finance Company
3702382630.38 30232646408.28 30929151163.32 3005877875.34 90205609.83
II. Borrowings
from Changhong
Group Finance
Company
1.Short-term loans - 125000000.00 125000000.00 - 60638.89
2.Long-term loans - - - - -
III. Other financial
business
1.Notes drawing 999585345.49 1878178189.69 1447378038.27 1430385496.91 941235.22
2.Notes discounted 638333179.10 1421196636.62 1174415376.15 885114439.57 9724660.64
(iii) Other significant events
Overview
Date for
disclosure
Information index for temporary
report disclosure
According to the operation needs and capital management the Company
will recover all the remaining investment in advance which are under the
No. 135 directional assets management plan issued by Soochow Securities
Co. Ltd. (hereinafter Soochow Securities) subscribed in the earlier period.
January 2 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2019-094)
After deliberated and approved by BOD BOS and extraordinary
shareholders’ general meeting it is agreed that the Company will provide a
credit guarantee to its wholly-owned and controlling subsidiaries with
3670 million yuan in total for year of 2020. The guarantee period for the
newly added guarantee lines and the renewed guaranteed lines in the
current year shall be one year.
December 26
2019 January 11
2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2019-088 No. 2019-089
No. 2019-090 and No. 2020-002)
After deliberated and approved by BOD BOS and extraordinary
shareholders’ general meeting it is agreed that the Company will complete
the “Intelligent R&D project” and balance of the fund raised of
125084220.44 yuan (including interest income of financing and deposit
47970805.20 yuan) and the interest settled in the future are used to
permanently supplement the working capital as of 30 November 2019. The
specific amount shall be the actual amount after deducting the reservation
contract balance payment and quality retention money from the special
December 26
2019 January 11
2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2019-088 No. 2019-089
No. 2019-091 and No. 2020-002)
11
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
account on the day the fund is transferred out. Meanwhile total of
114368326.60 yuan of the outstanding contract balance payment and
quality retention money shall continue to be kept in the fund raising
account and shall be paid as agreed in the contract.
After deliberated and approved by BOD BOS and shareholders’ general
meeting it is agreed that the Company and its subsidiaries shall use their
own idle funds (1.3 billion yuan at most and the line can be used in a
rolling way) to invest in the bank financial 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
shareholders’ general meeting.January 21 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-003 No. 2020-004 and
No. 2020-009)
After deliberated and approved by BOD BOS and shareholders’ general
meeting it is agreed that the Company can use up to 199 million yuan of
idle raised funds (the amount can be used on a rolling basis) to invest in a
capital-guaranteed financial products with high security good liquidity and
a single product period of no more than one year the authorization period
shall be valid within one year from the date of approval by the
shareholders’ general meeting.January 21 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-003 No. 2020-004
No. 2020-006 and No. 2020-009)
After deliberated and approved by BOD and shareholders’ general
meeting it is agreed that the Company and its subsidiary shall carry out
forward foreign exchange capital trading business from 1 July 2020 to 30
June 2021 with a business transaction balance not exceeding US$650
million (mainly including US dollars Australian dollars and Euros and all
other foreign exchange converted into US dollars) the longest period of a
single business delivery is not more than one year.March 28 2020
May 30 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-012 No. 2020-017 and
No. 2020-036)
After deliberated and approved by BOD and shareholders’ general
meeting it is agreed that the Company and its wholly-owned subsidiary
Sichuan Changhong Air Conditioning Co. Ltd. (hereinafter the
Changhong AC) will jointly increase the capital of 150 million yuan to the
subsidiary Zhongshan Changhong Electric Appliance Co. Ltd.( hereinafter
referred to as “Zhongshan Changhong”) with their own funds according to
the current shareholding ratio of which the capital increase of the
Company is 135 million yuan and the capital increase of Changhong AC is
15 million yuan.
March 28 2020
May 30 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-012 No. 2020-018 and
No. 2020-036)
After deliberated and approved by BOD BOS and shareholders’ general
meeting it is agreed that the Company will increase the credit guarantee
line of no more than 30 million yuan to the subsidiary company Zhongke
Meiling Cryogenic Technology Co. Ltd. (hereinafter referred to as
"Zhongke Meiling") with period of one year for day-to-day production and
operation.March 28 2020
May 30 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-012 No. 2020-013
No. 2020-019 and No. 2020-036)
After deliberated and approved by BOD and shareholders’ general
meeting it is agreed to continue appointing the Shine Wing Certified
March 28 2020
May 30 2020
Juchao Website:
http://www.cninfo.com.cn
12
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Public Accountants (LLP) as the auditing institution of the financial report
and internal control of the Company for 2020 for a period of one year.Meanwhile request the shareholders’ general meeting to authorize the
management of the Company to determine its annual audit charges
according to the industry standards and actual works of the audit.(No. 2020-012 No. 2020-015 and
No. 2020-036)
After deliberated and approved by BOD it is agreed that the company
would transfer the 0.18% equity of Ridian Technology held by Subsidiary
Changhong Meiling Ridian Technology Co. Ltd. (hereinafter referred to
as "Changmei Ridian") natural person shareholder Wu Changyuan with its
own funds (initial investment amount of 150000 yuan) and the equity
transfer price was based on Ridian Technology’s audited net assets of
155582873.62 yuan as of December 31 2019 the equity transfer price
was determined to be 280049.17 yuan. After the equity transfer the
company holds 99.036% of Ridian Technology's equity and natural person
shareholder Hu Zhiheng holds 0.964% of Ridian Technology's equity.
April 18 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-022)
After deliberated and approved by BOD it is agreed that the company
would transfer 100% equity of 7 subsidiaries held by the company’s
wholly-owned subsidiary Hefei Meiling Electric Appliances Marketing
Co. Ltd. including Chengdu Meiling Electric Appliances Marketing Co.
Ltd. Fuzhou Meiling Electric Appliances Marketing Co. Ltd. and etc.and total of seven subsidiaries to Hefei Meiling Group Holdings Limited
which is a wholly-owned subsidiary of the company
April 18 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-022)
After deliberated and approved by BOD and shareholders’ general
meeting it is agreed the company to use the total share capital of
1044597881 shares on December 31 2019 as the base and distribute a
cash dividend of 0.5 yuan (including tax) per every 10 shares to all
shareholders who distributed cash dividends of 52229894.05 yuan
(including tax) in total. The company has implemented and completed the
aforementioned profit distribution plan.March 28 2020
May 8 2020
May 30 2020
June 11 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-012 No. 2020-013
No. 2020-028 No. 2020-036 and
No. 2020-038)
After deliberated and approved by BOD the Company agreed to invest
approximately 20.21 million yuan on the expansion technology
improvement for production line of the export refrigerators with purpose
of improving the production capacity technical standards and product
competitiveness.June 30 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-041)
After deliberated and approved by BODit is agreed that wholly-owned
subsidiary Changhong Air-conditioner would apply to the Agricultural
Bank of China Co. Ltd. Mianyang Fucheng Sub-branch for bank
acceptance drafts not exceeding 100 million yuan with the pledge of time
deposit certificates the time limit was one year; and agreed that
Changhong Air-conditioner could apply to Bohai Bank Co. Ltd. Chengdu
Branch for bank acceptance drafts not exceeding 100 million yuan with the
pledge of time deposit certificates the time limit was one year; and agreed
June 30 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-041 and No. 2020-042)
13
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
that Changhong Air-conditioner could apply to Liangli Sub-branch of
Chengdu Rural Commercial Bank Co. Ltd. for bank acceptance drafts not
exceeding 100 million yuan with the pledge of time deposit certificates
and the time limit was one year.The company and its subsidiaries have received various government
subsidies totaling RMB 50907539.53 from January 1 2020 to June 30
2020.
July 2 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-043)
On July 23 2020 the company issued the Reminder Announcement on
Operating Conditions.July 23 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-046)
After deliberation and approval by the company’s board of directors board
of supervisors and general meeting of shareholders it was agreed that the
company would use its own funds to repurchase part of the company’s
domestically listed foreign shares (B shares) through a centralized bidding
transaction. Currently the share repurchase plan is in the process of being
implemented. For details please refer to the content of "(IV)
Implementation Progress of Share Repurchase" below.July 28 2020
August 19 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-047 No. 2020-048
No. 2020-049 and No. 2020-063)
After deliberated and approved by BOD BOS and shareholders’ general
meeting it is agreed that the company would use its own funds to
cooperate with the related party Changhong Huayi Compressor Co. Ltd.(hereinafter referred to as "Changhong Huayi") to respectively increase
capital of RMB 500 million to Sichuan Changhong Group Finance Co.Ltd. (hereinafter referred to as "Changhong Finance Company") for a total
capital increase of RMB one billion. After the capital increase the
company and Changhong Huayi respectively hold 14.96% of the equity of
Changhong Finance Company.
September 10
2019 September
27 2019 July
28 2020 August
8 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-060 No. 2020-061
No. 2020-063 No. 2020-067 No.
2020-51 and No. 2020-054)
After deliberation and approval by the company’s board of directors and
board of supervisors it was agreed that the company would implement the
new revenue standards and change related accounting policies in
accordance with the relevant regulations and requirements of the Ministry
of Finance.
August 15 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-056 No. 2020-057 and
No. 2020-059)
After deliberated and approved by BOD BOS and shareholders’ general
meeting it is agreed the company to continue sign a triennial Financial
Service Agreement with Changhong Finance Company it is agreed that
the maximum deposit balance (including accrued interest and handling
fees) and the highest principal and interest of outstanding loan the
Company in any finance company within the three-year validity period
from the effective date of the new agreement shall be adjusted to not
exceed RMB 4.5 billion per day. Changhong Finance Company shall
provide a series of financial services to the Company and its subsidiaries.
August 15 2020
October 13 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-056 No. 2020-057
No. 2020-061 and No. 2020-083)
After deliberation and approval by the company’s board of directors and
board of supervisors it was agreed that the company would expect the
August 15 2020
Juchao Website:
http://www.cninfo.com.cn
14
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
company and its holding subsidiaries to increase the daily related
transactions provided by Yuanxin Financial Leasing Co. Ltd. such as
financial leasing commercial factoring order financing etc. not
exceeding 45 million yuan in 2020 (excluding tax).(No. 2020-056 No. 2019-057 and
No. 2020-062)
On September 18 and October 12 2020 the 42nd meeting of the ninth
board of directors of the company the 23rd meeting of the ninth board of
supervisors and the fourth extraordinary general meeting of shareholders
in 2020 reviewed and approved the proposal for the election of the tenth
board of directors and the tenth board of supervisors of the company
including electing Mr. Wu Dinggang Mr. Kou Huameng Mr. Yong
Fengshan Mr. Zhong Ming Mr. Hu Zhaogui and Mr. Chen Ye as
non-independent directors of the company's tenth board of directors;
electing Mr. Hong Yuanjia Ms. Mou Wen and Mr. Zhao Gang as
independent directors of the company's tenth board of directors; electing
Mr. Shao Min Mr. He Xintan and Ms. Huang Hong as shareholders'
representative supervisors of the company's tenth board of supervisors and
they have composed the company's tenth board of supervisors together
with Ms. Ji Ge and Mr. Zhu Wenjie who were elected as employee
supervisors of tenth board of supervisors by the 4th meeting of the
company's eighth session of employee representative meeting. The term of
office of the aforementioned directors and supervisors is three years from
December 12 2020 to December 12 2023.
On October 12 2020 the first meeting of the company’s tenth board of
directors agreed to elect Mr. Wu Dinggang as the president of the
company’s tenth board of directors; the meeting also reviewed and
approved the Proposal on the Establishment of Special Committees Under
the Company’s Tenth Board of Directors and the Proposal on Appointment
of the Company’s Senior Managers.On the same day the first meeting of the tenth board of supervisors of the
company passed a resolution and agreed to elect Mr. Shao Min as the
chairman of the board of supervisors of the tenth board of supervisors.September 19
2020 October
13 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-069 No. 2020-070
No. 2020-071 No. 2020-083 No.
2020-084 and No. 2020-085)
After deliberation and approval by the company’s board of directors it was
agreed that the company would transfer 100% equity of Hefei Meiling
Electrical Appliance Marketing Co. Ltd. a wholly-owned subsidiary of
the company in Taiyuan Meiling Electrical Appliance Marketing Co. Ltd.Tianjin Meiling Electrical Appliance Marketing Co. Ltd. and Zhengzhou
Meiling Electrical Appliance Marketing Co. Ltd. to Hefei Meiling Group
Holdings Co. Ltd. a wholly-owned subsidiary of the company.September 19
2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-069)
After deliberation and approval by the company’s board of directors it was
agreed that the company’s wholly-owned subsidiary Meiling Group would
merge its wholly-owned subsidiaries Chengdu Meiling Electrical
Appliance Marketing Co. Ltd. Fuzhou Meiling Electrical Appliance
Marketing Co. Ltd. Hangzhou Meiling Electrical Appliance Marketing
September 19
2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-069)
15
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Co. Ltd. and other 7 subsidiaries.
On September 29 2020 the company received a total of 27824000 yuan
of capital allocation from Sichuan Hongyun New Generation Information
Technology Venture Capital Fund Partnership (Limited Partnership)
(hereinafter referred to as "Hongyun Fund") a shareholding company of
the company.October 10 2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-082)
After deliberated and approved by BOD and shareholders’ general
meeting it is agreed that the company should apply to China Construction
Bank Co. Ltd. Hefei Luyang Sub-branch for a special credit line of up to
700 million yuan in bill pools; agreed that the company could apply to
Ping An Bank Co. Ltd. Hefei Branch for a special credit line of up to 300
million yuan in bill pools; agreed that the company could apply to Hefei
Economic Development Zone Branch of Huishang Bank Co. Ltd. for a
special credit line of up to 300 million yuan in bill pools; agreed that the
company could apply to the Hefei Branch of China Merchants Bank Co.Ltd. for a special credit line of up to 300 million yuan in the bill pools;
agreed that the company could apply to the Hefei Branch of Hua Xia Bank
Co. Ltd. for a special credit line of up to 500 million yuan in the bill
pools; agreed that the company could apply to the Hefei Branch of Bank of
Hangzhou Co. Ltd.for a special credit line of up to 600 million yuan in the
bill pools; agreed that the company could apply to the Hefei Branch of
Zheshang Bank Co. Ltd. for a special credit line of up to 500 million yuan
in the bill pools; agreed that the company could apply to Anhui Branch of
Bank of Communications Co. Ltd. for a special credit line of up to 1000
million yuan in the bill pools;
March 28 2020
April 18 2020
May 8 2020
May 30 2020
September 19
2020
Juchao Website:
http://www.cninfo.com.cn
(No. 2020-012 No. 2020-020
No. 2020-022 No. 2020-025 No.
2020-029 No. 2020-030 No.
2020-036 No. 2020-036 No.
2020-069 No. 2020-078 and No.
2020-083)
(iv) Implementation progress of shares buy-back
√ Applicable □ Not applicable
The company’s 40th meeting of the ninth board of directors the 21st meeting of the ninth board of supervisors and
the 3rd extraordinary general meeting of shareholders in 2020 held on July 27 2020 and August 18 2020
deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (B Shares)
of the Company and agreed that the company would use its own funds to repurchase the company’s B shares in a
centralized bidding transaction within 12 months from the date of review and approval of the plan for the
repurchase of part of domestically listed foreign shares (B shares). The price of the repurchased B shares shall not
exceed HK$2.21 per share (inclusive) and shall not exceed 150% of the average transaction price of the
company’s B shares on the 30 trading days before the resolution of the repurchase of shares by the board of
directors. The total amount of funds for the repurchase of B shares shall be no less than 50 million yuan (inclusive)
and no more than 100 million yuan (inclusive) based on the central parity rate of HKD to RMB on July 24 2020
i.e. 1 HKD = 0.9023 RMB the equivalent Hong Kong dollar shall be no less than 55413942.15 Hong Kong
dollars (inclusive) and no more than 110827884.30 Hong Kong dollars (inclusive) (the actual amount of Hong
Kong dollars used shall be converted based on the exchange rate on the day when the company purchases foreign
exchange including foreign exchange purchase transaction fees and other related fees).
As of the disclosure date of this report the company has opened a special securities account for repurchase at
China Securities Depository and Clearing Co. Ltd. Shenzhen Branch. At present the company is promoting the
16
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
purchase and payment of foreign exchange work involved in this share repurchase. As of September 30 2020 the
company's special securities account for repurchase has not yet purchased the company's B shares.
Found more on announcement (Notice No.:2020-047 2020-048 2020-048 2020-049 2020-052 2020-055
2020-063 2020-064 2020-065 2020-066 and 2020-081) released on appointed media China Securities Journal
Securities Times Hong Kong Commercial Daily and Juchao Website dated July 28 July 31 August 14 August 19
September 4 October 10 2020 respectively.(v) Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
III. Commitments completed in Period and those without completed till end of the Period
from actual controller shareholders related parties purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from
actual controller shareholders related parties purchaser and companies.IV. Financial asset investment
1. Securities Investment
□ Applicable √ Not applicable
No security investment in Period.
2. Derivative investment
√ Applicable □Not applicable
17
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
In 10 thousand Yuan
Operator
Relate
d
relatio
nship
Whether
related
trade or
not
Type
Initial
investment
Start date End date
Investment
amount at
period-begi
n
Amount
purchased in
the reporting
period
Amount
sales in the
reporting
period
Amount of
reserve for
devaluatio
n of
withdrawi
ng (if
applicable
)
Investment
amount at
period-end
Ratio of
investment
amount at
period-end in
net assets of the
Company at
period-end
Actual
gains/losses in
period
Financial
institution
N/A No
Forward foreign
exchange
contract
118035.04 June 28 2019 August 25 2021 73225.52 219119.46 137797.85 - 153271.02 31.76% 1276.11
Total 118035.04 -- -- 73225.52 219119.46 137797.85 - 153271.02 31.76% 1276.11
Capital resource Self-owned capital
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the Board for
investment of derivatives (if applicable)
March 26 2020
Disclosure date for approval from board of
shareholders for investment of derivatives (if
applicable)
May 29 2020
18
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Risk analysis and controlling measures for
derivatives holdings in the Period (including
but not limited to market risk liquidity risk
credit risks operation risk and law risks etc.)
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations forward foreign exchange transactions are under
certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices
exchange rate fluctuations. The Company will follow up the exchange fluctuation on the basis of target rate determined from the business relying on the
research of the foreign currency exchange rates combined with prediction of consignments and burdening ability to price variations due to exchange rate
fluctuations then determine the plan of forward foreign exchange contracts and make dynamic management to the business to ensure reasonable profit level.
2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business to meet the requirements of the
trade authenticity. In addition forward foreign exchange transactions are processed with bank credit will not affect liquidity of company funds.
3. Bank default risk: if cooperative banks collapse within the contract time the Company will not be able to transact the original foreign exchange contracts with
contract price which leads the risk of income uncertainty. So the Company chose five state-owned banks the Chinese-funded banks in shareholding enterprise as
Everbright Bank Industrial Bank and the foreign-funded banks as UOB OCBC BEA etc. to conduct the trading of foreign exchange capital. These banks share
a solid strength and management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has
formulated related management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review and choose good bank to carry out this kind of business as to risk control.Invested derivative products have changes in
market price or fair value in the Period as for
analysis of the fair value of derivatives
disclosed specific applied methods and
correlation assumption and parameter setting
The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business
Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other
pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices
given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. During the reporting
period forward foreign exchange contracts and losses of the Company is 12761100 yuan
Specific principle of the accounting policy and
calculation for derivatives in the Period
compared with last period in aspect of major
changes
Not applicable
19
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Special opinion on derivative investment and
risk control by independent directors
Upon inspection the independent directors of the Company believes that: during the reporting period the Company carried out its foreign exchange forward
deals in strict compliance with the Standardized Operation Guidelines for Listed Company issued by Shenzhen Stock Exchange the Changhong Meiling Articles
of Association Authorization Management of the Company Management System in relating to Foreign Exchange Forward Deals of Hefei Meiling Co. Ltd. and
these deals were conducted within the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on
the purpose of getting profit only all of the forward foreign exchange transactions are operates based on normal operating and production which is relying on
specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are
beneficial to prevent the exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative
operation no break of relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the
Company and entire shareholders especially minority shareholders were not prejudiced.
20
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
V. Progress of investment projects with raised funds
√ Applicable □Not applicable
Particular about process of the fund raised and investment of fund raised in the report period
The Company implemented a private placement of A-share in year of 2016 totally 1569999998.84 Yuan raised
net money raised amounting to 1540732722.76 Yuan after deducted vary issuance costs (tax included)
29267276.08 Yuan.
The resolutions of the 35th session of the 9th Board of Directors of the Company the 18th session of the 9th Board
of Supervisors of the Company and the 2nd Extraordinary General Meeting of 2020 passed and the independent
directors consented and the sponsor institution made unanimous verification opinions to agree the company to use
the idle raised funds of not exceeding RMB 199 million to invest in the principal-protected financial products with
high security good liquidity and allotted time of single item not more than one year the authorization period is
valid for one year from the date of approval by the company’s general meeting of shareholders. Up to now the
company is normatively using the raised funds to purchase bank financial product in accordance with the
decision-making and relevant regulations and requirements.
As of 30 September 2020 the fund raising project of non-public stock issuance of 2016 has 1034380219.64
yuan actually used in total at the same time the amount permanent supplementary working capital of the
Company cumulatively as 432609413.91 yuan. Of which during the reporting period the fund raising used by
the Company amounted to 53264108.15 yuan (including bank handling fee and cost of labor 835 yuan) the
amount permanently supplements the working capital was 126766362.64 yuan. In addition the specific account
for fund raising gains a deposit interest of 616040.46 yuan the income from bank financial products on due with
idle fund raising was 2703835.86 yuan. As of 30 September 2020 balance of the storage specific account for
fund raising was 196491846.32 yuan (including interest income 3669061.19 yuan income from bank financial
products on due 38434756.24 yuan and the bank financial products of 1500000000000 yuan purchased by idle
fund raising). More details are:
In RMB
Serial Name
Total project
investment
Proposed
investment amount
of raised funds
Accumulated
investment amount (as
of 30 September 2020)
Permanent
replenishment the
working capital
Balance of raised
funds (including
financing income
and deposit
interest income)
Construction of
intelligent
manufacturing project
398706500 391000000 308135715.87 - 124157743.44
1.1
Including: Intelligent
Manufacturing (Hefei)
project
278706500 271000000 253833241.83 - 54939356.32
21
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
1.2
Production line for the
annual capacity of 2
million washing
machines (Phase II)
120000000 120000000 54302474.04 - 69218387.12
Construction of
intelligent R&D
capability and new
products development
of the intelligent
appliance technology
559000000 559000000 537129202.64 126766362.64 72334102.88
3 Intelligent life project 320760000 320000000 350844651.27 305843051.27 0
4
Supplementary the
floating capital
300000000 270732700 270880063.77 - 0
Total 1578466500 1540732700 1466989633.55 432609413.91 196491846.32
Note 1: According to the plan for the use of raised funds approved by the shareholders' general meeting the
company has withdrawn the remaining funds raised and interest income from this “Intelligent life project” account
a total of 305843051.27 yuan to permanently supplement the company’s working capital on 26 July 2019 19
August and 11 October respectively. After the withdrawal the remaining funds of the special account for the
raised funds were 0 yuan and the account was cancelled. At the same time the company implemented the
liquidation and cancellation of Changmei Technology Co. Ltd. the main body of the project.Note 2: According to the plan for the use of raised funds approved by the shareholders' general meeting on
January 15 2020 the company withdrew the remaining raised funds wealth management and interest income
totaling 126766362.64 yuan after deducting the balance of the contract to be paid and the guarantee deposit from
the “intelligent research and development project” account for permanent supplements of the company’s working
capital. After the withdrawal the remaining funds of the special account of the raised funds would continue to be
used to pay the contract balance and guarantee deposit.VI. Prediction of 2020 business performance
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation on reason
□ Applicable √ Not applicable
VII. Major contracts for daily operations
□ Applicable √ Not applicable
22
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
VIII. Trust financing
√Applicable □ Not applicable
In 10 thousand Yuan
Type Capital resources Amount for entrust Undue balance Overdue amount
Bank financing products Own funds 48500 5000 0
Bank financing products Idle raised funds 45000 15000 0
Total 93500 20000 0
Details of the single major amount or high-risk trust investment with low security poor fluidity and
non-guaranteed:
√Applicable □ Not applicable
23
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
In 10 thousand Yuan
Trustee
institutio
n (or
name of
trustee)
Truste
e type
Product
type
Amount
Sourc
e of
funds
Start
date
Expiry
date
Capital investment purpose
Criteria
for fixing
reward
Referen
ce
annual
rate of
return
Anticip
ated
income
(if
applica
ble)
Actual
gains/lo
sses in
period
Actual
collecte
d
gains/lo
sses in
period
Am
ount
of
reser
ve
for
deva
luati
on
of
with
dra
win
g (if
appl
icabl
e)
Whe
ther
appr
oved
by
legal
proc
edur
e
(Y/N
)
Whether
has entrust
finance
plan in the
future
Summary of the
items and
related query
index (if
applicable)
Chengdu
Branch
of Bohai
Bank
Co. Ltd
Bank
Principal
-guarante
ed with
floating
income
10000.00
Idle
raised
funds
Febr
uary
21
202
0
May
25
2020
The structured deposit product
the structural derivatives tied
with the 3-month interbank
lending rate in London (Libor)
Annualize
d returns:
3.80%
3.80% 99.22 97.86 97.86 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-010)
Mianyan
g
Economi
c
Develop
ment
Bank
Guarante
ed
capital
and
minimu
m return
5000.00
Idle
raised
funds
Mar
ch
10
202
0
June
10
2020
This product is a structured
deposit product. The spot
exchange rate of US dollar to
Swiss franc is taken from the
quotes U.S. dollar drawn by
EBS (Interbank Electronic
Trading System) between 5 a.m.Sydney time every Monday and
Annualize
d returns:
3.60%
3.60% 46.00 45.37 45.37 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-011)
24
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Zone
branch of
Bank of
China
Limited
5 p.m. New York time every
Friday against Swiss francs.
Hefei
Branch
of China
Guangfa
Bank
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
own
funds
Apri
l 20
202
0
July
20
2020
Investment of the central bank
bill in bank market treasury
bond corporate bonds
short-term financing
medium-term bills inter-bank
borrowing inter-bank deposits
bills or bill repurchase etc. and
interest rate-linked option
products
Annualize
d returns:
3.85%
3.85% 48.66 48.12 48.12 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-026)
Hefei
Branch
of Bank
of East
Asia
(China)
Co. Ltd.
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
own
funds
Apri
l 21
202
0
July
21
2020
Deposits embedded in financial
derivatives absorbed by the
Bank are linked to exchange rate
fluctuations so that depositors
can obtain corresponding returns
on the basis of certain risks.
Annualize
d returns:
3.80%
3.80% 48.03 48.03 48.03 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-026)
Mianyan
g
Economi
c
Develop
ment
Zone
branch of
Bank of
Bank
Guarante
ed
capital
and
minimu
m return
10000.00
Idle
own
funds
Apri
l 23
202
0
July
24
2020
Funds raised by this product are
operated uniformly by the Bank
of China and business
management is carried out in
accordance with the principle of
separating basic deposits from
derivative transactions. The
principal part raised is included
in the unified operation and
Annualize
d returns:
3.75%
3.75% 95.83 94.52 94.52 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-027)
25
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
China
Limited
management of the internal
funds of the Bank of China and
included in the payment scope of
deposit reserves and deposit
insurance premiums. Products
embedded derivatives are partly
invested in derivatives markets
such as exchange rates interest
rates commodities and indices
and the final product
performance is linked to
derivatives. During the
investment period Bank of
China uses the income method
to value the embedded option
price of this structured deposit.Hefei
Branch
of China
Everbrig
ht Bank
Co. Ltd.
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
own
funds
May
21
202
0
Augus
t 21
2020
This product is a RMB
structured deposit product with
embedded financial derivative
instruments. The bank will
invest the raised structured
deposit funds in bank time
deposits and at the same time
invest in financial derivative
transactions (including but not
limited to options and swaps and
other derivative transactions) in
domestic or international
financial markets by limiting the
income of the time deposits to
the upper limit the sum of the
investment gains and losses of
financial derivative transactions
Annualize
d returns:
3.30%
3.30% 42.17 42.50 42.50 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-033)
26
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
and the bank deposit interest
together constitute the income of
structured deposit products.Mianyan
g Branch
of Bank
of
Commun
ications
Co. Ltd.
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
own
funds
May
27
202
0
Augus
t 27
2020
The funds collected by the
structured deposit products are
included in the deposit
management category as the
principal
Annualize
d returns:
3.30%
3.30% 42.63 41.59 41.59 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-034)
Chengdu
Branch
of Bohai
Bank
Co. Ltd
Bank
Principal
-guarante
ed with
floating
income
10000.00
Idle
raised
funds
May
27
202
0
Augus
t 26
2020
The structured deposit product
the derivatives tied with the
3-month interbank lending rate
in London (Libor)
Annualize
d returns:
3.45%
3.45% 87.21 86.01 86.01 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-035)
Mianyan
g Branch
of Bank
of
Commun
ications
Co. Ltd.
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
own
funds
June
5
202
0
Septe
mber
7
2020
The funds collected by the
structured deposit products are
included in the deposit
management category as the
principal
Annualize
d returns:
3.27%
3.27% 42.69 42.11 42.11 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-037)
Chengdu
Branch
of China
CITIC
Bank
Co. Ltd.
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
raised
funds
June
15
202
0
Septe
mber
14
2020
This product is a structured
deposit product which refers to
deposits embedded in financial
derivative products linking to
the fluctuation of interest rates
exchange rates indexes and
other financial market objects or
to the credit status of an entity
Annualize
d returns:
3.30%
3.30% 41.71 41.14 41.14 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-040)
27
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
so that depositors can obtain
corresponding benefits on the
basis of bearing certain risks.Hefei
Branch
of Bank
of East
Asia
(China)
Limited
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
own
funds
June
12
202
0
Septe
mber
11
2020
Deposits embedded in financial
derivative products absorbed by
banks are linked to exchange
rate fluctuations so that
depositors can obtain
corresponding returns on the
basis of certain risks.
Annualize
d returns:
3.50%
3.50% 44.24 44.24 44.24 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-039)
Mianyan
g
Economi
c
Develop
ment
Zone
branch of
Bank of
China
Limited
Bank
Guarante
ed
capital
and
minimu
m return
3500.00
Idle
own
funds
Apri
l 22
202
0
May
25
2020
Funds raised by this product are
operated uniformly by the Bank
of China and business
management is carried out in
accordance with the principle of
separating basic deposits from
derivative transactions. The
principal part raised is included
in the unified operation and
management of the internal
funds of the Bank of China and
included in the payment scope of
deposit reserves and deposit
insurance premiums. Products
embedded derivatives are partly
invested in derivatives markets
such as exchange rates interest
rates commodities and indices
and the final product
performance is linked to
Annualize
d returns:
3.40%
3.40% 10.91 10.76 10.76 N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-026)
28
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
derivatives. During the
investment period Bank of
China uses the income method
to value the embedded option
price of this structured deposit.Hefei
Branch
of Bank
of East
Asia
(China)
Limited
Bank
Principal
-guarante
ed with
floating
income
5000.00
Idle
own
funds
July
15
202
0
Octob
er 16
2020
Deposits embedded in financial
derivative products absorbed by
banks are linked to exchange
rate fluctuations so that
depositors can obtain
corresponding returns on the
basis of certain risks.
Annualize
d returns:
3.40%
3.40% 43.91 - - N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-045)
Chengdu
Branch
of
Industrial
Bank
Co. Ltd.
Bank
Principal
-guarante
ed with
floating
income
15000.00
Idle
raised
funds
Sept
emb
er
15
202
0
Dece
mber
14
2020
Structured deposits refer to
business products that are linked
to fluctuations in interest rates
exchange rates indexes etc. or
to the credit status of an entity
so that depositors can obtain
higher returns on the basis of
certain risks.
Annualize
d returns:
2.95%
2.95% 110.62 - - N/A Y
Not
applicable
Juchao
Website(www.c
ninfo.com.cn)
(Notice No.:
2020-068)
Total 93500.00 -- -- -- -- -- -- 803.83 642.25 642.25 -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √ Not applicable
29
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company had no guarantee outside against the regulation in the reporting period.X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
The Company had no non-operational fund occupation from controlling shareholders or its related party in the
reporting period.VIII. Registration form for receiving research communication and interview in the report
period
√ Applicable □Not applicable
Reception time
Reception
location
Reception
way
Receptio
n object
type
Reception
object
The main content of
the discussion and
the information
provided
Index of the basic situation of the survey
September 24
2020
Company
Administration
Center No. 2
Meeting Room
Field
research
Institutio
n
Guolian
Securities
Company
management
http://irm.cninfo.com.cn/ircs/company/companyDeta
il?stockcode=000521&orgId=gssz0000521
30
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Changhong Meiling Co. Ltd.In RMB
Items 2020-9-30 2019-12-31
Current assets:
Monetary fund 4655937296.93 5499601030.64
Settlement provisions
Capital lent
Trading financial assets 28451689.69 7730268.92
Derivative financial assets
Note receivable 1789627662.91 1865165499.50
Account receivable 2474469751.84 1387961981.66
Receivable financing
Accounts paid in advance 102147656.59 25270406.37
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 121045105.24 97241894.80
Including: Interest receivable 6588544.33 9510208.63
Dividend receivable 661434.48
Buying back the sale of financial
assets
Inventories 1767604113.33 1460910189.06
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 247545304.92 63604031.96
Total current assets 11186828581.45 10407485302.91
31
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 81092355.70 88556511.70
Investment in other equity
instrument
Other non-current financial assets 542540000.00 45000000.00
Investment real estate 54357952.53 96343760.13
Fixed assets 2326714921.44 2180572946.87
Construction in progress 110309222.32 252494792.31
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 952907683.39 933248463.84
Expense on Research and
Development
83897499.02 101078659.57
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 113366601.02 97453178.14
Other non-current asset
Total non-current asset 4265186235.42 3794748312.56
Total assets 15452014816.87 14202233615.47
Current liabilities:
Short-term loans 1215801769.00 1103991045.96
Loan from central bank
Capital borrowed
Trading financial liability 3846486.01 1081534.93
Derivative financial liability
Note payable 3974823906.29 3490271482.40
Account payable 2930393650.19 2343116374.58
Accounts received in advance 425149194.97
Contractual liability 297497485.45
32
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 214068066.26 196507174.68
Taxes payable 106761494.22 68558391.66
Other account payable 846024664.04 689477603.21
Including: Interest payable 8506689.76 12340385.61
Dividend payable 4466628.25 3579491.94
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
one year
405676176.26 1708193.90
Other current liabilities
Total current liabilities 9994893697.72 8319860996.29
Non-current liabilities:
Insurance contract reserve
Long-term loans 192640000.00 401280000.00
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable 1878823.17 3016921.44
Long-term wages payable 11490660.94 13774110.61
Accrual liability 144403117.40 166099143.97
Deferred income 173033976.00 179970971.92
Deferred income tax liabilities 8611131.03 6256759.14
Other non-current liabilities
Total non-current liabilities 532057708.54 770397907.08
Total liabilities 10526951406.26 9090258903.37
33
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Owner’s equity:
Share capital 1044597881.00 1044597881.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 2683933116.75 2684366619.10
Less: Inventory shares
Other comprehensive income -21822864.64 -18931430.36
Reasonable reserve
Surplus public reserve 410786860.20 410786860.20
Provision of general risk
Retained profit 708342323.00 884127743.42
Total owner’ s equity attributable to
parent company
4825837316.31 5004947673.36
Minority interests 99226094.30 107027038.74
Total owner’ s equity 4925063410.61 5111974712.10
Total liabilities and owner’ s equity 15452014816.87 14202233615.47
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
Item 2020-9-30 2019-12-31
Current assets:
Monetary funds 3007818915.23 4040632437.18
Trading financial assets 28334702.77 5967556.00
Derivative financial assets
Note receivable 1545386896.07 1722707248.74
Account receivable 2008084819.40 1158563389.33
Receivable financing
Accounts paid in advance 73969626.76 34374932.07
34
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Other account receivable 47619907.02 41964639.42
Including: Interest receivable 3546029.02 7880186.85
Dividend receivable 661434.48
Inventories 438233940.76 339728296.66
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 204470915.67 11930690.86
Total current assets 7353919723.68 7355869190.26
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1835450730.64 1698744114.99
Investment in other equity
instrument
Other non-current financial assets 542540000.00 45000000.00
Investment real estate 4013803.54 7314721.80
Fixed assets 1171227230.67 1138092635.67
Construction in progress 86413924.94 106575581.28
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 497441481.74 483887751.05
Research and development costs 39617231.82 56295271.74
Goodwill
Long-term deferred expenses
Deferred income tax assets 91978459.46 77849317.77
Other non-current assets
Total non-current assets 4268682862.81 3613759394.30
Total assets 11622602586.49 10969628584.56
Current liabilities
Short-term borrowings 1133943950.00 1009757944.82
Trading financial liability 1802881.00 1016052.00
35
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Derivative financial liability
Notes payable 1831961664.08 1936867907.42
Account payable 1923039755.30 1497704307.48
Accounts received in advance 147365864.56
Contractual liability 125130910.62
Wage payable 70323072.58 39633867.87
Taxes payable 19508078.18 20427731.13
Other accounts payable 536196158.47 520559494.30
Including: Interest payable 8441938.06 13175235.76
Dividend payable 3866628.25 3579491.94
Liability held for sale
Non-current liabilities due within
one year
405000000.00
Other current liabilities
Total current liabilities 6046906470.23 5173333169.58
Non-current liabilities:
Long-term loans 192640000.00 401280000.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
11490660.94 13774110.61
Accrued liabilities 137046292.64 158742319.21
Deferred income 65792773.67 67664815.53
Deferred income tax liabilities 3979773.27 742725.60
Other non-current liabilities
Total non-current liabilities 410949500.52 642203970.95
Total liabilities 6457855970.75 5815537140.53
Owners’ equity:
Share capital 1044597881.00 1044597881.00
Other equity instrument
Including: preferred stock
36
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Perpetual capital
securities
Capital public reserve 2753143393.37 2753017007.10
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 410568694.52 410568694.52
Retained profit 956436646.85 945907861.41
Total owner’s equity 5164746615.74 5154091444.03
Total liabilities and owner’s equity 11622602586.49 10969628584.56
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement (the period)
In RMB
Item Current period Last period
I. Total operating income 4560882229.12 3907875881.65
Including: Operating income 4560882229.12 3907875881.65
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 4531206090.78 3877092843.63
Including: Operating cost 3715311494.72 3120899900.24
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
37
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Reinsurance expense
Tax and extras 44493738.61 37337949.44
Sales expense 595445892.13 596324632.05
Administrative expense 67866598.57 75991835.54
R&D expense 96730152.63 74045366.13
Financial expense 11358214.12 -27506839.77
Including: Interest
expenses
23175464.46 15687265.39
Interest income 30618323.24 38289853.37
Add: other income 18566975.24 44877387.39
Investment income (Loss is
listed with “-”)
40002820.42 -49991079.10
Including: Investment income
on affiliated company and joint venture
542880.53 10073856.02
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
27681553.27 39820680.29
Loss of credit impairment
(Loss is listed with “-”)
-10737856.43 -8463027.84
Losses of devaluation of asset
(Loss is listed with “-”)
-8131027.84 -14086299.07
Income from assets disposal
(Loss is listed with “-”)
-364250.38 -3498765.23
III. Operating profit (Loss is listed with
“-”)
96694352.62 39441934.46
Add: Non-operating income 1626799.23 3218452.87
Less: Non-operating expense 247207.80 1413579.86
IV. Total profit (Loss is listed with “-”) 98073944.05 41246807.47
Less: Income tax expense 4609449.11 18695794.99
V. Net profit (Net loss is listed with “-”) 93464494.94 22551012.48
(i) Classify by business continuity
38
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
1.continuous operating net profit(net loss listed with ‘-”)
93464494.94 22551012.48
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
86575054.56 26417996.84
2.Minority shareholders’ gains and
losses
6889440.38 -3866984.36
VI. Net after-tax of other comprehensive
income
-2413984.74 3855002.26
Net after-tax of other comprehensive
income attributable to owners of parent
company
-2261431.44 2611878.24
(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
-2261431.44 2611878.24
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
39
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
-2261431.44 2611878.24
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
-152553.30 1243124.02
VII. Total comprehensive income 91050510.20 26406014.74
Total comprehensive income
attributable to owners of parent Company
84313623.12 29029875.08
Total comprehensive income
attributable to minority shareholders
6736887.08 -2623860.34
VIII. Earnings per share:
(i) Basic earnings per share 0.0829 0.0253
(ii) Diluted earnings per share 0.0829 0.0253
Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and
realized 0 Yuan at last period for combined party
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company (the period)
In RMB
Item Current period Last period
I. Operating income 2541140607.13 2664004704.29
Less: Operating cost 2352710388.97 2406427108.32
Taxes and surcharge 20674818.60 21743329.48
Sales expenses 128368618.23 138981640.75
Administration expenses 27785528.69 32418153.86
R&D expenses 38895620.99 29405298.29
Financial expenses 19541457.12 -6393797.98
Including: interest 21825893.32 11934462.19
40
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
expenses
Interest income 22685288.94 28622977.37
Add: other income 7418544.65 38236515.77
Investment income (Loss is
listed with “-”)
40313906.64 -3964727.76
Including: Investment income
on affiliated Company and joint venture
1041269.76 5794277.12
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
29361123.67 6592242.68
Loss of credit impairment
(Loss is listed with “-”)
-14051654.02 -2371132.58
Losses of devaluation of asset
(Loss is listed with “-”)
-4144576.87 -3585011.06
Income on disposal of assets
(Loss is listed with “-”)
-195720.27 132203.39
II. Operating profit (Loss is listed with
“-”)
11865798.33 76463062.01
Add: Non-operating income 891190.57 23930.00
Less: Non-operating expense 248133.83
III. Total Profit (Loss is listed with “-”) 12756988.90 76238858.18
Less: Income tax -2431050.23 7419865.03
IV. Net profit (Net loss is listed with
“-”)
15188039.13 68818993.15
(i)continuous operating net profit (netloss listed with ‘-”)
15188039.13 68818993.15
(ii) termination of net profit (netloss 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
41
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
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 15188039.13 68818993.15
VII. Earnings per share:
(i) Basic earnings per share 0.0145 0.0659
(ii) Diluted earnings per share 0.0145 0.0659
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
42
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Total operating income 11356742966.11 13041038562.59
Including: Operating income 11356742966.11 13041038562.59
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 11554834849.35 12994783658.83
Including: Operating cost 9469161384.07 10611455437.49
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 99798451.84 117977709.18
Sales expense 1519429320.36 1840716388.92
Administrative expense 203336291.49 240384878.24
R&D expense 264619301.52 194093406.99
Financial expense -1509899.93 -9844161.99
Including: Interest
expenses
68673511.11 73580264.70
Interest income 105402339.93 97691279.74
Add: other income 73419100.44 80188595.99
Investment income (Loss is
listed with “-”)
47154706.68 -38327115.65
Including: Investment income
on affiliated company and joint venture
752761.07 1251855.70
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
43
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
17956801.15 43185470.53
Loss of credit impairment
(Loss is listed with “-”)
-33008077.62 1082468.11
Losses of devaluation of asset
(Loss is listed with “-”)
-34714276.42 -24702231.08
Income from assets disposal
(Loss is listed with “-”)
-542955.36 -4436536.97
III. Operating profit (Loss is listed with
“-”)
-127826584.37 103245554.69
Add: Non-operating income 5072408.44 5694649.89
Less: Non-operating expense 1206761.93 3776106.23
IV. Total profit (Loss is listed with “-”) -123960937.86 105164098.35
Less: Income tax expense 1746437.69 36397055.33
V. Net profit (Net loss is listed with “-”) -125707375.55 68767043.02
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”)
-125707375.55 68767043.02
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
-123555526.37 80752019.41
2.Minority shareholders’ gains and
losses
-2151849.18 -11984976.39
VI. Net after-tax of other comprehensive
income
-3423690.97 -3102378.92
Net after-tax of other comprehensive
income attributable to owners of parent
company
-2891434.28 -1799468.82
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
44
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
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
-2891434.28 -1799468.82
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
-2891434.28 -1799468.82
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
-532256.69 -1302910.10
VII. Total comprehensive income -129131066.52 65664664.10
Total comprehensive income
attributable to owners of parent Company
-126446960.65 78952550.59
Total comprehensive income
attributable to minority shareholders
-2684105.87 -13287886.49
VIII. Earnings per share:
(i) Basic earnings per share -0.1183 0.0773
(ii) Diluted earnings per share -0.1183 0.0773
Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and
45
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
realized 0 Yuan at last period for combined party
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Operating income 5755104440.31 7198760931.63
Less: Operating cost 5374829779.12 6438821213.52
Taxes and surcharge 51017607.45 59372381.91
Sales expenses 238543953.01 477587775.78
Administration expenses 83951545.31 100853326.37
R&D expenses 109077840.28 80879626.58
Financial expenses 3773786.93 2111585.97
Including: interest
expenses
59550849.69 54418469.14
Interest income 85175878.06 68936401.63
Add: other income 45072043.52 56735800.59
Investment income (Loss is
listed with “-”)
118151575.24 20154143.04
Including: Investment income
on affiliated Company and joint venture
3779570.20 2961957.42
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
21580317.77 10027189.27
Loss of credit impairment
(Loss is listed with “-”)
-19248489.48 10417545.43
Losses of devaluation of asset
(Loss is listed with “-”)
-9357570.78 -6377866.03
46
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Income on disposal of assets
(Loss is listed with “-”)
-515309.69 -659108.67
II. Operating profit (Loss is listed with
“-”)
49592494.79 129432725.13
Add: Non-operating income 2274090.68 244520.00
Less: Non-operating expense 248133.83
III. Total Profit (Loss is listed with “-”) 51866585.47 129429111.30
Less: Income tax -10892094.02 8477826.62
IV. Net profit (Net loss is listed with
“-”)
62758679.49 120951284.68
(i)continuous operating net profit (netloss listed with ‘-”)
62758679.49 120951284.68
(ii) termination of net profit (netloss 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
47
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
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 62758679.49 120951284.68
VII. Earnings per share:
(i) Basic earnings per share 0.0601 0.1158
(ii) Diluted earnings per share 0.0601 0.1158
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
10004693970.59 12688809148.13
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
48
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
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 412733445.22 280384080.90
Other cash received concerning
operating activities
106402002.16 125280221.18
Subtotal of cash inflow arising from
operating activities
10523829417.97 13094473450.21
Cash paid for purchasing
commodities and receiving labor
service
8837934853.44 10506147051.44
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 1057706226.87 1153887410.73
Taxes paid 237937839.39 448423347.16
Other cash paid concerning
operating activities
668861446.33 784789548.98
Subtotal of cash outflow arising from
operating activities
10802440366.03 12893247358.31
Net cash flows arising from operating
activities
-278610948.06 201226091.90
II. Cash flows arising from investing
activities:
49
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Cash received from recovering
investment
737460000.00 2174000000.00
Cash received from investment
income
42570007.43 37989139.50
Net cash received from disposal of
fixed intangible and other long-term
assets
381041.58 19483459.24
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
122087124.32 94129473.53
Subtotal of cash inflow from investing
activities
902498173.33 2325602072.27
Cash paid for purchasing fixed
intangible and other long-term assets
296007313.74 266302834.52
Cash paid for investment 1435280051.17 1981000000.00
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
76709995.61
Subtotal of cash outflow from investing
activities
1731287364.91 2324012830.13
Net cash flows arising from investing
activities
-828789191.58 1589242.14
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 1703478583.33 1308256908.10
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
1703478583.33 1308256908.10
Cash paid for settling debts 1374663591.82 1925202449.42
50
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Cash paid for dividend and profit
distributing or interest paying
107526031.28 127772072.70
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
4796676.00 2274030.00
Other cash paid concerning
financing activities
2432566.62 32764857.16
Subtotal of cash outflow from financing
activities
1484622189.72 2085739379.28
Net cash flows arising from financing
activities
218856393.61 -777482471.18
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-18563610.41 12976331.25
V. Net increase of cash and cash
equivalents
-907107356.44 -561690805.89
Add: Balance of cash and cash
equivalents at the period -begin
5385807475.51 4484643187.93
VI. Balance of cash and cash
equivalents at the period -end
4478700119.07 3922952382.04
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
4354136982.12 6358153483.13
Write-back of tax received 202094517.08 135160922.67
Other cash received concerning
operating activities
49386127.12 66198821.85
Subtotal of cash inflow arising from 4605617626.32 6559513227.65
51
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
operating activities
Cash paid for purchasing
commodities and receiving labor
service
4590744074.29 5874686994.43
Cash paid to/for staff and workers 272738427.46 327130629.38
Taxes paid 53367393.47 156564790.86
Other cash paid concerning
operating activities
193120699.08 330317153.84
Subtotal of cash outflow arising from
operating activities
5109970594.30 6688699568.51
Net cash flows arising from operating
activities
-504352967.98 -129186340.86
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
702460000.00 2174000000.00
Cash received from investment
income
110756490.39 42579139.50
Net cash received from disposal of
fixed intangible and other long-term
assets
293300.00 6708283.94
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
101821310.58 309067175.10
Subtotal of cash inflow from investing
activities
915331100.97 2532354598.54
Cash paid for purchasing fixed
intangible and other long-term assets
119262604.64 139125420.63
Cash paid for investment 1542169149.17 1987000000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
22000.00 75426953.88
Subtotal of cash outflow from investing
activities
1661453753.81 2201552374.51
Net cash flows arising from investing
activities
-746122652.84 330802224.03
52
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 1302447383.33 1064409999.44
Other cash received concerning
financing activities
146722354.11 28609663.72
Subtotal of cash inflow from financing
activities
1449169737.44 1093019663.16
Cash paid for settling debts 961397944.82 1451985025.00
Cash paid for dividend and profit
distributing or interest paying
94605755.57 114912675.86
Other cash paid concerning
financing activities
163963741.66 121717485.21
Subtotal of cash outflow from financing
activities
1219967442.05 1688615186.07
Net cash flows arising from financing
activities
229202295.39 -595595522.91
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-11540196.52 8391306.55
V. Net increase of cash and cash
equivalents
-1032813521.95 -385588333.19
Add: Balance of cash and cash
equivalents at the period -begin
4017400437.18 2894384811.05
VI. Balance of cash and cash
equivalents at the period -end
2984586915.23 2508796477.86
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new revenue
rules and new leasing rules from 2020
√ Applicable □Not applicable
53
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Whether to adjust the balance sheet account at the beginning of the year
√ Yes □No
(1) Consolidate balance sheet
In RMB
Item December 31 2019 January 1 2020 Adjustment amount
Current assets:
Monetary fund 5499601030.64 5499601030.64
Settlement provisions
Capital lent
Trading financial assets 7730268.92 7730268.92
Derivative financial
assets
Note receivable 1865165499.50 1865165499.50
Account receivable 1387961981.66 1387961981.66
Receivable financing
Accounts paid in
advance
25270406.37 25270406.37
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Other account
receivable
97241894.80 97241894.80
Including: Interest
receivable
9510208.63 9510208.63
Dividend
receivable
661434.48 661434.48
Buying back the sale of
financial assets
Inventories 1460910189.06 1460910189.06
Contractual assets
Assets held for sale
Non-current asset due
within one year
Other current assets 63604031.96 63604031.96
Total current assets 10407485302.91 10407485302.91
54
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Non-current assets:
Loans and payments on
behalf
Debt investment
Other debt investment
Long-term account
receivable
Long-term equity
investment
88556511.70 88556511.70
Investment in other
equity instrument
Other non-current
financial assets
45000000.00 45000000.00
Investment real estate 96343760.13 96343760.13
Fixed assets 2180572946.87 2180572946.87
Construction in progress 252494792.31 252494792.31
Productive biological
asset
Oil and gas asset
Right-of-use assets
Intangible assets 933248463.84 933248463.84
Expense on Research
and Development
101078659.57 101078659.57
Goodwill
Long-term expenses to
be apportioned
Deferred income tax
asset
97453178.14 97453178.14
Other non-current asset
Total non-current asset 3794748312.56 3794748312.56
Total assets 14202233615.47 14202233615.47
Current liabilities:
Short-term loans 1103991045.96 1103991045.96
Loan from central bank
Capital borrowed
Trading financial 1081534.93 1081534.93
55
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
liability
Derivative financial
liability
Note payable 3490271482.40 3490271482.40
Account payable 2343116374.58 2343116374.58
Accounts received in
advance
425149194.97 -425149194.97
Contractual liability 425149194.97 425149194.97
Selling financial asset of
repurchase
Absorbing deposit and
interbank deposit
Security trading of agency
Security sales of agency
Wage payable 196507174.68 196507174.68
Taxes payable 68558391.66 68558391.66
Other account payable 689477603.21 689477603.21
Including: Interest
payable
12340385.61 12340385.61
Dividend
payable
3579491.94 3579491.94
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities
due within one year
1708193.90 1708193.90
Other current liabilities
Total current liabilities 8319860996.29 8319860996.29
Non-current liabilities:
Insurance contract reserve
Long-term loans 401280000.00 401280000.00
Bonds payable
Including: Preferred
stock
Perpetual
capital securities
56
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Lease liability
Long-term account
payable
3016921.44 3016921.44
Long-term wages
payable
13774110.61 13774110.61
Accrual liability 166099143.97 166099143.97
Deferred income 179970971.92 179970971.92
Deferred income tax
liabilities
6256759.14 6256759.14
Other non-current
liabilities
Total non-current liabilities 770397907.08 770397907.08
Total liabilities 9090258903.37 9090258903.37
Owner’s equity:
Share capital 1044597881.00 1044597881.00
Other equity instrument
Including: Preferred
stock
Perpetual
capital securities
Capital public reserve 2684366619.10 2684366619.10
Less: Inventory shares
Other comprehensive
income
-18931430.36 -18931430.36
Reasonable reserve
Surplus public reserve 410786860.20 410786860.20
Provision of general risk
Retained profit 884127743.42 884127743.42
Total owner’ s equity
attributable to parent
company
5004947673.36 5004947673.36
Minority interests 107027038.74 107027038.74
Total owner’ s equity 5111974712.10 5111974712.10
Total liabilities and owner’ s
equity
14202233615.47 14202233615.47
Statement of adjustment:
The Company implemented the Accounting Standards for Business Enterprise No.14- Revenue (Cai Kuai [2017]
57
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
No.22) since 1 January 2020 the “Accounts received in advance” will list as “Contractual liability”.
(2) Balance Sheet of Parent Company
In RMB
Item December 31 2019 January 1 2020 Adjustment amount
Current assets:
Monetary funds 4040632437.18 4040632437.18
Trading financial assets 5967556.00 5967556.00
Derivative financial
assets
Note receivable 1722707248.74 1722707248.74
Account receivable 1158563389.33 1158563389.33
Receivable financing
Accounts paid in
advance
34374932.07 34374932.07
Other account
receivable
41964639.42 41964639.42
Including: Interest
receivable
7880186.85 7880186.85
Dividend
receivable
661434.48 661434.48
Inventories 339728296.66 339728296.66
Contractual assets
Assets held for sale
Non-current assets
maturing within one year
Other current assets 11930690.86 11930690.86
Total current assets 7355869190.26 7355869190.26
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity
investments
1698744114.99 1698744114.99
Investment in other
equity instrument
Other non-current
financial assets
45000000.00 45000000.00
58
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Investment real estate 7314721.80 7314721.80
Fixed assets 1138092635.67 1138092635.67
Construction in progress 106575581.28 106575581.28
Productive biological
assets
Oil and natural gas
assets
Right-of-use assets
Intangible assets 483887751.05 483887751.05
Research and
development costs
56295271.74 56295271.74
Goodwill
Long-term deferred
expenses
Deferred income tax
assets
77849317.77 77849317.77
Other non-current assets
Total non-current assets 3613759394.30 3613759394.30
Total assets 10969628584.56 10969628584.56
Current liabilities
Short-term borrowings 1009757944.82 1009757944.82
Trading financial
liability
1016052.00 1016052.00
Derivative financial
liability
Notes payable 1936867907.42 1936867907.42
Account payable 1497704307.48 1497704307.48
Accounts received in
advance
147365864.56 -147365864.56
Contractual liability 147365864.56 147365864.56
Wage payable 39633867.87 39633867.87
Taxes payable 20427731.13 20427731.13
Other accounts payable 520559494.30 520559494.30
Including: Interest
payable
13175235.76 13175235.76
Dividend 3579491.94 3579491.94
59
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 5173333169.58 5173333169.58
Non-current liabilities:
Long-term loans 401280000.00 401280000.00
Bonds payable
Including: preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long term employee
compensation payable
13774110.61 13774110.61
Accrued liabilities 158742319.21 158742319.21
Deferred income 67664815.53 67664815.53
Deferred income tax
liabilities
742725.60 742725.60
Other non-current
liabilities
Total non-current liabilities 642203970.95 642203970.95
Total liabilities 5815537140.53 5815537140.53
Owners’ equity:
Share capital 1044597881.00 1044597881.00
Other equity instrument
Including: preferred
stock
Perpetual
capital securities
Capital public reserve 2753017007.10 2753017007.10
Less: Inventory shares
Other comprehensive
income
60
CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2020(Full Text)
Special reserve
Surplus reserve 410568694.52 410568694.52
Retained profit 945907861.41 945907861.41
Total owner’s equity 5154091444.03 5154091444.03
Total liabilities and owner’s
equity
10969628584.56 10969628584.56
Statement of adjustment
The Company implemented the Accounting Standards for Business Enterprise No.14- Revenue (Cai Kuai [2017]
No.22) since 1 January 2020 the “Accounts received in advance” will list as “Contractual liability”.
2. Retrospective adjustment of the comparative data for initial implementation of new revenue rules and
new leasing rules from 2020
□Applicable √Not applicable
III. Audit report
Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.
Changhong Meiling Co. Ltd.
Chairman: Wu Dinggang
20 October 2020
61
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