虹美菱B:2023年第三季度报告

CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Stock Code: 000521 200521 Stock Abbreviation: Changhong Meiling Hongmeiling B

Announcement No.: 2023-059

Changhong Meiling Co. Ltd.The Third Quarterly Report of 2023

The Company and whole members of the Board guarantee that the information disclosed is true accurate and

complete and there are no fictitious records misleading statements or material omissions carried in the Report.Important Note:

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

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

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

omissions carried in this report and shall take legal responsibilities individual and/or joint.

2.Mr. Wu Dinggang Person in charge of the Company Mr. Pang Haitao head of accounting and Mr. Yang

Jun person in charger of accounting organ (accounting officer) hereby confirm that the financial information of

this Quarterly Report is authentic accurate and complete.

3. The Third quarterly report audited or not

□Yes √No

I. Main financial data

(i) Main accounting data and financial indexes

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

□ Yes√ No

Increase/decrease from

Increase/decrease in the

year-begin to

period compared with Year-begin to

Current period period-end compared

the same period of the period-end

with the same period of

previous year

the previous year

Operating income

6338921510.2723.07%19167615833.8424.66%

(RMB)

Net profit attributable

to shareholders of the 140719309.64 38.20% 498774154.38 207.51%

listed company (RMB)

1CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Net profit attributable

to shareholders of the

listed company after

131279099.5576.74%513268943.37554.80%

deducting

non-recurring gains

and losses (RMB)

Net cash flow arising

from operating — — 2406267035.85 30.83%

activities (RMB)

Basic earnings per

0.136638.12%0.4843209.06%

share (RMB/Share)

Diluted earnings per

0.136638.12%0.4843209.06%

share (RMB/Share)

Increase by 0.61 Increase by 5.95

Weighted average ROE 2.69% 9.26%

percentage points percentage points

Changes of this period-end over same period-end

End of this period End of last period

of last year

Total assets (RMB) 19316478659.62 16200361212.80 19.23%

Owners’ equity

attributable to

5586633843.975168286872.098.09%

shareholders of listed

company (RMB)

(ii)Items of non-recurring gains and losses

√ Applicable □ Not applicable

In RMB

Year-begin to

Item Current amount Note

period-end

Gains/losses from the disposal of non-current asset See "Proceeds from Asset

(including the write-off that accrued for impairment 1379107.45 1379107.45

Disposal"

of assets)

Governmental subsidy calculated into current gains

and losses(while closely related with the normal

See "Other Earnings" for

business of the Company the government subsidy

24077197.41 52239458.95 details.

that accord with the provision of national policies

and are continuously enjoyed in line with a certain

standard quota or quantity are excluded)

Gain and loss from change of the fair value arising

from transactional monetary assets transactional

financial liabilities as held as well as the investment See "Fair value Change

income arising from disposal of the transactional income" and "Investment

-16349602.74-75564024.77

monetary assets transactional financial liabilities Income" for details.and financial assets available for sale excluding the

effective hedging transaction in connection with the

Company’s normal business

Reversal of the account receivable depreciation See "Accounts

866709.844454874.91

reserves subject to separate impairment test Receivable" for details.

2CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

See "Non-operating

Other non-operating income and expenses other Income" and

1836340.339525560.91

than the above "Non-operating

Expenses" for details.Less: impact on income tax 252305.52 -602437.72

Impact on minority shareholders’ equity (post-tax) 2117236.68 7132204.16

Total 9440210.09 -14494788.99 --

Details of other profit and loss items that meet the non-recurring profit and loss definition

□ Applicable √ Not applicable

There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss

in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public

--- Extraordinary Profit/loss

□ Applicable √ Not applicable

There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss

in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public

--- Extraordinary Profit/loss

(iii)Particulars about material changes in items of main accounting statement financial index and

explanations of reasons

√ Applicable □Not applicable

1.Changes and reasons of items in balance sheet

In RMB

Changes

Item Ending balance Opening balance Reasons of changes

ratio

Mainly due to the purchase of wealth management

Trading financial assets 422556947.00 57660588.67 632.83%

products by the Company in the current period.Mainly due to the Company's newly increased

Notes receivable 38674.50 - -

commercial acceptance bills in the current period

Mainly due to the growth of operation revenue in the

Account receivable 1707094454.29 1306871945.85 30.62%

current period

Mainly due to the company's new project quality

Contract assets 29701096.48 3530922.13 741.17%

guarantee fund in the current period

Non-current asset due Mainly due to the increase in debt investment due

292244708.33170167638.8971.74%

within one year within one year of the current period

Mainly due to the increase in time deposits in the

Other current assets 262155370.10 120589431.85 117.39%

current period

3CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Creditor's rights Mainly due to the increase in the Company's large

235314579.15121543750.0093.60%

investment certificates of deposit in the current period

Mainly due to the increase in the Company's asset

Long-term amortization 22192272.11 14900600.59 48.94%

overhaul in the current period

Other non-current Mainly due to the increase in the Company's prepaid

2648540.47893238.57196.51%

assets project payment in the current period

Mainly due to the increase in bank borrowings in the

Short-term loan 1069166879.76 674143916.67 58.60%

current period

Mainly due to the non cancelable orders and change

Trading financial

80786616.67 41961524.78 92.53% of the valuation from forward foreign exchange

liabilities

contracts

Mainly due to the increase in VAT payable by the

Taxes payable 105393081.13 80287878.62 31.27%

Company in the current period

Non-current liabilities Mainly due to the increase in long-term borrowings

40071769.9630287099.0832.31%

due within one year due within one year of the current period

Mainly due to the Company's provision of safety

Special reserve 13238702.97 2467205.78 436.59%

production expenses in the current period.

2.Changes and reasons of items in profit statement

In RMB

Item Current period Amount at the same Changes

Reasons of changes

period of last year ratio

Mainly due to the YOY increases in interest

Financial expenses -107571987.60 -79277613.98 -35.69%

expenses

Mainly due to the non cancelable orders and

Income from fair value

-63928733.56 6783043.30 -1042.48% change of the fair value of forward foreign

changes

exchange contract changes

Mainly due to the Company's forward foreign

exchange contract delivery loss in the current

Investment earnings 6121002.68 19970558.55 -69.35%

period and the profit in the same period of the

previous year

Mainly due to the YOY increase in impairment

Credit impairment loss -93458661.22 -61885204.97 51.02%

loss from account receivable

Mainly due to the YOY decrease in the

Loss of asset impairment -19904174.33 -35044901.69 -43.20% provision for the Company's inventory price

decline in the current period

Mainly due to the YOY decrease in the

Gains on disposal of

1379107.45 9653201.02 -85.71% Company's asset disposal income in the

assets

current period

4CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Mainly due to the YOY increase in revenue

Non-operating income 13003292.01 7725531.66 68.32% such as liquidated damages received by the

Company in the current period

Mainly due to the increase in income tax

Income tax expenses 4446696.74 -9091804.45 148.91% expense due to the increase in the Company's

taxable income in the current period

3.Changes and reasons of items in cash flow statement

In RMB

Item Current period Amount at the same

Changes ratio Reasons of changes

period of last year

Other cash received Mainly due to the YOY decrease in

concerning operation 73343301.56 172312892.42 -57.44% government subsidies received by the

activities Company in the current period.Mainly due to the YOY increase in the

Cash received from

630000000.00 323322268.35 94.85% Company's withdrawal of wealth

recovery of investment

management products in the current period

Net cash received from

Mainly due to the YOY decrease in cash

disposal of fixed assets

4027612.46 16653271.93 -75.81% received by the Company for the disposal of

intangible assets and other

assets in the current period.long-term assets

Mainly due to the receipt of raised funds by

Cash received from its subsidiary Zhongke Meiling in the same

-368459272.52-100.00%

absorbing investment period of the previous year and there was no

such receipt in this period.Mainly due to the YOY

Cash received from

1135721085.04 868040918.37 30.84% increase in bank borrowings obtained by the

borrowing

company in this period

Other cash received Mainly due to the limited recovery of the

concerning financing 250002913.48 11404482.95 2092.15% Company's guarantee deposits in the current

activities period

Other cash paid Mainly due to the YOY decrease in the

concerning financing 107503081.30 869994470.14 -87.64% Company's guarantee deposits restriction in

activities the current period

Influence on cash and cash

equivalents due to Mainly due to the change of exchange rate in

1594491.6947997201.13-96.68%

fluctuation in exchange the current period

rate

5CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

II. Shareholders

(i)Total number of common shareholders and preference shareholders with voting rights recovered and

top ten shareholders

In Shares

Total preference shareholders

Total number of common

with voting rights recovered at

shareholders at the end of report 50291 0

end of reporting period (if

period

applicable)

Top ten shareholders

Information of shares

Proportion Amount of pledged tagged or

Nature of Amount of

Shareholder’s name of shares lock-up frozen

shareholder shares held

held shares held State of

Amount

State-owned legal

Sichuan Changhong Electric Co. Ltd. 24.12% 248457724 0 - --

person

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

4.64%478234010--

Ltd. person

CHANGHONG (HK) TRADING LIMITED Foreign legal person 2.63% 27077797 0 - -

Foreign natural

CAO SHENGCHUN 1.43% 14766086 0 - -

person

Domestic

Bank of China－Investment quantitative selection

non-state-owned 0.96% 9847692 0 - -

of stock initiated securities investment fund

legal person

China construction Bank－Bank of Domestic

Communications Schroeder consumer new drive non-state-owned 0.85% 8715868 0 - -

equity securities investment fund legal person

Agricultural bank of China－Bank of

Domestic

Communications Schroder domestic demand

non-state-owned 0.76% 7843800 0 - -

growth of a year holding period of hybrid

legal person

securities investment fund

Domestic

Bank of China－Jiashi theme selected hybrid

non-state-owned 0.68% 7046809 0 - -

securities investment fund

legal person

Phillip Securities( HK) Co. Ltd. Foreign legal person 0.61% 6296913 0 - -

Domestic natural

Wu Lili 0.57% 5875000 0 - -

person

Top ten shareholders with unrestricted shares held

Type of shares

Shareholder’s name Amount of unrestricted shares held

Type Amount

6CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

RMB ordinary

Sichuan Changhong Electric Co. Ltd. 248457724 248457724

Hefei Industry Investment Holding (Group) Co. RMB ordinary

4782340147823401

Ltd. shares

Domestically listed

CHANGHONG (HK) TRADING LIMITED 27077797 27077797

foreign shares

Domestically listed

CAOSHENGCHUN 14766086 14766086

foreign shares

Bank of China－Investment quantitative selection RMB ordinary

98476929847692

of stock initiated securities investment fund shares

China construction Bank－Bank of

RMB ordinary

Communications Schroeder consumer new drive 8715868 8715868

equity securities investment fund

Agricultural bank of China－Bank of

Communications Schroder domestic demand RMB ordinary

78438007843800

growth of a year holding period of hybrid shares

securities investment fund

Bank of China－Jiashi theme selected hybrid RMB ordinary

70468097046809

securities investment fund shares

Domestically listed

Phillip Securities( HK) Co. Ltd. 6296913 6296913

foreign shares

RMB ordinary

Wu Lili 5875000 5875000

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 of the B shares of the Company 6296913 shares of B-stock are also held through

Phillip Securities (Hong Kong) Co. Ltd. the foregoing shareholders constitute persons of uniform action. There

Explanation on associated

existed no associated relationship or belong to the concerted actors as specified in the Measures for the

relationship among the

Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan

aforesaid shareholders

Changhong Electric Co. Ltd Hong Kong Changhong and other top 7 shareholders The company neither knows

whether there is any association among other shareholders nor knows whether other shareholders belong to thepersons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure ofChanges in Shareholding of Listed Companies”.Explanation on top ten

As of September 302023 among the top 10 common shareholders Wu Lili Holds 5500000 shares of the

shareholders involving

Company through Customer credit trading secured account of Guotai Junan Securities Co. Ltd. and 375000

margin business (if

shares hold through common securities account thus 5875000 shares of the Company are held in total.applicable)

7CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held

□ Applicable √ Not applicable

III. Other important matters

√Applicable □Not applicable

Information index for temporary report

Overview Date for disclosure

disclosure

After the resolution adopted by the board of directors the board of

supervisors and shareholders General Meeting of the Company

Juchao website

it’s agreed that the Company will with its own funds of 45 million yuan

January 18 2023April http://www.cninfo.com.cn

participate in the establishment of "Sichuan Hongyun Information262023 （No.:2023-0022023-0032023-00420Technology Venture Capital Fund Partnership (Limited Partnership)"

23-030）

(tentative name subject to the approval and registration of the market

regulatory department) and serve as a limited partner of the fund.After the resolution adopted by the board of directors the board of

supervisors and shareholders General Meeting of the Company it’s agreed

that the Company and its subsidiaries will make a single provision for bad

debts for receivables of the customer Changhong RUBA Electric Appliance

Co. Ltd(an associate of Zhongshan Changhong Electric Appliance Co. Ltd-a

Juchao website

subsidiary to the Company) in the fourth quarter of 2022 and agreed that the

January 18 2023April http://www.cninfo.com.cn

Company its subsidiaries Hefei Meiling Group Holdings Co. Ltd. and262023 （No.:2023-0022023-0032023-00520Sichuan Changhong Air Conditioning Co. Ltd and Sichuan Zhiyijia Network

23-030）

Technology Co. Ltd-an associate of the Company made a single provision

for bad debts for the receivables of Gome System (Gome System is the

collective name of Gome's subsidiaries branches offices and agencies at all

levels) with the total amount for the aforementioned single provisions for

bad debts of 101962546.44 yuan.After the resolution adopted by the board of directors the board of

supervisors and shareholders General Meeting of the Company The Profit

Distribution Plan of 2022 was deliberated and approved meanwhile

independent director of the Company expressed their independent approval

of the Plan. By focusing on the investor’s interest and long-term development

needs Based on the total share capital of the Company of 1029923715

Juchao website

shares on December 31 2022distributed 0.9 yuan (tax included) in cash for

March 312023 April 26 http://www.cninfo.com.cn

every 10 shares to whole shareholders no bonus shares and no share capital2023 June 102023 （No.:2023-0112023-0122023-01420increased from public reserves. After distribution total share capital of the

23-0302023-037）

Company remains unchanged. The remaining accumulated retain profit of the

parent company amounted to 971443732.63 yuan and the remaining

retained profit will carry forward for distribution in later years. On June

102023the Company disclosed the "2022 Annual Profit Distribution Plan

Implementation Announcement" and implemented the aforementioned profit

distribution plan.

8CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

After the resolution adopted by the board of directors the board of

Juchao website

supervisors and shareholders General Meeting of the Company it’s agreed to March 312023 April 26

http://www.cninfo.com.cn

renew the appointment of ShineWing CPA (LLP) as the auditor of the 2023（No.:2023-0112023-0152023-030）

Company's 2023 annual financial report and internal control for one year.After the resolution adopted by the board of directors and shareholders

General Meeting of the Company it’s agreed that the Company and its

subsidiaries will carry out forward foreign exchange fund trading business Juchao website

March 312023 April 26

from July 1 2023 to June 30 2024 with a transaction balance of not more http://www.cninfo.com.cn

2023

than USD 1.046 billion (mainly including: USD AUD EURO and all other （No.:2023-0112023-0162023-030）

foreign currencies converted into USD) and the delivery period of a single

business shall not exceed 1 year.After the resolution of the board of directors and the resolution of the board

of supervisors of the Company in accordance with the principles of legal

Juchao website

compliance standardized operation one-by-one examination and approval

March 312023 http://www.cninfo.com.cn

and account write-off records Zhongshan Changhong Electric Appliance（No.:2023-0112023-0122023-017）

Co. Ltd. a subsidiary of the company was agreed to write off a total of

1307424.41 yuan of bad debts that had been truly unrecoverable.

After the resolution adopted by the board of directors of the Company it’s

approved that the Company and its subsidiaries will apply for a special credit

line of up to 400 million yuan for the bill pool from Hefei Branch of Juchao website

March 312023 April 26

Industrial Bank Co. Ltd; will apply for a special credit line of up to 300 http://www.cninfo.com.cn

2023

million yuan for the bill pool from Hefei Branch of Ping An Bank Co. Ltd; （No.:2023-0112023-0182023-030）

and will apply for a special credit line of up to 400 million yuan for the bill

pool from Hefei Branch of Jiujiang Bank Co. Ltd.From April 17 2023 to April 19 2023 the Company's stock closing price

rise for three consecutive trading days had accumulated more than 20%

deviation from the stock index. According to the relevant regulations of the Juchao website

Shenzhen Stock Exchange the Company issued the "Announcement of http://www.cninfo.com.cn

April 202023

Abnormal Fluctuation in Stock Trading". According to the Company's （No.:2023-029）

self-examination the Company the controlling shareholder and the actual

controller did not have any material matters about the Company that should

be disclosed but have not been disclosed or were in the planning stage.After the resolution of the Company's board of directors and the resolution of

shareholders' general meeting according to the Company's operation and Juchao website

April 202023 May

management needs and combined with the actual situation of the Company http://www.cninfo.com.cn

112023

it’s agreed to amend some articles of the Articles of Association of the （No.:2023-0232023-0272023-033）

Company.On April 27 2023 the Company received a notice from Mr. Tang Youdao

Vice President of the Company that based on his firm confidence in the

Juchao website

Company's future development prospect and recognition of the Company's

April 292023 http://www.cninfo.com.cn

long-term investment value Mr. Tang Youdao increased his holdings by（No.:2023-032）

800000 RMB ordinary shares (A shares) of the Company by way of

centralized bidding through the trading system of the Shenzhen Stock

9CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Exchange.In order to establish a variety of shareholder return mechanisms thank

shareholders for their long-term care and support for the Company and

Juchao website

meanwhile let shareholders experience the Company's new products and

May 182023 http://www.cninfo.com.cn

services and improve investors' understanding and recognition of the（No.:2023-034）

Company's intrinsic value the Company held the "Meiling 40th Anniversary

Shareholder Gratitude Giving Festival" from May 20 2023 to May 28 2023.Mr. Liu Hongwei former executive vice president of the Company applied

Juchao website

to resign from his position as the executive vice president of the Company

May 252023 http://www.cninfo.com.cn

due to personal reasons; After resigning from Executive Vice President Mr.（No.:2023-036）

Liu Hongwei still works for the Company.After the resolution of the board of directors of the Company it’s agreed to

adjust the equity structure of Sichuan Hongmei Intelligent Technology Co.Ltd. (hereinafter referred to as "Hongmei Company") that was the total

100% equity held by the original shareholders Sichuan Changhong Air

Conditioning Co. Ltd. (a wholly-owned subsidiary of the Company which Juchao website

holds 99% of the equity of Hongmei Company) and Mianyang Meiling August 182023 http://www.cninfo.com.cn

Refrigeration Co. Ltd. (a wholly-owned subsidiary of the Company which （No.:2023-040）

holds 1% of the equity of Hongmei Company) was transferred to the

Company-which thus directly holds it with the equity transfer price was

based on the audited net asset value of 22725052.60 yuan of Hongmei

Companyas of December 31 2022.After the resolution of the board of directors of the Company it’s agreed to Juchao website

cancel Hefei Meiling Electric Marketing Co. Ltd. a wholly -owned August 182023 http://www.cninfo.com.cn

subsidiary of the Company. （No.:2023-040）

After the resolution of the board of directors of the Company it’s agreed that

its subsidiary Zhongshan Changhong Electric Appliance Co. Ltd. will Juchao website

invest 36.526 million yuan by its own funds to carry out technical August 182023 http://www.cninfo.com.cn

transformation of its production line to improve its manufacturing capacity （No.:2023-040）

reduce costs and improve efficiency and enhance product competitiveness.Approved by the resolution of the board of directors of the Company in

accordance with the Company's development strategy and the business

development needs of Hongyuan Geoenergy Heat Pump Technology

(Zhongshan) Co. Ltd. (hereinafter referred to as "Heat Pump Zhongshan")-a

subsidiary to the Company’s subsidiary -Sichuan Changhong Air

Juchao website

Conditioning Co. Ltd. in order to solve the problem of insufficient

August 182023 http://www.cninfo.com.cn

production capacity of the Heat Pump Zhongshan production and（No.:2023-040）

manufacturing base further improve its production and manufacturing

capacity and enhance the competitiveness and profitability of its products

it’s agreed that Heat Pump Zhongshan will implement the relocation and

expansion project with its own funds of 34.62 million yuan to ensure its

future business development.

10CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

After the resolution of the Company's directors and he resolution of

shareholders' general meeting of the Company it’s agreed to provide an

Juchao website

additional credit guarantee line of not more than RMB 80 million for Meiling

August 182023 http://www.cninfo.com.cn

life Appliances with a guarantee period of one year for its daily production（No.:2023-043）

and operation.Sichuan Hongyun New Generation Information Technology Venture Capital

Fund Partnership (Limited Partnership) jointly funded by the Company and

its controlling shareholder Sichuan Changhong Electric Co. Ltd. (hereinafter

referred to as "Sichuan Changhong") and the controlling shareholder’s

subsidiary Sichuan Changhong Jiahua Digital Technology Co. Ltd.Juchao website

(hereinafter referred to as "Jiahua Digital") and other investment institutions

September 82023 http://www.cninfo.com.cn

was established in October 2015 with a duration of 8 years and will expire in（No.:2023-0442023-0452023-046）

October 2023. After the resolution of the board of directors and the resolution

of the board of supervisors of the Company it’s agreed to extend the

existence of the fund for 1 year (the specific expiry date shall be subject to

the industrial and commercial registration) that is the cumulative duration of

the fund after this extension is 9 years.After the resolution of the board of directors and the board of supervisors of

the Company it’s agreed that the Company will increase the estimated

amount of not to exceed 25 million yuan (excluding tax) of routine related

party transactions such as the purchase of commodities and raw materials

Juchao website

between the Company and its subsidiaries and Sichuan Changhong

September 82023 http://www.cninfo.com.cn

Electronics Holding Group Co. Ltd. and its subsidiaries in 2023 ; and will（No.:2023-0442023-0452023-047）

increase the estimated amount of not to exceed 10 million yuan (excluding

tax) of routine related party transactions such as the purchase of goods

between the Company and its subsidiaries and Sichuan Changhong

Electronic Parts Co. Ltd. in 2023.After the resolution of the board of directors of the Company in order to

further improve the production and manufacturing capacity of Sichuan

Changhong Air Conditioning Co. Ltd. (hereinafter referred to as

"Changhong Air Conditioning") and meet its business development needs

it’s agreed to Changhong Air Conditioning to implement the capacity

Juchao website

improvement and transformation project with its own funds of 32206700

September 82023 http://www.cninfo.com.cn

yuan; Meanwhile in order to further improve the production and（No.:2023-044）

manufacturing system capacity of Changhong Air Conditioning and meet its

needs for improvement in production efficiency product quality on-site

image and prevent potential safety hazards it’s agreed to Changhong Air

Conditioning to carry out technical transformation with its own funds of

17135700 yuan.

11CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

IV. Quarterly financial statements

(i) Financial statement

1. Consolidate Balance Sheet

Prepared by Changhong Meiling Co. Ltd.In RMB

Item September 302023 January 1 2023

Current assets:

Monetary fund 8646007671.31 6839421779.13

Settlement provisions

Capital lent

Trading financial assets 422556947.00 57660588.67

Derivative financial assets

Note receivable 38674.50

Account receivable 1707094454.29 1306871945.85

Receivable financing 1527554388.08 1446358719.88

Account paid in advance 34714711.68 45859491.55

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

Other account receivable 65938030.81 88354803.24

Including: Interest receivable

Dividend receivable

Buying back the sale of financial assets

Inventory 1800812409.17 1710306933.71

Contract assets 29701096.48 3530922.13

Assets held for sale

Non-current asset due within one year 292244708.33 170167638.89

Other current assets 262155370.10 120589431.85

Total current assets 14788818461.75 11789122254.90

Non-current assets:

Loans and payments on behalf

Creditor's rights investment 235314579.15 121543750.00

Other Creditor's rights investment

Long-term account receivable

Long-term equity investment 105834056.10 100384428.50

Investment in other equity instrument

Other non-current financial assets 675882782.31 628549448.31

Investment real estate 51414881.00 52898060.89

Fixed assets 2188206930.45 2229553866.96

12CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Construction in progress 50553531.15 66522492.77

Productive biological asset

Oil and gas asset

Right-of-use assets 31014133.24 36646135.10

Intangible assets 877640437.55 900568008.21

Expense on research and development 121489620.31 102148390.57

Goodwill

Long-term expenses to be apportioned 22192272.11 14900600.59

Deferred income tax asset 165468434.03 161565695.30

Other non-current assets 2648540.47 893238.57

Total non-current asset 4527660197.87 4416174115.77

Total assets 19316478659.62 16205296370.67

Current liabilities:

Short-term loans 1069166879.76 674143916.67

Loan from central bank

Capital borrowed

Trading financial liability 80786616.67 41961524.78

Derivative financial liability

Note payable 6393336445.87 4964374512.60

Account payable 3607840583.74 2917997138.00

Accounts received in advance

Contract liabilities 309609196.24 358755397.77

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 376298673.25 348154915.13

Taxes payable 105393081.13 80287878.62

Other account payable 1003782295.20 828207568.21

Including: Interest payable

Dividend payable 5384407.44 4978994.16

Commission charge and commission

payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 40071769.96 30287099.08

Other current liabilities 17880068.15 22605269.51

Total current liabilities 13004165609.97 10266775220.37

Non-current liabilities:

Insurance contract reserve

13CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Long-term loans 128000000.00 148000000.00

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liability 23432385.40 28164287.97

Long-term account payable 886582.50 1145286.48

Long-term wages payable 11909163.22 10790859.64

Accrual liability 31667667.06 32685631.78

Deferred income 140348297.22 161013911.91

Deferred income tax liabilities 13557581.74 17509503.08

Other non-current liabilities

Total non-current liabilities 349801677.14 399309480.86

Total liabilities 13353967287.11 10666084701.23

Owner’s equity:

Share capital 1029923715.00 1029923715.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 2806493904.30 2806493904.30

Less: Treasury shares

Other comprehensive income -19571555.60 -20881462.63

Special reserve 13238702.97 2467205.78

Surplus public reserve 441218691.48 441218691.48

Provision of general risk

Retained profit 1315330385.82 909249365.79

Total owner’ s equity attributable to parent

5586633843.975168471419.72

company

Minority interests 375877528.54 370740249.72

Total owner’ s equity 5962511372.51 5539211669.44

Total liabilities and owner’ s equity 19316478659.62 16205296370.67

Legal Representative: Wu Dinggang

Person in charge of accounting works: Pang Haitao

Person in charge of accounting institute: Yang Jun

2. Consolidated Income statement between the beginning of the year and end of the report period

In RMB

Item Current period Last period

I. Total operating income 19167615833.84 15375374318.73

Including: Operating income 19167615833.84 15375374318.73

Interest income

14CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Insurance gained

Commission charge and commission income

II. Total operating cost 18542771945.98 15220350623.36

Including: Operating cost 16590072964.21 13432282408.89

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 144925448.61 121545023.40

Sales expense 1234618461.71 1082452911.29

Administrative expense 265996948.80 276767176.89

R&D expense 414730110.25 386580716.87

Financial expenses -107571987.60 -79277613.98

Including: Interest expenses 19220542.10 24006944.91

Interest income 138087696.57 112113274.51

Add: other income 58843835.36 78117281.45

Investment income (Loss is listed with “-”) 6121002.68 19970558.55

Including: Investment income on affiliated company and joint

15050230.247410470.62

venture

The termination of income recognition for financial assets

-21839275.77-21020148.10

measured by amortized cost

Exchange income (Loss is listed with “-”)

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

Income from change of fair value (Loss is listed with “-”) -63928733.56 6783043.30

Loss of credit impairment (Loss is listed with “-”) -93458661.22 -61885204.97

Losses of devaluation of asset (Loss is listed with “-”) -19904174.33 -35044901.69

Income from assets disposal (Loss is listed with “-”) 1379107.45 9653201.02

III. Operating profit (Loss is listed with “-”) 513896264.24 172617673.03

Add: Non-operating income 13003292.01 7725531.66

Less: Non-operating expense 3477731.10 4890597.15

IV. Total profit (Loss is listed with “-”) 523421825.15 175452607.54

Less: Income tax expense 4446696.74 -9091804.45

V. Net profit (Net loss is listed with “-”) 518975128.41 184544411.99

(i) Classify by business continuity

1. Net profit from continuing operations (net loss listed with “-”) 518975128.41 184544411.99

2. Net profit from termination of operations (net loss listed with

“-”)

(ii) Classify by ownership

15CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

1.Net profit attributable to owner’s of parent company 498774154.38 162198444.30

2.Minority shareholders’ gains and losses 20200974.03 22345967.69

VI. Net after-tax of other comprehensive income 1562287.57 733928.17

Net after-tax of other comprehensive income attributable to

1309907.03666427.72

owners of parent company

(i) Other comprehensive income items which will not be

reclassified subsequently to profit of loss

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

2.Other comprehensive income under equity method that cannot be

transfer to gain/loss

3.Change of fair value of investment in other equity instrument

4.Fair value change of enterprise's credit risk

5. Other

(ii) Other comprehensive income items which will be reclassified

1309907.03666427.72

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

1309907.03666427.72

financial statements

7.Other

Net after-tax of other comprehensive income attributable to

252380.5467500.45

minority shareholders

VII. Total comprehensive income 520537415.98 185278340.16

Total comprehensive income attributable to owners of parent

500084061.41162864872.02

Company

Total comprehensive income attributable to minority shareholders 20453354.57 22413468.14

VIII. Earnings per share:

(i) Basic earnings per share 0.4843 0.1567

(ii) Diluted earnings per share 0.4843 0.1567

Enterprise combine under the same control in the Period the combined party realized net profit of 0.00 Yuan

before combination and realized 0.00 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

16CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

3. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period

In RMB

Item Current period Last period

I. Cash flows arising from operating activities:

Cash received from selling commodities and providing labor

19690794267.3216406630708.13

services

Net increase of customer deposit and interbank deposit

Net increase of loan from central bank

Net increase of capital borrowed from other financial institution

Cash received from original insurance contract fee

Net cash received from reinsurance business

Net increase of insured savings and investment

Cash received from interest commission charge and commission

Net increase of capital borrowed

Net increase of returned business capital

Net cash received by agents in sale and purchase of securities

Write-back of tax received 545575086.82 526357420.68

Other cash received concerning operating activities 73343301.56 172312892.42

Subtotal of cash inflow arising from operating activities 20309712655.70 17105301021.23

Cash paid for purchasing commodities and receiving labor service 15509311028.48 13083886564.95

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 1443348831.94 1262282443.43

Taxes paid 402056677.82 429330130.27

Other cash paid concerning operating activities 548729081.61 490575495.74

Subtotal of cash outflow arising from operating activities 17903445619.85 15266074634.39

Net cash flows arising from operating activities 2406267035.85 1839226386.84

II. Cash flows arising from investing activities:

Cash received from recovering investment 630000000.00 323322268.35

Cash received from investment income 34088250.87 34407108.44

Net cash received from disposal of fixed intangible and other

4027612.4616653271.93

long-term assets

Net cash received from disposal of subsidiaries and other units

Other cash received concerning investing activities 135312830.48 110063532.63

Subtotal of cash inflow from investing activities 803428693.81 484446181.35

Cash paid for purchasing fixed intangible and other long-term 177289681.51 202669585.70

17CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

assets

Cash paid for investment 1427333334.00 1150000000.00

Net increase of mortgaged loans

Net cash received from subsidiaries and other units obtained

Other cash paid concerning investing activities 73130700.88 66344241.47

Subtotal of cash outflow from investing activities 1677753716.39 1419013827.17

Net cash flows arising from investing activities -874325022.58 -934567645.82

III. Cash flows arising from financing activities

Cash received from absorbing investment 368459272.52

Including: Cash received from absorbing minority shareholders’

368459272.52

investment by subsidiaries

Cash received from loans 1135721085.04 868040918.37

Other cash received concerning financing activities 250002913.48 11404482.95

Subtotal of cash inflow from financing activities 1385723998.52 1247904673.84

Cash paid for settling debts 753250888.06 695000000.00

Cash paid for dividend and profit distributing or interest paying 126145172.10 102939182.56

Including: Dividend and profit of minority shareholder paid by

16677010.6325417858.64

subsidiaries

Other cash paid concerning financing activities 107503081.30 869994470.14

Subtotal of cash outflow from financing activities 986899141.46 1667933652.70

Net cash flows arising from financing activities 398824857.06 -420028978.86

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

1594491.6947997201.13

exchange rate

V. Net increase of cash and cash equivalents 1932361362.02 532626963.29

Add: Balance of cash and cash equivalents at the period-begin 6113222069.76 5840194931.57

VI. Balance of cash and cash equivalents at the period-end 8045583431.78 6372821894.86

Legal Representative: Wu Dinggang

Person in charge of accounting works: Pang Haitao

Person in charge of accounting institute: Yang Jun（ii）The information of the adjusting items related to the financial statements at the beginning of the

year of first implementation due to the first implementation of new accounting standards from 2023

Adjustment description

√Applicable□ Not applicable

Explanation of Adjustment

The Company made the accounting policy change in accordance with the "Accounting Standard for

Bus iness Enterprises Interpretation No. 16" issued by the Ministry of Finance on November 30 2022: "The

deferred income tax related to assets and liabilities arising from a single transaction is not subject to the

accounting treatment of the initial recognition exemption" and chose to implement from January 1 2023.

18CHANGHONG MEILING CO. LTD. THE THIRD QUARTERLY REPORT FOR 2023

Based on the cumulative impact as firstly implemented according to the Interpretation the retained earnings and

other relevant financial statement items at the beginning of the year were adjusted for first implementation

which was as follows:

Consolidated statements

Affected items 2022-12-31 2023-1-1

Adjustment amount（Before adjustment) （After adjustment)Deferred income tax asset 156630537.43 4935157.87 161565695.30

Deferred income tax liability 12750747.30 4758755.78 17509503.08

Surplus reserves 441201471.98 17219.50 441218691.48

Retained profit 909082037.66 167328.13 909249365.79

Minority shareholders’ equity 370748395.26 -8145.54 370740249.72（iii）Auditor’ report

Is the Third Quarterly Report be audited?

□ Yes √No

The Third Quarterly report is not audited.The Board of Directors of Changhong Meiling Co. Ltd.October 242023

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