CHANGHONG MEILING CO. LTD.
SEMI-ANNUAL FINANCIAL REPORT 2020
August 2020
CHANGHONG MEILING CO. LTD
SEMI-ANNUAL FINANCIAL REPORT 2020 (Unaudited)
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual report was not audited.II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO.LTD.
2020-6-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 4906733294.04 5499601030.64
Settlement provisions
Capital lent
Tradable financial assets 2944998.77 7730268.92
Derivative financial assets
Note receivable 1153017551.33 1865165499.50
Account receivable 2559946539.39 1387961981.66
Receivable financing
Accounts paid in advance 50134976.60 25270406.37
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 103323652.86 97241894.80
Including: Interest receivable 21556791.10 9510208.63
Dividend receivable 661434.48
Buying back the sale of financial assets
Inventories 1885850077.90 1460910189.06
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 613160570.20 63604031.96
Total current assets 11275111661.09 10407485302.91
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 80574225.00 88556511.70
Investment in other equity instrument
Other non-current financial assets 45000000.00 45000000.00
Investment real estate 54827443.04 96343760.13
Fixed assets 2269407362.45 2180572946.87
Construction in progress 191470652.98 252494792.31
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 951223966.82 933248463.84
Expense on Research and Development 90129461.14 101078659.57
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 107396151.15 97453178.14
Other non-current asset
Total non-current asset 3790029262.58 3794748312.56
Total assets 15065140923.67 14202233615.47
Current liabilities:
Short-term loans 1510292009.60 1103991045.96
Loan from central bank
Capital borrowed
Trading financial liability 6027595.47 1081534.93
Derivative financial liability
Note payable 3159249003.31 3490271482.40
Account payable 3244631623.09 2343116374.58
Accounts received in advance 425149194.97
Contractual liability 268622617.93
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 183995065.62 196507174.68
Taxes payable 73123338.68 68558391.66
Other account payable 845775655.45 689477603.21
Including: Interest payable 7905522.29 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 306677346.75 1708193.90
Other current liabilities
Total current liabilities 9598394255.90 8319860996.29
Non-current liabilities:
Insurance contract reserve
Long-term loans 292640000.00 401280000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 2291266.30 3016921.44
Long-term wages payable 11962977.24 13774110.61
Accrual liability 144526007.50 166099143.97
Deferred income 176601739.95 179970971.92
Deferred income tax liabilities 4838162.61 6256759.14
Other non-current liabilities
Total non-current liabilities 632860153.60 770397907.08
Total liabilities 10231254409.50 9090258903.37
Owner’s equity:
Share capital 1044597881.00 1044597881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2683806730.48 2684366619.10
Less: Inventory shares
Other comprehensive income -19561433.20 -18931430.36
Reasonable reserve
Surplus public reserve 410786860.20 410786860.20
Provision of general risk
Retained profit 621767268.44 884127743.42
Total owner’ s equity attributable to parent
company
4741397306.92 5004947673.36
Minority interests 92489207.25 107027038.74
Total owner’ s equity 4833886514.17 5111974712.10
Total liabilities and owner’ s equity 15065140923.67 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 2020-6-30 2019-12-31
Current assets:
Monetary funds 3636944969.33 4040632437.18
Tradable financial assets 2815873.60 5967556.00
Derivative financial assets
Note receivable 940802777.23 1722707248.74
Account receivable 1693480573.86 1158563389.33
Receivable financing
Accounts paid in advance 64214047.76 34374932.07
Other account receivable 44773002.24 41964639.42
Including: Interest receivable 20170010.71 7880186.85
Dividend receivable 661434.48
Inventories 413527428.27 339728296.66
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 560819507.73 11930690.86
Total current assets 7357378180.02 7355869190.26
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1827520360.88 1698744114.99
Investment in other equity instrument
Other non-current financial assets 45000000.00 45000000.00
Investment real estate 4066016.69 7314721.80
Fixed assets 1110878369.26 1138092635.67
Construction in progress 136072325.47 106575581.28
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 485361193.07 483887751.05
Research and development costs 53384939.68 56295271.74
Goodwill
Long-term deferred expenses
Deferred income tax assets 85567635.96 77849317.77
Other non-current assets
Total non-current assets 3747850841.01 3613759394.30
Total assets 11105229021.03 10969628584.56
Current liabilities
Short-term borrowings 1263629500.00 1009757944.82
Trading financial liability 5645175.50 1016052.00
Derivative financial liability
Notes payable 1692215768.61 1936867907.42
Account payable 1607267367.02 1497704307.48
Accounts received in advance 147365864.56
Contractual liability 102466608.50
Wage payable 37642063.08 39633867.87
Taxes payable 16665081.43 20427731.13
Other accounts payable 414944985.73 520559494.30
Including: Interest payable 6656384.49 13175235.76
Dividend payable 3866628.25 3579491.94
Liability held for sale
Non-current liabilities due within one year 305000000.00
Other current liabilities
Total current liabilities 5445476549.87 5173333169.58
Non-current liabilities:
Long-term loans 292640000.00 401280000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 11962977.24 13774110.61
Accrued liabilities 137169182.74 158742319.21
Deferred income 68548120.84 67664815.53
Deferred income tax liabilities 742725.60
Other non-current liabilities
Total non-current liabilities 510320280.82 642203970.95
Total liabilities 5955796830.69 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
Special reserve
Surplus reserve 410568694.52 410568694.52
Retained profit 941248607.72 945907861.41
Total owner’s equity 5149432190.34 5154091444.03
Total liabilities and owner’s equity 11105229021.03 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
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 6795860736.99 9133162680.94
Including: Operating income 6795860736.99 9133162680.94
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 7023628758.57 9117690815.20
Including: Operating cost 5753849889.35 7490555537.25
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 55304713.23 80639759.74
Sales expense 923983428.23 1244391756.87
Administrative expense 135469692.92 164393042.70
R&D expense 167889148.89 120048040.86
Financial expense -12868114.05 17662677.78
Including: Interest expenses 45498046.65 57892999.31
Interest income 74784016.69 59401426.37
Add: other income 54852125.20 35311208.60
Investment income (Loss is listed with “-”) 7151886.26 11663963.45
Including: Investment income on affiliated
company and joint venture
209880.54 -8822000.32
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 “-”)
-9724752.12 3364790.24
Loss of credit impairment (Loss is listed
with “-”)
-22270221.19 9545495.95
Losses of devaluation of asset (Loss is listed
with “-”)
-26583248.58 -10615932.01
Income from assets disposal (Loss is listed
with “-”)
-178704.98 -937771.74
III. Operating profit (Loss is listed with “-”) -224520936.99 63803620.23
Add: Non-operating income 3445609.21 2476197.02
Less: Non-operating expense 959554.13 2362526.37
IV. Total profit (Loss is listed with “-”) -222034881.91 63917290.88
Less: Income tax expense -2863011.42 17701260.34
V. Net profit (Net loss is listed with “-”) -219171870.49 46216030.54
(i) Classify by business continuity
1.continuous operating net profit (net loss listedwith ‘-”)
-219171870.49 46216030.54
2.termination of net profit (net loss listed with‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent
company
-210130580.93 54334022.57
2.Minority shareholders’ gains and losses -9041289.56 -8117992.03
VI. Net after-tax of other comprehensive income -1009706.23 -6957381.18
Net after-tax of other comprehensive income
attributable to owners of parent company
-630002.84 -4411347.06
(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
-630002.84 -4411347.06
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
-630002.84 -4411347.06
7.Other
Net after-tax of other comprehensive income
attributable to minority shareholders
-379703.39 -2546034.12
VII. Total comprehensive income -220181576.72 39258649.36
Total comprehensive income attributable to
owners of parent Company
-210760583.77 49922675.51
Total comprehensive income attributable to
minority shareholders
-9420992.95 -10664026.15
VIII. Earnings per share:
(i) Basic earnings per share -0.2012 0.0520
(ii) Diluted earnings per share -0.2012 0.0520
As for the enterprise combined under the same control net profit of 0 Yuan achieved by the merged party before combination w hile 0
Yuan achieved last period
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 3213963833.18 4534756227.34
Less: Operating cost 3022119390.15 4032394105.20
Taxes and surcharge 30342788.85 37629052.43
Sales expenses 110175334.78 338606135.03
Administration expenses 56166016.62 68435172.51
R&D expenses 70182219.29 51474328.29
Financial expenses -15767670.19 8505383.95
Including: interest expenses 37724956.37 42484006.95
Interest income 62490589.12 40313424.26
Add: other income 37653498.87 18499284.82
Investment income (Loss is listed with “-”) 77837668.60 24118870.80
Including: Investment income on affiliated
Company and joint venture
2738300.44 -2832319.70
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 “-”)
-7780805.90 3434946.59
Loss of credit impairment (Loss is listed with “-”) -5196835.46 12788678.01
Losses of devaluation of asset (Loss is listed with
“-”)
-5212993.91 -2792854.97
Income on disposal of assets (Loss is listed with
“-”)
-319589.42 -791312.06
II. Operating profit (Loss is listed with “-”) 37726696.46 52969663.12
Add: Non-operating income 1382900.11 220590.00
Less: Non-operating expense
III. Total Profit (Loss is listed with “-”) 39109596.57 53190253.12
Less: Income tax -8461043.79 1057961.59
IV. Net profit (Net loss is listed with “-”) 47570640.36 52132291.53
(i)continuous operating net profit (net loss listed with‘-”)
47570640.36 52132291.53(ii) termination of net profit (net loss listed with ‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which will not
be reclassified subsequently to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under equity
method that cannot be transfer to gain/loss
3.Change of fair value of investment in other
equity instrument
4.Fair value change of enterprise's credit risk
5. Other
(II) Other comprehensive income items which will be
reclassified subsequently to profit or loss
1.Other comprehensive income under equity
method that can transfer to gain/loss
2.Change of fair value of other debt investment
3.Amount of financial assets re-classify to
other comprehensive income
4.Credit impairment provision for other debt
investment
5.Cash flow hedging reserve
6.Translation differences arising on translation
of foreign currency financial statements
7.Other
VI. Total comprehensive income 47570640.36 52132291.53
VII. Earnings per share:
(i) Basic earnings per share 0.0455 0.0499
(ii) Diluted earnings per share 0.0455 0.0499
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
labor services
6157786632.53 8808462153.80
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 251421150.31 190487049.58
Other cash received concerning operating activities 74202707.99 77246943.31
Subtotal of cash inflow arising from operating activities 6483410490.83 9076196146.69
Cash paid for purchasing commodities and receiving
labor service
5671705593.94 7057460101.03
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 671140486.91 823360788.76
Taxes paid 122903758.87 300839972.73
Other cash paid concerning operating activities 405765609.52 521051283.98
Subtotal of cash outflow arising from operating activities 6871515449.24 8702712146.50
Net cash flows arising from operating activities -388104958.41 373484000.19
II. Cash flows arising from investing activities:
Cash received from recovering investment 185000000.00 1384000000.00
Cash received from investment income 10469068.45 31627554.38
Net cash received from disposal of fixed intangible
and other long-term assets
210271.10 1677670.77
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities 68390962.53 54906734.15
Subtotal of cash inflow from investing activities 264070302.08 1472211959.30
Cash paid for purchasing fixed intangible and other
long-term assets
234361940.15 202145813.88
Cash paid for investment 735280051.17 1254000000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 11141590.61
Subtotal of cash outflow from investing activities 969641991.32 1467287404.49
Net cash flows arising from investing activities -705571689.24 4924554.81
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 1460006749.33 1139670561.25
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 1460006749.33 1139670561.25
Cash paid for settling debts 863778688.78 1614633080.08
Cash paid for dividend and profit distributing or
interest paying
93535991.73 100227663.84
Including: Dividend and profit of minority shareholder
paid by subsidiaries
4796676.00 2274030.00
Other cash paid concerning financing activities 930211.84 25441649.20
Subtotal of cash outflow from financing activities 958244892.35 1740302393.12
Net cash flows arising from financing activities 501761856.98 -600631831.87
IV. Influence on cash and cash equivalents due to
fluctuation in exchange rate
-1424516.77 3541851.94
V. Net increase of cash and cash equivalents -593339307.44 -218681424.93
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 4792468168.07 4265961763.00
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
3141710817.95 4398710855.09
Write-back of tax received 107087533.56 86062145.56
Other cash received concerning operating activities 47856925.29 30523890.39
Subtotal of cash inflow arising from operating activities 3296655276.80 4515296891.04
Cash paid for purchasing commodities and receiving
labor service
2941987065.27 3813992469.51
Cash paid to/for staff and workers 161430366.15 263503252.87
Taxes paid 33476947.97 64988153.11
Other cash paid concerning operating activities 141140278.49 197408073.39
Subtotal of cash outflow arising from operating activities 3278034657.88 4339891948.88
Net cash flows arising from operating activities 18620618.92 175404942.16
II. Cash flows arising from investing activities:
Cash received from recovering investment 150000000.00 1384000000.00
Cash received from investment income 78655551.41 36217554.38
Net cash received from disposal of fixed intangible
and other long-term assets
193300.00 1320000.00
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities 54966416.09 278374247.03
Subtotal of cash inflow from investing activities 283815267.50 1699911801.41
Cash paid for purchasing fixed intangible and other
long-term assets
75044489.91 93641143.54
Cash paid for investment 835280049.17 1260000000.00
Net cash received from subsidiaries and other units
obtained
Other cash paid concerning investing activities 59266363.88
Subtotal of cash outflow from investing activities 910324539.08 1412907507.42
Net cash flows arising from investing activities -626509271.58 287004293.99
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 1058647533.33 909409999.44
Other cash received concerning financing activities 9652301.36 55543648.47
Subtotal of cash inflow from financing activities 1068299834.69 964953647.91
Cash paid for settling debts 614397944.82 1373985025.00
Cash paid for dividend and profit distributing or
interest paying
83234428.66 90576186.82
Other cash paid concerning financing activities 166648785.81 115345079.52
Subtotal of cash outflow from financing activities 864281159.29 1579906291.34
Net cash flows arising from financing activities 204018675.40 -614952643.43
IV. Influence on cash and cash equivalents due to
fluctuation in exchange rate
182509.41 1260766.69
V. Net increase of cash and cash equivalents -403687467.85 -151282640.59
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
3613712969.33 2743102170.46
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
Item
2020 semi-annual
Owners’ equity attributable to the parent Company
Minority
interests
Total owners’
equity Share capital
Other
equity
instrument
Capital reserve
Less:
Invent
ory
shares
Other
comprehensive
income
Reas
onab
le
reser
ve
Surplus reserve
Provisi
on of
genera
l risk
Retained profit
Ot
he
r
Subtotal Pref
erred
stoc
k
Perp
etual
capit
al
secu
rities
Othe
r
I. Balance at the end
of the last year
1044597881.00 2684366619.10 -18931430.36 410786860.20 884127743.42 5004947673.36 107027038.74 5111974712.10
Add: Changes
of accounting policy
Error
correction of the last
period
Enterprise
combine under the
same control
Other
II. Balance at the
beginning of this
year
1044597881.00 2684366619.10 -18931430.36 410786860.20 884127743.42 5004947673.36 107027038.74 5111974712.10
III. Increase/
Decrease in this
year (Decrease is
listed with “-”)
-559888.62 -630002.84 -262360474.98 -263550366.44 -14537831.49 -278088197.93
(i) Total
comprehensive
income
-630002.84 -210130580.93 -210760583.77 -9420992.95 -220181576.72
(ii) Owners’
devoted and
decreased capital
-559888.62 -559888.62 279839.46 -280049.16
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
4. Other -559888.62 -559888.62 279839.46 -280049.16
(III) Profit
distribution
-52229894.05 -52229894.05 -5396678.00 -57626572.05
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or
shareholders)
-52229894.05 -52229894.05 -4796678.00 -57026572.05
4. Other -600000.00 -600000.00
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in the
report period
2. Usage in the
report period
(VI)Others
IV. Balance at the
end of the report
period
1044597881.00 2683806730.48 -19561433.20 410786860.20 621767268.44 4741397306.92 92489207.25 4833886514.17
Last Period
In RMB
Item
2019 semi-annual
Owners’ equity attributable to the parent Company
Minority interests
Total owners’
equity Share capital
Other
equity
instrument
Capital reserve
Less:
Invent
ory
Other
comprehensive
income
Reas
onab
le
Surplus reserve
Provisi
on of
genera
Retained profit
Ot
he
r
Subtotal
Prefe Perpe Other
rred
stock
tual
capit
al
secur
ities
shares reser
ve
l risk
I. Balance at the end
of the last year
1044597881.00 2684369598.46 -18143569.26 400673993.50 904232582.87 5015730486.57 119819558.59 5135550045.16
Add: Changes
of accounting policy
-1023250.12 -2734328.91 -3757579.03 -4385295.55 -8142874.58
Error
correction of the
last period
Enterprise
combine under the
same control
Other
II. Balance at the
beginning of this
year
1044597881.00 2684369598.46 -18143569.26 399650743.38 901498253.96 5011972907.54 115434263.04 5127407170.58
III. Increase/
Decrease in this
year (Decrease is
listed with “-”)
-2979.36 -787861.10 11136116.82 -17370510.54 -7025234.18 -8407224.30 -15432458.48
(i) Total
comprehensive
income
-787861.10 56441479.14 55653618.04 -14209434.27 41444183.77
(ii) Owners’
devoted and
decreased capital
-2979.36 -2979.36 8143349.03 8140369.67
1.Common shares
invested by
shareholders
8140369.67 8140369.67
2. Capital invested
by holders of other
equity instruments
3. Amount reckoned
into owners equity
with share-based
payment
4. Other -2979.36 -2979.36 2979.36
(III) Profit
distribution
11136116.82 -73811989.68 -62675872.86 -2341139.06 -65017011.92
1. Withdrawal of
surplus reserves
11136116.82 -11136116.82
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or
shareholders)
-62675872.86 -62675872.86 -2341139.06 -65017011.92
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to capital
(share capital)
2. Surplus reserves
conversed to capital
(share capital)
3. Remedying loss
with surplus reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in the
report period
2. Usage in the
report period
(VI)Others
IV. Balance at the
end of the report
period
1044597881.00 2684366619.10 -18931430.36 410786860.20 884127743.42 5004947673.36 107027038.74 5111974712.10
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
Item
2020 semi-annual
Share capital
Other equity instrument
Capital public
reserve
Less:
Inventory
shares
Other
comprehensive
income
Reasonabl
e reserve
Surplus reserve Retained profit
Othe
r
Total owners’
equity
Preferre
d stock
Perpetual
capital
securities
Other
I. Balance at the end of the
last year
1044597881.00 2753017007.10 410568694.52 945907861.41 5154091444.03
Add: Changes of
accounting policy
Error correction
of the last period
Other
II. Balance at the
beginning of this year
1044597881.00 2753017007.10 410568694.52 945907861.41 5154091444.03
III. Increase/ Decrease in
this year (Decrease is
listed with “-”)
-4659253.69 -4659253.69
(i) Total comprehensive
income
47570640.36 47570640.36
(ii) Owners’ devoted and
decreased capital
1.Common shares invested
by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(III) Profit distribution -52229894.05 -52229894.05
1. Withdrawal of surplus
reserves
2. Distribution for owners
(or shareholders)
-52229894.05 -52229894.05
3. Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital (share
capital)
2. Surplus reserves
conversed to capital (share
capital)
3. Remedying loss with
surplus reserve
4．Carry-over retained
earnings from the defined
benefit plans
5．Carry-over retained
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the report
period
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
the report period
1044597881.00 2753017007.10 410568694.52 941248607.72 5149432190.34
Last period
In RMB
Item
2019 semi-annual
Share capital
Other equity instrument
Capital public
reserve
Less:
Inventory
shares
Other
comprehensive
income
Reasonabl
e reserve
Surplus reserve Retained profit
Othe
r
Total owners’
equity
Preferre
d stock
Perpetual
capital
securities
Other
I. Balance at the end of
the last year
1044597881.00 2753017007.10 400455827.82 917567933.94 5115638649.86
Add: Changes of -1023250.12 -9209251.03 -10232501.15
accounting policy
Error correction
of the last period
Other
II. Balance at the
beginning of this year
1044597881.00 2753017007.10 399432577.70 908358682.91 5105406148.71
III. Increase/ Decrease in
this year (Decrease is
listed with “-”)
11136116.82 37549178.50 48685295.32
(i) Total comprehensive
income
111361168.18 111361168.18
(ii) Owners’ devoted and
decreased capital
1.Common shares
invested by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(III) Profit distribution 11136116.82 -73811989.68 -62675872.86
1. Withdrawal of surplus
reserves
11136116.82 -11136116.82
2. Distribution for owners
(or shareholders)
-62675872.86 -62675872.86
3. Other
(IV) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital (share
capital)
2. Surplus reserves
conversed to capital (share
capital)
3. Remedying loss with
surplus reserve
4．Carry-over retained
earnings from the defined
benefit plans
5．Carry-over retained
earnings from other
comprehensive income
6. Other
(V) Reasonable reserve
1. Withdrawal in the
report period
2. Usage in the report
period
(VI)Others
IV. Balance at the end of
the report period
1044597881.00 2753017007.10 410568694.52 945907861.41 5154091444.03
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
I. Company profile
Changhong Meiling Co. Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei Meiling
Co. Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993 through Anhui Provincial
Government [Wanzhenmin (1993) No.166] and re-examination of China Securities Regulatory Commission
the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18th 1993
in Shenzhen Stock Exchange. On August 13th 1996 the Company was approved to issue 100 million B
shares to investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory
Commission. The Company went public in Shenzhen Stock Exchange on August 28th 1996.
State-owned Assets Supervision & Administration Commission of the State Council approved such transfers
with Document Guozi Chanquan No.253 in 2007 Reply on Matters of Hefei Meiling Group Holdings
Company Limited Transferring Partial State-owned Ownership Hefei Meiling Group Holdings Limited
(hereinafter referred to as Meiling Group) transferred its holding 37852683 shares in 82852683
state-owned shares of the Company to Sichuan Changhong Electronic Group Co. Ltd (hereinafter referred to
as Changhong Group) other 45000000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred
to as Sichuan Changhong). On Aug 15 2007 the above ownership was transferred and Cleaning Corporation
Limited.
On 27 August 2007 State-owned Assets Supervision & Administration Commission of Anhui ProvincialGovernment replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share MergerReform of Meiling Co. Ltd.” agreed the Company’s ownership split reform plan. The Company made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares and original
Meiling Group made prepayment 3360329 shares for some non-tradable share holders as consideration for
split reform plan.
On 29 May 2008 concerning 34359384 state-owned shares (including 3360329 shares paid for other
non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group the
“Notice of Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59]
issued from State-owned Assets Supervision & Administration Commission of Hefei Municipal agrees to
transfer the above said shares to Hefei Xingtai Holding Group Co. Ltd.(“Xingtai Holding Co.”) for free. On
7 August 2008 the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co. Ltd. held byState-owned shareholders” [GZCQ (2007) No. 752] issued by SASAC agrees the above said transferring.On October 29 2008 Changhong Group Company signed Agreement on Equity Transfer of Hefei Meiling
Co. Ltd with Sichuan Changhong in which 32078846 tradable A-shares with conditional subscription of
the Company (accounting for 7.76% in total shares) held by Changhong Group Company. On 23 December
2008 “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co. Ltd. held by State-ownedshareholders” [GZCQ (2008) No. 1413] issued by SASAC agrees the above said share transferring.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
On 24 December 2010 being deliberated and approved in 32nd Session of 6th BOD and 2nd Extraordinary
Shareholders’ General Meeting of 2010 as well as approval of document [ZJXP (2010) No. 1715] from
CSRC totally 116731500 RMB ordinary shares (A stock) were offering privately to target investors with
issue price of RMB 10.28/share. Capital collecting amounting to RMB 1199999820 after issuing expenses
RMB 22045500 deducted net capital collected amounting to RMB 1177954320 and paid-in capital
(share capital) increased RMB 116731500 with capital reserve (share premium) RMB 1061106088.5
increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shinwing CPA Co. Ltd.
On 20 June 2011 the general meeting of the Company considered and approved the 2010 profit distribution
plan namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held
by shareholders to all shareholders based on the total share capital of 530374449 shares as of 31 December
2010. The total share capital of the Company upon profit distribution increased to 636449338 shares. The
capital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification report
WHSZDKYZ (2011) No.141.
On 26 June 2012 the general meeting of the Company considered and approved the 2011 profit distribution
and capitalization of capital reserve plan namely to distribute cash dividends of RMB0.5 (tax included) plus
two shares for every ten shares to all shareholders capitalized from capital reserve based on the total share
capital of 636449338 shares as of 31 December 2011. The total share capital of the Company upon
implementation of capitalization of capital reserve increased to 763739205 shares from 636449338 shares
and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ (2012)
No.093.
On November 18 2015 considered and approved by the 12th Session of the 8th BOD of the company and the
first extraordinary general meeting in 2016 and approved by the document of China Securities Regulatory
Commission [CSRC License No. (2016) 1396] “Reply to the approval of non-public offering of shares ofHefei Meiling Co. Ltd.” the company has actually raised funds of 1569999998.84 Yuan by non-public
offering of no more than 334042553 new shares at face value of 1 Yuan per share and with issue price no
less than RMB 4.70 per share after deducting the issue costs of 29267276.08 Yuan the net amount of
raised funds is 1540732722.76 Yuan the increased paid-in capital (share capital) of 280858676.00 Yuan
increased capital reserve (share premium) of 1259874046.76 Yuan. This capital increase has been verified
by No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants
(LLP).
Ended as 30 June 2020 total share capital of the Company amounting to 1044597881shares with ordinary
shares in full. Among which 881733881 shares of A-share accounting 84.41% in total shares while B-share
with 162864000 shares accounting 15.59% in total shares. Detail share capital as:
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Type of stock Quantity Proportion
(1)Restricted shares 10472676 1.00%
1. State-owned shares
2. State-owned legal person’s shares 1653735 0.16%
3. Other domestic shares 7551521 0.72%
Including: Domestic legal person’s shares 3978329 0.38%
Domestic natural person’s shares 3573192 0.34%
4. Foreign shares 1267420 0.12%
Including: Overseas legal person’s shares
Overseas natural person’s shares 1267420 0.12%
(2)Unrestricted shares 1034125205 99.00%
1. RMB Ordinary shares 872528625 83.53%
2. Domestically listed foreign shares 161596580 15.47%
3. Overseas listed foreign shares
4. Others
Total shares 1044597881 100.00%
The Company belongs to the manufacture of light industry and engaged in the production and sale of
refrigerator freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;
Address: No.2163 Lianhua Road Economy and Technology Development Zone Hefei City; Legal
Representative: Wu Dinggang; register capital (paid-in capital): RMB 1044597881; type of company:
limited liability company(joint venture and listed of Taiwan Hong Kong and Macao) Business Scope: R&D
manufacture and sales of cooling apparatus air-conditioner washing machine water heater kitchenware
home decoration bathroom lamps & lanterns household & similar appliance injection plastic machine of
computer controlling plastic products metalwork packaging products and decorations as well as the
installation and technical consultant services. Business of self-produced products technology export and
import-export of the raw& auxiliary materials machinery equipment instrument and technology; department
sales and transportation (Excluding dangerous chemicals) computer network system integration intelligent
product system integration software development and technical information services development
production sales and service of automation equipment and electronic products sales services of cold chain
transport vehicles and refrigerator and freezer van development production sales and service of cold chain
insulation boxes research and development production sales and service of cold storage commercial
freezer chain display cabinets commercial cold chain products. (Projects that require approval in accordance
with the law can only be operated after approval by relevant departments)
II. Scope of consolidated financial statement
In the reporting period the consolidated financial statements of the Company cover 35 subsidiaries
including Sichuan Changhong Air-conditioner Co. Ltd Zhongshan Changhong Electric Co. Ltd. and
Zhongke Meiling Cryogenic Technology Co. Ltd. etc. Compared with the previous year during the reporting
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
period subsidiary-Guangxi Huidian Household Electrical Appliances Co. Ltd was out of the consolidate
scope due to liquidation cancellation. Found more in “VII. Changes in the scope of merger” and “VIII.
Equity in other entities” carry in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions and
proceedings and relevant regulation of Accounting Standards for Enterprise released by the Ministry of
Finance and was on the basis of sustainable operation and the accounting policy and estimation stated in the
“IV. Significant Accounting Policy and Accounting Estimation”
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting and
prepared the financial statement on basis of going concern is reasonable.IV. Significant Accounting Policy and accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard for
Enterprise and reflects the financial condition operational achievements and cash flow of the Company
effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Operation cycle
Operation cycle of the Company was 12 months and it is the standard of flow classification for assets and
liabilities.
4. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5. Accountant arrangement method of business combination under common control and not under common
control
As acquirer the Company measures the assets and liabilities acquired through business combination under
common control at their carrying values as reflected in the consolidated financial statement of the ultimate
controller as of the combination date. Capital reserve shall be adjusted in respect of any difference between
carrying value of the net assets acquired and carrying value of the combination consideration paid. In case
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
that capital reserve is insufficient to offset the Company would adjust retained earnings.The acquiree’s net identifiable assets liabilities or contingent liabilities acquired through business
combination not under common control shall be measured at fair value as of the acquisition date. The cost of
combination represents the fair value of the cash or non-cash assets paid liabilities issued or committed and
equity securities issued by the Company as at the date of combination in consideration for acquiring the
controlling power in the acquiree together with the sum of any directly related expenses occurred during
business combination(in case of such business combination as gradually realized through various
transactions the combination cost refers to the sum of each cost of respective separate transaction). Where
the cost of the combination exceeds the acquirer’s interest in the fair value of the acquirer’s identifiable net
assets acquired the difference is recognized as goodwill; where the cost of combination is lower than the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets the Company shall firstly make
further review on the fair values of the net identifiable assets liabilities or contingent liabilities acquired as
well as the fair value of the non-cash assets portion of combination consideration or the equity securities
issued by the Company. In case that the Company finds the cost of combination is still lower than the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets after such further review the
difference is recognized in non-operating income for the current period when combination occurs.
6. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated financial
statements.
Any difference arising from the inconformity of accounting year or accounting policies between the
subsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners’ equity of
subsidiary not attributable to parent company and current net gains and losses other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests minority interests other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.
As for subsidiary acquired through business combination under common control its operating results and
cash flow will be included in consolidated financial statement since the beginning of the period when
combination occurs. When preparing comparative consolidated financial statement the relevant items in
previous years financial statement shall be adjusted as if the reporting entity formed upon combination has
been existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions which
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
eventually formed business combination the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example as for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination adjustments shall be made as if the current status had been
existing when the ultimate controller commenced control in connection of preparing consolidated financial
statement; in connection with preparing comparative statement the Company shall consolidate the relevant
assets and liabilities of the acquiree into the Company’s comparative consolidated financial statement to the
extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate
controller and the net assets increased due to combination shall be used to adjust relevant items under
owners’ equity in comparative statement. In order to prevent double computation of the value of the
acquiree’s net assets the relevant profits and losses other comprehensive income and change of other net
assets recognized during the period from the date when the Company acquires original equity interests and
the date when the Company and the acquiree are all under ultimate control of the same party (whichever is
later) to the date of combination in respect of the long-term equity investment held by the Company before
satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
losses in the period as the comparative financial statement involves respectively.
As for subsidiary acquired through business combination not under common control its operating results and
cash flow will be included in consolidated financial statement since the Company obtains controlling power.When preparing consolidated financial statement the Company shall adjust the subsidiary’s financial
statement based on the fair value of the various identifiable assets liabilities or contingent liabilities
recognized as of the acquisition date.
As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example as for equity interests of the investee not under common control acquired through various
transactions which eventually formed business combination when preparing consolidated financial statement
the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair
value as of the acquisition date and any difference between the fair value and carrying value is included in
current investment income. in case that the equity interests in acquiree held by the Company before the
relevant acquisition date involves other comprehensive income at equity method and change of other owners’
equity (other than net gains and losses other comprehensive income and profit distribution) then the equity
interests would transfer to investment gains and losses for the period which the acquisition date falls upon.The other comprehensive income arising from change of the net liabilities or net assets under established
benefit scheme as acquiree’s re-measured such scheme is excluded.The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without
losing control rights over the subsidiary the difference between the proceeds from disposal of interests and
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case
capital reserve is not sufficient to offset the difference retained earnings will be adjusted.
As for disposal of part equity investment which leads to losing control over the investee the Company would
re-measure the remaining equity interests at their fair value as of the date when the Company loses control
over the investee when preparing consolidated financial statement. The sum of consideration received from
disposal of equity interest and fair value of the remaining equity interest less the net assets of the original
subsidiary attributable to the Company calculated based on the original shareholding proportion since the
acquisition date or the date then consolidation commences is included in investment gains and losses for the
period when control is lost meanwhile to offset goodwill. Other comprehensive income related to equity
interest investment in original subsidiaries is transferred into current investment gains and losses upon lost of
control.If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss of
control and is a package deal the accounting treatment of these transactions should be dealt with as one
transaction of disposal of the subsidiary until loss of control. However before the Company loses total
control of the subsidiary the differences between the actual disposal price and the share of the net assets of
the subsidiary disposed of in every transaction should be recognized as other comprehensive income in the
consolidated financial statements and transferred to profit or loss when losing control.
7. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for
jointly controlled entity the Company determines the assets held and liabilities assumed separately as a party
to the jointly controlled entity recognizes such assets and liabilities according to its proportion and
recognizes relevant income and expense separately under relevant agreement or according to its proportion.
As for asset transaction relating to purchase and sales with the jointly controlled entity which does not
constitute business activity part of the gains and losses arising from such transaction attributable to other
participators of the jointly controlled entity is only recognized.
8. Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents are short-term highly liquid investments held by the Group that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value including but not limited to the followings which meet the aforesaid conditions: debt investment
matured within three months upon the acquisition date bank time deposit which can be early withdrew by
serving a notice and transferrable deposit receipt etc. for time deposit which can not be used for payment at
any time it would be note recognized as cash; while if can be used for such purpose it would be recognized
as cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cash
equivalents and those less than three months are recognized as cash equivalents.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
9. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business the Company converts the foreign currency amount into RMB amount
pursuant to the spot exchange rate as of the business day. As at the balance sheet date monetary items
expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance
sheet date. The conversion difference occurred is recorded into prevailing gains and losses other than the
disclosure which is made according to capitalization rules for the exchange difference occurred from the
special foreign currency borrowings borrowed for constructing and producing the assets satisfying condition
of capitalization. As for the foreign currency non-monetary items measured by fair value the amount is then
converted into RMB according to the spot exchange rate as of the confirmation day for fair value. And the
conversion difference occurred during the procedure is recorded into prevailing gains and losses directly as
change of fair value. As for the foreign currency non-monetary items measured by historical cost conversion
is made with the spot exchange rate as of the business day with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign
currency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”
conversion is made pursuant to the spot exchange rate of business day; income and expense items in income
statement then are also converted pursuant to the spot exchange rate of transaction day. Difference arising
from the aforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rate
as of the occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount
of cash affected by exchange rate movement shall be listed separately in cash flow statement.
10. Financial instrument
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.
The financial assets and financial liabilities are measured at fair value on initial recognition. For the financial
assets and liabilities measured by fair value and with variation reckoned into current gains/losses the related
transaction expenses are directly included in current gains or losses; for other types of financial assets and
liabilities the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferring
a liability in an orderly transaction that occurs on the measurement date. For a financial instrument having an
active market the Company uses the quoted prices in the active market to determine its fair value.Quotations in an active market refer to prices that are readily available from exchanges brokers industry
associations pricing services etc. and represent the prices of market transactions that actually occur in an
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
arm's length transaction. If there is no active market for a financial instrument the Company uses valuation
techniques to determine its fair value. Valuation techniques include reference to prices used in recent market
transactions by parties familiar with the situation and through voluntary trade and reference to current fair
values of other financial instruments that are substantially identical discounted cash flow methods and
option pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured
at amortized cost; the financial assets measured at fair value and whose changes are included in other
comprehensive income; and the financial assets measured by fair value and with variation reckoned into
current gains/losses. The classification of financial assets depends on the business model that the Group's
enterprises manage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the
following conditions: The group's business model for managing the financial assets is to collect contractual
cash flows; the contractual terms of the financial assets stipulate that cash flow generated on a specific date is
only paid for the principal and interest based on the outstanding principal amount. For such financial assets
the effective interest method is used for subsequent measurement according to the amortized cost and the
gains or losses arising from amortization or impairment are included in current profits and losses. Such
financial assets mainly include monetary funds notes receivable accounts receivable other receivables debt
investment and long-term receivables and so on. The Group lists the debt investment and long-term
receivables due within one year (including one year) from the balance sheet date as non-current assets due
within one year and lists the debt investment with time limit within one year (including one year) when
acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included in
other comprehensive income when they also meet the following conditions: The Group's business model for
managing the financial assets is targeted at both the collection of contractual cash flows and the sale of
financial assets; the contractual terms of the financial asset stipulate that the cash flow generated on a
specific date is only the payment of the principal and the interest based on the outstanding principal amount.
For such financial assets fair value is used for subsequent measurement. The discount or premium is
amortized by using the effective interest method and is recognized as interest income or expenses. Except the
impairment losses and the exchange differences of foreign currency monetary financial assets are recognized
as the current profits and losses the changes in the fair value of such financial assets are recognized as other
comprehensive income until the financial assets are derecognized the accumulated gains or losses are
transferred to the current profits and losses. Interest income related to such financial assets is included in the
current profit and loss. Such financial assets are listed as other debt investments other debt investments due
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
within one year (including one year) from the balance sheet date are listed as non-current assets due within
one year; and other debt investments with time limit within one year (including one year) when acquired are
listed as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/losses
Financial assets except for the above-mentioned financial assets measured at amortized cost and financial
assets measured at fair value and whose changes are included in other comprehensive income are classified
as financial assets measured at fair value and whose changes are included in current profits and losses which
adopt fair value for subsequent measurement and all changes in fair value are included in current profits and
losses. The Group classifies non-trading equity instruments as financial assets measured at fair value and
whose changes are included in current profits and losses. Such financial assets are presented as Tradable
financial assets and those expire after more than one year and are expected to be held for more than one year
are presented as other non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses the Group performs impairment treatment on financial assets
measured at amortized cost and financial assets measured at fair value and whose changes are included in
other comprehensive income and recognize the provisions for loss.
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received that is the present value of all cash shortages. Among them for the purchase or source of financial
assets that have suffered credit impairment the Company discounts the financial assets at the actual interest
rate adjusted by credit.The Group considers all reasonable and evidenced information including forward-looking information
based on credit risk characteristics. When assessing the expected credit losses of receivables they are
classified according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components
and not including significant financing components) the Group measures the provisions for loss based on the
amount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted
letters of credit) of financial institutions in notes receivable and accounts receivable and related party
payments (related parties under the same control and significant related parties); dividends receivable
interest receivable reserve funds investment loans cash deposits (including warranty) government grants
(including dismantling subsidies) in other receivables and receivables with significant financing components
(i.e. long-term receivables);
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
②Evaluate expected credit losses based on customer credit characteristics and ageing combinations: in
addition to evaluating expected credit losses based on individual items the Group evaluates the expected
credit losses of notes receivable and accounts receivable and other receivables financial instruments based on
customer credit characteristics and ageing combinations.The Group considers all reasonable and evidenced information including forward-looking information when
assessing expected credit losses. When there is objective evidence that its customer credit characteristics and
ageing combination cannot reasonably reflect its expected credit loss the current value of the expected future
cash flow is measured by a single item and the cash flow shortage is directly written down the book balance
of the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial
instruments are impaired such as the loan commitments and financial guarantee contracts that are not
measured at fair value through profit or loss financial assets measured at fair value and whose changes are
recognized in other comprehensive income; other financial assets measured at amortized cost (such as other
current assets other non-current financial assets etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract
rights of collecting cash flow of the financial assets is terminated; ②The financial assets has already been
transferred and the Company has transferred almost all risks and remunerations of financial assets ownership
to the transferee; ③The financial assets has been transferred even though the Company has neither
transferred nor kept almost all risks and remunerations of financial assets ownership the Company has given
up controlling the financial assets.If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership nor given up controlling the financial assets then confirm the relevant financial assets according
to how it continues to involve into the transferred financial assets and confirm the relevant liabilities
accordingly. The extent of continuing involvement in the transferred financial assets refers to the level of risk
arising from the changes in financial assets value faced by the enterprise.If the entire transfer of financial assets satisfies the demand for derecognition reckon the balance between
the book value of the transferred financial assets and the sum of consideration received from transfer and
fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the current
profits and losses.If part transfer of financial assets satisfies the demand for derecognition apportion the integral book value of
the transferred financial assets between the derecognized parts and the parts not yet derecognized according
to each relative fair value and reckon the balance between the sum of consideration received from transfer
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that
should be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the
current profits and losses.When the Group sells financial assets adopting the mode of recourse or endorses and transfers its financial
assets it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assets
have been transferred. If almost all the risks and rewards of ownership of the financial assets have been
transferred to the transferee the financial assets shall be derecognized; if almost all the risks and rewards of
ownership of the financial assets are retained the financial assets shall not be derecognized; if almost all the
risks and rewards of ownership of the financial assets are neither transferred nor retained continue to judge
whether the company retains control over the assets and conduct accounting treatment according to the
principles described in the preceding paragraphs.
(5) Category and measurement of financial liability
Financial liability is classified into financial liability measured by fair value and with variation reckoned into
current gains/losses and other financial liability at initially measurement. Financial liability shall be initially
recognized and measured at fair value. As for the financial liability measured by fair value and with variation
reckoned into current gains/losses relevant trading costs are directly reckoned into current gains/losses while
other financial liability shall be reckoned into the initial amount recognized.① the financial liability measured by fair value and with variation reckoned into current gains/losses
The conditions to be classified as trading financial liabilities and as financial liabilities designated to be
measured at fair value and whose changes are included in current profit or loss at the initial recognition are
consistent with the conditions to be classified as Tradable financial assets and as financial assets designated
to be measured at fair value and whose changes are included in current profit or loss at the initial recognition.
Financial liabilities measured at fair value and whose changes are included in current profit or loss are
subsequently measured at fair value and the gain or loss arising from changes in fair value and the dividends
and interest expense related to these financial liabilities are included in current profit or loss.② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link to
the equity instruments that are not quoted in an active market and whose fair value cannot be reliably
measured and the subsequent measurement is carried out in accordance with the cost. Other financial
liabilities are subsequently measured at amortized cost by using the effective interest method. The gain or
loss arising from derecognition or amortization is included in current profit or loss.
③Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair value
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
through profit or loss is initially recognized at fair value and its subsequent measurement is carried out by
the higher one between the amount confirmed in accordance with the Accounting Standards for Business
Enterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulated
amortization amount determined in accordance with the principle of Accounting Standards for Business
Enterprises No. 14—Revenue from the initial recognition amount.
(6) Termination of recognition of financial liability
The financial liability or part of it can only be terminated for recognized when all or part of the current
obligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an
agreement to replace the existing financial liabilities with new financial liabilities and if the contract terms
of the new financial liabilities are substantially different from the existing financial liabilities terminated for
recognized the existing financial liabilities and at the same time recognize the new financial liabilities. If the
financial liability is terminated for recognized in whole or in part the difference between the carrying
amount of the part that terminated for recognized and the consideration paid (including the transferred
non-cash assets or the assumed new financial liabilities) is included in current profits and losses.
(7) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the
financial assets the balance-out sum between the financial assets and liabilities is listed in the balance sheet.In addition the financial assets and liabilities are listed in the balance sheet without being balanced out.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract and are
subsequently measured at fair value. Except for derivatives that are designated as hedging instruments and
are highly effective in hedging the gains or losses arising from changes in fair value will be determined
based on the nature of the hedging relationship in accordance with the requirements of the hedge accounting
and be included in the period of profit and loss other changes in fair value of derivatives are included in
current profits and losses. For a hybrid instrument that includes an embedded derivative if it is not
designated as a financial asset or financial liability measured at fair value and whose changes are included in
current profit or loss the embedded derivative does not have a close relationship with the main contract in
terms of economic characteristics and risks and as with embedded derivatives if the tools existing separately
conform to the definition of the derivatives the embedded derivatives are split from the hybrid instruments
and are treated as separate derivative financial instruments. If it is not possible to measure the embedded
derivative separately at the time of acquisition or subsequent balance sheet date the whole hybrid instrument
is designated as a financial asset or financial liability measured at fair value and whose changes are included
in current profits and losses.
(9) Equity instrument
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the
deduction of all liabilities in the Group. The Company issues (including refinancing) repurchases sells or
cancels equity instruments as movement of equity. No fair value change of equity instrument would be
recognized by the Company. Transaction costs associated with equity transactions are deducted from equity.The Group's various distributions to equity instrument holders (excluding stock dividends) reduce
shareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials stock goods; work in process self-made
semi-finished product materials consigned to precede low-value consumption goods goods in transit goods
in process mould and engineering construction etc.Perpetual inventory system is applicable to inventories. For daily calculation standard price is adopted for
raw materials low-value consumption goods and stock goods. Switch-back cost of the current month is
adjusted by distribution price difference at the end of the month the dispatched goods will share the cost
differences of inventory while in settlement the business income; and low-value consumption goods is
carried forward at once when being applied for use and the mould shall be amortized within one year after
receipt.Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value. The
provision for inventory depreciation shall be drawn from the difference between the book cost of a single
inventory item and its net realizable value and the provision for inventory depreciation shall be recorded into
the current profit and loss.
12. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary investment in
associates and investment in joint-ventures.
For long-term equity investments acquired through business combination under common control the initial
investment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of the
combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying
amount of net assets of the acquiree as of the combination date is negative the investment cost of long-term
equity investment shall be zero. For long-term equity investment acquired through business combination not
under common control the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination there is also a king of
long-term equity investment acquired through cash payment for which the actual payment for the purchase
shall be investment cost; If Long-term equity investments are acquired by issuing equity securities fair value
of issuing equity investment shall be investment cost; for Long-term equity investments which are invested
by investors the agreed price in investment contract or agreement shall be investment cost; and for long-term
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
equity investment which is acquired through debt reorganization and non-monetary assets exchange
regulations of relevant accounting standards shall be referred to for confirming investment cost.The Company adopts cost method for investment in subsidiaries makes calculation for investments in
joint-ventures and associates by equity method.When calculated by cost method long-term equity investment is priced according to its investment cost and
cost of the investment is adjusted when making additional investment or writing off investment; When
calculated by equity method current investment gains and losses represent the proportion of the net gains
and losses realized by the invested unit in current year attributable to or undertaken by the investor. When the
Company is believed to enjoy proportion of net gains and losses of invested unit gains and losses
attributable to the Company according to its shareholding ratio is to computer out according to the
accounting policy and accounting period of the Company on the basis of the fair value of various
recognizable assets of the invested unit as at the date of obtaining of the investment after offset of gains and
losses arising from internal transactions with associates and joint-ventures and finally to make confirmation
after adjustment of net profit of the invested unit. Confirmation on gains and losses from the long-term
equity investment in associates and joint-ventures held by the Company prior to the first execution day could
only stand up with the precedent condition that debit balance of equity investment straightly amortized
according to its original remaining term has already been deducted if the aforementioned balance relating to
the investment do exist.In case that investor loses joint control or significant influence over investee due to disposal of part equity
interest investment the remaining equity interest shall be calculated according to Accounting Standards for
Business Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the
fair value of the remaining equity interest as of the date when loss of joint control or significant influence and
the carrying value is included in current gains and losses. Other comprehensive income recognized in respect
of the original equity interest investment under equity method should be treated according to the same basis
which the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity
method calculation; and also switches to cost method for calculating the long-term equity investments which
entitles the Company to have conduct control over the invested units due to its additional investments; and
switches to equity method for calculating the long-term equity investments which entitles the Company to
conduct common control or significant influence while no control over the invested units due to its
additional investments or the long-term equity investments which entitles the Company with no control over
the invested units any longer while with common control or significant influence.When disposing long-term equity investment the balance between it carrying value and effective price for
obtaining shall be recorded into current investment income. When disposing long-term equity investment
which is calculated by equity method the proportion originally recorded in owners’ equity shall be
transferred to current investment income according to relevant ratio except for that other movements of
owners’ equity excluding net gains and losses of the invested units shall be recorded into owners’ equity.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
13. Investment real estate
The investment real estate of the Company includes leased houses and buildings and is accounted value by
its cost. Cost of purchased-in investment real estate consists of payment for purchase relevant taxes and
other expenditure which is attributable to the assets directly; while cost of self-built investment real estate is
formed with all necessary expenditures occurred before construction completion of the assets arriving at the
estimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided
with average service life method pursuant to the predicted service life and net rate of salvage value. The
predicted service life and net rate of salvage value and annual depreciation are listed as follows:
Category Depreciation term
Predicted rate of salvage
value
Depreciation rate per
annual
House and buildings 30-40 years 4%-5% 2.375%-3.20%
When investment real estate turns to be used by holders it shall switch to fixed assets or intangible assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital the fixed assets or intangible assets shall switch to investment real estate commencing
from the date of such turning. In situation of switch the carrying value before the switch shall be deemed as
the credit value after the switch.When investment real estate is disposed or out of utilization forever and no economic benefit would be
predicted to obtain through the disposal the Company shall terminate recognition of such investment real
estate. The amount of income from disposal transfer discarding as scrap or damage of investment real estate
after deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
14. Fixed assets
Fixed assets of the Company represent the tangible assets and assets package: held by the Company for
purpose of producing commodities providing labor service leasing or operational management service life
exceeds one year and unit price exceeds RMB 2000. Including four categories of houses and buildings
machinery equipment transportation equipment and other equipment
Their credit value is determined on the basis of the cost taken for obtaining them. Of which cost of
purchased-in fixed assets include bidding price and import duty and relevant taxes and other expenditure
which occurs before the fixed assets arrive at the state of predicted utilization and which could be directly
attributable to the assets; while cost of self-built fixed asset is formed with all necessary expenditures
occurred before construction completion of the assets arriving at the estimated utilization state; credit value
of the fixed assets injected by investors is determined based on the agreed value of investment contracts or
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
agreements while as for the agreed value of investment contracts or agreements which is not fair it shall
take its fair value as credit value; and for fixed assets which are leased in through finance leasing credit
value is the lower of fair value of leased assets and present value of minimized leasing payment as at the
commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For
those meeting requirements for recognition of fixed assets they would be accounted as fixed asset cost; and
for the part which is replaced recognition of its carrying value shall cease; for those not meeting
requirements for recognition of fixed assets they shall be accounted in current gains and losses as long as
they occur. When fixed asset is disposed or no economic benefit would be predicted to obtain through
utilization or disposal of the asset the Company shall terminate recognition of such fixed asset. The amount
of income from disposal transfer discarding as scrap or damage of fixed asset after deducting the asset’ s
carrying value and relevant taxation shall be written into current gains and losses.The Company withdraws depreciation for all fixed assets except for those which have been fully depreciated
while continuing to use. It adopts average service life method for withdrawing depreciation which is treated
respectively as cost or current expense of relevant assets according to purpose of use. The depreciation term
predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
No. Category Depreciation term
Predicted rate of salvage
value
Depreciation rate per
year
1 House and buildings 30-40 years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14 years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12 years 4%-5% 7.92%-19.20%
4 Other equipment 8-12 years 4%-5% 7.92%-12.00%
The Company makes re-examination on predicted service life predicted rate of salvage value and
depreciation method at each year-end. Any change will be treated as accounting estimation change.
15. Construction in progress
Construction in progress is measured with effective cost. Self-operated constructions projects are measured
with direct materials direct salaries and direct construction expense; construction projects undertaken by
external are measured with the engineering payment payable; and engineering cost (income abatement) of
equipment-installation projects is confirmed with consideration of value of the equipment installation fee
and expenditure arising from trial operation of the projects. Borrowing expense and exchange gains and
losses which should be capitalized are also included in cost of construction in progress.
16. Borrowing expense
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Borrowing expenses include interest expense amortization of discount or premium auxiliary expenses and
exchange difference due to borrowing in foreign currency. The borrowing expense which could be directly
attributable to purchase or production of assets satisfying capitalization condition starts capitalization when
capital expenditure and borrowing expense occur and when necessary purchase or production conducted for
promoting assets to reach the predicted available-for-use or available-for-sale state; and capitalization shall
cease when purchased or produced assets satisfying capitalization condition have reached the predicted
available-for-use or available-for-sale state. Other borrowing expense is recognized as expense during the
occurrence period.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in current
period after deduction of the interest income arising from unutilized borrowing capital which is saved in
banks or deduction of investment income obtained from temporary investment; For recognization of
capitalized amount of common borrowing it equals to the weighted average of the assets whose accumulated
expense or capital disburse is more than common borrowing times capitalization rate of occupied common
borrowing. Capitalization rate is determined according to weighted average interest rate of common
borrowing.
Assets satisfying capitalization principle generally refer to fixed assets investment real estate and inventories
which can only arrive at predicted available-for-use and available-for-sale state after quite a long time
(generally over one year) in purchase or production activities.If abnormal interruption happens during purchase or production of assets satisfying capitalization principle
and the interruption lasts over 3 months the capitalization for the borrowing expense shall pause until the
purchase or production restarts.
17. Intangible assets
The Company holds intangible assets including land use right trademark patent technology and non-patent
technology. Intangible assets are measured according to the effective costs paid for obtaining the assets. For
those intangible assets purchased in by the Company their effective cost consist of actual payment and
relevant other expenditure; for the intangible assets input by investors effective cost is determined according
to the value agreed in investment contracts and agreements while if the agreed value is not fair then
effective value is confirmed according to fair value.Land use right is averagely amortized according to its transfer term commencing from the sate of transfer;
trademark use-rights averagely amortized by 10 years; patent technology non-patent technology and other
intangible assets is averagely amortized according to the shortest of their predicted service life beneficial
term concluded by contract and effective term regulated by laws. Amortization amount is recorded in assets
cost and current gains and losses relevant to beneficial objectives.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Re-examination on predicted service life and amortization method of the intangible assets which have limited
service life shall be conducted at the end of each year. If changed it would be treated as change of
accounting estimation. Re-examination on predicted service life of intangible assets which have uncertain
service life shall be conducted. For any evidence proving that service life of intangible assets is limited then
the service life shall be estimated and the Company shall make amortization within the predicted service life
period.
18. Research and development
As for expenditure for research and development the Company classifies it into expenditure on research
phase and development phase based on nature of the expenditure and that whether the final intangible assets
formed by research & development is of great uncertainty. Expenditure arising during research should be
recorded in current gains and losses upon occurrence; expenditure arising during development is confirmed
as intangible assets when satisfying the following conditions:
(1) Completions of the intangible assets make it available for application or sell in technology;
(2) Equipped with plan to complete the intangible asset and apply or sell it;
(3) There is market for products produced with this intangible asset or the intangible asset itself;
(4) Have sufficient technology financial resource and other resources to support development of the
intangible assets and have ability to apply or sell the assets;
(5) Expenditure attributable to development of the intangible assets could be reliable measured.
Expenditure arising during development not satisfying the above conditions shall be recorded in current
gains and losses upon occurrence. Development expenditure which had been recorded in gains and losses in
previous period would not be recognized as assets in later period. Expenditure arising during development
phase which has been starting capitalization is listed in balance sheet as development expenditure and
transferred to intangible assets since the project reaches at predicted utilization state.
19. Impairment of non-financial long-term assets
As at each balance sheet date the Company has inspection on long-term equity investment fixed assets
construction in process and intangible assets with limited service life. When the following indications appear
assets may be impaired and the Company would have impairment test. As for goodwill and intangible assets
which have uncertain service life no matter there is impairment or not impairment test shall be conducted at
the end of every year. If it is hard to make test on recoverable amount of single asset test is expected to make
on the basis of the assets group or assets group portfolio where such asset belongs to.
After impairment test if the carrying value exceeds the recoverable amount of the asset the balance is
recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized it
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
couldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of
fair value of assets net disposal expense and present value of predicted cash flow of the asset.Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period the drop scope is obviously greater than the predicted
drop due to move-on of times or normal utilization;
(2) Economy technology or law environment where enterprise operates or market where asset is located will
have significant change in current or recent periods which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period which
brings influence in calculating discount rate of present value of predicted future cash flow of assets which
leads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged;
(5) Asset has been or will be keep aside terminating utilization or disposed advance;
(6) Internal report of enterprise shows that economic performance of asset has been or will be lower than
prediction such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatly
lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
20. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no common
control exceeding the attributable part or fair value of recognizable net assets of party invested or purchased
(obtained through business combination) as of acquisition day or purchase day.Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill
relating to associates and joint-ventures is included in carrying value of long-term equity investment.
21. Long-term deferred expenses
Long-term deferred expenses of the Company refer to the expense which has been paid out while should be
amortized from the current period and periods thereafter with amortization term over one year (excluding
one year). Such expense is averagely amortized during the beneficial period. If such long-term deferred
expense could not bring benefit to following accounting periods the unamortized value of the item shall be
fully transferred to current gains and losses.
22. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
employees or compensation to the termination of employment relationship such as short-term wages
post-employment benefits compensation for the termination of employment relationship and other long-term
employee welfare.Short-term remuneration includes: staff salary bonus allowances and subsidies staff benefits social
insurances like medical insurance work-related injury insurance and maternity insurance housing fund
labor union funds and staff education funds short-term paid absence of duty short-term profit sharing
scheme and non-monetary benefits as well as other short-term remuneration. During the accounting period
when staff provides services the short-term remuneration actually occurred is recognized as liabilities and
shall be included in current gains and losses or related asset costs according to the beneficial items.Retirement benefits mainly consist of basic pension insurance unemployment insurance and early-retirement
benefits etc. retirement benefit scheme represents the agreement reached by the Company and its employees
in respect of retirement benefits or the rules or regulations established by the Company for providing
retirement benefits to employees. In particular defined contribution plan means a retirement benefit plan
pursuant to which the Company makes fixed contribution to independent fund upon which and it is not
obliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than defined
contribution plan.The early retirement policy for staff and workers of the Company is the compensation for encouraging staff
and workers to accept the reduction voluntarily. The employees make applications voluntarily the two
parties sign the compensation agreement after approved by the Company and calculate the compensation
amount according to the compensation standard passed by the staff representative conference and the
Company confirms it as dismiss welfare and reckons it in current profits and losses. As the Company
promises to adjust the treatment for early retiring staff and workers with the increase of social basic cost of
living allowances the discount elements will not be considered for calculating the dismiss welfare.
23.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party commercial
acceptance bill discount pending litigation or arbitration product quality assurance etc. meets all of the
following conditions the Company will confirm the aforesaid as liabilities: the obligation is an existing
obligation of the Company; performance of the obligation is likely to cause economic benefits to flow out of
the enterprise; the amount of the obligation is reliably measurable.
24. Principle of recognition of revenue and measurement method
Revenue is the total inflow of economic benefits formed in the Company's daily activities that increase
shareholders' equity and have nothing to do with the capital invested by shareholders. The Company has
fulfilled the performance obligations in the contract that is revenue is recognized when the customer
obtains control of the relevant goods or services.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
If the contract contains two or more performance obligations the Company will allocate the transaction price
to each individual performance obligation according to the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the date of the contract. The
revenue is measured according to the transaction price of each individual performance obligation.The transaction price is the amount of consideration that the Company expects to be entitled to receive due to
the transfer of goods or services to customers excluding payments on behalf of third parties. The transaction
price confirmed by the Company does not exceed the amount at which the cumulatively recognized revenue
will most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. The
money expected to be returned to the customer will be regarded as a return liability and not included in the
transaction price.If there is a significant financing component in the contract the Company shall determine the transaction
price based on the amount payable on the assumption that the customer pays in cash when obtaining the
control of the goods or services. The difference between the transaction price and the contract consideration
shall be amortized by the effective interest method during the contract period. On the starting date of the
contract if the Company expects that the interval between the customer's acquisition of control of the goods
or services and the customer's payment of the price doesn’t exceed one year the significant financing
components in the contract shall be ruled out.When meeting one of the following conditions the Company is to perform its performance obligations
within a certain period of time otherwise it is to perform its performance obligations at a certain point in
time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance at the
same time as the Company's performance;
2) Customers can control the products under construction during the performance of the Company;
3) The goods produced by the Company during the performance of the contract have irreplaceable uses and
the Company has the right to collect payment for the accumulated performance part of the contract during the
entire contract period.
For performance obligations performed within a certain period of time the Company recognizes revenue in
accordance with the performance progress during that period. When the performance progress cannot be
reasonably determined if the cost incurred by the Company is expected to be compensated the revenue shall
be recognized according to the amount of the cost incurred until the performance progress can be reasonably
determined.
For performance obligations performed at a certain point in time the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether a customer
has obtained control of goods or services the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has transferred the legal ownership of the product or the main risks and rewards of
ownership to the customer;
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
4) The customer has accepted the goods or services etc.
The Company’s right (and the right depends on other factors other than the passage of time) to collect
consideration arising from transferring goods or services to customers is listed as contract assets and
contract assets are devalued on the basis of expected credit losses. The Company's unconditional (only
depending on the passage of time) right to collect consideration from customers is listed as receivables. The
Company’s obligation to transfer goods or services to customers for consideration received or receivable
from customers is listed as contract liabilities.The specific accounting policies related to the Company's main activities are described as follows:
(1) Transfer of goods
The sales of goods between the Company and customers usually takes the point in time when the goods’
control rights are transferred to recognize revenue after considering the acquisition of current collection
right of the goods the transfer of the main risks and rewards of the ownership of the goods the transfer of
the legal ownership of the goods the transfer of the physical assets of the goods the customer’s acceptance
of the goods and other factors.
(2) Transfer of service
The transfer of service between the Company and its customers usually includes technical services labor
services etc.; the Company regards the transfer of service as a performance obligation performed within a
certain period of time and recognizes revenue according to the performance progress unless the
performance progress cannot be reasonably determined. The Company determines the performance progress
of the service delivery in accordance with the input method. When the performance progress cannot be
reasonably determined if the cost incurred by the Company is expected to be compensated the revenue shall
be recognized according to the amount of the cost incurred until the performance progress can be reasonably
determined.
(3) Transfer of the right to use assets
For the business of transferring asset use rights the Company confirms the realization of the income from the
transfer of asset use rights when the economic benefits related to the transaction are likely to flow into the
company and the amount of income can be reliably measured in accordance with the relevant contract or
agreement.
(4) Quality assurance obligations
According to the agreement of contract legal provisions etc. the Company provides quality assurance for
the goods sold. For guarantee-type quality assurance to assure customers that the goods sold meet the
established standards the Company conducts accounting treatment in accordance with estimated liabilities.
For the service-type quality assurance that provides a separate service in order to assure customers that the
goods sold meet the established standards the Company regards it as a single performance obligation
allocates part of the transaction priceto the service quality assurance based on the relative proportion of the
stand-alone selling price of the quality assurance of goods and services and recognizes the revenue during
the period of fulfilling the single performance obligation. When evaluating whether the quality assurance
provides a separate service in addition to ensuring that the goods sold meet the established standards the
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Company considers whether the quality assurance is a legal requirement or industry practice the quality
assurance period and the nature of the company's commitment to perform the tasks and other factors.
(5) Contractual rights not exercised by customer
When the Company receives payment for sales of goods or services from customers in advance the payment
is first recognized as a liability and then converted into revenue when the relevant performance obligations
are fulfilled. When the Company’s advance receipts do not need to be returned and the customer may give
up all or part of their contractual rights and the Company expects to be entitled to obtain the amount related
to the contractual rights waived by the customer the above amount is recognized as revenue in proportion
according to the mode of the client's exercise of contractual rights otherwise the Company only converts the
relevant balance of the above liabilities into revenue when the possibility of the customer requesting to fulfill
the remaining performance obligations is extremely low. Contract liabilities refer to the Company’s
obligation to transfer goods or services to customers for consideration received or receivable from customers.
25. Contract cost
Contract cost include incremental cost incurred to obtain contracts and contract performance costs.
The incremental cost incurred to obtain the contract refers to the cost (such as sales commission etc.) that
will not incur if the Company doesn’t obtain the contract. If the cost is expected to be taken back the
Company will regard it as a contract acquisition cost and recognize it as an asset. The Company's expenses
incurred to obtain the contract other than the incremental cost that is expected to be taken back are included
in the current profit and loss when incurred.If the cost incurred to fulfill the contract does not fall within the scope of other business accounting standards
such as inventory and meets the following conditions at the same time the Company will regards it as the
contract performance cost and recognize it as an asset:
1) The cost is directly related to a current or expected contract including direct labor direct materials
manufacturing expenses (or similar expenses) cost clearly borne by the customer and other costs incurred
only due to the contract;
2)The cost increases the Company's future resources for fulfilling contract performance obligations; and
3)The cost is expected to be recovered.
Assets recognized for contract acquisition costs and assets recognized for contract performance costs
(hereinafter referred to as "assets related to contract costs") are amortized on the same basis as the revenue
recognition of goods or services related to the asset and included in the current profit and loss. If the
amortization period does not exceed one year it shall be included in the current profit and loss when it
occurs.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
If the book value of assets related to contract costs is higher than the difference between the following two
items the Company will make provisions for impairment for the excess part and recognize it as an asset
impairment loss:
1) The remaining consideration expected to be obtained due to the transfer of goods or services related to the
asset;
2) Costs estimated to incur for the transfer of the related goods or services.
26. Government subsidy
The government subsidy shall be recognized when the Company is able to meet the conditions attached and
is able to receive it. The Government subsidy other than fiscal subsidy received by the Company shall be
accounted on an aggregate basis. In particular the Government subsidies relating to ordinary activities would
be included in other income; the Government subsidies not relating to ordinary activities would be included
in non-operating income.When the Government subsidy is in the form of monetary assets it is measured at the actual amount received.The subsidy allocated according to fixed quota standards shall be measured by the amount receivable; When
the Government subsidy is in the form of non-monetary assets it is measured at fair value and measured at
the nominal value of RMB 1.00 in case of failure to obtain reliable fair value.
(1) Basis of determination and accounting of Government subsidy relating to assets
Government subsidy relating to assets refers to that obtained by the Company for the purpose of acquiring or
otherwise formation of long-term assets. Government subsidy relating to assets is deemed as that relating to
ordinary activities in principle and recognized as deferred income upon receipt. The Government subsidy
shall be allocated averagely over the life of use of relevant assets and accounted in other income.
(2) Basis of determination and accounting of Government subsidy relating to income
Government subsidy relating to income refers to the Government subsidy other than that relating to assets.Government subsidy relating to income shall be recognized as deferred income if the grant is used to
compensate the Company’s expenses or losses for subsequent periods and shall be accounted in profit or
loss for the period during the period in which the relevant expense is recognized. Those grants relating to our
ordinary activities are recorded in other income in the period in which the relevant expenses or losses are
recognized. Those grants not relating to our ordinary activities are recorded in non-operating income in the
period in which the relevant expenses or losses are recognized. Government subsidies used to compensate
the relevant costs or losses incurred by the Company and relating to our ordinary activities shall be accounted
in other income directly upon receipt of the grant and accounted in non-operating income directly upon
receipt if it is not related to our ordinary activities.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
With respect to Government subsidy comprising both portions relating to assets and income it shall be
accounted separately based on different portions and it shall be aggregated as that relating to income if it is
difficult to distinguish the two portions.
(3) The policy-related preferential loan received by the Company shall be accounted separately in the
following two manners:
In case that government’s appropriation of interest subsidy is made to the lending bank the Company shall
account for the relevant loan based on the actual amount of loan received by it and calculate the borrowing
expense based on the principal of the borrowing and the policy-related preferential interest rate.In case that government’s appropriation of interest subsidy is made to the Company the Company applied
the relevant interest subsidy to offset borrowing expense.
27. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)
between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be
recognized for the carry forward of unused deductible losses that it is probable that future taxable profits will
be available against which the deductible losses can be utilized. For temporary difference arising from initial
recognition of goodwill no corresponding deferred income tax liabilities will be recognized. For temporary
difference arising from initial recognition of assets and liabilities occurred in the transaction related to
non-business combination which neither affect accounting profit nor taxable income (or deductible losses)
no corresponding deferred income tax assets and deferred income tax liabilities will be recognized. As of the
balance sheet date deferred income tax assets and deferred income tax liabilities are measured at the
effective tax rate applicable to the period when recovery of assets or settlement of liabilities occur.The Company recognizes deferred income tax assets to the extent of future taxable income tax which is
likely to be obtained to offset deductible temporary difference deductible losses and tax credits.
28. Lease
The Company categorizes the lease into the financial leasing and the operating leasing.The financial leasing is the lease in which all risks and returns related to the ownership of assets are
transferred in substance. The Company as a lease holder on the date of lease the financial lease is
recognized as the fixed asset at lower cost of fair value of the rental asset and the NPV of minimum payment
of leasing. The minimum payment of leasing is recognized as long-term payable and the difference is
accounted into unrecognized financing expense.The operating lease is the lease apart from the financial leasing. The Company as a lease holder accounts
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
the rents into current period by straight line method during the term of the lease. The Company as a leaser
accounts the rental income into current period by straight line method during the term of the lease.
29. Held-for-sale
(1)The Company classifies non-current assets or disposal groups that meet all of the following conditions as
held-for-sale: 1) according to the practice of selling this type of assets or disposal groups in a similar
transaction the non-current assets or disposal group can be sold immediately at its current condition; 2) The
sale is likely to occur that is the Company has made resolution on the selling plan and obtained definite
purchase commitment the selling is estimated to be completed within one year. Those assets whose disposal
is subject to approval from relevant authority or supervisory department under relevant requirements are
subject to that approval. Prior to the preliminary classification of non-current assets or disposal group as the
category of held-for-sale the Company measures the carrying value of the respective assets and liabilities
within the non-current assets or disposal group under relevant accounting standards. For non-current asset or
disposal group held for sale for which it is found that the carrying value is higher than its fair value less
disposal expense during the initial measurement or re-measurement on the balance sheet date the carrying
value shall be deducted to the net amount of fair value less disposal expense and the reduced amount shall
be recognized as impairment loss in profit or loss for the period and provision of impairment of assets held
for sale shall be provided for accordingly.
(2)The non-current assets or disposal group that the Company has acquired specially for resale are classifiedas held for sale on the acquisition date when they meet the condition that “the selling is estimated to becompleted within one year” on the acquisition date and are likely to satisfy other conditions of being
classified as the type of held for sale in a short-term (usually being 3 months). Non-current assets or disposal
group classified as held for sale are measured at the lower of their initial measurement amount and the net
amount after their fair value less the selling expenses based on the assumption that such non-current assets or
disposal group are not classified as held for sale at the time of initial measurement. Except for the
non-current assets or disposal group acquired in a business combination the difference arising from
considering the net amount of such non-current assets or disposal group after their fair value less the selling
expenses as the initial measurement amount is recorded in the current profit or loss.
(3)In case of loss of control over the subsidiaries due to the sales of investment in subsidiaries no matter
whether the Company retains part of the equity investment after selling investment in subsidiaries the
investment in subsidiaries shall be classified as held for sale on an aggregate basis in the separate financial
statements of the parent company when the investment in subsidiaries proposed to be sold satisfies the
conditions for being classified as held for sale; and all the assets and liabilities of the subsidiary shall be
classified as held for sale in the consolidated financial statements.
(4)If the net amount of fair value of non-current assets held for sale less sales expense on subsequent balance
sheet date increases the amount previously reduced for accounting shall be recovered and reverted from the
impairment loss recognized after the asset is classified under the category of held for sale with the amount
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
reverted recorded in profit or loss for the period. Impairment loss recognized before the asset is classified
under the category of held for sale shall not be reverted.
(5)For the amount of impairment loss on assets the carrying value of disposal group’s goodwill shall be
offset against first and then offset against the book value of non-current assets according to the proportion of
book value of non-current assets.If the net amount of fair value of the disposal group held for sale on the subsequent balance sheet date less
sales expenses increases the amount reduced for accounting in previous periods shall be restored and shall
be reverted in the impairment loss recognized in respect of the non-current assets which are applicable to
relevant measurement provisions after classification into the category of held for sale with the reverted
amount charged in profit or loss for the current period. The written-off carrying value of goodwill and
impairment loss of non-current assets which is recognized prior to classification into the category of held for
sale shall not be reverted.The subsequent reversed amount in respect of the impairment loss on assets recognized in the disposal group
held for sale will increase the book value in proportion of the book value of each non-current asset (other
than goodwill) in the disposal group.
(6) The non-current assets in the non-current assets or disposal group held for sale is not depreciated or
amortized and the debt interests and other fees in the disposal group held for sale continue to be recognized.
(7)If the non-current assets or disposal group are no longer classified as held for sale since they no longer
meet the condition of being classified as held for sale or the non-current assets are removed from the disposal
group held for sale they will be measured at the lower of the following: 1) the amount after their book value
before they are classified as held for sale is adjusted based on the depreciation amortization or impairment
that should have been recognized given they are not classified as held for sale; 2) the recoverable amount.
(8) The unrecognized profits or loss will be recorded in the current profits or loss when derecognizing the
non-current assets or disposal group held for sale.
30. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed of
or is classified as held for sale and satisfies one of the following conditions: (1) represents a separate major
line of business or geographical area of operations; (2) is part of a single co-ordinate plan to dispose of a
separate major line of business or geographical area of operations; and (3) is a subsidiary acquired
exclusively with a view to resale.
31. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
include income tax in the current year and deferred income tax. The income tax associated with the events
and transactions directly included in the owners’ equity shall be included in the owners’ equity; and the
deferred income tax derived from business combination shall be included in the carrying amount of goodwill
except for that above the income tax expense shall be included in the profit or loss in the current period.The income tax expense in the current year refers to the tax payable which is calculated according to the tax
laws on the events and transactions incurred in the current period. The deferred income tax refers to the
difference between the carrying amount and the deferred tax assets and deferred tax liabilities at Current
Year-end recognized in the method of debit in the balance sheet.
32. Segment information
Business segment was the major reporting form of the Company which divided into five parts:
air-conditioning refrigerator & freezer & washing machine marketing small home appliance and others.The transfer price among the segments will recognize based on the market price common costs will
allocated by income proportion between segments except for the parts that without reasonable allocation.
33. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financial
statement which will affect the application of accounting policy and amounts of assets liabilities income and
expense. The actual condition may differ from the estimation. Constant evaluation is conducted by the
management in respect of the key assumption involved in the estimation and judgment of uncertainties.
Effect resulting from change of accounting estimation is recognized in the period the change occurs and
future periods.The following accounting estimation and key assumption may result in material adjustment to the book value
of assets and liabilities in future period.
(1) Inventory impairment provision
The Company provides impairment provision according to the type of finished products and goods delivered
under fixed proportion and estimates the realizable net value of inventories by reference to the projected
selling price of similar inventories less sales expenses and related taxes on a regular basis so as to evaluate
the rationality of the provision proportion. If the actual selling price or expense differs from the previous
estimation the management will make corresponding adjustment to the proportion. The estimation results
based on existing experiences may differ from the latter actual results which may result in adjustment to the
book value of inventories in the balance sheet and affect over the gains and losses of the period when the
estimation changes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings machine and equipment which have
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
impairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable
amount of relevant assets and assets group shall be the present value of the projected future cash flow which
shall be calculated with accounting estimation.If the management amends the gross profit margin and discount rate adopted in calculation of future cash
flow of assets and assets group and the amended gross profit margin is lower than the currently adopted one
or the amended discount rate is higher than the currently adopted one the Company needs to increase
provision of impairment provision. If the actual gross profit margin is higher (or the discount rate is lower)
than the estimation of management the Company can not transfer back the long term assets impairment
provision provided already.
(3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate for
each future year. Realization of deferred income tax assets depends on whether a company is able to obtain
sufficient taxable income in future. Change of future tax rate and switch back of temporary difference could
affect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimation
may result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
The Company at least at the end of each accounting year reviews the projected usable life and residual value
rate of fixed assets and intangible assets. The projected usable life and residual value rate are determined by
the management based on the historical experiences of similar assets by reference to the estimation generally
used by the same industry with consideration on projected technical upgrade. If material change occurs to
previous estimation the Company shall accordingly adjust the depreciation expenses and amortization
expenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countryside
promotion activity for free for ten years. As to the maintenance expenses that may be increased arising from
such commitment the Company has provided projected liabilities.Taking into account the various uncertainties during the ten years the Company considers no discount factor
of such projected liabilities. Instead the Company reviews the parameters (probility proportion maintenance
expense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date.If obvious change is found the Company will adjust the projected liabilities according to the latest
parameters so as to reflect the best estimation.
34. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and losses
according to other accounting rules.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Other comprehensive income items shall be reported in the following two classes under other relevant
accounting rules:
(1) Other comprehensive income items that can not be reclassified into gains and losses in future accounting
periods mainly including changes arising from re-measurement of net liabilities or net assets under defined
benefit plan and interest in investee’s other comprehensive income which are measured under equity method
and which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting
periods upon satisfaction of required conditions mainly includes the share of other comprehensive income
that is reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for in
accordance with the equity method and meet the specified conditions the fair value changes occurred by the
debt investment that is measured at fair value and whose changes are included in other comprehensive
income the difference between the original book value included in other comprehensive income and the fair
value when a financial asset measured at amortized cost is reclassified as a financial asset measured at fair
value and its changes are included in other comprehensive income the loss provisions for financial assets
measured at fair value and whose changes are included in other comprehensive income the gains or losses
generated from cash flow hedging instruments are part of effective hedging and the differences in
conversion of foreign currency financial statements.
35. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
Content and reasons Approval procedure Note
On 5 July 2017 the Ministry of Finance revised and issued the
Accounting Standards for Business Enterprises No. 14 - Revenue
and the Company implemented since 1 Jan. 2020.
Approved by 41
st
session of 9
th
BOD
Found below as
details
New Revenue standards are implemented by the Company and its subsidiaries for the first time in the period
and according to the regulation of Accounting Division of the Ministry of Finance CK[2019] No.6 impacts
on balance sheet at period-begin of the consolidate and parent company from change of the above mentioned
accounting policies are as:
Item
affected
Consolidated balance sheet Balance sheet of parent company
2019-12-31
(Before
adjustment)
Amount
adjusted
2020-1-1(Afte
r adjustment)
2019-12-31
(Before
adjustment)
Amount
adjusted
2020-1-1(After
adjustment)
Advance
payment
425149194.97 -425149194.97 147365864.56 -147365864.56
Contractua
l liabilities
425149194.97 425149194.97 147365864.56 147365864.56
(2) Change of significant accounting estimates
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
The Company had no change of significant accounting estimates in Current Period.V. Taxation
1. Major taxes (expenses) and tax rates
Tax(expenses) Tax base Tax rate
VAT
Income from sales of goods and from
processing
13%、9%、6%、5%
Urban maintenance and
construction tax
Turnover tax 5% or 7%
Education surcharge Turnover tax 3%
Local education
surcharge
Turnover tax 2%
Corporate income tax Taxable income 15% 、20%、 25%
House Property Tax
Original Book value of house
property×(1-30%)or annual rent income
1.2% or 12%
Land use tax Actual land area used 1 Yuan/M
2
to 15 Yuan /M
2
2. Preferential tax and approval documents
The Company and its subsidiary Zhongke Meiling Cryogenic Technology Co. Ltd. has passed the review for
high-tech enterprise certification on 20 July 2017 and continuous to enjoy 15% rate for the income tax for
State Hi-Tech Enterprise for three years term.The subsidiary Zhongshan Changhong Electric Co. Ltd. has passed the review for high-tech enterprise
certification on 9 November 2017 and continuous to enjoy 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
The subsidiary Sichuan Hongmei Intelligent Technology Co. Ltd. has passed the qualification of high-tech
enterprise certification on 3 December 2018 and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
Subsidiary Mianyang Meiling Refrigeration Co. Ltd. pass the review of Reply [Chuan JX Industrial H(2014)
No.408] from Sichuan Commission of Information on 9 May 2014 and the enterprise belongs to the
encourage industry listed in Directories of Industrial Structure Adjustment (2011) Revised (State Law
Reform Committee No. 21 Order); which enjoys the preferential tax policy of income tax for the western
development enterprise. And file in tax bureau with 15% rate for enterprise income tax since 2014 with
seven years term.The subsidiary Guangdong Changhong Ridian Technology Co. Ltd. has passed the qualification of high-tech
enterprise certification on 2 December 2019 and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
The subsidiary Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co. Ltd. has passed the
qualification of high-tech enterprise certification on 2 December 2019 and enjoys 15% rate for the income
tax for State Hi-Tech Enterprise for three years term.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
The subsidiary Hefei Meiling Nonferrous Metal Products Co. Ltd. has passed the qualification of high-tech
enterprise certification on 26 October 2018 and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
The subsidiary Jiangxi Meiling Electric Appliance Co. Ltd. has passed the qualification of high-tech
enterprise certification on 16 September 2019 and enjoys 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
The subsidiary Sichuan Changhong Air-conditioner Co. Ltd. belongs to the encouraged industry in the
Industrial Structure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate
income tax for the Western Development and the corporate income tax is levied at a reduced tax rate of 15%
valid until December 31 2030.The subsidiary Anhui Tuoxing Technology Co. Ltd. is in compliance with the relevant standards for small
and medium-sized enterprises with meager profits in the Notice on the Implementation of Inclusive Tax
Relief Policies for Small and Micro Enterprises (Caishui [2019] No. 13) of the Ministry of Finance and the
State Administration of Taxation and temporarily implements below policies: the part of annual taxable
income that does not exceed one million yuan is included in taxable income by 25% after a reduction and
corporate income tax is paid at a tax rate of 20%; while the part of annual taxable income exceeds one
million yuan but not exceeding three million yuan is included in taxable income by 50% after a reduction
and corporate income tax is paid at a tax rate of 20% which is valid until December 31 2021.VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below unless otherwise specified
“period-beginning” refers to Jan. 1 2020; “period-end” refers to Jun. 30 2020; “Current Period” refers to Jan.
1 to Jun. 30 2020; “the last period” refers to Jan. 1 to Jun. 30 2019; the currency is RMB.
1. Monetary fund
Item Ending balance Opening Balance
Cash 128714.24 44818.07
Bank deposit 4554664202.70 4771094609.77
Other Monetary fund 351940377.10 728461602.80
Total 4906733294.04 5499601030.64
Including: total amount deposited in overseas 8859504.98 25326137.49
Other monetary fund:
Item Ending balance
Cash deposit 350315615.71
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Ending balance
Account of foreign currency for verification 160225.03
Union Pay online 854615.47
Taobao account 609920.89
Total 351940377.10
Cash deposit which serves as non cash and cash equivalents refers to the banking acceptance draft deposit
with a term of over three months amounting to 86410721.99 yuan Guarantee deposit 1120000.00 the
amount restricted for used in managed account was 1501998.18 yuan balance of the loan guarantee for
loans from overseas subsidiary amounted as 23232000.00 yuan. Due to asset preservation restrictions
1800000.00 yuan China Union Pay Taobao account and Ten Pay are all third party payment platforms.
Except for the deposit of 200000.00 yuan utilization of other balance is not subject to any restriction.
Pars of the goods payment denominated in foreign currency should be transferred to reviewing accounts
which may not be used temporarily. Upon approval of such review those payments may be transferred to
general accounts. Due to the relatively short time for reviewing foreign exchange balance of the reviewing
accounts is not limited on utilization.
2. Tradable financial assets
Item Ending balance Opening Balance
Financial assets measured at fair value and whose changes are included
in current gains/losses
2944998.77 7730268.92
Including: Derivative financial assets 2944998.77 7730268.92
Tradable financial assets refers to the RMB forward exchange fund in Current Period
3. Note receivable
(1) Category of note receivable
Item Ending balance Opening Balance
Bank acceptance 1048215589.84 1676718999.50
Trade acceptance 107157224.53 190350000.00
Total 1155372814.37 1867068999.50
Less: bad debt provision 2355263.04 1903500.00
Book value 1153017551.33 1865165499.50
(2) By accrual of bad debt provision
Category
Ending balance
Book balance Bad debt provision Book value
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Amount Ratio Amount Ratio
With bad debt provision
accrual on single item
1048215589.84 90.73% 1048215589.84
Including: bank acceptance 1048215589.84 90.73% 1048215589.84
with bad debt provision
accrual on portfolio
107157224.53 9.27% 2355263.04 2.20% 104801961.49
Including: trade acceptance 107157224.53 9.27% 2355263.04 2.20% 104801961.49
Total 1155372814.37 100.00% 2355263.04 0.20% 1153017551.33
(Continued)
Category
Opening Balance
Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
With bad debt provision
accrual on single item
1676718999.50 89.80% 1676718999.50
Including: bank acceptance 1676718999.50 89.80% 1676718999.50
with bad debt provision
accrual on portfolio
190350000.00 10.20% 1903500.00 1.00% 188446500.00
Including: trade acceptance 190350000.00 10.20% 1903500.00 1.00% 188446500.00
Total 1867068999.50 100.00% 1903500.00 0.10% 1865165499.50
1) Note receivable withdrawal bad debt provision by combination
Account age
Ending balance
Note receivable Bad debt provision Provision ratio
Within 3 months (3 months
included)
92893993.57 928939.94 1.00%
Over 3 months and within 6
months (6 months included)
14263230.96 1426323.10 10.00%
Total 107157224.53 2355263.04 2.20%
(3) Provision and reversed in this period
The amount of provision for bad debts in the current period is RMB 451763.04 and no collection for
accounts charge off previous period
(4) Notes receivable already pledged at the end of the period
Item Amount pledge at period-end
Bank acceptance 331387334.54
Note: with purpose of improving the note utilization the Company draw up bank acceptance by pledge parts
of the outstanding notes receivable to the bank. For details of the pledge of bills receivable see Note VI. 54.
Assets with restricted ownership or use rights.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(5) Notes endorsement or discount and undue on balance sheet date
Item
Amount derecognition at
period-end
Amount without
derecognition at period-end
Bank acceptance 877063610.15
Trade acceptance 142893993.57
Total 1019957603.72
(6) Notes transfer to account receivable due for failure implementation by drawer at period-end
(7) No note receivable actually written off in this period.
4. Account receivable
(1) Category of account receivable
Category
Ending balance
Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
bad debt provision by single item
1316387441.66 49.82% 27170961.68 2.06% 1289216479.98
Including: current payment with related
party
1039175029.17 39.33% - 1039175029.17
Account receivable with letter of credit 202952368.32 7.68% - 202952368.32
Account receivable with single minor
amount but withdrawal single item bad
debt provision
74260044.17 2.81% 27170961.68 36.59% 47089082.49
Account receivable withdrawal bad
debt provision by portfolio
1326051663.74 50.18% 55321604.33 4.17% 1270730059.41
Including: account receivable of
engineering customers
229675170.03 8.69% 7257686.94 3.16% 222417483.09
Receivables other than engineering
customers
1096376493.71 41.49% 48063917.39 4.38% 1048312576.32
Total 2642439105.40 100.00% 82492566.01 3.12% 2559946539.39
(Continued)
Category
Opening Balance
Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
bad debt provision by single item
746199837.64 51.49% 26519983.66 3.55% 719679853.98
Including: current payment with related 614612878.93 42.41% 614612878.93
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Category
Opening Balance
Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
party
Account receivable with letter of credit 52306821.66 3.61% 52306821.66
Account receivable with single minor
amount but withdrawal single item bad
debt provision
79280137.05 5.47% 26519983.66 33.45% 52760153.39
Account receivable withdrawal bad
debt provision by portfolio
703054274.21 48.51% 34772146.53 4.95% 668282127.68
Including: account receivable of
engineering customers
141637042.88 9.77% 3940749.05 2.78% 137696293.83
Receivables other than engineering
customers
561417231.33 38.74% 30831397.48 5.49% 530585833.85
Total 1449254111.85 100.00% 61292130.19 4.23% 1387961981.66
1) Account receivable with single minor amount but withdrawal bad debt provision singly refers to the minor
single receivables and withdrawal bad debt provision by combination shows no risk characteristic of the
receivables 102 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
Account age
Ending balance
Account receivable Bad debt provision Provision ratio
Within 3 months (3 months included) 96246154.52 -
Over 3 months and within 6 months (6 months
included)
54513578.86 -
Over 6 months and within one year (One year
included)
42986980.97 -
Over one year - within 2 years (2 years
included)
35688469.68 7137693.94 20.00%
Over 2 years - within 3 years (3 years
included)
239986.00 119993.00 50.00%
Over 3 years - -
Total 229675170.03 7257686.94
B. Receivables other than engineering customers
Account age Ending balance
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Account receivable Bad debt provision Provision ratio
Within 3 months (3 months included) 934998070.63 9349980.71 1.00%
Over 3 months and within 6 months (6
months included)
81998231.31 8199823.13 10.00%
Over 6 months and within one year (One
year included)
42873768.12 8574753.62 20.00%
Over one year - within 2 years (2 years
included)
25549938.51 12774969.26 50.00%
Over 2 years - within 3 years (3 years
included)
8960472.36 7168377.89 80.00%
Over 3 years 1996012.78 1996012.78 100.00%
Total 1096376493.71 48063917.39
(2) By account age
Item Ending balance
Within 3 months (3 months included) 1997004581.20
Over 3 months and within 6 months (6 months included) 271432556.95
Over 6 months and within one year (One year included) 182933812.94
Over one year - within 2 years (2 years included) 150645903.29
Over 2 years - within 3 years (3 years included) 28438365.84
Over 3 years 11983885.18
Total 2642439105.40
(3) Bad debt reserves of account receivable
Bad debt provision has 23009930.60 Yuan accrual in Current period; bad debt provision of 1809494.78
Yuan is switch-back; no trade receivables written-off in previous year was recovered this period.
(4) Account receivable actually written-off in Current period: Nil
(5) Pledge of the account receivable at period-end can be found in 54. Assets with ownership or the right to
use restricted in VI.
(6) In Current period top five receivables collected by arrears party amounting to 1447563435.13 yuan in
total accounted for 54.78% of the receivables at balance of Current period-end the bad debt provision
accrual correspondingly amounting to 5382910.61 yuan at period-end balance.
(7) Account receivable terminated recognition due to the transfer of financial assets: nil
(8) No assets and liability transfer Account receivable and continues to involve at period-end.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
5. Accounts paid in advance
(1) Age of account paid in advance
Item
Ending balance Opening Balance
Amount Ratio Amount Ratio
Within one year 49412683.49 98.56% 23665135.72 93.65%
1-2 years 401775.32 0.80% 945375.38 3.74%
2-3 years 22551.00 0.05% 331164.45 1.31%
Over 3 years 297966.79 0.59% 328730.82 1.30%
Total 50134976.60 100.00% 25270406.37 100.00%
(2) Top 5 of account paid in advance in balance at period-end amounting to 37245651.40 yuan accounted
for 74.29% of the account.
6. Other account receivable
Item Ending balance Opening Balance
Interest receivable 21556791.10 9510208.63
Dividend receivable 661434.48
Other account receivable 81766861.76 87070251.69
Total 103323652.86 97241894.80
6.1 Interest receivable
(1) Category of interest receivable
Item Ending balance Opening Balance
Interest receivable from time deposit 19159985.54 9510208.63
Income receivable from financial products 2396805.56
Total 21556791.10 9510208.63
(2) Major overdue interest: nil
6.2 Dividend receivable
(1) Category of dividend receivable
Item Ending balance Opening Balance
Huishang Bank Corporation Limited 661434.48
(2) Major dividends receivable with account age over 1 year: Nil
6.3 Other account receivable
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(1) Category of other account receivable
Nature Ending balance Opening Balance
Export rebate 10556031.93 21650454.61
Cash deposit 47288215.13 49470316.18
Loans of employee’s pretty cash 26470536.53 16863753.28
Related party not in consolidation statement 1305071.74 1163963.53
Advance money temporary 90000.00 332896.32
Other 392725.13 2645856.29
Total 86102580.46 92127240.21
(2) Other account receivable bad debt reserves
Bad debt reserves
First stage Second stage Third stage
Total
Expected credit
loss in next 12
months
Expected credit
loss for the whole
duration (no credit
impairment)
Expected credit
loss for the whole
duration (credit
impairment has
occurred)
Balance as at 1 Jan. 2020 5004988.52 52000.00 5056988.52
Book balance of Other account
receivable in Current Period as
at 1 Jan. 2020
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
Provision in Current Period -749269.82 50000.00 -699269.82
Reversal in Current Period 22000.00 22000.00
Conversion in Current Period
Write off in Current Period
Other change
Balance as at 30 Jun. 2020 4255718.70 80000.00 4335718.70
(3) By account age
Account age Ending balance
Within 3 months (3 months included) 38155535.05
Over 3 months and within 6 months (6 months included) 9683233.74
Over 6 months and within one year (One year included) 14100213.69
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Account age Ending balance
over one year-within two years (2 years included) 17831652.89
Over 2 years - within 3 years (3 years included) 2576887.65
Over 3 years 3755057.44
Total 86102580.46
(4) No actual verification of other receivables in Current period
(5) Top 5 other receivables collected by arrears party at balance of period-end:
Name Nature Balance at
period-end
Account age
Proportion in
total other
receivables at
period-end
Balance at
period-end of
bad debt
provision
Development & Reform Bureau of
Qingyuan District Baoding City
Margin 14400000.00
Within 3
months &
over 2
years-within
3 years
16.72%
SAT of Hefei Economic &
Technological Development Zone
Tax rebate 10556031.93
Within 3
months
12.26%
Office of the lading group for
construction of new socialist
countryside in Shunyi District
Margin 8780849.40
Over 1 year
-within 2
years
10.20% 1756169.88
Municipal Public Utilities
Administration of Fengfeng Mining
Area Handan City
Margin 2386732.00
Over 2
years
–within 3
years
2.77% -
Bureau of agriculture and rural
affairs in Wuji County
Margin 2000000.00
Over 6
months-with
in 1 year
2.32%
Total 38123613.33 44.27% 1756169.88
(6) No other account receivable involved government subsidies at period-end.
(7) No other receivables terminated recognization due to the transfer of financial assets at period-end.
(8) No assets and liability transfer other receivables and continues to involve at period-end.
7. Inventories
(1) Classification of inventories
Item
Ending amount
Book balance Impairment provision Book value
Raw materials 178511791.77 11068250.22 167443541.55
Stock commodities 1357842767.16 79723683.43 1278119083.73
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item
Ending amount
Book balance Impairment provision Book value
Low value consumable articles 6058121.99 114037.76 5944084.23
Goods in transit 329259732.84 7500321.19 321759411.65
Goods-in-process 21189937.37 21189937.37
Engineering construction 68568957.74 68568957.74
Deferred expense for mould 22825061.63 22825061.63
Total 1984256370.50 98406292.60 1885850077.90
(Continued)
Item
Opening amount
Book balance Impairment provision Book value
Raw materials 151663007.21 8222896.79 143440110.42
Stock commodities 1067657584.34 85915212.96 981742371.38
Low value consumable articles 7450761.70 114037.76 7336723.94
Goods in transit 215898485.10 4872592.90 211025892.20
Goods-in-process 10181803.47 10181803.47
Engineering construction 70738030.16 70738030.16
Deferred expense for mould 36445257.49 36445257.49
Total 1560034929.47 99124740.41 1460910189.06
(2) Inventory falling price reserves
Item Opening amount
Increased in Current period
Decreased in Current
period
Ending amount
Provision Other
Switch-back or
conversion
Other
Raw materials 8222896.79 5106744.70 2261391.27 11068250.22
Stock
commodities
85915212.96 14895908.31 21087437.84 79723683.43
Goods in
transit
4872592.90 6729137.05 4101408.76 7500321.19
Low value
consumable
articles
114037.76 - - 114037.76
Total 99124740.41 26731790.06 27450237.87 - 98406292.60
(3) Provision for inventories
Item Specific basis for determining of net realizable value
Reasons for the Switch-back
or conversion in Current
period
Raw materials
Cost is higher than net realizable value (The processed products are
decline)
Stock
commodities
Cost is higher than net realizable value (The market price at
period-end fell)
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Specific basis for determining of net realizable value
Reasons for the Switch-back
or conversion in Current
period
Goods in transit
Cost is higher than net realizable value (The market price at
period-end fell)
Low value
consumable
articles
Cost is higher than net realizable value
8. Other current assets
Item Ending balance Opening balance
Financial products 550000000.00
Value-added tax to be deducted 38178669.93 43809823.14
Advance payment of income tax 21749246.67 18010305.85
Pakistan local sales tax 3232653.60 1337337.27
Other unamortized expenses 446565.70
Total 613160570.20 63604031.96
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
9. Long-term equity investment
Invested enterprise
Opening
Balance
Changes in Current period
Ending
balance
Balance
at
period-en
d of
impairme
nt
Additional
investment
Disin
vestm
ent
Investment
profit and loss
confirmed by
equity method
Other
comprehen
sive income
adjustment
Other
chang
es of
equity
Declaration of
cash dividends
or profits
Provisio
n for
impair
ment
Other
Associated companies
1.Changhong Ruba
Electric Company(Private)Ltd.
note 1
-75548.73 75548.73
2.Hefei Xingmei Assets Management Co. Ltd. 8554613.73 -308937.28 8245676.45
3.Sichuan Zhiyijia Network Technology Co.
Ltd.note 2
45607507.85 182915.04 - - 6649787.97 - - 39140634.92
4.Hongyuan Ground Energy Heat Tech. Co.
Ltd.note 3
23374940.65 6130.29 23381070.94
5.Sichuan Tianyou Guigu Technology Co.
Ltd.note 4
2802223.55 -102761.71 2699461.84
6..Chengdu Guigu Environmental Tech. Co.
Ltd.note 5
8217225.92 -1109845.07 7107380.85
7. Hefei Meiling Solar Energy Technology
Co. Ltd.
note 6 1617928.00 1617928.00 -
Total 88556511.70 209880.54 75548.73 - 8267715.97 80574225.00
Note 1: Zhongshan Changhong a subsidiary of the Company entered into a supplemental joint venture agreement with RUBA Comprehensive Trading Company in 2017 pursuant to which both parties
agreed to increase capital contribution of US$ 1130191.00 among which Zhongshan Changhong subscribed to contribute US$ 452076.00 (equivalent to 3001649.02 yuan on the actual contribution
date) according to the original shareholding proportion of 40% and RUBA Comprehensive Trading Company subscribed to contribute US$ 678115.00 according to the original shareholding proportion of
60%.
Note 2: on 16 December 2014 the Company executed a joint venture agreement with its controlling shareholder Sichuan Changhong Electric Co. LTD targeting to jointly establish Sichuan Zhiyijia
Network Technology Co. Ltd. On 5 January 2015 Sichuan Zhiyijia Network Technology Co. Ltd was officially incorporated with registered capital of 50 million yuan among which the Company made
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
contribution of 15 million yuan with shareholding proportion of 30% and Sichuan Changhong Electric Co. LTD made contribution of 35 million yuan with shareholding proportion of 70%. In 2019 the
Company increase capital of 29087040.00 yuan (of which: 20 million yuan reckoned in registered capital and 9087040 yuan reckoned in capital reserves) to Zhiyijia with shareholding ratio up to 50%.
Note 3: subsidiary Sichuan Changhong Air Conditioner Co. Ltd (“Changhong Air Conditioner”) and Hengyouyuan Technology Development Group Co. Ltd. (“Hengyouyuan”) cooperated to establis h
Hongyuan Ground Energy Heat Technology Co. Ltd. on 28 October 2015. The registered capital of the company is 50 million yuan among which Changhong Air Conditioner contributed 24.5 million
yuan accounting for 49% of the registered capital and Hengyouyuan contributed 25.5 million yuan accounting for 51% of the registered capital.Note 4: Sichuan Tianyou Guigu Technology Co. Ltd. was incorporated on 31 March 2015 with registered capital of 100 million yuan. Our subsidiary Changhong Air Conditioner made capital contribution
of RMB 25 million in cash accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 20 million yuan accounting for 20% of the
registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co. Ltd made capital contribution of 20 million yuan accounting for 20% of the registered capital. Mianyang Investment
Holding (Group) Co. Ltd made capital contribution of 5 million yuan accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co. Ltd made capita l
contribution of 5 million yuan accounting for 5% of the registered capital. Jiangsu Runye Investment Co. Ltd made capital contribution of 10 million yuan accounting for 10% of the registered capital.
Chengdu Dongyu Shangmao Co. Ltd made capital contribution of 15 million yuan accounting for 15% of the registered capital. In 2016 shareholders meeting of Sichuan Tianyou Guigu Technology Co.
Ltd. agreed to reduce the 50 million Yuan capital the shareholders are reducing the capital by ratio of share-holding. After capital reduction subsidiary Changhong Air conditioner contributed 12.5 million
Yuan representing 25% of the registered capital.Note 5: Chengdu Guigu Environmental Tech. Co. Ltd. was incorporated on 22 May 2013 with registered capital of 40 million yuan. Our subsidiary Changhong Air Conditioner made capital contribution
of 10 million yuan accounting for 25% of the registered capital. Chengdu Jiaodao Property Development Company made capital contribution of 8 million yuan accounting for 20% of the registered
capital. Chengdu Southwest Jiaotong University Industry (Group) Co. Ltd made capital contribution of 8 million yuan accounting for 20% of the registered capital. Mianyang Investment Holding (Group)
Co. Ltd made capital contribution of 2 million yuan accounting for 5% of the registered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co. Ltd made capital contribution of 2
million yuan accounting for 5% of the registered capital. Sichuan Shuye Jiachen Property Development Company made capital contribution of 4 million yuan accounting for 10% of the registered capital.
Chengdu Dongyu Shangmao Co. Ltd made capital contribution of 6 million yuan accounting for 15% of the registered capital.
Note 6: Hefei Meiling Solar Energy Technology Co. Ltd. was incorporated on April 18 2002 with a registered capital of RMB 10 million. Subsidiary Hefei Meiling Group Holdings Limited invested
RMB 3.1114 million accounting for 31.114% of the registered capital; Hefei Huayi Investment Co. Ltd. invested RMB 4.972 million accounting for 49.72% of the registered capital; Hefei Xingtai Asset
Management Co. Ltd. invested RMB 1.9166 million accounting for 19.166% of the registered capital.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
10. Other non-current financial assets
Item Ending balance Opening Balance
Huishang Bank Corporation Limited 5000000.00 5000000.00
Hongyun Fund 40000000.00 40000000.00
Total 45000000.00 45000000.00
11. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Land use right Total
I. Original book value
1. Opening Balance 107085322.69 3411848.00 110497170.69
2. Increased in Current period
3. Decreased in Current period 47572819.40 3411848.00 50984667.40
(1) Return fixed assets/intangible assets 47572819.40 3411848.00 50984667.40
4. Ending balance 59512503.29 - 59512503.29
II. Accumulated depreciation and
accumulated amortization
1. Opening Balance 13173242.66 980167.90 14153410.56
2. Increased in Current period 1529473.15 54092.71 1583565.86
(1) Provision or amortization 1529473.15 54092.71 1583565.86
3. Decreased in Current period 10017655.56 1034260.61 11051916.17
(1) Return fixed assets/intangible assets 10017655.56 1034260.61 11051916.17
4. Ending balance 4685060.25 - 4685060.25
III. Provision for impairment
IV. Book value
1. Ending book value 54827443.04 - 54827443.04
2. Opening book value 93912080.03 2431680.10 96343760.13
(2) No investment real estate measured by fair value at period-end.
(3) No particular about mortgage of investment property at period-end.
(4) Investment real estate without property certification held
Item The book value
Reasons for failing to complete
property rights certificate
J04 molding workshop 30081729.28 Related property rights in procedure
J03 Jijia workshop 18112365.56 Related property rights in procedure
J20 air compressor station workshop 1276136.28 Related property rights in procedure
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item The book value
Reasons for failing to complete
property rights certificate
J18 opening and closing office 590790.85 Related property rights in procedure
J04b Circulating pool 350202.40 Related property rights in procedure
J04a Circulating pool 350201.98 Related property rights in procedure
Total 50761426.35
12. Fixed assets
Item Ending balance Opening balance
Fixed assets 2193531845.34 2104697429.76
Disposal of fixed assets 75875517.11 75875517.11
Total 2269407362.45 2180572946.87
12.1 Fixed assets
(1) Fixed assets
Item House and buildings
Machinery
equipment
Transport
equipment
Other equipment Total
I. Original book value
1. Opening Balance 1523939695.75 1503518277.04 33309514.17 179439886.87 3240207373.83
2. Increased in
Current period
55915318.73 144275066.91 144345.62 11511241.90 211845973.16
(1) Purchase 1188711.38 4814533.66 35778.76 2081516.39 8120540.19
(2) Construction in progress
transfer-in
7153787.95 139460533.25 108566.86 9377442.73 156100330.79
(3) Inventory transfer-in - - - 52282.78 52282.78
(4) Return of
investment real estate
47572819.40 - - - 47572819.40
3. Decreased in
Current period
136440.41 22292131.46 129374.68 928124.35 23486070.90
(1) Dispose or retirement - 10658002.21 - 701247.54 11359249.75
(2) Construction in progress
transfer-in
- 11634129.25 - - 11634129.25
(3) Decreased for
change of foreign rate
- - 129374.68 226876.81 356251.49
(4) Other decrease 136440.41 - - - 136440.41
4. Ending Balance 1579718574.07 1625501212.49 33324485.11 190023004.42 3428567276.09
II. Accumulated
depreciation
1. Opening Balance 287729327.02 760142789.56 17507896.39 68398095.48 1133778108.45
2. Increased in
Current period
35000288.61 68312758.94 1481160.07 8234443.29 113028650.91
(1) Provision 24982633.05 68312758.94 1481160.07 8234443.29 103010995.35
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item House and buildings
Machinery
equipment
Transport
equipment
Other equipment Total
(2) Return of
investment real estate
10017655.56 - - - 10017655.56
3. Decreased in
Current period
- 12623548.46 68300.98 674588.95 13366438.39
(1) Dispose or retirement - 9912423.32 - 589419.55 10501842.87
(2) Construction in progress
transfer-in
- 2711125.14 - - 2711125.14
(3) Decreased for
change of foreign rate
- - 68300.98 85169.40 153470.38
4. Ending Balance 322729615.63 815832000.04 18920755.48 75957949.82 1233440320.97
III. Provision for
impairment
1. Opening Balance - 1584226.14 - 147609.48 1731835.62
2. Increased in
Current period
3. Decreased in
Current period
- 130239.68 - 6486.16 136725.84
(1) Dispose or retirement - 130239.68 - 6486.16 136725.84
(2) Construction in progress
transfer-in
4. Ending Balance - 1453986.46 - 141123.32 1595109.78
IV. Book value
1. Ending book value 1256988958.44 808215225.99 14403729.63 113923931.28 2193531845.34
2. Opening book value 1236210368.73 741791261.34 15801617.78 110894181.91 2104697429.76
The new fixed assets in this period mainly due to the 156100330.79 yuan transfer from construction in
process; decrease of the fixed assets in Current period mainly including renewal of the assets transfer to
construction in progress and assets dispose for retirement.
(2) No fixed assets temporary idle at period-end.
(3) Fixed assets for collateral at period-end
Item Original book value
Accumulated
depreciation
Impairment loss Net book value
House and buildings 424584170.38 104265875.16 - 320318295.22
(4) Fixed assets leased through financing lease at period-end.
Item Original book value
Accumulated
depreciation
Impairment loss Net book value
Machinery equipment 2976714.26 937900.21 - 2038814.05
(5) Fixed assets leased through operating lease at period-end.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Original book value
Accumulated
depreciation
Impairment loss Net book value
House and buildings 48724425.78 7493389.27 - 41231036.52
Machinery equipment 4497205.26 2862727.06 - 1634478.20
Other equipment 3006383.36 791602.93 - 2214780.43
Total 56228014.40 11147719.26 - 45080295.15
(6) Fixed assets without property certificate
Item The book value
Reason of not complete the
property certificate
Testing Center Building 40613387.28
Related property rights in
procedure
Canteen in the second phase of the living area 21851483.17
Related property rights in
procedure
No. 4 Transition Room (Transfer of Dormitory Building) 4808169.32
Related property rights in
procedure
Freezer auxiliary station 3140998.53
Related property rights in
procedure
Living area hot water room 2445250.20
Related property rights in
procedure
Circulating water pump room\equipment room 842180.21
Related property rights in
procedure
Freezer waste station 249867.44
Related property rights in
procedure
Freezer No. 7 Factory Inspection Room 194265.19
Related property rights in
procedure
Refrigerator packaging sorting storage and transportation center 51200397.56
Related property rights in
procedure
Supporting plant 12577799.43
Related property rights in
procedure
J07 Electric Control Plant 35430492.62
Related property rights in
procedure
J02 plant 31812770.60
Related property rights in
procedure
J01 plant 29486315.84
Related property rights in
procedure
J05 two device workshop 23543469.05
Related property rights in
procedure
J06 central air-conditioning plant 17918436.54
Related property rights in
procedure
J50 finished product warehouse 16916180.43
Related property rights in
procedure
J51 finished product warehouse 16372208.71
Related property rights in
procedure
J53 finished product warehouse 12582320.06
Related property rights in
procedure
J54 finished product warehouse 11701520.32
Related property rights in
procedure
J55 finished product warehouse 10718654.43
Related property rights in
procedure
J56 finished product warehouse 10718654.43
Related property rights in
procedure
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item The book value
Reason of not complete the
property certificate
J52 finished product warehouse 9106360.85
Related property rights in
procedure
J9 Raw Material Warehouse 6384445.10
Related property rights in
procedure
J10 Raw Material Warehouse 4727552.22
Related property rights in
procedure
J11 Raw Material Warehouse 4613648.49
Related property rights in
procedure
J08 packaging material warehouse 4394648.32
Related property rights in
procedure
J15 refrigerant forklift room 1347752.30
Related property rights in
procedure
J17 Chemical Library 1323588.56
Related property rights in
procedure
J16 Chemical Library 1210298.37
Related property rights in
procedure
J19 main guard room 332691.77
Related property rights in
procedure
J19A Guard Room 210121.63
Related property rights in
procedure
J19C Guard Room 210121.12
Related property rights in
procedure
J19B Guard Room 210120.87
Related property rights in
procedure
J19D Guard Room 153634.05
Related property rights in
procedure
J19E Guard Room 153634.05
Related property rights in
procedure
Total 389503439.06
(7) No fixed assets held for sale at period-end
12.2 Disposal of fixed assets
Item Ending amount Opening amount
Reasons for disposal
transferred
Relevant assets disposal for reserved lands 75875517.11 75875517.11
Relocation for land
reserve
Pursuant to the urban planning requirements of the People’s Government of Hefei city Hefei Land Reserve Center plans to
purchase and store the land use right of an integrated economic development zone of the Company located at Longgang of
Hefei with an area of 103978.9 sq.m. (Approximately 155.9684 mu Land Use Right Certificate No.: Dong Guo Yong (2004)
Zi No. 0200 the stated use of the land is for industrial purpose). The estimated consideration for purchasing and storage is
RMB74.48 million. The land is mainly used for the Company’s warehouse product finishing workshop and the factory of
Zhongke Meiling. Pursuant to the purchasing and storage requirements of land use right the land will be purchased and stored
with vacant possession. In April 2013 the Company completed the relocation of occupants of the premises and the net fixed
assets in relation to the land will transfer as disposal accounting treatment will be conduct in line with relevant rules upon
receiving of the relocation compensation.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidong county the land
reserve center of Feidong county will purchase and store the land use right of an economic development zone located at
Feidong county Hefei city which is owned by the Company’s subordinate compan ies Equator Electric and Equator Home
Appliance respectively with an area of 19245.09 sq.m. (Approximately 28.87 mu Land Use Right Certificate No.: Dong
Guo Yong (2008) No. 0366 the stated use of the land is for industrial purpose) and an area of 46161.9 sq.m. (Approximately
69.24 mu Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367 the stated use of the land is for industria l
purpose). The total consideration for purchasing and storage is approximately 36 million yuan of which the consideration for
the land use right owned by Equator Electric and Equator Home Appliance is approximately 10.59 million yuan and 25.41
million yuan respectively. The Company has completed the relocation of occupants of the premises and the net fixed assets in
relation to the land will transfer as disposal accounting treatment will be conduct in line with relevant rules upon receiving of
the relocation compensation.No impairment of relevant assets disposal for reserved lands at period-end.
13. Construction in progress
Item Ending balance Opening balance
Construction in progress 191470652.98 252494792.31
(1) Details of construction in progress
Item
Ending amount Opening amount
Book balance
Imp
airm
ent
provi
sion
Book value Book balance
Imp
airm
ent
prov
ision
Book value
Construction of washing machine
plant
89921034.08 89921034.08 72019665.48 72019665.48
Other petty projects 36491875.74 36491875.74 19993376.23 19993376.23
Capacity enlargement and
technology improvement project
for Air-conditioner Company
28919755.30 28919755.30 6848640.93 6848640.93
Technical transformation project
of Zhongshan Changhong
10489874.88 10489874.88 2670888.52 2670888.52
Changhong Air Conditioner-
relocation of production base and
upgrading & expansion
9377462.68 9377462.68 115113691.81 115113691.81
Project of the application of MES
system during manufacturing
7264187.95 7264187.95 7259356.79 7259356.79
Construction of laboratory
(inspection center)
4965046.69 4965046.69 2283246.03 2283246.03
Low-voltage power distribution
room project
1753448.40 1753448.40 876724.20 876724.20
Production efficiency
improvement project of the Line
C for the overseas Refrigerator
Manufacture Company
1327155.18 1327155.18 1327155.18 1327155.18
Upgrade project for the 666500.00 666500.00 666500.00 666500.00
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item
Ending amount Opening amount
Book balance
Imp
airm
ent
provi
sion
Book value Book balance
Imp
airm
ent
prov
ision
Book value
production line of Mianyang
Meiling Intelligent Refrigerator
Jiangxi Meiling – construction of
the production line for producing
one million energy-saving smart
refrigeration annually
294312.08 294312.08 434062.08 434062.08
Construction of intelligent
manufacturing
- - 4441461.82 4441461.82
Equipment to be installed - 16790792.47 16790792.47
Line modification for R290 - 1769230.77 1769230.77
Total 191470652.98 - 191470652.98 252494792.31 - 252494792.31
(2) Changes in significant construction in progress
Item
Book balance
at period-begin
Increase
during the
period
Transfer to
fixed assets in
the period
Other
decreas
e
Book balance
at period-end
Source of funds
Construction of washing
machine plant
72019665.48 21955552.42 4054183.82 89921034.08
Self-raised/
Raise
Changhong Air
Conditioner- relocation of
production base and
upgrading & expansion
115113691.81 13510910.22 119247139.35 9377462.68 Self-raised
Construction of laboratory
(inspection center)
2283246.03 2864959.36 183158.70 4965046.69 Raise
Construction of intelligent
manufacturing
4441461.82 1580690.73 6022152.55 - Raise
(Continued)
Projects
Budget
(in 10
thousand
Yuan)
Proportion of
project
investment in
budget
Progres
s
Accumulated
amount of
interest
capitalization
including:
interest
capitalized
amount of the
period
Interest
capitaliza
tion rate
of the
period
Construction of washing
machine plant
37121.00 83.45% 85%
Changhong Air Conditioner-
relocation of production base
and upgrading & expansion
84791.01 86.44% 96% 2570143.02
Construction of laboratory
(inspection center)
10748.00 81.98% 95%
Construction of intelligent
manufacturing
26128.00 97.03% 100%
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(2) No impairment occurred for construction in progress at period-end
14. Intangible assets
(1) According to intangible assets item:
Item Land use right
Trademark
special right
Non-patent
technology
Patent right Other Total
I. Original
book value
1.Opening
balance
866310249.56 283292439.34 417638699.74 7592305.59 7106572.74 1581940266.97
2.Current
increased
3414048.01 - 60145668.45 21448794.43 66037.74 85074548.63
(1)
Purchase
2200.01 - - - - 2200.01
(2)
Internal
research
- - 60145668.45 21448794.43 66037.74 81660500.62
(3) Return
of
investment
real estate
3411848.00 - - - 3411848.00
4.Ending
balance
869724297.57 283292439.34 477784368.19 29041100.02 7172610.48 1667014815.60
II.
Accumulat
ed
amortizati
on
1.Opening
balance
160546271.68 282607964.69 194299345.34 282904.72 2140264.95 639876751.38
2.Current
increased
10255884.33 684474.65 54251681.10 1785046.33 121959.24 67099045.65
(1) Accrual 9221623.72 684474.65 54251681.10 1785046.33 121959.24 66064785.04
(2) Return
of
investment
real estate
1034260.61 - - - 1034260.61
4.Ending
balance
170802156.01 283292439.34 248551026.44 2067951.05 2262224.19 706975797.03
III.Impairmen
t loss
4306556.42 4508495.33 8815051.75
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Land use right
Trademark
special right
Non-patent
technology
Patent right Other Total
IV. Book
value
1.Ending
book value
698922141.56 - 224926785.33 26973148.97 401890.96 951223966.82
2.Opening
book value
705763977.88 684474.65 219032797.98 7309400.87 457812.46 933248463.84
The intangible assets resulted from internal research takes 4.90% of the balance of intangible assets at
period-end
(2) No land use right without property certification done at prtiof-end
(3) Up to end of current period mortgage of intangible assets is as follows:
Name Property certificate serials Area(M
2
) Net book value Note
Land use right HGYJCZi No.: 0121 27120.22 17989983.82
Land use right
Wan (2019)Property right of Hefei No.:
1148244/1148249/1148243/1148240/1148248/1148246/1
148241/1148238/1149101/1148242/1148245/1148239/11
48237/1148250/1148247/1149102
477550.03 243236699.81
Land use right Wan (2019) Property right of Feixi County No.:
0061435/0061445
33383.10 13701469.91
Land use right
Wan (2019) Property right of Feixi County No.:
0061456/0061447/0061438/0061440/0061452/0061450/0
061430/0061657
82850.51 18858305.69
Total 620903.86 293786459.23
15. Development expense
Item
Opening
balance
Current increased Current decreased
Ending
balance
Internal
development
expenditure
Othe
r
Included in
current profits
and losses
Confirmed as
intangible assets
Othe
r
Technology
development for
Air-conditioner
39987914.98 41817700.09 92339.11 51315358.31 30397917.65
Technology
development for
refrigerator
61090744.59 28985941.21 30345142.31 59731543.49
Total 101078659.57 70803641.30 - 92339.11 81660500.62 - 90129461.14
16. Goodwill
(1) Original value of goodwill
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Invested enterprise
Opening
balance
Current increased Current decreased
Ending
balance
Formation
from
enterprise
merger
Other
Formation
from
enterprise
merger
Other
Hefei Meiling Group Holdings
Limited
3553367.77 3553367.77
Total 3553367.77 3553367.77
(2) Impairment loss of goodwill
Invested enterprise
Opening
balance
Current increased Current decreased Ending
balance Accrual Other Accrual Other
Hefei Meiling Group Holdings
Limited
3553367.77 3553367.77
Total 3553367.77 3553367.77
Note: The Company’s goodwill has been fully accrued for impairment reserves at period-end.
17. Deferred income tax assets
(1) Deferred income tax assets without the offset
Item
Ending balance Opening balance
Deductible
temporary
difference
Deferred
income tax
assets
Deductible
temporary
difference
Deferred
income tax
assets
Deferred income tax assets recognized from
assets impairment
85113683.09 12767052.45 65074900.25 9761235.04
Deferred income tax assets recognized from
accrual liability
137169182.74 20575377.41 158742319.21 23811347.88
Deferred income tax assets recognized from
Dismission welfare
14952250.56 2242837.58 16996022.45 2549403.37
Deferred income tax assets recognized from
deferred income
101680318.95 15252047.85 109766307.31 16464946.10
Deferred income tax assets recognized from
ir-reparable losses
369713431.79 55457014.77 295681201.10 44352180.17
Deferred income tax assets recognized from
changes in the fair value
2829301.90 424395.29
Accrued income tax assets 4516172.03 677425.80 3427103.89 514065.58
Total 715974341.06 107396151.15 649687854.21 97453178.14
The Company’s long-term equity investment impairment provisions are the investments in its subsidiaries Changmei
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Technology Co. Ltd. and Meiling Candy Washing Machine Co. Ltd. these two subsidiaries are expected to be cancelled in
2020 and the Company also confirmed deferred income tax assets while confirming the impairment provisions. The
subsidiaries have unrecovered losses at the consolidation level the deferred income tax assets recognized in the Company’s
long-term equity investment impairment provisions are adjusted to be the deferred income tax assets generated from the
recoverable losses.
(2) Deferred income tax liabilities without the offset
Item
Ending balance Opening balance
Taxable
temporary
differences
Deferred
income tax
liability
Taxable
temporary
differences
Deferred
income tax
liability
Recognized by fixed assets depreciation 32254417.40 4838162.61 36760223.60 5514033.54
Recognized by changes in fair value 4951504.00 742725.60
Total 32254417.40 4838162.61 41711727.60 6256759.14
(3) Details of unrecognized deferred income tax assets
Item Ending balance Opening balance
Deductible temporary difference 126832329.93 148160001.57
Deductible loss 863189499.12 721832411.79
Total 990021829.05 869992413.36
18. Short-term loans
(1) Category
Category Ending balance Opening balance
Loan in pledge 306192500.00 147438160.00
Guaranteed loan 75470009.60 46794941.14
Loan in credit 1128629500.00 909757944.82
Total 1510292009.60 1103991045.96
Short-term loans at Current period-end:
1) The Company entered into a Forfaiting Business Contract with Jiujiang Bank Co. Ltd. and term of
borrowing from 16 April 2019 to 16 April 2021. Fixed interest rate of 2.825% the loan amount is
5000000.00 Yuan.
2) The Company entered into a Contract for Loans in RMB with Huaining Road Branch of Hefei Science
&Technology Rural Commercial Bank contract agreed to has 12 months in terms and term of borrowing
from 19 August 2019 to 19 August 2020. Fixed interest rate of 4.5675% the loan amount is 5000000.00
Yuan.
3) The Company entered into a Contract for Loans of Working Capital with Anhui Branch of Bank of
Communication contract agreed to has 12 months in terms and interest counted from the date of loan entry
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
duration of credit is from 24 Sept. 2019 to 24 Sept. 2020; Fixed interest rate of 4.00 % the loan amount is
100000000.00 Yuan.
4) The Company entered into a Contract for Loans of Working Capital with Anhui Development Zone
Branch of Bank of China contract agreed to has 12 months in terms and counted from the actual withdrawal
date. The Company withdrawal on 26 September 2019. Term of borrowing from 26 September 2019 to 25
September 2020. every 12 months is a floating period based on floating rate method the loan amount is
50000000.00 Yuan.
5) The Company entered into a Contract for Opening the Domestic L/C with Bank of Jiujiang the forfaiting
cost is 3.3% opening charge is 0.15% and comprehensive cost is 3.45%. Term of borrowing from 23 October
2019 to 22 October 2020. Fixed interest rate of 3.3% the loan amount is 50000000.00 Yuan.
6) The Company entered into a Contract for Loans of Working Capital with Anhui Branch of Bank of
Communication contract agreed to has 12 months at most in terms and counted from the actual lending day.
The Company withdrawal on 26 November 2019. Term of borrowing from 26 November 2019 to 25
September 2020. Fixed interest rate of 4.00% the loan amount is 100000000.00 Yuan.
7) The Company entered into a Forfaiting Business Contract with Anhui Branch of Bank of Communication
applying a short-term loans of 100000000.00 yuan with bill pledge method. Term of borrowing from 27
December 2019 to 24 December 2020. Fixed interest rate of 3.25%.
8) The Company entered into a Contract for Loans of Working Capital with Anhui Development Zone
Branch of Bank of China contract agreed to has 12 months in terms and counted from the actual withdrawal
date. The Company withdrawal on 6 Jan. 2020. Term of borrowing from 6 Jan. 2020 to 6 Jan. 2021. every 12
months is a floating period based on floating rate method the loan amount is 30000000.00 Yuan.
9) The Company entered into a Forfaiting Business Contract with Anhui Branch of Bank of Communication
applying a short-term loans of 100000000.00 yuan with bill pledge method. Term of borrowing from 6
March 2020 to 1 March 2021. Fixed interest rate of 3.00%.
10) The company and China Construction Bank Co. Ltd. Hefei Luyang Branch signed the Cross-border
Financing Loan Business Contract contract agreed to has 12 months in terms Term of borrowing from
March 10 2020 to March 10 2021. Fixed interest rate of 3.08%. the loan amount is 30000000.00 Yuan.
11) The company signed the Cross-border Direct Loan Financing Contract" with China Guangfa Bank Co.
Ltd. Macau Branch contract agreed to has 12 months in terms Term of borrowing from March 19 2020 to
March 19 2021. Fixed interest rate of 2.95%. the loan amount is 50000000.00 Yuan.
12) The company and the Agricultural Bank of China Co. Ltd. Hefei Baohe District Branch signed the
Agricultural Bank of China Co. Ltd. International Trade Financing Contract Term of borrowing from March
20 2020 to August 28 2020. Fixed interest rate of 3.45%. the loan amount is 92000000.00 Yuan.
13) The company signed the Rongyida Business Contract" with Bank of China Co. Ltd. Hefei Branch Term
of borrowing from March 26 2020 to September 22 2020. Fixed interest rate of 3.13%. the loan amount is
33000000.00 Yuan.
14) The company and United Overseas Bank (China) Co. Ltd. Chengdu Branch signed the Simplified Export
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Invoice Financing (and Domestic Sales Financing) Application Term of borrowing from April 13 2020 to
October 10 2020. Fixed interest rate of 4.00%. the loan amount is 50000000.00 Yuan.
15) The company signed the Loan Contract with China Merchants Bank Co. Ltd. The loan period is from
April 21 2020 to April 9 2021 the loan interest rate is 0.65% and the loan amount is EUR 9500000.00.
16) The company and China Postal Savings Bank Co. Ltd. Hefei Branch signed the Working Capital Loan
Contract. The contract has an agreed period of 12 months. The loan period is from April 23 2020 to April 22
2021. The borrowing rate is 3.915 % the loan amount is 28000000.00 Yuan.
17) The company and China Everbright Bank Co. Ltd. Hefei Branch signed the Contract on the
Non-Recourse Transfer of Seller’s Bonds under Domestic Letter of Credit (Domestic Forfaiting Business)
and the loan period is from June 12 2020 to June 4 2021 the loan interest rate was 2.50% and the loan
amount was 50000000.00 Yuan.
18) Subsidiary Zhongshan Changhong and China Construction Bank Co. Ltd. Zhongshan Branch signed the
Export Account Receivable Risk Participation Cooperation Agreement. Subsidiary Zhongshan Changhong
applied Account receivable to Zhongshan Branch of China Construction Bank Apply for a short-term loan of
US$10000000.00 the loan period is from January 16 2020 to July 13 2020 and the borrowing rate is
2.60%.
19) Subsidiary Zhongshan Changhong and Bank of Communications Co. Ltd. Zhongshan Branch signed the
Comprehensive Credit Contract. Subsidiary Zhongshan Changhong applied for a short-term loan of
US$ 5000000.00 from Bank of Communications Co. Ltd. Zhongshan Branch by way of export invoice
financing. The loan period was 6 months. The loan period is from March 6 2020 to September 2 2020 and
the borrowing rate is 2.60%.
20) Subsidiary Changhong Ruba Trading Company (Private) Limited signed a loan agreement with Bank of
China Karachi Branch through CHANGHONG MEILING guarantee applied for a short-term loan of
439290000.00 rupees in December 2019 the loan period is from December 23 2019 to December 23 2020
the borrowing rate was 14.04%
21) Subsidiary Changhong Ruba Trading Company (Private) Limited and ICBC Lahore branch applied for a
short-term loan of 380000000.00 rupees. The loan period is from January 20 2020 to November 20 2020
and the principal is repaid in installments until the reporting period. The principal has been paid back
195000000.00 rupees and the remaining unpaid principal is 185000000.00 rupees. The borrowing rate is
based on the lending rate issued by the Central Bank of Pakistan plus 0.9% and the borrowing rate is
14.44%.
22) According to the RMB Short-term Loans Contract entered into by subsidiary Sichuan Changhong
Air-conditioner Co. Ltd. and Mianyang Branch of Bank of China Sichuan Changhong Air-conditioner Co.
Ltd. applying for a short-term loan of RMB 80000000.00 by credit. The loan period is from February 7
2020 to February 7 2021. The loan interest rate is 4.35%. On May 21 2020 the loan interest rate is reduced
to 4.29%. On June 3 2020 the early repayment is 50000000.00 Yuan until 2020. The balance of the loan
on June 30 2010 is 30000000.00 Yuan.
23) The "Working Capital Loan Contract" signed by the subsidiary Zhongke Meiling and Bank of China Co.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Ltd. Hefei Branch stipulates that the subsidiary Zhongke Meiling shall apply for a short-term loan of RMB
9200000.00 from Bank of China Co. Ltd. Hefei Branch by way of guarantee the guarantor is Changhong
Meiling Co. Ltd.; the loan period is from September 24 2019 to September 24 2020 adopting the floating
interest rate method with a floating period of every 12 months.
24) The "Working Capital Loan Contract" signed by the subsidiary Zhongke Meiling and Bank of
Communications Co. Ltd. Anhui Branch stipulates that the subsidiary Zhongke Meiling shall apply for a
short-term loan of RMB 20000000.00 from Bank of Communications Co. Ltd. Anhui Branch by way of
credit guarantee; the loan period is from February 28 2020 to February 28 2021 adopting the fixed interest
rate method and the borrowing rate is 1.65 percentage points lower than the one-year LPR interest rate
quoted on the loan market on the entry day.
25) The "Working Capital Loan Contract" signed by the subsidiary Zhongke Meiling and Industrial Bank Co.
Ltd. Hefei Branch stipulates that subsidiary Zhongke Meiling shall apply for a short-term loan of RMB
9900000.00 from Industrial Bank Co. Ltd. Hefei Branch by way of guarantee the guarantor is Changhong
Meiling Co. Ltd.; the loan period is from March 17 2020 to March 16 2021 and the fixed interest rate
method is adopted. The borrowing rate is the benchmark interest rate (1-year LPR) on the borrowing date
minus 1%.
26) The "Working Capital Loan Contract" signed by the subsidiary Zhongke Meiling and Industrial and
Commercial Bank of China Co. Ltd. Hefei Changjiang East Road Branch stipulates that subsidiary Zhongke
Meiling shall apply for a short-term loan of RMB 5000000.00 from ICBC Hefei Changjiang East Road
Branch by way of guarantee the guarantor is Changhong Meiling Co. Ltd.; the loan period is from March 18
2020 to March 15 2021 and the borrowing interest rate is 12 months for one period which shall be adjusted
for each period. The interest rate is determined by the pricing basis plus the number of floating points where
the pricing basis is the 1-year LRP of the previous working day before the effective date of the loan contract
and the number of floating points is minus 100 basis points (one basis point is 0.01%).
27) The "Working Capital Loan Contract" signed by the subsidiary Zhongke Meiling and the Feixi Branch of
China Construction Bank Co. Ltd. stipulates that the subsidiary Zhongke Meiling shall apply for a
short-term loan of RMB 30000000.00 from the Feixi Branch of China Construction Bank Co. Ltd. by way
of guarantee of which RMB 15000000.00 is guaranteed by Changhong Meiling Co. Ltd. and RMB
15000000.00 is guaranteed by the credit of the subsidiary Zhongke Meiling; the loan period is from March
13 2020 to March 12 2021 using a fixed interest rate method with the interest rate being 1-year LPR
minus 200 basis points.
28) The subsidiary Non-Ferrous Metals signed the "Current Loan Contract" with Industrial and Commercial
Bank of China Co. Ltd. Hefei Changjiang East Road Sub-branch. The contract has an agreed period of 12
months starting from the actual loan issuance date and the company's actual withdrawal is on March 27
2020 the loan period is from 27 March 2020 to 5 March 2021 with fixed interest rate of 4.05% loans
amounted to 10000000.00 Yuan.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(2) No overdue short-term loans outstanding at period-end.
19. Tradable financial liability
Item Ending balance Opening balance
Tradable financial liability 6027595.47 1081534.93
Including: Derivative financial liability 6027595.47 1081534.93
20. Note payable
Category Ending balance Opening balance
Bank acceptance 3003662903.31 3298019669.51
Trade acceptance 155586100.00 192251812.89
Total 3159249003.31 3490271482.40
Note: No notes expired at period-end without paid
21. Account payable
(1) Account age
Item Ending balance Opening balance
Total 3244631623.09 2343116374.58
Including: over one year 88000714.47 76194618.91
(2) No major account payable with over one year book age at period-end.
22. Contract liabilities
Item Ending balance Opening balance
Advance payment for goods 268622617.93 425149194.97
Total 268622617.93 425149194.97
23. Wages payable
(1) Category
Item Opening balance Current increased Current decreased Ending balance
Short-term compensation 177402906.03 631531240.97 641672431.59 167261715.41
After-service welfare- defined
contribution plans
7453793.72 46642779.54 40911175.61 13185397.65
Dismiss welfare 11650474.93 1952027.68 10054550.05 3547952.56
Total 196507174.68 680126048.19 692638157.25 183995065.62
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(2) Short-term compensation
Item Opening balance Current increased Current decreased Ending balance
Wages bonuses allowances and subsidies 170288735.22 554031789.40 580568531.22 143751993.40
Welfare for workers and staff 639308.36 17986118.79 18282576.65 342850.50
Social insurance 1770245.68 25856692.50 22154475.34 5472462.84
Including: Medical insurance 1617788.73 23966530.25 20477729.12 5106589.86
Work injury insurance 63191.51 824037.10 630365.32 256863.29
Maternity insurance 89265.44 1066125.15 1046380.90 109009.69
Housing accumulation fund 3586116.49 32724865.84 19358492.59 16952489.74
Labor union expenditure and
personnel education expense
1118500.28 931774.44 1308355.79 741918.93
Total 177402906.03 631531240.97 641672431.59 167261715.41
(3) Defined contribution plans
Item Opening balance Current increased
Current
decreased
Ending balance
Basic endowment insurance 5213876.36 44567454.27 38969962.83 10811367.80
Unemployment insurance 2239917.36 2075325.27 1941212.78 2374029.85
Total 7453793.72 46642779.54 40911175.61 13185397.65
24. Tax payable
Item Ending balance Opening balance
Value-added tax 31535409.67 31073647.86
Enterprise income tax 8004887.52 2100004.27
Individual income tax 1850199.12 3080366.29
Urban maintenance and construction tax 1362792.32 3279877.94
Real estate tax 6199771.92 6023111.75
Land use tax 2729230.57 2757210.52
Educational surtax 1043618.58 2389535.13
Stamp tax 2074945.31 3033620.58
Construction fund of Water Conservancy Projects 634948.45 759372.01
Treatment fund for abandon electrics & electronics 15651773.00 12489459.00
Other 2035762.22 1572186.31
Total 73123338.68 68558391.66
25. Other account payable
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Ending balance Opening balance
Interest payable 7905522.29 12340385.61
Dividend payable 4466628.25 3579491.94
Other account payable 833403504.91 673557725.66
Total 845775655.45 689477603.21
25.1 Interest payable
(1) Category
Item Ending balance Opening balance
Interest on long-term borrowings for repayment of principal of
installment maturity
663803.89 466340.02
Interest of short-term loans 7241718.40 11874045.59
Total 7905522.29 12340385.61
(2) No significant overdue and unpaid interest at period-end.
25.2 Dividends payable
Item Ending balance Opening balance
China Life Insurance (Group) Company 263813.22 239221.62
People's Insurance Group of China Co. Ltd. 395719.83 358832.43
BOC- Fullgoal Tianyi Securities Investment Fund 153697.50 153697.50
Hefei Branch of BOC 329766.50 299027.00
Hefei collective industry association 329765.99 299026.54
Entrust Investment Wuhu of Provincial ABC 263813.22 239221.62
Other units 2730051.99 1990465.23
Total 4466628.25 3579491.94
Note: Balance at period-end refers to the common dividends that not receiving by shareholders.
25.3 Other account payable
(1) Other account payable by nature
Nature Ending balance Opening balance
1.Accrued expenses (expenses occurred without reimbursed) 563477651.39 487992668.34
2. Receivables received temporary and deducted temporary 14935393.23 14950208.02
3.Deposit margin 145704728.00 114946522.03
4.Not the come-and-go with related parties in statement scope 40584681.61 14101588.30
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Nature Ending balance Opening balance
5. Other 68701050.68 41566738.97
Total 833403504.91 673557725.66
(2) At end of the period the major other account payable with account age over one year mainly refers to the
margin.
26. Non-current liability due within one year
(1) Classification of non-current liability due within one year
Item Ending balance Opening balance
Long term borrowings due within one year 305000000.00
Long term account payable due within one year 1677346.75 1708193.90
Total 306677346.75 1708193.90
27. Long term borrowings
(1) Category of long term borrowings
Category Ending amount Opening amount
Loan in mortgage 192640000.00 101280000.00
Loan in credit 100000000.00 300000000.00
Total 292640000.00 401280000.00
(2) Long-term borrowings at period-end
Loan from
Borrowing
day
Returning
day
Foreign
currency
Interest
rate
Ending amount
(RMB)
Opening
amount (RMB)
Ministry of Finance of Hefei
Note 1 2006/11/9 2021/11/8 RMB 1.80% 640000.00 1280000.00
EIBC (Export-Import Bank of
China) Anhui Province
Branch
Note 2
2019/12/23 2026/12/23 RMB 4.605% 94000000.00 100000000.00
EIBC (Export-Import Bank of
China) Anhui Province
Branch
Note 3
2020/3/26 2026/12/25 RMB 4.555% 98000000.00
Anhui Branch of Bank of
Communications Co. Ltd
Note
4
2020/6/15 2021/7/15 RMB 3.75% 100000000.00
EIBC (Export-Import Bank of
China) Anhui Province
Branch
2019/5/30 2021/5/30 RMB 3.685% 300000000.00
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Total 292640000.00 401280000.00
Note 1: In August of 2006 the Company signed Asset Mortgage Agreement with Ministry of Finance of
Hefei. It takes five industry crusher chambers which cover an area of 2322.98 square meters as mortgage for
the Company to get the lending of treasury bond fund which has 15-year term and worthy of RMB 7040000
from the Ministry of Finance of Hefei. The capital on-lending began to bear interest from the appropriate
date (November 9 2006) which would be paid by stages in the loan period to Ministry of Finance of Hefei
by the Company. The first four years were grace period during which the annual interest rate was subject to
floating interest rate (the annual interest rate was the annual interest rate of one year fixed deposit plus 0.3%).
On 1 March 2013 according to the Letter Relating to Ceasing Process of Other Securities in respect of the
Properties in Feidong Longgang Industrial Park of Hefei Meiling Co. Ltd. (HCJ (2006) No.85) issued by the
finance office of Hefei Meiling commenced the national purchase of its land parcels in Longgang in
compliance with the land planning of Hefei municipal government which required its properties in
Longgang land parcel to be unrestricted. The real estate for mortgage lifted in 2006 of the Company with
registration No. HGYJCZ No.0121 which was used as the security for treasury bonds lending capital (details
were set out in Note).Note 2: The Company and the Anhui Branch of the Export-Import Bank signed the "Loan Contract
(Promoting Domestic Opening-up Loans-Fixed Assets)" which pledged the Company's fixed assets and
intangible assets as long-term loans of 100 million yuan. The contract agreed period is 84 months and the
loan term is from December 23 2019 to December 23 2026. The loan interest rate is determined by the
quoted interest rate of loan market with a term of more than 5 years minus 0.195% which fluctuates annually.The loan amount is 100000000.00 yuan according to the repayment schedule agreed with the bank
1000000.00 yuan has been repaid and the planned repayment of 5000000.00 yuan before June 30 2021
has been reclassified to non-current liabilities due within one year. The ending balance is 94000000.00
yuan.Note 3: the company signed the loan contract (promoting domestic opening up loans - fixed assets) with
Anhui Branch of export import bank which mortgaged the fixed assets and intangible assets of the
company for 98000000.00 yuan of long-term loan. The loan term is from March 26 2020 to December
25 2026. The loan interest rate is determined by reducing 0.195% of the market quotation interest rate
of loans with a term of more than 5 years. The loan amount is 98000000.00 Yuan.Note 4: the company signed the working capital loan contract with Anhui Branch of Bank of
Communications Co. Ltd. the contract period is 13 months with the interest from the date of loan entry
the loan period is from June 15 2020 to July 15 2021 the loan interest rate is 3.75% and the loan
amount is 100000000.00 yuan.
28. Long-term account payable
Item Balance at year-end Opening balance
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Balance at year-end Opening balance
Long-term account payable 761266.30 1486921.44
Special payable 1530000.00 1530000.00
Total 2291266.30 3016921.44
28.1 Classify by nature
Nature Ending balance Opening balance
Financing lease 761266.30 1486921.44
28.2 Special payable
Item
Opening
balance
Current
increased
Current
decreased
Ending
balance
Reason
Zhongshan Special funds
for Technical renovation
1530000.00 1530000.00
Technology plan project
in Zhongshan City
29. Long-term wage payable
Item Ending balance Opening balance
Dismissal welfare 11962977.24 13774110.61
According to the internal early retirement policy the long-term payable dismissal welfare bears by the Company up to end of
the period amounting to 11962977.24 yuan.
30. Accrual liability
Item Ending balance Opening balance Reason
Product quality guarantee 15427220.80 15427220.80 Guarantee of product
Guarantee fund for quality service 129098786.70 150671923.17 Guarantee of product
Total 144526007.50 166099143.97
Product quality guarantee is the maintenance expense provided by the Company under the national policy while quality service
special guarantee capital is the warranty costs provided for product quality in addition to such policy. Parts of the commitments
on product quality assurance beyond the national three guarantees policy are expired in period the accrual liability that have
not been anticipated has written-off in Current period actually 21198636.00 Yuan written-off.
31. Deferred income
(1) Classification of deferred income
Item Ending amount Opening amount
Government subsidies---subsidies of development project 134147854.46 135392959.96
Government subsidies---subsidies of Relocation 42453885.49 44578011.96
Total 176601739.95 179970971.92
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(2) Government subsidy
Government subsidy Opening amount
New subsidy in
the period Amount
reckoned into
other income
Oth
er
cha
nge
s
Ending amount
Assets
related/Income
related
Demolition compensation
of Changhong Meiling
40613394.80 1234182.17 39379212.63
Assets
related
Technical transformation of
the Athena project
4877812.50 2143125.00 2734687.50
Assets
related
Freezer project of
Changhong Meiling
734062.42 367031.26 367031.16
Assets
related
Promoting the new industry
( annual output of 0.6
million medium& large
volume environmental
protection and energy
saving freezer)
1065443.73 152206.26 913237.47
Assets
related
Research and application of
the MCU chip for inverter
control
2300000.00 2300000.00
Assets
related
Subsidies for intelligent
transformation & upgrading
of enterprises from the new
industrialization policy in
economic development
zone
3886414.58 302837.50 3583577.08
Assets
related
Subsidy for industrial
development policy from
Hefei for first half of 2018
8750000.00 625000.00 8125000.00
Assets
related
Policy funds for
manufacturing a strong
province subsidy for
equipment for the
technological
transformation of industrial
strong base
4375000.00 312500.00 4062500.00
Assets
related
Subsidy for purchase of R
& D instruments and
equipment
1062687.50 280900.00 73500.00 1270087.50
Assets
related
Hefei City Industrial
Development Policy
Subsidy Funds in the
Second Half of 2019
7154200.00 1341412.50 5812787.50
Assets
related
New plant construction
government subsidy-low
temperature refrigeration
equipment industrialization
project
3791666.67 250000.00 3541666.67
Assets
related
Subsidy for equipment
purchasing of the technical
renovation from Hefei for
year of 2017
1358630.00 89580.00 1269050.00
Assets
related
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Government subsidy Opening amount
New subsidy in
the period Amount
reckoned into
other income
Oth
er
cha
nge
s
Ending amount
Assets
related/Income
related
Equipment subsidy for the
industrial base technical
renovation from Economic
and Information
Commission
1782083.33 117500.00 1664583.33
Assets
related
Subsidy for characteristic
innovation and
entrepreneurship carrier
project from Hefei
economic & development
zone
2000000.00 2000000.00
Assets
related
Upgrade project for the
production line of
Mianyang Meiling
Intelligent Refrigerator
1514166.68 98749.98 1415416.70
Assets
related
Demolition compensation
of Jiangxi Meiling
3964617.16 889944.30 3074672.86
Assets
related
Subsidy for the
development on production
line technical reform for
green-friendly high-quality
metal pipe
129493.23 20446.32 109046.91
Assets
related
Refrigerator evaporator
workshop
186295.31 14516.50 171778.81
Assets
related
Technical transformation of
refrigerator evaporator
workshop
454687.50 30312.50 424375.00
Assets
related
Special fund government
subsidy CZ059001
4200000.00 4200000.00
Assets
related
Centre for external
cooperation of the
environmental protection
2538300.00 2538300.00
Assets
related
Government subsidy
CZ028001 technical
improvement topic
478116.29 47825.00 430291.29
Assets
related
Government subsidy
CZ028001- subsidy in
equipment renewal
286596.77 30601.92 255994.85
Assets
related
Subsidy from Zhongshan
Finance Bureau (CZ028001
provincial special project
2019)
1703353.19 152823.24 1550529.95
Assets
related
Research and application of
the VISA (variable
frequency volume
integrated intelligent
air-conditioner)
5872093.04 704651.16 5167441.88
Assets
related
Promotion of the
energy-saving room air
conditioner
1069072.21 105154.62 963917.59
Assets
related
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Government subsidy Opening amount
New subsidy in
the period Amount
reckoned into
other income
Oth
er
cha
nge
s
Ending amount
Assets
related/Income
related
Adaptability improvement
on new coolants production
11824908.42 1182490.86 10642417.56
Assets
related
Industrialization of
intelligent white household
appliances software
platform and typical
application research and
development
3030303.05 363636.36 2666666.69
Assets
related
Special funds for strategic
emerging industry and
high-end growth industry
2000000.00 2000000.00
Assets
related
Key chip and module for
transducer used and
detection capacity building
6840000.00 6840000.00
Assets
related
Changhong Air
Conditioner- relocation of
production base and
upgrading & expansion
6880000.00 6880000.00
Assets
related
Demonstration factory
construction for the
intelligent manufacturing of
intelligent air-conditioner
49500000.00 49500000.00
Assets
related
2018 Zhongshan Special
fund for industrial
development - Special topic
of technical transformation
730232.55 132861.90 597370.65
Assets
related
Special fund for technical
improvement
171540.99 21442.62 150098.37
Assets
related
Total 179970971.92 7435100.00 10804331.97 - 176601739.95
32. Share capital
Item Opening balance
Change during the period (+、-)
Ending balance
New shares issued
Bonus
share
Shares transferred
from capital
reserve
Other Subtotal
Total shares 1044597881.00 1044597881.00
33. Capital reserve
Item Opening amount Current increased Current decreased Ending amount
Share premium 2636193356.40 559888.62 2635633467.78
Other capital reserve 48173262.70 48173262.70
Total 2684366619.10 559888.62 2683806730.48
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Note: Changes in equity premium for this period are: Due to the acquisition of some minority shareholders’ shares of Shanghai
Meiling Chengdu Meiling and Ridian Technology the difference between the newly acquired long-term equity investment and
the share of the subsidiary’s net assets calculated on the basis of the newly-added shareholding ratio was caused by the
continuous calculation of the net assets from the date of purchase.
34. Other comprehensive income
Item
Opening
balance
Current amount
Ending balance
Account before
income tax in the
period
Less:
written
in other
compreh
ensive
income
in
previous
period
and
carried
forward
to gains
and
losses in
current
period
Less:
Income
tax
expense
s
Belong to
parent
company after
tax
Belong to
minority
shareholders after
tax
Other comprehensive income that will re-classified to gains/losses later
Including: Translation
differences arising on
translation of foreign
currency financial
statements
-18931430.36 -1009706.23 -630002.84 -379703.39 -19561433.20
35. Surplus reserves
Item Opening amount Current increased Current decreased Ending amount
Statutory surplus reserve 295179158.04 295179158.04
Discretionary surplus reserve 115607702.16 115607702.16
Total 410786860.20 410786860.20
36. Retained profit
Item Current period Last period
Amount at the end of last year 884127743.42 904232582.87
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
Add: Adjustment from undistributed profit at period-begin -2734328.91
Including: retroactive adjustment by Accounting Standards for
Business Enterprise
Change of accounting policy -2734328.91
Correction of former material error
Change of combination scope under common control
Current opening balance 884127743.42 901498253.96
Add: net profit attributable to shareholders of parent company for this
period
-210130580.93 56441479.14
Less: withdraw of statutory surplus reserve 11136116.82
Withdraw of discretionary surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares 52229894.05 62675872.86
Dividend of ordinary shares transferred to share capital
Current ending balance 621767268.44 884127743.42
37. Operation income and operation cost
(1) Operation income and operation cost
Item Current period Last period
Main business income 6268491126.30 8543968799.83
Other business income 527369610.69 589193881.11
Total 6795860736.99 9133162680.94
Main business cost 5248478697.42 6942346945.06
Other business cost 505371191.93 548208592.19
Total 5753849889.35 7490555537.25
(2) Main business classified according to product
Category
Current period Last period
Operation income Operation cost Operation income Operation cost
Refrigerator
freezer
2920923251.77 2377765236.89 3819493665.57 2965821052.02
Air-conditioner 2595885454.11 2247295670.56 3990707709.01 3364231232.05
Washing
machine
179892246.84 148034172.04 205216507.29 161545734.09
Small 512769500.40 426489024.05 456750621.11 387949800.00
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Category
Current period Last period
Operation income Operation cost Operation income Operation cost
household
appliances and
kitchen and
bathroom
Other 59020673.18 48894593.88 71800296.85 62799126.90
Total 6268491126.30 5248478697.42 8543968799.83 6942346945.06
(3) Main business classified according to sales region
Region
Current period Last period
Operation income Operation cost Operation income Operation cost
Domestic 3936852798.41 3251061917.12 6416709241.89 5079123427.39
Overseas 2331638327.89 1997416780.30 2127259557.94 1863223517.67
Total 6268491126.30 5248478697.42 8543968799.83 6942346945.06
Top five clients have income in sales of RMB 3003456419.67 in total a 44.20% in total operation income.
38. Business tax and extra charges
Item Current period Last period
Treatment fund for abandon electrics & electronics 23183817.00 31474957.00
Real estate tax 8958027.86 7655849.19
City construction tax 5891358.89 17260016.63
Stamp duty 5581068.92 4952161.86
Extra charge for education and local education surcharge 4600301.45 12444121.82
Land use tax 3429180.26 3523971.33
Water fund 3328943.43 3408253.81
Other 332015.42 -79571.90
Total 55304713.23 80639759.74
39. Sales expense
Item Current period Last period
Salary and extra charge 255283621.81 313475070.08
Transport expenses 211841082.72 286457370.36
Market support fee 135417268.91 194977090.49
Air conditioner installation fee 114700395.35 181806817.80
National three guarantees expense 90184296.10 102855535.34
Storage rental fee 47400139.04 63667118.95
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
Travel expenses 12373271.22 24070080.12
Depreciation expenses 3944399.06 3629916.41
Operation activities expenses 2617936.49 12174172.67
Vehicle consumption 2050607.05 2398835.38
Communication expenses 788152.95 3134174.08
House-lease expenses 781344.62 9326474.23
Advertising fee 352891.37 14704579.10
Other 46248021.54 31714521.86
Total 923983428.23 1244391756.87
40. Administration expense
Item Current period Last period
Salary and social insurance etc. 79407413.87 88854543.67
Intangible assets amortization 10046746.48 12746300.56
Depreciation 9232289.11 9675666.50
Water and electricity fee 1773141.17 8528459.15
Property insurance fee 1425753.98 2142321.97
Domestic travelling fee 1315916.59 3968094.14
Business activities fee 1195638.78 2604837.36
Office fee 803009.47 1499270.12
Inspection and authentication fee 412574.00 1732091.97
Other 29857209.47 32641457.26
Total 135469692.92 164393042.70
41. R&D expenses
Item Current period Last period
Amortized intangible assets 53871905.01 40270721.67
Salary and social insurance etc. 50278576.62 45300688.74
Trial fee of R&D 31728340.10 17704764.73
Depreciation 7707855.52 4107066.78
water and electricity 5126916.81 -
Inspection and authentication fee 4446068.74 3314163.26
Cost of mould 2727245.15 3381991.85
Software royalty 2690872.94 1868153.84
Domestic travel expenses 588805.86 1069553.39
Other 8722562.14 3030936.60
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
Total 167889148.89 120048040.86
42. Financial expenses
Item Current period Last period
Interest expenditure 45498046.65 57892999.31
Less: Interest income 74784016.69 59401426.37
Add: Exchange loss 9367991.95 10608433.65
Commission charges 10335558.03 13172852.69
Discount expenditure -3285693.99 -4610181.50
Total -12868114.05 17662677.78
43. Other income
Item Current period Last period
Corporate policy funds 28310000.00
Subsidy for employment stable 4457036.59
R290 air conditioning production IOC subsidy 2403000.00
Special funds for technical transformation of the Athena project 2143125.00 2143125.00
Immediate refund of VAT for software products 2071200.78 2649557.46
Special funds for export credit insurance 1475997.00
Hefei City Industrial Development Policy Subsidy Funds in the Second
Half of 2019
1341412.50
Demolition compensation of CHANGHONG MEILING 1234182.17 1097927.30
Adaptability improvement on new coolants production 1182490.86 1182490.86
Demolition compensation of Jiangxi Meiling 889944.30 898940.16
Research and application of the VISA (variable frequency volume
integrated intelligent air-conditioner)
704651.16 704651.16
Technology Innovation and Enterprise Development Fund 640240.37 671307.09
2025 Industrial Development Fund 630000.00
Subsidy for industrial development policy from Hefei for first half of
2018
625000.00 625000.00
Feidong County's policy awards for promoting high-quality economic
development
500000.00
Special subsidy funds for epidemic prevention and control 500000.00
Freezer project of Changhong Meiling 367031.26 367031.26
Industrialization of intelligent white household appliances software
platform and typical application research and development
363636.36 363636.36
Policy funds for manufacturing a strong province subsidy for
equipment for the technological transformation of industrial strong
base
312500.00
Subsidies for intelligent transformation & upgrading of enterprises 302837.50 302837.50
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
from the new industrialization policy in economic development zone
Government subsidy for new plant construction - industrialization of
cryogenic refrigeration equipment
250000.00 250000.00
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial
special project 2019)
152823.24
Promoting the new industry ( annual output of 0.6 million medium&
large volume environmental protection and energy saving freezer)
152206.26 152206.26
Special fund for technical improvement 132861.90 132861.90
Equipment subsidy for the industrial base technical renovation from
Economic and Information Commission
117500.00 117500.00
Energy-saving smart air conditioner industrialization Item 105154.62 105154.62
Upgrade and transformation of smart refrigerator production line Item 98749.98
Subsidy for equipment purchasing for Hefei Tech. Improvement
project in 2017
89580.00 89580.00
Subsidy for purchase of R & D instruments and equipment 73500.00 39812.50
Government subsidy CZ028001 technical improvement topic 47825.00 48363.50
Technical transformation of refrigerator evaporator workshop 44829.00 14516.52
Government subsidy CZ028001- subsidy in equipment renewal 30601.92 30601.92
Special fund for technical improvement 21442.62 21442.62
Subsidy for the development on production line technical reform for
green-friendly high-quality metal pipe
20446.32 20446.30
Other sporadic items 3060318.49 4173842.17
Supplementary fund for characteristic dual creative carriers of
borrowing and transferring
4000000.00
Economic and Trade Development Bureau corporate policy subsidy
funds
3000000.00
Special funds for provincial-level innovation-driven development 2950000.00
Enterprise home appliance logistics subsidy 1753000.00
Special funds for steady growth of foreign trade in Zhongshan for 2017 1532797.00
Research and Industrial Application of Key Energy-saving
Comfortable Control Technology of Inverter Air Conditioner
1440000.00
Special subsidy for Nanjing Port 1234485.00
Special funds for foreign economic & trade development and port
construction for 2018
1057163.36
Subsidy for E-business sales 1000000.00
Subsidy for home appliance standards customization project from
China Household Appliances Research Institute
574000.00
Technical Transformation of Industrial Enterprises in Jingdezhen
High-tech Zone Item
500000.00
Innovation development project for the E-Business 38037.66
Government subsidy for the project of ministry of finance of science
and education entrepreneurship park in Mianyang Technology Town
28893.12
Total 54852125.20 35311208.60
44. Investment income
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
Long-term equity investment income by equity method 209880.54 -8822000.32
Investment income obtained from disposal of tradable financial
assets
5402087.72 -11141590.61
Income from financial products 1539918.00 31627554.38
Total 7151886.26 11663963.45
45. Changes in fair value gains
Item Current period Last period
Tradable financial assets -4785270.15 -6550413.41
Including: Income of fair value changes from derivative financial
instruments
-4785270.15 -6550413.41
Tradable financial liability -4939481.97 9915203.65
Including: Income of fair value changes from derivative financial
instruments
-4939481.97 9915203.65
Total -9724752.12 3364790.24
46. Credit impairment loss
Item Current period Last period
Note receivable bad debt loss -451763.04 17262634.10
Account receivable bad debt loss -22539727.97 -7933111.89
Other account receivable bad debt loss 721269.82 215973.74
Total -22270221.19 9545495.95
47. Assets impairment loss
Item Current period Last period
Loss on inventory valuation -26583248.58 -10615932.01
Total -26583248.58 -10615932.01
48. Income from assets disposal
Item Current period Last period
Amount reckoned
into
non-recurring
gains/losses in the
period
Income from non-current assets disposal -178704.98 -937771.74 -178704.98
Including: income classify to assets ready for sale
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
Amount reckoned
into
non-recurring
gains/losses in the
period
income not classify as to assets ready for sale
Including: Income from fixed assets disposal -178704.98 -937771.74 -178704.98
Income from intangible assets disposal
Total -178704.98 -937771.74 -178704.98
49. Non-operation income
(1) Non-operation income
Item Current period Last period
Amount reckoned
into non-recurring
gains/losses in the
period
Government subsidy 110000.00
Income of penalty 366979.53 379815.74 366979.53
Other 3078629.68 1986381.28 3078629.68
Total 3445609.21 2476197.02 3445609.21
(2) Government subsidy
Item
Current
period
Last period Resource and basis Assets/income related
Nantou Town Zhongshan City 2018
Outstanding Industrial Development
Enterprise Award
20000.00 Income related
Municipal industrial development
project award for 2018
90000.00 Chuan CJ (2019) No.: 20 Income related
Total 110000.00
50. Non-operating expenditure
Item Current period Last period
Amount reckoned
into non-recurring
gains/losses in the
period
Penalties and late fees 77.03 11517.95 77.03
Relocation expenses 2131394.09
Other 959477.10 219614.33 959477.10
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
Amount reckoned
into non-recurring
gains/losses in the
period
Total 959554.13 2362526.37 959554.13
51. Income tax expenses
Item Current period Last period
Current income tax expenses 8498558.12 11572518.08
Deferred income tax expenses -11361569.54 6128742.26
Total -2863011.42 17701260.34
52. Other comprehensive income
Found more in 34. Other comprehensive income in VI
53. Items of cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing
1) Cash received from other activities relating to operation
Item Current period Last period
Government subsidy 49374979.95 36458594.62
Cash deposit deposit 11794014.82 3265073.83
Collection of restriction fund 4801740.89 26400639.34
Rental income 2537602.16 4026499.54
Compensations 1589695.33 1368694.98
Other 4104674.84 5727441.00
Total 74202707.99 77246943.31
2) Cash paid for other activities relating to operation
Item Current period Last period
Market support fee 103452106.47 128402307.99
Rental fees 56501840.38 94079187.33
Reserve funds margin 33991028.48 49884342.29
Service support fee 27112533.75 590374.72
Convert to restricted funds 23523106.48 35263814.30
Travel expenses 15537025.21 30084107.15
Handling fee 9596183.72 11238128.64
Inspection and certification fee 8194323.28 8876393.23
Business activity fee 7486994.76 15643474.01
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
advertising fee 4535316.89 22969354.76
Shuttle transportation fee 4280786.69 4142833.60
Office expenses 3977096.29 4614465.23
Vehicle cost 2647658.04 3044978.86
Conference organization fee 417753.18 8454207.14
Fines and late fees 77.03 12959457.95
other fee 104511778.87 90803856.78
Total 405765609.52 521051283.98
3) Cash received from other activities relating to investment
Item Current period Last period
Interest income from bank deposits 62758263.18 52972498.64
Forward foreign exchange delivery income 5402087.72
Other 230611.63 1934235.51
Total 68390962.53 54906734.15
4) Cash paid for other activities relating to investment
Item Current period Last period
Loses of forward exchange settlement 11141590.61
Total 11141590.61
5) Cash paid for other activities relating to financing
Item Current period Last period
Handling charge of dividend 36893.14 44620.40
Loan deposit 24750000.00
Financing lease 893318.70 647028.80
Total 930211.84 25441649.20
(2) Supplementary of the consolidated cash flow statement
Item Current period Last period
1. Net profit is adjusted to cash flow of operation activities:
Net profit -219171870.49 46216030.54
Add: Ending balance of assets impairment 48853469.77 1070436.06
Depreciation of fixed assets consumption of oil gas assets and
depreciation of productive biological assets
104594561.21 89438431.78
Amortization of intangible assets 66064785.04 54522230.54
Amortization of long-term retained expense
Loss from disposal of fixed assets intangible assets and other 178704.98 937771.74
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
long term assets (gain is listed with “-”)
Loss from discarding fixed assets as useless (gain is listed with
“-”)
Loss from change of fair value(gain is listed with “-”) 9724752.12 -3364790.24
Financial expense (gain is listed with “-”) -19917978.09 -2486261.85
Investment loss (gain is listed with “-”) -7151886.26 -11663963.45
Decrease of deferred income tax assets (increase is listed with
“-”)
-9942973.01 6666548.00
Increase of deferred income tax liabilities (decrease is listed
with “-”)
-1418596.53 -251195.56
Decrease of inventories (increase is listed with “-”) -424221441.03 79201887.77
Decrease of operational accounts receivable (increase is listed
with “-”)
-478954328.10 -365235586.93
Increase of operational accounts payable (decrease is listed with
“-”)
543257841.98 478432461.79
Other
Net cash flow arising from operation activities -388104958.41 373484000.19
2. Major investment and financing activities that do not involve
cash receipts:
Conversion of debt into capital
Convertible bonds due within one year
Financing lease of fixed assets
3. Net change in cash and cash equivalents:
Ending balance of cash 4792468168.07 4265961763.00
Less: Opening balance of cash 5385807475.51 4484643187.93
Add: Ending balance of cash equivalents
Less: Balance of cash equivalents at period-begin
Net increase in cash and cash equivalents -593339307.44 -218681424.93
(3) No net cash paid for subsidiary obtained in the period
(4) No net cash received from subsidiary disposal in the period
(5) Cash and cash equivalent
Item Ending balance Opening balance
Cash 4792468168.07 5385807475.51
Including: cash in stock 128714.24 44818.07
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Ending balance Opening balance
Bank deposits available for payment at any time 4552864202.70 4771094609.77
Other monetary fund available for payment at any time 239475251.13 614668047.67
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at period-end 4792468168.07 5385807475.51
Including: using the restricted cash and cash equivalents of the
parent company or subsidiary of the group
54. Assets with ownership or the right to use restricted
Item Ending book value Reasons
Monetary fund 114265125.97 Margin
Note receivable
note 1
331387334.54 Pledged
Account receivable
note 2
136802022.65 Pledged
Fixed assets
note 3 320318295.22 Pledged
Intangible assets
note 3
293786459.23 Pledged
Total 1196559237.61
Note 1: The note receivable was pledged for: short-term financing from the bank; with purpose of improving the note
utilization the Company draw up bank acceptance by pledge parts of the outstanding notes receivable to the bank
Note 2: Pledge of the account receivable refers to the account pledge for export bill financing.Note 3: The mortgage of fixed assets and intangible assets is the mortgage of houses and buildings and land use rights. For
details see Note VI. 28. Long-term loans.
55. Foreign currency
(1) Foreign currency
Item
Ending foreign currency
balance
Exchange rate
Ending RMB converted
balance
Monetary fund
Including: USD 27712637.84 7.0795 196191619.60
Euro 2496834.25 7.9610 19877297.44
AUD 1707640.61 4.8657 8308866.91
Pakistan Rupi 49438968.09 0.04224 2088302.01
IDR 5875467340.00 0.000497 2920107.27
HKD 3297.10 0.9134 3011.57
Account receivable
Including: USD 91014446.30 7.0795 644336772.58
Euro 1902952.39 7.9610 15149403.98
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item
Ending foreign currency
balance
Exchange rate
Ending RMB converted
balance
AUD 9604143.04 4.8657 46730878.79
Pakistan Rupi 1792503789.55 0.04224 75715360.07
IDR 31735370142.00 0.000497 15772478.96
Other account receivable
Including: USD 6734.77 7.0795 47678.80
Pakistan Rupi 19543654.00 0.04224 825523.94
IDR 1018687980.00 0.000497 506287.93
Account payable
Including: USD 466757.91 7.0795 3304412.62
Euro 92339.42 7.9610 735114.12
Pakistan Rupi 656271820.94 0.04224 27720921.72
IDR 15293339741.00 0.000497 7600789.85
Other account payable
Including: USD 21827.00 7.0795 154524.25
Pakistan Rupi 269784676.00 0.04224 11395704.71
IDR 8989490554.00 0.000497 4467776.81
Short-term loans
Including: USD 15000000.00 7.0795 106192500.00
Euro 9500000.00 7.9610 75629500.00
Pakistan Rupi 624290000.00 0.04224 26370009.60
(2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited mainly operates in
Lahore Pakistan; Recording currency is Pakistan Rupi. CHANGHONG MEILING ELECTRIC INDONESIA PT mainly
operates in Jakarta; Recording currency is IDR.
57. Government subsidy
(1) Government subsidy
Category Amount Item
Amount reckoned
into current
gain/loss
Corporate policy funds 28310000.00 Other income 28310000.00
Hefei City Industrial Development Policy Subsidy Funds in
the Second Half of 2019
7154200.00 Deferred income 1341412.50
Subsidy for employment stable 4457036.59 Other income 4457036.59
R290 air conditioning production IOC subsidy 2403000.00 Other income 2403000.00
Immediate refund of VAT for software products 2071200.78 Other income 2071200.78
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Category Amount Item
Amount reckoned
into current
gain/loss
Special funds for export credit insurance 1475997.00 Other income 1475997.00
Technology Innovation and Enterprise Development Fund 640240.37 Other income 640240.37
2025 Industrial Development Fund 630000.00 Other income 630000.00
Feidong County's policy awards for promoting high-quality
economic development
500000.00 Other income 500000.00
Special subsidy funds for epidemic prevention and control 500000.00 Other income 500000.00
Purchase of R&D equipment subsidies 280900.00 Deferred income 73500.00
Other sporadic projects 2984964.79 Other income 2984964.79
Total 51407539.53 45387352.03
(2) Refund of government subsidy: nil
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
VII. Changes of consolidation rage
1. Enterprise combined under the different control: Nil
2. Enterprise combined under the same control: Nil
3. Reversed takeover: Nil
4. Disposal of subsidiary: Nil
5. Subsidiary liquidated
Subsidiary
Price of
the equity
disposed
Ratio of the equity
disposed
Way of the equity
disposed
Time point of control right
lose
Determination basis for the time
point of control right lose
Difference between the disposal price and
proportion of the subsidiary’s net assets enjoy
in aspect of the consolidated financial
statement which is respond to the disposal
investment
Other comprehensive income
transferred into investment
income which related with
the equity investment of
original subsidiary
Guangxi Huidian Household
Appliances Co. Ltd.
100.00%
Liquidation
cancellation
2020.03 Liquidation completed
6. Subsidiary newly established: Nil
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
Subsidiary
Main office
place
Registration
place
Business
nature
Shareholding ratio (%)
Acquire by
Directly
Indirectl
y
Zhongke Meiling Cryogenic
Technology Co. Ltd.1)
Hefei Hefei
Manufacturing
and sales
63.2683 Investment
Sichuan Hongmei Intelligent
Technology Co. Ltd.2)
Mianyang Mianyang
Software
development
100 Investment
Mianyang Meiling Refrigeration Co.Ltd.3)
Mianyang Mianyang
Manufacturing
and sales
95 5 Investment
Jiangxi Meiling Electric Appliance Co.Ltd. 4)
Jingdezhen Jingdezhen
Manufacturing
and sales
98.75 1.25 Investment
Hefei Meiling Wulian Technology Co.Ltd. 5)
Hefei Hefei
Software
development
100 Investment
Hefei Meiling Electric Marketing Co.Ltd.6)
Hefei Hefei Sales 99.82 0.18 Investment
Jinan Xiangyou Electric Marketing Co.Ltd.7)
Jinan Jinan Sales 93.4 Investment
Wuhan Meizirong Electric Marketing
Co. Ltd.8)
Wuhan Wuhan Sales 91 Investment
Zhengzhou Meiling Electric
Marketing Co. Ltd.9)
Zhengzhou Zhengzhou Sales 100 Investment
Chengdu Meiling Electric Marketing
Co. Ltd.10)
Chengdu Chengdu Sales 100 Investment
Fuzhou Meiling Electric Marketing
Co. Ltd.11)
Fuzhou Fuzhou Sales 100 Investment
Nanjing Meiling Electric Marketing
Co. Ltd.12)
Nanjing Nanjing Sales 100 Investment
Taiyuan Meiling Electric Marketing
Co. Ltd.13)
Taiyuan Taiyuan Sales 100 Investment
Hangzhou Meiling Electric Marketing
Co. Ltd.14)
Hangzhou Hangzhou Sales 100 Investment
Shanghai Meiling Electric Marketing
Co. Ltd.15)
Shanghai Shanghai Sales 100 Investment
Guangzhou Meiling Electric
Marketing Co. Ltd.16)
Guangzhou Guangzhou Sales 98 Investment
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Subsidiary
Main office
place
Registration
place
Business
nature
Shareholding ratio (%)
Acquire by
Directly
Indirectl
y
Tianjin Meiling Electric Marketing
Co. Ltd.17)
Tianjin Tianjin Sales 100 Investment
Beijing Meiling Electric Marketing
Co. Ltd.18)
Beijing Beijing Sales
100
Investment
Hefei Meiling Nonferrous Metal
Products Co. Ltd.19)
Hefei Hefei
Manufacturing
and sales
100
Enterprise combined under the
different control
Changhong Meiling Ridian Technology
Co. Ltd.20）
Zhongshan Zhongshan
Manufacturing
and sales
99.0361
Enterprise combined under the
same control
Changmei Technology Co. Ltd. 21) Mianyang Mianyang Sales 96.256 Investment
CHANGHONGMEILINGELECTRICI
NDONESIAPT22）
Jakapta Jakapta Sales 100 Investment
ChanghongRubaTradingCompany（Private）Limited23)
Pakistan Pakistan Sales 60 Investment
Sichuan Changhong Air-conditioner
Co. Ltd. 24)
Mianyang Mianyang
Manufacturing
and sales
100
Enterprise combined under the
same control
Zhongshan Changhong Electric Co.Ltd.25)
Zhongshan Zhongshan
Manufacturing
and sales
90 10
Enterprise combined under the
same control
Hefei Meiling Group Holdings
Limited26)
Hefei Hefei
Manufacturing
and sales
100
Enterprise combined under the
different control
Meiling Equator Household
Appliance (Hefei) Co. Ltd27)
Hefei Hefei
Manufacturing
and sales
100
Enterprise combined under the
different control
Hefei Equator Appliance Co. Ltd.28) Hefei Hefei
Manufacturing
and sales
100
Enterprise combined under the
different control
Hongyuan Ground Energy Heat Pump
Tech. Co. Ltd.29)
Mianyang Mianyang
Manufacturing
and sales
51 Investment
Hongyuan Ground Energy Heat Pump
Tech. (Zhongshan) Co. Ltd.30)
Zhongshan Zhongshan
Manufacturing
and sales
51 Investment
Meiling CANDY Washing Machine
Co. Ltd. 31)
Hefei Hefei
Manufacturing
and sales
60 Investment
Guangzhou Changhong Trading Co.Ltd.32)
Guangzhou Guangzhou Sales 100 Investment
Hebei Hongmao Household ApplianceTechnology Co. Ltd33）
Handan Handan
Manufacturing
and sales
100 Investment
Anhui Tuoxing Technology Co.Ltd.34）
Hefei Hefei Technology
R&Dt
100 Investment
Note:
1) Zhongke Meiling Cryogenic Technology Co. Ltd. (hereinafter referred to as Zhongke Meiling) the
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
predecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company was
established on 29 October 2002 by joint contribution from the Company and Technical Institute of Physics
and Chemistry CAS (“TIPC”) with registered capital of RMB60 million upon the establishment among
which the Company made capital contribution of RMB42 million (including the assets in specie at the
consideration of RMB35573719.70 as evaluated by Beijing Zhongzheng Appraisal Co. Ltd. with issuance
of the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of RMB6426280.30) accounting for
70% of the aforesaid registered capital and TIPC made capital contribution of RMB18 million with
intangible assets of such value (namely the single compressor mixture industrial low temperature
refrigeration technology) as evaluated by Jingzhongzi Assets Appraisal Co. Ltd. with issuance of the
Appraisal Report (ZZPBZ(2002)No.225) accounting for 30% of the aforesaid registered capital. The paid-in
of the above registered capital has been verified by Huazheng Accounting Firm by issuance of the Assets
Verification Report (HZYZ (2002) No. B157) dated 16 October 2002.In October 2014 according to the relevant provision under the Management Rules on Application of State
Owned Assets by Central Business Organs TIPC transferred the 30% equity interests held by it in Zhongke
Meiling Cryogenic Technology Company Limited to its wholly-owned subsidiary Zhongke Xianxing
(Beijing) Assets Management Co. Ltd (hereinafter referred to as Zhongke Xianxing) which would perform
management over the operating assets of TIPC. Upon consideration and approval at the 37th session of the 7th
Board of Directors of Hefei Meiling Co. Ltd it is agreed to waive the pre-emptive right.
On 10 August 2015 all the founders signed the Founder Agreement of Zhongke Meiling Cryogenic
Technology Company Limited pursuant to which they decided to change the firm type of Zhongke Meiling
Cryogenic Technology Company Limited to a joint stock company. Based on the net assets of RMB96
431978.25 as audited by Xinyong Zhonghe CPA as of 30 June 2015 an aggregate of 65000000 shares have
been converted at the proportion of 1:0.67 which are to be held by the original shareholders according to
their respective entitlement. In case that the net assets exceed registered capital the balance shall be recorded
in capital reserve. On 28 August 2015 Xinyong Zhonghe CPA reviewed the registered capital and paid-in
thereof in respect of the stock reform and issued Assets Verification Report (XYZH/2015CDA40161). The
Company registered industrial and commercial information on 11 September 2015.
On November 25 2016 the first Extraordinary Shareholders' General Meeting of Zhongke Meiling
Cryogenic Technology Co. Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of the
Company; Zhongke Meiling Company issued 3150000 shares to specific investors by the non-public
offering of shares at 1.63 Yuan per share. The current capital increase was verified by the No.［XYZH/2016CDA40294］capital verification report issued by ShineWing CPA (special general partnership).
After the completion of the issuance the share capital of Zhongke Meiling Company increased to 68150000
shares and the Company's shareholding ratio was 66.76%.
On 15 September 2017 the Proposal of the First Stock Placement of Zhongke Meiling Cryogenic
Technology Co. Ltd for year of 2017 was deliberated and approved by 4th session extraordinary of
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
shareholders general meeting of 2017. Zhongke Meiling offering 490300 shares to specific investors by way
of privately placement which has 1.72 Yuan per share in amount. The capital increasement has been verified
by the No. ［XYZH/2017CDA40324］capital verification report issued by ShineWing CPA (special general
partnership). After the completion of shares placement stock of the Company increased to 68640300 shares
and 66.87% held by the Company.On September 9 2019 the 10th Meeting of the Second Board of Directors and the Fourth Extraordinary
Shareholders’ Meeting reviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke
Meiling Cryogenic Technology Co. Ltd. in 2019 (Revised Version) the number of shares to be issued this
time does not exceed 3907900 shares (including 3907900 shares) the issue price is not less than 2.16 yuan
per share and the raised funds are expected to not exceed 8441064.00 yuan (including 8441064.00 yuan).
After the completion of the additional issue the company’s share capital increased to 72548200 shares
which was verified by [No. XYZH/2020CDA30002] “Capital Verification Report” issued by Shine Wing
Certified Public Accountants (LLP) and the Company’s shareholding ratio was 63.2683%.
2) Sichuan Hongmei Intelligent Technology Co. Ltd. (hereinafter referred to as Hongmei Intelligent) was
established on Jan. 24 2014. It is a limited company jointly invested by the Company and Mianyang Meiling
Refrigeration Co. Ltd. being approved by the Industrial and Commerce Bureau of Peicheng District
Mianyang City. The company owes registered capital of RMB 5 million including RMB 4.95 million
contributed by Changhong Meiling Company in cash accounted for 99% of the registered capital; Mianyang
Meiling Refrigeration Co. Ltd. contributed RMB 50000 in cash with 1% of the register capital occupied. The
above mentioned register capital have been verified by verification report of Chuanjinlai Yanzi No. [2014]
B039 issued by Sichuan Jinlai Accounting Firm Co. Ltd. In July 2016 the shares of Hongmei Intelligent
held by the Company has transferred to Sichuan Changhong AC Co. Ltd. after transferred Changhong AC
has 99% equity of Hongmei Intelligent the Company has no shares of Hongmei Intelligent directly.
3) Mianyang Meiling Refrigeration Co. Ltd. (hereinafter referred to as Mianyang Meiling) a limited liability
company jointly set up by the Company and China-tech Meiling Company was founded on Mar. 6 2009. Its
registered capital and paid-in capital were RMB 50 million upon establishment of which the Company
invested RMB 45 million accounting for 90% of the registered capital; Zhongke Meiling Company invested
RMB 5 million accounting for 10% of the registered capital. The capital receipt was verified by the
verification report [CXKY (2009) No. 008] of Sichuan Xingrui Certified Public Accountants. On 19 January
2011 the Company increase RMB 50 million in capital of Mianyang Meiling of which RMB 95 million
invested by the Company a 95% of total register capital while RMB 5 million invested by Zhongke Meiling
a 5% of total capital occupied. The paid-in capital has been verified by Capital Verification Report
［XYZH/2010CDA6040］from Chengdu Branch of Shinewing CPA CO. Ltd. In 2011 Zhongke Meiling
entered into “Equity Transfer Agreement” with Jiangxi Meiling Refrigeration Co. Ltd. 5 percent equity of
Mianyang Meiling held by Zhongke Meiling was transferred to Jiangxi Meiling Refrigerator. In September
2013 Jiangxi Meiling Refrigeration was combined by Jiangxi Meiling Electric Appliance Co. Ld than 5
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
percent equity was transfer to Jiangxi Meiling Electric Appliance.
4) Jiangxi Meiling Electric Appliance Co. Ltd. (hereinafter referred to as Jiangxi Meiling Electric Appliance)
was a limited liability company jointly established by the Company and Mianyang Meiling on 23 May 2011.Register capital of the company totally as RMB 50 million RMB 49.375 million invested by the Company
98.75% in total register capital while RMB 0.625 million invested by Mianyang Meiling a 1.25% in total
register capital occupied. The initial investment RMB 10.50 million was received dated 13 May 2011 with
RMB 10 million from the Company and RMB 0.5 million from Mianyang Meiling. Rest of the capital shall
be invested fully within 2 years after the joint ventures established according to capital requirement. The
initial investment capital were verified by the Capital Verification Report [JXKYZi (2011) No. 090] issued
from Jingdezhen Xingci CPA Co. Ltd. Second capital RMB 39.5 million was fully funded on 28 July 2011
the Company contributed RMB 39.375 million while Mianyang Meiling Company invested RMB 125000
the contributions have been verified by the capital verification report [Jing Xing Kuai Yan Zi (2011) No.: 134]
issued from JDZ Xingci CPA Co. Ltd.
5) Hefei Meiling Wulian Technology Co. Ltd. (hereinafter referred to as Wulian Technology) was
established dated 21 January 2019 with registered capital of RMB 10 million and it is the subsidiary of the
Company with fully-owned establishment. As of June 30 2020 paid in capital is 6 million yuan
6) Hefei Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Meiling Marketing) is the limited
company jointly invested by the Company and Mianyang Meiling Company on 21 Oct. 2009. Registered
capital and paid-up capital were RMB 10 million including RMB 9.9 million invested by the Company a
99% of the registered capital; Mianyang Meiling Company contributed RMB 0.1 million a 1% of the
registered capital. The above mentioned paid-up register capital have been verified by verification report of
[Wan An Lian Xin Da Yan Zi (2009) No. 074] issued by Anhui An Lian Xin Da Accounting Firm Co. Ltd.
On 25 Nov. 2010 the Company increased capital RMB 45 million registered capital amounting to RMB 55
million including RMB 54.9 million contributed by the Company a 99.82% of the registered capital while
Mianyang Meiling invested RMB 0.1 million a 0.18% of the registered capital. The increased capital has
been verified by verification report of [Wan Hua Shen Zheng Da Kuai Yan Zi (2010) No. 1514] issued by
Anhui Hua Shen Zhengda CPA Co. Ltd.
7) Jinan Xiangyou Electric Marketing Co. Ltd. (hereinafter referred to as Jinan Xiangyou) was established
dated 3 June 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million
accounted for 36% of the registered capital; after Meiling Marketing acquired 55.4% equity interests from
the minority shareholders in 2015 Meiling Marketing totally holds 91.4% equity of the Jinan Xiangyou In
2019 minority shareholders step out shares of Jinan Meiling hold by Meiling Marketing changed to 93.4%.
8) Wuhan Meizirong Electric Marketing Co. Ltd. (hereinafter referred to as Wuhan Meizirong) was
established dated 10 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB
4.55 million accounted for 91% of the registered capital.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
9) Zhengzhou Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Zhengzhou Meiling) was
established dated 17 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB
1.08 million accounted for 36% of the registered capital. In 2013 Meiling Marketing purchased 10% equity
from minority; Meiling Marketing signed equity transfer agreement with the minority shareholders in April
2015 to acquire as the transferee the 39% equity interests of Zhengzhou Meiling held by minority
shareholders Meiling Marketing acquired 10% equity interests from the minority shareholders in February
2016; and after acquiring 5% equity from minority in 2017 Meiling Marketing totally holds 100% equity of
Zhengzhou Meiling.
10) Chengdu Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Chengdu Meiling) was
established dated 26 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB
4.17 million accounted for 83.4% of the registered capital; After Meiling Marketing purchased 9% equity
from minority in 2015 purchased 0.8% equity from minority in 2016 and purchased 1.2% equity from
minority in 2018 Meiling Marketing totally holds 96% equity of Chengdu Meiling. After Meiling Marketing
acquired 4% of minority shareholders in 2020 Meiling Marketing held 100% of Chengdu Meiling's total
equity.
11) Fuzhou Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Fuzhou Meiling) was established
dated 25 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.97 million
accounted for 99% of the registered capital; in 2017 after acquiring 1% equity from the minority Meiling
Marketing holds 100% equity of Fuzhou Meiling in total.
12) Nanjing Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Nanjing Meiling) was
established dated 14 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB
2.97 million accounted for 99% of the registered capital; in 2017 after acquiring 1% equity from the
minority Meiling Marketing holds 100% equity of Nanjing Meiling in total.
13) Taiyuan Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Taiyuan Meiling) was
established dated 18 January 2011 with registered capital of RMB 4 million; Meiling Marketing invested RMB
1.59 million accounted for 39.75% of the registered capital; after Meiling Marketing purchased 45.5%
equity from minority in 2013 after purchased 14.75% equity from minority in 2016 Meiling Marketing
totally holds 100% equity of the Taiyuan Meiling.
14) Hangzhou Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Hangzhou Meiling) was
established dated 17 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB
2.655 million accounted for 88.5% of the registered capital; Meiling Marketing signed equity transfer
agreement with the minority shareholders in 2015 to acquire as the transfer the 6.5% equity interests of
Hangzhou Meiling held by minority shareholders. Upon completion of such equity transfer in February 2015
Meiling Marketing held in aggregate the 95% equity interests of Hangzhou Meiling; in 2017 after acquiring
5% equity from the minority Meiling Marketing holds 100% equity of Hangzhou Meiling in total.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
15) Shanghai Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Shanghai Meiling) was
established dated 9 March 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB
2.97 million accounted for 99% of the registered capital. After Meiling Marketing acquired 1% of minority
shareholders in 2020 Meiling Marketing will hold 100% of Shanghai Meiling's equity in total.
16) Guangzhou Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Guangzhou Meiling) was
established dated 13 May 2011 with registered capital of 5 million Yuan; Meiling Marketing invested 4.3
million Yuan accounted for 86% of the registered capital; after Meiling Marketing acquired 12% equity
interests from the minority shareholders in 2014 Meiling Marketing totally held the 98% equity interests of
Guangzhou Meiling.
17) Tianjin Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Tianjin Meiling) was established
dated 2 March 2011 with registered capital of 3 million Yuan; Meiling Marketing invested 2.565 million Yuan
accounted for 85.5% of the registered capital; In 2015 Meiling Marketing and Jiangxi Meiling Appliances
entered into equity transfer agreements with minority shareholders respectively to acquire as the transfers the
14.1% and 0.4% equity interests of Tianjin Meiling held by minority shareholders. Upon completion of
equity transfer in December 2015 Meiling Marketing totally held the entire equity interests of Tianjin
Meiling.
18) Beijing Meiling Electric Marketing Co. Ltd. (hereinafter referred to as Beijing Meiling) was established
dated 28 March 2011 with registered capital of 3 million Yuan; Meiling Marketing invested 2.97 million Yuan
accounted for 99% of the registered capital; in 2017 after acquiring 1% equity from the minority
shareholders Meiling Marketing holds 100% equity of the Beijing Meiling in total.
19) Hefei Meiling Nonferrous Metal Products Co. Ltd. (hereinafter referred to as Nonferrous Metal) was the
Sino-foreign joint venture jointly set up by original Meiling Group Hefei Meiling Copper Co. Ltd. And Singapore Kim
Shin Development Co. Ltd. which have been originally approved by the [WJMWFZZ (1996) No.349] of
Foreign Trade and Economic Committee of Anhui Province. Its registered capital was US$ 2.92 million upon
establishment of which original Meiling Group invested US$ 1.46 million (monetary capital) accounting
50% of the registered capital Hefei Meiling Copper Co. Ltd invested US$ 0.584 million (monetary capital of RMB
0.18 million and real assets of US$ 0.404 million) accounting 20% of registered capital while Singapore Kim Shin
Development Co. Ltd invested US$ 0.876 million (monetary capital) accounting 30% of the registered capital.
The above mentioned investment verified by the verification report of [HSWZ (1995) No. 0737] [HSWZ
(1996) No. 328] and [HSWZ (1998) No. 088] from Anhui CPAs Co. Ltd. In July 2008 approved by [HWS
(2008) No.53] from Foreign Trade Economic Cooperation Bureau of Hefei City 30% equity and 20% equity
held by Singapore Kim Shin Development Co. Ltd and Hefei Meiling Copper Co. Ltd respectively transferred to
original Meiling Group Totally. The Company’s register capital came into RMB 24286808.00 after
transference and was not the joint-venture any more.
20) Changhong Meiling Ridian Technology Co. Ltd. (hereinafter referred to as Ridian Technology) is a
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
limited liability company invested and established by Sichuan Changhong Electric Co. Ltd. (hereinafter
referred to as Sichuan Changhong) and Sichuan Changhong Motor Transport Co. Ltd. (hereinafter referred
to as Changhong Motor Transport Company) on May 25 2016. The registered capital and paid-in capital are
RMB 40 million Yuan of which Sichuan Changhong has invested 32 million Yuan by monetary capital
accounting for 80% of the registered capital; Changhong Motor Transport Company has invested 8 million
Yuan accounting for 20% of the registered capital. The official receipts of registered capital have been
verified by original Sichuan Junhe Accounting Firm [No. JHYZ (2006) 3027]. Ridian Technology increased
registered capital of 43 million Yuan on January 4 2007 changing from 40 million Yuan to 83 million
Yuan for the newly increased 43 million Yuan Sichuan Changhong invested 1.8 million Yuan Guangdong
Xiongfeng Electric Co. Ltd. invested 40 million Yuan and Kou Huameng and other 9 natural person
shareholders invested 1.2 million Yuan at the same time the shareholders' meeting considered and agreed to
transfer the investment of 8 million Yuan of Changhong Motor Transport Company to Sichuan Changhong
Venture Investment Co. Ltd the structure of the registered capital after changes was that Sichuan
Changhong invested 33.8 million Yuan accounting for 40.72%；Guangdong Xiongfeng Electric Co. Ltd.
invested 40 million Yuan accounting for 48.19%; Sichuan Changhong Venture Investment Co. Ltd Invested
8 million Yuan accounting for 9.64%; Kou Huameng and other 9 natural person shareholders invested 1.2
million Yuan accounting for 1.45%. The change of registered capital was verified by Zhongshan Promise
Accounting Firm [No. ZCHZ (2007)501010].
On February 18 2009 seven natural person shareholders transferred total 0.76% stock rights to Hu Zhiheng
after the transfer the registered capital of Ridian Technology was still 83 million Yuan the structure of
registered capital after changes was that Sichuan Changhong invested 33.8 million Yuan accounting for
40.72%; Guangdong Xiongfeng Electric Co. Ltd. invested 40 million Yuan accounting for 48.19%; Sichuan
Changhong Venture Investment Co. Ltd invested 8 million Yuan accounting for 9.64%; Hu Zhiheng and
other two natural person shareholders invested 1.2 million Yuan accounting for 1.45%.On October 9 2014 Ridian Technology held the shareholders meeting which considered and agreed Kou
Huameng to transfer its stock rights of total 250000 Yuan which accounts for 0.301% of the Ridian
Technology’s registered capital to Sichuan Changhong Venture Investment Co. Ltd at the cost of 317802
Yuan. The other shareholders of the Ridian Technology waived the right of pre-emption. On December 11
2014 Ridian Technology held the shareholders meeting which considered and agreed Guangdong Xiongfeng
Electric Co. Ltd. to transfer its stock rights of total 40 million Yuan which accounts for 48.19 % of the
company's registered capital to Sichuan Changhong Electric Co. Ltd. at the cost of 43977300 Yuan. The
other shareholders of the Ridian Technology waived the right of pre-emption. The structure of registered
capital after changes was that Sichuan Changhong invested 73.8 million Yuan accounting for 88.92%;
Sichuan Changhong Venture Investment Co. Ltd Invested 8.25 million Yuan accounting for 9.94%; Hu
Zhiheng and another natural person shareholder invested 950000 Yuan accounting for 1.14%.
On 4 January 2016 Sichuan Changhong and Sichuan Changhong Venture Investment Co. Ltd. transferred
total 98.855% equity of the Ridian Technology to the Company. After the transfer the Company directly
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
holds 98.855% stock rights of Ridian Technology.
On April 7 2020 resolution of the shareholders’ meeting of Ridian Technology agrees the Wu Changyuan to
transfer shares of Ridian Technology (representing 0.18% of the registered capital of Ridian Technology) to
the Company the Company holds 99.0361% equity of the Ridian Technology directly after transferred.
21) Changmei Technology Co. Ltd. (hereinafter referred to as Changmei Technology) was invested and set
up on May 12 2016 in order to promote intelligent transformation and implement the company’s intelligent
life project according to the company's strategic planning and business development needs. In accordance
with the Article of Association registered capital of Changmei Technology was 50 million Yuan including
48.128 million Yuan contributed by the Company in cash a 96.256% in the contribution capital the
management team contribute 1.872 million Yuan in cash a 3.744% in contribution capital.
22) CHANGHONG MEILING ELECTRIC INDONESIA PT.(hereinafter referred to as Indonesia
Changhong) is a subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and
Sichuan Changhong in 2016 the company’s registered capital is 6 million US dollars of which Zhongshan
Changhong subscribed and paid 5.88 million US dollars in cash accounting for 98% of the registered capital
Changhong Air Conditioning subscribed and paid 120000 US dollars in cash accounting for 2% of the
registered capital. On 4 July 2017 rests of the 2.94 million US dollars are subscribed by Zhongshan
Changhong in line with the agreement.
23) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba) was a
joint venture established by Zhongshan Changhong Appliances Company Limited and RUBA GENERAL
TRADING FZE Company (“RUBA”) on 5 August 2011 with the approval from Guangdong Development
and Reform Commission by issuance of the Approval Relating to Joint Construction of a Manufacturing and
Selling Platform Project in Pakistan by Zhongshan Changhong Appliances Company Limited
(YFGWZ(2011)958). The resolution of the second extraordinary shareholders' meeting of Zhongshan
Changhong in 2016 passed the "Proposal on the Company's Capital Increase to Changhong Ruba Trading
Company (Private) Limited" and agreed that the company and UAE RUBA Company jointly increase capital
to Changhong Ruba Trading Company(Private) Limited which was invested by both sides in Pakistan at an
earlier stage Zhongshan Changhong invested 3.84 million US dollars in this capital increase and UAE
RUBA Company invested 2.56 million US dollars the shares held by both sides remained unchanged. After
the capital increase the company’s registered capital became 12.4 million US dollars of which Zhongshan
Changhong Home Appliances Company Limited invested 7.44 million US dollars in cash shareholding ratio
was 60% UAE RUBA Company invested 4.96 million US dollars in cash and shareholding ratio was 40%.
24) Sichuan Changhong Air Conditioner Co. Ltd.(hereinafter referred to as Changhong Air Conditioner) a
limited liability company jointly set up by Sichuan Changhong and Changhong Chuangtou was founded on
November 28 2008. Its registered capital was RMB 200 million upon establishment of which Sichuan
Changhong invested RMB 298 million (RMB 210088900 invested by monetary capital while RMB
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
87911100 invested by real material) equivalent to RMB 198 million shares accounting for 99% of the
registered capital; and Changhong Chuangtou invested RMB 3 million accounting for 1% of the registered
capital with equivalent of RMB 2 million shares. The registered capital receipt was verified by the
verification report [CGYYZ (2008) No. 177] of Sichuan Guangyuan Certified Public Accountants Co. Ltd.and [HLTHYZ (2008) No. 12-006] of Sichuan Henglitai Certified Public Accountants Co. Ltd. In December
2009 the Company obtained 100% equity of Changhong Air-conditioner by consolidated under the same
control. In 2017 the Company increased capital of 650 million Yuan to Changhong Air Conditioner after
capital increased registered capital of Changhong Air Conditioner comes to 850 million Yuan from 200
million Yuan shareholding still counted as 100%.
25) Zhongshan Changhong Electric Co. LTD (hereinafter referred to as Zhongshan Changhong) was the
original Guangdong Changhong Electric Co. Ltd. and is a limited liability company jointly set up by
Sichuan Changhong and China Minmetals on May 22 2001. Its registered capital was RMB 80 million upon
establishment of which Sichuan Changhong invested RMB 72 million including RMB 69.3 million biding
for the estate/ non-estate from original Zhongshan Sanrong Air-conditioner Co. Ltd. And its patent use-right
of RMB2.7 million accounting for 90% of the registered capital; Chine Minmetals invested RMB 8 million
in monetary capital accounting 10% of the registered capital. The Company changed its name originally from
Guangdong Changhong Electric Co. Ltd in July 2003. In December 2009 the Company obtained 90%
equity of Zhongshan Changhong by consolidated under same control. 10% equity held by China Minmetals
has been transferred by Changhong Air-conditioner on April 11 2010. On 25 May 2014 the Company
increased RMB 36 million to Zhongshan Changhong and Changhong AC increased RMB 4 million. In 2016
according to the overseas development strategy of the Company and the development and operation needs of
the subsidiaries the Company and the wholly-owned subsidiary Changhong Air Conditioning have increased
capital of RMB 64 million Yuan to Zhongshan Changhong according to the existing shareholding ratio
among which the capital increase of the Company was RMB 57.6 million Yuan and the capital increase of
Changhong Air Conditioning was RMB 6.4 million Yuan. After the completion of this capital increase the
registered capital Zhongshan Changhong shall increase to RMB 184 million Yuan the shareholding ratio of
the company and Changhong Air Conditioning remained unchanged and was still 90% and 10% of which
the Company invested 165.6 million Yuan accounting for 90% of the registered capital Changhong Air
Conditioning invested 18.4 million Yuan accounting for 10% of the registered capital. In March 2020 in
accordance with the Company’s overseas development strategy and the operation and development needs of
its subsidiaries the Company and its wholly-owned subsidiary Changhong Air Conditioning increased
capital of RMB 150 million to Zhongshan Changhong according to the existing shareholding ratios of which
the Company increased capital of RMB 135 million Changhong Air-Conditioning increased capital of RMB
15 million. After the completion of capital increase the registered capital of Zhongshan Changhong has
increased to RMB 334 million. The Company’s and Changhong’s shareholding ratios in Zhongshan
Changhong remain unchanged at 90% and 10% of which the Company funded RMB 300.6 million
accounting for 90% of the registered capital while Changhong Air Conditioning funded RMB 33.4 million
accounting for 10% of the registered capital.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
26) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group) was the state-owned
company originally approved by People’s Government of Hefei Province and established authorized by SASAC of
Hefei City. On July 14 2008 100% state-owned equity of Meiling Group has freely transferred to Xingtai
Holding by Hefei SASAC. Agreement by the approval of < State-owned property agreement transfer from
Meiling Group> [ HGZCQ (2010) No.34] of Hefei SASAC on April 9 2010 100% state-owned property of
Meiling Group after partial assets and liabilities separated transferred to the Company from Xingtai Holding
as amount of RMB 113.2 million. The re-registration of industrial and commercial procedure for Meiling
Group after separated partial assets liability has finished on July 28 2010. The new Meiling Group has
register capital of RMB 80 million and has been verified by the [AD (2010) YZD No. 016] from Anhui
Auding CPAs Co. Ltd.
27) Meiling Equator Household Appliance (Hefei) Co. Ltd.( hereinafter referred to as Equator Household
Appliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR
INVESTMENTS (USA) INC.( EQUATOR for short) which have been approved by the [SWZWFZZ(2004)
No.0103] of Approval Certificate of Foreign Enterprise from People’s Government of Anhui Province. Its
registered capital was US$ 3 million upon establishment of which Sino company invested US$ 2.25 million
in machinery equipment accounting 75% of the registered capital while foreign company invested US$ 0.5
million in monetary capital and US$ 0.25 million in intangible assets amounting to US$0.75 million
accounting 25% of the registered capital. The above mentioned investment verified by the verification report
of [WYAYZ (2004) No. 135] from Anhui Yongan CPAs Co. Ltd. In July 2007 approved by [HWJ (2007)
No.136] from Foreign Trade Economic Cooperation Bureau of Hefei City 25% equity held by EQUATOR
transferred to Anhui Meiling Electric Co. Ltd. Totally. The Company’s register capital came into RMB
24793200 after transference and was not the joint-venture any more. 25% equity owned by Anhui Meiling
Electric Co. Ltd has been transferred totally to original Meiling Group in July 2009.
28) Hefei Equator Appliance Co. Ltd.(hereinafter referred to as Equator Appliance) was jointly set up by original
Meiling Group and Yingkaite Appliance on September 26 2007. Its register capital was RMB 12 million among
which original Meiling Group invested 8670600 Yuan in monetary capital accounting 72.255% in
registered capital; Equator Appliance invested 3329400 Yuan in the assessment value of intangible assets
(land-use right) accounting 27.745% of total registered capital. The investment being verified by [WYAZ
(2004) No. 135] from Anhui Yongan CPAs Co. Ltd.
29) Hongyuan Ground Energy Heat Pump Technology Co. Ltd. (hereinafter referred to as Hongyuan Ground
Energy) was established on 28 August 2015 it is a limited liability company authorized by Administration
for Industry and Commerce of Peicheng District Mianyang Sichuan contributed by Sichuan Changhong Air
Conditioner Co. Ltd (hereinafter referred to as Changhong Air Conditioner) and Hengyouyuan Technology
Development Group Co. Ltd. together. Registered capital amounted as 50 million Yuan including 25.5
million Yuan contributed by Changhong Air Conditioner in cash a 51% in total registered capital;
Hengyouyuan Technology Development Group Co. Ltd. invested 24.5 million Yuan in cash a 49% in
registered capital.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
30) Hongyuan Ground Energy Heat Pump Tech. (Zhongshan) Co. Ltd.(hereinafter referred to as Hongyuan
Zhongshan) was established and invested on 18 July 2017 with registered capital of 15 million Yuan The
Hongyuan Ground Energy Heat Pump Tech. Co. Ltd contributed 1.5 million Yuan with own funds and takes
100% in the registered capital.In 2018 the shareholdes of the Hongyuan Zhongshan decided to increase
capital of 30 million Yuan and contributed by the shareholder Hongyuan Ground Energy; thus registered
capital of Hongyuan Zhongshan up to 45 million Yuan
31) Meiling Candy Washing Machine Co. Ltd. (hereinafter referred to as Meiling Candy) was established
and registered on 27 April 2017 which was contributed by the Company and Candy Hoover Group S.r.l.together. Registered capital counted as 150 million Yuan including 90 million Yuan invested by the
Company a 60% in registered capital.
32) Guangzhou Changhong Trading Co. Ltd. (hereinafter referred to as Changhong Trading) was established
on 6 Jan. 2017 the wholly-owned subsidiary of Zhongshan Changhong Electric Co. LTD (hereinafter
referred to as Zhongshan Changhong) with registered capital of one million Yuan
33) Hebei Hongmao Household Appliance Technology Co. Ltd (hereinafter referred to as Hebei Hongmao)
was established on 21 July 2017 with registered capital of 5 million Yuan. Guangdong Changhong Ridian
Technology Co. Ltd. invested 5 million Yuan by own fund and takes 100% in registered capital.
34) Anhui Tuoxing Technology Co. Ltd. (hereinafter referred to as Tuoxing Technology) was established on
20 May 2019 with registered capital of 10 million Yuan and it is the subsidiary of Zhongke Meiling with
fully-owned establishment. As of December 31 2019 no capital contributes.
(2) Major non-wholly-owned subsidiary
Subsidiary
Shareholding ratio
of minority
Gains/losses
attributable to
minority in the year
Dividend distributed
to minority
announced in the
year
Balance of
minority’s interest at
period-end
Meiling CANDY 40.00% -1728214.38 21549861.33
Changmei
Technology
3.74% 10286.06 113.58
Zhongke Meiling 36.73% 1170282.45 4796676.00 53072902.46
Hongyuan Ground
Energy
49.00% -4779592.77 14946477.30
Changhong Ridian 0.96% 93628.03 600000.00 984042.15
(3) Financial information for major non-wholly-owned subsidiary
Subsidiary Ending balance
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Subsidiary Ending balance
Current assets Non-current assets Total assets Current liability
Non-current
liability
Total liabilities
Meiling
CANDY
101990370.21 513718.57 102504088.78 41191270.76 7356824.76 48548095.52
Changmei
Technology
3033.84 3033.84
Zhongke Meiling 276074904.34 135376795.24 411451699.58 258478867.50 8484891.35 266963758.85
Hongyuan Ground
Energy
96273988.29 29170335.57 125444323.86 93582672.02 1358636.95 94941308.97
Changhong
Ridian
370253734.21 52997714.77 423251448.98 321006977.91 150098.37 321157076.28
(Continued)
Subsidiary
Opening balance
Current assets Non-current assets Total assets Current liability
Non-current
liability
Total liabilities
Meiling
CANDY
107483599.72 560471.69 108044071.41 42492057.38 7356824.76 49848882.14
Changmei
Technology
813640.04 69816.35 883456.39 1155157.08 1155157.08
Zhongke Meiling 173698258.09 135802000.42 309500258.51 146202370.20 8938774.23 155141144.43
Hongyuan Ground
Energy
72495161.24 29851452.34 102346613.58 59872173.74 2217153.99 62089327.73
Changhong
Ridian
469012870.35 55302405.39 524315275.74 368560861.13 171540.99 368732402.12
(Continued)
Subsidiary
Current amount
Operation income Net profit
Total comprehensive
income
Cash flow from
operation activity
Meiling
CANDY
1627127.27 -4320535.96 -4320535.96 530341.33
Changmei
Technology
274734.53 274734.53 -36018.69
Zhongke Meiling 113979900.96 3187502.65 3187502.65 -1593316.20
Hongyuan Ground
Energy
89983710.53 -9754270.96 -9754270.96 6460975.38
Changhong 388868705.58 8761499.08 8761499.08 -79204317.51
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Subsidiary Current amount
Ridian
(Continued)
Subsidiary
Last period
Operation income Net profit
Total comprehensive
income
Cash flow from
operation activity
Meiling
CANDY
202748512.94 -12044830.55 -12044830.55 -19338158.67
Changmei
Technology
8371432.27 -3245434.46 -3245434.46 -3850631.51
Zhongke Meiling 104654118.52 6108281.21 6108281.21 14717867.84
Hongyuan Ground
Energy
161373764.24 -12666951.69 -12666951.69 -13509130.08
Changhong
Ridian
284981563.96 8263471.00 8263471.00 17513052.52
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: Nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation
statement scope: Nil
2. Changes of owner’ equity shares in subsidiary and its impacts
Item Chengdu Meiling Shanghai Meiling Ridian Technology Total
Original ratio of
shares held
96.00% 99.00% 98.855%
Equity purchased
from minority
4.00% 1.00% 0.1811%
Share issuance
Ratio of shares held at
period-end
100.00% 100.00% 99.0361%
Cost of purchasing
minority equity
1.00 1.00 280049.17 280051.17
Less: Ratio of the net
assets measured by
equity ratio while
acquiring the
subsidiary
-450354.49 -119870.42 290387.46 -279837.45
Equity dilution for
shares issuance
Balance 450355.49 119871.42 -10338.29 559888.62
Including: Capital
public reserve
adjusted
450355.49 119871.42 -10338.29 559888.62
In 2020 due to the acquisition of minority shareholder’s shares under the name of Chengdu Meiling
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Electrical Marketing Co. Ltd by the subsidiary and the difference between the newly acquired long-term
equity investment and the share of net assets that should be continuously calculated by the subsidiary from
the purchase date in accordance with the newly increased shareholding ratio was 450355.49 yuan which
was included in capital reserve.
In 2020 due to the acquisition of minority shareholder’s shares under the name of Shanghai Meiling
Electrical Marketing Co. Ltd. and the difference between the newly acquired long-term equity investment
and the share of net assets that should be continuously calculated by the subsidiary from the purchase date in
accordance with the newly increased shareholding ratio was 119871.42 yuan which was included in capital
reserve.
In 2020 the company acquired the minority shareholders of Changhong Meiling Ridian Technology Co.
Ltd. and the difference between the newly acquired long-term equity investment and the share of net assets
that should be continuously calculated by the subsidiary from the purchase date in accordance with the newly
increased shareholding ratio was -10338.29 yuan which was included in capital reserve.
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
Joint venture or associate enterprise
Main office
place
Registr
ation
place
Business
nature
Shareholding
ratio (%)
Accounting
treatment for
investment of
joint venture or
associate
enterprise
Direct
ly
Indire
ctly
Associate enterprise:
1.Changhong Ruba Electric Company
(Private)Ltd.Lahore
Pakistan
Lahore
R&D and
manufacturin
g
40.00 Equity
2.Hefei Xingmei Assets Management Co.
Ltd.Hefei Hefei
Rental
agency
48.28 Equity
3.Sichuan Zhiyijia Network Technology
Co. Ltd.
Mianyang Mianyang Sales 30.00 Equity
4.Hongyuan Ground Energy Heat Tech.
Co. Ltd.
Mianyang Mianyang
R & D sales
after-sales
49.00 Equity
5.Sichuan Tianyou Guigu Technology Co.
Ltd
Mianyang Mianyang
R&D and
manufacturin
g
25.00 Equity
6.Chengdu Guigu Environmental Tech. Co. Chengdu Chengdu
R&D
manufacturin
25.00 Equity
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Joint venture or associate enterprise
Main office
place
Registr
ation
place
Business
nature
Shareholding
ratio (%)
Accounting
treatment for
investment of
joint venture or
associate
enterprise
Direct
ly
Indire
ctly
Associate enterprise:
Ltd. g and sales
(2) Financial information for major Joint venture: Nil
(3) Financial information for associate enterprise
Item
Ending balance / Current amount
Changhong Ruba
Electric Company
(Private)Ltd.Hefei Xingmei
Assets
Management
Co. Ltd.
Sichuan Zhiyijia
Network
Technology Co.Ltd.Hongyuan
Ground
Energy Heat
Tech. Co. Ltd.Sichuan Tianyou
Guigu
Technology Co.Ltd
Chengdu Guigu
Environmental
Tech. Co. Ltd.
Current assets 109286574.13 1711821.12 2583553136.17 47027702.79 21304228.40 16565458.88
Including: cash and cash
equivalent
5436016.48 226717.86 1337829306.09 172640.47 9068753.09 2298848.41
Non-current assets 49872737.22 16606486.00 1318342.50 12013422.17 53332.84 14169694.77
Total assets 159159311.35 18318307.12 2584871478.67 59041124.96 21357561.24 30735153.65
Current liability 166551417.69 1239441.24 2497722644.92 11394761.62 10106355.41 16789184.49
Non-current liability - 334740.00
Total liabilities 166551417.69 1239441.24 2498057384.92 11394761.62 10106355.41 16789184.49
Minority's interest 943994.83
Equity attributable to
shareholder of parent
company
-7392106.34 17078865.88 86814093.75 47646363.34 11251205.83 13001974.33
Share of net assets measured
by shareholding ratio
-2956842.55 8245676.45 43407046.88 23346718.04 2812801.46 3250493.58
Adjustment
--Goodwill 821877.28 3887027.34
Unrealized profit of the
internal downstream
transactions
442772.94 5088289.24 74539.10 4447.62 30140.07
Unrealized profit of the
internal upstream
transactions
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Other 3399615.49
Book value of the equity
investment for associate
enterprise
- 8245676.45 39140634.92 23272178.94 2808353.84 7107380.85
Fair value of equity
investment for the associate
with consideration publicly
Operation income 45300541.58 - 3605343938.12 23259797.54 10087.61 1501031.58
Financial expenses 10265459.27 -1117.38 -22628943.85 1359.95 -134260.28 124588.98
Income tax expenses - 1037833.62
Net profit -11109497.99 -639886.66 5881057.16 -128904.93 23543.66 -4433824.06
Net profit of discontinuing
operation
Other comprehensive
income
188871.84
Total comprehensive
income
-10920626.15 -639886.66 5881057.16 -128904.93 23543.66 -4433824.06
Dividend received from
associate enterprise in the
period
6649787.97
(Continued)
Item
Opening balance /Same period last year
Changhong Ruba
Electric Company
(Private)Ltd.Hefei Xingmei
Assets
Management
Co. Ltd.
Sichuan Zhiyijia
Network
Technology Co. Ltd.Hongyuan
Ground
Energy Heat
Tech. Co. Ltd.Sichuan Tianyou
Guigu
Technology Co.Ltd
Chengdu Guigu
Environmental
Tech. Co. Ltd.
Current assets 104632500.22 1833902.21 3365539682.22 46101621.41 21254869.83 18277711.92
Including: cash and cash
equivalent
5030479.12 1726698.95 2349815225.85 925625.77 11975680.17 3026977.11
Non-current assets 52830981.68 17138280.87 1252898.22 12965065.72 39777.34 14593410.88
Total assets 157463481.90 18972183.08 3366792580.44 59066687.13 21294647.17 32871122.80
Current liability 153934962.09 1253430.54 3272121806.17 11291418.86 10066985.00 14376055.61
Non-current liability 651580.00
Total liabilities 153934962.09 1253430.54 3272773386.17 11291418.86 10066985.00 14376055.61
Minority's interest 1059268.80
Equity attributable to
shareholder of parent company
3528519.81 17718752.54 94019194.27 47775268.27 11227662.17 17435798.39
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Share of net assets measured by
shareholding ratio
1411407.92 8554613.73 47009597.14 23409881.45 2806915.54 4358949.60
Adjustment
--Goodwill 821877.28 3887027.34
Unrealized profit of the internal
downstream transactions
393075.11 2223966.56 34940.80 4691.99 28751.02
Unrealized profit of the internal
upstream transactions
Other -1018332.81
Book value of the equity
investment for associate
enterprise
- 8554613.73 45607507.85 23374940.65 2802223.55 8217225.92
Fair value of equity investment
for the associate with
consideration publicly
Operation income 162916496.00 2430211379.62 16939634.90 -290705.70 22927852.35
Financial expenses 24206842.56 -3153.87 5617886.35 -788.08 -163651.65 89217.31
Income tax expenses
Net profit -18627283.09 -969500.31 -9710951.08 115981.57 -2769666.72 403485.31
Net profit of discontinuing
operation
Other comprehensive income -4412343.03
Total comprehensive income -23039626.12 -969500.31 -9710951.08 115981.57 -2769666.72 403485.31
Dividend received from
associate enterprise in the period
(4) Financial summary for non-important Joint venture and associate enterprise
Item
Ending balance / Current
amount
Opening balance / Last period
Associate enterprise:
Total book value of investment
Total amount measured by shareholding
ratio
--Net profit -129133.66 -144198.04
--Other comprehensive income
--Total comprehensive income -129133.66 -144198.04
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(6) Excess loss occurred in joint venture or affiliates: Nil
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
IX. Relevant risks related with financial instrument
The major financial instruments of the Company include borrowings account receivables account payable
tradable financial assets tradable financial liability the details of which are set out in Note VI. Risks related
to these financial instruments include exchange risks and interest rate risks. The management of the
Company controls and monitors the risk exposures to ensure the above risks are under control.
In connection with exchange risks in order to prevent from exchange risks arising from foreign currency
transaction amount foreign currency dominated loans and interest expenditure the Company entered into
several forward exchange contracts with banks. Fair value of the forward exchange contract which has been
recognized as derivative financial instrument has been included in profits and losses. As export business is
increasing if risks that are out of control of the Company occur such as appreciation of RMB the Company
will mitigate the relevant risks by adjusting its sales policy.The Company’s interest rate risk arises from bank borrowings and interest-bearing debt. Financial liabilities
at floating rate expose the Company to cash flow interest rate risk and financial liabilities at fixed rate
expose the Company to fair value interest rate risk. The Company will determine the respective proportion of
contracts at fixed and floating rates based on the prevailing market conditions. As of 30 June 2020 the
interest-bearing debts mainly referred to borrowing contracts at floating rate denominated in RMB with total
amount of 1322740000.00 Yuan the floating rate loan contract measured by RMB amounted as
577000000.00 Yuan in total; borrowing contracts at fixed rate denominated in USD with total amount of
106192500.00 Yuan; borrowing contracts at fixed rate denominated in IDR with total amount of
26370009.60 Yuan; borrowing contracts at fixed rate denominated in Euro with total amount of
75629500.00 Yuan. Risks relating to change of fair value of financial instruments arising from movement
of interest rate mainly related to bank borrowings at fixed rate. As for borrowings at fixed rate the Company
aims to keep its floating rate. Risks relating to change of cash flow of financial instruments arising from
movement of interest rate mainly related to bank borrowings at floating rate. The Company establishes its
policy to keep floating rate for these borrowings so as to eliminate fair value risk arising from movement of
interest rate.
X. Fair value disclosure
1. Asset and liability measured by fair value at end of the period and fair value measurement level
Item
Fair v alue at pe rio d -e nd
1
st
level 2
nd
level 3
rd
level Total
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item
Fair v alue at pe rio d -e nd
1
st
level 2
nd
level 3
rd
level Total
Financial assets measured by fair value and with variation reckoned into current gains/losses
1. Tradable financial assets
(1) Derivative financial assets 2944998.77 2944998.77
Financial liability measured by fair value and with variation reckoned into current gains/losses
1. Tradable financial liability
(1) Derivative financial liability 6027595.47 6027595.47
The derivative contract is measured by fair value on 2
nd
level which is the real-time quote on foreign exchange market on
balance sheet date
XI. Related parties and related transaction
(i) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Controlling shareholder and
ultimate controller
Registr
ation
place
Business
nature
Registered
capital
Share-holdin
g ratio in the
Company
Voting rights
ratio in the
Company
Sichuan Changhong Electric Co.Ltd.Mianya
ng
Manufactur
e and sales
4616244222.00 26.98% 26.98%
Sichuan Changhong Electronics Holding Group Co. Ltd. is the controlling shareholder of Sichuan Changhong Electric Co.Ltd and the SASAC Mianyang office holds 100.00% equity interests of Sichuan Changhong Electronic Holding Group which
means that SASAC Mianyang office is the ultimate controller of the Company.
(2) Register capital and change thereof of controlling shareholder
Controlling shareholder Opening balance
Current
increased
Current
decreased
Ending balance
Sichuan Changhong Electric Co. Ltd. 4616244222.00 4616244222.00
(3) Shares held by the controlling shareholder and its changes on equity
Controlling shareholder
Amount of shares held Shareholding ratio
Ending balance Opening balance
Ratio at
period-end
Ratio at
period-begin
Sichuan Changhong Electric Co. Ltd. 281832434.00 281832434.00 26.98% 26.98%
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
3. Joint venture and associated enterpriseMajor Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) major joint venture andassociated enterprise”. Other Joint venture and associated enterprise that have related transactions occurred with the Compan y
in the period or occurred in last period and with balance results:
Joint venture and associated enterprise Relationship with the company
Hefei Meiling Solar Energy Technology Co. Ltd. Associated enterprise of subsidiary Meiling Group
Changhong Ruba Electric Company (Private)Ltd. Associated enterprise of subsidiary Zhongshan Changhong
Hefei Xingmei Assets Management Co. Ltd. Associated enterprise of the Company
Sichuan Zhiyijia Network Technology Co. Ltd.
Associated enterprise of the Company has the same
controlling shareholder and actual control of the Company
Hongyuan Ground Energy Heat Tech. Co. Ltd.
Associated enterprise of subsidiary Changhong
Air-conditioner
Sichuan Tianyou Guigu Technology Co. Ltd
Associated enterprise of subsidiary Changhong
Air-conditioner
Chengdu Guigu Environmental Tech. Co. Ltd.
Associated enterprise of subsidiary Changhong
Air-conditioner
4. Other related party
Other related party Relationship with the company
Changhong Huayi Compressor Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Mold Plastic Tech. Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Jijia Fine Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Package Printing Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Precision Electronics Tech. Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong New Energy Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
081 Electronic Group
Control by same controlling shareholder and ultimate
controller
Guangdong Changhong Electronics Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Intelligent Manufacturing Technology
Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Hongwei Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Power Source Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Electronic Products Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Property Services Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Ailian Science & Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Other related party Relationship with the company
Hunan Grand-Pro Intelligent Tech. Company
Control by same controlling shareholder and ultimate
controller
Sichuan Aichuang Science & Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Guangyuan Changhong Electronic Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Service Exp. Appliance Service Chain Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Hefei Changhong Industrial Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Changhong International Holdings (Hong Kong) Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Minsheng Logistics Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Hongxin Software Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Jiahong Industrial Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong International Hotel Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong International Travel Service Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Network Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Hefei Changhong New Energy Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Lejiayi Chain Management Co. Ltd.
Control by same controlling shareholder and ultimate
controller
PT.CHANGHONG ELECTRIC INDONESIA
Control by same controlling shareholder and ultimate
controller
CHANGHONG (HK) TRADING LIMITED
Control by same controlling shareholder and ultimate
controller
CHANGHONG ELECTRIC (AUSTRALIA)
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Device Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Gerun Environmental Protection Tech.
Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Huafeng Enterprise Group Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Property Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Smart Health Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
BVCH Optronics (Sichuan) Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Group Finance Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Education Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Electronic System Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Orion.PDP.Co.ltd
Control by same controlling shareholder and ultimate
controller
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Other related party Relationship with the company
Changhong Europe Electric s.r.o
Control by same controlling shareholder and ultimate
controller
Yibin Red-Star Electronics Co. Ltd.
Control by same controlling shareholder and ultimate
controller
CHANGHONG ELECTRIC MIDDLE EASTFZCO
Control by same controlling shareholder and ultimate
controller
Mianyang Huafeng Interconnection Tech. Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Intelligent Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Hongcheng Real Estate Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Huanyu Industrial Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Mianyang Science & Technology City Big Data Tech. Co.Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Changhong Jineng Sunshine Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Changhong Shundatong Tech. Development Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Chengdu Changhong Electronic Technology Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Yuanxin Financial Lease Co. Ltd.
Control by same controlling shareholder and ultimate
controller
Sichuan Hongmofang Network Technology Co. Ltd. Other enterprise that have the same controlling shareholder
Sichuan Hongyu Metal Manufacturing Co. Ltd.
Associated enterprise of other enterprise that have the same
controlling shareholder
Sichuan Yunyou Internet Technology Co. Ltd.
Associated enterprise of other enterprise that have the same
controlling shareholder
Sichuan Changxin Refrigeration Parts Co. Ltd. Associated enterprise of controlling shareholder
Mianyang Highly Electric Co. Ltd. Associated enterprise of controlling shareholder
Sichuan Hongran Green Energy Co. Ltd. Associated enterprise of controlling shareholder
Beijing Changhong Tech. Co. Ltd Subsidiary of the controlling shareholder's associate
(ii) Related transactions
1. Purchasing commodity
Related party Content
Current amount
(in 10 thousand
Yuan)
Last period
(in 10 thousand
Yuan)
Sichuan Changhong Electric Co. Ltd.Purchasing
commodity
18465.23 18083.03
Sichuan Changhong Electronics Holding Group Co. Ltd.Purchasing
commodity
1.59
Changhong Huayi Compressor Co. Ltd.
Purchasing
commodity
17759.15 20599.19
Sichuan Changhong Mold Plastic Tech. Co. Ltd.Purchasing
commodity
28634.55 38909.02
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Related party Content
Current amount
(in 10 thousand
Yuan)
Last period
(in 10 thousand
Yuan)
Sichuan Changhong Jijia Fine Co. Ltd.Purchasing
commodity
13209.22 17967.00
Sichuan Changhong Package Printing Co. Ltd.Purchasing
commodity
3616.69 6539.21
Sichuan Changhong Precision Electronics Tech. Co. Ltd.Purchasing
commodity
744.35 1030.50
Sichuan Changhong New Energy Technology Co. Ltd.Purchasing
commodity
1.71 0.59
081 Electronic Group
Purchasing
commodity
10.08 95.04
Guangdong Changhong Electronics Co. Ltd.Purchasing
commodity
196.21 120.45
Sichuan Changhong Intelligent Manufacturing Technology
Co. Ltd.
Purchasing
commodity
3.25 16.10
Sichuan Hongwei Technology Co. Ltd.Purchasing
commodity
168.36
Sichuan Zhiyijia Network Technology Co. Ltd.Purchasing
commodity
44.87 23.61
Sichuan Changhong Power Source Co. Ltd.Purchasing
commodity
0.30
Sichuan Changhong Electronic Products Co. Ltd.Purchasing
commodity
1209.94 2014.78
Sichuan Changhong Property Services Co. Ltd.Purchasing
commodity
0.03
Sichuan Ailian Science & Technology Co. Ltd.Purchasing
commodity
1641.27 1175.20
Hunan Grand-Pro Intelligent Tech. Company
Purchasing
commodity
766.89 221.15
Sichuan Aichuang Science & Technology Co. Ltd.Purchasing
commodity
4319.04 4175.90
Sichuan Changxin Refrigeration Parts Co. Ltd.Purchasing
commodity
13415.61 25519.21
Guangyuan Changhong Electronic Technology Co. Ltd.Purchasing
commodity
0.88
Sichuan Service Exp. Appliance Service Chain Co. Ltd.Purchasing
commodity
0.19
Mianyang Highly Electric Co. Ltd.Purchasing
commodity
7870.76 15545.66
Changhong Ruba Electric Company (Private) Ltd.
Purchasing
commodity
4630.78 12020.14
Hongyuan Ground Energy Heat Tech. Co. Ltd.Purchasing
commodity
374.67
Sichuan Tianyou Guigu Technology Co. Ltd.Purchasing
commodity
-29.26
Chengdu Guigu Environmental Tech. Co. Ltd.
Purchasing
commodity
6.46
Hefei Changhong Industrial Co. Ltd.Purchasing
commodity
14.65
Changhong International Holdings (Hong Kong) Co. Ltd.
Purchasing
commodity
870.43
Total 117802.04 164201.64
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
2. Accept the labor services
Related party Content Current amount Last period
Sichuan Changhong Electronics Holding Group Co. Ltd.
Accept the labor
services
711931.57 355937.03
Sichuan Changhong Electric Co. Ltd.
Accept the labor
services
10404495.04 5194850.47
Sichuan Changhong Minsheng Logistics Co. Ltd.
Accept the labor
services
183300319.49 234971186.87
Sichuan Changhong Mold Plastic Tech. Co. Ltd.
Accept the labor
services
509633.16 82518.41
Sichuan Service Exp. Appliance Service Chain Co. Ltd.
Accept the labor
services
91822618.54 60542230.02
Sichuan Hongxin Software Co. Ltd.
Accept the labor
services
703487.72 560220.75
Guangdong Changhong Electronics Co. Ltd.
Accept the labor
services
142467.10 269770.19
Sichuan Jiahong Industrial Co. Ltd.
Accept the labor
services
471372.03 59318.00
Sichuan Changhong International Hotel Co. Ltd.
Accept the labor
services
10827.32 88864.48
Sichuan Changhong International Travel Service Co. Ltd.
Accept the labor
services
99699.89 226778.81
Sichuan Changhong Property Services Co. Ltd.
Accept the labor
services
1627043.79 1835408.94
Sichuan Hongwei Technology Co. Ltd.
Accept the labor
services
4108738.76 106473.57
Sichuan Zhiyijia Network Technology Co. Ltd.
Accept the labor
services
113548.74 9004733.41
Sichuan Changhong Network Technology Co. Ltd.
Accept the labor
services
24474.11
Sichuan Changhong Intelligent Manufacturing Technology
Co. Ltd.
Accept the labor
services
884.96 900754.83
Sichuan Changhong Jijia Fine Co. Ltd.
Accept the labor
services
642657.00 25195.83
Sichuan Changhong Electronic Products Co. Ltd.
Accept the labor
services
450488.09
Sichuan Hongmofang Network Technology Co. Ltd.
Accept the labor
services
2122.64
Total 294671847.75 314699203.81
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
3. Purchase fuel and power
Related party Content Current amount Last period
Sichuan Changhong Electric Co. Ltd.
Fuel and power
accepted
8261144.64 10300048.70
Changhong Huayi Compressor Co. Ltd.
Fuel and power
accepted
188715.05 383150.11
Guangdong Changhong Electronics Co. Ltd.
Fuel and power
accepted
463030.92 501569.74
Hefei Changhong New Energy Technology Co. Ltd.
Fuel and power
accepted
160813.32 147179.16
Sichuan Changhong Property Services Co. Ltd.
Fuel and power
accepted
6680.80 9849.75
Sichuan Hongran Green Energy Co. Ltd.
Fuel and power
accepted
189240.25 708567.36
Total 9269624.98 12050364.82
4. Sales of goods/provide labor service
Related party Content
Current amount
(in 10 thousand
Yuan)
Last period
(in 10 thousand
Yuan)
Sichuan Changhong Electric Co. Ltd.Sales of goods/provide
labor service
430.79 623.87
Sichuan Changhong Electronics Holding Group Co. Ltd. Sales of goods 31.91
Sichuan Changhong Jijia Fine Co. Ltd. Sales of goods 2555.35 2698.81
Sichuan Changhong Mold Plastic Tech. Co. Ltd.Sales of goods/provide
labor service
8468.88 10882.50
Lejiayi Chain Management Co. Ltd. Sales of goods 451.13 3428.75
PT.CHANGHONGELECTRICINDONESIA Sales of goods 670.07 381.52
CHANGHONG(HK)TRADINGLIMITED Sales of goods 37764.29 19688.72
CHANGHONGELECTRIC(AUSTRALIA) Sales of goods 5137.25 1712.51
Sichuan Hongwei Technology Co. Ltd. Sales of goods 0.76
Sichuan Changhong Device Technology Co. Ltd.Sales of goods/provide
labor service
10.56 49.93
Sichuan Changhong Minsheng Logistics Co. Ltd. Sales of goods 42.12 88.66
Sichuan Service Exp. Appliance Service Chain Co. Ltd. Sales of goods 194.88 330.81
Sichuan Changhong Gerun Environmental Protection
Tech. Co. Ltd.Sales of goods 418.11 444.60
Hefei Changhong Industrial Co. Ltd. Sales of goods 0.24 111.05
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Related party Content
Current amount
(in 10 thousand
Yuan)
Last period
(in 10 thousand
Yuan)
Sichuan Huafeng Enterprise Group Co. Ltd.Sales of goods/provide
labor service
37.71
Sichuan Zhiyijia Network Technology Co. Ltd. Sales of goods 179508.62 105495.05
Sichuan Changhong Property Co. Ltd.Sales of goods/provide
labor service
157.86
Sichuan Changhong Network Technology Co. Ltd. Sales of goods 0.10
Sichuan Changhong Smart Health Technology Co. Ltd. Sales of goods 0.44
Sichuan Changhong Property Services Co. Ltd. Sales of goods 4.60
Guangdong Changhong Electronics Co. Ltd. Sales of goods 7.79 1.72
BVCH Optronics (Sichuan) Co. Ltd. Sales of goods 0.68
Sichuan Changhong Electronic Products Co. Ltd. Sales of goods 8.22
Sichuan Changhong Group Finance Co. Ltd. Sales of goods 1.84
Changhong Huayi Compressor Co. Ltd.
Sales of goods/provide
labor service
37.85
Sichuan Changhong Package Printing Co. Ltd. Sales of goods 0.35
Sichuan Changhong Power Source Co. Ltd. Sales of goods 1.81 4.41
Sichuan Changhong Education Technology Co. Ltd. Sales of goods 70.86
081 Electronic Group Sales of goods 1.72
Guangyuan Changhong Electronic Technology Co. Ltd. Sales of goods 0.35 63.28
Sichuan Ailian Science & Technology Co. Ltd. Sales of goods 2.09
Sichuan Jiahong Industrial Co. Ltd. Sales of goods 13.87
Sichuan Changhong New Energy Technology Co. Ltd. Sales of goods 42.57 3.06
Sichuan Changhong International Hotel Co. Ltd. Sales of goods 3.62
Sichuan Changhong Precision Electronics Tech. Co. Ltd. Sales of goods 0.09
Orion.PDP.Co.ltd Sales of goods 1049.00 1936.82
Changhong International Holdings (Hong Kong) Co.
Ltd.Sales of goods 3122.61
Changhong Europe Electric s.r.o Sales of goods 1092.95
CHANGHONG ELECTRIC MIDDLE EAST FZCO Sales of goods 446.95 717.43
Sichuan Aichuang Science & Technology Co. Ltd.Sales of goods/provide
labor service
28.37 26.54
Sichuan Changxin Refrigeration Parts Co. Ltd. Sales of goods 5105.82 8074.51
Mianyang Huafeng Interconnection Tech. Co. Ltd. Sales of goods 324.56
Hongyuan Ground Energy Heat Tech. Co. Ltd. Sales of goods 2365.22 1504.84
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Related party Content
Current amount
(in 10 thousand
Yuan)
Last period
(in 10 thousand
Yuan)
Chengdu Guigu Environmental Tech. Co. Ltd. Sales of goods 62.47 893.80
Changhong Ruba Electric Company (Private) Ltd. Sales of goods 258.73 7299.85
Sichuan Changhong Intelligent Manufacturing
Technology Co. Ltd.Provide labor service 49.45
Sichuan Changhong Intelligent Technology Co. Ltd. Provide labor service 54.72
Total 249378.81 167124.46
Businesses between the Company and its connected persons are generally conducted under market operation rules as if they
were the same as other business counter parties. For price of sale or purchase and provision of other labor service between the
Company and its related parties the state pricing is applicable if the pricing do exists; in case of absence of such state pricing
price is determined under market price; in case of absence of such market price price is determined by both parties at actua l
cost plus reasonable expenses; for some special services the price of which cannot be determined under the rule of cost plus
expense the price shall be determined by both parties by negotiation.
5. Provide fuels
Related party Content Current amount Last period
Guangdong Changhong Electronics Co. Ltd. Provide fuels 12670.97 591379.86
Sichuan Changhong Minsheng Logistics Co. Ltd. Provide fuels 34091.79 46424.66
Sichuan Changhong Jijia Fine Co. Ltd. Provide fuels 65789.86 63436.46
Sichuan Changhong Mold Plastic Tech. Co. Ltd. Provide fuels 2965740.57 3686814.01
Sichuan Zhiyijia Network Technology Co. Ltd. Provide fuels 16480.49
Sichuan Changhong Precision Electronics Tech. Co. Ltd. Provide fuels 4085.08 693.51
Sichuan Changhong Device Technology Co. Ltd. Provide fuels 361054.22 402243.20
Sichuan Service Exp. Appliance Service Chain Co. Ltd. Provide fuels 4860.07
Total 3459912.98 4795851.77
6. Related rental
(1) Rent out
Lessor Lessee Type of assets
Leasing
income in this
period
Leasing income
last period
CHANGHON
G MEILING
Sichuan Changhong Jijia Fine Co. Ltd. Forklift 12713.38 8142.41
CHANGHON
G MEILING
Sichuan Changhong Jijia Fine Co. Ltd. Warehouse 66900.76 66640.08
CHANGHON
G MEILING
Sichuan Changhong Jijia Fine Co. Ltd. Apartment 3417.92 3417.92
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Lessor Lessee Type of assets
Leasing
income in this
period
Leasing income
last period
CHANGHON
G MEILING
Sichuan Changhong Jijia Fine Co. Ltd. Workshop 134544.22 271283.23
CHANGHON
G MEILING
Sichuan Changhong Jijia Fine Co. Ltd. Appliance 300.00
CHANGHON
G MEILING
Sichuan Changhong Mold Plastic Tech. Co. Ltd. Warehouse 173480.38 239218.86
CHANGHON
G MEILING
Sichuan Changhong Mold Plastic Tech. Co. Ltd. Workshop 357577.84 711904.98
CHANGHON
G MEILING
Sichuan Changhong Mold Plastic Tech. Co. Ltd. Apartment 249003.66 295066.43
CHANGHON
G MEILING
Sichuan Changhong Minsheng Logistics Co. Ltd. Apartment 69201.18
CHANGHON
G MEILING
Sichuan Service Exp. Appliance Service Chain Co.Ltd.office 132641.68
CHANGHON
G MEILING
Sichuan Service Exp. Appliance Service Chain Co.Ltd.Workshop 43241.00
CHANGHON
G MEILING
Sichuan Service Exp. Appliance Service Chain Co.Ltd.
Forklift 4800.00 4800.00
CHANGHON
G MEILING
Hefei Changhong Industrial Co. Ltd. Apartment 56700.43 96003.82
CHANGHON
G MEILING
Sichuan Changhong Electric Co. Ltd. Apartment 20314.50
CHANGHON
G MEILING
Sichuan Changhong Precision Electronics Tech. Co.Ltd.
Apartment 9864.00 15657.14
CHANGHON
G MEILING
Sichuan Ailian Science & Technology Co. Ltd. Warehouse 1343.10 1343.10
CHANGHON
G MEILING
Sichuan Aichuang Science & Technology Co. Ltd. Warehouse 16227.34 18759.84
CHANGHON
G MEILING
Sichuan Aichuang Science & Technology Co. Ltd. 叉车 2532.50 1713.68
CHANGHON
G MEILING
Sichuan Hongwei Technology Co. Ltd. Apartment 31200.00
CHANGHON
G MEILING
Sichuan Zhiyijia Network Technology Co. Ltd. Apartment 98968.06
Zhongke
Meiling
Sichuan Changhong Minsheng Logistics Co. Ltd. Workshop 1310400.00 1411295.19
Changhong
Air-conditione
r
Chengdu Guigu Environmental Tech. Co. Ltd. Workshop 28403.67
Changhong
Air-conditione
r
Sichuan Changhong Mold Plastic Tech. Co. Ltd. Workshop 2962527.42
Changhong
Air-conditione
r
Sichuan Changhong Jijia Fine Co. Ltd. Workshop 4292185.61
Changhong
Air-conditione
r
Sichuan Changhong Electric Co. Ltd. Workshop 327319.42
Changhong
Air-conditione
r
Sichuan Changhong Electric Co. Ltd. meeting room 1834.86
Zhongshan Guangdong Changhong Electronics Co. Ltd. Second living 55721.47 17477.59
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Lessor Lessee Type of assets
Leasing
income in this
period
Leasing income
last period
Changhong area
Zhongshan
Changhong
Sichuan Changhong Minsheng Logistics Co. Ltd.Partial lease of
office building
16422.70 18637.42
Zhongshan
Changhong
Sichuan Changhong Mold Plastic Tech. Co. Ltd.Second living
area
27080.00 6770.00
Zhongshan
Changhong
Sichuan Changhong Device Technology Co. Ltd.Second living
area
10861.40
Zhongshan
Changhong
Sichuan Changhong Precision Electronics Tech. Co.Ltd.Second living
area
25400.00 4050.00
Jiangxi
Meiling
Sichuan Changhong Mold Plastic Tech. Co. Ltd. Workshop 409855.80 390338.86
Jiangxi
Meiling
Sichuan Changhong Minsheng Logistics Co. Ltd. warehouse office 6857.14
Ridian
Technology
Sichuan Changhong Device Technology Co. Ltd. Workshop 764656.24 711493.90
Ridian
Technology
Sichuan Hongwei Technology Co. Ltd. Workshop 45257.14 45257.14
Total 11573257.64 4535768.77
(2) Lessee of related parties
Lessor Lessee Type of assets
Leasing expense in
this period
Leasing expense
last period
Sichuan Changhong Electric Co. Ltd.
Changhong
Air-conditioner
Workshop office 264244.07
Chengdu Changhong Electronic Technology
Co. Ltd.
Hongmei Intelligent office 310722.13 240812.32
Guangdong Changhong Electronics Co.Ltd.Ground energy heat
pump
Staff dormitory 42425.47 12970.19
Sichuan Changhong Electric Co. Ltd.Mianyang
Refrigeration
Workshop leasing 1766436.48 1620516.65
Sichuan Changhong Electronics Holding
Group Co. Ltd.Mianyang
Refrigeration
Staff dormitory 25087.32 14000.23
Guangdong Changhong Electronics Co.Ltd.Ridian Technology Staff dormitory 32765.89
Sichuan Changhong Electric Co. Ltd. Ridian Technology Staff dormitory 48257.03
Beijing Changhong Tech. Co. Ltd Meiling Group office 78932.59
Sichuan Changhong Electric Co. Ltd. Meiling Group office 885487.38 194009.55
Guangdong Changhong Electronics Co.Ltd.Zhongshan
Changhong
Staff dormitory 67231.64
Guangdong Changhong Electronics Co.Ltd.Zhongshan
Changhong
Workshop leasing 338551.56
Total 3781208.97 2161241.53
7. Related guarantee
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount (in 10 thousand
Yuan)
Start Date due
Completed
(Y/N)
CHANGHONG
MEILING
Jiangxi Meiling 5000.00 2019.03.12 2020.03.11 Y
CHANGHONG
MEILING
Jiangxi Meiling 10000.00 2019.03.14 2020.03.14 Y
CHANGHONG
MEILING
Jiangxi Meiling 10000.00 2020.04.09 2021.04.09 N
CHANGHONG
MEILING
Meiling Group 6000.00 2020.03.26 2021.03.26 N
CHANGHONG
MEILING
Non-ferrous metals 1000.00 2020.03.20 2021.03.05 N
CHANGHONG
MEILING
Changhong
Air-conditioner
20000.00 2019.07.30 2020.03.25 Y
CHANGHONG
MEILING
ChanghongRuba 2062.41 2019.01.28 2020.02.15 Y
CHANGHONG
MEILING
ChanghongRuba 2103.51 2019.12.23 2021.01.05 N
CHANGHONG
MEILING
ChanghongRuba 1983.25 2020.01.17 2020.12.24 N
CHANGHONG
MEILING
Ridian Technology 4000.00 2019.03.31 2020.03.30 Y
CHANGHONG
MEILING
Ridian Technology 6500.00 2019.08.22 2020.08.22 N
CHANGHONG
MEILING
Ridian Technology 2500.00 2020.01.28 2020.07.27 N
CHANGHONG
MEILING
Ridian Technology 3000.00 2020.03.14 2021.03.13 N
CHANGHONG
MEILING
Ridian Technology 4000.00 2020.03.30 2021.03.31 N
CHANGHONG
MEILING
Zhongke Meiling 3000.00 2019.07.18 2020.07.17 N
CHANGHONG
MEILING
Zhongke Meiling 2000.00 2019.12.30 2020.11.22 N
CHANGHONG
MEILING
Zhongke Meiling 3000.00 2019.08.20 2020.08.19 N
CHANGHONG
MEILING
Zhongke Meiling 2000.00 2019.08.23 2020.08.23 N
CHANGHONG
MEILING
Zhongke Meiling 920.00 2019.09.24 2020.09.24 N
CHANGHONG
MEILING
Zhongke Meiling 1000.00 2020.03.10 2021.03.10 N
CHANGHONG
MEILING
Zhongke Meiling 1500.00 2020.06.01 2021.03.12 N
CHANGHONG
MEILING
Zhongke Meiling 500.00 2020.06.30 2021.03.15 N
CHANGHONG
MEILING
Zhongshan
Changhong
10000.00 2018.08.09 2019.08.09 Y
CHANGHONG
MEILING
Zhongshan
Changhong
5000.00 2018.10.23 2019.10.23 Y
CHANGHONG
MEILING
Zhongshan
Changhong
10000.00 2019.01.25 2020.01.24 Y
CHANGHONG Zhongshan 5500.00 2019.03.15 2020.03.15 Y
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount (in 10 thousand
Yuan)
Start Date due
Completed
(Y/N)
MEILING Changhong
CHANGHONG
MEILING
Zhongshan
Changhong
10000.00 2019.03.31 2020.03.30 Y
CHANGHONG
MEILING
Zhongshan
Changhong
5000.00 2019.06.20 2020.06.20 Y
CHANGHONG
MEILING
Zhongshan
Changhong
15000.00 2019.06.28 2020.06.27 N
CHANGHONG
MEILING
Zhongshan
Changhong
2000.00 2019.08.21 2020.08.20 N
CHANGHONG
MEILING
Zhongshan
Changhong
10000.00 2019.08.31 2020.08.31 N
CHANGHONG
MEILING
Zhongshan
Changhong
20000.00 2020.06.12 2021.03.10 N
CHANGHONG
MEILING
Zhongshan
Changhong
5000.00 2020.03.09 2021.03.09 N
CHANGHONG
MEILING
Zhongshan
Changhong
15000.00 2020.01.10 2021.01.10 N
CHANGHONG
MEILING
Zhongshan
Changhong
5500.00 2020.03.15 2021.03.15 N
CHANGHONG
MEILING
Zhongshan
Changhong
17900.00 2020.04.14 2021.04.13 N
CHANGHONG
MEILING
Zhongshan
Changhong
20000.00 2020.03.30 2021.03.30 N
CHANGHONG
MEILING
Zhongshan
Changhong
12000.00 2020.04.28 2021.04.28 N
Counter guarantee:
Jiangxi Meiling
CHANGHONG
MEILING
5000.00 2019.03.12 2020.03.11 Y
Jiangxi Meiling
CHANGHONG
MEILING
10000.00 2019.03.14 2020.03.14 Y
Jiangxi Meiling
CHANGHONG
MEILING
10000.00 2020.04.09 2021.04.09 N
Meiling Group
CHANGHONG
MEILING
6000.00 2020.03.26 2021.03.26 N
Non-ferrous metals
CHANGHONG
MEILING
1000.00 2020.03.20 2021.03.05 N
Changhong
Air-conditioner
CHANGHONG
MEILING
20000.00 2019.07.30 2020.03.25 Y
ChanghongRuba
CHANGHONG
MEILING
2062.41 2019.01.28 2020.02.15 Y
ChanghongRuba
CHANGHONG
MEILING
2103.51 2019.12.23 2021.01.05 N
ChanghongRuba
CHANGHONG
MEILING
1983.25 2020.01.17 2020.12.24 N
Ridian Technology
CHANGHONG
MEILING
4000.00 2019.03.31 2020.03.30 Y
Ridian Technology
CHANGHONG
MEILING
6500.00 2019.08.22 2020.08.22 N
Ridian Technology
CHANGHONG
MEILING
2500.00 2020.01.28 2020.07.27 N
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount (in 10 thousand
Yuan)
Start Date due
Completed
(Y/N)
Ridian Technology
CHANGHONG
MEILING
3000.00 2020.03.14 2021.03.13 N
Ridian Technology
CHANGHONG
MEILING
4000.00 2020.03.30 2021.03.31 N
Zhongke Meiling
CHANGHONG
MEILING
3000.00 2019.07.18 2020.07.17 N
Zhongke Meiling
CHANGHONG
MEILING
2000.00 2019.12.30 2020.11.22 N
Zhongke Meiling
CHANGHONG
MEILING
3000.00 2019.08.20 2020.08.19 N
Zhongke Meiling
CHANGHONG
MEILING
2000.00 2019.08.23 2020.08.23 N
Zhongke Meiling
CHANGHONG
MEILING
920.00 2019.09.24 2020.09.24 N
Zhongke Meiling
CHANGHONG
MEILING
1000.00 2020.03.10 2021.03.10 N
Zhongke Meiling
CHANGHONG
MEILING
1500.00 2020.06.01 2021.03.12 N
Zhongke Meiling
CHANGHONG
MEILING
500.00 2020.06.30 2021.03.15 N
Zhongshan
Changhong
CHANGHONG
MEILING
10000.00 2018.08.09 2019.08.09 Y
Zhongshan
Changhong
CHANGHONG
MEILING
5000.00 2018.10.23 2019.10.23 Y
Zhongshan
Changhong
CHANGHONG
MEILING
10000.00 2019.01.25 2020.01.24 Y
Zhongshan
Changhong
CHANGHONG
MEILING
5500.00 2019.03.15 2020.03.15 Y
Zhongshan
Changhong
CHANGHONG
MEILING
10000.00 2019.03.31 2020.03.30 Y
Zhongshan
Changhong
CHANGHONG
MEILING
5000.00 2019.06.20 2020.06.20 Y
Zhongshan
Changhong
CHANGHONG
MEILING
15000.00 2019.06.28 2020.06.27 N
Zhongshan
Changhong
CHANGHONG
MEILING
2000.00 2019.08.21 2020.08.20 N
Zhongshan
Changhong
CHANGHONG
MEILING
10000.00 2019.08.31 2020.08.31 N
Zhongshan
Changhong
CHANGHONG
MEILING
20000.00 2020.06.12 2021.03.10 N
Zhongshan
Changhong
CHANGHONG
MEILING
5000.00 2020.03.09 2021.03.09 N
Zhongshan
Changhong
CHANGHONG
MEILING
15000.00 2020.01.10 2021.01.10 N
Zhongshan
Changhong
CHANGHONG
MEILING
5500.00 2020.03.15 2021.03.15 N
Zhongshan
Changhong
CHANGHONG
MEILING
17900.00 2020.04.14 2021.04.13 N
Zhongshan
Changhong
CHANGHONG
MEILING
20000.00 2020.03.30 2021.03.30 N
Zhongshan CHANGHONG 12000.00 2020.04.28 2021.04.28 N
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Secured party Sponsored party
Maximum guarantee
amount (in 10 thousand
Yuan)
Start Date due
Completed
(Y/N)
Changhong MEILING
8. Assets transfer debt restructuring of related parties
Related party Type Current amount Last period
Sichuan Changhong Intelligent Manufacturing
Technology Co. Ltd.Purchase & build fixed
assets
769469.03 27193066.98
Sichuan Hongcheng Real Estate Co. Ltd.Purchase & build fixed
assets
56603.77
Sichuan Changhong Electric Co. Ltd. Purchase intangible assets 471698.11 241379.31
Sichuan Changhong Electric Co. Ltd.Purchase & build fixed
assets
32509712.14
Sichuan Hongxin Software Co. Ltd.Purchase & build fixed
assets
1490566.05
Sichuan Changhong Network Technology Co. Ltd.Purchase & build fixed
assets
820476.33
Sichuan Changhong Electronic System Co. Ltd.Purchase & build fixed
assets
142500.00
Sichuan Zhiyijia Network Technology Co. Ltd. Purchasing fixed assets 816132.79
Sichuan Huanyu Industrial Co. Ltd.Purchase & build fixed
assets
2164755.99 17007856.54
Sichuan Jiahong Industrial Co. Ltd.Purchase & build fixed
assets
1347541.41
Mianyang Science & Technology City Big Data Tech.
Co. Ltd.
Purchase & build fixed
assets
1112815.42
Sichuan Changhong Jineng Sunshine Technology Co.Ltd.Purchasing fixed assets 42348.02
Sichuan Changhong Gerun Environmental Protection
Tech. Co. Ltd.Sales of fixed assets 8149.87
Sichuan Changhong Electronics Holding Group Co.Ltd.Sales of fixed assets 13993.08
Sichuan Jiahong Industrial Co. Ltd. Sales of fixed assets 4813.70
Changhong Shundatong Tech. Development Co. Ltd. Sales of fixed assets 128199.13
Total 4264403.94 82077673.73
9. Other
Name of company Content
Current amount (in 10
thousand Yuan)
Last period(in 10
thousand Yuan)
Yuanxin Financial Lease
Co. Ltd.
Enterprise payment business
financial leasing
1875.83 184.31
10. Related transaction with Changhong Finance Company
(1) Saving balance
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Name of company Ending balance Opening balance
Interest income from
bank saving
CHANGHONG MEILING CO.LTD. 2689352840.31 3081631716.95 40888177.59
Hebei Hongmao Household Appliance
Technology Co. Ltd
223926.31 1799703.59 18385.72
Sichuan Changhong Air-conditioner Co. Ltd. 248629961.93 424969027.90 6273340.11
Zhongshan Changhong Electric Co. Ltd. 319207885.32 13782922.16 206129.08
Hefei Meiling Group Holdings Limited 3734.23 798.43 3735.08
Mianyang Meiling Refrigeration Co. Ltd. 5933.88 925.37 8.51
Zhongke Meiling Cryogenic Technology Co.Ltd.
139961092.75 90904816.77 1680261.47
Jiangxi Meiling Electric Appliance Co. Ltd. 9524.64 9504.34 20.30
Changhong Meiling Ridian Technology Co.
Ltd.
61856693.95 76106470.22 367411.73
Hongyuan Ground Energy Heat Pump Tech.
Co. Ltd.
284240.78 100690.19 2152.06
Hongyuan Ground Energy Heat Pump Tech.(Zhongshan) Co. Ltd
26631718.43 13076054.46 242655.85
Anhui Tuoxing Technology Co. Ltd. 10000000.00
Total 3496167552.53 3702382630.38 49682277.50
(2) Notes discounted
Name of company
Commercial bill
book discounted
amount
Commercial bill
discounted amount
Expenses of discounted
CHANGHONG MEILING CO.LTD. 517662866.10 513666723.14 3996142.96
Sichuan Changhong Air-conditioner Co. Ltd. 221122027.51 219109026.04 2013001.47
Hongyuan Ground Energy Heat Pump Tech.(Zhongshan) Co. Ltd
7422611.40 7340947.30 81664.10
Total 746207505.01 740116696.48 6090808.53
(3) Notes issued
Name of company Issuing from Note amount Type
CHANGHONG MEILING CO.LTD.
Sichuan Changhong Group Finance
Co. Ltd.
367378133.83 Bank acceptance
Hebei Hongmao Household Appliance
Technology Co. Ltd
Sichuan Changhong Group Finance
Co. Ltd.
2105534.66 Bank acceptance
Sichuan Changhong Air-conditioner Co.Ltd.Sichuan Changhong Group Finance
Co. Ltd.
543181338.48 Bank acceptance
Zhongke Meiling Cryogenic Technology
Co. Ltd.
Sichuan Changhong Group Finance
Co. Ltd.
12343642.11 Bank acceptance
Changhong Meiling Ridian Technology
Co. Ltd.
Sichuan Changhong Group Finance
Co. Ltd.
36795517.40 Bank acceptance
Zhongshan Changhong Electric Co. Ltd.Sichuan Changhong Group Finance
Co. Ltd.
59603694.39 Bank acceptance
Hongyuan Ground Energy Heat Pump
Tech. (Zhongshan) Co. Ltd
Sichuan Changhong Group Finance
Co. Ltd.
8173830.28 Bank acceptance
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Name of company Issuing from Note amount Type
Total 1029581691.15
(4) Borrowing: Nil
(5) Accounts receivable factoring: Nil
(III) Come and go balance with related parties
1. Receivable items
Item Related party
Ending balance Opening balance
Book balance
Bad
debt
provisio
n
Book balance
Bad debt
provision
Account
receivable
Sichuan Changhong Electric Co. Ltd. 506659.27
Account
receivable
Orion.PDP.Co.ltd 6012889.26 8267321.25
Account
receivable
Sichuan Changhong Mold Plastic Tech. Co. Ltd. 437516.22 162163.72
Account
receivable
Changhong Europe Electric s.r.o 10896766.89 1664405.17
Account
receivable
CHANGHONGELECTRIC(AUSTRALIA) 46730878.99 37804702.10
Account
receivable
Sichuan Changhong Minsheng Logistics Co. Ltd. 49961.37 41163.13
Account
receivable
Sichuan Service Exp. Appliance Service Chain
Co. Ltd.
121083.95 211621.68
Account
receivable
PT.CHANGHONGELECTRICINDONESIA 3996700.13 3844393.51
Account
receivable
CHANGHONG(HK)TRADINGLIMITED 174327884.40 75242050.75
Account
receivable
Sichuan Changhong Device Technology Co. Ltd. 327.80
Account
receivable
Lejiayi Chain Management Co. Ltd. 3744484.31 12461940.42
Account
receivable
Sichuan Zhiyijia Network Technology Co. Ltd. 698675608.77 375948123.63
Account
receivable
Sichuan Changhong Property Co. Ltd. 159690.33 159690.33
Account
receivable
Sichuan Changhong New Energy Technology
Co. Ltd.
347045.60
Account
receivable
Hefei Changhong Industrial Co. Ltd. 50000.00 50000.00
Account
receivable
Changhong International Holdings (Hong Kong)
Co. Ltd.
10190492.45
Account
receivable
Guangdong Changhong Electronics Co. Ltd. 224817.29
Account
receivable
CHANGHONG ELECTRIC MIDDLE EAST
FZCO
2510737.61 1552183.58
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Related party
Ending balance Opening balance
Book balance
Bad
debt
provisio
n
Book balance
Bad debt
provision
Account
receivable
Sichuan Aichuang Science & Technology Co.Ltd.
9210.63 43297.65
Account
receivable
Sichuan Huafeng Enterprise Group Co. Ltd. 419133.90
Account
receivable
Hongyuan Ground Energy Heat Tech. Co. Ltd. 174921.11 10720675.24
Account
receivable
Changhong Ruba Electric Company (Private) Ltd. 79813363.98 86214001.68
Account paid
in advance
Sichuan Zhiyijia Network Technology Co. Ltd. 1622.40
Account paid
in advance
Sichuan Changhong Minsheng Logistics Co. Ltd. 15295.00
Account paid
in advance
Sichuan Hongran Green Energy Co. Ltd. 30988.36
Account paid
in advance
Sichuan Changhong Mold Plastic Tech. Co. Ltd. 4138.06 16.80
Other account
receivable
Sichuan Service Exp. Appliance Service Chain
Co. Ltd.
586370.70 500000.00
Other account
receivable
Sichuan Changhong Mold Plastic Tech. Co. Ltd.Other account
receivable
Sichuan Changhong Property Co. Ltd. 309410.65 309410.65
Other account
receivable
Sichuan Changhong Minsheng Logistics Co. Ltd. 9600.00
Other account
receivable
Sichuan Changhong International Hotel Co. Ltd. 27589.45 27589.45
Other account
receivable
081 Electronic Group 204504.86 204567.35
Other account
receivable
Changhong Huayi Compressor Co. Ltd. 45200.00
Other account
receivable
Hefei Changhong Industrial Co. Ltd. 122396.08 122396.08
Total 1040484238.97 615824765.02
2. Payable items
Item Related party Ending balance Opening balance
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Related party Ending balance Opening balance
Account payable Sichuan Changhong Electric Co. Ltd. 47403684.66 153791187.83
Account payable Sichuan Changhong Mold Plastic Tech. Co. Ltd. 163711166.53 75808653.32
Account payable Changhong Huayi Compressor Co. Ltd. 107819208.51 59533997.08
Account payable Sichuan Changhong Jijia Fine Co. Ltd. 97517019.30 12883071.50
Account payable Sichuan Changhong Minsheng Logistics Co. Ltd. 7351784.21 210699.13
Account payable Sichuan Changhong Package Printing Co. Ltd. 36799481.64 3080005.38
Account payable Sichuan Changhong Jineng Sunshine Technology Co. Ltd. 52743.33 20076.99
Account payable Sichuan Changhong Precision Electronics Tech. Co. Ltd. 6505997.90 1443759.01
Account payable 081 Electronic Group 231435.73 86951.38
Account payable Sichuan Changhong New Energy Technology Co. Ltd. 2950.00
Account payable Guangdong Changhong Electronics Co. Ltd. 957434.40 113504.45
Account payable Sichuan Changhong Power Source Co. Ltd. 1870.82 1870.82
Account payable Sichuan Hongyu Metal Manufacturing Co. Ltd. 14662.40 14662.40
Account payable Sichuan Service Exp. Appliance Service Chain Co. Ltd. 148664.39 127050.71
Account payable Sichuan Hongwei Technology Co. Ltd. 3225.71
Account payable Sichuan Hongxin Software Co. Ltd. 537698.11 340000.00
Account payable Sichuan Changhong Intelligent Manufacturing Technology
Co. Ltd.
6441303.46 15962820.73
Account payable Sichuan Changhong International Travel Service Co. Ltd. 48090.00 167858.10
Account payable Sichuan Changhong Electronic System Co. Ltd. 5432.53 5432.53
Account payable Sichuan Jiahong Industrial Co. Ltd. 14764.05 14764.05
Account payable Sichuan Changhong Network Technology Co. Ltd. 7229.72 7229.72
Account payable Sichuan Changhong Electronic Products Co. Ltd. 10459363.34 2097100.40
Account payable CHANGHONG(HK)TRADINGLIMITED 3052516.27 3052516.27
Account payable Sichuan Ailian Science & Technology Co. Ltd. 11283843.25 5500914.00
Account payable Sichuan Aichuang Science & Technology Co. Ltd. 39950187.50 24466981.06
Account payable Hunan Grand-Pro Intelligent Tech. Company 165453.10 9095322.04
Account payable Lejiayi Chain Management Co. Ltd. 16856.00
Account payable Guangyuan Changhong Electronic Technology Co. Ltd. 434414.70
Account payable Hefei Changhong Industrial Co. Ltd. 176773.35 1729.50
Account payable Mianyang Science & Technology City Big Data Tech. Co.
Ltd.
7540.79 7540.79
Account payable Sichuan Changxin Refrigeration Parts Co. Ltd. 48386359.56 692843.70
Account payable Mianyang Highly Electric Co. Ltd. 21066624.27 9379903.10
Account payable Changhong Ruba Electric Company (Private) Ltd. 27720921.72 20520728.81
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Related party Ending balance Opening balance
Account payable Changhong International Holdings (Hong Kong) Co. Ltd. 8392016.50 394743.12
Contractual
liabilities
Sichuan Changhong Electric Co. Ltd. 908774.50 997132.81
Contractual
liabilities
Sichuan Changhong Electronics Holding Group Co. Ltd. 5080.00
Contractual
liabilities
Lejiayi Chain Management Co. Ltd. 406331.40 2227.97
Contractual
liabilities
CHANGHONG(HK)TRADINGLIMITED 1026.32 1011.34
Contractual
liabilities
CHANGHONG ELECTRIC MIDDLE EAST FZCO 627.86
Contractual
liabilities
Changhong Huayi Compressor Co. Ltd. 66037.73 66037.73
Contractual
liabilities
081 Electronic Group 25.55 25.55
Contractual
liabilities
Sichuan Changhong Gerun Environmental Protection Tech.
Co. Ltd.
985795.36 659496.67
Contractual
liabilities
Sichuan Service Exp. Appliance Service Chain Co. Ltd. 80390.47 15364.13
Contractual
liabilities
Hefei Changhong Industrial Co. Ltd. 4022.06 6681.11
Contractual
liabilities
Sichuan Zhiyijia Network Technology Co. Ltd. 3985095.87 3816946.86
Contractual
liabilities
Hongyuan Ground Energy Heat Tech. Co. Ltd. 108490.57
Contractual
liabilities
Sichuan Aichuang Science & Technology Co. Ltd. 2000000.00
Contractual
liabilities
Guangdong Changhong Electronics Co. Ltd. 542700.00
Contractual
liabilities
Orion.PDP.Co.ltd 16471.68
Contractual
liabilities
Sichuan Changhong International Hotel Co. Ltd. 237300.00
Other account
payable
Sichuan Changhong Electric Co. Ltd. 10980589.69 5861224.39
Other account
payable
Sichuan Changhong Mold Plastic Tech. Co. Ltd. 1700295.88 1700295.88
Other account Sichuan Changhong Jijia Fine Co. Ltd. 400500.00 400500.00
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Related party Ending balance Opening balance
payable
Other account
payable
Sichuan Changhong Gerun Environmental Protection Tech.
Co. Ltd.
10000.00 10000.00
Other account
payable
Changhong Huayi Compressor Co. Ltd. 1598900.00 1598900.00
Other account
payable
Sichuan Changhong Package Printing Co. Ltd. 51256.56 50000.00
Other account
payable
Sichuan Changhong Precision Electronics Tech. Co. Ltd. 192717.54 192717.54
Other account
payable
Sichuan Changhong Minsheng Logistics Co. Ltd. 550500.00 520500.00
Other account
payable
CHANGHONG(HK)TRADINGLIMITED 3926563.12 82671.18
Other account
payable
Sichuan Jiahong Industrial Co. Ltd. 22054.24 20002.24
Other account
payable
Sichuan Changhong Intelligent Manufacturing Technology
Co. Ltd.
2066743.98 1282495.95
Other account
payable
Hunan Grand-Pro Intelligent Tech. Company 250000.00 250000.00
Other account
payable
Yuanxin Financial Lease Co. Ltd. 18130775.34 1315045.86
Other account
payable
Mianyang Science & Technology City Big Data Tech. Co.Ltd.
113450.00
Other account
payable
Sichuan Changhong Jineng Sunshine Technology Co. Ltd. 553165.00 553165.00
Other account
payable
Sichuan Changxin Refrigeration Parts Co. Ltd. 46702.03 46702.03
Other account
payable
Sichuan Hongxin Software Co. Ltd. 61978.23 61978.23
Other account
payable
Sichuan Zhiyijia Network Technology Co. Ltd. 41940.00 41940.00
Total 696161640.17 418950358.95
(IV) Commitments from related parties: Nil
XII. Share-based payment: Nil
XIII. Contingency
1. Pending action or possible liabilities formed from arbitration: Nil
2. Contingency from external guarantee: Nil
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
3. Other contingency: Nil
XIV. Commitments: nil
XV. Events occurring after the balance sheet date
1. Important non-adjustment items: Nil
2. Profit distribution: Nil
3. Major sa les return : Nil
4. Other than the above mentioned events the Company have no other events occurred after balance sheet
date.XVI. Other significant matters
1. Correc t ion of prev ious per iods and inf luence : Nil
2. Debt rest ruc tur ing: Nil
3. Asse ts rep lacement : Nil
4. Pens ion p lan : Nil
5. Discont inuing opera t ion : Nil
6. Br a nc h inf or ma t ion
In 10 thousand Yuan
Item
Refrigerator
freezer
Washing
machine
AC Marketing
Small home
appliances
Other Sales in branch Total
Operation income 347191.32 281781.49 1274.25 51107.08 13862.62 15630.69 679586.07
Including: Income from
trading outside
341292.39 281781.49 1272.78 50714.65 4524.76 679586.07
Income from trading in
branch
5898.92 - 1.47 392.43 9337.87 15630.69
Operation expenses 362465.73 293377.86 1770.92 50329.95 12303.79 15556.64 704691.61
Operation profit -15274.41 -11596.37 -496.67 777.13 1558.83 74.05 -25105.54
Total assets 1160375.01 474036.48 5396.98 42325.14 23409.03 199028.55 1506514.09
Total liability 664269.73 348373.90 19121.31 32115.71 12668.70 53423.91 1023125.44
Supplementary information - - -
Depreciation and
amortization expenses
10066.58 6380.35 6.80 251.61 317.63 -42.96 17065.93
Capital expenditure 13343.65 7819.10 - 21.88 155.91 21340.54
Non-cash expenses except for
depreciation and amortization
43426.51 29058.20 -535.66 4218.99 2513.10 -531.61 79212.75
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
7. Other major transactions and events shows impact on investor’s decision-making: Nil
XVII. Notes to main items of financial statement of parent company
1. Account receivable
(1) Category of account receivable
Category
Ending balance
Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal
bad debt provision by single item
1475977585.83 86.41% 4893949.76 0.33% 1471083636.07
Including: current payment with
related party
1427811428.96 83.59% 1427811428.96
Account receivable with letter of
credit
43272207.11 2.53% 43272207.11
Account receivable with single minor
amount but withdrawal single item
bad debt provision
4893949.76 0.29% 4893949.76 100.00%
Account receivable withdrawal bad
debt provision by portfolio
232067230.27 13.59% 9670292.48 4.17% 222396937.79
Including: account receivable of
engineering customers
-
Receivables other than engineering
customers
232067230.27 13.59% 9670292.48 4.17% 222396937.79
Total 1708044816.10 100.00% 14564242.24 0.85% 1693480573.86
(Continued)
Category
Opening Balance
Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
Account receivable that withdrawal bad
debt provision by single item
1006525937.93 86.22% 3514443.05 0.35% 1003011494.88
Including: current payment with related
party
965981524.72 82.75% 965981524.72
Account receivable with letter of credit 37029970.16 3.17% 37029970.16
Account receivable with single minor
amount but withdrawal single item bad
debt provision
3514443.05 0.30% 3514443.05 100.00%
Account receivable withdrawal bad debt 160872283.13 13.78% 5320388.68 3.31% 155551894.45
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Category
Opening Balance
Book balance Bad debt provision
Book value
Amount Ratio Amount Ratio
provision by portfolio
Including: account receivable of
engineering customers
390215.80 0.03% 390215.80
Receivables other than engineering
customers
160482067.33 13.75% 5320388.68 3.32% 155161678.65
Total 1167398221.06 100.00% 8834831.73 0.76% 1158563389.33
1) Account receivable with single minor amount but withdrawal bad debt provision singly refers to the minor
single receivables and withdrawal bad debt provision by combination shows no risk characteristic of the
receivables 3 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
Account receivable of engineering customers
Account age
Ending balance
Account receivable Bad debt provision Provision ratio
Within 3 months (3 months included) 207597423.65 2075974.24 1.00%
Over 3 months and within 6 months (6
months included)
9066989.54 906698.95 10.00%
Over 6 months and within one year (One year
included)
8276911.56 1655382.31 20.00%
Over one year - within 2 years (2 years
included)
2595427.63 1297713.82 50.00%
Over 2 years - within 3 years (3 years
included)
3979773.65 3183818.92 80.00%
Over 3 years 550704.24 550704.24 100.00%
Total 232067230.27 9670292.48
(2) By account age
Item Ending balance
Within 3 months (3 months included) 1372341297.29
Over 3 months and within 6 months (6 months included) 144086705.46
Over 6 months and within one year (One year included) 120338041.49
Over one year - within 2 years (2 years included) 51754344.55
Over 2 years - within 3 years (3 years included) 17808451.40
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Ending balance
Over 3 years 1715975.91
Total 1708044816.10
(3) Account receivable bad debt reserves
Bad debt provision has 5935724.65 Yuan accrual in Current period; bad debt provision of 206314.14 Yuan
is switch-back; no trade receivables written-off in previous year was recovered this period.
(4) Account receivable actually written-off in Current period: Nil
(5) In Current period top five receivables collected by arrears party amounting to 1322689386.40 yuan in
total accounted for 77.44% of the receivables at balance of Current period-end the bad debt provision
accrual correspondingly amounting to 0.00 yuan at period-end balance.
(6) Account receivable terminated recognition due to the transfer of financial assets: nil
(7) No assets and liability transfer Account receivable and continues to involve at period-end.
2. Other account receivable
Item Ending balance Opening Balance
Interest receivable 20170010.71 7880186.85
Dividend receivable 661434.48
Other account receivable 24602991.53 33423018.09
Total 44773002.24 41964639.42
2.1 Interest receivable
(1) Category of interest receivable
Item Ending balance Opening Balance
Interest receivable from time deposit 17773205.15 7880186.85
Income receivable from financial products 2396805.56
Total 20170010.71 7880186.85
(2) Major overdue interest: nil
2.2 Dividend receivable
(1) Category of dividend receivable
Item Ending balance Opening Balance
Huishang Bank Corporation Limited 661434.48
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
(2) Major dividends receivable with account age over 1 year: Nil
2.3 Other account receivable
(1) Category of other account receivable
Nature Ending book balance Opening book Balance
Related party in consolidation statement 2252798.84 4126498.15
Related party not in consolidation statement 500000.00 500000.00
Loans of employee’s pretty cash 9638796.77 6014409.39
Cash deposit 1705375.14 1010000.00
Export rebate 10556031.93 21650454.61
Other 133182.08
Total 24653002.68 33434544.23
(2) Other account receivable bad debt reserves
Bad debt reserves
First stage Second stage Third stage
Total Expected credit loss
in next 12 months
Expected credit loss
for the whole
duration (no credit
impairment)
Expected credit loss
for the whole
duration (credit
impairment has
occurred)
Balance as at 1 Jan. 2020 11526.14 11526.14
Book balance of Other
account receivable in Current
Period as at 1 Jan. 2020
— — —
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second
stage
-- Reversal to the first stage
Provision in Current Period -11514.99 50000.00 38485.01
Reversal in Current Period
Conversion in Current Period
Write off in Current Period
Other change
Balance as at 30 Jun. 2020 11.15 50000.00 50011.15
(3) By account age
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Ending balance
Within 3 months (3 months included) 14251567.39
Over 3 months and within 6 months (6 months included) 1057392.58
Over 6 months and within one year (One year included) 2080878.95
over one year-within two years (2 years included) 3755544.21
Over 2 years - within 3 years (3 years included) 676260.00
Over 3 years 2831359.55
Total 24653002.68
(4) No actual verification of other receivables in Current period
(5) The top five in the ending amount of other receivables totaled RMB 14177277.18 accounting for
57.51% of the total amount of other receivables and the aggregate amount of the ending balance of the
corresponding provision for bad debts was RMB 0.00.
(6) No other account receivable involved government subsidies at period-end.
(7) No other receivables terminated recognization due to the transfer of financial assets at period-end.
(8) No assets and liability transfer other receivables and continues to involve at period-end.长虹美菱股份有限公司财务报表附注
2020 年 1 月 1 日至 2020 年 6 月 30 日（本财务报表附注除特别注明外，均以人民币元列示）
3. Long-term equity investments
(1) Classification of long-term equity investments
Item
Ending balance Opening balance
Book balance Impairment Book value Book balance Impairment Book value
Investment in subsidiaries:
Zhongke Meiling Cryogenic Technology Co. Ltd. 42652000.00 - 42652000.00 42652000.00 42652000.00
Mianyang Meiling Refrigeration Co. Ltd. 95000000.00 - 95000000.00 95000000.00 95000000.00
Hefei Meiling Electric Marketing Co.Ltd.
54900000.00 - 54900000.00 54900000.00 54900000.00
Zhongshan Changhong Electric Co. Ltd. 304856419.37 - 304856419.37 169856419.37 169856419.37
Sichuan Changhong Air-conditioner Co.Ltd.
955600437.79 - 955600437.79 955600437.79 955600437.79
Hefei Meiling Group Holdings Limited 113630000.00 - 113630000.00 113630000.00 113630000.00
Jiangxi Meiling Electric Appliance Co.Ltd.
79000000.00 - 79000000.00 79000000.00 79000000.00
Changhong Meiling Ridian Technology
Co. Ltd.
91082111.12 - 91082111.12 90802061.95 90802061.95
Changmei Technology Co. Ltd. 48128000.00 48128000.00 - 48128000.00 48128000.00
Meiling CANDY Washing Machine Co.Ltd.
60000000.00 27675208.01 32324791.99 60000000.00 25082892.26 34917107.74
Hefei Meiling Wulian Technology Co.Ltd.
6000000.00 - 6000000.00 6000000.00 6000000.00
Investment in associates:
Hefei Xingmei Assets Management Co.Ltd.
8245676.45 - 8245676.45 8554613.73 8554613.73
Sichuan Zhiyijia Network Technology 44228924.16 - 44228924.16 47831474.41 47831474.41长虹美菱股份有限公司财务报表附注
2020 年 1 月 1 日至 2020 年 6 月 30 日（本财务报表附注除特别注明外，均以人民币元列示）Item
Ending balance Opening balance
Book balance Impairment Book value Book balance Impairment Book value
Co. Ltd.
Total 1903323568.89 75803208.01 1827520360.88 1771955007.25 73210892.26 1698744114.99
(2) Investment in subsidiaries
Invested enterprise Opening balance Current increased Current decreased Ending balance
Provision for impairment
loss in the period
Ending balance of
impairment
Zhongke Meiling Cryogenic Technology
Co. Ltd.
42652000.00 42652000.00
Mianyang Meiling Refrigeration Co. Ltd. 95000000.00 95000000.00
Hefei Meiling Electric Marketing Co.Ltd.
54900000.00 54900000.00
Zhongshan Changhong Electric Co. Ltd. 169856419.37 135000000.00 304856419.37
Sichuan Changhong Air-conditioner Co.Ltd.
955600437.79 955600437.79
Hefei Meiling Group Holdings Limited 113630000.00 113630000.00
Jiangxi Meiling Electric Appliance Co.Ltd.
79000000.00 79000000.00
Changhong Meiling Ridian Technology
Co. Ltd.
90802061.95 280049.17 91082111.12
Changmei Technology Co. Ltd. 48128000.00 48128000.00 48128000.00
Meiling CANDY Washing Machine Co.Ltd.
60000000.00 60000000.00 27675208.01
Hefei Meiling Wulian Technology Co.Ltd.
6000000.00 6000000.00
Total 1715568919.11 135280049.17 1850848968.28 75803208.01长虹美菱股份有限公司财务报表附注
2020 年 1 月 1 日至 2020 年 6 月 30 日（本财务报表附注除特别注明外，均以人民币元列示）
(3) Investment in associates
Invested enterprise
Opening
balance
Changes in the period
Ending balance
Ending
balance of
impairment
Additional
Investment
Investment
reduction
Investment income
recognized under
equity
Adjustment
for other
comprehensive
income
Other
equity
change
Cash dividend or
profit announced
to issued
Provision for
impairment loss
Other
Hefei Xingmei Assets Management Co.Ltd.
8554613.73 -308937.28 8245676.45
Sichuan Zhiyijia Network Technology Co.Ltd.
47831474.41 3047237.72 6649787.97 44228924.16
Total 56386088.14 2738300.44 6649787.97 52474600.61
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
4. Operation income and operation cost
Item
Current period Last period
Income Cost Income Cost
Main business 2453463713.88 2260946436.99 3595970830.12 3108565034.11
Other business 760500119.30 761172953.16 938785397.22 923829071.09
Total 3213963833.18 3022119390.15 4534756227.34 4032394105.20
(1) Main business -Classified according to product
Product
Current period Last period
Operation income Operation cost Operation income Operation cost
Refrigerator
freezer
2201687822.75 2028605037.68 3359059870.90 2898999289.84
Washing machine 102710982.12 103454823.52 60295707.79 54562704.69
Small household
appliances and
kitchen and
bathroom
146212337.07 126125131.02 175588336.18 154221270.69
Other 2852571.94 2761444.77 1026915.25 781768.89
Total 2453463713.88 2260946436.99 3595970830.12 3108565034.11
(2) ) Main business -Classified according to region
Regions
Current period Last period
Operation income Operation cost Operation income Operation cost
Domestic 1322226066.74 1332014226.07 2564886628.36 2199492611.91
Overseas 1131237647.14 928932210.92 1031084201.76 909072422.20
Total 2453463713.88 2260946436.99 3595970830.12 3108565034.11
Top five clients in sales income amounted as RMB 1158120716.61 a 36.03% in total operation income.
5. Investment income
Item Current period Last period
Long-term equity investment income by equity method 2738300.44 -2832319.70
Investment income arising from disposal of Tradable financial
assets
3755039.20 -9266363.88
Income from financial products 1432328.96 31627554.38
Long-term equity investment income by cost method 69912000.00 4590000.00
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Last period
Total 77837668.60 24118870.80
XVIII. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 14 August 2020.
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Supplementary information for financial statement
1. Non-recurring gains and losses for this year
(1) Non-recurring gains and losses regulated by Explanation Announcement of Information Disclosure on Stock
Issuance Enterprise No.1—Non-recurring gains/losses (2008) from CSRC:
Item Current period Note
Gains and losses from disposal of non-current assets -178704.98
Tax refund or mitigate due to examination-and-approval beyond power or without official
approval document or accident
Governmental subsidy reckoned into current gains/losses 52704872.66
Capital occupancy expense collected from non-financial enterprises and recorded in current gains
and losses
Income from the exceeding part between investment cost of the Company paid for obtaining
subsidiaries associates and joint-ventures and recognizable net assets fair value attributable to the
Company when acquiring the investment
Gains and losses from exchange of non-monetary assets
Gains and losses from assets under trusted investment or management
Various provision for impairment of assets withdrew due to act of God such as natural disaster
Gains and losses from debt restructuring
Enterprise reorganization expense
Gains and losses of the part arising from transaction in which price is not fair and exceeding fair
value
Current net gains and losses occurred from period-begin to combination day by subsidiaries
resulting from business combination under common control
Gains and losses arising from contingent proceedings irrelevant to normal operation of the
Company
Except for effective hedge business relevant to normal operation of the Company gains and losses
arising from fair value change of tradable financial assets and tradable financial liabilities and
investment income from disposal of tradable financial assets tradable financial liabilities and
financial assets available for sale
-2782746.40
Switch-back of provision of impairment of account receivable which are treated with separate
depreciation test
1809494.78
Gains and losses obtained from external trusted loans
Gains and losses arising from change of fair value of investment real estate whose follow-up
measurement are conducted according to fair value pattern
Affect on current gains and losses after an one-time adjustment according to requirements of laws
and regulations regarding to taxation and accounting
Annotations of Financial Statements of ChangHong Meiling Co. Ltd.
From 1 January 2020 to 30 June 2020
(Unless other wise specified RMB for record in the Statement)
Item Current period Note
Trust fee obtained from trust operation
Other non-operating income and expenditure except for the aforementioned ones 2486055.08
Other gains and losses items complying with definition for non-recurring gains and losses
Subtotal
Impact on income tax 6716413.17
Impact on minority equity(after taxation) 318475.54
Total 47004082.43
2. Return on equity and earnings per share
In accordance with requirement of the No. 9 Rule of Information Disclosure Compiling of Public Listed Companies: Calculation and
Disclosure of Return on Equity and Earnings per Share (revised in 2010) the weighted average return on equity basic earnings per
share and diluted earnings per share of the Company in the period are as follow:
Profit during the report period
Weighted average
return on equity
Earnings per share/EPS (RMB/Share)
Basic EPS Diluted EPS
Net profit attributable to shareholders of parent company -4.29% -0.2012 -0.2012
Net profit attributable to shareholders of parent company after
deduction of non-recurring gains and losses
-5.25% -0.2462 -0.2462
3. Accounting difference under the accounting rules in and out of China: Nil
4. Supplementary information for accounting policy changed: Nil
Changhong Meiling Co. Ltd.
15 August 2020
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