长虹美菱股份有限公司
CHANGHONG MEILING CO. LTD.二〇二一年年度报告
Annual Report 2021CHANGHONG MEILING CO.LTD. Annual Report 2021
Section I. Important Notice Contents and Interpretation
Board of Directors Supervisory Committee all directors supervisors and senior executives of Changhong
Meiling Co. Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious
statements misleading statements or important omissions carried in this report and shall take all responsibilities
individual and/or joint for the reality accuracy and completion of the whole contents.Mr. Wu Dinggang Chairman of the Company Mr. Pang Haitao person in charge of accounting work and Mr.Yang Jun person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of
2021 Annual Report is authentic accurate and complete.
The Company did not have directors supervisors and senior executives of the Company could not guarantee the
reality accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to deliberating the Report by a combination of on-site and
communication.Modified audit opinions notes
□ Applicable √ Not applicable
Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’s
Financial Report of 2021.Major defects in internal control
□ Applicable √Not applicable
The Company had no major defects in internal control in the reporting period.Risk warning of concerning the forward-looking statements with future planning involved in annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report they do not constitute a
substantial commitment for investors investors and the person concerned should maintain adequate risk
awareness furthermore differences between the plans forecast and commitments should be comprehended.Investors are advised to exercise caution of investment risks.Investors are advised to read the full text of annual report and pay particular attention to the following risk factors:
More details about the possible risks and countermeasures in the operation of the Company are described in the
report “XI. Prospects for the future development of the company” of “Section III. Management Analysis andDiscussion” investors are advised to read the relevant content.
1CHANGHONG MEILING CO.LTD. Annual Report 2021
Securities Times China Securities Journal Hong Kong Commercial Daily and Juchao Website (Juchao Website
(www.cninfo.com.cn)) are the media for information disclosure for year of 2022 that appointed by the Company.All public information under the name of the Company disclosed on the above said media and website shall
prevail and investors are advised to exercise caution.Does the Company need to comply with disclosure requirements of the special industry: no
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
√ Applicable □ Not applicable
Whether to increase the share capital with public reserve
□Yes √No
The profit distribution plan for year of 2021 that deliberated and approved by 16th session of the 10th BOD was:
take the total shares (on the registration date when implement the equity distribution plan for year of 2021) as the
base distributed 0.5 yuan (tax included) bonus in cash for every 10-share hold by all shareholders no share bonus
issued and no capitalizing of common reserves carried out.The implementation of repurchase of domestically listed foreign shares (B share) was completed on February 18
2022. And the cancellation of the repurchased shares are completed on March 2 2022. Total share capital of the
Company comes to 1029923715 shares after cancellation and reduction of registration capital and amendment
of Article of Association still needs to be submitted for deliberation on Shareholders’ General Meeting.Directors supervisors and senior executives of the Company respectively signed a Written Confirmation Opinions
for 2021 Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2021 Annual Report.
2CHANGHONG MEILING CO.LTD. Annual Report 2021
Documents Available for Reference
I.Financial statement carrying the signatures and seals of the Chairman principal of the accounting works and
person in charge of accounting organ;
II. Original audit report carrying the seal of the CPA and signature & seal of the accountants;
III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated
by CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company would provide them
timely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to the
regulations and Articles of Association.
3CHANGHONG MEILING CO.LTD. Annual Report 2021
Contents
Section I Important Notice Contents and Interpretation 1
Section II Company Profile and Main Financial Indexes 6
Section III Management Discussion and Analysis 13
Section IV Corporate Governance 58
Section V Enviornmental and Social Responsibility 93
Section VI Important Events 100
Section VII Changes in shares and particular about shareholders 155
Section VIII Preferred Stock 165
Section IX Bonds 166
Section X Financial Report 167
4CHANGHONG MEILING CO.LTD. Annual Report 2021
Interpretation
Items Refers to Contents
Company The Company Changhong
Refers to CHANGHONG MEILING CO.LTD.Meiling or Meiling Electric
Sichuan Changhong or controlling
Refers to
shareholder Sichuan Changhong Electric Co. Ltd.Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co. Ltd.Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co. Ltd.Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co. Ltd.Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co. Ltd.Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co. Ltd.Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co. Ltd.Ridian Technology Refers to Changhong Meiling Ridian Technology Co. Ltd.Wulian Technology Refers to Hefei Meiling Wulian Technology Co. Ltd
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co. Ltd.Meiling Life Appliances Refers to Hefei Changhong Meiling Life Appliances Co. Ltd.Changhong Huayi Refers to Changhong Huayi Compressor Co. Ltd.Zhiyijia Company Refers to Sichuan Zhiyijia Network Technology Co. Ltd.Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission Anhui Province Securities
Anhui Securities Bureau Refers to
Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
5CHANGHONG MEILING CO.LTD. Annual Report 2021
Section II Company Profile and Main Financial Indexes
I. Company information
Changhong Meiling
Short form of the stock Stock code 000521 200521
Hongmeiling B
Short form of the Stock after changed
N/A
(if applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in Chinese) 长虹美菱股份有限公司
Short form of the Company (in长虹美菱
Chinese)
Foreign name of the Company (if
CHANGHONG MEILING CO.LTD.applicable)
Abbr. of English name of the
CHML
Company (if applicable)
Legal representative Wu Dinggang
Registrations add. No. 2163 Lianhua Road Economic and Technology Development Zone Hefei
Code for registrations add 230601
The Company was registered in the Hefei Administration for Industry and Commerce on
November 25 1992 with the address registered as Linquan Road Hefei City (Meiling
Economic Development Zone); on March 13 1997 registered address changed to No.48
Historical changes on the registration
Wuhu Road Hefei instead of Linquan Road Hefei City (Meiling Economic Development
address
Zone); on May 19 2008 the address changed to No. 2163 Lianhua Road Economic and
Technology Development Zone Hefei from No.48 Wuhu Road Hefei. Registered address
of the Company has not changed during the reporting period.Offices add. No. 2163 Lianhua Road Economic and Technology Development Zone Hefei
Codes for office add. 230601
Website http://www.meiling.com
E-mail info@meiling.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Pan Haiyun
Contact add. No. 2163 Lianhua Road Economic and Technology No. 2163 Lianhua Road Economic and
6CHANGHONG MEILING CO.LTD. Annual Report 2021
Development Zone Hefei Technology Development Zone Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
e-mail lixia@meiling.com haiyun.pan@meiling.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual
Securities Times China Securities Journal Hong Kong Commercial Daily
report of the Company disclosed
Media and Website where the annual report of the
Juchao website: http://www.cninfo.com.cn
Company disclosed
Room of secretary of the Board 2/F administrative center Office building
Preparation place for annual report
of the Company
IV. Registration changes of the Company
Organization code Uniform social credit code: 9134000014918555XK
Changes of main business since listing (if applicable) No changes
1. In October 1993 after initial listing controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed
as Hefei Meiling Group Co. dated 23 May 1994) executing controlling rights of the Company and management right of
the state-owned assets on behalf of Hefei State-owned Assets Management Office named at that time;
2. From November 1997 to May 2003 controlling shareholder of the Company was Hefei Meiling Group Holding Co.
Ltd. (established base on former Meiling Group Co. “Meiling Group” for short) an enterprise solely owned by the State;
mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City
ensuring the maintenance and appreciation of state-owned assets;
3. On 29 May 2003 Meiling Group entered into “Equity Transfer Agreement” with Shunde GreenKel Enterprise
Development Co. ltd. (“GreenKel”) the 82852683 state-owned shares held by the Company was transfer to GreenKel.Previous After transferring GreenKel comes to the first largest shareholder of the Company.changes 4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assetsfor Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006
controlling Meiling Group took back the Meiling Electric 82852683 shares from GreenKel by procedures which has been
shareholde transferred. In September 2006 relevant equity transfer agreement signed between the Meiling Group and GreenKel is
rs (if invalid which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the
applicable) state-owned legal person’s 82852683 shares held by GreenKel should return to Meiling Electric and relevant equity
consideration will pay to GreenKel by Meiling Group . On 29 December 2006 the 82852683 shares of Meiling Electric
were transfer to Meiling Group by GreenKel and Meiling Group becomes the controlling shareholder of Meiling Electric
again.
5. On 18 May 2006 and 11 January 2007 Meiling Group entered into “Equity Transfer Agreement of Meiling Electric”
and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and
Changhong Group among the 123396375 shares held by Meiling Group 82852683 shares were transferred
respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this
transferring 45000000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong
the first largest shareholder of the Company while 37852683 shares (9.15% of total share capital of the Company) were
7CHANGHONG MEILING CO.LTD. Annual Report 2021
transferred to Changhong Group the third largest shareholder of the Company.
6. On 29 October 2008 Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of HefeiMeiling Co. Ltd.” the 32078846 restricted circulations A shares of Meiling Electric held by Changhong Group were
transferred by agreement to Sichuan Changhong. On 23 December 2008 the aforesaid equity transfer was approved by
“Reply on Matters of Equity held by State-owned Shareholders of Hefei Meiling Co. Ltd.” (GZCQ(2008) No.: 1413)
from SASAC; on 21 January 2009 the aforesaid transfer was registered for ownership transfer in Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited.The first majority shareholder of the Company comes to
Sichuan Changhong.
7. From 12 November 2018 to 25 February 2019 Sichuan Changhong and its concerted action Hong Kong Changhong
totally buys 16231024 shares of the Company through the secondary market by bidding (including A-stock of
13751756 shares and B-stock of 2479268 shares) a 1.55% in total share capital of the Company. After stake enlarge
Sichuan Changhong and its concerted action Hong Kong Changhong holds 281832434 shares of the Company in total a
26.98% of the total share capital of the Company; of which Sichuan Changhong directly holds 248457724 A-share of
the Company a 23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of
the Company amounting as 33374710 shares a 3.19% in total share capital of the Company.
8. Ended as 31 December 2021 Sichuan Changhong and its concerted action Hong Kong Changhong totally holds
281832434 shares of the Company a 26.98% in total share capital of the Company; Sichuan Changhong directly holds
248457724 A-share of the Company a 23.79% in total share capital of the Company while Hong Kong Changhong
holds circulation B-share of the Company amounting as 33374710 shares a 3.19% in total share capital of the Company.V. Other relevant information
(1) CPA engaged by the Company
Name of CPA Shine Wing Certified Public Accountants (LLP)
8/F Block A Fu Hua Mansion No.8 Chao Yang Men Bei da jie Dong Cheng District Beijing
Offices add. for CPA
P.R.C
Signing Accountants Li Xifu Wang Xiaodong
(2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
(3) Financial consultant engaged by the Company for performing continuous supervision duties in
reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Changes in the current
2021 2020 year over the previous 2019
year (+-)
8CHANGHONG MEILING CO.LTD. Annual Report 2021
Operating income (RMB) 18032957501.44 15388050229.67 17.19% 16553252894.93
Net profit attributable to
shareholders of the listed company 51898388.84 -85565716.91 160.65% 56441479.14
(RMB)
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains -140217633.26 -277816055.91 49.53% -50454661.39
and losses (RMB)
Net cash flow arising from
operating activities (RMB) 160923258.10 1403516222.46 -88.53% 1285003985.04
Basic earnings per share 0.0497 160.68%
(RMB/Share) -0.0819 0.0540
Diluted earnings per share 0.0497 160.68%
(RMB/Share) -0.0819 0.0540
Weighted average ROE 1.07% 2.80 percentage point-1.73% 1.13%
s up
Changes at end of the
current year compared
Year-end of 2021 Year-end of 2020 Year-end of 2019
with the end of
previous year (+-)
Total assets (RMB) 15190469756.33 16103355454.46 -5.67% 14202233615.47
Net assets attributable to
shareholder of listed company 4837334400.21 4854173682.43 -0.35% 5004947673.36
(RMB)
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years
is negative and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √ No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
√Yes □No
Item 2021 2020 Note
Operating income (RMB) 18032957501.44 15388050229.67
It mainly refers to the income
from house rental waste sales
Amount deducted from
144383101.14 135186516.29 labor services warehousing
operating income (RMB)
services and maintenance
services in the current period
9CHANGHONG MEILING CO.LTD. Annual Report 2021
Operating income after
17888574400.3015252863713.38
deduction (RMB)
VII. Accounting data difference under domestic and foreign accounting standards
(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting
period.
(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Current period Previous period Ending amount Opening amount
Chinese GAAP 51898388.84 -85565716.91 4837334400.21 4854173682.43
Items and amount adjusted by foreign accounting rules
Foreign accounting rules 51898388.84 -85565716.91 4837334400.21 4854173682.43
The Company had no difference of the net profit or net assets disclosed in financial report under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(3) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □ Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued
from CSRC dated 12 September 2007 since the day issuing cancel the previous “dual audit” requirement for
companies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practice
qualification CPA for auditing. The Company did not compile financial report under foreign accounting rulessince 2007 the financial report of the Company is complying on the “Accounting Standard for BusinessEnterprise” in China and therefore there are no differences of accounting data under accounting rules in and out
of China at period-end.VIII. Quarterly main financial index
In RMB
10CHANGHONG MEILING CO.LTD. Annual Report 2021
Q 1 Q 2 Q 3 Q 4
Operating income 4130121476.44 5472637868.85 4312251172.73 4117946983.42
Net profit attributable to shareholders
5297826.4231859685.1225102342.76-10361465.46
of the listed company
Net profit attributable to shareholders
of the listed company after deducting -26469858.74 -37082556.27 -1016633.94 -75648584.31
non-recurring gains and losses
Net cash flow arising from operating
-968522457.80380026340.98403766756.43345652618.49
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
Item 2021 2020 2019 Note
Found more in“Income from assetsGains/losses from the disposal ofdisposal”
non-current asset (including the write-off -133214.72 -2111295.55 -9537945.52“non-operationthat accrued for impairment of assets)
income &expenditure”
Governmental subsidy calculated into
current gains and losses(while closelyrelated with the normal business of the Found more in “OtherCompany the government subsidy that income”
103024250.7499043859.77103813820.02accord with the provision of national “Non-operationpolicies and are continuously enjoyed in line income”
with a certain standard quota or quantity are
excluded)
Gains/losses of fair value changes arising
from holding of the trading financial assettrading financial liability and investment ”Found more inearnings obtained from disposing the trading “Income of fair value
105811461.63123242542.4227685917.00financial asset trading financial liability changes” “Investmentand financial assets available for sale except income”
for the effective hedging business related to
normal operation of the Company
11CHANGHONG MEILING CO.LTD. Annual Report 2021
Found more in
Switch back of the impairment for“Accountreceivables that has impairment test 3245314.13 5061635.85 1936952.67
receivable/other
independentlyaccount receivable”
Found more inOther non-operating income and expenses “Non-operation
4867985.382434283.111070165.28
other than the above income &expenditure”
Less: impact on income tax 21813023.99 34083593.36 15170286.77
Impact on minority shareholders’
equity (post-tax) 2886751.07 1337093.24 2902482.15
Total 192116022.10 192250339.00 106896140.53
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
12CHANGHONG MEILING CO.LTD. Annual Report 2021
Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
1. Refrigerator industry
The refrigerator industry is one of the mature home appliance industries and the active brands in the market are
relatively stable. From the overall data 2021 was a satisfactory year for China's refrigerator market. In the face of
unfavorable factors such as repeated global pandemics and insufficient transportation capacity in 2021 China's
refrigerator manufacturing industry has overcome multiple difficulties such as sharp fluctuations in raw material
prices increased supply chain pressure weak domestic demand and declining product profit margins and
increased the added value of products by optimizing product structure and cost and deeply digging the market so
that the industry development had a steady rise. According to industry online data China's refrigerator production
in 2021 was 86.096 million units a year-on-year increase of 2.0%; total sales volume was 86.433 million units a
year-on-year increase of 2.3%. It is worth noting that export is still the main driving force for the growth of the
refrigerator industry. In 2021 the export volume of China's refrigerator industry was 43.786 million units a
year-on-year increase of 4.8% effectively driving the growth of the industry's overall sales.
2.Air-conditioning industry
Air-conditioning products are the household appliances that are the most affected by macro economy and weather
factors. In the past two years due to the continuous downturn in the real estate market and the impact of the
pandemic the scale of the air-conditioning industry has continued to decline. In 2021 affected by factors such as
the frequent outbreaks of pandemic at home rising raw material prices dual control of energy efficiency and too
much rainfall in the peak season of air-conditioning sales the air-conditioning industry experienced a
phenomenon of "low peak season" resulting in a "cold year" to the air-conditioning market in 2021. According to
industry online statistics in 2021 the total sales volume of China's household air conditioning industry was 150
million units a year-on-year increase of 7.9% and a year-on-year increase of 1.3% compared with 2019; of which
the domestic sales volume was 80 million units a year-on-year increase of 5.5% but a year-on-year decrease of
8.1% compared with 2019; exported 70 million units a year-on-year increase of 11.0% and a year-on-year
increase of 16.1% compared with 2019. After years of rapid growth in the air-conditioning industry the number of
household ownership was high and the industry demand has entered a new cycle of stock replacement. However
consumers' demand for replacement of air-conditioning products has been released slowly and the overall sales
volume will tend to be relatively stable in the next few years.
3.Washing machine industry
In 2021 the washing machine market has generally recovered to the level before the pandemic. According to the
13CHANGHONG MEILING CO.LTD. Annual Report 2021
omni-channel aggregate data of All View Cloud (AVC) in 2021 omni-channel retail sales was 76.6 billion yuan a
year-on-year increase of 7.3% and retail sales volume was 37.18 million units a year-on-year growth of 0.8%.However due to the pandemic changes in consumer demand and consumption patterns the major brands have
upgraded their products in terms of structure attributes form function price and demand. Integration of wash
and dry large capacity silent sterilizing wash and intelligent modules have become the main theme of upgrading
and innovation in subdivided tracks.II.Main businesses of the company engaged in during the Period
The Company is one of China's major electric appliance manufacturers possesses four major domestic
manufacturing bases in Hefei Mianyang Jingdezhen and Zhongshan and two overseas manufacturing bases in
Indonesia and Pakistan. Currently we have completed the industry layout of white electricity basically covering
the full product line including refrigerator washing machine air conditioner kitchen and bath small household
appliances and others at the same time the Company enters the new industrial fields as bio-medical and with
certain achievements made.Over the past 30 years the Company has always been adhering to the "independent innovation created in China"
and always focus on refrigeration industry without stop elaborately building the core competitiveness of
enterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team and
advanced technology Meiling continue to achieve breakthrough results in the variable frequency intelligence
refreshment thin-wall odourless energy-saving forced air cooling deep cooling and other fields. The company
has set up the first RoHS public testing center in Anhui Province the national enterprise technology center the
national industrial design center and the 5G industrial internet innovation application laboratory. The Companyhas successively awarded several national honorary titles as the “Smart Refrigerator Intelligent ManufacturingPilot Demonstration Project” the “National Green Factory” the “National Industrial Design Center” “2020 Top
10 Light Industry Technology Enterprises in China” and “National Leading Enterprises of Qualify in HomeAppliance Industry” etc. At the same time many products of Meiling have repeatedly won a number of domestic
and international innovation awards continuously demonstrating the capabilities and strength of Meiling's
intelligent manufacturing and Meiling brand intelligent innovation technology. At the 2021 AWE Award
Ceremony "Very Clean" BCD-503WUP9BQ the company's new high-end refrigerator won the AWE Excellent
Product Award for its excellent product design and innovative intelligent technology. In the China Refrigerator
Industry Symposium 2021 Meiling refrigerator stood out with its leading fresh-keeping technology and
excellent quality "Very clean" BCD-503WUP9BQ won the "Fresh Clean Star" and "Star" refrigerator
BCD-532WPUCY won the "Outstanding Channel Performance Product Award". Furthermore with its deep
cultivation and innovation in fresh-keeping technology the company won the only "Annual Pioneer
Freshness-Preservation Brand" award of China refrigerator industry.In recent years driven by the industry transformation and upgrades and consumption upgrades the Company
always adheres to the strategy of smart and variable frequency products promoted the Company’s products to
transform and upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness of
14CHANGHONG MEILING CO.LTD. Annual Report 2021
products in the industry by grasping the opportunities of refreshment thin-wall odourless air cooling and energy
efficiency upgrades and effectively resolving the pain points of customers. Under the guidance of the “intelligent”
strategy in recent year the Company has released and listed a number of CHiQ series of smart refrigerators and
air-conditioning products “M-Fresh” refrigerators “M-Fresh” comprehensive thin series products and “veryclean” series of refrigerators Meiling always leads the trend of the industry by solving the pain points of users
effectively. In April 2021 the company joined hands with Jingdong and launched the "Star" series of mother and
infant refrigerators equipped with LINF spectral plasma technology which meets the rigid needs of infants &
moms in different stages of getting ready for pregnancy pregnancy and parenting. In May 2021 the company
released a new generation of "very thin" direct-drive front-loading washing machines using innovative
technology i.e. magnetic levitation ultra-thin DD motor to realize the product concept of "direct drive is cleaner
and quieter" and the main performance indicators such as noise and energy efficiency have reached the advanced
level at home and abroad. In July 2021 the second-generation series of "M Fresh" products using "zero shock"
and "soft freeze" preservation technologies were launched globally breaking through the restricted area of
refrigeration and freezing technologies of traditional refrigerators and opening a brand new competition track to
soft freeze preservation technology in the refrigerator industry. In November 2021 the company released the latest
gas-heating water heater. By combining the invention patent technology of "a segmented burner and wall-hung
boiler" it has the function of "bathing scene customization" by person and scene which can provide different
bathing modes to meet the diverse hot water needs of users. In the same month the third-generation dual-engine
variable-frequency M-Twindrive series ultra-low temperature freezer with unique advantages such as "dual
independent systems extreme uniformity frequency conversion and energy saving" were released to the public
realizing the "intelligent storage" and "intelligent acquisition" of samples providing guarantee for the storage
security of samples again and providing users with new options. In January 2022 the shared air conditioner for
the living room and dining room using the far-to-near soft & comfortable wind technology was released for the
first time bringing users a comfortable home system that can be used for both living room and dining room.Facing the future the Company will implement the management policy of “one goal and three main lines” and
further improve the home internet layout accelerate the intelligentization of home appliances form a dual-growth
engine of “hardware + services” drive the transformation and upgrading of the Company’s profitability model
investigate the new value-added service models for home appliance enterprises meet new competition pattern in
the industry and achieve its own sustainable and stable development under the guidance of the core values of
“professionalism and shared development”. Meanwhile based on the “Smart Home Eco-system Project” and the
existing products the company will enhance the R&D manufacturing sales and cooperative capabilities of
integrated white goods so as to provide users with a complete set of smart white goods system solutions.During the reporting period main income of the Company coming from refrigerator (freezer) air conditioner
washing machine small home appliances kitchen & toilet products and biomedical etc. total amounting to
17.332 billion yuan a 96.11% of the operating income.
III. Core Competitiveness Analysis
(1) Brand capacity
15CHANGHONG MEILING CO.LTD. Annual Report 2021
The Company is one of the famous home appliances manufacturers in China owns several product lines such as
refrigerator freezing box air conditioner washing machine small household appliances and biomedical etc.“Meiling” brand is listed as one of the most valuable brands in China. In recent years the Company has create the
competitiveness of the brand by continuously reshaping its brand image innovating core technology and
developing high-end intelligent products. In terms of reshaping brand image in order to enhance the brand image
and further expand the market influence the Company repositioning the brand. In October 2015 the Company
completely update the LOGO and launching the new brand proposition of “Meiling let the good comes”. Along
with the release of new LOGO Meiling will also implement a brand strategy of "Good Trilogy" including the
direct sensory experience of “experience the good" the spirit soul enjoyment of “enjoy the good” and the lifestyle
faith of “believe in the good”.In terms of continuous innovation of core technologies on the one hand the company continuously promoted the
innovation of fresh-keeping intelligent and frequency conversion technologies to maintain the leading position
in the industry in order to meet the needs of industry and market development. On the other hand with the help of
consumption upgrades in order to meet the personalized differentiation and diversified needs of consumers.In
terms of refrigerator products the frozen preservation technology of “zero impact” and “micro-freezing” the
independent research and development of core technologies such as water molecule activation preservation
technology comprehensive thin GLS integration technology and MCN+ clean taste preservation technology have
led the refrigerator industry to return to the home field of preservation and fully enter the era of thin and
long-lasting clean taste. In terms of washing machine products through the development of the three black
technologies of the inner cylinder cone expansion technology the oblique angle stabilization technology and the
cloud disk condensation technology the "thin" "large" and "simple" industry business cards for washing
machines have been created and provide a new embedded experience solution for users. Regarding
air-conditioning products we have been adhering to the product concept of "good sleep + good air + good
comfort" focusing on quality experience and health for product upgrades. Strictly control quality in terms ofcomfort and reliability indicators create a brand experience of “extremely quiet extremely economical andextremely intelligent” for air conditioners and carry out layout around the three core functions of “fresh airself-cleaning and dust-free” product portfolio. In terms of kitchen & bathroom and small household appliances
the company focused on building an influential brand of water ecological appliances and operation services
intensified the drinking water products and researched and developed the integration of drinking water series
products with refrigeration and household fields to provide users with better products and services. In terms of
biomedical treatment adhered to the development strategy of "based on the relevant diversification in the
biomedical field" focused on the three major business strategic layouts of life science smart cold chain and
family health and continued to promote product innovation research and development and quality improvement.In terms of high-end intelligent product development the company promoted product innovation through
continuous technological innovation. In recent years the company has successively released CHiQ intelligent
series products “M-Fresh” refrigerators “M-Fresh” full-thin series products “M-Fresh” second generation series
refrigerators “very-clean” series of refrigerator products mother-infant refrigerator; “very-thin” series of washing
16CHANGHONG MEILING CO.LTD. Annual Report 2021
machine AC thermostatic fresh air cabinet unit fully dust-free hangers & sleep hangers shared AC in theguest-dining room“ intelligent voice tea-bar machine and intelligent electric water heater etc created three brandbusiness cards i.e. “Meiling Fresh” and “Meiling Thin” and “Meiling Clean” through the introduction of the
aforementioned high-end intelligent products which not only met market demand in a timely manner but also
enriched and enhanced the brand image.Promoting the remodeling of brand ability through the continuous upgrading of products Meiling will realize a
young international professional and intelligent brand image. Through gradual construction of the ideas of
Wonderful Start Point Wonderful Life Circle and Wonderful Ecology Circle Meiling has become a
people-oriented artist specializing in white appliances a smarter scientific expert and a more reliable house
keeper.
(2) Product capacity
For more than 30 years the company has been focusing on the refrigeration industry and has developed a number
of different models of refrigerators mainly including the "M fresh" first generation series of fresh-keeping
refrigerators carrying water molecule activation preservation technology the "M fresh"second generation series of
fresh-keeping refrigerators with "zero shock" and "slight freeze" fresh-keeping technology "Star" series mother
and infant refrigerators "Very Clean" series fresh-keeping and cleaning refrigerators comprehensive thin product
extension 503 series refrigerators CHiQ series high-end intelligent refrigerators and air conditioners 0.1℃
double precision refrigerator with inverter North American air cooling products Australian Frozen 4-Star
Products New European E-class Products vertical display cabinets DW-HL550 independent double temperature
zone double control ultra-low temperature low temperature freezer etc. In particular the "M Fresh" second
generation series of fresh-keeping refrigerators accurately realize preservation - 3.5℃ through zero shock and
slight freeze technologies bringing users three fresh-keeping experience i.e. fresh meat preservation for 33 days
zero loss of nutrition cutting meat without waiting. The "Very Thin" direct drive roller series washing machines
developed by the company adopt innovative technology magnetic suspension ultra-thin DD motor realizing the
product philosophy of "direct drive is cleaner" the main performance indicators such as noise and energy
efficiency have reached the advanced level at home and abroad. Deeply dug into the industry subdivision track
the shared air conditioner for the living room and dining room adopted the far-to-near soft and comfortable wind
technology of which the far wind is 20 meters away and the near wind is soft allowing the living room and
dining room to share a warm space. The company was committed to accelerating the integration of the Internet of
Things and other technologies with biomedical treatment created the industry's first dual-engine inverter
technology and successively released the third-generation dual-engine inverter M-Twindrive series ultra-low
temperature freezer strongly empowering storage safety. In addition DW-HL680 and DW-HL850 with its
unique advantages of "dual independent systems independent monitoring extreme uniformity frequency
conversion & energy saving rapid cooling 7 layers of protection three-dimensional heat preservation and
10-inch large screen" realized the "intelligent storage" and "intelligent acquisition" of samples and led a new era
of intelligent samples storage. In short the company was committed to creating a series of products with unique
value through continuous technological innovation and iteration and bringing new consumption experience to
17CHANGHONG MEILING CO.LTD. Annual Report 2021
consumers.The Company owned advanced development and quality assurance systems passed management system
certification of ISO9001 ISO14001 and ISO45001. Product quality has been quality assurance and productperformance is reliable. At the same time the company has authoritative certifications including “national-leveltechnology center” ”national-level industrial design center” “national-level intellectual property demonstrationenterprise” as strong guarantees. In terms of technical research it is committed to applying basic technologyresearch and industrialization transfer and has established a technical strategic plan with “intelligence frequencyconversion simulation fresh-keeping” as core technologies and “refrigeration new material and foam” as key
technologies. In terms of product development based on the technological research results and consumption
upgrade requirements updated the annual product planning and development outline increasingly upgraded the
product structure continued to increase the development of mid-to-high-end products with characteristic of
thin-wall air-cooling large-volume frequency conversion intelligence simulation smart cleaning odour clean
sterilization dust removal silent and developed competitive core products. At the strategic level of the company
continued to adhere to the core idea of “intelligent strategy productism” and promoted the company's product
transformation technological innovation and industry leadership by advancing the subsequent research and
development promotion and technical update of intelligent and frequency conversion products.
(3) Operation capacity
The Company continues to carrying out bench-marking activities to improve the operation and management
standards and competitiveness of the Company. At the same time the internal management capability has been
continuously improved by continuing to carry out the improvement work in "human efficiency money efficiency
and material efficiency". The company established a hierarchical sharing system with clear goals quantitative
indicators performance-oriented performance appraisal and incentives to activate internal productivity. Taking
value chain management as the main line continued to carry out value creation work and enhanced the
company's competitiveness. At the same time continuously improved the internal control system and improved
the ability to prevent risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system which can provide users
with high-quality services covering all categories of white goods. The domestic market is actively accelerated to
realize the marketing transformation from product line-oriented sales management to channel- and user-oriented
business services from single-category marketing to full-category marketing quickly building an operation
management system with reasonable commercial inventory management as the core and a value management
system core with terminal retail price; through determined bench marking match achieved products leading and
efficiency improvement and builds the capability for marketing system and development potential for long period
of time. In overseas markets the company increased the investments in overseas marketing agencies research and
development bases production bases etc. developed the market actively and cooperated with internationally
renowned household appliance brands and distributors continued to optimize the customer structure and enhance
the product structure accelerated the overseas branding improve overseas brand awareness in counter with the
18CHANGHONG MEILING CO.LTD. Annual Report 2021
overseas market segments tailored marketing strategy to promoting the expanding driven by marketing.IV. Main Business Analysis
(1) Refrigerator (cabinet) industry
In 2021，the company further strengthened the operation and management system centered on reasonable
commercial inventory. By driving the transformation of the marketing organization and improving the delivery
efficiency the turnover of commercial inventory was greatly improved and the number of days of commercial
inventory turnover decreased by 7 days on a year-on-year basis. By improving the flexible production capacity of
manufacturing the manufacturing efficiency of refrigerator and freezer was improved.Through the close combination of technology empowerment and product application the company promoted the
in-depth research and capability improvement of core technologies key technologies and hard-core technologies
and the competitiveness of refrigerator and freezer products has been continuously strengthened. Focusing on the
product strategy of "high-quality products + popular products" the company continued to promote the "thin fresh
beautiful and intelligent" product layout of refrigerators and further enhanced product competitiveness through
"precise positioning strengthening hierarchy revitalizing bases and channel customization" and promoted
benign operation of products; strengthened the research on core & key technologies the "zero shock" and "soft
freeze" technologies carried by "M Fresh Second Generation" new products once again lead the industry's
fresh-keeping technology brought greater value to consumers and achieved good market benefits .During the reporting period the company set up the refrigerator cabinet business headquarters focusing more on
core industries optimizing the platform and improving efficiency. To be a solid product management body let the
management body become the internal and external driving engine. Carried out the promotion of the whole value
chain benchmarking achieved initial effects and improved the profit. The implementation of quality
benchmarking has reduced the SCR and return and exchange rates; the implementation of R&D benchmarking has
shortened the development cycle and improved the success rate of new products. Refrigerator (cabinet) business
of the Company achieved revenue of approximately 7.725 billion yuan an increase of 5.46 % on a y-o-y basis
during the reporting period.
(2) Air-conditioning industry
In the domestic market focused on "regional focusing benign operation and model innovation" and adhered to
benchmarking; focused on standardized operation and management reduced fees and improved efficiency;
continued to promote the construction of key regions and partner innovation models. Under the premise of
controllable value chain carried out dislocated competition of online products to improved profit and loss
accelerated offline channel transformation focused on products with unique value and activated the team. In the
overseas markets upgraded sales channels and took efficiency as the starting point to reduce cost improved
manufacturing efficiency and enhanced logistics capacity building and continued to build its own R&D and
derivative capabilities. Air-conditioning business of the Company achieved revenue of approximately 6.867
billion yuan an increase of 48.67 % on a y-o-y basis during the reporting period.
19CHANGHONG MEILING CO.LTD. Annual Report 2021
(3) Washing machine industry
The company insisted on differentiated and dislocated competition in washing machine industry and optimized
and adjusted the product structure. In the domestic market grasped the market consumption trend adhered to the
product and market leading strategy the company launched the variable frequency direct drive drum with
"magnetic levitation" technology to further enhance product competitiveness. In the foreign markets carried out
product innovation and research and development according to the living habits and using habits of different
countries and strengthened the development of overseas markets. Washing machine business of the Company
achieved revenue of approximately 669 million yuan an increase of 43.31 % on a y-o-y basis during the reporting
period.
(4) Kitchen & bathroom small appliances
Focused on the core strategy of "water ecology" to refine the product layout and R&D and strengthened the
products of drinking water tea bar and gas hot water. According to the needs of users the company carefully
cultivated the industry field increased investment in R&D and maintained innovation vitality. At the same time it
strengthened the integration of product functions and launched the industry-leading intelligent voice tea bar
machine instant hot tea bar machine and gas heating water heater with different bath modes. Kitchen & bathroom
small appliances business of the Company achieved revenue of approximately 1.33 billion yuan an increase of
16.37 % on a y-o-y basis during the reporting period.
(5)Biomedical
Focused on the strategic layouts for three major businesses of life science smart cold chain and family health
strengthened the depth of research and development improved the research and development system optimized
the research and development process and formed sustainable technological innovation capabilities. Based on
market demand went deep into fine management promoted process standardization construction and optimized
planning and scheduling management to improve productivity efficiency and product quality; adhered to market
orientation improved system response capabilities attracted outstanding talents built talent training systems
optimized management system construction and improved operational efficiency. Biomedical business of the
Company achieved revenue of approximately 441 million yuan an increase of 25.15 % on a y-o-y basis during the
reporting period.(ii) Revenue and cost
1. Constitute of operation revenue
In RMB
2021 2020 Increase/de
Ratio in operation Ratio in operation crease y-o-y
Amount Amount
revenue revenue (+-)
Total operation
18032957501.44100%15388050229.67100%17.19%
revenue
20CHANGHONG MEILING CO.LTD. Annual Report 2021
Manufacture of
household 17331645754.46 96.11% 14154240737.32 91.98% 22.45%
appliances
Other business 701311746.98 3.89% 1233809492.35 8.02% -43.16%
Refrigerator freezer 8165836380.29 45.28% 7677640685.10 49.89% 6.36%
Air-conditioning
6867304359.2938.08%4619288893.4430.02%48.67%
(AC)
Washing machine 668996516.82 3.71% 466805675.50 3.03% 43.31%
Small appliance and 1330315557.62 7.38% 16.37%
1143165497.067.43%
kitchen & toilet
Other products 299192940.44 1.66% 247339986.22 1.61% 20.96%
Other business 701311746.98 3.89% 1233809492.35 8.02% -43.16%
Domestic 13212985690.01 73.27% 10398533564.21 67.58% 27.07%
Foreign 4819971811.43 26.73% 4989516665.46 32.42% -3.40%
Direct sales 701311746.98 3.89% 1233809492.35 8.02% -43.16%
Distribution 17331645754.46 96.11% 14154240737.32 91.98% 22.45%
2. The industries products regions or sales model accounting for over 10% of the Company’s operating
revenue or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrea
Increase/decrease Increase/decrease
Gross se of gross
Operating revenue Operating cost of operating of operating cost
profit ratio profit ratio
revenue y-o-y y-o-y
y-o-y
According to industries
Manufacture of
household 17331645754.46 15273131473.38 11.88% 22.45% 30.44% -5.39%
appliances
According to products
Refrigerator
8165836380.296945620033.2114.94%6.36%12.96%-4.98%
freezer
Air-conditioning 6867304359.29 6364053615.99 7.33% 48.67% 56.99% -4.91%
21CHANGHONG MEILING CO.LTD. Annual Report 2021
(AC)
Small appliance
and kitchen & 1330315557.62 1154251783.53 13.23% 16.37% 20.48% -2.96%
toilet
According to region
Domestic 12521627236.27 10779025843.09 13.92% 36.48% 45.41% -5.28%
Foreign 4810018518.19 4494105630.29 6.57% -3.41% 4.60% -7.15%
According to sales model
Distribution 17331645754.46 15273131473.38 11.88% 22.45% 30.44% -5.39%
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main
business based on latest one year’s scope of period-end
□ Applicable √ Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2021 2020
y-o-y (+-)
10 thousand 2291.75 9.84%
Sales volume 2086.39
pieces/set
Manufacture of
10 thousand 2255.60 7.23%
household Production 2103.47
pieces/set
appliances industry
10 thousand 95.14 -27.53%
Inventory 131.29
pieces/set
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
4. Performance of the material sales contract and major procurement contracts that signed by the
Company up to the reporting period
□ Applicable √Not applicable
5. Constitute of operation cost
Industry classification
In RMB
20212020
Increase/decrease
Industries Item Ratio in Ratio in
Amount Amount y-o-y (+-)
operation cost operation cost
22CHANGHONG MEILING CO.LTD. Annual Report 2021
Manufacture of
household Raw material 13942721443.16 91.29% 10753506155.27 91.84% -0.55%
appliances
Note: nil
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in otherentities” of “Section X Financial Report”
7. Major changes or adjustment in business product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales client and main suppliers
(1) Major sales client of the Company
Total top five clients in sales (RMB) 9460098700.85
Proportion in total annual sales volume for top five clients 52.46%
Proportion of the related parties’ sales in total annual sales volume for
37.71%
top five clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client I 6500770811.78 36.05%
2 Client II 2031064265.55 11.26%
3 Client III 382002588.01 2.12%
4 Client IV 298759989.33 1.66%
5 Client V 247501046.18 1.37%
Total -- 9460098700.85 52.46%
Other notes of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 3089801023.03
Proportion in total annual purchase amount for top five suppliers 21.99%
Proportion of related party’s purchase in total annual purchase amount for top
15.91%
five suppliers
23CHANGHONG MEILING CO.LTD. Annual Report 2021
Information of top five suppliers of the Company
Serial Name Sales (RMB) Proportion in total annual purchase
1 Supplier I 853794687.69 6.08%
2 Supplier II 722264897.13 5.14%
3 Supplier III 536878449.60 3.82%
4 Supplier IV 420239492.52 2.99%
5 Supplier V 556623496.09 3.96%
Total -- 3089801023.03 21.99%
Other notes of main suppliers
□ Applicable √Not applicable
(iii) Expenses
In RMB
Increase/dec
2021 2020 rease y-o-y Note of major changes
(+-)
According to the “Q&A of the Rules Implementation”
Sales expense 1364640404.75 1945803799.56 -29.87% relevant expenses as transportation costs are transferred
to “Operating costs”
Administrativ Due to the increase in salary and social security expenses
333588775.37280245684.5619.03%
e expense during the reporting period
Financial Due to the decrease in foreign exchange losses during the
-58402782.80-5529984.84-956.11%
expense reporting period
Due to the increase in R&D investment during the
R&D expense 465891096.09 380638922.91 22.40%
reporting period
(iv) Investment in R&D
√Applicable □Not applicable
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
Advanced the intelligence standards for
Updating the intelligent
Next-generation smart Improved the intelligence refrigerator products increasing the price
service for refrigerator
refrigerator platform Completed standards for refrigerator and and profit amid the medium and high-end
and solve the pain points
technology enhanced the user experience products enhanced the image of intelligent
for users
brand of the Company
Next-generation distribution Solve the problems on 50% reduction in time for Improving the distribution success for
Completed
technology for the smart wifi distribution in terms network distribution appliances such as intelligent refrigerator
24CHANGHONG MEILING CO.LTD. Annual Report 2021
terminal of multiple-steps complex and washing machine heighten products
interaction and time competitiveness and user satisfaction
duration
Optimized the dimensionality
Constructed the data
and reporting frequency of
collection and analysis Laying the groundwork for Big Data
Operational data collection the operation data for
platform with purpose of application which will play a practical
& analysis platform products completed the link
generating values for Completed value in user stickiness of the APP quality
construction for the smart verification of data
R&D after-sales R&D and planning and bring the
terminal collection storage analysis
planning and quality of improvement in product competitiveness
and application of the
the products
platform
R& D on the technology of Completed
Develop a refrigerator The fresh meet can be Better to meet the needs of users and
frost-free refrigerator with and the
with constant temperature preserve for 33 days without enhance the market competitiveness of
constant temperature product is
micro-freezing room thawing refrigerators
micro-freezing room available
Research on the Sterilization rate of 90% or
conditions of food storage Completed more antibacterial rate of
R&D of the mother-infant for mothers and babies and the over 90% freshness Enrich the function of Meiling products
refrigerator developed a special product is preservation effect vitamin C and meets the needs of users
refrigerator for mothers available retention rate ≥90% the
and babies chlorophyll retention rate
≥85%
Completed
the research
on technical
Generating the method for
Reducing noises in all plans and Improving overall noise level of the
R&D of the noise control noise reduction mutation
categories of the test frost-free refrigerators cutting the
technology for refrigerator reducing the noise for typical
refrigerators improving verification complaint on noises and enhance the
in whole cooling cycle products during the whole
the user experience and entered market competitiveness
cooling cycle
the stage of
market
promotion
Forwarding the excavation of user needs
Solving the users pain
Go to the and improving the R&D & innovation
points in guesting-dining
mass Completed the development c apability expanding product usage
AC realized the function
Develop new cabinet for production of a new cabinet platform for scenarios enhance the additional value of
of faring winds and soft
CHiQ serials at the end of guesting-dining AC products while achieve the appearance and
winds to enhance the user
2021 functional differentiation strength the
experience
sustainable competitiveness of the brand
Makes the smoke machine Research into a Completed Temperature sensing To achieved the selling points of
and stove react in chain technology that enables the technology allows the hood differentiated products and enhances the
25CHANGHONG MEILING CO.LTD. Annual Report 2021
through temperature sensing the smoke machine and development to adjust the gears price premium under the technology
technology stove react in chain on May 17 automatically and react in meanwhile it also meets the needs of
through temperature 2021 and chain with the stove and not smoking degreasing for users and won the
sensing technology. To conducted a limited to any brand of customer praise. And it serves as a good
adjust the air volume of product cookers. model for the Company to increase the
the hood by detecting the launch. R&D investment in the future.change pattern of
temperatures in the pot
Research into a gas
cooker with heavy fire
the core technology is a Completed
multi-burner system: the
high-efficiency air intake development
A kind of stove has 7 cavity Zero-second start Create a special product to improve the
and better premixing on May 27
and multi-stove with heavy instantaneous ignition and image of the Company’s products and
effect; 7 independent 2021 and
fire multi-burner 7 cavity burner upgrading the products
splitter on the hear makes conducted a
the flame contact area product
with bottom of the pot is launch.larger and the fire is more
powerful
With the arrival of the era
of internet of everything
on basic water heating
function adding WiFi
intelligent control to the
electric heater and by The project
Enable the users to better
using the closed loop of was
operate electric heater and Accumulate the living habits from users
human-cell phone-electric completed
improve the experience of improve brand’s reputation for smart home
Changhong intelligent cloud heater improving the on June 23
using the heater in process of appliances and provide reference for
electric heater user’s water experience 2021 and the
use shorten the heating time upgrading and optimizing the smart
and efficiency & quality product
and improve the efficiency of connection in whole house in the future
of life. Intelligence of the launch was
life
electric heater is conducted
integrated into the
intelligent cloud achieved
the interconnection in the
whole house through
intelligent cloud.Develop a water purifier Complete Flow rate of the pure water Performance of the product reaches the
to solve the current the approval reached 2.5L/min or more; forefront of the industry and enhancing the
High-flux intelligent water
common problems as low on July 15 water efficiency achieved the s tatus of the water purification products in
purifier with
flow and not knowing 2021 and on national first-class water the industry; notifying the consumers to
when to replace the November efficiency; analyzed the water replace the cartridge by core reminder
26CHANGHONG MEILING CO.LTD. Annual Report 2021
cartridge the 28 2021 the consumption intelligently and increase secondary service income from
high-performance water product reminder the core using the special cartridge of the Company
purifier is meets the needs launch was replacement.of high-flow during usage conducted
and reminder users to
change the core
intelligently according to
the condition of use
Realizing the heating Resonate with human body
Project
technology based on infrared temperature and enhance the
R&D the heating products completed in Increase the market share of electric
generation through polymer activity of water molecules in
for northeast market October heaters in northern
coating on micro-crystalline the body to better absorb heat
2021
glass substrates radiation energy
Develop a tea bar machine Completion
control by voice instead of the
R&D on voice-recognition controlling by users and development Voice recognition success Improving the product differentiation and
tea bar machine enhance the product and launch rate of over 95% profitability
differentiation and in March
competitiveness 2021
Technology development of
Market demand of
the ground source heat pump Completed Mass-production Growth in sales revenue and profits
coal-to-electricity
products
Technology development of Market demand of the
the water machine and water coal-to-electricity and Completed Mass-production Growth in sales revenue and profits
heater retailing
Technology development of Market demand of
Completed Mass-production Growth in sales revenue and profits
the heaters products coal-to-electricity
Technology development of Market order
Completed Mass-production Growth in sales revenue and profits
the home AC products requirements
Some
projects are
Technology development of Market order demand and completed Some products have been
Growth in sales revenue and profits
the special AC products future market expectations and other mass-produced
are under
development
Distribution technology Continuous optimization
Add the new BT distribution Ensuring the the Company remains at the
application of the Wi-Fi on on the second-generation
Completed and optimized single Wi-Fi leading edge of the industry in distribution
third-generation intelligent distribution network
distribution network technology
white goods technology
R&D personnel
2021 2020 Change proportion
27CHANGHONG MEILING CO.LTD. Annual Report 2021
Number of R&D personnel
13121431-8.32%
(person)
Proportion of R&D personnel 13.04% 19.62% 6.58 percentage points down
Educational background —— —— ——
Undergraduate 844 824 2.43%
Masters 99 101 -1.98%
Age composition —— —— ——
Under 30 337 313 7.67%
30~40473585-19.15%
Investment of R&D
2021 2020 Change proportion
Investment for R&D (RMB) 623553400.81 556253003.33 12.10%
R&D investment/Operating
3.46% 3.61% 0.15 percentage points down
revenue
Capitalization of R&D
185278347.99134284644.9037.97%
investment (RMB)
Capitalization of R&D
29.71% 24.14% 5.57 percentage points up
investment/R&D investment
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable √ Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□Applicable √ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
√Applicable □ Not applicable
The Company paid much attention to the technology development and increased the investment in R&D during the reporting period
(v) Cash flow
In RMB
Item 2021 2020 Increase/decrease y-o-y (+-)
Subtotal of cash in-flow from operation
activity 19122732939.87 16120150110.69 18.63%
Subtotal of cash out-flow from
operation activity 18961809681.77 14716633888.23 28.85%
Net cash flow from operation activity 160923258.10 1403516222.46 -88.53%
Subtotal of cash in-flow from
investment activity 2089320180.25 1171001295.31 78.42%
28CHANGHONG MEILING CO.LTD. Annual Report 2021
Subtotal of cash out-flow from
investment activity 2071396229.61 1801306139.22 14.99%
Net cash flow from investment activity 17923950.64 -630304843.91 102.84%
Subtotal of cash in-flow from financing
activity 1700242527.68 2049754910.57 -17.05%
Subtotal of cash out-flow from
financing activity 2450727546.66 1748483992.86 40.16%
Net cash flow from financing activity -750485018.98 301270917.71 -349.11%
Net increased amount of cash and cash
equivalent -585334883.53 1039722339.59 -156.30%
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Major changes in net cash flow from operation activity mainly because the cash paid for good procurement and received services
during the period increased from a year earlier.Major changes in net cash flow from investment activity mainly because the cash received from the recovery of investment increased
from a year earlier.Major changes in net cash flow from financing activity mainly because the cash paid for debt services increased from a year earlier.Explanation on reasons for the significant differences between the net cash flow arising from operation activities in the Period and
net profit of last year
√Applicable □ Not applicable
Mainly because at end of the period inventory and operating payable decreased from the beginning of the year.V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Whether be
Ratio in
Amount Note sustainable
total profit
(Y/N)
Investment income Gains on delivery of the forward foreign exchange contracts 128963968.59 144.07% N
in the period
Gains/losses from fair Losses on the forward foreign exchange contracts in the
value changes -3133939.42 -3.50% N period
Asset impairment Provision for decline in value of inventories and impairment -57484042.03 -64.22% N
of intangible assets in the period
Non-operation income 10022053.88 11.20% Income from fines received in the period N
Non-operation 5154068.50 5.76% Loss on retirement of the non-current assets in the period N
29CHANGHONG MEILING CO.LTD. Annual Report 2021
expenditure
Credit impairment Provision for impairment loss on account receivable in the
-20983896.93 -23.44% N
losses period
VII. Analysis of assets and liability
(i) Major changes of assets composition
In RMB
Year-end of 2021 Year-begin of 2021 Ratio
Ratio in Ratio in changes( Note of major changes
Amount Amount
total assets total assets +-)
Mainly due to the decrease in net cash flow
Monetary fund 5938823396.21 39.10% 6594786789.98 40.93% -1.83% arising from financing activities in the
period
Account receivable Mainly due to the increase in operation 1440874691.28 9.49% 1130275780.66 7.01% 2.48%
revenue in the period
Inventory Mainly due to the increase in sales in the 1356357419.80 8.93% 1715354951.43 10.65% -1.72%
period
Investment real
estate 53149934.45 0.35% 53888462.00 0.33% 0.02%
Long-term equity Mainly due to the increase in earnings from
investment 86631660.53 0.57% 76982822.38 0.48% 0.09% investment for joint venture in the period
Fix assets The increase in percentage due to the 2303122699.92 15.16% 2391859440.31 14.84% 0.32%
decline of total assets in the period
Construction in The construction in progress transferred to
progress 98469862.45 0.65% 60775088.96 0.38% 0.27% fixed assets declined in the period
Resulted by the implementation of new
Right-of-use assets 45367918.31 0.30% 9818834.44 0.06% 0.24%
leasing standards in the period
Due to the repayment of short-term
Short-term loans 622874652.77 4.10% 1336209050.55 8.29% -4.19%
borrowings in the period
Contract The increase in percentage due to the
515004115.233.39%522550891.283.24%0.15%
liability decline of total assets in the period
Due to the repayment of long-term
Long-term loans 168000000.00 1.11% 188231439.30 1.17% -0.06%
borrowings in the period
Resulted by the implementation of new
Lease liability 33225912.15 0.22% 4783483.43 0.03% 0.19%
leasing standards in the period
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
(ii) Assets and liability measured by fair value
30CHANGHONG MEILING CO.LTD. Annual Report 2021
√Applicable □ Not applicable
In RMB
Devaluat
Accumulativ
ion of Amount
Changes of fair e changes of
Amount at the withdra of Sales in Amount at end
Items value gains/losses fair value
beginning period wing in purchase the
Other changes
of the period
in this period reckoned
the in the period
into equity
period period
Financial assets
1.Trading financial assets
(derivative financial assets 47242339.07 -29245252.88 17997086.19
excluded)
2. Receivable financing 1632388702.83 175720598.73 1808109301.56
3. Other non-current
548148931.3433831509.36581980440.70
financial assets
Subtotal of financial assets 2227779973.24 4586256.48 175720598.73 2408086828.45
Above total 2227779973.24 4586256.48 175720598.73 2408086828.45
Financial liabilities 4584076.51 7720195.90 12304272.41
Other changes:
Other changes in the financing of accounts receivable were that the company reclassified the bills receivables that both aimed at
collecting contractual cash flow (collection) and selling (endorsed or discounted) into accounts receivable financing during the
current period.Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(iii) Assets right restricted ended as reporting period
Ended as the reporting period the Company has no major assets been closed down detain freeze or pledge andguarantee. As for other assets have restriction on rights found more in relevant content of “60. Assets withrestricted ownership or use rights” in “VI. Note of consolidate financial statement” carried under Section X.Financial Report
VII. Investment analysis
(i) Overall situation
√Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
31CHANGHONG MEILING CO.LTD. Annual Report 2021
50000000.00662169149.17-92.45%
(ii) The major equity investment obtained in the reporting period
√Applicable □ Not applicable
32CHANGHONG MEILING CO.LTD. Annual Report 2021
In RMB
Whe
ther
Ter
Nam Metho Capi invo Date of Index of
m of Status as of Expect Current
e of d of Amount of Shareholdi tal Type of lved disclosure disclosure
Principal business Partners inve the balance ed investment profit
inve invest investment ng ratio sour products in a (if (if
stme sheet date return and loss
sted ment ces laws applicable applicable
nt
uit( ) )
Y/N)
Research and sales of the household electric appliances
non-electric household appliances gas stove gas water heaters
Hefe Ningbo
gas boilers fast heating electric water heater (electric heating
i Honglin
wall-hung furnace) heat accumulating type series electric heaters Contributed
Cha g
direct heating series electric heater; kitchen and toilet furniture R&D and investment Juchao
ngho Enterpri
audio-visual equipment radio and television equipment sales of of 35 Website:htt
ng se
computers communications and other electronic equipment household million yuan p://Juchao
Meil Newly Manage Lon Not
interior decoration materials general equipment water Own appliances g-ter in the Website ing establi 35000000 70% ment applic 21255622.60 N 2020-12-12
purification equipment luggage personal care and personal fund kitchen period. All (www.cninf
Life shed Partners m able
hygiene items; health care products massage equipment and appliances and capital o.com.cn)(
Appl hip
hardware department; software and information technology small home contribution Notice No.:
ianc (Limited
services; business management consulting services; sales of appliances has been 2020-097)
es Partners
second and third types of medical equipment ; goods and completed
Co. hip)
technology import and export. (the import & export of goods and
Ltd.technologies prohibited by the state or involving administrative
examination and approval is excluded)
Anh Class II medical equipment production; Class III medical Lon R&D Remaining 5 Juchao Newly Not
ui equipment production; Class III medical equipment operation; Own production million yuan Website:htt
establi 10000000 63.2683% N/A g-ter applic -1299892.14 N 2019-04-20
Tuox Class III medical equipment leasing; Electrical installation fund m and sales of was p://Juchao shed able
ing services; Labor dispatch services (projects subject to approval the cryogenic contributed Website
33CHANGHONG MEILING CO.LTD. Annual Report 2021
Scie according to law business activities can only be carried out after refrigeration in the (www.cninf
nce approval by relevant departments); General items: Class I equipment period and o.com.cn)(
and medical equipment production; Class I medical equipment sales; all capital Notice No.:
Tech Class II medical equipment sales; Smart home consumer contribution 2019-025)
nolo equipment sales; Metal product research and development; Metal has been
gy product sales; Metal surface treatment and heat treatment completed
Co. processing; Non-ferrous metals rolling processing; Metal
Ltd. processing machinery manufacturing; Software development;
note Technology research and development of the Internet of Things;
1 Software sales; Technology services technology development
technology consultation technology exchange technology
transfer technology promotion; New car sales; Refrigeration and
air conditioning equipment sales; Refrigeration and air
conditioning equipment manufacturing; Information technology
consulting services; Information system operation and
maintenance services; Internet sales (except for the sale of
products that require licensing); Intellectual property services
(except patent agency services); General cargo warehousing
services (excluding hazardous chemicals and other items that
require approval); Low-temperature warehousing (excluding
hazardous chemicals and other items that require approval);
Repair of special equipment; Import and export of goods; Leasing
of Class II medical equipment; Leasing management services of
small and micro passenger car; Machinery and equipment
leasing; Non-residential real estate leasing; Leasing of land use
right (except for licensing business can independently operate
projects that are not prohibited or restricted by laws and
regulations).Anh Class I medical equipment production; Class I medical equipment Newly Own Lon R&D Contributed Not Juchao
10000000 63.2683% N/A -791720.20 N 2021-3-03
ui sales; Class II medical equipment sales; Smart home consumer establi fund g-ter manufacturing investment applic Website:htt
34CHANGHONG MEILING CO.LTD. Annual Report 2021
Ling' equipment sales; Software development; Metal product research shed m and sales of of 10 able p://Juchao
an and development; Metal product sales; Metal surface treatment the medical million yuan Website
Med and heat treatment processing; Non-ferrous metals rolling equipment in the (www.cninf
ical processing; Metal processing machinery manufacturing; period. o.com.cn)(
Equi Technology research and development of the Internet of Things; Notice No.:
pme Software sales; Technology services technology development 2021-008)
nt technology consultation technology exchange technology
Co. transfer technology promotion; New car sales; Refrigeration and
Ltd. air conditioning equipment sales; Refrigeration and air
note2 conditioning equipment manufacturing; Information technology
consulting services; Information system operation and
maintenance services; Internet sales (except for the sale of
products that require licensing); Intellectual property services
(except patent agency services); General cargo warehousing
services (excluding hazardous chemicals and other items that
require approval); Low-temperature warehousing (excluding
hazardous chemicals and other items that require approval);
Repair of special equipment; Import and export of goods; Leasing
of Class II medical equipment; Leasing management services of
small and micro passenger car; Machinery and equipment
leasing; Non-residential real estate leasing; Leasing of land use
right (except for licensing business can independently operate
projects that are not prohibited or restricted by laws and
regulations) Licensed items: Class II medical equipment
production; Class III medical equipment production; Class III
medical equipment operation; Electrical installation services;
Class III medical equipment leasing (Business activities of
projects subject to approval according to law can only be carried
out after approval by relevant departments)
Total -- -- -- -- -- -- -- -- -- -- 19164010.26 -- -- --
35CHANGHONG MEILING CO.LTD. Annual Report 2021
Note 1: After the deliberation and approval of the 21st session of the 9th BOD of the company it was agreed that the company's subsidiary company Zhongke Meiling invested 10 million yuan to
invest in the establishment of a wholly-owned subsidiary Anhui Tuoxing Science and Technology Co. Ltd
Note 2: After the deliberation and approval of the 5th session of 10th BOD of the company it was agreed that the company's subsidiary company Zhongke Meiling invested 10 million yuan to
invest in the establishment of a wholly-owned subsidiary Anhui Ling'an Medical Equipment Co. Ltd.(iii)The material non-equity investment in the reporting period
√Applicable □ Not applicable
In RMB
Invested Industry
Invest Accrued Actual Accrued Realized
with involved Investment Capita
ment Investment Amount Anticipated Income up to the Reasons for not Reaching the Planned Disclosed Disclosed Index
Project Name fixed in Amount in this l Project Schedule
Meth up to the End of Income End of Reporting Schedule and Anticipated Income Date (if any) (if any)
assets Investmen Reporting Period Source
od Reporting Period Period
(Y/N) t Projects
The
production
The project of capacity of Juchao Production“Production base During the reporting period suffer by Website:Juchaobase project one million
project of annual
of annual Manufactu automatic
the capacity climbing and COVID-19 Website
output of 2 million and comprehensive factors as soaring (www.cninfo.com
output of 2 re of roller washing Approximately
Self-b Fund-r washing prices of bulk materials and 2019-7-9 .cn)(Notice
million Y household 39282138.53 114768032.63 machine shall -62170000
uilt aising machines(Phase be formed amortization of depreciation sales of 2019-7-26 No.:2019-040 automatic appliances yuanII) ” has been after this the Company was less than 2019-041 washing industry
completed during project being expectation resulting in a loss of the 2019-042 machines(Pha
the reporting put into project in the period. 2019-043 and se II) note
period operation 2019-047)
Total -- -- -- 39282138.53 114768032.63 -- -- -- -- -- -- --
36CHANGHONG MEILING CO.LTD. Annual Report 2021
Note : In order to further improve the efficiency of the company’s use of raised funds after careful study and demonstration the 24th session of the 9th BOD the 13th session of the 9th BOS and
the resolution of the second extraordinary general meeting of shareholders in 2019 approved and agreed that the company shall change the unused raised funds of 120 million yuan from the
sub-project Freezer Intelligent Construction Project of the "Intelligent Manufacturing Construction Project" and put into the "Production base project of annual output of 2 million washing
machines(Phase II) ". Currently the project was completed in construction.(iv)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2.Derivative investment
√ Applicable □ Not applicable
In 10 thousand yuan
Ratio of investment
Relate Whether Amount Amount Amount of reserve amount at Actual
Investment Investment
d related Initial purchased in sales in the for devaluation of period-end in net gains/loss
Operator Type Start date End date amount at amount at
relatio trade or investment the reporting reporting withdrawing (if assets of the es in
period-begin period-end
nship not(Y/N) period period applicable) Company at period
period-end
Financial Forward foreign
N/A N
institution exchange contract 334471.07 2020-4-22 2022-12-28 184610.32 457956.60 474558.31 - 156034.41 32.26% 11974.21
Total 334471.07 -- -- 184610.32 457956.60 474558.31 - 156034.41 32.26% 11974.21
Capital resource Own fund
Lawsuit involved (if applicable) Not applicable
37CHANGHONG MEILING CO.LTD. Annual Report 2021
Disclosure date for approval from the Board
for investment of derivatives (if applicable) 2021-3-31
Disclosure date for approval from board of
shareholders for investment of derivatives (if 2021-4-29
applicable)
Risk analysis:
1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations forward foreign exchange transactions are under certain
market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices exchange rate
fluctuations. The Company will follow up the exchange fluctuation on the basis of target rate determined from the business relying on the research of the foreign currency
exchange rates combined with prediction of consignments and burdening ability to price variations due to exchange rate fluctuations then determine the plan of forward
foreign exchange contracts and make dynamic management to the business to ensure reasonable profit level.Risk analysis and controlling measures for 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business to meet the requirements of the trade
derivatives holdings in the Period (including authenticity. In addition forward foreign exchange transactions are processed with bank credit will not affect liquidity of company funds.but not limited to market risk liquidity risk 3. Bank default risk: if cooperative banks collapse within the contract time the Company will not be able to transact the original foreign exchange contracts with contract
credit risks operation risk and law risks etc.) price which leads the risk of income uncertainty. So the Company chose five state-owned banks the Chinese-funded banks in shareholding enterprise as Everbright Bank
Industrial Bank and the foreign-funded banks as UOB OCBC BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and
management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related
management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are
processing. The Company will strengthen legal review and choose good bank to carry out this kind of business as to risk control.Invested derivative products have changes in The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22
market price or fair value in the Period as - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value
for analysis of the fair value of derivatives of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting
disclosed specific applied methods and period with bank. The differences are identified as trading financial assets and liabilities. During the reporting period forward foreign exchange contracts and losses of the
correlation assumption and parameter setting Company is 119.7421 million yuan.Specific principle of the accounting policy
and calculation for derivatives in the Period Not applicable
compared with last period in aspect of major
38CHANGHONG MEILING CO.LTD. Annual Report 2021
changes
Upon inspection the Company believes that: during the reporting period the Company carried out its foreign exchange forward deals in strict compliance with the
Shenzhen Stock Exchange Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board the Articles of Association Management
Measures on Company Authorization Management System in relating to Foreign Exchange Forward Deals and these deals were conducted within the authorization scope
Special opinion on derivative investment under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only all of the forward foreign
and risk control by independent directors exchange transactions are operates closely related to the routine operation requirement of the Company and based on normal operating and production which is relying on
specific business operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial
to prevent the exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation no break
of relevant rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders
especially minority shareholders were not prejudiced.
39CHANGHONG MEILING CO.LTD. Annual Report 2021
(v) Application of raised proceeds
√ Applicable □ Not applicable
1. Overall application of raised proceeds
√ Applicable □ Not applicable
In 10 thousand yuan
Total raised Ratio of Raised
Cumulative raised Total
Total raised capital capital has cumulative Usage of the retained raised capitals capitals idle
Raising Total accumulative capitals has accumulative
Way Total raised capitals used purpose of uses raised capitals and what is expected to invested with for more
year raised capitals used purpose of uses raised capitals
in Period changed in has purpose of those capitals than two
changed in total unused
Period uses changed years
Construction of the fund-raising
projects have been completed
remaining fund-raising projects will be
closed subsequently the spare
fund-raising and balance resulted by
difference between interest income
Non-pub (generated before canceling the
lic specific account for fund-raising
2016 offering 154073.272276 9421.530637 116975.522643 0 42584.305127 27.64% 6467.864327 subsequently) and handling fee will be -
of supplemented with the working capital
A-share of the Company permanently for daily
operation and business development.Found more in the “Note 4. Usepurpose and destination of the raisedfunds un-used” under “2. Situation ofcommitted project of raised proceed inthis section”.
40CHANGHONG MEILING CO.LTD. Annual Report 2021
Total -- 154073.272276 9421.530637 116975.522643 0 42584.305127 27.64% 6467.864327 --
Explanation on General usage of raised capital
Being deliberated and approved by 1st extraordinary shareholders meeting of 2016 and 17th session of 8th BOD and verified by the Reply on Private Placement of Hefei Meiling Co. Ltd. (CSRC XK [2016] No.1396)
issued from CSRC the Company successfully offering 280858676 shares (A-stock) to 7 qualified investors including Sichuan Changhong Electric Co. Ltd. (hereinafter referred as to Sichuan Changhong) with
price of 5.59 yuan/Share and face value of 1.00 yuan. According to the Verification Report XYZH/2016CDA40272 issued by Shine Wing Certified Public Accountants (LLP) total raised fund amounting to
1569999998.84 yuan less vary issuance changes (tax included) 29267276.08 yuan raised fund amounts to 1540732722.76 yuan.
Ended as 31 December 2021 actually fund of raised used accumulative amounted as 1169755226.43 yuan in total balance of the account for fund raised counted as 64678643.27 yuan (including saving interest
income accumulative amounted as 4432960.36 yuan and income from financial product at expiration 41232660.81 yuan)
The Company accumulative used the fund raised amounted as 1169755226.43 yuan the use of purpose including: intelligent construction has 385768032.63 yuan in used; R&D ability for intelligence and new
products for intelligent household appliance has 468105530.03 yuan in used; smart life project totally used 45001600.000 yuan; used in current fund supplementary counted as 270880063.77 yuan (including
saving interest of 147341.01 yuan)
2. Situation of committed project of raised proceed
√ Applicable □ Not applicable
In 10 thousand yuan
Change the Investment Achieve
Major changes
Committed investment project (Y/N) Cumulative progress till Benefit d
Total raised-fund Investment after Date of reach a of project
projects and over-raised (including Invested in the period investment amount till end of achieved in expected
commitment adjustment (1) predetermined state of use feasibility
fund investment partially end of Period-end (2) period-end (3) the Period benefits
(Y/N)
changed) ＝(2)/(1) (Y/N)
Committed investment project
Intelligent manufacturing
(Hefei) project: end of 3681 N N
Construction of December 2020
intelligent Partial change 39100.00 39100.00 3928.341478 38576.803263 98.66% Production line for the
manufacturing project annual capacity of 2
-2547 N N
million washing
machines(Phase II): end
41CHANGHONG MEILING CO.LTD. Annual Report 2021
of December 2021
Construction of
intelligent R&D
Not
capability and new
No changes 55900.00 48188.658476 5493.189159 46810.553003 97.14% End of December 2021 -- applicab N
products development
le
of the intelligent
appliance technology
Change Not
Intelligent life project
completed 32000.00 4500.16 0 4500.160000 100.00% -- -- applicab Y
le
Supplementary the Not
No changes
floating capital 27073.272276 27073.272276 0 27088.006377 100.05% -- -- applicab N
le
Subtotal of committed
--154073.272276118862.0907529421.530637116975.5226-----
investment project
Investment of the over-raised fund
No over-raised fund in the Period
Payment of bank loans
(if applicable) -- -- -- -- -- -- -- -- -- --
Supplementary the
working capital (if -- -- -- -- -- -- -- -- -- --
applicable)
Subtotal of over-raised
fund investment -- -- -- -- -- -- -- -- -- --
Total -- 154073.272276 118862.090752 9421.530637 116975.522643 -- -- -- -- --
Conditions and reasons of failure to meet schedule or predicted income (by specific
projects) Found in Note 1Description of major changes in project feasibility ”Found more in the “3.Change of the raised funds ” in this section
42CHANGHONG MEILING CO.LTD. Annual Report 2021
Amount use of purpose and usage progress of the excessive raised fund Not applicable
Change of the implementation location of project with investment of raised fund Not applicable
Adjustment of the implementation ways of project with investment of raised fund Not applicable
Early investment and replacement with the raised fund Found in Note 2
Temporary replacement of the working capital with idle raised funds Not applicable
Amount and reasons of cash surplus in raised funds during implementing the project Found in Note 3
Use purpose and destination of the raised funds un-used Found in Note 4
Relevant information with raised funds concerned are disclosed in a timely true accurate and complete manner there is no violation
Problems or other circumstances in the use of raised funds and its disclosure
in the deposit use management and disclosure of the raised funds.
43CHANGHONG MEILING CO.LTD. Annual Report 2021
Note1: Implementation of fund-raising projects
1.“Construction of intelligent manufacturing project ”:
(1) the original planning construction period of “construction of intelligent manufacturing (Hefei) project” is 3-year and with
purpose of regulating the use of raised funds the resolution of the 20th session of the 9th BOD the 11th session of the 9th Supervisory
Committee of the Company and resolution of AGM of 2018 passed and agreed to postpone the date that the project achieves the
scheduled serviceable condition to the end of December 2021. Up to now the "construction of intelligent manufacturing (Hefei)
project" has reached its intended use status. During the reporting period due to the impact of the soaring price of bulk materials
revenue from the project did not reach the expectations during the reporting period.
(2) The "Production line for the annual capacity of 2 million washing machines(Phase II)" has completed at end of the 2021 with
normal production in process. As of today the project has reached the intended state of use. During the reporting period suffer by the
capacity climbing and COVID-19 and comprehensive factors as soaring prices of bulk materials and amortization of depreciation
sales of the Company was less than expectation resulting in a loss of the project in the period.
2.“Construction of intelligent R&D capability and new products development of the intelligent appliance technology ”
According to the “Non-public Offering of A-Share” in 2016 the Company plans to invested 559 million yuan on
the project and implementing the two major projects includes “intelligent R&D capacity building”(mainly include
intelligent R&D management platform construction experimental center construction and relocation theconstruction of H&R and cooperative R&D) and “intelligent home appliance technology and new productdevelopment”.In order to accelerate the implementation of the company’s “intelligent research and development projects” shorten the development
cycle of intelligent products improve the company's research and development capabilities and reduce the repeated investments in
resources the resolutions of the 31st meeting of the ninth BOD the 16th meeting of the 9th BOS and the 4th extraordinary
shareholders’ meeting in 2019 passed and agreed the company to change the use and investment of some of the funds raised in the
“intelligent research and development project” and use them to purchase intelligent infrastructure platform construction and software
R & D platforms and other R & D assets from Sichuan Changhong Electric Co. Ltd.(hereinafter referred to as Sichuan Changhong)
and its subsidiaries. The pricing of the related transactions was subject to the appraised value of the underlying asset as of September
30 2019 and the transaction price was determined to be 46617300 yuan.
Being approved by the 23rd session of 9th BOD 17th session of 9th BOS and First extraordinary shareholders
general meeting of 2020 agreed to close the project of “intelligent R&D” and the surplus proceeds of the project
as of November 30 2019 amounting to 125084220.44 yuan (including income of 47970805.20 yuan from
wealth management and deposits) and the interest to be settled thereafter to replenish the working capital of the
Company permanently. Meanwhile total amount of the final payment and warranty deposit that to be paid
114368326.60 yuan will continue to be retained in the fund raising account and paid as agreed in the contract.
As for the assets transaction with R&D purchased after singing the “Assets Transfer Agreement” between the Company and other
parties the Company actively implemented the implementation of the transaction. However substantial difficulties were encountered
in the specific promotion work in 2020 due to the changes in the internal and external environment. Affected by the epidemic assets
handover has a slow progress in transaction and the immature delivery conditions for some assets due to technology iteration and
upgrade material uncertainty has arisen as to the timing and results of the delivery completion of the subject assets. Taking into
account the actual situation of the company and the future development needs after deliberation and approval at the seventh session
of the tenth BOD of the company and the 6th session of the 10th BOS of 2021 and the first extraordinary shareholders’ general
44CHANGHONG MEILING CO.LTD. Annual Report 2021
meeting of 2021 it was agreed that the company would terminate the use of raised funds to purchase the R&D assets such as the
intelligent infrastructure platform construction and software R&D platform of Sichuan Changhong and its subsidiaries.Before the termination of the transaction the company had not yet paid the transaction funds and had not carried out the transfer
procedures for the underlying assets. In order not to affect the progress of the company's fundraising project "intelligent R&DProject" the company had used its own funds to promote the sub-project "intelligent R&D management platform construction” inadvance; after the termination of the transaction the company continued to promote the construction of “intelligent R&Dmanagement platform construction” a sub-project of the “intelligent R&D Project” (other sub-projects of the intelligent R&D Project
have been completed). Up to now the "intelligent R&D management platform construction" has been completed and is ready for use.In view of the project close and permanent replenishment of the working capital with surplus proceeds the R&D
assets as intelligent infrastructure platform and software R&D platform purchased from Sichuan Changhong andits subsidiaries with fund raising are terminated. Therefore the project of “intelligent R&D management platformconstruction” is still under implementation. During the reporting period the construction charge for intelligent R&D
management platform the contract final payment and warranty of 54931891.59 yuan in total are paid by the Company. Ended as 31
December 2021 remaining proceeds of “intelligent research and development projects” was 15812019.58 yuan (including wealth
management income of 1735039.45 yuan and deposit interest income of 295925.40 yuan )
3.“Intelligent life project”
The resolutions of the 24th session of the ninth BOD of the company the 13th session of the 9th BOS and the 2nd extraordinary
shareholders’ meeting in 2019 passed and approved the company to terminate the implementation of the “Intelligent life project” and
use the remaining raised funds financial management interest and deposit interest of the project to permanently supplement the
working capital. The company has withdrawn the remaining funds raised and interest income from this account a total of
305843051.27 yuan to permanently supplement the company’s working capital. After the withdrawal the remaining funds of the
special account for the raised funds were 0 yuan and the account was cancelled. Meanwhile the implement subject - Changmei
Technology Co. Ltd. (hereinafter referred to as the “Changmei Technology”) has been liquidated and cancelled.
4. “Supplementary the working capital ”
The investment progress exceeded 100% and mainly due to the use of raised funds containing the deposit interest of raised funds.Note 2: Early investment and replacement with the raised fund
Ended as 31 October 2016 the Company contributed self-raised fund 63984738.91 yuan for the raised-fund investment project the
money has replaced as 63984738.91 yuan. Shine Wing CPA (LLP) made a special audit for pre-investment and carried out an
Assurance Report on Invested Self-raised fund to the Raised-fund Investment Before Hand (XYZH/2016CD40285) (hereinafter
referred as to Assurance Report). Replacement are as:
In 10 thousand yuan
Commitment Investment of self-raised
Raised-fund investment project Total capital for fund invested till end of 31 Amount investment raised-fund
project October 2016
replaced
Construction of intelligent
manufacturing project 39870.65 39100.00 2545.41 2545.41
Construction of intelligent R&D
capability and new products 55900.00 55900.00 2053.06 2053.06
development of the intelligent
45CHANGHONG MEILING CO.LTD. Annual Report 2021
appliance technology
Intelligent life project 32076.00 32000.00 1800.00 1800.00
Total 127846.65 127000.00 6398.47 6398.47
The replacement has been deliberated and approved by the 27th session of 8th BOD and 14th session of 8th supervisory committee
independent directors are proposed an agreeable independent opinion and sponsor institution carried out a verification opinion
without objection.Note 3: Amount and reasons for the balance of proceeds from implementation
1. According to the resolutions passed at the thirty-third session of the ninth BOD the 17th session of the 9th BOS and the first
extraordinary shareholders’ general meeting of 2020 it was agreed that the company would partially complete the "intelligent R&Dability building and smart home appliance technology new products development project" (hereinafter referred to as “intelligentR&D project”). The amount of surplus funds raised in the completion part of the project was 126766362.64 yuan (including wealth
management income and deposit interest income). The main reasons for the above-mentioned surplus of raised funds are: firstly
during the implementation of the raised funds investment project the company complied with the relevant regulations on the use of
raised funds proceeded from the actual situation of the project on the premise of not affecting the smooth implementation and
completion of the fund-raising investment project and based on the principles of rationality economy and effectiveness the
company prudently used the raised funds and saved the project surplus raised funds of 77113415.23 yuan; secondly interest income
from wealth management and deposits generated during the deposit period of idle raised funds totaling 49652947.41 yuan.
2. According to the resolutions passed at the sixteenth session of the tenth BOD and the thirteenth session of the tenth BOS it was
agreed that the company would complete the "intelligent R&D management platform construction" a sub-project of the remaining
fundraising projects "intelligent manufacturing construction project" and "intelligent R&D project". The amount of the surplus raised
funds in the completion of the fundraising project was 45665621.17 yuan which was wealth management income and deposit
interest income. The above-mentioned surplus of raised funds is mainly due to the interest income generated from financial
management and deposits during the depositing period of idle raised funds. This matter still needs to be submitted to the company's
general meeting of shareholders for consideration and approval.Note 4: Use purpose and destination of the raised funds un-used
On March 29 2022 the sixteenth session of the tenth BOD and the thirteenth session of the tenth BOS reviewed and approved the
Proposal on Completing Investment Projects of Remaining Raised Funds and Permanently Supplementing the Working Capital with
Surplus Raised Funds the independent directors have issued agreed independent opinions and the sponsor institution has issued an
unobjectionable verification opinion agreeing that the company would complete the "intelligent R&D management platform
construction" a sub-project of the remaining fundraising projects "intelligent manufacturing construction project" and "intelligent
R&D project" and the surplus raised funds of the aforementioned projects as of December 31 2021 of 45665621.17 yuan (the final
amount should be subject to the bank interest balance on the day the funds are transferred out) as well as the balance formed by the
difference between interest income and service fee generated before the cancellation of the subsequent special account for the raised
funds shall permanently supplement the company's working capital and be used for the company's daily operations and business
development. This matter still needs to be submitted to the company's general meeting of shareholders for consideration and
approval.Up to now all the raised funds that have not been used by the company are deposited in the designated special account for raised
funds and will continue to pay the balance payment of the fundraising project contract and the quality assurance fund. The use of the
46CHANGHONG MEILING CO.LTD. Annual Report 2021
raised funds of the Company has not changed.
3.Change of the raised funds
√ Applicable □ Not applicable
In 10 thousand yuan
Investment Achieve Major changes
Correspond Cumulative Date of reach Benefit
Total raised funds Amount actually progress till d of project
Project after ing original investment amount a achieved
plans to invest after invested in the end of expected feasibility
changed commitmen actually till end of predetermined in the
change (1) period period-end benefits after changed
t item Period-end (2) state of use Period
(3)＝(2)/(1) (Y/N) (Y/N)
Production line
for the annual Freezer
capacity of 2 intelligent
million washing constructio 12000 3928.213853 11476.803263 95.64% 2021-12-31 -2547 N N
machines(Phase n project
II)
Supplementary
the floating Intelligent Not app
capital life project 30584.305127 0 30584.305127 100% -- -- N licable
permanently
Total -- 42584.305127 3928.213853 42061.10839 -- -- -- -- --
1. The Company optimized the layout of the freezer’s production capacity through intelligent upgrading and rebuilding
improved the freezer’s production capacity and efficiency and the freezer’s production capacity has been able to meet the market
demand. The project had not been implemented and the feasibility of the project had undergone major changes if the Company
continued to implement the “freezer intelligent construction project” it would not be able to achieve the expected economic
benefits and would face market and investment risks. Approved by the resolutions of the 24th session of the ninth BOD the 13th
session of the 9th BOS and the 2nd extraordinary shareholders meeting in 2019 agreed the Company to change the unused raised
funds of 120 million yuan for the “intelligent construction of freezer” invest in the “production base project for annualproduction of 2 million washing machines (Phase II)”. Found more on relevant announcement (Notice No.: 2019-040 2019-041Reasons for changes 2019-042 and 2019-047) released on 9 July 2019 and on 26 July respectively. During the reporting period “production basedecision-making procedures project for annual production of 2 million washing machines (Phase II)” has completed at end of the 2021 with normal
and information disclosure production in process. The project reached the intended state of use as of today.(explain by specific project) 2. As the main body of the company’s “Intelligent life project” Changmei Technology used its own refrigeration equipment
manufacturing advantages to look for new paths for enterprise development. However due to the heavy asset burden low
turnover rate high operation and maintenance and property costs it sustained losses. After careful research the company
considered that the original business model of the smart life project was no longer competitive if the company continued to
implement the investment project with the raised funds it would be difficult to achieve the expected investment income and may
even generate greater losses. The resolutions of the 24th session of the ninth BOD of the company the 13th session of the 9th
BOS and the 2nd extraordinary shareholders’ meeting in 2019 passed and approved the company to terminate the
implementation of the “Intelligent life project” and use the remaining raised funds and financial management interest of the
project to permanently supplement the working capital. Found more on relevant announcement (Notice No.: 2019-040
47CHANGHONG MEILING CO.LTD. Annual Report 2021
2019-041 2019-043 and 2019-047) released on 9 July 2019 and on 26 July respectively. The company has withdrawn the
remaining funds raised and interest income from this account a total of 305843051.27 yuan to permanently supplement the
company’s working capital. After the withdrawal the remaining funds of the special account for the raised funds were 0 yuan
and the account was cancelled. Meanwhile the implement subject - Changmei Technology Co. Ltd. (hereinafter referred to as
the “Changmei Technology”) has been liquidated and cancelled.Conditions and reasons of The “production base project for annual production of 2 million washing machines (Phase II)” has completed at end of the 2021
failure to meet schedule or with normal production in process. The project reached the intended state of use as of today. During the reporting period suffer
predicted income (by by the capacity climbing and COVID-19 and comprehensive factors as soaring prices of bulk materials and amortization of
specific projects) depreciation sales of the Company was less than expectation resulting in a loss of the project in the period.Presentation on the major
changes in project feasibility N/A
after changed
VIII. Sales of major assets and equity
(i) Sales of major assets
□ Applicable √ Not applicable
No major assets are sold in the period
(ii) Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√ Applicable □ Not applicable
48CHANGHONG MEILING CO.LTD. Annual Report 2021
(i) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name Type Main business Register capital Total assets Net assets Operating revenue Operating profit Net profit
Zhongke Meiling Research and development
Cryogenic manufacturing and sales of
Subsidiary ultra-low temperature 72548200 525123425.58 248075236.72 464899620.09 77804211.51 65085510.92 Technology Co.Ltd. freezer
Jiangxi Meiling Manufacturing of
Electric Appliance Subsidiary refrigeration and freezer 50000000 269231691.58 132436721.37 834813600.80 13453619.64 13531378.62
Co. Ltd.Mianyang Meiling Manufacturing of
Refrigeration Co. Subsidiary refrigeration and freezer 100000000 146680170.59 120388578.98 384775062.33 -1433282.09 -1099588.10
Ltd.Sichuan Changhong R&D manufacturing and
Air-conditioner Co. Subsidiary domestic sales of 850000000 3290717406.66 1084703780.24 4916379335.27 -5884296.28 -4190915.53
Ltd. air-conditioning
Zhongshan R&D manufacturing and
Changhong Electric Subsidiary foreign sales of 334000000 1294481958.15 81279662.26 2384071471.29 -40772575.99 -40598387.35
Co. Ltd. air-conditioning
Hefei Meiling
Group Holdings Subsidiary Sales of white goods 80000000 1660769710.90 -228079317.35 5648841234.10 -47507646.68 -46955697.02
Limited
R&D manufacturing and
Changhong Meiling sales of kitchen and toilet
Ridian Technology Subsidiary products small home 83000000 303209569.07 136853874.26 309467627.62 3092866.04 2351153.78
Co. Ltd. appliances and water
purifier
Hefei Changhong R&D and sales of household
Subsidiary 50000000 421208513.56 80365175.14 1136846527.85 40139653.52 30365175.14
Meiling Life appliances kitchen
49CHANGHONG MEILING CO.LTD. Annual Report 2021
Appliances Co. appliances and small home
Ltd. appliances
Hefei Xingmei
Assets Management Associates Leasing agency 1000000 47138542.38 41084024.11 31871752.79 26945094.97
Co. Ltd.
50CHANGHONG MEILING CO.LTD. Annual Report 2021
(ii) Subsidiary obtained and disposed in the period
√ Applicable □ Not applicable
The method of
obtaining and
Company name disposing The influence to the whole production and performance
subsidiaries during
the report period
The wholly-owned subsidiary invested by the controlling subsidiary of the
Company - Zhongke Meiling registered capital amounted to 10 million yuan.Anhui Ling'an Medical Equipment Investment and
Establishment of the company further expands the business scope of Zhongke
Co. Ltd. Establishment
Meiling in field of biomedical further develops the business in life science
segment and enhance the core competitiveness of Zhongke Meiling.Tai yuan Meiling Electric Mergers & Minor effect on the overall production and operation and performance of the
Appliances Marketing Co. Ltd acquisition company
Tianjin Meiling Electric Appliances Mergers & Minor effect on the overall production and operation and performance of the
Marketing Co. Ltd acquisition company
Guangzhou Meiling Electric Mergers & Minor effect on the overall production and operation and performance of the
Appliances Marketing Co. Ltd acquisition company
(iii) Description of the holding company and stock-jointly companies
Subsidiary of the Company - Sichuan Changhong Air-conditioner Co. Ltd has major growth in net profit from a
year earlier mainly because the revenue from operation increased dramatically on a y-o-y basis.X. Structured entity controlled by the Company
□ Applicable √ Not applicable
XI. Prospects for the future development of the company
(1)Macro environment analysis
Looking forward to 2022 the impact of the pandemic on various industries affects residents' income to a certain
extent consumer demand shrinks and pressures from supply shocks and weakening economic expectations still
exist and the pandemic and the complex and volatile global political and trade environment bring lots of
uncertainties to economic development. But in the long run China's economy is resilient and the long-term
positive fundamentals will not change. With a new round of technological revolution and the in-depth
development of industrial transformation new technologies will promote profound changes in the traditional
manufacturing industry the pace of corporate innovation will be accelerated the consumer market will be
characterized by hierarchy and individualization and there will be new opportunities for the development of the
home appliance industry. Under the general trend of industry consumption upgrading the high-quality
personalized fashionable comfortable intelligent healthy and other emerging categories and scene solutions that
accurately match the needs of segmented groups through technological innovation and consumer research will
have a rapidly growth and become the main driving force for the consumer market. The household appliance
51CHANGHONG MEILING CO.LTD. Annual Report 2021
industry chain will comprehensively have a green low-carbon intelligent and digital transformation and
upgrading and continue to enhance the industry's global competitiveness and influence.
(2) Industry environment analysis
1.Refrigerator (freezer) industry
In the domestic market according to the data released by the National Bureau of Statistics the refrigerator and
freezer ownership per 100 households in China has exceeded 100 in 2020 which also means that the refrigerator
market has fully entered the stock market and the product structure upgrade and the price structure upgrade
brought about by the renewing process still exist and the scale still maintains a steady development trend. From
the perspective of the supply side although raw material prices of bulk commodity have fallen they are still
operating at a high level. The long-term existence of cost pressures will continue to form a negative feedback on
the scale and will also continue to drive industry prices higher. All View Cloud (AVC) predicts that the retail sales
volume of the refrigerator market will reach 31.51 million units in 2022 a year-on-year decrease of 1.2% while
the upstream cost continues to drive price growth. The retail sales are expected to be 98 billion yuan a
year-on-year increase of 0.9%.In terms of the export the demand for refrigerators in overseas markets especially in Europe and the United
States is likely to fall due to the weak demand brought about by overdraft in the early stage and the increase in
terminal prices as well as the multiple pressures brought about by the withdrawal of financial subsidies in many
regions. In addition the shipping price remains high in a short period of time and the repeated outbreaks of
pandemics overseas result in a sluggish international logistics supply chain and a low empty container turnover
rate the shipping capacity of major overseas ocean routes is still tight which also squeezes the export share and
profit to a certain extent. The industry online predicts that the export scale of refrigerators will decline to a certain
extent in 2022.
2. Air-conditioning industry
In 2021 the cost of the air-conditioning industry soared the industry demand was weak and enterprises faced
huge operating pressure. In the first half of 2022 the consumption drive of the domestic air-conditioning market is
still insufficient and there are still some uncertain factors but with the stimulus and guidance of a series of
national consumption policies the consumer market will gradually improve in the second half of the year. In
overseas markets because the slowdown in global economic recovery is hard to alter the behavior of issuing
consumer vouchers in developed countries is unsustainable high inflation and exchange rate fluctuations restrain
demand and shipping prices will remain high in the short term the prices of air-conditioning products are hard to
fall back and there is great uncertainty in the overseas market demand for air conditioners in 2022. In this context
the competition among enterprises is more rational and cautious.
3.Washing machine
In recent years the washing machine market has tended to a period of stock consolidation the market demand is
52CHANGHONG MEILING CO.LTD. Annual Report 2021
mainly for upgrading and insufficient demand has become the norm in the industry. Especially under the
influence of the COVID-19 epidemic the overall growth rate of the industry has declined. Affected by factors
such as rising raw materials prices increased cost and consumer’s mentality after the pandemic competition
among enterprises has shifted from price to value. In addition to basic functions such as washing products also
focus on high-quality and high additional functional requirements such as drying sterilization and intelligence
and continuously improve product quality. In view of the stable domestic pandemic situation the possibility of a
large-scale outbreak is minimal. At the same time the market demand for washing machine renew is stable and
the pace of product iteration is stable and powerful. Among household appliances washing machine shows a
positive trend of continuously stable market continuous transfer of channels and continuous upgrading of
structure.
4.Kitchen & bathroom small appliance
In the kitchen appliance industry the "stay at home economy" caused by the pandemic allows millions of families
to regain the time and space to cook and awakens people's love and enthusiasm for cooking. However with the
normalization of the pandemic consumers have gradually become more rational and less enthusiastic about
consumption. According to the national standard for the service life of kitchen and bathroom products kitchen and
bathroom products will gradually enter the renew cycle and along with the technical iteration of kitchen and
bathroom products the improvement of residents' consumption levels and the implementation of plans such as
old city renovation the upgrading of kitchen and bathroom products will be further accelerated.In terms of the small home appliance industry from the channel level the arrival of the epidemic has led to the
rapid development of online channels and the maturity of live streaming sales and online channels have become
the main sales channels for small home appliances. From the perspective of category consumption continues to
escalate and the population is continuously subdivided resulting in a diversified consumption demand. Many
emerging small home appliances categories emerge after the epidemic injecting new energy and opportunities
into the small home appliance market. But at the same time small home appliance is also facing the dilemma of
low entry threshold and uneven products resulting in the increasingly fierce competition among enterprises.
5.Bio-medical
The medical equipment industry has a huge market size and many subdivisions together with the equipment
upgrades of primary medical institutions during the post-pandemic period the market demand for various medical
equipment has been growing steadily. Under the background that the national policy focuses on encouraging the
localization and domestic substitution of medical equipment the state encourages the priority to purchase
domestic devices which has created the demand for localization and promoted the continuous improvement of the
domestic medical equipment industry chain. At the same time companies continue to increase investment in
research and development enhance independent innovation capabilities adjust business models and establish and
improve regulatory systems which have effectively promoted the process of localization of medical equipment.(iii) Development strategy
1. Vision
53CHANGHONG MEILING CO.LTD. Annual Report 2021
Be a leading brand in China World Class and respectable household appliance enterprise.
2. Strategic direction
Fully implement the guideline of "one goal three main lines" drive organizational transformation through
reasonable commercial inventory turnover and improve overall competitiveness with efficiency as the core so as
to achieve the steady development of the industry.(iv) Business plan for 2022
1. Management principle
The company's management principle in 2022 is "one goal three main lines". The company will firmly take the
road of efficiency as the king product leadership and benchmarking so that the capabilities of efficiency and
product can be transformed into economic benefits through benchmarking and then achieve one goal of achieving
share growth under the premise of profitability.
(1) One goal
"One goal" is to achieve share growth under the premise of profitability. Deepen the marketing transformation
further strengthen the operation management system centered on reasonable commercial inventory the value
management system centered on retail price the marketing management system centered on retail and the
expense control system centered on rigid budget and continue to increase revenue reduce costs and reduce fees
in the research and production end so as to achieve the goal of continuous improvement in operations.
(2) Three main lines
Efficiency is king: further strengthen the operation management system with reasonable commercial inventory as
the core and lead the efficient and coordinated operation of the whole link of retail-manufacturing-logistics.
1. Improve commercial inventory turnover. The retail end strengthens the inventory management of commercial
units accelerates the marketing transformation and business model optimization and continues to shorten the
commercial inventory turnover days; the manufacturing end shortens the order cycle through the futures model
and the order model; improves the supply capacity and shortens the procurement cycle; improves die change
efficiency and flexibility production and increase the daily delivery rate to shorten the production cycle; the
logistics end shortens the logistics cycle by improving the efficiency of logistics collection loading and delivery.At the same time the company will build a data security system to vigorously ensure the smooth progress of
industrial Internet projects increase the proportion of direct delivery of products increase the proportion of orders
and customers and support the increase in commercial inventory turnover.
2. Improve R&D efficiency. Take the product as the starting point connect the planning development promotion
and sales business chain to achieve the joint action of goals and tasks reduce the design change rate compress the
research and development cycle and strictly control the number of product models.
3. Improve manufacturing efficiency. On the premise of ensuring safety we will focus on comprehensive
54CHANGHONG MEILING CO.LTD. Annual Report 2021
operation precise ordering digital manufacturing and lean production; with production line efficiency as the
starting point we will greatly narrow the gap with benchmarks and achieve manufacturing breakthroughs.
4. Improve quality efficiency. Continue to promote risk control cost reduction and reputation improvement
improve product quality level greatly reduce the bad review rate of e-commerce telephone complaint rate and
return rate and improve customer satisfaction.
5. Improve human efficiency and cultural implementation. Continuously optimize jobs and improve human
efficiency and upgrade GPI (employee performance growth indicator) and improve employee vitality. Implement
the corporate culture into the code of conduct and the evaluation standards for each cadre and employee and
improve the professional satisfaction of all employees.Product leadership: Value oriented study consumer needs and gain insight into technology development trends;
integrate internal planning capabilities R&D and manufacturing capabilities marketing and promotion
capabilities and user service capabilities and superimpose "unique value products" on the basis of efficiency to
form the competitive advantages of "high-quality products + popular products" .
1. Adhere to the product strategy. Adhere to the product strategy of "high-quality products" + "popular products" +
"high-quality & popular products" focus on "thin fresh beautiful intelligent" refrigerators focus on "extremelyquiet extremely economical extremely intelligent" air conditioners focus on "thin large simple” washing
machines focus on “influential brands of water ecological household appliances and operation services” forkitchen bathroom and small household appliances and focus on “life sciences cold chain and health marketopportunities” to make product layout for biomedical products. Through "accurate positioning strengthening
stratification revitalizing bases and channel customization" we continue to enhance product competitiveness and
promote healthy product operation.
2. Strengthen the construction of product planning system. Refresh the product planning and development outline
by node to accurately meet the market demand. Go deep into the market to improve the accuracy and breadth of
product planning standardize the implementation of the IPD process and reduce source changes.
3. Take the user as the center dig out and solve the pain points. Make precise user portraits embed user
experience evaluation into the IPD process and enhance the improvement rate of user experience problems for
new products.
4. Improve the capacity building of core key technologies. Independently master the core technology to achieve
industry leadership; integrate and apply the key technologies to achieve industry advancement; and master the
hard core technology mechanism to achieve industry breakthroughs.
5. Strengthen intelligent research. Create a leading product use experience around the human-computer interaction
between users and home appliances and create a new generation of home appliance products around the
integration of basic home appliance technology and intelligent technology.Benchmarking: It is necessary to benchmark not only the technology but also the business guiding ideology so
as to improve the performance ability and efficiency of the organization.
55CHANGHONG MEILING CO.LTD. Annual Report 2021
2. Market strategy
(1) Refrigerator (freezer)
In the domestic market the company will unswervingly carry out the transformation of the marketing organization
create "high-quality goods" + "hot sale products"+ “high-quality and hot-sale products” increase scale improve
gross profit increase e-commerce efforts promote online and offline integration and achieve scale growth
through the increase in online share meanwhile shrink offline channels with poor profit and loss.In overseas markets focus on valuable scale improvement. Create the advantages of air cooling and frequency
conversion consolidate the leading advantages of vertical air-cooled refrigerators create the advantages of
thin-walled horizontal refrigerators with full volume improve product competitiveness and continuously increase
market share by focusing on strategic markets key markets and potential markets. At the same time accelerate
the business development of self-owned overseas brands the subsidiaries run parallel to the agency models and
speed up the brand export.
(2) Air-conditioning
In the domestic markets we pursue a benign priority seize the opportunity to upgrade the functions of "fresh airself-cleaning and comfortable air" and create a "high-quality goods" + "hot sale products"+ “high-quality andhot-sale products” model. Develop e-commerce focus on the base market fully benchmark against each other
and insist on profitable scale growth.In overseas markets the company adheres to the business philosophy of brand priority channel focus product
upgrade and efficiency first. In terms of channels seek breakthroughs in new markets further expand emerging
markets focus on core customers in key markets and strengthen the ability to respond to different markets. In
terms of products promote the derivation and sales of new on-hook platform products and accelerate the
development of the third-generation health air conditioners and the products with voice function of a local
minority language.
(3)Washing machine
On the basis of domestic sales make rapid breakthroughs in export sales supplemented by brand business the
three-in-hand make its own efforts to achieve sustainable and high-quality growth. Focus on the industrial vision
of "wash away the pretense and protect the whole family" adhere to the business philosophy of "user-centered
high-quality differentiated" and create the core competitiveness of products such as "ultra-thin body"
"super-large diameter" and "one-key smart wash".
(4) Kitchen and bath small household appliances
For kitchen bathroom and small household appliances continue to implement differentiated competition
strategies strengthen the improvement of influence in the water ecology segment and continue to deepen the
system capabilities building based on the business idea of "product traction marketing transformation operation
improvement and team activation" focus on the core product line of "Tea Drinking Ecology" and steadily
improve the market size and industry status.
56CHANGHONG MEILING CO.LTD. Annual Report 2021
(5) Bio-medical
Unswervingly implement the development strategy based on the related diversification in the bio-medical field
center on the business framework layout of life science smart cold chain and family health go deep into the life
science channel system construction promote product upgrade iterations and new technology innovation research
and development to drive services and improve efficiency; move towards automated cold storage and steadily
expand smart cold chain business; promote the launch of new family health products and accumulate channel
expansion to promote the rapid growth of the company.The above business plan and business objectives do not represent the listed Company’s profit forecast of 2022
whether it can be achieved depends on the changes in market condition the efforts of management team and other
factors there are a lot of uncertainties investors should pay special attention to it.(v) Possible risks and countermeasures
In the face of home appliances market competition is more intense and other objective factors the survival
environment of an enterprise will be even worse. In 2022 the Company will face risks as severe industry soaring
raw material costs rising shipping prices trade frictions and geopolitical implications.
1. Risk of price fluctuations in raw materials
Affected by the pandemic the prices of bulk raw materials used in the company's main products have been rising
for several consecutive rounds since May 2019. Though the prices slightly fell after rise at the end of 2021 due to
the impact of the international and domestic "dual control" policies it is less likely that prices will have a sharp
decline and it is expected that the overall operation is still at a high level and the enterprises face huge cost
pressures.
2. Risk of price fluctuations in international transport
Affected by the pandemic and the increase in international demand for raw materials such as iron ore the
container and shipping capacity has become tight leading to an increase in international transport costs. It is
difficult for the company to book the cargo space for product export resulting in prolonged delivery and transport
cycle and difficult shipment of finished products. At the same time the rising sea freight leads to a rise in retail
price which will restrain the demand in some overseas markets and thus have an adverse impact on the
company's export business.
3. The impact of trade frictions and geopolitical
The company pays close attention to the impact of uncertain factors such as international trade frictions and
geopolitics on the company's global business.In response to the above risks and combined with the industry situation in 2022 and the deficiencies in 2021 the
company will fully implement the business policy of "one goal three main lines" in 2022 and make arrangements
in terms of products technologies and markets in advance so that the company's products can realize the
high-end and intelligent transformation meanwhile enrich product lines and build a comprehensive home
appliance enterprise.
57CHANGHONG MEILING CO.LTD. Annual Report 2021
XII. In the report period reception of research communication and interview
√ Applicable □ Not applicable
Main contents of the
Receptio Basic situation index of
Time Location Way Type discussion and the
n object investigation
information provided
The shareholders
and investors who
Holding a presentation
participated in the
China Fund- Jihuibao on the 2020 annual http://irm.cninfo.com.cn/ircs/c
interactive
Online Roadshow business results and ompany/companyDetail?stock
2021-4-14 Other Other exchange at the
Center responding the code=000521&orgId=gssz000
2020 annual
(www.jhbshow.com) questions that investors 0521
business
concerned
presentation of
the Company
58CHANGHONG MEILING CO.LTD. Annual Report 2021
Section IV. Corporate Governance
I. Corporate governance of the Company
(i) Overview of the corporate governance
In strict compliance with the Company Law Securities Law Governance Principles of Listed Company issued by
the CSRC the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and Shenzhen Stock Exchange
Self-Regulatory Guidelines No.1- Standardized Operation of the Listed Companies on main Board of SSE the
Company continued to construct and perfect its governance structure thereby forming its decision-making
supervision and operation management organization with general meeting the board of directors the board of
supervisors and operation management as the major structure. The general meeting board of directors board of
supervisors and operation management of the Company has definite terms of reference which can ensure an
effective balance scientific decision-making process and coordinative operation laying firm foundation for
making decisions relating to the Company’s continuous steady and healthy development.During the reporting period the actual situation of corporate governance has been in line with the requirements of
relevant state laws and regulations and regulatory documents relevant to governance of listed companies issued
by China Securities Regulatory Commission and Shenzhen Stock Exchange.
1. Shareholders and general meeting
The Company standardized the procedures concerning convening holding and voting of general meeting in strict
compliance with the Articles of Association and Rules of Procedure of General Meeting. All shareholders
especially the minority shareholders were equally treated to ensure all shareholders shall rank equal status and
can fully exercise their right. During the reporting period the Company convened shareholders general meetings.In addition to convening general meeting in forms of site conference the Company offered convenience for
shareholders to present general meeting via network voting which was safe economic and convenient. At the
same time all the matters submitted to the Company’s general meeting of shareholders should count the votes of
the small and medium investors separately and the results of the vote count should be disclosed timely so as to
effectively protect the rights and interests of small and medium investors and ensure that all shareholders
especially the small and medium shareholders fully exercise their rights.
2. The Company and controlling shareholders
The Company has independent business and independent management capability. The Company and its
controlling shareholders owe independent business personnel assets organs and finance. During the period
controlling shareholder abide by requirement of Article of Association and Management System of Related
Transactions strictly regulate their behaviors and no controlling shareholder has directly or indirectly intervened
in the Company’s policy-making and business activities beyond the general meeting of stockholders no capital or
assets of the Company occupied by controlling shareholder and its affiliates either.
59CHANGHONG MEILING CO.LTD. Annual Report 2021
3. The directors and board of directors
Board Meeting are revoke and open in line with the regulation of Company Law and Article of Association
strictly voting and information disclosure procedures appliance with relevant rules. All directors of the company
have carried out the work in accordance with the Rules of Procedure for the Board of Directors and the
Independent Director System conscientiously attended the board meetings and the shareholders' meetings
exercised their powers in accordance with the law performed their duties diligently and actively participated in
relevant training organized by the Shenzhen Stock Exchange and Anhui Securities Regulatory Bureau the
Listed Companies Association of Anhui and have been familiar with relevant laws and regulations. Independent
directors strictly abide by the Guiding Opinions on Establishing an Independent Director System in Listed
Companies the Independent Director System and other regulations in line with a serious diligent and loyal
working attitude based on an independent and prudent stand actively participated in the company's
decision-making carefully considered various proposals issued prior approval and independent opinions on
related transactions and major issues fully exerted the supervision and check and balance role of independent
directors and effectively safeguarded the interests of the company and all shareholders especially the small and
medium shareholders. The four special committees of strategy remuneration and assessment audit and
nomination under the board of directors of the company have been responsible for the discussion
decision-making supervision and evaluation of major work issues of the company according to the corresponding
working rules of each departmental committee and quality played an important role in the scientific
decision-making and the improvement of decision-making efficiency and quality.
4. Supervisors and board of supervisors
The Company convened and held meeting of supervisors in strict compliance with the Company Law and Articles
of Association and the voting and information disclosure procedures of supervisors’ meeting complied with
relevant requirements. The tenth board of supervisors of the company has five supervisors including two
employee supervisors the number and constitution of the board of supervisors meet the requirements of laws and
regulations. All supervisors of the company can earnestly perform their duties in accordance with the requirements
of the Rules of Procedure for the Board of Supervisors supervise the decision-making procedures and resolutions
of the board of directors and the legal operation of the company review the regular reports prepared by the board
of directors and put forward written review opinions and effectively supervise and express independent opinions
on the company's major events related transactions financial status the legality and compliance of directors and
senior executives’ performance of duties by attending the general meeting of shareholders and the meeting of the
board of directors from the perspective of safeguarding the legitimate rights and interests of the company and
shareholders.
5. The performance appraisal and incentive and constraint mechanism
The Company owes and continues to improve fairness and transparency performance appraisal standards and
incentive and constraint mechanism for directors supervisors and senior management the engagement of
managers of the Company is open and transparent and meets the provisions of laws and regulations.
60CHANGHONG MEILING CO.LTD. Annual Report 2021
6. The stakeholders
The Company fully respects and maintains the legitimate rights and interests of stakeholders; strengthen
communication and negotiation with each other realizes the coordination and balance of interests for all parties
including society shareholders company and staff pushes forward the sustainable steady and harmonious
development of the Company together. In terms of safeguarding the interests of shareholders the company treats
all shareholders especially the small and medium-sized shareholders equally in strict accordance with relevant
regulations and ensures that all shareholders enjoy equal status and fully exercise their rights by regulating the
convening holding and voting procedures of the general meeting of shareholders. In terms of rights and interests
maintenance the company attaches great importance to the growth and development of employees improves
employee satisfaction and guides all employees to make more contributions to the development of the company
by building position system organizing a variety of accrual activities to shape corporate culture and formulating
sustainable human resources and remuneration policies. In terms of safeguarding the interests of related parties
guided by the corporate value of "co-creation and sharing" the company is committed to establishing a win-win
cooperation model with related parties for common development and common growth and exploring the
optimization of cooperation modes such as management personnel cost and efficiency under the principle of
equality and mutual benefit.
7. About information disclosure and transparency
During the reporting period the company strictly complied with relevant provisions of the Listing Rules of
Shenzhen Stock Exchange and the company's Information Disclosure Management System strengthened the
management of information disclosure affairs actively fulfilled its information disclosure obligations and
designated Securities Times China Securities Journal Hong Kong Commercial Daily and Juchao Information
Websit（e Juchao Website (www.cninfo.com.cn)）as the designated media for the company's information disclosure
implemented strict confidential procedures for material undisclosed inside information and controlled the scope
of informed personnel. The company earnestly fulfilled its obligations to disclose relevant information in a true
accurate timely and complete manner and ensured that all investors equally enjoy the right to know and other
legitimate rights and interests.
8. Investor relations management
The Company has seriously done the job of the investor relations management in accordance with the
requirements of the "Investor Relations Management System" and "Reception and Promotion system" during the
Period. Communicated with investors through the irm.cninfo.com.cn platform of the Shenzhen Stock Exchange
fully listened to their opinions and suggestions and protected the interests of small and medium investors;
earnestly did a good job in answering and replying investors' visits and calls as well as receiving and replying
faxes and e-mails and carefully handled the media reports. In order to fully protect the interests of small and
medium investors the company organized and held the 2020 online performance briefing and achieved good
results helping investors to have a more comprehensive understanding of the listed company and enhancing the
company's transparency.
61CHANGHONG MEILING CO.LTD. Annual Report 2021
(ii)Whether there are significant differences between the actual state of corporate governance and laws
administrative regulations and the provision with governance concerned for listed companies issued by
CSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws administrative
regulations and the provision with governance concerned for listed companies issued by CSRC
II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring
the Company’s assets personnel finance organization and businesses
The Company totally separated in business personnel assets institutions and financial aspects from Sichuan
Changhong (controlling shareholder) and actual controller State-owned Assets Supervision & Administration
Commission of Mianyang Municipality with independent business accounting responsibility and risk and
independent business operation capability.
1. The business: the Company has an independent and complete business as well as operation ability with
specialized procurement production technology marketing management human resources and other
departments. We autonomously manage and operate business on our own. While the management staff are
independent from controlling shareholders and their subordinate enterprises. The Company is free from
interference by controlling shareholders and other affiliates and there is no dependence on controlling
shareholders and other affiliates.
2. The personnel: personnel labor personnel and salary of the Company are completely independent. President
vice president person in charge of finance Secretary of the board of directors and other senior management
personnel are working in the Company and receive salary not receiving any remuneration and holding position of
any except directors supervisors in the controlling shareholder and its subordinate enterprises.
3. Assets: the Company owns places of production and management independent from its controlling shareholder
owns complete assets structure independent production system auxiliary production systems and supporting
facilities land use rights ownership of houses and other assets and independent purchase and sales system. No
assets occupied by controlling shareholders and other affiliates.
4. Institutions: the Company established organization completely independent from controlling shareholders; the
general meeting board of directors board of supervisors and the internal organization are capable of taking
independent action with no controlling shareholder intervention of corporation's decision-making behavior. The
Company strengthen the power restriction system via general meeting the Board supervisory committee
independent directors and vary committees formulated an effective structure for corporate governance.
62CHANGHONG MEILING CO.LTD. Annual Report 2021
5. Financial aspects: the Company set up independent financial management and independent accounting system
and financial management system independently setting up banking account and tax declaration.III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period the Company held annual shareholders’ general meeting and extraordinary
shareholders’ general meeting
(i) Annual Shareholders’ General Meeting in the report period
Ratio of
Session of Date of
Type investor Date Index of disclosure
meeting disclosure
participation
Totally 21 proposals including Report on Works of BOD
for year of 2020 Report on Works of BOS for year of
2020 Annual Report of 2020 and Its Summary Financial
AGM of Statement Report for year of 2020 and Plans of Profit
AGM 31.5421% 2021-4-28 2021-4-29
2020 Distribution for year of 2020 are deliberated and approved
in the Meeting for details please refer to the "Resolution
of the AGM of 2020" (No. 2021-034) on the cninfo
website (Juchao Website (www.cninfo.com.cn)).One proposal on Assets Procurement Termination and
First
Related Transactions was deliberated and approved by the
Extraordinary Extraordinary
Meeting for details please refer to the "Resolution Notice
General General 4.7757% 2021-6-16 2021-6-17
of First extraordinary general meeting of 2021" (No.Meeting of Meeting
2021-046) on the cninfo website (Juchao Website
2021
(www.cninfo.com.cn)).Totally 2 proposals including Purchasing the Liability
Insurance for Director/Supervisor/Senior Executives and
Second
Increased the Expected Routine Related Transactions for
Extraordinary Extraordinary
year of 2021 are deliberated and approved in the Meeting
General General 31.3097% 2021-7-28 2021-7-29
for details please refer to the " Resolution Notice of
Meeting of Meeting
Second extraordinary general meeting of 2021" (No.
2021
2021-058) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).One proposal on Continue Implementation and Adjustment
Third Partially of the Repurchase Program of Certain Domestic
Extraordinary Extraordinary Listed Foreign Shares (B Share) was deliberated and
General General 31.4135% 2021-9-10 2021-9-11 approved by the Meeting for details please refer to the "
Meeting of Meeting Resolution Notice of Third extraordinary general meeting
2021 of 2021" (No. 2021-075) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).Totally 11 proposals including Amend Some Article of the
Fourth Article of Association Amend Some Articles of Rules of
Extraordinary Extraordinary Procedure for Shareholders General Meeting and
General General 31.4488% 2021-12-23 2021-12-24 Expected Routine Related Transactions for year of 2022
Meeting of Meeting are deliberated and approved in the Meeting for details
2021 please refer to the " Resolution Notice of Fourth
extraordinary general meeting of 2021" (No. 2021-109) on
the cninfo website (Juchao Website
63CHANGHONG MEILING CO.LTD. Annual Report 2021
(www.cninfo.com.cn)).(ii) Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
64CHANGHONG MEILING CO.LTD. Annual Report 2021
V. Directors supervisors and senior officers
(i) Basic information
Number of
Number of
Shares held shares Shares Reasons for
Number of shares Other
Working Start dated of End date of office at Stock increased held at increase or
Name Title Sex Age restricted shares decreased in changes
status office term term period-begin options in this period-end decrease of
granted (share) this period (share)
(share) period (share) shares (share)
(share)
Wu Currently Not
Chairman M 49 2014-7-3 2023-10-12 570500 0 0 0 0 0 570500
Dinggang in office applicable
Zhong Currently Not
Director President M 49 2013-12-30 2023-10-12 236175 0 0 0 0 0 236175
Ming in office applicable
Yong Currently Not
Director M 53 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Fengshan in office applicable
Kou Director Deputy Currently Not
M 52 2014-7-3 2023-10-12 0 0 0 0 0 0 0
Huameng president in office applicable
Hu Director Deputy Currently Not
M 48 2018-6-21 2023-10-12 178050 0 0 0 0 0 178050
Zhaogui president in office applicable
Zhao Currently Not
Director M 46 2021-12-23 2023-10-12 0 0 0 0 0 0 0
Qilin in office applicable
Hong Currently Not
Independent director M 46 2020-10-12 2023-10-12 0 0 0 0 0 0 0
yuanjia in office applicable
Currently Not
Mou Wen Independent director F 55 2020-10-12 2023-10-12 0 0 0 0 0 0 0
in office applicable
Zhao Currently Not
Independent director M 43 2020-10-12 2023-10-12 0 0 0 0 0 0 0
Gang in office applicable
Chairman of Currently Not
Shao Min M 39 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Supervisory in office applicable
He Currently Not
Supervisor M 41 2017-9-12 2023-10-12 0 0 0 0 0 0 0
Xintan in office applicable
Huang Supervisor Currently F 51 2017-9-12 2023-10-12 0 0 0 0 0 0 0 Not
65CHANGHONG MEILING CO.LTD. Annual Report 2021
Hong in office applicable
Currently Not
Ji Ge Staff supervisor F 40 2017-12-25 2023-10-12 0 0 0 0 0 0 0
in office applicable
Sun Currently Not
Staff supervisor F 50 2021-3-30 2023-10-12 0 0 0 0 0 0 0
Hongying in office applicable
Liu Executive deputy Currently Not
M 58 2011-6-20 2023-10-12 1689893 0 0 0 0 0 1689893
Hongwei president in office applicable
Huang Currently Not
Deputy president M 52 2017-9-12 2023-10-12 356450 0 0 0 0 0 356450
Danian in office applicable
Tang Currently Not
Deputy president M 51 2021-3-29 2023-10-12 0 0 0 0 0 0 0
Youdao in office applicable
Pang CFO (person in charge Currently Not
M 46 2017-10-25 2023-10-12 0 0 0 0 0 0 0
Haitao of finance) in office applicable
Currently Not
Li Xia Secretary of the Board F 41 2009-5-22 2023-10-12 552800 0 0 0 0 0 552800
in office applicable
Office Not
Chen Ye Director M 57 2020-10-12 2021-12-10 0 0 0 0 0 0 0
leaving applicable
Zhu Office Not
Staff supervisor M 34 2015-4-8 2021-3-30 0 0 0 0 0 0 0
Wenjie leaving applicable
Total -- -- -- -- -- -- 3583868 0 0 0 0 0 3583868 --
66CHANGHONG MEILING CO.LTD. Annual Report 2021
1. During the reporting period whether there was any departure of directors and supervisors and dismissal
of Senior Officers
√ Yes □ No
(1) On March 30 2021 former security representative and staff supervisor Mr. Zhu Wenjie resigned from the position of staff
supervisor of 10th BOS and security representative of the Company for personal reasons.
(2) On December 20 2021 non-independent director Mr. Chen Ye resigned from the Director of 10th BOD and member of the
strategy committee of the Company for personal reasons.
2. Changes of directors supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Tang Deputy Appoint Approved by 6th session of 10th BOD Mr. Tang Youdao was appointed as
2021-3-29
Youdao president ment the Deputy president with service term same as the 10th BOD
Voted by the 6th session of 8th Staff Congress of the Company agreed to
Sun
Staff Be elected Ms. Sun Hongying as the staff supervisor of 10th BOS term of
Hongyin 2021-3-30
supervisor elected office shall be from the date of deliberation and approval by Staff Congress
g to the date of expiration of 10th BOS of the Company
Approved by Fourth Extraordinary General Meeting of Shareholders of
Zhao Be
Director 2021-12-23 2021 Mr. Wu Zhao Qilin was elected as the non-independent director of
Qilin elected the 10th BOD with service term same as the 10th BOD
Office Resigned from the Director of 10th BOD and member of the strategy
Chen Ye Director 2021-12-10
leaving committee of the Company for personal reasons.Zhu Staff Office Resigned from the position of staff supervisor of 10th BOS and security
2021-3-30
Wenjie supervisor leaving representative of the Company for personal reasons.(ii) Post-holding
1. Professional background major working experience and present main responsibilities in Company of
directors supervisors and senior executive at the present
(1) Wu Dinggang male the Han nationality from Suining Sichuan Province was born in March 1973 Member
of CPC owns bachelor degree graduate from Tianjin University of Commerce China (Tianjin University of
Commerce now) major in refrigeration equipment and cryogenic technique. He served successively as GM of
Suining Sale Branch and Chengdu Sales Branch of Sichuan Changhong Electric Co. LTD director of Sichuan
and Chongqing Marketing Management Department of Sichuan Changhong Electric Co. LTD deputy GM of
Changhong Electronics (China) Marketing Co. GM of market planning center of Changhong Multimedia Industry
director and GM of Le-Jia-Yi Chain Management Co. Ltd. ZhongkeMeiling Cryogenic Technology Co. Ltd.director and GM of Sichuan Changong Air Conditioner Co. Ltd and deputy president president deputy chairman
and Party Secretary of the Company. Currently he serves as director vice GM of Sichuan Changhong Electric Co.Ltd. chairman of the Company; Chairman of Zhongshan Changhong Electric Co. LTD; Chairman of Sichuan
Changhong Air-conditioner Co. Ltd. and Chairman of ZhongkeMeiling Cryogenic Technology Co. Ltd.
67CHANGHONG MEILING CO.LTD. Annual Report 2021
(2) Zhong Ming male the Han nationality from Meishan Sichuan Province was born in November 1972
member of CPC a senior engineer doctoral degree EMBA degree from University of Science and Technology of
China PhD degree in Engineering Thermophysics. He successively served as deputy director of research
institution of Sichuan Changhong Air-conditioner Co. Ltd. deputy GM of Sichuan Changhong Air-conditioner
Co. Ltd. and technical director of household appliance group of Sichuan Changhong Electric Co. LTD. He serves
as director President and Party Secretary of the Company currently and Chairman of Hefei MeilingWulian
Technology Co. Ltd.
(3) Yong Fengshan male Han nationality was born in Ding yuan Anhui in June 1968 a member of the
Communist Party of China a senior accountant and a master degree holder. He ever took the posts of the director
of finance department of Hefei Cable Factory the director of finance division and the deputy chief accountant of
Hefei Meiling Co. Ltd. the deputy general manager and chief accountant of Hefei Meiling Group Holding Co.Ltd. the secretary of the party committee and the GM and the president of Hefei Industrial Investment Holdings
Co. Ltd.Currently he serves asthe secretary of the party committee and the president ofHefei Industry Investment
Holding (Group) Co. Ltd. the secretary of the party committee and the GM and the president ofHefei Industrial
Investment Holdings Co. Ltd. chairman of Hefei State-owned Assets Holding Co. Ltd. the president of CAS
(Hefei) Institute of Technology Innovation Co. Ltd. chairman of Hefei Venture Capital Guiding Fund Co. Ltd.director of Anhui Jianghuai Automobile Co. Ltd. chairman of Hefei Kechuang Group Co. Ltd. chairman of
Hefei Talent Development Group Co. Ltd. vice chairman of Anhui Management Society Vice chairman of Hefei
Enterprise (Entrepreneurs) Association and Chairman of Shushan Branch and the director of the Company.
(4)Zhao Qilin male Han nationality born in September 1975 graduated from Southwestern University of
Finance and Economics with a bachelor's degree in rural finance and served as accountant of the financial
department investment project manager asset management manager of asset management department manager
of investment management department and securities affairs representative of Sichuan Changhong Electric Co.Ltd.; financial manager of Sichuan Changhong Innovation Investment Co. Ltd.; chief financial officer and and
joint company secretary of Changhong Jiahua Holdings Co. Ltd.. He currently serves as secretary of the board
general counsel office director of the board of directors and director of the asset management department of
Sichuan Changhong Electric Co. Ltd. the controlling shareholder of the Company; director of Anjian Holdings
Co. Ltd. and director of Sichuan Changhong Innovation Investment Co. Ltd..
(5) Kou Huameng male the Han nationality from Yanting Sichuan Province was born in February 1970
Member of CPC master degree candidate EMBA graduate from UESTC. He served successively as deputy
director of production office of Sichuan Changhong Electric Co. LTD director of Guangxi Marketing
management Committee director of Fujian-Jiangxi Marketing Management General Manager of Changhong
Audiovisual Company and director and GM of Guangdong Changhong Digital Technology Co. Ltd.; Sichuan
68CHANGHONG MEILING CO.LTD. Annual Report 2021
Changhong Electric Co. Ltd director of development management department of Sichuan Changhong Electric
Co. Ltd. and director of ChanghongHuayi Compressor Co. Ltd.; now he serves as director and deputy president
of the Company.
(6) Hu Zhaogui male the Han nationality born in Feixi Hefei in October 1974 a member of the Communist
Party of China holds a master’s degree graduated from Chongqing University as a master of business
administration. He has served successively as the head of marketing and sales department stationed abroad of
Hefei Meiling Co. Ltd. assistant president and general manager of the freezer and washing machine business
division and general manager of the domestic marketing division. He is currently the director and vice president
of the Company and the general manager of Sichuan Changhong Air Conditioner Co. Ltd. a subsidiary of the
Company.
(7) Hong yuanjia male Han nationality born in February 1975 Shantou Guangdong holds a master degree
graduated from Shanghai University of Finance and Economics majoring in international business management
and is Fudan University MPAcc (Master of Accounting) CPA International Accountant (AIA) intermediate
accountant and intermediate economist. He once served as the foreign currency payable supervisor and
investment supervisor of China Eastern Airlines Co. Ltd. the deputy manager of the financial department of the
Shanghai Representative Office of SanchengHongji (Hong Kong) Co. Ltd. the accounting manager of General
Electric Lighting Co. Ltd. the accounting manager of General Electric Industrial Supply Co. Ltd. and Chief
Financial Officer of Lingji Electronics (General Electrical Industry System Power Supply). He is currently the
Chief Financial Officer of Asia Pacific Region of Yiluo Technology (Shanghai) Co. Ltd. and an independent
director of the Company.
(8) Mou Wen female Han nationality born in September 1965 Hengshan Hunan holds a master's degree an
accountant and holds a master's degree in business management from Sichuan University. She previously served
as a lecturer in the School of Business Administration of Sichuan University an Associate Professor of
Accounting in the School of Business Administration of Sichuan University an independent director of Tibet
Mineral Development Co. Ltd. Sichuan Jinlu Group Co. Ltd. Huayi Compressor Co. Ltd. Jinhui Liquor Co.Ltd. Sichuan Teway Food Co. Ltd. and Hebei Baoli Engineering Equipment Group Co. Ltd. a member of
Investment Decision Advisory Committee of Sichuan Chuanjiao Road and Bridge Co. Ltd. and financial
consultant of Sichuan Daka Electric Co. Ltd. etc. She is currently Associate Professor and Master Supervisor of
Business School of Sichuan University and an independent director of Chengdu Guibao Science and Technology
Co. Ltd. MianyangFulin Precision Machinery Co. Ltd. Sichuan Joyou Digital Technology Co. Ltd. Tibet
Mineral Development Co. Ltd. and an independent director of the Company.
(9) Zhao Gang male Han nationality born in April 1977 Peixian Jiangsu Province is a member of the
Communist Party of China holds a doctoral degree graduated from the University of Science and Technology of
69CHANGHONG MEILING CO.LTD. Annual Report 2021
China majoring in power engineering and thermophysics. He once served as a post doctorate and an associate
professor in the Department of Mechanics and Mechanical Engineering of the University of Science and
Technology of China a professor of orbital systems in the Department of Electronic Science and Technology a
special researcher for foreigners in the Japan Society for the Promotion of Science School of Engineering
Kyushu University Japan and a senior research scholar in the Department of Mechanical Engineering at the
University of Washington. He is currently the executive director professor and doctoral supervisor of the
Department of Electronic Science and Technology of the University of Science and Technology of China the
deputy director of the Anhui Life Resources Conservation and Artificial Organ Engineering Technology Research
Center a part-time professor of the Department of Mechanical Engineering of the University of Washington and
an independent director of the Company.
(10)Chen Ye male Han nationality native of Changzhou Jiangsu born in November 1963 senior engineer
master's degree graduated with a master's degree in business administration from Business School of the Hong
Kong University of Science and Technology. He served as an engineer of Physical and Chemical Analysis Centers
of the 46th Research Institute of CETC deputy general manager of Tianjin Xinxing Electronics Co. Ltd.chairman and president of Sichuan Top Software Co. Ltd. general manager of Beijing Hongli Nico Technology
Co. Ltd. manager of planning technology department and deputy manager of asset management department of
Sichuan Changhong Electric Co. Ltd. general manager of Sichuan Changhong Innovation Investment Co. Ltd.general manager of Chengdu Changhong Technology Co. Ltd. and director of the Company. He resigned from
the Company on December 10 2021 and didn’t serve as a director of the Company.
(11) Shao Min male Han nationality was born in Linyi Shandong in March 1983 and earned a bachelor’s
degree in accounting major from Xi’an Jiaotong University. He joined in work in July 2004 and ever served as
the accountant and finance manager of the branch office of Sichuan Changhong Electric Co. Ltd. the financial
director of finance department the project manager of asset management department manager of Assets
Operation Division of Assets Management Dept deputy director and director of the Assets Management Dept.of
Sichuan Changhong Electric Co. Ltd. He currently serves as the head of Capital Operation Dept.of Sichuan
Changhong Electric Co. Ltd. director of Changhong Huayi Compressor Co. Ltd. director of Sichuan
Changhong New Energy Technology Co. Ltd. and the chairman of the Board of Supervisors of the Company.
(12) He Xintan male Han nationality was born in Xiayi Henan in April 1980 a member of the Communist Party
of China an economist and earned a master’s degree in management science and engineering from Xi’an
Jiaotong University. He joined in work in July 2002 and successively took the posts of the operations
management director of operation management department and the manager of general management office of
Sichuan Changhong Electric Co. Ltd. the deputy director of development and management department of
Sichuan Changhong Electric Co. Ltd. and a director of Changhong Huayi Compressor Co. Ltd.Currently he
serves as assistant to General Manager of Sichuan Changhong Electric Co. Ltd.and a supervisor of the Company.
70CHANGHONG MEILING CO.LTD. Annual Report 2021
(13) Huang Hong female Han nationality was born in Shehong Sichuan in June 1970 a member of the
Communist Party of China a master degree holder graduated from the University of Glasgow as a MBA and a
senior auditor. She joined in work in July 1992 and ever served as the financial director of finance department
the audit manager marketing audit director and audit chief of auditing department of Sichuan Changhong Electric
Co. Ltd. He currently serves as the deputy director of auditing department and the deputy director of labor union
audit committee of Sichuan Changhong Electric Co. Ltd. and a supervisor of the Company.
(14) Ji Ge female Han nationality was born in Nanyang Henan Province in January 1982 a member of the
Communist Party of China and earned a bachelor’s degree in law from Hunan University and a master’s degree
from Anhui University. She joined Hefei Meiling Co. Ltd. in July 2005 and once served as the legal specialist of
legal department the sponsor of legal affairs and the intellectual property director of the legal department of the
Company. She currently serves as staff supervisor of the Company member of commission for Discipline
Inspection head of director office and risk control compliance dept. director of office of Party Committeeand
director of Discipline Inspection office.
(15)Sun Hongying female Han nationality native of Tongcheng Anhui born in March 1972 member of the
Communist Party of China master degree intermediate accountant graduated from Hefei University of
Technology with a major in accounting. She successively served as deputy director of the cost center director of
the financial department of the refrigerator business division and deputy director of the financial management
department of Changhong Meiling Co. Ltd.. She currently serves as employee supervisor deputy director of the
refrigerator and freezer division of the finance and economics department and director of the company labor
union review committee of the Company.
(16) Liu Hongwei Male Chinese American bored in May 1963 Doctor of Applied Mechanics from Lehigh
University graduate from department of mechanical engineering Tsinghua University. He served successively in
Kulicke and Soffa Industries Pennsylvania; Tessera Technology Corporation Califonia; serves technical and
management post in Intel Corporation in Silicon Velleg. He joints the Hefei Meiling Co. Ltd. in 2007 now he
serves as executive deputy president of the Company.
(17) Huang Danian male Han nationality was born in Huaining Anhui in November 1969 a member of the
Communist Party of China a senior engineer and a master degree holder. He once served as the logistics director
and the deputy general manager the director of the human resources department the director of the
comprehensive planning department head of budget management dept. and the assistant to the general manager
of Sales Company of Hefei Meiling Co. Ltd. He is now the vice president of the Company.
(18)Tang Youdao male Han nationality was born in Xuancheng Anhui in July 1970 a undergraduate degree and
graduated from Wuhan University of Technology majoring in industrial management engineering. He hold jobs
successively as overseas marketing manager head of marketing dept. head of overseas marketing dept. and
71CHANGHONG MEILING CO.LTD. Annual Report 2021
general manager of overseas business division under the name of Hefei Meiling Co. Ltd. Currently vice president
and general manager of overseas refrigerator/washing machine division of the Company.
(19) Pang Haitao male Han nationality was born in Qionghai Hainan in May 1975 a member of the Communist
Party of China a senior accountant a senior political engineer and a bachelor degree holder and earned the
EMBA degree from Jiangxi University of Finance and Economics. He used to be a member of the finance
department the director of related transactions and the director of capital operations of Sichuan Changhong
Electric Co. Ltd. the chief of finance office of Guangdong Changhong Electronics Co. Ltd. the director
ofgeneral ledger the head of general management office and the head of general ledger management office of the
finance department of Sichuan Changhong Electric Co. Ltd. the deputy general manager and chief financial
officer of Sichuan Changhong Development Co. Ltd. the deputy general manager and chief accountant of Huayi
Compressor Co. Ltd. Currently he is the chief financial officer (person in charge of finance) of the Company.
(20) Li Xiafemale the Han nationality from Qionglai Sichuan Province was born in October 1980 Member of
CPC and Intermediate Accountant with Master Degree. She graduated from Accounting Department of Sichuan
University Business and Management School. She ever was Project Manager in Financing & Acquisition Office
of Asset Management Department and Business Executive in Board Office of Sichuan Changhong Electronic Co.Ltd. she took the posts of Deputy GM and Financial Supervisor of Sichuan Changhong Innovation Investment Co.Ltd. and chairman of supervisory committee ofZhongkeMeiling Cryogenic Technology Co. Ltd. She is the
Secretary of the Board deputy secretary of the Party secretary of discipline inspection commission and general
counsel of the Company recently.
(21) Zhu Wenjie male the Han nationality from Hefei Anhui Province member of Communist Party of China
born in January 1988 a master degree，graduated from University of science and technology of China as a MBA.he served as an accountant for big customer accounting in financial management department of Hefei Meiling Co.Ltd. securities affairs assistant at the office of secretary of the board director of securities affairs the
representative of securities affairs and staff supervisor. He has resigned form the Company on March 30 2021 and
no longer holds staff supervisor of the Company.
2. Post-holding in shareholder’s unit
√ Applicable □ Not applicable
Drawing remuneration
Start date of End date of and allowance from
Name Shareholder’s unit Title
office term office term shareholder’s unit
(Y/N)
Director 2020.06.30 2023.06.29 N
Wu Dinggang Sichuan Changhong Electric Co. Ltd.Deputy GM 2019.01.12 2023.06.29 Y
72CHANGHONG MEILING CO.LTD. Annual Report 2021
Hefei Industry Investment Holding (Group) Party Secretary
Yong Fengshan 2015.02 - Y
Co. Ltd. Chairman
Secretary of the
Board of 2020.12.16 2023.6.29 Y
Directors
General counsel 2022.2.14 2023.6.29 N
ZhaiQilin Sichuan Changhong Electric Co. Ltd. Director of Board
2021.3.29 - N
Office
Director of Asset
Management 2021.3.29 - N
Department
Sichuan Changhong Electric Co. Ltd. Assistant to 2021.03.29 - Y
He Xintan
General Manager
Post-holding in
N/A
shareholder’s unit
3. Post-holding in other unit
√ Applicable □ Not applicable
Drawing
remuneration
Start date of End date of
Name Other unit Title and allowance
office term office term
from other unit
(Y/N)
Sichuan Zhiyijia Network Technology Co.Chairman 2021.01.25 - N
Ltd.Wu
Lejiayi Chain Management Co. Ltd. Chairman 2019.04.25 - N
Dinggang
Sichuan Kuaiyidian Electrical Service Chain Chairman
2019.06.10 - N
Co. Ltd.Hefei Venture Capital Guidance Fund Co. Chairman
2015.04. - N
Ltd.CAS (Hefei) Technical Innovation Chairman
2015.04. - N
Engineering Institute Co. Ltd.Yong Hefei State-owned Assets Holding Co. Ltd. Chairman 2015.04 - N
Fengshan Chairman General
Hefei Industry Investment Holding Co. Ltd. Manager Secretary of 2008.06 - N
the Party Committee
Anhui Jianghuai Automobile Group Co.Director 2018.07.20 2022.03.25 N
Ltd.
73CHANGHONG MEILING CO.LTD. Annual Report 2021
Hefei Kechuang Group Co. Ltd. Chairman 2021.05 - N
Hefei Talent Development Group Co. Ltd. Chairman 2022.01 - N
Sichuan Changhong Innovation Investment
Director 2021.1.21 - N
Co. Ltd.WIDEMIRACLELIMITED Director 2014.7.14 - N
Ganghong Industrial Co. Ltd. Director 2013.6.18 - N
Zhao Qilin
SUFFICIENTVALUEGROUPLIMITED Director 2013.6.18 - N
Changhong Jiahua (Hong Kong) Information
Director 2021.1.8 - N
Products Co. Ltd.Anjian Holdings Co. Ltd. Director 2012.1.19 - N
Lejiayi Chain Management Co. Ltd. Director 2018.01.23 - N
Sichuan Zhiyijia Network Technology Co.Director 2019.07.25 - N
Ltd.Hong Yuan Ground Energy Heat Tech. Co.Vice Chairman 2017.12.27 - N
Hu Zhaogui Ltd.Sichuan Tianyou Guigu Technology Co.Director 2018.01.16 - N
Ltd.Chengdu Guigu Environmental Tech. Co.Director 2018.06.30 - N
Ltd.Associate professor
Business School of Sichuan University 1995.02 - Y
master tutor
Chengdu Sibao Technology Co. Ltd. Independent director 2017.05.05 2021.12.07 Y
Mou Wen Mianyang Fulin Precision Machinery Co.Independent director 2017.06.23 2023.06.30 Y
Ltd.Sichuan Junyi Digital Technology Co. Ltd. Independent director 2021.07.01 2024.06.30 Y
Tibet Mining Development Co. Ltd. Independent director 2021.03.09 2024.03.08 Y
Department Executive
University of Science and Technology of
Zhao Gang Director Professor 2011.04 - Y
China
Doctoral Supervisor
Hong Yiluo Technology (Shanghai) Co. Ltd. Asia Pacific Financial 2014.06 - Y
yuanjia Director
Changhong Huayi Compressor Co. Ltd. Director 2021.02.25 2024.05.12 N
Sichuan Changhong New Energy
Director 2018.05.10 2024.12.19 N
Shao Min Technology Co. Ltd.Sichuan Changhong Electronics Holding Head of Capital
Group Co. Ltd. Operation Dept.
2021.03 - Y
Huang Hong Sichuan Changhong Electronics Holding Deputy Director of 2011.09.16 - Y
74CHANGHONG MEILING CO.LTD. Annual Report 2021
Group Co. Ltd. Audit Department
Pang Haitao Hefei Xingmei Asset Management Co. Ltd. Director 2018.02.05 - N
Post-holding
N/A
in other unit
4. Punishment of securities regulatory authority in recent three years to the company’s current and
outgoing directors supervisors and senior management during the reporting period
□ Applicable √ Not applicable
(iii) Remuneration of directors supervisors and senior executives
1. Decision-making determine basis and actually payment of remuneration for directors supervisors and
senior executives
(1) Procedure for deciding remunerations of directors supervisors and senior management
Implemented in line with laws regulations and relevant rules of “Company Law” “Article of Association” and
“Enforcement Regulation of Remuneration and Evaluation Committee of the Board” including:
Allowance plan of independent directors are implemented after deliberated in the Board and approved in
Shareholders’ General Meeting. Other directors and non-staff supervisors except independent directors are
received no remuneration from the Company.Remuneration of senior executives are deliberated and approved by the Board according to remuneration
evaluation plan together with opinions of Remuneration and Evaluation Committee.The remuneration appraisal and payment for directors and senior executive of the Company for Current Year will
disclose in the Annual Report after review without objection from Remuneration & Appraisal Committee of the
Board and submit to the BOD for Current Year.
(2) Bases on which remunerations of directors supervisors and senior management are decided
The Company conducted the performance examination on the task of directors supervisors and senior executives
according to the HR management policy wages of directors supervisors and senior executives are decided by
their performance and evaluations check by the Company. All wages are performing by the evaluation results
according to the only evaluation standard that carried by the Company.
(3) Actual payment of remunerations of directors supervisors and senior management
Allowance of the independent directors are paid by the standards approved in Annual Shareholders’ General
Meeting other director who serves as senior executive at the same time and non-staff supervisors except
independent directors did not received remuneration from the Company; remunerations for senior executives of
75CHANGHONG MEILING CO.LTD. Annual Report 2021
the Company are paid strictly by the unify remuneration valuation mechanism of the Company.Directors supervisors and senior executives of the Company has 19 in total up to 31 December 2021 actually 13
person receiving remuneration from the Company 2 staff supervisors are received their remuneration by actual
positions (non-supervisor post); furthermore 3 independent directors are received the allowance monthly from the
Company; the Company will pay remuneration to senior executives in line with the performance appraisal by
monthly quarterly and annual.During the reporting period the Company has established the executive compensation and performance
management program for the senior management of 2021 in accordance with the main scope the responsibilities
the importance of the management positions of the senior management and the compensation level of other
relevant company and position the program includes but not limited to the company's key performance indicator
(KPI) and performance evaluation criteria procedures and major evaluation system; the major programs of the
reward and punishment; review the performance of duties of the company's senior management and conduct the
annual performance appraisal.At the end of Current Year the Remuneration and Appraisal Committee combined the work report and
self-evaluation of the senior management in 2021 followed the performance evaluation criteria and procedures
and evaluated the Key Performance Indicator (KPI) of the senior management in 2020; and other relevant
indicators of performance evaluation; proposed the remuneration amount and performance appraisal approach of
the senior management based on the job performance evaluation results and the remuneration policy and reported
to the Board for deliberation.
2. Remuneration for directors supervisors and senior executives in reporting period
In 10 thousand yuan
Total Whether
remuneration remuneration
Name Title Sex Age Post status obtained from the obtained from
Company (before related party of
taxes) the Company
Currently in Y
Wu Dinggang Chairman M 49 0
office
Currently in N
Zhong Ming Director President M 49 45.56
office
Currently in 0 Y
Yong Fengshan Director M 53
office
Currently in 35.08 N
Kou Huameng Director Deputy president M 52
office
76CHANGHONG MEILING CO.LTD. Annual Report 2021
Currently in 60.22 N
Hu Zhaogui Director Deputy president M 48
office
Currently in 0 Y
Zhao Qilin Director M 46
office
Currently in 11.90 N
Hong yuanjia Independent director M 46
office
Currently in 11.90 N
Mou Wen Independent director F 55
office
Currently in 11.90 N
Zhao Gang Independent director M 43
office
Currently in 0 Y
Shao Min Chairman of Supervisory M 39
office
Currently in 0 Y
He Xintan Supervisor M 41
office
Currently in 0 Y
Huang Hong Supervisor F 51
office
Currently in 32.33 N
Ji Ge Staff supervisor F 40
office
Currently in 29.16 N
Sun Hongying Staff supervisor F 50
office
Currently in 71.31 N
Liu Hongwei Executive deputy president M 58
office
Currently in 35.33 N
Huang Danian Deputy president M 52
office
Currently in 380.12 N
Tang Youdao Deputy president M 51
office
CFO (person in charge of Currently in 42.59 N
Pang Haitao M 46
finance) office
Currently in 30.31 N
Li Xia Secretary of the Board F 41
office
Chen Ye Director M 57 Office leaving 0 Y
Zhu Wenjie Staff supervisor M 34 Office leaving 5.85 N
Total -- -- -- -- 803.56 --
VI. Responsibility performance of directors during the reporting period
(i) The board of directors during the reporting period
77CHANGHONG MEILING CO.LTD. Annual Report 2021
Session of
Date of meeting Disclosure date Meeting resolutions
meeting
Totally 5 proposals including Invested Wealth Management Products with Part of the Idle
Fund Raising and Investment and Establishment of a Wholly-Owned Subsidiary by
The 5th
Zhongke Meiling Cryogenic Technology Co. Ltd- Controlling Subsidiary of the Company
session of 2021-3-2 2021-3-3
are deliberated and approved in the Meeting for details please refer to the "Resolution
10th BOD
Notice of the 5th session of 10th BOD" (No. 2021-008) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).Totally 27 proposals including Report on Works of BOD for year of 2020 Annual Report
The 6th of 2020 and Its Summary and Financial Statement Report for year of 2020 are deliberated
session of 2021-3-29 2021-3-31 and approved in the Meeting for details please refer to the "Resolution Notice of the 6th
10th BOD session of 10th BOD" (No. 2021-013) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).Totally 6 proposals including The Q1 Report of 2021 Provision for Credit Losses and
The 7th
Provision for Decline in Value of Inventories are deliberated and approved in the Meeting
session of 2021-4-19 2021-4-20
for details please refer to the "Resolution Notice of the 7th session of 10th BOD" (No.
10th BOD
2021-028) on the cninfo website (Juchao Website (www.cninfo.com.cn)).
Totally 3 proposals including Investment in Building the Industrial Internet Service
Capacity by Subsidiary- Hefei Meiling Wulian Technology Co. Ltd The Company Applied
The 8th for a Special Credit Line of Up to 400 million yuan for the Note Pool from Jiujiang Bank
session of 2021-5-26 2021-5-27 Hefei Branch and Holding the First Extraordinary Shareholders General Meeting of 2021
10th BOD are deliberated and approved in the Meeting for details please refer to the "Resolution
Notice of the 8th session of 10th BOD" (No. 2021-038) on the cninfo website (Juchao
Website (www.cninfo.com.cn)).Totally 9 proposals including Purchasing the Liability Insurance for
Director/Supervisor/Senior Executives Increased the Expected Routine Related
The 9th Transactions for year of 2021 and The Company Applied for a Maximum Credit Line of
session of 2021-7-12 2021-7-13 300 million yuan from Hefei Branch of China Minsheng Bank are deliberated and
10th BOD approved in the Meeting for details please refer to the "Resolution Notice of the 9th
session of 10th BOD" (No. 2021-050) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).Totally 10 proposals including Semi-Annual Report (Full-text) of 2021 and its Summary
The 10th Provision for Credit Losses and Provision for Decline in Value of Inventories are
session of 2021-8-16 2021-8-18 deliberated and approved in the Meeting for details please refer to the "Resolution Notice
10th BOD of the 10th session of 10th BOD" (No. 2021-060) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).Totally 2 proposals including Continue Implementation and Adjustment Partially of the
Repurchase Program of Certain Domestic Listed Foreign Shares (B Share) and Holding
The 11th
the Third Extraordinary Shareholders General Meeting of 2021 are deliberated and
session of 2021-8-24 2021-8-25
approved in the Meeting for details please refer to the "Resolution Notice of the 11th
10th BOD
session of 10th BOD" (No. 2021-067) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).
78CHANGHONG MEILING CO.LTD. Annual Report 2021
Totally 18 proposals including The Q3 Report of 2021 Provision for Credit Losses
The 12th Provision for Decline in Value of Inventories and Disposal of Non-Current Assets are
session of 2021-10-19 2021-10-20 deliberated and approved in the Meeting for details please refer to the "Resolution Notice
10th BOD of the 12th session of 10th BOD" (No. 2021-081) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).Totally 12 proposals including Amend Some Article of the Article of Association Amend
The 13th Some Articles of Rules of Procedure for Shareholders General Meeting and Expected
session of 2021-12-6 2021-12-7 Routine Related Transactions for year of 2022 are deliberated and approved in the
10th BOD Meeting for details please refer to the "Resolution Notice of the 13th session of 10th
BOD" (No. 2021-091) on the cninfo website (Juchao Website (www.cninfo.com.cn)).One proposal on By-Election of the Non-independent Director of 10th BOD of the
The 14th
Company was deliberated and approved in the Meeting for details please refer to the
session of 2021-12-12 2021-12-13
"Resolution Notice of the 14th session of 10th BOD" (No. 2021-101) on the cninfo website
10th BOD
(Juchao Website (www.cninfo.com.cn)).Totally 3 proposals including Increase in Expected Routine Related Transactions for 2021
Agree Sichuan Zhiyijia Network Technology Co. Ltd Provided External Guarantee and
The 15th
Holding the First Extraordinary Shareholders General Meeting of 2022 are deliberated
session of 2021-12-20 2021-12-21
and approved in the Meeting for details please refer to the "Resolution Notice of the 15th
10th BOD
session of 10th BOD" (No. 2021-104) on the cninfo website (Juchao Website
(www.cninfo.com.cn)).(ii) The attending of directors to Board meetings and shareholders general meeting
The attending of directors
Times of
Times of Board
Times of Times of Times of Absent the Meeting for attending the
meeting supposed Times of
Director present in attending by entrusted the second time in a row shareholder
to attend in the Absence
person communication presence (Y/N) general
report period
meeting
Wu Dinggang 11 2 9 0 0 N 3
Zhong Ming 11 2 9 0 0 N 5
Yong
11 0 11 0 0 N 0
Fengshan
Kou
11 2 9 0 0 N 3
Huameng
Chen Ye 9 1 8 0 0 N 2
Zhao Qilin 0 0 0 0 0 N 0
Hu Zhaogui 11 1 10 0 0 N 0
Hong yuanjia 11 1 10 0 0 N 1
Mou Wen 11 2 9 0 0 N 2
79CHANGHONG MEILING CO.LTD. Annual Report 2021
Zhao Gang 11 2 9 0 0 N 4
Explanation of absent the Board Meeting for the second time in a row
During the reporting period none of the directors failed to attend two consecutive Board Meeting in person.(iii) Objection for relevant events from directors
Whether directors come up with objection about company’s relevant matters or not
□ Yes √ No
Directors has no objections for relevant events in reporting period
(iv) Other explanation about responsibility performance of directors
Whether the opinions from directors have been adopted or not
√ Yes □ No
During the reporting period the directors of the company strictly followed the Company Law the Securities Law
the Listing Rules of Shenzhen Stock Exchange and the Self-Discipline Supervision Guidelines for Listed
Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies" and
other laws and regulations actively attended the company's board meetings and the company's general meeting of
shareholders performed duties conscientiously and diligently made prudent and scientific decisions on various
matters reviewed by the company's board meetings and all their professional suggestions on the company’s major
decisions have been adopted .VII. The special committees under the board during the reporting period
Specific
Number
Other circumstances
Committee of Important comments and
Members Date of Meeting content performance of the
name meetings suggestions made
meeting of duties objection (if
held
applicable)
Wu Reviewed one proposal on
Dinggang the Investment and
Yong Establishment of a The proposal was
Fengshan Wholly-owned Subsidiary deliberated and approved Not
2021-2-25 N/A
Zhong by the Holding Subsidiary and agreed to submit to the applicable
Strategy Ming Zhongke Meiling BOD for consideration
2
Committee Kou Cryogenic Technology Co.Huameng Ltd.Hu
Zhaogui Reviewed two proposals on The above mentioned Not
2021-3-19 N/A
Chen Ye the Company's 2021 proposal was deliberated applicable
Zhao Development Plan and and approved and agreed to
80CHANGHONG MEILING CO.LTD. Annual Report 2021
Gang Proposal on the Company's submit to the BOD for
Shareholders Return consideration
Planning in the Next Three
Years (2021-2023).Reviewed two proposals on
the Financial Statement
Report for year of 2020 and
The above mentioned
Arrangement of Internal Not
2021-1-28 proposals are deliberated N/A
Control Auditing and applicable
and approved
Un-audited Financial
Accounting Statement for
year of 2020
Reviewed one proposal on
Preliminary Draft of the The proposal was Not
2021-3-10 N/A
Audit on Financial deliberated and approved applicable
Statement for year of 2020
The proposal were
Reviewed five proposals
deliberated and approvedon” Audited Financial
and agreed to submit theStatement Report of 2020”following 4 proposals as ”“Auditing Report ofAudited Financial
Hong Internal Control for year of Statement Report ofyuanjia 2020” ‘Summary ReportAudit 2020”“Auditing Report ofMou Wen 6 on Auditing Works for year
Committee Internal Control for year ofZhao of 2020 from Shine Wing Not 2021-3-28 2020”“Auditing Institution N/AGang Certified Public Account” applicable for Financial Report of“Auditing Institution for
2021 and Internal Control
Financial Report of 2021
Auditing Re-engagement
and Internal Controland Remuneration Paid”
Auditing Re-engagementand “Opening Business ofand Remuneration Paid”Forward Exchange” to theand “Opening Business ofBOD for considerationForward Exchange”
The proposal was
Reviewed one proposal on
deliberated and approved Not
2021-4-16 the “Financial Statement of N/Aand agreed to submit to the applicable
1Q of 2021”
BOD for consideration
The proposal was
Reviewed one proposal on
deliberated and approved Not
2021-8-6 the “Financial Statement of N/Aand agreed to submit to the applicableSemi-annual 2021”
BOD for consideration
2021-10-15 The proposal was Not N/A
81CHANGHONG MEILING CO.LTD. Annual Report 2021
Reviewed one proposal on deliberated and approved applicablethe “Financial Statement of and agreed to submit to the
3Q of 2021” BOD for consideration
Reviewed one approved on
the Proposal on the
The proposal was
Qualification Examination
deliberated and approved Not
Mou Wen 2021-3-19 of the Company’s BOD for N/A and agreed to submit to the applicable
Wu the Senior Managers BOD for consideration
Dinggang Planned to Be Appointed
NominationHong 2 by the Company”
Committee
yuanjia Reviewed one proposal
Zhao Proposal to Review the The proposal was
Gang Qualification of deliberated and approved Not
2021-12-10 N/A
Non-Independent Directors and agreed to submit to the applicable
to be Elected by 10th BOD BOD for consideration
of the Company
The proposal was
Zhao Reviewed one approved
deliberated and approved
Gang Wu onthe "Appraisal and
Remuneration by the Meeting and agreed
Dinggang Payment of Remuneration Not
and Appraisal 1 2021-3-19 to submit to the annual N/A
Mou Wen of Directors and Senior applicable
Committee meeting of the Board for
Hong Executives in Current Year
consideration as part of the
yuanjia 2020"
Annual Report
VIII. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory
committee
□Yes √ No
Supervisory committee has no objection about supervision events in reporting period
IX. Staff of the Company
(i) Numbers professional structure and education background
On-job employee in parent company at period-end (people) 4614
On-job employee in main subsidiary at period-end(people) 8201
Total on-job employees at period-end(people) 12815
Current total payroll(people) 12815
Number of retired employees with expenses paid by the parent company
83
and main subsidiary (people)
Professional structure
Types of professional category Numbers of professional category (people)
82CHANGHONG MEILING CO.LTD. Annual Report 2021
Production staff 7200
Salesman 2822
Technician 2273
Financial staff 195
Administration staff 325
Total 12815
Education background
Type of education background Numbers (people)
High school and below 8283
Junior college 1981
Undergraduate 2380
Master and above 171
Total 12815
(ii) Remuneration policy
The Company formulated human resources and compensation policy conducive to sustainable development of
enterprise according to the provisions of relevant laws and policies promulgated by the state and to the Company's
actual situation.In order to implement the core values of co-creation and sharing especially to mobilize the work initiative andenthusiasm of grass-roots employees based on the overall design idea of “building a small management & controlplatform making a refined business platform and a one-line decision-making power” further decentralization
effectively activate the team. In order to comprehensively and effectively evaluate and quantitatively evaluate
employee performance growth the guide departments actively found out where they had lagged behind made up
for shortcomings and continued to narrow the gap with benchmarks. The company made the design monitoring
and evaluation rules to performance growth indicator (GPI) system which effectively guided employee
performance growth and continuously improved the professional ability and work efficiency of employees. At the
same time an applicable compensation adjustment mechanism was established based on the growth level of
employees continuously motivating employees to pursue excellence and stimulating vitality. In order to promote
the achievement of the performance of each unit the company optimized and adjusted the incentive system this
year strengthened the quantitative reflection of incremental value and operating results and adjusted the incentive
system to annual operating results incentives and process value creation incentives so as to improve the
operational efficiency and vitality of business units. Continued to promote the application of the whole-process
performance management system optimized the information management of performance communication
performance feedback and growth communication mechanisms and encouraged employees to develop together
with the company. The company established and optimized a unified evaluation mechanism for job promotion set
up position systems and promotion channels implemented the point system evaluation criteria and internal job
83CHANGHONG MEILING CO.LTD. Annual Report 2021
competition mechanism and incorporated annual evaluation and competition into the normalization andgradually formed the employment mechanism of “those who want to do a job have a chance those who can do ajob have a platform and those who get things done have a status”. At the same time the company shaped the
corporate culture by providing various holidays allowances condolences and organizing a variety of leisure
activities sports culture festival carnivals etc. so as to improve the employee satisfaction.(iii) Training plans
Training plan: The Company has established the Human Resources Strategic LayoutTraining Management
Program Annual Talent Development & Training Plan and other systems and standard work flows set up the
staff capacity model built Meiling online learning system and the knowledge assets management system of
Changhong Meiling and gradually established the growth mechanism by combining the training with the
individual employee development and combining the qualification promotion with the career development.
1. The mechanism for the selection education and use of reserve talents gradually presented. The Company
established a clear evaluation model for talent standards completed the talent standards for management position
supervisory professional position and professional positions in each series; focused on advancing the project for
talent construction and optimized the high-level talent development echelons such as reserve leaders reserve
cadres reserve leaders and outstanding university students and realized the dynamic talent management;
establish succession maps for each sequence of talents and clarify the ability status of existing talent teams and
future talent succession systems.
2. Accurate training improved training effect. In order to effectively support the company's business policy of "one
goal three main lines" we built a multi-level and multi-category talent training system based on business needs.On the one hand improved the training enthusiasm and professional ability of the trainees through the project
points system industry exchanges and other activities on the other hand aiming at the common shortcomings of
the team and the shortcomings of personal ability introduced external training courses and internal course
development to effectively promote the precise training plan. At the same time we established a classified
management and organizational guarantee system for training projects and strengthened training process
management through methods such as course directional push node management and control project review and
training examinations and the training effect and the number of talent promotions have gradually emerged.
3. Built an internal knowledge asset management system jointly built an internal knowledge asset information
system with a third party and redefined the company's knowledge asset standards and organizational guarantee
system. On the one hand we integrated the online learning system and improve the unified planning
classification and tag retrieval of the knowledge asset management system and the knowledge system of online
learning system effectively established the prototype of the company-level knowledge assets and we would
continue to supplement and improve knowledge assets in the later stage. On the other hand continued to promote
the supplement and update of Meiling's knowledge assets database of "technology management manufacturing
84CHANGHONG MEILING CO.LTD. Annual Report 2021
quality safety and environmental protection". On the basis of "internal trainer certification system" and
"benchmark job knowledge extraction project" optimized professional series of live courses and internalized the
company's standardized talent knowledge base and carried out inheritance and influence.(iv) Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
(i) Formulation Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend
policy during the Reporting Period
√ Applicable □ Not applicable
During the reporting period the company has strictly executed the profit distribution policy in accordance with
the "Articles of Association" the formulation and implementation of the company's cash dividend policy are in
line with the provisions of "Articles of Association" and the requirements of the resolutions of shareholders'
meeting the dividends standards and proportion have been definite and clear relevant decision-making
procedures and mechanisms have been complete the responsibilities of independent directors have been clear and
have played its due role minority shareholders have had the opportunities to fully express their views and
aspirations and the legitimate interests of minority shareholders have been maintained. In addition the
“Changhong Meiling Co. Ltd. Shareholders Return Planning in the Next Three Years (2021-2023)” approved by
the company's board of directors and the resolutions of shareholders’ general meeting has made clear plans for the
form and priority of profit distribution the interval of profit distribution the specific conditions and proportions of
cash dividends and the specific conditions for issuing stock dividend.In the reporting period the Company implemented Profit distribution plan for year of 2020 that is based on the
1035528412 shares (deducted the 9069469 B-share repurchased which are not participated in distribution from
total share capital of the Company dated December 31 2020 that is 1044597881 shares) distribute 0.5 yuan
(tax included) in cash for every 10 shares held by all shareholders of the Company total cash dividend of
51776420.60 yuan was distributed.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
Minority shareholders have opportunity to express opinions and demands totally and their legal Y
85CHANGHONG MEILING CO.LTD. Annual Report 2021
rights are fully protected (Y/N):
Condition and procedures are compliance and transparent while the cash bonus policy adjusted or
Y
changed (Y/N):
(ii) The Company is profitable during the reporting period and the parent company has positive profit
available for distribution to shareholders without cash dividend distribution plan proposed
□ Applicable √ Not applicable
(iii) Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every 10-share (Share) 0
Dividends for every 10-share (RMB) (Tax included) 0.5
Shares added for every 10-share base (Share) 0
Equity base of distribution plan (Share) 1029923715
Total cash dividend (RMB) (Tax included) 51496185.75
Cash dividend for other ways (i.e. repurchased) (RMB) 16501235.20
Total cash dividend (including other way) (RMB) 67997420.95
Profits available for distribution (RMB) 733649425.65
Ratio of cash dividend (including other way) in total profit
100%
distribution
Cash dividend
Taking the total share capital on the equity registration date of the company’s future implementation of the 2021 annual equity
distribution plan as the base distribute cash dividends of 0.5 yuan (tax included) for every 10 shares to all shareholders not giving
bonus shares and not converting capital reserve in to equity.On February 18 2022 the implementation of shares buy-back of domestically listed foreign shares (B-Share) was completed and
the cancellation of the buy-back shares are finished on March 2 2022. After cancellation total share capital of the Company
amounted to 1029923715 shares and the matters relating to the registered capital reduction and Article of Association
amendment have yet to be submitted to the shareholders general meeting for consideration.Detail explanation on profit distribution or capitalization from capital public reserve
For year of 2021 the individual statement of the parent company show net profit of 67464464.66 yuan according to the
auditing from Shine Wing Certified Public Accountants (LLP). In accordance with relevant regulations the retained profit at
beginning of Current Year amounted as 943879339.46 yuan deducted the 2020 profit distributed 51776420.60 yuan and
after extract for statutory surplus reserve 6746446.47 yuan the retained profit in individual statement of the parent company
cumulative counted as 952820937.05 yuan at end of 2021. In addition for year of 2021 the net profit attributable to owners of
parent company amounted as 51898388.84 yuan caliber of the consolidated statement undistributed profit at the beginning of
the year is 740754202.23 yuan deducted the 2020 profit distributed 51776420.60 yuan and after extract for statutory
surplus reserve 6746446.47 yuan accumulated retained profit according to the consolidated statement at the end of 2021
86CHANGHONG MEILING CO.LTD. Annual Report 2021
counted as 734129724.00 yuan.According to relevant regulations the company's profit distribution shall be based on the profit available for distribution of the
parent company and shall comply with the principle of the lower of the profit accumulative available for distribution in the
consolidated statement and the parent company's statement. Therefore the profit available for distribution in 2021 is the cumulative
undistributed profit of 734129724.00 yuan in the consolidated statement at the end of 2021.Pursuit to relevant rules and regulation of Article of Association and considering the interest of shareholders and long-term
development needs of the Company proposed recommendations:Taking the total share capital on the equity registration date of the
company’s future implementation of the 2021 annual equity distribution plan as the base distribute cash dividends of 0.5 yuan (tax
included) for every 10 shares to all shareholders not giving bonus shares and not converting capital reserve in to equity. On
February 18 2022 the implementation of shares buy-back of domestically listed foreign shares (B-Share) was completed and the
cancellation of the buy-back shares are finished on March 2 2022. After cancellation total share capital of the Company amounted
to 1029923715 shares and the matters relating to the registered capital reduction and Article of Association amendment have yet
to be submitted to the shareholders general meeting for consideration. Taking the total 1029923715 shares after cancellation as
the base a cash dividend of 51496185.75 yuan is expected to be paid.After distribution the retained profit of the parent company amounted as 901324751.30 yuan rests of the retained profit will
carry-over for distribute in later years.XI. Implementation of the Company’s stock incentive plan employee stock ownership plan or other
employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan employee stock ownership plans or other employee incentives.XII. Construction and implementation of internal control system during the reporting period
(i) Construction and implementation of internal control
In accordance with the Basic Norms for Enterprise Internal Control and its supporting guidelines and the
Information Disclosure Compilation Rules for Companies Publicly Issuing Securities No. 21 - General Provisions
on Annual Internal Control Evaluation Reports jointly issued by the China Securities Regulatory Commission and
the Ministry of Finance and other relevant regulations and combined with the Company's internal control system
and internal control evaluation methods the company organized its internal control work effectively implemented
internal control and continuously improved and optimized the company's internal control system so as to adapt to
the needs and changes of the internal and external environment.The company's 2021 Annual Internal Control Self-Assessment Report fully truly and accurately reflected the
actual situation of the company's internal control. The units businesses and matters included in the assessment
scope as well as high-risk areas covered the main aspects of the company's operation and management and the
company maintained effective internal controls in high-risk areas and in all material aspects. During the reporting
period the company had no major defects and significant defects in internal control.(ii) Details of major defects in IC appraisal report that found in reporting period
87CHANGHONG MEILING CO.LTD. Annual Report 2021
□Yes √ No
XIII. Management and controls on the subsidiary during reporting period
Problems
Name of Integration Follow-up
Integration plan encountered in Actions taken Resolve progress
company progress resolution plan
integration
Not applicable - - - - - -
XIV. Internal control self-assessment report or internal control audit report
(i) Appraisal Report of Internal Control
Date of evaluation report of internal control disclosed (Full-text) 2022-3-31
Index of evaluation report of internal control disclosed (Full-text) Juchao Website (www.cninfo.com.cn)
The ratio of the total assets of units included in the scope of evaluation accounting for the total
99.48%
assets on the company's consolidated financial statements
The ratio of the operating income of units included in the scope of evaluation accounting for the
99.58%
operating income on the company's consolidated financial statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
1. Material defect: severally or jointly with other defects will lead to material
wrong reporting in financial reports being not able to prevented or found or Occurrence of the followings shall be
rectified in a timely manner. Occurrence of the followings will be deemed as deemed as material defect otherwise as
material defect: major defect or general defect subject to
1. inefficiency of environment control; the level of influence.
2. fraud of directors supervisors and senior management; 1. breach of national laws regulations or
3. The external auditor finds material wrong reporting in current financial regulatory documents;
statement while the Company has not found such reporting during its 2. procedure for making significant
operation; decisions is not scientific;
Qualitative 4. The material defect identified and reported to the management fails to be 3. absence of system may lead to invalid
criteria rectified in a reasonable time period; system;
5. The audit committee and audit department of the Company exercise invalid 4. Material or major defects are not likely
supervision upon internal control; to rectify;
6. Other defects which may affect financial statement users to make correct 5. Large negative effects on the company
judgment. and disclosed in the form of
2. Major defect: severally or jointly with other defects will lead to wrong announcement;
reporting in financial reports being not able to prevented or found or rectified
6. Other issues that materially affect the
in a timely manner which still needs attention from the management though it
Company.doesn’t reach or exceed material defect as described above. Occurrence of the
followings will be deemed as major defect:
88CHANGHONG MEILING CO.LTD. Annual Report 2021
(1) Financial losses caused by guaranteeing and investing in securities and
financial derivatives transactions and disposing property right and stock right
without authorization;
(2) The company's financial staff or other relevant business personnel have
unclear powers and responsibilities or job chaos or are suspected of being
involved in economic or job-related crimes and have been transferred to the
judiciary;
(3) Punishment or severely negative impacts on the company's image due to
the bias implementation of the policy or accounting errors etc.;
(4) Financial losses caused by destroying concealing or altering the important
original evidences at will such as invoices and checks etc.
(5) Cash income is not entered into the account book or public funds are
deposited in private account or "private coffer" is established by breaking the
rules.
3. General defect: other internal control related defects that do not constitute
material defects or major defect.
1. Proportion of direct property loss in
total operating income: Material defect:
wrong reporting ≧0.1%; Major defect:
0.05% ≤ wrong reporting＜0.1%; General
1. Proportion of potential wrong reporting in total operating income: defect: wrong reporting＜0.05%.
Material defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong 2. Proportion of direct property loss in
reporting＜0.5%; General defect: wrong reporting＜0.1%. total profit: Material defect: wrong
2. Proportion of potential wrong reporting in total profit: Material defect: reporting ≧10%; Major defect: 5% ≤
wrong reporting ≧10%; Major defect: 5% ≤ wrong reporting＜10%; General wrong reporting＜10%; General defect:
Quantitative defect: wrong reporting＜5%. wrong reporting＜5%.standard 3. Proportion of potential wrong reporting in total assets: Material defect: 3. Proportion of direct property loss in
wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; total assets: Material defect: wrong
General defect: wrong reporting＜0.1%. reporting ≧0.2%; Major defect: 0.1% ≤
4. Proportion of potential wrong reporting in total owners’ equity: Material wrong reporting＜0.2%; General defect:
defect: wrong reporting ≧0.5%; Major defect: 0.1% ≤ wrong reporting＜0.5%; wrong reporting＜0.1%.General defect: wrong reporting＜0.1%. 4. Proportion of direct property loss in
total owners’ equity: Material defect:
wrong reporting ≧0.2%; Major defect:
0.1% ≤ wrong reporting＜0.2%; General
defect: wrong reporting＜0.1%.Amount of significant defects in financial
0
reports
Amount of significant defects in non-financial
0
reports
Amount of important defects in financial 0
89CHANGHONG MEILING CO.LTD. Annual Report 2021
reports
Amount of important defects in non-financial
0
reports
(ii) Auditing report of internal control
√ Applicable □ Not applicable
Deliberation section of auditing report of IC
We consider that: in all major aspects Changhong Meiling Co. Ltd. has efficiency in financial report of internal control dated 31 December
2021 according to Basic Standards of Internal Control for Enterprise and relevant regulations.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control
2022-3-31
(full-text)
Index of audit report of internal control (full-text) Juchao Website (www.cninfo.com.cn)
Opinion type of auditing report of IC Standard unqualified
whether the non-financial report had major defects No
Whether CPA carries out qualified opinion for audit report of internal control or not
□Yes √ No
Whether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation
report of the Board or not
√ Yes □ No
XV. The rectification of self-examination problems in the special actions on governance of listed companies
According to the Announcement on Launching Special Actions on the Governance of Listed Companies" (CSRC
[2020] No. 69) of China Securities Regulatory Commission the company followed the principle of seeking truth
from facts strictly compared with the "Special Self-examination List on Governance of Listed Companies" and
carefully sorted out the existing problems. Through this self-examination the Company believed that its corporate
governance complied with the requirements of the Company Law the Securities Law and the Standardized
Operation of Main Board Listed Companies and other laws and regulations. The problems found in the company's
self-examination and sorting out and the rectifications were as follows:
(i) Subsidiary holding shares of listed companies and the rectification
1. Meiling Group a wholly-owned subsidiary of the company held 1141053 restricted shares of the Company.
The restricted shares held by Meiling Group were the consideration shares received for the share reform on behalf
90CHANGHONG MEILING CO.LTD. Annual Report 2021
of other non-tradable shareholders in the company's reform plan for non-tradable shares. In March 2016
according to the approval of the State-owned Assets Supervision and Administration Commission of the State
Council the 49477513 state-owned shares (including the already held 47823401 shares and the unrecovered
relevant rights of the consideration of 1654112 shares received for the share reform on behalf of other
non-tradable shareholders in the company's reform plan for non-tradable shares) of the Company held by Hefei
Xingtai Holdings Group Co. Ltd. the company's original shareholder should be transferred to Industry
Investment Group free of charge. Therefore the restricted shares of the Company held by Meiling Group should
be transferred to Industry Investment Group free of charge.
2. According to the approval of the State-owned Assets Supervision and Administration Commission of the State
Council and the regulations of relevant departments Meiling Group should transfer the shares paid on behalf of
others and related rights held by it to Industry Investment Group at one time free of charge after recovering all the
1654112 shares of consideration for the share reform. At present Meiling Group has only recovered 1141053
shares and the holders of the remaining consideration shares for the share reform have been unable to get in touch
for many times and for many years there is great uncertainty about the time when all the shares will be recovered.However the company still actively promotes the recovery of the shares advanced by Meiling Group and handles
the relevant procedures for free transfer as soon as possible after all the consideration shares for the share reform
are recovered. Prior to this the company's restricted shares held by Meiling Group would not enjoy any rights as
shareholders during the holding period including voting rights dividend rights etc.(ii) The voting system did not comply with laws and regulations and the rectifications
1. According to Article 90 of the Securities Law of the People's Republic of China (2019 Amendment) "the board
of directors independent directors shareholders holding more than 1% of voting shares of a listed company or the
investor protection institutions established in accordance with laws administrative regulations or the provisions ofsecurities regulatory authority of the State Council may act as solicitors” and the company should complete the
scope of in accordance with the aforementioned regulations.
2. On December 6 and December 23 2021 the company held the thirteenth session of the tenth board of directors
and the fourth extraordinary general meeting of shareholders in 2021 it was agreed that the company would
complete the solicitation subject for voting rights in the Articles of Association and the Rules of Procedure for the
General Meeting of Shareholders (Announcement No. 2021-091 No. 2021-093 No. 2021-109) and the industrial
and commercial registration of changes has been completed.(iii) The controlling shareholder the actual controller and the listed company shared the trademark and the
91CHANGHONG MEILING CO.LTD. Annual Report 2021
rectifications
1. The company and the controlling shareholder shared trademark. Regarding the shared trademark only the
controlling shareholder authorized its "Changhong" trademark to Changhong Meiling for free use and there was
no such situation that Changhong Meiling authorized the "Meiling" trademark to be used by the controlling
shareholder.
2. In view of the fact that Changhong Meiling and the controlling shareholder used the controlling shareholder’s
"Changhong" trademark in different product businesses which neither caused competition or conflict with the
business of both parties nor affected the independence of Changhong Meiling as a listed company. In future the
company will legally and compliantly use trademarks in strict accordance with relevant laws and regulations.
92CHANGHONG MEILING CO.LTD. Annual Report 2021
93CHANGHONG MEILING CO.LTD. Annual Report 2021
Section V. Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
√ Yes □ N
Major pollutants and number Total Discharg
Name of name of typical Way of of concentration of discharge discharg Distribution of discharge outlets discharge Pollutants discharge standards enacted discharge Total discharge volume certified
e beyond
company or pollutants the
subsidiary e outlets
volume standards
Two outlets at J05 workshop "Sichuan Province Fixed Pollution Source Air Sichuan Changhong
and one outlet at J07 workshop Volatile Organic Compound Emission Standard
VOC (volatile Organized Air-conditioner Co. Ltd. has Not
3 No 128 Sanjiang Road organic compounds) emissions ≤18.1mg/m3
DB51/2377-2017" Table 3 standard 3540.57kg completed the pollutant exceeded
Economic Development Zone requirements that is volatile organic discharge registration on the
Mianyang City compounds <60mg/m3. national pollutant discharge
Sichuan Two outlets at J05 workshop (it permit management information "Comprehensive Emission Standard of Air
Changhong belongs to the same output as platform and obtained the
Air-conditi Organized Pollutants GB16297-1996" Table 2 secondary Not
oner Co. Nitrogen oxides 2 J05VOC) No 128 Sanjiang ≤26mg/m3 1881.23kg registration receipt in
emissions standard requirements that is the exceeded Ltd. 注 Road Economic Development accordance with the "Pollution
concentration of nitrogen oxides <240 mg/m3
Zone Mianyang City Permit Management Measures
Two outlets at J05 workshop (it (Trial)" the "Fixed Pollution
Organized belongs to the same output as "Comprehensive Emission Standard of Air Source Pollution Permit Not
Sulfur dioxide emissions 2 ＜3mg/m3 Pollutants GB16297-1996" Table 2 874.98kg J05VOC) No 128 Sanjiang Classification Management requirements that is the SO2<120 mg/m3 exceeded
Road Economic Development Directory (2019 Edition)" etc.
94CHANGHONG MEILING CO.LTD. Annual Report 2021
Zone Mianyang City there is no requirement for the
Two outlets at J05 workshop "Comprehensive Emission Standard of Air company's total emissions in the
and one outlet at J07 workshop Pollutants GB16297-1996" Table 2 secondary pollution discharge registration
Organized Not
Particulate matter 4 No 128 Sanjiang Road ≤1.7mg/m3 standard requirements that is the emissions 933.23kg exceeded
Economic Development Zone concentration of particulate matter <120
Mianyang City mg/m3
Note: In 2021 Bureau of Ecology and Environment of Mianyang issued the "List of Key Sewage Units in Mianyang for year of 2021" and included Changhong Air-conditioner in the list of key
soil environment pollution supervision
95CHANGHONG MEILING CO.LTD. Annual Report 2021
1. Construction and operation of pollution prevention facilities
The Company and its subsidiaries actively respond to the national ecological civilization construction plan and
actively participate in national environmental protection works in line with the purpose of actively fulfilling its
corporate social responsibility. In recent years The Company and its subsidiaries have actively explored the
introduction of advanced management concepts and methods and invested a large amount of money in the
purchase of pollution control equipment and facilities. And realized emission reduction by scientific technical
methods by the investment in installation of activated carbon adsorption treatment equipment welding dust
purifier facilities etc. At the same time in order to ensure the effective operation of the management equipment
and facilities the Company and its subsidiaries have adopted such management measures as setting up special
personnel to manage and maintain the operation of the equipment and facilities formulating proper rules for
operation and maintenance of the equipment and facilities emergency disposal regulations supervision and
assessment mechanism allocating special maintenance funds and so on so as to ensure the effective operation of
the governing facilities in a full round delivering its best to protect and improve the ecological environment
around the enterprise.
2. Environment impact assessment and other required environment protection administrative license for
construction projects
The Company and its subsidiaries earnestly implement the Environmental Protection Law the Environmental
Impact Assessment Law and the Regulations on Environmental Protection Management of Construction Projects
consciously abide by environmental protection laws and regulations industry requirements and government
regulations. For new renovated and expanded projects the Company and its subsidiaries adhere to the project
environmental impact assessment and "three simultaneous" system fully implement environmental protection
measures act well in environment protection management in respect of project planning design construction and
operation make full use of advanced crafts and technological means to reduce environmental pollution.Environmental impact assessment is carried out synchronously while making the feasibility study for a
construction project. Third-party professional parties are engaged to analyze the industrial policy land use
planning environmental impact and the feasibility of environmental protection measures of the project.Construction will be started only after approved by the competent environmental protection authorities. During
the construction environmental protection requirements are earnestly implemented environmental protection
facilities are built synchronously environmental protection acceptance of the project is arranged in time upon
completion of the project to ensure that the project meets the acceptance criteria and could be put into official
operation with all the environmental impact assessment requirements met. During the operation period the
Company conducts pollution prevention to ensure the normal operation of environmental protection facilities in
strict compliance with the relevant environmental impact assessment documents and the reply requirements of the
competent environmental protection authorities.
3. Emergency plan for environmental emergencies
The Company and its subsidiaries have set up related emergency plans for environmental emergencies. The
Company and its subsidiaries have determined classified warning based on the different extent and severity of
96CHANGHONG MEILING CO.LTD. Annual Report 2021
environmental impacts that may be caused by the material environmental factors defined the responsibilities for
emergency response regulated emergency handling procedures established special team to handle emergencies
and organized regular rehearsal and appraisal of relevant emergency plans so as to ensure the effectiveness of
these plans improve their capability of emergency handling and take precautions against contingent emergencies.
4. Independent plan to monitor environment
The Company and its subsidiaries have established regular monitoring plan for environmental pollutants set up
special funds for pollutants monitoring and engaged third-party authoritative to regularly monitor the operation of
major pollution-production links and environmental protection treatment facilities in connection with the major
pollutants produced by the Company and its subsidiaries to make sure that the Company and its subsidiaries
could achieve emission standards in a full round.
5. Administrative penalties for environmental issues during the reporting period
The Company and its subsidiaries strictly abide by the relevant national and regional environmental protection
laws and regulations established and improved the internal environmental protection management system by
relying on the ISO14001 system updated the adaptable laws and regulations and relevant industry requirements in
a timely manner and actively performed corporate social responsibilities which laid a solid foundation for the
company's compliance operations. During the reporting period the Company and its subsidiaries were not subject
to administrative penalties due to environmental issues.
6. Other environment information that should be disclosed
According to the Environmental Information Disclosure Measures of Enterprises and Institutions in line with the
principle of mandatory disclosure and voluntary disclosure combined the Company and its subsidiaries have
realized the disclosure of information relating to environmental impact assessment project acceptance pollutants
production and discharge solid waste management important environmental factors environmental objectives
and performance of construction projects.
7.Measures taken to reduce carbon emissions and their effectiveness during the reporting period
□ Applicable √ Not applicable
Combining the characteristics and special requirements of carbon emissions the company strengthens the energy
management of each production unit improves the internal energy management and energy efficiency index
assessment and energy consumption evaluation system continues to carry out energy measurement and evaluation
follows the principles of system management and establishes a complete and effective management system.During the reporting period the company vigorously promoted and applied the industry's advanced energy-saving
equipment and technologies and carried out energy-saving technical transformation; carried out energy-saving
transformation for high-consumption and low-efficiency air compressors upgrading and transformation for air
compressor joint control systems energy-saving transformation for steam pipelines research and application for
infrared heating technology application research for air energy units application research for air compressor
waste heat recovery and utilization and replacement of high-efficiency and energy-saving heating tiles and other
energy-saving renovation measures improved automation and intelligence and combined energy management
97CHANGHONG MEILING CO.LTD. Annual Report 2021
with informatization construction improved the production and manufacturing system through internet technology
realized lean production management improved production efficiency and reduced energy waste and CO2
emissions.
8. Other environment related information
In order to further realize the scientific and systematic environmental protection work of the Company and its
subsidiaries the Company and its subsidiaries have established an environmental management system in
accordance with ISO14001 standards set up an environmental protection organization acquired environmental
protection resources regularly identified updated and appraised environmental factors compliance obligations
environmental risks and opportunities and regularly determined environmental objectives and management
programs. Through the implementation of management programs and continuous normal improvement the
environmental performance of the Company and its subsidiaries has been continuously improved. Through regular
internal audit and management review as well as the verification and examination of the third parties the
environmental management system of the Company and its subsidiaries has been effectively controlled and fully
meets the system management standards and relevant regulations.II. Social responsibility
The company adheres to the core values of "dedication responsibility co-creation and sharing" and achieves the
purpose of "staff satisfaction customer satisfaction and shareholder satisfaction" through standardized operation
and scientific management. While achieving benign development the company has also actively fulfilled its
social responsibilities through various forms and channels.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association and the
Rules of Procedure for the General Meeting of Shareholders regulates the convening holding and voting
procedures of the general meeting of shareholders equally treats all shareholders especially small and medium
shareholders equally and ensures that all shareholders enjoy equal status and fully exercise their own rights.Under the premise of strictly implementing the Administrative Measures for Information Disclosure of Listed
Companies the company actively communicates and exchanges information with investors on the company's
operations and management financial status etc. through annual performance briefings investor telephone
hotline e-mails and the investor relations interactive platform of the Shenzhen Stock Exchange and discloses
information to all investors in a truthful accurate complete concise and clear and easy-to-understand manner;
the company attaches great importance to the shareholder return mechanism. During the reporting period the
company combined its own operating conditions and business models and formulated the "Shareholder Return
Plan for the Next Three Years (2021-2023) of Changhong Meiling Co. Ltd.". In addition during the reporting
period in order to effectively protect the rights and interests of all shareholders and enhance the investment
confidence of public investors in the company the company's board meeting and shareholders' meeting reviewed
98CHANGHONG MEILING CO.LTD. Annual Report 2021
and approved the continued implementation of the B-share repurchase plan which effectively improved
shareholder satisfaction.
2. Protection of the rights and interests of employees
In accordance with relevant laws regulations and policies and in light of its own actual situation the company
has established a relatively complete employment management system including labor contract system salary
and performance appraisal system welfare management system training management system employee vacation
management system etc.. The company pays attention to the vital interests of employees maximizes the
protection of the legitimate rights and interests of employees and retirees and strives to form a benefit sharing
mechanism for both company and employees and establishes a harmonious labor relationship. At the same time
the company shapes corporate culture and improves employee satisfaction by providing various vacations
allowances condolences and organizing colorful leisure activities sports and cultural festivals carnivals etc.
3. Protection of the rights and interests of suppliers customers and consumers
The company has established a relatively complete procurement management system optimized and revised
system documents in a timely manner unified information system tools strictly controlled every link of the
procurement business cultivated core and strategic suppliers and established a high-end supply chain cultivation
plan for component suppliers of high-end products so as to form a synergy cooperation and win-win situation
between the company and its suppliers.The company attaches great importance to product quality and customer needs and has a relatively advanced and
complete R&D and quality assurance system which has passed ISO9001 ISO14001 ISO45001 management
system certifications so its products are guaranteed by high quality and reliable performance. At the same time
for different types of customers the company implements classification evaluation and system management
timely answers or feed backs and deals with the questions raised by customers continuously improves quality
services and enhances brand image.
4. Social welfare
Over the years the company has been actively participating in social welfare undertakings and various social
welfare activities. The company strictly implements the internal environmental operation control procedures and a
series management systems related to environment safety and product quality such as Energy Management
Regulations Safety Production Responsibility System Safety Training Management System and "Process
Quality Control Points" Management Measures for Refrigerator and Freezer Products ensures that the company's
production and service activities comply with relevant national legal requirements; and actively carries out actions
such as helping employees with serious illnesses and advocating voluntary donations by employees. In addition
after the outbreak of the COVID-19 pandemic the company has actively participated in various social welfare
99CHANGHONG MEILING CO.LTD. Annual Report 2021
activities and assumed social responsibilities donated multiple batches of medical supplies to contribute to the
anti-pandemic work.III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
The company actively undertakes corporate social responsibility and strives to contribute to local poverty
alleviation and rural revitalization while achieving its own sound operation and development. At the beginning of
2022 the company has successively carried out the "Rural Revitalization Meiling Goes First - Base Agricultural
Products Fair" and the love assistance activities for Tongxin Primary School in Tiantangzhai Town Jinzhai
County positively responding to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era
and assuming the social responsibility of enterprises.
100CHANGHONG MEILING CO.LTD. Annual Report 2021
Section VI. Important Events
I. Implementation of commitment
(i) Commitments that the actual controller shareholders related party the buyer and the company have fulfilled during the reporting period and have not
yet fulfilled by the end of reporting period
√ Applicable □ Not applicable
Commitment Implement
Commitment Type/content Date Term
party ation
1. The acquirer shall not engage in refrigerator business or activity which Strictly
competes or will compete with business of Meiling Electrical Appliances or Valid for long term implemente
that which has interest conflict with Meiling Electrical Appliances. d
About committed
2. The acquirer promises to apply shareholders’ right on a legal and reasonable Strictly
Sichuan and promised in
Commitments manner and shall not take any action to limit or affect the normal operation of Valid for long term implemente
Changhong order to prevent
made in Meiling Electric. d
Electric Co. horizontal
acquisition 3. For any opportunity to engage in competing business the acquirer will 2007-6-12
Ltd.(hereinafter competition in the
report or equity advise Meiling Electric in written for engaging such business or not. If Meilingthe “Sichuan Acquisitionchange report Electrical Appliances gives no clear written reply as to whether engaging the StrictlyChanghong”) Report of Hefei
competing business or not within 20 days after receipt of the aforesaid letter it Valid for long term implemente
Meiling Co. Ltd.shall be deemed that it will not engage in such business. The acquirer will only d
engage in non-competing business provided that Meiling Electric confirms not
to or is deemed to not engage in such non-competing business.
101CHANGHONG MEILING CO.LTD. Annual Report 2021
1. It will not engage in such business or activity that competes with or has
interest conflict with that of Meiling Electric except for the action taken for
sake of Meiling Electric as required by Meiling Electrical Appliances.Commitment 2. The Company promises to apply shareholders’ right on a legal and
regarding to reasonable manner and shall not take any action to limit or affect the normal
Strictly
reducing and operation of Meiling Electric
2010-6-24 Valid for long term implemente
preventing 3. In case that Meiling Electric expects on the basis of its existing business to
d
competition with expand its operation scope into the business which the Company has already
Meiling Electric operated the Company agrees to grant priority acquisition right to Meiling
Electric regarding such business if the same conditions are met provided that
the Company is still the controlling shareholder or actual controller of Meiling
Electric
1. Measures will be adopted to prevent continued related transaction with
Sichuan
Commitment Meiling Electric: as to the related transaction that can not be prevented it will
Changhong
made during the Commitment sign related transaction agreement with Meiling Electric under the market
non-public offer regarding to principles of “equally paid and mutual benefit” and fairly determined the
of 2010 reducing and transaction price according to the market prevailing standards. Strictly
standardizing 2. Perform the necessary obligations to make related directors and related 2010-6-24 Valid for long term implemente
related transaction shareholder abstain from voting according to relevant regulation and observe d
with Meiling legal procedure for approving related transaction and information disclosure
Electric obligations.
3. Promise not to hurt legal interests of Meiling Electric and other shareholders
through related transaction.Strictly
Commit to authorized Changhong Air-conditioner and Zhongshan Changhong use “Changhong”
2010-11-6 Valid for long term implemente
trademark and relevant patents for free.d
1. Commit to disclose periodic reports on a truthful accurate complete fair and prompt manner to Strictly
The Company disclose all the information that have important influences over investors to accept supervision 2011-1-7 Valid for long term implemente
under the CSRC and Shenzhen Stock Exchange. d
102CHANGHONG MEILING CO.LTD. Annual Report 2021
2. Commit to make public clarification in respect of such information that is released from any
public media and may result in misleading influences on stock price once the Company is aware of
such information.
3. The directors supervisors senior management and core technicians of the Company will accept
opinions and criticism from the social public and they will not trade the Company’s securities
directly or indirectly with any inside information and other illegal methods. The Company
promises that the documents submitted to Shenzhen Stock Exchange exist no false statement or
material omission and no relevant information will be disclosed during the application for listing
without prior content from Shenzhen Stock Exchange.
1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Strictly
Air-conditioner Sichuan Changhong commits upon the completion of equity transfer to continue Valid for long term implemente
to lease such assets to Changhong Air-conditioner at market price. d
Commitment
2. After completion of this property transfer Sichuan Changhong commits to manage to prevent
made in transfer
Sichuan new related transaction with Meiling Electric. For those which can not be prevented Sichuan
of air 2009-12-10
Changhong Changhong commits to determine the transaction price based on market accepted methods so as to Strictly
conditioning
ensure fairness of related transaction and protection of the interest of Meiling Electric Valid for long term implemente
assets property
3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business d
or activity which competes or will compete with business of Meiling Electric or that which has
interest conflict with Meiling Electric
Sichuan 1. Based on market conditions and as allowed by laws and rules multiple measures were adopted
Changhong adequately to increase shareholding of Meiling Electric so as to demonstrate its firm confidence on
Commitments Electric Co. the PRC economy and Meiling Electric with its actual actions maintain sound development of
Strictly
of not to Ltd.and persons capital market and promote recovery of healthy market
2015-7-9 Valid for long term implemente
reducing the acting in concert
d
shares CHANGHONG 2. Continued to support operation and development of listed company as always and promoted the
(HK) TRADING achievement of Meiling Electric. It is committed to bringing steady and real return to investors.LIMITED
Commitment Directors and Commitment on 1. I hereby undertake not to deliver interests to other entities or individuals Till the completion
Implementi
made during the senior executives compensation of without consideration or at unfair conditions nor to prejudice the Company’s 2016-2-23 of projects invested
ng
non-public offer of the Company immediate interests by other means. with the proceeds
103CHANGHONG MEILING CO.LTD. Annual Report 2021
in 2016 dilution of return from this
2. I hereby undertake to restrain my role related consumption behaviors.
arising from non-public issuance
non-public 3. I hereby undertake not to conduct any investment and consumption which is of shares
issuance of shares not related to performance of duties with utilization of any company assets.
4. I hereby undertake that the remuneration system determined by the board of
directors or the remuneration and examination committee be linked to
implementation of the compensation of return measures.
5. In case that the Company adopts share based incentive plan in future I
hereby undertake that the exercise conditions of the incentive plan to be
announced by the Company be linked to implementation of the compensation
of return measures.
6. For the period from the date of this commitment to the date of completion of
this non-public issuance of shares if the CSRC makes other new regulatory
requirements on compensation of return measures and the commitment thereof
and in case that the above commitments cannot satisfy these new requirements
from the CSRC I hereby undertake to issue supplementary commitment in
compliance with the latest CSRC requirements.
7. As one of the principals responsible for compensation of return measures I
in case of break of the above commitments or refuse to perform the above
commitments agree to receive relevant punishment or to adopt relevant
administration measures according to the systems rules and regulations of the
CSRC and Shenzhen Stock Exchange.
1. Promise to truly accurately completely fairly and timely publish periodic reports disclose all
information that has significant impacts on the investors and accept the supervision and
management of China Securities Regulatory Commission and the Shenzhen Stock Exchange.Strictly
2. Make commitments that the Company will publicly clarify in time after knowing any
The Company 2016-10-12 Valid for long term implemente
information on any public communications media that may cause misleading influence on the
d
stock price
3. The Company’s directors supervisors and senior executives will listen carefully to the opinions
and criticisms of the public and never use any acquired inside information and other improper
104CHANGHONG MEILING CO.LTD. Annual Report 2021
means to directly or indirectly engage in the trading activities of the Company's stock.Perform the commitment promptly or not √ Yes □ No
If the commitment is overdue and has not
been fulfilled the specific reasons for
Not applicable
incomplete performance and the work plan
for next step shall be explained in detail
(ii) Concerning assets or project of the Company which has profit forecast and reporting period still in forecasting period explain reasons of reaching the
original profit forecast
□ Applicable √ Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.Disclosure date for specific approval opinion on fund occupation from CPA: 31 March 2022
Disclosure index for specific approval opinion on fund occupation from CPA: Juchao website: Juchao Website (www.cninfo.com.cn)-- Specific Explanation on Non-operational fund occupation
and its related capital transactions for year of 2021 of Changhong Meiling Co. Ltd.III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
105CHANGHONG MEILING CO.LTD. Annual Report 2021
V. Explanation from Board of Directors Supervisory Committee and Independent Directors (if applicable)
for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices accounting estimates or correction of significant
accounting errors compared with the financial report of the previous year
√ Applicable □ Not applicable
Found more details in 38. Change of major accounting policy and estimation under IV. Major accounting policy and estimation
carried in the Section XII. Financial Report
VII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
√ Applicable □ Not applicable
In the reporting period the consolidated financial statements of the Company cover 27 subsidiaries including Sichuan Changhong
Air-conditioner Co. Ltd Zhongshan Changhong Electric Co. Ltd. And Zhongke Meiling Cryogenic Technology Co. Ltd. etc.Compared with the previous year during the reporting period one enterprise is included in the consolidate scope that is Anhui
Ling'an Medical Equipment Co. Ltd. The subsidiaries Tai yuan Meiling Electrical Marketing Co. Ltd. Tianjin Meiling Electrical
Marketing Co. Ltd. and Guangzhou Meiling Electrical Marketing Co. Ltd. were decreased due to the merger.More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Equity in other entities” of “Section XFinancial Report”
VIII. Appointment and non-reappointment (dismissal) of CPA
Name of domestic accounting firm Shine Wing Certified Public Accountants (LLP)
Remuneration for domestic accounting firm (In 10 thousand yuan) 131
Continuous life of auditing service for domestic accounting firm 13-year
Name of domestic CPA Li Xifu Wang Xiaodong
Continuous life of auditing service for domestic CPA Li Xifu (5 years) Wang Xiaodong (2 year)
Name of foreign accounting firm (if applicable) N/A
Remuneration for foreign accounting firm (10 thousand yuan) (if
N/A
applicable)
Continuous life of auditing service for foreign accounting firm (if
N/A
applicable)
Name of foreign CPA (if applicable) N/A
Continuous life of auditing service for foreign CPA (if applicable) -
(i) Accounting firm appointed
(ii) Re-appointed accounting firms in this period
□Yes √ No
106CHANGHONG MEILING CO.LTD. Annual Report 2021
(iii) Appointment of internal control auditing accounting firm financial consultant or sponsor
√ Applicable □ Not applicable
In reporting period Shine Wing Certified Public Accountants (LLP) was appointed as audit institute of internal
control for the Company auditing charge for internal control amounting as 250000 yuan.IX. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
XI. Material lawsuits and arbitration of the Company
(i) Major Litigation and Arbitration Matters
□ Applicable √ Not applicable
During the reporting period the Company had no major litigation and arbitration matters.(ii) Other litigation matters
To maintain the independence and integrity of "Meiling" trademark and trade name the Company carried out
serials of lawsuits attribution and administration suits with “Meiling” trademark and corporate name concerned
Up to now in view of the infringement to the Company’s "Meiling" trademark and trade name false propaganda
and unfair competition in the market the Company has carried out many ways including administrative reports
criminal investigation and civil litigation to fight against infringement and counterfeiting behavior in the whole
country in order to stopped the infringing behavior.XII. Penalty and rectification
√ Applicable □ Not applicable
107CHANGHONG MEILING CO.LTD. Annual Report 2021
Investig
ation Disclosure
Name Type Causes Conclusions (if any) Disclosure index
penalty date
type
The YC-395EL (1) type equipment produced Zhongke Meiling
Investig
on 24 Oct. 2019 and sold on 13 Nov. 2019 by was ordered to
ated by Found more on
ZhongkeMeiling Zhongke Meiling did not file changes with the immediately correct
Cryogenic compet (Notice No.: Other original registration department; the the violations and 2021-7-16
Technology Co. ent 2021-056) released
Ltd. YC-395EL (2) type equipment did not apply was given a authorit on Juchao Website
for registration changes with the original forfeiture of 456500
ies
registration department yuan in total
Correction description:
√ Applicable □ Not applicable
After accepting the on-site inspection by the Anhui Medical Products Administration Zhongke Meiling has fully
realized the problem of not timely filing and registering changes in accordance with the relevant provisions of the
Regulations for the Supervision and Administration of Medical Devices and rectified the corresponding problems
as soon as possible. Zhongke Meiling recalled the products involved in a timely manner in accordance with the
Medical Device Recall Management Measures and immediately sealed samples of the recalled products and sent
them to a third-party authority for performance and safety testing. The inspection showed that the products met
the requirements. Up to now Zhongke Meiling has completed the registration change of the above products.At the same time the company and its subsidiaries will profoundly summarize the lessons of this administrative
penalty strictly abide by relevant laws and regulations further improve the standardized operation level and
prevent such incidents from happening again.XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable √ Not applicable
During the reporting period the Company and the controlling shareholders and the actual controllers have had
good reputation and there is no large amount due unliquidated debt sentenced by the court.XIV. Major related party transaction
(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
108CHANGHONG MEILING CO.LTD. Annual Report 2021
Whethe
Proport r over Availa
Related Clearing
Related ion in Trading limit the ble
Type of Content of Pricing transaction form for
Seri Relationshi transaction similar approved (in approve simila
Related party related related principl price (in 10 related Date of disclosure Index of disclosure
al p amount (in 10 transact 10 thousand d r
transaction transaction e thousand transactio
thousand Yuan) ions Yuan) limited marke
Yuan) n
(%) or not t price
(Y/N)
R-three-terminal
voltage regulator
Sichuan Controlling Juchao
integrated circuits Spot 2020-12-12; Website(www.cninfo.com.Changhong shareholder Commodity cn) Notice No.: 2020-097
1 R-insulated gate Marketin exchange 2020-12-30; 2021-7-13; Electric Co. and ultimate purchased g price 50571.94 50571.94 3.60% 60000.00 N Bank - 2021-7-29 and 2020-099 2020-107
bipolar transistors acceptance 2021-12-21 2021-050 2021-053 Ltd. controller 2021-058 2021-104 and
steel plates 2021-106
plastic parts etc.Other
enterprise Juchao
Changhong control 2020-12-12; Website(www.cninfo.com.Huayi under the Commodity Compressor Door Marketin cn) Notice No.: 2020-097 2 Compressor same purchased seal g price 41837.98 41837.98 2.98% 63150.00 N
Bank - 2020-12-30; 2021-7-13; acceptance 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-050 2021-053 shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control
Changhong under the Components Spot 2020-12-12;
Website(www.cninfo.com.
3 Mold Plastic same Commodity plastic parts and Marketin
cn) Notice No.: 2020-097
purchased lining accessories g price 72213.77 72217.32 5.14% 120000.00 N
exchange - 2020-12-30; 2021-7-13;
Tech. Co. controlling Bank 2021-7-29 and
2020-0992020-107
Ltd. shareholder etc. acceptance 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Commodity Base plate Marketin Spot 2020-12-12; Juchao 4 Changhong enterprise purchased assembly black 36519.86 36519.86 2.60% 60000.00 N exchange - 2020-12-30; 2021-7-13; Website(www.cninfo.com.Jijia Fine Co. control plate bracket etc.g price
Bank 2021-7-29 and cn) Notice No.: 2020-097
109CHANGHONG MEILING CO.LTD. Annual Report 2021
Ltd. under the acceptance 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the Spot 2020-12-12;
5 Package same Commodity
Packing boxes
foam fixed Marketin 10505.94 10505.94 0.75% 18000.00 N exchange - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
2020-0992020-107
Printing Co. controlling purchased support block etc. g price Bank 2021-7-29 and
Ltd. shareholder acceptance 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
Sichuan enterprise Juchao
Changhong control Printed board 2020-12-12; Website(www.cninfo.com.
6 Precision
under the
same Commodity machine insertion Marketin
cn) Notice No.: 2020-097
Electronics purchased machine paste g price 1689.38 1689.38 0.12% 5000.00 N
Bank - 2020-12-30; 2021-7-13;
controlling acceptance 2021-7-29 and
2020-0992020-107
Tech. Co. shareholder assembly 2021-12-21
2021-0502021-053
Ltd. 2021-058 2021-104 and and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the Commodity Marketin cn) Notice No.: 2020-097 7 International same purchased foodstuff g price 2.00 2.00 0.00% 8000.00 N
Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Hotel Co. controlling settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
081 Electronic under the 2020-12-12; cn) Notice No.: 2020-097
8 Group Co. same Commodity Power Marketin 4.95 4.95 0.00% 13000.00 N Bank - 2020-12-30; 2021-7-13; 2020-099 2020-107
Ltd. controlling purchased transformers g price acceptance 2021-7-29 and 2021-050 2021-053
shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
9 Guangdong Other Commodity Foam and carton Marketin 459.10 459.10 0.03% 13000.00 N Spot - 2020-12-12; Juchao
110CHANGHONG MEILING CO.LTD. Annual Report 2021
Changhong enterprise purchased g price exchange 2020-12-30; 2021-7-13; Website(www.cninfo.com.Electronics control Bank 2021-7-29 and cn) Notice No.: 2020-097
Co. Ltd. under the acceptance 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
Sichuan enterprise Juchao
Changhong control 2020-12-12; Website(www.cninfo.com.
10 Intelligent
under the Commodity cn) Notice No.: 2020-097
Manufacturing same purchased Circuit boards
Marketin 2.86 2.86 0.00% 8000.00 N Cash g price settlement -
2020-12-30;2021-7-13;
2021-7-29 and 2020-099 2020-107
Technology controlling 2021-050 2021-053
Co. Ltd. shareholder
2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control under the 2020-12-12;
Website(www.cninfo.com.
11 Hongwei same Commodity
cn) Notice No.: 2020-097
Technology purchased RTU collectors
Marketin
g price 0.32 0.32 0.00% 13000.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Hefei control 2020-12-12; Website(www.cninfo.com.Changhong under the Commodity Inverter integrated cn) Notice No.: 2020-097 12 Industrial Co. same purchased board control
Marketin
g price 942.42 942.42 0.07% 13000.00 N
Bank
acceptance -
2020-12-30;2021-7-13;2020-0992020-107
Ltd. controlling board
2021-7-29 and
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Sichuan enterprise Website(www.cninfo.com.Changhong control 2020-12-12;
13 New Energy under the Commodity Marketin
cn) Notice No.: 2020-097
purchased batteries g price 2.70 2.70 0.00% 8000.00 N
Cash 2020-12-30; 2021-7-13;
Technology same settlement
- 2021-7-29 and 2020-099 2020-107 2021-050 2021-053
Co. Ltd. controlling 2021-12-21 2021-058 2021-104 and
shareholder 2021-106
and ultimate
111CHANGHONG MEILING CO.LTD. Annual Report 2021
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Zhiyijia under the Commodity Air conditioner Marketin cn) Notice No.: 2020-097 14 Network same purchased LCD TV g price 1218.16 1218.16 0.09% 13000.00 N
Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Technology controlling settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.International under the 2020-12-12; cn) Notice No.: 2020-097
15 Holdings same Commodity Television Marketin 1017.63 1017.63 0.07% 10000.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
(Hong Kong) controlling purchased g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Speech Spot 2020-12-12; Website(www.cninfo.com.Changhong under the
16 Electronic same Commodity components for Marketin exchange 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
purchased R&D electronic g price 2376.25 2376.25 0.17% 6000.00 N Bank - 2021-7-29 and 2020-099 2020-107 Products Co. controlling components acceptance 2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Jiahong under the 17 same Commodity foodstuff Marketin 0.60 0.60 0.00% 8000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Industrial Co. purchased g price settlement 2021-7-29 and 2020-099 2020-107
Ltd. controlling 2021-050 2021-053 shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Sichuan Ailian enterprise Internet access Spot 2020-12-12; Website(www.cninfo.com.
18 Science & control Commodity modules Marketin 2519.71 2519.71 0.18% 6000.00 N exchange - 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 Technology under the purchased electronic g price Bank 2021-7-29 and 2020-099 2020-107
Co. Ltd. same components etc. acceptance 2021-12-21 2021-050 2021-053
controlling 2021-058 2021-104 and
112CHANGHONG MEILING CO.LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Spot 2020-12-12; Website(www.cninfo.com.Aichuang under the
19 Science & same Commodity Inverter integrated Marketin
cn) Notice No.: 2020-097
purchased board R-IC etc. g price 10843.83 10843.83 0.77% 15000.00 N
exchange 2020-12-30; 2021-7-13;
Technology controlling Bank
- 2021-7-29 and 2020-099 2020-107 2021-050 2021-053
Co. Ltd. shareholder acceptance 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Hunan control Spot 2020-12-12; Website(www.cninfo.com.Grand-Pro under the
20 Intelligent same Commodity Floor mopping Marketin exchange
cn) Notice No.: 2020-097
purchased robot g price 152.35 152.35 0.01% 1500.00 N Bank -
2020-12-30;2021-7-13;
Tech. controlling 2021-7-29 and
2020-0992020-107
acceptance 2021-12-21 2021-050 2021-053 Company shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Service Exp. under the 2020-12-12;
21 Appliance same Commodity Air conditioner Marketin
cn) Notice No.: 2020-097
purchased spare parts g price 5.00 5.00 0.00% 13000.00 N
Cash - 2020-12-30; 2021-7-13;
Service Chain controlling settlement 2021-7-29 and
2020-0992020-107
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Shuttle Juchao
Changhong Controlling transportation fee 2020-12-12; Website(www.cninfo.com.
22 Electronics shareholder Accept labor employee medical Marketin 168.13 168.13 0.12% 8000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Holding and ultimate service examination fees g price settlement 2021-7-29 and 2020-099 2020-107
Group Co. controller and training fees 2021-12-21 2021-050 2021-053
Ltd. etc. 2021-058 2021-104 and 2021-106
Sichuan Controlling Training fees
Juchao
2020-12-12; Website(www.cninfo.com.
23 Changhong shareholder Accept labor
technical service
fees inspection Marketin 574.57 574.57 0.40% 5600.00 N Cash - 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 Electric Co. and ultimate service g price settlement 2021-7-29 and 2020-099 2020-107
Ltd. controller and certification fees etc. 2021-12-21 2021-050 2021-053
2021-058 2021-104 and
113CHANGHONG MEILING CO.LTD. Annual Report 2021
Other
enterprise
Sichuan control Transportation
Juchao
costs storage and 2020-12-12; Website(www.cninfo.com.Changhong under the
24 Minsheng same Accept labor handling charges Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
service freight and g price 58526.38 58526.38 41.06% 60000.00 N settlement - 2021-7-29 and 2020-099 2020-107 Logistics Co. controlling miscellaneous 2021-12-21 2021-050 2021-053 Ltd. shareholder charges etc. 2021-058 2021-104 and and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the cn) Notice No.: 2020-097
25 Mold Plastic same Accept labor service Mold changes fees
Marketin 12.72 12.72 0.01% 5600.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Tech. Co. controlling g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control
Service Exp. under the Three packages 2020-12-12;
Website(www.cninfo.com.Accept labor equipment Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 26 Appliance same service repairmiscellaneo g price 25071.81 25071.81 17.59% 35000.00 N settlement - 2021-7-29 and 2020-099 2020-107 Service Chain controlling us fees etc. 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other Software usage
enterprise Juchao
fee service
Sichuan control Website(www.cninfo.com.Hongxin under the
2020-12-12;
Accept labor supporting fee and Marketin cn) Notice No.: 2020-097 27 Software Co. same service g price 1085.67 1085.67 0.76% 5600.00 N
Cash - 2020-12-30; 2021-7-13;
controlling information settlement 2021-7-29 and
2020-0992020-107
Ltd. shareholder 2021-12-21
2021-0502021-053
service fee 2021-058 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Guangdong Labor insurance enterprise
Changhong Accept labor fee service
2020-12-12; Website(www.cninfo.com.
28 control support fee Marketin 112.83 112.83 0.08% 5600.00 N Cash - 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 Electronics under the service network service g price settlement 2021-7-29 and 2020-099 2020-107 Co. Ltd. same fee etc. 2021-12-21 2021-050 2021-053
controlling 2021-058 2021-104 and
114CHANGHONG MEILING CO.LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Jiahong under the Accept labor Meals property Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 29 Industrial Co. same management fees 389.52 389.52 0.27% 8000.00 N - 2020-099 2020-107
Ltd. controlling
service etc. g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the cn) Notice No.: 2020-097
30 International same Accept labor Meetings fee Marketinservice accommodation g price 21.78 21.78 0.02% 8000.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107 Hotel Co. controlling
Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.Orion.PDP.Co. under the
2020-12-12;
Accept labor Three-packages Marketin cn) Notice No.: 2020-097 31 ltd same service fee g price 12.53 12.53 0.01% 8000.00 N
Cash - 2020-12-30; 2021-7-13;
controlling settlement 2021-7-29 and
2020-0992020-107
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the Accept labor cn) Notice No.: 2020-097 32 International same service Travel expenses
Marketin
g price 2.66 2.66 0.00% 8000.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107 Travel Service controlling
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Dormitory facility 2020-12-12; Juchao
33 Changhong enterprise Accept labor and equipment Marketinservice g price 70.72 70.72 0.05% 8000.00 N
Cash - 2020-12-30; 2021-7-13; Website(www.cninfo.com.Property control service fees settlement 2021-7-29 and cn) Notice No.: 2020-097
Services Co. under the property 2021-12-21 2020-099 2020-107
115CHANGHONG MEILING CO.LTD. Annual Report 2021
Ltd. same management fees 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.
34 Hongwei
under the
same Accept labor Inspection & Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Technology service certification fees g price 152.19 152.19 0.11% 5600.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Marketing support 2020-12-12; Website(www.cninfo.com.Zhiyijia under the
35 Network same Accept labor fees advertising Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Technology controlling service fees and operating g price
-46.57 -46.57 -0.03% 5600.00 N settlement - 2021-7-29 and 2020-099 2020-107
expenses 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
Sichuan enterprise Juchao
Changhong control Information Website(www.cninfo.com.Intelligent under the consulting fees
2020-12-12;
Accept labor Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 36 Manufacturing same service labor dispatch fee g price 74.86 74.86 0.05% 8000.00 N - 2020-099 2020-107
Technology controlling and equipment
settlement 2021-7-29 and 2021-050 2021-053
Co. Ltd. shareholder repair fees
2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the Accept labor Equipment repair
2020-12-12;
Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 37 Jijia Fine Co. same fees and labor 1.18 1.18 0.00% 5600.00 N - 2020-099 2020-107
Ltd. controlling
service dispatch fee g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
38 Sichuan Other Accept labor Environmental Marketinservice fees g price 5.66 5.66 0.00% 8000.00 N
Cash - 2020-12-12; Juchao
Changhong enterprise settlement 2020-12-30; 2021-7-13; Website(www.cninfo.com.
116CHANGHONG MEILING CO.LTD. Annual Report 2021
Gerun control 2021-7-29 and cn) Notice No.: 2020-097
Environmental under the 2021-12-21 2020-099 2020-107
Protection same 2021-050 2021-053
Tech. Co. Ltd. controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control
Changhong under the 2020-12-12;
Website(www.cninfo.com.cn) Notice No.: 2020-097
39 Electronic same Accept labor Marketin Cash 2020-12-30; 2021-7-13;
Products Co. controlling service
Labor dispatch fee g price 12.70 12.70 0.01% 5600.00 N settlement - 2021-7-29 and 2020-099 2020-107
Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control
Aichuang under the Labor dispatch 2020-12-12;
Website(www.cninfo.com.
40 Science & same Accept labor fee R&D test Marketin 13.14 13.14 0.01% 8000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
2020-0992020-107
Technology controlling service fees g price settlement 2021-7-29 and 2021-050 2021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangyuan control 2020-12-12; Website(www.cninfo.com.Changhong under the cn) Notice No.: 2020-097
41 Electronic same Accept labor service Labor dispatch fee
M arketin Cash 2020-12-30; 2021-7-13;
Technology controlling g price
102.31 102.31 0.07% 5600.00 N settlement - 2021-7-29 and 2020-099 2020-107 2021-050 2021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.International under the 2020-12-12; cn) Notice No.: 2020-097
42 Holdings same Accept labor Marketing Marketin 598.87 598.87 0.42% 5600.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
(Hong Kong) controlling service supports fees g price settlement 2021-7-29 and 2021-050 2021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
117CHANGHONG MEILING CO.LTD. Annual Report 2021
Other
enterprise Technical development Juchao
Sichuan control under the service fee 2020-12-12;
Website(www.cninfo.com.
43 Qiruik same Accept labor instrument repair Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Technology controlling service fees and g price
598.09 598.09 0.42% 8000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd inspection and 2021-12-21 2021-050 2021-053 shareholder
and ultimate certification fees
2021-058 2021-104 and
controller etc.Juchao
Sichuan Controlling 2020-12-12; Website(www.cninfo.com.
44 Changhong shareholder Purchase of
Electricity steam Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097
Electric Co. and ultimate fuel power water compressed g price 1997.74 1997.74 0.14% 60000.00 N air settlement
- 2021-7-29 and 2020-099 2020-107
Ltd. controller 2021-12-21 2021-050 2021-053 2021-058 2021-104 and
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.Huayi under the
2020-12-12; cn) Notice No.: 2020-097
45 Compressor same
Purchase of Marketin Cash 2020-12-30; 2021-7-13;
controlling fuel power
Steam fee g price 45.17 45.17 0.00% 63150.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangdong control 2020-12-12; Website(www.cninfo.com.Changhong under the 46 same Purchase of
Electricity Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097
Electronics controlling fuel power
water compressed
air g price
120.47 120.47 0.01% 13000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Hefei control Website(www.cninfo.com.Changhong under the 2020-12-12; cn) Notice No.: 2020-097
47 New Energy same Purchase of Electricity fee Marketin 34.49 34.49 0.00% 13000.00 N Cash - 2020-12-30; 2021-7-13;
Technology controlling fuel power g price settlement 2021-7-29 and
2020-0992020-107
2021-0502021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
118CHANGHONG MEILING CO.LTD. Annual Report 2021
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the Purchase of Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 48 Property same fuel power Electricity fee g price 3.03 3.03 0.00% 8000.00 N settlement - 2021-7-29 and 2020-099 2020-107 Services Co. controlling 2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Juchao
Air conditioners
Sichuan Controlling Spot 2020-12-12; Website(www.cninfo.com.
49 Changhong shareholder Sales of
waste materials M arketin exchange 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097
Electric Co. and ultimate goods 426.60 426.60 0.02% 8000.00 N - 2020-099 2020-107 small appliances g price Bank 2021-7-29 and
Ltd. controller acceptance 2021-12-21 2021-050 2021-053
2021-058 2021-104 and
Sichuan Juchao
Changhong Controlling 2020-12-12; Website(www.cninfo.com.Electronics shareholder Sales of Car refrigerator Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 50 Holding and ultimate goods small appliances g price 18.06 18.06 0.00% 3100.00 N settlement - 2021-7-29 and 2020-099 2020-107
Group Co. controller 2021-12-21 2021-050 2021-053
Ltd. 2021-058 2021-104 and 2021-106
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.under the Spot 2020-12-12; cn) Notice No.: 2020-097
51 Changhong Sales of Steel plate base Marketin exchange 2020-12-30; 2021-7-13; Jijia Fine Co. same controlling goods plate bracket etc. g price
4867.94 4867.94 0.28% 8000.00 N Bank - 2021-7-29 and 2020-099 2020-107
Ltd. shareholder acceptance 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Refrigerator and Spot 2020-12-12; Website(www.cninfo.com.under the washing machine cn) Notice No.: 2020-097
52 Changhong same Sales of Marketin exchange 2020-12-30; 2021-7-13; Mold Plastic controlling goods
components g price 19808.97 19808.97 1.14% 32000.00 N Bank - 2021-7-29 and 2020-099 2020-107
Tech. Co. Ltd. accessories small acceptance 2021-12-21 2021-050 2021-053 shareholder appliances etc. 2021-058 2021-104 and
and ultimate 2021-106
controller
53 Lejiayi Chain Other
Management enterprise Sales of
Air conditioner Marketin 53.10 53.10 0.00% 15000.00 N Cash - 2020-12-12; Juchao Refrigerator 2020-12-30; 2021-7-13; Website(www.cninfo.com.
119CHANGHONG MEILING CO.LTD. Annual Report 2021
Co. Ltd. control goods freezer small g price settlement 2021-7-29 and cn) Notice No.: 2020-097
under the appliances etc. 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Washing machine Website(www.cninfo.com.Zhiyijia under the Spot 2020-12-12;
54 Network same Sales of
freezers air cn) Notice No.: 2020-097
conditioners Marketin exchange 2020-12-30; 2021-7-13;
Technology controlling goods small appliances g price
650051.03 650051.03 37.51% 700000.00 N Bank - 2021-7-29 and 2020-099 2020-107 2021-050 2021-053
Co. Ltd. shareholder etc. acceptance 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control
Changhong under the Kitchen and 2020-12-12;
Website(www.cninfo.com.Sales of Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 55 Device same
Technology controlling goods
bathroom small g price 0.08 0.08 0.00% 15000.00 N settlement - 2021-7-29 and 2020-099 2020-107 appliances 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control
Changhong under the Cartons liners air 2020-12-12;
Website(www.cninfo.com.
56 Minsheng same Sales of conditioners Marketin 27.05 27.05 0.00% 15000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
goods g price settlement 2021-7-29 and 2020-099 2020-107 Logistics Co. controlling refrigerators etc. 2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Air Website(www.cninfo.com.Service Exp. under the Sales of conditionersinver
2020-12-12; cn) Notice No.: 2020-097
57 Appliance same ter integrated Marketin 655.49 655.49 0.04% 15000.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Service Chain controlling goods boards g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder components etc. 2021-058 2021-104 and
and ultimate 2021-106
controller
120CHANGHONG MEILING CO.LTD. Annual Report 2021
Other
enterprise Juchao
Hefei control Website(www.cninfo.com.Changhong under the
2020-12-12;
58 same Sales of Micro controllers Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Industrial Co. controlling goods etc. g price
7.89 7.89 0.00% 15000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Ltd. 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the
Air conditioner 2020-12-12;
59 same Sales of Kitchen and Marketin 6.63 6.63 0.00% 15000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Real Estate goods bathroom small g price settlement 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling appliances 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the 2020-12-12;
60 Network same Sales of Car refrigerator Marketin
cn) Notice No.: 2020-097
0.39 0.39 0.00% 15000.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Technology controlling goods g price settlement 2021-7-29 and 2021-050 2021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangdong control 2020-12-12; Website(www.cninfo.com.Changhong under the Sales of Air conditioner cn) Notice No.: 2020-097 61 Electronics same goods kitchen and
Marketin
g price 32.01 32.01 0.00% 15000.00 N
Cash 2020-12-30; 2021-7-13;
settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling bathroom shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Juchao
Changhong enterprise Equipment 2020-12-12; Website(www.cninfo.com.Intelligent control 62 Sales of installation and Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Manufacturing under the goods commissioning g price 1.41 1.41 0.00% 3100.00 N settlement - 2021-7-29 and 2020-099 2020-107
Technology same accessories 2021-12-21 2021-050 2021-053
Co. Ltd. controlling 2021-058 2021-104 and
shareholder 2021-106
121CHANGHONG MEILING CO.LTD. Annual Report 2021
and ultimate
controller
Other
enterprise Juchao
Changhong control under the 2020-12-12;
Website(www.cninfo.com.Huayi Sales of Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 63 Compressor same goods Air conditioner g price 3.76 3.76 0.00% 63150.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the Sales of Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 64 Power Source same goods Air conditioner g price 16.99 16.99 0.00% 15000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
081 Electronic under the 2020-12-12; Sales of cn) Notice No.: 2020-097 65 Group Co. same goods Air conditioner
Marketin 0.08 0.08 0.00% 15000.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Ltd. controlling g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangyuan control
Changhong under the Air conditioner、 2020-12-12;
Website(www.cninfo.com.Sales of Kitchen and Marketin cn) Notice No.: 2020-097 66 Electronic same goods bathroom small g price 15.43 15.43 0.00% 15000.00 N
Cash 2020-12-30; 2021-7-13;
Technology controlling settlement
- 2021-7-29 and 2020-099 2020-107 2021-050 2021-053
Co. Ltd. shareholder appliances 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Other 2020-12-12; Juchao
Hongxin enterprise Sales of Air conditioner Marketin Website(www.cninfo.com.67 Software Co. control goods small appliances g price 12.11 12.11 0.00% 15000.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and cn) Notice No.: 2020-097
Ltd. under the 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
122CHANGHONG MEILING CO.LTD. Annual Report 2021
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
PT.CHANGH control 2020-12-12; Website(www.cninfo.com.ONGELECTR under the 68 same Sales of
cn) Notice No.: 2020-097
ICINDONESI Air conditioner
Marketin 27.80 27.80 0.00% 15000.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
A controlling
goods g price settlement 2021-7-29 and
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.CHANGHON under the 2020-12-12; cn) Notice No.: 2020-097
69 G(HK)TRADI same Sales of goods Air conditioner
Marketin
g price 29876.00 29876.00 1.72% 170000.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107 NGLIMITED controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
CHANGHON control Website(www.cninfo.com.GELECTRIC( under the
Refrigerator 2020-12-12;
Sales of freezers washing Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 70 AUSTRALIA) same controlling goods machines and g price
12752.56 12752.56 0.74% 170000.00 N settlement - 2021-7-29 and 2020-099 2020-107
PTY.LTD. accessories 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control 2020-12-12; Website(www.cninfo.com.Orion.PDP.Co. under the cn) Notice No.: 2020-097 71 ltd same
Sales of Refrigerator and Marketin Cash 2020-12-30; 2021-7-13;
controlling goods components g price
3967.89 3967.89 0.23% 4500.00 N settlement - 2021-7-29 and 2020-099 2020-107
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
ChanghongEu Other
72 ropeElectrics.r Sales of Marketin Cash
2020-12-12; Juchao
enterprise Refrigerator 7082.16 7082.16 0.41% 8000.00 N - 2020-12-30; 2021-7-13; Website(www.cninfo.com..o goods g price settlement control 2021-7-29 and cn) Notice No.: 2020-097
123CHANGHONG MEILING CO.LTD. Annual Report 2021
under the 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
CHANGHON control Website(www.cninfo.com.GELECTRIC under the Refrigerator
2020-12-12;
73 same Sales of Marketin
cn) Notice No.: 2020-097
MIDDLEEAS goods freezers and g price 349.94 349.94 0.02% 15000.00 N
Cash - 2020-12-30; 2021-7-13;
controlling accessories settlement 2021-7-29 and
2020-0992020-107
TFZCO shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Refrigerator 2020-12-12; Website(www.cninfo.com.International under the Sales of freezers Air Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 74 Holdings same goods conditioner g price 16426.96 16426.96 0.95% 35000.00 N (Hong Kong) controlling settlement
- 2021-7-29 and 2020-099 2020-107 2021-050 2021-053
Co. Ltd. shareholder kitchen ware etc. 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Photocouplers 2020-12-12; Website(www.cninfo.com.Aichuang under the
75 Science & same Sales of refrigerant Marketin 23.03 23.03 0.00% 3100.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
goods integrated circuits g price settlement 2021-7-29 and 2020-099 2020-107 Technology controlling 2021-050 2021-053
Co. Ltd. shareholder etc. 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Hongmofang under the 2020-12-12; Sales of Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 76 Network same Car refrigerator
Technology controlling goods g price
0.49 0.49 0.00% 15000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
77 Changhong Other Sales of Air conditioner Marketin 123.88 123.88 0.01% 63150.00 N Bank - 2020-12-12; Juchao
124CHANGHONG MEILING CO.LTD. Annual Report 2021
Grand-Pro enterprise goods g price acceptance 2020-12-30; 2021-7-13; Website(www.cninfo.com.Technology control 2021-7-29 and cn) Notice No.: 2020-097
Co. Ltd. under the 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
Sichuan enterprise Juchao
Changhong control 2020-12-12; Website(www.cninfo.com.Jiechuang under the Sales of cn) Notice No.: 2020-097 78 Lithium same Air conditioner Marketin 126.35 126.35 0.01% 3100.00 N Bank - 2020-12-30; 2021-7-13; 2020-099 2020-107
Battery controlling goods g price acceptance 2021-7-29 and 2021-050 2021-053
Technology shareholder 2021-12-21 2021-058 2021-104 and
Co. Ltd. and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Ansify under the
2020-12-12;
79 same Sales of Air conditioner Marketin 12.51 12.51 0.00% 3100.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Technology goods g price settlement 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Juchao
Changhong Controlling 2020-12-12; Website(www.cninfo.com.
80 Electronics shareholder provide Labor costs Marketin -1.08 -1.08 -0.02% 3100.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Holding and ultimate labor g price settlement 2021-7-29 and 2020-099 2020-107
Group Co. controller 2021-12-21 2021-050 2021-053
Ltd. 2021-058 2021-104 and 2021-106
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the 81 same provide Labor costs Marketin 19.37 19.37 0.41% 5600.00 N Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Mold Plastic labor g price settlement - 2021-7-29 and 2020-099 2020-107
Tech. Co. Ltd. c ontrolling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
82 Sichuan Other provide Labor costs Marketin 27.14 27.14 0.57% 5600.00 N Cash - 2020-12-12; Juchao
125CHANGHONG MEILING CO.LTD. Annual Report 2021
Changhong enterprise labor g price settlement 2020-12-30; 2021-7-13; Website(www.cninfo.com.Jijia Fine Co. control 2021-7-29 and cn) Notice No.: 2020-097
Ltd. under the 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Aichuang under the 2020-12-12; cn) Notice No.: 2020-097
83 Science & same provide Technical service Marketin 198.33 198.33 4.20% 3100.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Technology controlling labor fee Labor costs g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Huafeng under the
84 Enterprise same provide
System
development Marketin 1.32 1.32 0.03% 3100.00 N Cash
cn) Notice No.: 2020-097
labor g price settlement -
2020-12-30;2021-7-13;
Group Co. controlling service fee 2021-7-29 and
2020-0992020-107
2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Zhiyijia under the 2020-12-12; provide Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 85 Network same labor Service fee g price 2.23 2.23 0.05% 5600.00 N settlement - 2021-7-29 and 2020-099 2020-107 Technology controlling
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Juchao
Sichuan Controlling 2020-12-12; Website(www.cninfo.com.Changhong shareholder provide Marketin cn) Notice No.: 2020-097 86 Electric Co. and ultimate labor Labor costs g price 417.71 417.71 8.84% 5600.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107
Ltd. controller 2021-12-21 2021-050 2021-053 2021-058 2021-104 and
87 Sichuan Other provide Technical service Marketin 9.06 9.06 0.19% 5600.00 N Cash - 2020-12-12; Juchao
126CHANGHONG MEILING CO.LTD. Annual Report 2021
Changhong enterprise labor fee g price settlement 2020-12-30; 2021-7-13; Website(www.cninfo.com.Device control 2021-7-29 and cn) Notice No.: 2020-097
Technology under the 2021-12-21 2020-099 2020-107
Co. Ltd. same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the
88 Network same provide Labor costs Marketin
cn) Notice No.: 2020-097
labor g price 61.03 61.03 1.29% 5600.00 N
Cash
settlement -
2020-12-30;2021-7-13;
2021-7-29 and 2020-099 2020-107 Technology controlling 2021-050 2021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.Huayi under the
2020-12-12;
provide Marketin cn) Notice No.: 2020-097 89 Compressor same labor Labor costs g price 124.57 124.57 2.64% 63150.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the
90 Minsheng same provide Labor costs Marketin 26.20 26.20 0.55% 5.600.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
labor g price settlement 2021-7-29 and 2020-099 2020-107 Logistics Co. controlling 2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other Juchao
enterprise Website(www.cninfo.com.Sichuan Ailian control 2020-12-12;
91 Technology under the provide Labor costs Marketin 0.01 0.01 0.00% 3100.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Co. Ltd. same labor g price settlement 2021-7-29 and
2020-0992020-107
2021-0502021-053
controlling 2021-12-21 2021-058 2021-104 and
shareholder 2021-106
and ultimate
127CHANGHONG MEILING CO.LTD. Annual Report 2021
controller
Other
enterprise Juchao
Hefei control 2020-12-12; Website(www.cninfo.com.
92 Changhong
under the
same provide
cn) Notice No.: 2020-097
Industrial Co. labor Labor costs
Marketin
g price 0.07 0.07 0.00% 5600.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107
Ltd. controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Service Exp. under the 2020-12-12;
93 Appliance same provide Labor costs Marketin
cn) Notice No.: 2020-097
0.72 0.72 0.02% 5600.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Service Chain controlling labor g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the 2020-12-12;
94 Electronic same provide Technical service Marketin
cn) Notice No.: 2020-097
labor fee g price 9.43 9.43 0.20% 3100.00 N
Cash - 2020-12-30; 2021-7-13;
Technology controlling settlement 2021-7-29 and
2020-0992020-107
2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the 2020-12-12;
95 International same provide Maintenance fee Marketin
cn) Notice No.: 2020-097
labor g price 7.94 7.94 0.17% 3100.00 N
Cash
settlement -
2020-12-30;2021-7-13;2020-0992020-107
Hotel Co. controlling 2021-7-29 and
Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other Juchao
081 Electronic enterprise 2020-12-12; Website(www.cninfo.com.
96 Group Co. control provide Maintenance fee Marketin 4.72 4.72 0.10% 5600.00 N Cash - 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097
Ltd. under the labor g price settlement 2021-7-29 and 2020-099 2020-107
same 2021-12-21 2021-050 2021-053
controlling 2021-058 2021-104 and
128CHANGHONG MEILING CO.LTD. Annual Report 2021
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the 2020-12-12; provide Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 97 Electronic same labor Labor costs 1.10 1.10 0.02% 5600.00 N - 2020-099 2020-107 Products Co. controlling g price settlement 2021-7-29 and
Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.
98 Hongwei
under the
same provide
cn) Notice No.: 2020-097
Technology labor Service fee
Marketin
g price 0.14 0.14 0.00% 5600.00 N
Cash - 2020-12-30; 2021-7-13;
controlling settlement 2021-7-29 and
2020-0992020-107
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Guangdong control Website(www.cninfo.com.Changhong under the
2020-12-12;
99 same provide Installation fee Marketin
cn) Notice No.: 2020-097
Electronics labor Labor costs g price 49.10 49.10 1.04% 5600.00 N
Cash 2020-12-30; 2021-7-13;
controlling settlement
- 2021-7-29 and 2020-099 2020-107
Co. Ltd. 2021-050 2021-053 shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the
100 Precision same provide Labor costs Marketin 0.51 0.51 0.01% 5600.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Electronics controlling labor g price settlement 2021-7-29 and
2020-0992020-107
2021-0502021-053
Tech. Co. Ltd. s hareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Other 2020-12-12; Juchao
101 Changhong enterprise provide Labor costs Marketinlabor g price 0.94 0.94 0.02% 3100.00 N
Cash 2020-12-30; 2021-7-13; Website(www.cninfo.com.Gerun control settlement
- 2021-7-29 and cn) Notice No.: 2020-097
Environmental under the 2021-12-21 2020-099 2020-107
129CHANGHONG MEILING CO.LTD. Annual Report 2021
Protection same 2021-050 2021-053
Tech. Co. Ltd. controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Changhong control 2020-12-12; Website(www.cninfo.com.Grand-Pro under the 102 same provide
cn) Notice No.: 2020-097
Technology labor Installation fee
Marketin
g price 116.53 116.53 2.47% 63150.00 N
Bank - 2020-12-30; 2021-7-13;
controlling acceptance 2021-7-29 and
2020-0992020-107
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Yuanxin control 2020-12-12; Website(www.cninfo.com.Financial under the provide Service fee of 103 same Financial Marketin 49.34 49.34 1.04% 65000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Lease Co. controlling labor
statement g price settlement 2021-7-29 and
2020-0992020-107
Ltd. 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the 2020-12-12; provide Technical service Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 104 Property same labor fee g price 8.58 8.58 0.18% 3100.00 N Services Co. controlling settlement
- 2021-7-29 and 2020-099 2020-107
2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Ansify under the
2020-12-12;
105 same provide Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Technology labor Installation fee g price 11.09 11.09 0.23% 3100.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-050 2021-053 shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
106 Sichuan Other provide Installation fee Marketin 108.90 108.90 2.31% 3100.00 N Bank - 2020-12-12; Juchao
Changhong enterprise labor g price acceptance 2020-12-30; 2021-7-13; Website(www.cninfo.com.
130CHANGHONG MEILING CO.LTD. Annual Report 2021
Jiechuang control 2021-7-29 and cn) Notice No.: 2020-097
Lithium under the 2021-12-21 2020-099 2020-107
Battery same 2021-050 2021-053
Technology controlling 2021-058 2021-104 and
Co. Ltd. shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Guangdong control 2020-12-12; Website(www.cninfo.com.
107 Changhong
under the
same Provide fuel Water Electricity Marketin
cn) Notice No.: 2020-097
Electronics power fee gas fee g price 1.62 1.62 0.00% 15000.00 N
Cash - 2020-12-30; 2021-7-13; settlement 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the
108 Minsheng same Provide fuel Water Electricity Marketin 5.77 5.77 0.00% 15000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
power fee g price settlement 2021-7-29 and 2020-099 2020-107 Logistics Co. controlling 2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.
109 Changhong
under the
same Provide fuel Water fee Marketin 15.06 15.06 0.00% 15000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Jijia Fine Co. controlling power Electricity fee g price settlement 2021-7-29 and
2020-0992020-107
Ltd. 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the Provide fuel Water fee Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 110 Mold Plastic same power Electricity fee g price 700.84 700.84 0.04% 15000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Tech. Co. Ltd. c ontrolling Steam fee shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
131CHANGHONG MEILING CO.LTD. Annual Report 2021
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Zhiyijia under the Provide fuel Water fee Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 111 Network same 5.00 5.00 0.00% 15000.00 N - 2020-099 2020-107
Technology controlling power Electricity fee g price settlement 2021-7-29 and 2021-050 2021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the 2020-12-12; Provide fuel Water fee Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 112 Precision same 1.69 1.69 0.00% 15000.00 N - 2020-099 2020-107
Electronics controlling power Electricity fee g price settlement 2021-7-29 and 2021-050 2021-053
Tech. Co. Ltd. s hareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the 2020-12-12; Provide fuel Water fee cn) Notice No.: 2020-097 113 Device same power Electricity fee
Marketin
g price 71.03 71.03 0.00% 15000.00 N
Cash 2020-12-30; 2021-7-13;
settlement - 2021-7-29 and 2020-099 2020-107 Technology controlling compressed air
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control 2020-12-12; Website(www.cninfo.com.International under the
114 Holdings same Provide fuel Water fee Marketin Cash 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
(Hong Kong) controlling power Electricity fee g price
10.13 10.13 0.00% 15000.00 N settlement - 2021-7-29 and 2020-099 2020-107 2021-050 2021-053
Co. Ltd. shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Other Juchao
Guangdong enterprise 2020-12-12; Website(www.cninfo.com.control Rental to
115 Changhong related Second floor Marketin 5.09 5.09 0.04% 5000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Electronics under the living area for rent g price settlement 2021-7-29 and 2020-099 2020-107
Co. Ltd. same parties 2021-12-21 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
132CHANGHONG MEILING CO.LTD. Annual Report 2021
and ultimate
controller
Other
enterprise Juchao
Hefei control 2020-12-12; Website(www.cninfo.com.Changhong under the Rental to cn) Notice No.: 2020-097 116 Industrial Co. same related
Rental apartment Marketin
warehouses g price 27.15 27.15 0.20% 5000.00 N
Cash
settlement -
2020-12-30;2021-7-13;
2021-7-29 and 2020-099 2020-107
Ltd. controlling parties 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Aichuang under the Rental to 2020-12-12;
117 Science & same related Warehouses for Marketin
cn) Notice No.: 2020-097
rent g price 4.94 4.94 0.04% 3100.00 N
Cash - 2020-12-30; 2021-7-13;
Technology controlling parties settlement 2021-7-29 and
2020-0992020-107
2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.Sichuan Ailian under the Rental to 2020-12-12; cn) Notice No.: 2020-097
118 Technology same related Warehouses for Marketin Cash 2020-12-30; 2021-7-13;
Co. Ltd. controlling parties rent g price
0.33 0.33 0.00% 3100.00 N settlement - 2021-7-29 and 2020-099 2020-107
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control under the Rental to 2020-12-12;
Website(www.cninfo.com.Hongwei Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 119 Technology same related Lease of plant 4.73 4.73 0.03% 5000.00 N - 2020-099 2020-107
Co. Ltd. controlling parties
g price settlement 2021-7-29 and
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Other Juchao
Huafeng enterprise Rental to
2020-12-12;
120 Enterprise related Meeting room for Marketin Cash 2020-12-30; 2021-7-13;
Website(www.cninfo.com.control
Group Co. parties rent g price
0.09 0.09 0.00% 3100.00 N settlement - 2021-7-29 and cn) Notice No.: 2020-097
under the 2021-12-21 2020-099 2020-107 Ltd. same 2021-050 2021-053
133CHANGHONG MEILING CO.LTD. Annual Report 2021
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Service Exp. under the Rental to 2020-12-12;
121 Appliance same related Apartments and Marketin 19.26 19.26 0.14% 5000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
2020-0992020-107
Service Chain controlling parties offices for rent g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Juchao
Sichuan Controlling 2020-12-12; Website(www.cninfo.com.
122 Changhong shareholder
Rental to Rental of Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097
Electric Co. and ultimate related equipment and g price 302.32 302.32 2.23% 5000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Ltd. controller parties plants 2021-12-21 2021-050 2021-053 2021-058 2021-104 and
Other
enterprise Juchao
Sichuan control under the Rental to Rental apartment 2020-12-12;
Website(www.cninfo.com.
123 Changhong same related warehouses. Plant Marketin 518.35 518.35 3.82% 5000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Jijia Fine Co. 2020-099 2020-107
Ltd. controlling parties and equipment
g price settlement 2021-7-29 and
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Changhong under the Rental to Rental apartment cn) Notice No.: 2020-097
124 Precision same related second floor Marketing price 11.22 11.22 0.08% 5000.00 N
Cash 2020-12-30; 2021-7-13;
Electronics controlling parties living area settlement
- 2021-7-29 and 2020-099 2020-107
2021-12-21 2021-050 2021-053 Tech. Co. Ltd. s hareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Sichuan Other
Changhong Rental to Rental apartment 2020-12-12;
Juchao
enterprise
125 Minsheng related plant office part Marketin 105.22 105.22 0.78% 5000.00 N Cash - 2020-12-30; 2021-7-13;
Website(www.cninfo.com.control
Logistics Co. parties of the building g price settlement 2021-7-29 and
cn) Notice No.: 2020-097
under the 2021-12-21 2020-099 2020-107 Ltd. same 2021-050 2021-053
134CHANGHONG MEILING CO.LTD. Annual Report 2021
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Rental apartment Juchao
Sichuan control under the Rental to plant warehouse 2020-12-12;
Website(www.cninfo.com.Changhong cn) Notice No.: 2020-097 126 Mold Plastic same related
equipment and Marketin Cash 2020-12-30; 2021-7-13;
controlling parties house and g price
987.28 987.28 7.27% 5000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Tech. Co. Ltd. s hareholder buildings second 2021-12-21
2021-0502021-053
floor living area 2021-058 2021-104 and and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the Rental to Lease of plant 2020-12-12; Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 127 Device same related second floor 216.46 216.46 1.59% 5000.00 N - 2020-099 2020-107
Technology controlling parties living area g price settlement 2021-7-29 and 2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.Zhiyijia under the Rental to cn) Notice No.: 2020-097
128 Network same related Rental apartment Marketin 18.83 18.83 0.14% 5000.00 N Cash - 2020-12-30; 2021-7-13;
Technology controlling parties g price settlement 2021-7-29 and
2020-0992020-107
Co. Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control Website(www.cninfo.com.Huayi under the Rental to
2020-12-12;
129 same related Warehouses for Marketin
cn) Notice No.: 2020-097
Compressor rent g price 0.45 0.45 0.00% 63150.00 N
Cash - 2020-12-30; 2021-7-13;
controlling parties settlement 2021-7-29 and
2020-0992020-107
Co. Ltd. 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Chengdu Other Lease from Marketin 2020-12-12; Juchao 130 Changhong enterprise related Leasing office g price 68.83 68.83 0.51% 5000.00 N
Cash
settlement - 2020-12-30; 2021-7-13; Website(www.cninfo.com.Electronic control parties 2021-7-29 and cn) Notice No.: 2020-097
135CHANGHONG MEILING CO.LTD. Annual Report 2021
Technology under the 2021-12-21 2020-099 2020-107
Co. Ltd. same 2021-050 2021-053
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Guangdong control under the Lease from 2020-12-12;
Website(www.cninfo.com.Changhong cn) Notice No.: 2020-097 131 Electronics same related
lease of plant Marketin Cash 2020-12-30; 2021-7-13;
controlling parties staff dormitory g price
123.34 123.34 0.91% 5000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Hefei control 2020-12-12; Website(www.cninfo.com.
132 Changhong
under the Lease from
same related lease of plant Marketin 31.01 31.01 0.23% 5000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Industrial Co. controlling parties g price settlement 2021-7-29 and
2020-0992020-107
Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Jiahong under the Lease from
2020-12-12;
Lease of staff Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 133 Industrial Co. same related dormitory flowers g price 20.52 20.52 0.15% 8000.00 N controlling parties settlement
- 2021-7-29 and 2020-099 2020-107
Ltd. 2021-050 2021-053 shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Juchao
Sichuan Controlling 2020-12-12; Website(www.cninfo.com.Changhong shareholder Lease from Lease of VISA Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 134 Electric Co. and ultimate related parties laboratory plant g price
360.26 360.26 2.65% 5000.00 N settlement - 2021-7-29 and 2020-099 2020-107
Ltd. controller 2021-12-21 2021-050 2021-053 2021-058 2021-104 and
Sichuan Controlling Lease from
135 related Lease of staff Marketin Cash
2020-12-12; Juchao
Changhong shareholder dormitory stores g price 18.12 18.12 0.13% 8000.00 N settlement - 2020-12-30; 2021-7-13; Website(www.cninfo.com.Electronics and ultimate parties 2021-7-29 and cn) Notice No.: 2020-097
136CHANGHONG MEILING CO.LTD. Annual Report 2021
Holding controller 2021-12-21 2020-099 2020-107
Group Co. 2021-050 2021-053
Ltd. 2021-058 2021-104 and
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the Lease from 2020-12-12;
136 Minsheng same related lease of plant Marketin
cn) Notice No.: 2020-097
7.40 7.40 0.05% 5000.00 N Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Logistics Co. controlling parties g price settlement 2021-7-29 and
Ltd. shareholder 2021-12-21
2021-0502021-053
2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Changhong under the Lease from 2020-12-12; cn) Notice No.: 2020-097
137 Property same related Lease of staff Marketindormitory flowers g price 0.53 0.53 0.00% 8000.00 N
Cash - 2020-12-30; 2021-7-13;
Services Co. controlling parties settlement 2021-7-29 and
2020-0992020-107
2021-12-21 2021-050 2021-053 Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Changhong control under the Lease from 2020-12-12;
Website(www.cninfo.com.Huayi Lease of staff Marketin Cash 2020-12-30; 2021-7-13; cn) Notice No.: 2020-097 138 Compressor same related dormitory g price 4.18 4.18 0.03% 63150.00 N settlement - 2021-7-29 and 2020-099 2020-107
Co. Ltd. controlling parties 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Production line
Other line-N2 line
Sichuan enterprise Juchao control transformation Changhong Spot 2020-12-12; Website(www.cninfo.com.
139 Intelligent
under the Purchase/ac vacuum line
same quisition of Marketin 999.08 999.08 2.99% 7000.00 N exchange - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Manufacturing controlling fixed assets transformation g price Bank 2021-7-29 and
2020-0992020-107
Technology acceptance 2021-12-21 2021-050 2021-053
Co. Ltd. shareholder and self-service 2021-058 2021-104 and and ultimate 2021-106
controller sorting baler
quality
137CHANGHONG MEILING CO.LTD. Annual Report 2021
improvement
transformation
industrial internet
smart
manufacturing
project
Fire fighting
renovation low Juchao
Sichuan Controlling voltage cabinet Acquisition 2020-12-12;
Website(www.cninfo.com.
140 Changhong shareholder
cn) Notice No.: 2020-097
of fixed renovation MarketinElectric Co. and ultimate g price 183.32 183.32 0.55% 10000.00 N
Cash - 2020-12-30; 2021-7-13; 2020-099 2020-107
Ltd. controller assets
settlement 2021-7-29 and
relocation and 2021-12-21 2021-050 2021-053 2021-058 2021-104 and
renovation of 2021-106
equipment
Other
enterprise Juchao
Sichuan control Acquisition Industrial internet under the of fixed project 2020-12-12;
Website(www.cninfo.com.
141 Hongxin same assets knowledge base Marketin 405.35 405.35 1.21% 10000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Software Co. controlling /intangible management g price settlement 2021-7-29 and
2020-0992020-107
Ltd. 2021-12-21 2021-050 2021-053 shareholder assets system software 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
Sichuan control 2020-12-12; Website(www.cninfo.com.under the Acquisition
142 Huanyu same of fixed Plant construction Marketin 36.70 36.70 0.11% 8000.00 N Cash - 2020-12-30; 2021-7-13;
cn) Notice No.: 2020-097
Industrial Co. controlling assets g price settlement 2021-7-29 and
2020-0992020-107
Ltd. 2021-050 2021-053 shareholder 2021-12-21 2021-058 2021-104 and
and ultimate 2021-106
controller
Guangdong Other 2020-12-12; Juchao
Changhong enterprise Acquisition 143 Purchase of TV Marketin Cash 2020-12-30; 2021-7-13;
Website(www.cninfo.com.Electronics control of fixed for own use g price 3.92 3.92 0.01% 10000.00 N settlement - 2021-7-29 and cn) Notice No.: 2020-097
Co. Ltd. under the assets 2021-12-21 2020-099 2020-107
same 2021-050 2021-053
138CHANGHONG MEILING CO.LTD. Annual Report 2021
controlling 2021-058 2021-104 and
shareholder 2021-106
and ultimate
controller
Other
enterprise Juchao
Sichuan control Website(www.cninfo.com.Hongcheng under the Acquisition 2020-12-12; cn) Notice No.: 2020-097
144 Construction same of fixed Plant construction Marketinmanagement g price 195.02 195.02 0.58% 8000.00 N
Cash - 2020-12-30; 2021-7-13;
Engineering controlling assets settlement 2021-7-29 and
2020-0992020-107
2021-12-21 2021-050 2021-053 Co. Ltd. shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Other
enterprise Juchao
control Website(www.cninfo.com.
081 Electronic under the Acquisition 2020-12-12; cn) Notice No.: 2020-097
145 Group Co. same of fixed Plant construction Marketin Cash 2020-12-30; 2021-7-13;
Ltd. controlling assets g price
106.42 106.42 0.32% 10000.00 N settlement - 2021-7-29 and 2020-099 2020-107
2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Juchao
Sichuan Controlling Website(www.cninfo.com.Changhong shareholder Sale of fixed Temporary
2020-12-12;
146 electrical Marketin
cn) Notice No.: 2020-097
Electric Co. and ultimate assets g price 33.90 33.90 9.69% 10000.00 N
Cash 2020-12-30; 2021-7-13;
settlement - 2021-7-29 and 2020-099 2020-107
Ltd. controller equipment 2021-12-21 2021-050 2021-053 2021-058 2021-104 and
Other
enterprise Juchao
Yuanxin control Website(www.cninfo.com.Financial under the Financing Financial
2020-12-12;
Marketin cn) Notice No.: 2020-097 147 Lease Co. same business statement g price 49202.19 49202.19 -- 65000.00 N
Cash - 2020-12-30; 2021-7-13;
controlling settlement 2021-7-29 and
2020-0992020-107
Ltd. 2021-12-21 2021-050 2021-053 shareholder 2021-058 2021-104 and
and ultimate 2021-106
controller
Total -- -- 1125515.49 -- -- -- -- -- -- --
Detail of sales return with major amount involved Not applicable
Report the actual implementation of the daily related transactions 1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and
which were projected about their total amount by types during the
139CHANGHONG MEILING CO.LTD. Annual Report 2021
reporting period (if applicable) power from Sichuan Changhong and its subsidiary by the Company for year of 2021 was 2920 million yuan at most (tax-excluded) actually 179680.97
yuan occurred in reporting period.
2. It is estimated that the related transaction amount resulted by purchasing compressor sales of goods and accepting or provide labor serves with
Changhong Huayi and its subsidiary by the Company for year of 2021 was 646.5 million yuan at most (tax-excluded) actually 42408.87 yuan occurred
in reporting period.
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment software maintenance and spare parts and molds etc.
from Sichuan Changhong and its subsidiary by the Company for year of 2021 was 100 million yuan at most (tax-excluded) actually 7329100 yuan
occurred in reporting period.
4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by
the Company for year of 2021 was 9760 million yuan at most (tax-excluded) actually 7433088400 yuan occurred in reporting period.
5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of
2021 was 50 million yuan at most (tax-excluded) actually 28067500 yuan occurred in reporting period.
6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng
Logistics Co. Ltd. by the Company for year of 2021 was 600 million yuan at most (tax-excluded) actually 585263800 yuan occurred in reporting
period.
7. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service
Chain Co. Ltd. by the Company for year of 2021 was 350 million yuan at most actually 250718100 yuan occurred in reporting period.
8. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor
service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2021 was 56 million yuan at most (tax-excluded) actually 32749100
yuan occurred in reporting period.
9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding
Group Co. Ltd and its subsidiary by the Company for year of 2021 was 76 million yuan at most (tax-excluded) actually 45000700 yuan occurred in
reporting period.
10. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services fuel power leasing and purchasing
equipment etc. from Sichuan Changhong Electronics Holding Group Co. Ltd. and its subsidiary by the Company for year of 2021 was 360 million
yuan at most (tax-excluded) actually 159993800 yuan occurred in reporting period.
11. It is estimated that the related transaction amount resulted by received the financing lease commercial factoring and bill financing from Yuanxin
F inancial Lease Co. Ltd was 65 million yuan at most actually 492021900 yuan occurred in reporting period.Reasons for major differences between trading price and market
Not applicable
reference price (if applicable)
140CHANGHONG MEILING CO.LTD. Annual Report 2021
(ii) Related transactions by assets acquisition and sold
□Applicable √ Not applicable
There are no related transactions by assets acquisition and sold in the period
(iii) Related party transaction of joint foreign investment
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.(iv) Connect of related liability and debt
√ Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period
(v) Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
Amount for the Period
Maximum daily
deposit limit (In Deposit interest Opening
Ending
Total deposit The total
Related party Relationship balance (In 10 amount Balance (10 10 thousand rate range amount for the
yuan) thousand yuan)
thousand
Period (10 withdrawn in the yuan)
thousand yuan) Period (10 thousand yuan)
Sichuan Other enterprises
Changhong controlled by the
Group Finance same controlling 450000.00 0.42%-4.805% 279825.60 4167793.91 4109110.82 338508.69
Co. Ltd. shareholder and ultimate controller
Credit extension or other financial business
Related party Relationship Type of business Total amount ( 10 Actual amount ( 10 thousand yuan) thousand yuan)
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
Finance Co. Ltd. controlling shareholder note issuance 300000.00 174303.79
and ultimate controller
Other enterprises
Sichuan Changhong Group controlled by the same Other financial services -
Finance Co. Ltd. controlling shareholder note discounting 300000.00 60114.50
and ultimate controller
Note 1: After deliberated and approved by the 27th session of 9th BOD and 3rd extraordinary shareholders general meeting of 2019
held on 10 September 2019 and 27 September it is agreed that the company and its related party Changhong Huayi Compressor Co.Ltd. (hereinafter referred to as "Changhong Huayi") respectively will increase the capital to Changhong Finance Company by 500
million yuan with its own funds the total capital increase will not exceed one billion yuan. After capital increased registered capital
of Changhong Finance Company changed to 2693938365.84 yuan. The Company and Changhong Huayi holds 14.96% equity of
Chonghong Finance Company respectively and controlling shareholder of the Company -Sichuan Changhong Electric Co. Ltd and
its controlling shareholder Sichuan Changhong Electronics Holding Group Co. Ltd holds 35.04% equity of Changhong Finance
141CHANGHONG MEILING CO.LTD. Annual Report 2021
Company respectively.Note 2: After deliberated and approved by the 41st session of 9th BOD and 4thextraordinary shareholders general meeting of 2020 held
on 14 August 2020 and 12 October it is agreed to continue the financial services cooperation between the Company and Changhong
Finance Company and renew the “Financial Service Agreement” for a period of three years. Changhong Finance Company will
provides a series of financial services such as deposit and loans within scope of operation according to the requirements of Company
and its subsidiaries.(vi) Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
(vii) Other related party transactions
√ Applicable □ Not applicable
1. After deliberated and approved by the 7th session of 10th BOD the 6th session of 10th BOS and 1st extraordinary
shareholders general meeting of 2021 held on 19 April 2021 and 16 June it is agreed to terminate the use of
proceeds to purchase part of the intelligent infrastructure platform construction owned by Sichuan Changhong and
its subsidiary Sichuan Hongwei Technology Co. Ltd. and Shenzhen Yijiaen Technology Co. Ltd. software R&D
platform and other R&D assets. In the Period the Company and the aforementioned related parties have
completed the signing of the termination agreement.
2. On July 12 2021 as approved by the resolutions of the 9th session of the 10th BOD and the 7th session of the
10th BOS of the company it was agreed that the company would increase the daily related transactions amount of
no more than 300 million yuan (excluding taxes) for the financial leasing commercial factoring and bill financing
businesses provided by Yuanxin Leasing that the company and its holding subsidiaries were expected to accept in
2021. After this increase the total amount of daily related transactions between the company and its holding
subsidiaries and Sichuan Changhong and its holding subsidiaries (excluding Changhong Huayi Compressor Co.Ltd.) in 2021 was expected to not exceed 14406 million yuan (excluding taxes) of which the total amount of
daily related transactions with Yuanxin Leasing in 2021 was expected to not exceed 650 million yuan (excluding
taxes).
3. On August 16 2021 as approved by the resolutions of the 10th session of the 10th BOD and the 8th session of
the 10th BOS of the company it was agreed that the company would sign the Leasing Cooperation Agreement
with Hefei Changhong Industrial Co. Ltd. to lease the Plant No. 2 in Changhong Industrial Park No. 6069
Fangxing Avenue Economic and Technological Development Zone Hefei City Anhui Province from Hefei
Changhong Industrial Co. Ltd. for carrying out the relocation and expansion project of the extrusion line the
lease term is 10 years the total leased plant area is 11798.31 square meters and the monthly rent is 14.89
yuan/square meter (excluding taxes tax rate is 5%) and the annual rent increases by 5% compared with the
previous year (the rent will not rise after reaching the average market price of the plant but the rent decline must
be adjusted according to the market conditions).
4. On December 20 2021 as approved by the resolutions of the 15th session of the 10th BOD and the 12th session
of the 10th BOS of the company it was agreed that the company would increase the daily related transactions
amount of no more than 80 million yuan (excluding taxes) for the transportation warehousing and loading and
142CHANGHONG MEILING CO.LTD. Annual Report 2021
unloading businesses provided by Changhong Minsheng that the company and its holding subsidiaries were
expected to accept in 2021. After this increase the total amount of daily related transactions between the company
and its holding subsidiaries and Sichuan Changhong and its holding subsidiaries (excluding Changhong Huayi
Compressor Co. Ltd.) in 2021 was expected to not exceed 14486 million yuan (excluding taxes) of which the
total amount of daily related transactions with Changhong Minsheng in 2021 was expected to not exceed 600
million yuan (excluding taxes).
5. On December 6 2021 and December 23 2021 as approved by the resolutions of the 13th session of the 10th
BOD the 11th session of the 10th BOS and the fourth extraordinary general meeting of shareholders in 2021 it
was agreed that the total amount of daily related transactions between the company and its holding subsidiaries
and the related parties in 2022 should not exceed 14.83 billion yuan (tax excluded); it was agreed that the
company and Sichuan Changhong Group Finance Co. Ltd. Would continue to carry out related transactions in
financial services such as deposits and loans in 2022.Related searches for disclosure website of interim report with major related transaction concerned
Interim report Disclosure date Website for disclosure
Resolution Notice of the 5th session of 10th BOD (2021-028)
Resolution Notice of the 6th session of 10th BOS (2021-029)
Notice on the Termination of Assets Purchases and Related Transactions 2021-4-20 Juchao Website: http://Juchao
(2021-031) 2021-6-17 Website
Resolution Notice of First extraordinary general meeting of 2021
(2021-046)
Resolution Notice of the 9th session of 10th BOD (2021-050)
Resolution Notice of the 7th session of 10th BOS (2021-051) 2021-7-13 Juchao Website: http://Juchao
Increase the forecast announcement of daily related party transactions Website
for year of 2021 (2021-053)
Resolution Notice of the 10th session of 10th BOD (2021-060)
Resolution Notice of the 8th session of 10th BOS (2021-061)
Notice on Lease Cooperation Agreement Singed between the Company 2021-8-18
Juchao Website: http://Juchao
Website
and Hefei Changhong Industrial Co.Ltd and Related Transactions
(2021-065)
Resolution Notice of the 15th session of 10th BOD (2021-104)
Resolution Notice of the 12th session of 10th BOS (2021-105) 2021-12-21 Juchao Website: http://Juchao
Increase the forecast announcement of daily related party transactions Website
for year of 2021 (2021-106)
Resolution Notice of the 13th session of 10th BOD (2021-091)
Resolution Notice of the 11th session of 10th BOS (2021-092)
Notice on Estimated Routine Related Transactions for year of 2022
(2021-094) 2021-12-7 Juchao Website: http://Juchao
Notice on Expected Continuing Related Transactions with Sichuan 2021-12-24 Website
Changhong Group Finance Company in 2022 (2021-095)
Resolution Notice of Fourth extraordinary general meeting of 2021
(2021-109)
XV. Significant contract and implementations
(i) Entrust contract and leasing
1. Entrust
143CHANGHONG MEILING CO.LTD. Annual Report 2021
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
144CHANGHONG MEILING CO.LTD. Annual Report 2021
3. Leasing
□Applicable √ Not applicable
No leasing in the period
(ii) Major guarantee
√ Applicable □ Not applicable
The guarantees provided by the company to the wholly-owned and holding subsidiaries are guarantees for supporting bank credits generated by its production and
operation. The guaranty style is the guarantee. The company and its subsidiaries did not provide guarantees to subjects outside the scope of consolidated statements.The company and its holding subsidiaries had no overdue external guarantees no external guarantees involving litigation and no losses due to the award of the
guarantee. Up to 31 December 2021 the external guarantees of the Company and subsidiaries are as follows:
In 10 thousand yuan
Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries)
Actual Counter Complete Guarantee
Name of the Company Related Announcement disclosure Guarantee Actual date Guarantee Collateral (if Guarantee
guarantee guarantee (if implementation for related
guaranteed date limit of happening type applicable) term
limit applicable) or not party
-----------
Total approving external guarantee in report period (A1) 0 Total actual occurred external guarantee in report period (A2) 0
Total approved external guarantee at the end of report period 0 Total actual balance of external guarantee at the ( A3) end of report period (A4) 0
Guarantee between the Company and the subsidiaries
Actual Counter Complete Guarantee
Name of the Company Related Announcement disclosure Guarantee Actual date Guarantee Collateral (if Guarantee
guarantee guarantee (if implementation for related
guaranteed date limit of happening type applicable) term
limit applicable) or not party
150000.00 Joint
Notice No.: 2019-090 and 2020-3-5 5000.00 liability Y 1-year Y N
Zhongshan Changhong 2020-002 released on 26 guaranty
Electric Co. Ltd. December 2019 and 11 January Joint
2020 respectively 2020-3-9 15000.00 liability Y 1-year Y N
guaranty
145CHANGHONG MEILING CO.LTD. Annual Report 2021
Joint
2020-3-27 5500.00 liability Y 1-year Y N
guaranty
Joint
2020-3-30 20000.00 liability Y 1-year Y N
guaranty
Joint
2020-4-14 17900.00 liability Y 1-year Y N
guaranty
Joint
2020-4-28 12000.00 liability Y 1-year Y N
guaranty
Joint
2020-6-10 20000.00 liability Y 9-months Y N
guaranty
Joint
2020-8-17 10000.00 liability Y 1-year Y N
guaranty
Joint
2020-9-2 15000.00 liability Y 1-year Y N
guaranty
Joint
2021-3-26 13000.00 liability Y 1-year N N
guaranty
Joint
2021-3-29 18000.00 liability Y 1-year N N
guaranty
Joint
Notice No.: 2020-097 2020-098 2021-3-30 20000.00 liability Y 1-year N N
2020-101and 2020-107 released guaranty
on 11 December 2020 and 30 140000.00 Joint
December respectively 2021-4-1 20000.00 liability Y 11.5-months N N
guaranty
Joint
2021-4-6 9000.00 liability Y 1-year N N
guaranty
Joint
2021-5-25 10000.00 liability Y 1-year N N
guaranty
146CHANGHONG MEILING CO.LTD. Annual Report 2021
Joint
2021-7-20 5000.00 liability Y 1-year N N
guaranty
Joint
2021-8-19 5000.00 liability Y 1-year N N
guaranty
Joint
2021-8-27 15000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released
on 7 December 2021 and 24 140000.00 - - - - - - -
December respectively
Joint
2020-4-2 3000.00 liability Y 1-year Y N
guaranty
Joint
Notice No.: 2019-090 and 2020-4-2 4000.00 liability Y 1-year Y N
2020-002 released on 26 guaranty
December 2019 and 11 January 30000.00 Joint
2020 respectively 2020-8-17 6500.00 liability Y 1-year Y N
guaranty
Joint
2020-9-2 5000.00 liability Y 1-year Y N
guaranty
Changhong Meiling Ridian Joint
Technology Co. Ltd. 2021-3-31 4000.00 liability Y 1-year N N
guaranty
Joint
Notice No.: 2020-097 2021-6-9 5000.00 liability Y 6.8-months Y N
2020-098 2020-101 and guaranty
2020-107 released on 11 30000.00
December 2020 and 30 December Joint
respectively 2021-9-22 3000.00 liability Y 1-year N N
guaranty
Joint
2021-10-19 4000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released 16000.00 - - - - - - -
on 7 December 2021 and 24
147CHANGHONG MEILING CO.LTD. Annual Report 2021
December respectively
Notice No.: 2019-004
2019-006 and 2019-012 released Joint
on 30 January 2019 and 23 14000.00 2019-12-30 2000.00 liability Y 11-months Y N
February respectively guaranty
Joint
2020-3-10 1000.00 liability Y 1-year Y N
guaranty
Joint
2020-6-1 1500.00 liability Y 9.5-months Y N
guaranty
Joint
2020-6-18 500.00 liability Y 8.6-months Y N
Notice No.: 2019-090 2020-002 guaranty
2020-012 2020-019 and
2020-036released on 26 Joint
December 2019 11 January 2020 18000.00 2020-8-24 2000.00 liability Y 1-year Y N
28 March 2020 and 30 May guaranty
Zhongke Meiling Cryogenic respectively Joint
Technology Co. Ltd. 2020-9-25 3000.00 liability Y 1-year Y N guaranty
Joint
2020-11-19 1000.00 liability Y 1-year Y N
guaranty
Joint
2020-12-25 2000.00 liability Y 1-year Y N
guaranty
Joint
Notice No.: 2020-097 2021-5-24 5000.00 liability Y 1-year N N
2020-098 2020-101 and 26000.00 guaranty
2020-107 released on 11
December 2020 and 30 December Joint
respectively 2021-9-26 6000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released
on 7 December 2021 and 24 26000.00 - - - - - - -
December respectively
Sichuan Changhong Notice No.: 2020-097 Joint
Air-conditioner Co. Ltd. 2020-098 2020-101 and 100000.00 2021-9-24 5000.00 liability Y 1-year N N
2020-107 released on 11 guaranty
148CHANGHONG MEILING CO.LTD. Annual Report 2021
December 2020 and 30 December Joint
respectively 2021-12-7 15000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released
on 7 December 2021 and 24 100000.00 - - - - - - -
December respectively
Joint
Notice No.: 2019-083 2019-084 2019-12-23 2103.51 liability Y 1-year Y N
and 2019-087 released on 7 guaranty
December 2019 and 18 December 6345注1
Joint
Changhong RUBA Trade respectively 2020-12-16 1831.50 liability Y 11.4-months Y N
Company guaranty
Notice No.: 2020-097
2020-098 2020-101 and
2020-107 released on 11 5920.38 注 2 - - - - - - -
December 2020 and 30 December
respectively
Notice No.: 2019-090 and
2020-002 released on 26 Joint
December 2019 and 11 January 15000.00 2020-4-9 10000.00 liability Y 1-year Y N
2020 respectively guaranty
Notice No.: 2020-097
Jiangxi Meiling Electric 2020-098 2020-101 and Joint
Appliance Co. Ltd. 2020-107 released on 11 10000.00 2021-7-8 10000.00 liability Y 1-year N N December 2020 and 30 December guaranty
respectively
Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released
on 7 December 2021 and 24 15000.00 - - - - - - -
December respectively
Notice No.: 2019-090 and
2020-002 released on 26 Joint
December 2019 and 11 January 3000.00 2020-3-20 1000.00 liability Y 1-year Y N
2020 respectively guaranty
Hefei Meiling Nonferrous Notice No.: 2020-097
Metal Products Co. Ltd. 2020-098 2020-101 and
2020-107 released on 11 3000.00 - - - - - - -
December 2020 and 30 December
respectively
Notice No.: 2021-091 2021-092 3000.00 - - - - - - -
149CHANGHONG MEILING CO.LTD. Annual Report 2021
2021-096 and 2021-109 released
on 7 December 2021 and 24
December respectively
Notice No.: 2019-090 and
2020-002 released on 26 Joint
December 2019 and 11 January 50000.00 2020-3-26 6000.00 liability Y 1-year Y N
2020 respectively guaranty
Joint
Notice No.: 2020-097 2020-12-30 10000.00 liability Y 1-year Y N
Hefei Meiling Group 2020-098 2020-101 and guaranty
Holdings Limited 2020-107 released on 11 50000.00 December 2020 and 30 December Joint
respectively 2021-3-5 5000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released
on 7 December 2021 and 24 40000.00 - - - - - - -
December respectively
Joint
2021-7-28 2000.00 liability Y 1-year N N
guaranty
Joint
2021-7-29 5000.00 liability Y 1-year N N
guaranty
Notice No.: 2021-008 2021-009
2021-011 and 2021-034 released Joint
on 3 March 2021and 29 April 35000.00 2021-8-30 5000.00 liability Y 1-year N N
Hefei Changhong Meiling respectively
guaranty
Life Appliances Co. Ltd. Joint
2021-10-13 2000.00 liability Y 1-year N N
guaranty
Joint
2021-12-9 4000.00 liability Y 11-months N N
guaranty
Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released
on 7 December 2021 and 24 35000.00 - - - - - - -
December respectively
Total amount of approving guarantee for subsidiaries in report Total amount of actual occurred guarantee for
period (B1) 410000.00 subsidiaries in report period (B2) 377835.01
Total amount of approved guarantee for subsidiaries at the end of 766000.00 Total balance of actual guarantee for subsidiaries at 190000.00
150CHANGHONG MEILING CO.LTD. Annual Report 2021
reporting period (B3) the end of reporting period (B4)
Guarantee of the subsidiaries for the subsidiaries
Actual Counter Complete Guarantee
Name of the Company Related Announcement disclosure Guarantee Actual date Guarantee Collateral (if Guarantee
guarantee guarantee (if implementation for related
guaranteed date limit of happening type applicable) term
limit applicable) or not party
Notice No.: 2021-013 2021-014
2021-021 and 2021-034 released Joint and
on 3 March 2021and 29 April 6000.00 2021-4-30 500 several - - 11-months N N
Anhui Tuoxing Technology respectively liability
Co. Ltd. Notice No.: 2021-091 2021-092
2021-096 and 2021-109 released
on 7 December 2021 and 24 5000.00 - - - - - - - -
December respectively
Notice No.: 2021-091 2021-092
Anhui Ling'an Medical 2021-096 and 2021-109 released
Equipment Co. Ltd. on 7 December 2021 and 24 5000.00 - - - - - - - -
December respectively
Total amount of approving guarantee for subsidiaries in report Total amount of actual occurred guarantee for
period (C1) 16000.00 subsidiaries in report period (C2) 500
Total amount of approved guarantee for subsidiaries at the end of Total balance of actual guarantee for subsidiaries at
reporting period (C3) 16000.00 the end of reporting period (C4) 500
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of approving guarantee in report period Total amount of actual occurred guarantee in report
(A1+B1+C1) 426000.00 period (A2+B2+C2) 378335.01
Total amount of approved guarantee at the end of report period Total balance of actual guarantee at the end of
(A3+B3+C3) 782000.00 report period (A4+B4+C4) 190500.00
Ratio of actual guarantee (A4+B4+C4) in net assets of the Company 39.38%
Including:
Amount of guarantee for shareholders actual controller and its related parties (D) 0
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio
exceed 70% directly or indirectly (E) 123000.00
Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) 0
151CHANGHONG MEILING CO.LTD. Annual Report 2021
Total amount of the aforesaid three guarantees (D+E+F) 123000.00
Explanations on possibly bearing joint and several liquidating responsibilities for undue
guarantees (if applicable) N/A
Explanations on external guarantee against regulated procedures (if applicable) N/A
Note 1: In order to unify the currency for totaling the exchange rate here was converted from the US dollar to the 7.05 yuan on October 31 2019. For details please refer to the announcement
No. 2019-090 disclosed by the company.Note 2: In order to unify the currency for totaling the exchange rate here was converted from the US dollar to the 6.5782 yuan on November 31 2020. For details please refer to the
announcement No. 2020-101 disclosed by the company.The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company and these wholly-owned and holding subsidiaries are in normal production and
operation there are no overdue loans and the guarantee risks are controllable. During the reporting period the highest level of security the Company provided amounted to 4260000000 yuan
by the approval the actual amount of guarantee is 3783350100 yuan. At the end of the reporting period the practical guarantee balance amounted to 1905000000 yuan accounting for the
Company’s latest net assets ratio of 39.38%.Explanation on guarantee with composite way: Not applicable
152CHANGHONG MEILING CO.LTD. Annual Report 2021
(iii) Entrust others to cash asset management
1. Trust financing
√ Applicable □ Not applicable
Trust financing in the period
In 10 thousand yuan
Impairment amount
Type Capital resources Amount for entrust Undue balance Overdue amount for overdue financial
management
Bank financing Idle raised funds 20000 0 0 0
products Own idle funds 160900 0 0 0
Total 180900 0 0 0
Details of the single major amount or high-risk trust investment with low security poor fluidity
√ Applicable □ Not applicable
153CHANGHONG MEILING CO.LTD. Annual Report 2021
In 10 thousand yuan
Amount
Whet
of reserve
Antici Actual her Whether
Referen Actual for
Trustee pated collecte appro has Summary of the
Criteria ce gains/l devaluati
institution Truste Product Source Expiry incom d ved by entrust items and related
Amount Start date Capital investment purpose for fixing annual osses on of
(or name of e type type of funds date e (if gains/lo legal finance query index (if
reward rate of in withdrawi
trustee) applic sses in proce plan in applicable)
return period ng (if
able) period dure the future
applicable
(Y/N)
)
Juchao
Hefei Deposits embedded in financial Website(www.cni
Branch of Principal-gu derivatives absorbed by banks are Annualize
Bank of East Bank aranteed 10000.00 Idle own 2021-1-15 2021-7-15 linked to exchange rate fluctuations so Not nfo.com.cn)
Asia (China) with floating funds that depositors can get corresponding
d returns: 3.60% 181.00 181.00 181.00 N/A Y
3.60% applicable
Co. Ltd. income returns on the basis of assuming certain
(Notice No.:
risks. 2021-003)
Bank of Communications operates the
funds raised by structured deposit
products in a unified manner and
manages them in accordance with the
principle of separating basic deposits Juchao
Mianyang
Branch of Principal-gu
from derivative transactions. The raised Website(www.cni
Bank of Bank aranteed 20000.00 Idle own
principal will be included in the internal Annualize
with floating funds 2021-1-18 2021-4-19 fund of Bank of Communications for d returns: 3.15% 157.07 157.07 157.07 N/A Y
Not nfo.com.cn)
Communicat income unified operation and management and 3.15%
applicable
(Notice No.:
ions Co. Ltd will be included in the payment scope
of deposit reserve fund and deposit 2021-003)
insurance. The embedded derivative
part of products will be linked to the
exchange rate interest rate commodity
and index etc.Anhui Bank of Communications operates the Juchao
Province Principal-gu
Branch of Bank aranteed Idle own
funds raised by structured deposit Annualize Not Website(www.cni
Bank of with floating 10000.00 funds 2021-1-19 2021-4-19 d returns: 3.15% 77.67 77.67 77.67 N/A Y products in a unified manner and applicable nfo.com.cn)
Communicat income 3.15%
ions Co. Ltd manages them in accordance with the (Notice No.:
154CHANGHONG MEILING CO.LTD. Annual Report 2021
principle of separating basic deposits 2021-003)
from derivative transactions. The raised
principal will be included in the internal
fund of Bank of Communications for
unified operation and management and
will be included in the payment scope
of deposit reserve fund and deposit
insurance. The embedded derivative
part of products will be linked to the
exchange rate interest rate commodity
and index etc.The funds raised by this product will be
operated uniformly by the Bank of
China and managed in accordance with
the principle of separating basic
deposits from derivative transactions.The raised principal will be included in Juchao
Hefei the internal fund for unified operation Website(www.cni
Branch of Capital guaranteed Idle own and management of the Bank of China AnnualizeBank of Bank 10000.00 2021-1-18 2021-7-14 and will be included in the payment d returns: 3.63% 176.03 176.03 176.03 N/A Y Not nfo.com.cn)
China Co. minimum funds applicable
Ltd. return type
scope of deposit reserve fund and 3.63% (Notice No.:
deposit insurance. The embedded
derivatives part of the product is 2021-003)
invested in the exchange rate interest
rate commodity index and other
derivatives markets and the final
performance of the product is linked to
the derivatives.Juchao
Hefei Principal-gu A structured deposit product and its Website(www.cni
Branch of Bank aranteed Idle own derivative products are partially pegged
Annualize Not nfo.com.cn)
Bohai Bank with floating 5000.00 funds 2021-1-20 2021-7-21 to the mid-rate of the USD-JPY d returns: 3.50% 87.26 86.46 86.46 N/A Y applicable
Co. Ltd. income exchange rate. 3.50% (Notice No.:
2021-003)
Mianyang Capital
Bank 20000.00 Idle own
The funds raised by this product will be Annualize Juchao
Branch of guaranteed funds 2021-1-18 2021-4-20 operated uniformly by the Bank of d returns: 3.54% 178.45 178.45 178.45 N/A Y
Not
applicable Website(www.cni
Bank of minimum China and managed in accordance with 3.54%
155CHANGHONG MEILING CO.LTD. Annual Report 2021
China Co. return type the principle of separating basic nfo.com.cn)
Ltd. deposits from derivative transactions.The raised principal will be included in (Notice No.:
the internal fund for unified operation 2021-003)
and management of the Bank of China
and will be included in the payment
scope of deposit reserve fund and
deposit insurance. The embedded
derivatives part of the product is
invested in the exchange rate interest
rate commodity index and other
derivatives markets and the final
performance of the product is linked to
the derivatives.This product is an embedded financial
derivatives of RMB structured deposits
the bank invests the raised structured
deposits funds in fixed deposit of the
bank at the same time the bank invests Juchao
Hefei Principal-gu it in financial derivative transactions Website(www.cniBranch of (including but not limited to options and Annualize
China Bank aranteed Idle own with floating 5000.00 funds 2021-1-15 2021-4-15 swaps and other derivatives)in domestic d returns: 3.00% 37.50 37.50 37.50 N/A Y
Not nfo.com.cn)
Everbright income or international financial markets with 3.00%
applicable
(Notice No.:
Bank the upper limit of the income of the time
deposit the sum of the profit and loss of 2021-004)
the financial derivative transaction
investment and the bank deposit interest
constitutes the income of the structured
deposit product.Juchao
Chengdu Principal-gu A structured deposit product and its Website(www.cni
Branch of aranteed Idle own derivative products are partially pegged AnnualizeBank
Bohai Bank with floating 10000.00 funds 2021-1-20 2021-7-21 to the mid-rate of the USD-JPY d returns: 3.50% 174.52 172.91 172.91 N/A Y
Not nfo.com.cn)
Co. Ltd. income exchange rate. 3.50%
applicable
(Notice No.:
2021-004)
The principal part of this product is Juchao
incorporated into the internal fund for
Hefei Principal-gu unified operation and management of Website(www.cni
Changdong Bank aranteed 10000.00 Idle own
Annualize
2021-1-26 2021-4-28 Industrial and Commercial Bank of d returns: 3.30% 83.18 53.82 53.82 N/A Y Not nfo.com.cn) Branch of with floating funds China and the income part is invested
ICBC income 3.30%
applicable
in derivative products linked to the (Notice No.:
exchange rate of US dollar against 2021-005)
Japanese yen and the product income is
156CHANGHONG MEILING CO.LTD. Annual Report 2021
linked to the performance of the
exchange rate of US dollar against
Japanese yen in the international market
during the observation period. Investors'
returns depend on the performance of
the dollar-yen exchange rate during the
observation period.This product is a structured deposit
Juchao
Hefei product and its derivative product is
Luyang Principal-gu Website(www.cni
Branch of aranteed Idle own linked to the spot exchange rate of the AnnualizeBank 5000.00 2021-5-6 2021-7-6 Not nfo.com.cn) Bank of with floating funds Euro against the US dollar published on d returns: 3.20% 26.74 26.74 26.74 N/A Y
Hangzhou income 3.20%
applicable
(Notice No.:
Co. Ltd. the Bloomberg page "BFIX" at 14:00 2021-036)
Beijing time on the observation date.Bank of Communications operates the
funds raised by structured deposit
products in a unified manner and
manages them in accordance with the
Mianyang principle of separating basic deposits
Juchao
Branch of Principal-gu from derivative transactions. The raised Website(www.cni
Bank of aranteed Idle own principal will be included in the internal AnnualizeBank
Communicat with floating 10000.00 funds 2021-5-10 2021-7-1 fund of Bank of Communications for d returns: 3.31% 47.16 47.16 47.16 N/A Y
Not nfo.com.cn)
ions Co. income unified operation and management and 3.31%
applicable
(Notice No.:
Ltd. will be included in the payment scope of deposit reserve fund and deposit 2021-036)
insurance. The embedded derivative
part of products will be linked to the
exchange rate interest rate commodity
and index etc.This product is an embedded financial
derivatives of RMB structured deposits
the bank invests the raised structured
deposits funds in fixed deposit of the Juchao
Mianyang bank at the same time the bank invests Website(www.cni
Branch of Principal-gu
China Bank aranteed Idle own
it in financial derivative transactions Annualize
with floating 5000.00 funds 2021-5-6 2021-7-9 d returns: 3.30% 28.88 28.88 28.88 N/A Y
Not
(including but not limited to options and nfo.com.cn)
Everbright 3.30% applicable income swaps and other derivatives) in (Notice No.: Bank domestic or international financial
markets with the upper limit of the 2021-036)
income of the time deposit the sum of
the profit and loss of the financial
derivative transaction investment and
157CHANGHONG MEILING CO.LTD. Annual Report 2021
the bank deposit interest constitutes the
income of the structured deposit
product.Juchao
Hefei Principal-gu This product is a structured deposit Website(www.cni
Branch of Bank aranteed
product the derivative product of which Annualize
Industrial with floating 5000.00
Idle own
funds 2021-5-8 2021-7-7 is linked to the morning benchmark d returns: 3.28% 26.96 26.96 26.96 N/A Y
Not nfo.com.cn)
applicable
Bank income price of Shanghai Gold Exchange on the 3.28% (Notice No.: observation date.
2021-037)
The funds raised by this product will be
operated uniformly by the Bank of
China and managed in accordance with
the principle of separating basic
deposits from derivative transactions.The raised principal will be included in Juchao
Hefei Capital the internal fund for unified operation Website(www.cniBranch of guaranteed Idle own and management of the Bank of China AnnualizeBank of Bank minimum 5000.00 funds 2021-5-10 2021-6-22 and will be included in the payment d returns: 3.29% 19.38 19.38 19.38 N/A Y
Not nfo.com.cn)
China Co. applicable
Ltd. return type
scope of deposit reserve fund and 3.29% (Notice No.:
deposit insurance. The embedded
derivatives part of the product is 2021-037)
invested in the exchange rate interest
rate commodity index and other
derivatives markets and the final
performance of the product is linked to
the derivatives.Juchao
Mianyang Principal-gu This product is a structured deposit Website(www.cni
Branch of aranteed Idle AnnualizeBank 12000.00 fund 2021-5-27 2021-8-27 product the structured derivatives of Not nfo.com.cn) Ping An with floating d returns: 3.40% 102.84 102.84 102.84 N/A Y applicable
Bank income raised which are linked to the CSI 500 index. 3.40% (Notice No.:
2021-041)
Bank of Communications operates the
funds raised by structured deposit Juchao
Zhongshan
Branch of Principal-gu
products in a unified manner and Website(www.cni
aranteed Idle own manages them in accordance with the AnnualizeBank of Bank with floating 2400.00 funds 2021-7-1 2021-10-8
Not
principle of separating basic deposits d returns: 3.20% 20.83 20.83 20.83 N/A Y nfo.com.cn)
Communicat applicable income from derivative transactions. The raised 3.20% (Notice No.: ions principal will be included in the internal
fund of Bank of Communications for 2021-048)
unified operation and management and
158CHANGHONG MEILING CO.LTD. Annual Report 2021
will be included in the payment scope
of deposit reserve fund and deposit
insurance. The embedded derivative
part of products will be linked to the
exchange rate interest rate commodity
and index etc.Bank of Communications operates the
funds raised by structured deposit
products in a unified manner and
manages them in accordance with the
principle of separating basic deposits Juchao
Zhongshan Principal-gu from derivative transactions. The raised Website(www.cniBranch of aranteed Idle own principal will be included in the internal AnnualizeBank of Bank with floating 1500.00 funds 2021-8-25 2021-12-1 fund of Bank of Communications for d returns: 3.17% 12.77 12.77 12.77 N/A Y
Not nfo.com.cn)
Communicat income unified operation and management and 3.17%
applicable
(Notice No.:
ions will be included in the payment scope
of deposit reserve fund and deposit 2021-071)
insurance. The embedded derivative
part of products will be linked to the
exchange rate interest rate commodity
and index etc.Juchao
Hefei
Luyang Principal-gu The structured deposit product the Website(www.cni
Branch of aranteed Idle own derivative products are partially linked AnnualizeBank 3000.00 2021-8-26 2021-12-4 to the spot rate published on Bloomberg d returns: 3.30% 27.12 27.12 27.12 N/A Y Not nfo.com.cn) Bank of with floating funds applicable
Hangzhou income page “BFIX” at 14:00 BST on the 3.3% (Notice No.:
Co. Ltd. observation day 2021-071)
Juchao
Hefei A deposit embedded in financial Website(www.cni
Branch of Principal-gu derivative products taken by banks the
Bank of East Bank aranteed Idle own 2021-11-2 products that allows depositors to earn a
Annualize Not nfo.com.cn)
Asia (China) with floating
6000.00 funds 2021-8-25 6 corresponding return while bearing a d returns: 3.35% 51.93 51.93 51.93 N/A Y 3.35% applicable income certain level of risks by linking it to the (Notice No.: Co. Ltd. exchange rate fluctuations 2021-071)
The fund raised by the product is Juchao
Hefei operated by Bank of China and
Branch of Capital managed in accordance with the
Website(www.cni
guaranteed Idle own 2021-11-2 AnnualizeBank of Bank 6000.00 2021-8-26 principle of separating the underlying d returns: 3.40% 50.30 50.30 50.30 N/A Y Not nfo.com.cn)
China Co. minimum funds 4 deposit from the derivative transactions. return type 3.4%
applicable
Ltd. Principal of the proceeds is included in
(Notice No.:
the unified operation and management 2021-072)
of Bank of China’s internal funds and
159CHANGHONG MEILING CO.LTD. Annual Report 2021
included in the payment scope of
deposit reserves and deposit insurance
premiums. The embedded derivative
invested in derivative markets such as
exchange rates interest rates
commodities and indices and the
ultimate performance of the product is
linked to the derivatives.Principal of the structured deposit is Juchao
Hefei included in the unified operation and
Branch of Principal-gu management of Guangdong Website(www.cni
China Bank aranteed Idle own 2021-11-3 Development Bank investor’s returns
Annualize Not nfo.com.cn)
Guangfa with floating 5000.00 funds 2021-8-30 0 from the structured deposit depend on d returns: 3.30% 41.59 41.59 41.59 N/A Y 3.3% applicable Bank Co. income the performance of the Shanghai Gold (Notice No.:
Ltd. 2112 contract during the observation 2021-073)
period
Juchao
Hefei A deposit embedded in financial Principal-gu derivative products taken by banks the Website(www.cniBranch of Idle Annualize
Bank of East Bank aranteed with floating 3000.00 fund 2021-9-23
2021-12-2 products that allows depositors to earn a Not nfo.com.cn)
Asia (China) raised 3 corresponding return while bearing a
d returns: 3.40% 25.78 25.78 25.78 N/A Y
income certain level of risks by linking it to the 3.4%
applicable
(Notice No.:
Co. Ltd. exchange rate fluctuations 2021-076)
The funds raised by this product will be
operated uniformly by the Bank of
China and managed in accordance with
the principle of separating basic
deposits from derivative transactions.The raised principal will be included in Juchao
Hefei Capital the internal fund for unified operation Website(www.cniBranch of guaranteed Idle 2021-12-2 and management of the Bank of China AnnualizeBank of Bank minimum 3000.00 fund 2021-9-22 3 and will be included in the payment d returns: 3.41% 25.79 25.79 25.79 N/A Y
Not nfo.com.cn)
China Co. return type raised scope of deposit reserve fund and 3.41%
applicable
(Notice No.:
Ltd. deposit insurance. The embedded
derivatives part of the product is 2021-076)
invested in the exchange rate interest
rate commodity index and other
derivatives markets and the final
performance of the product is linked to
the derivatives.Hefei Principal-gu Idle Principal of the structured deposit is Annualize Juchao
Branch of Bank 2000.00 fund 2021-9-24
2021-12-2 Not
aranteed 3 included in the unified fund operation d returns: 3.30% 16.27 16.27 16.27 N/A Y applicable Website(www.cni
China with floating raised and management of Guangdong 3.3%
160CHANGHONG MEILING CO.LTD. Annual Report 2021
Guangfa income Development Bank returns on the nfo.com.cn)
Bank Co. structured deposit from investors
Ltd. depend on the performance of gold (Notice No.:
during the observation period 2021-076)
Bank of Communications operates the
funds raised by structured deposit
products in a unified manner and
manages them in accordance with the
principle of separating basic deposits Juchao
Zhongshan
Branch of Principal-gu
from derivative transactions. The raised Website(www.cni
aranteed Idle own 2021-12-3 principal will be included in the internal AnnualizeBank of Bank with floating 3000.00 funds 2021-9-27 0 fund of Bank of Communications for d returns: 3.17% 24.49 24.49 24.49 N/A Y
Not nfo.com.cn)
Communicat income unified operation and management and 3.17%
applicable
(Notice No.:
ions will be included in the payment scope
of deposit reserve fund and deposit 2021-077)
insurance. The embedded derivative
part of products will be linked to the
exchange rate interest rate commodity
and index etc.Principal of the structured deposit is
included in on-balance sheet accounting
and managed in accordance with the
Hefei deposit and included in the payment Juchao
Science and range payment of deposit reserves and
Technology Principal-gu deposit insurance premiums relevant
Website(www.cni
aranteed AnnualizeSub-branch Bank with floating 1000.00
Idle own 2021-9-30 2021-12-3 assets are capitalized and provided for funds 1 in line with the relevant regulations of d returns: 3.45% 8.70 8.70 8.70 N/A Y
Not nfo.com.cn)
of Bank of 3.45% applicable
Dongguan income banking supervision institutions of the
(Notice No.:
Co. Ltd. State Council. The ultimate actual 2021-078) return of structured deposits depends on
the performance of underlying markets
and is influenced by a variety of factors
in the market.This product is a structured deposit
Juchao
Hefei product and its derivative product is
Luyang Principal-gu Website(www.cni
Branch of aranteed Idle own 2021-12-3 linked to the spot exchange rate of the AnnualizeBank
Bank of with floating 1000.00 funds 2021-9-30
Not nfo.com.cn)
0 Euro against the US dollar published on d returns: 3.25% 8.10 8.10 8.10 N/A Y applicable
Hangzhou income 3.25% (Notice No.:
Co. Ltd. the Bloomberg page "BFIX" at 14:00 2021-078)
Beijing time on the observation date.Hefei Bank Principal-gu 1000.00 Idle own 2021-9-28 2021-12-2 This product is an embedded financial Annualize 3.15% 7.88 7.88 7.88 N/A Y Not Juchao
161CHANGHONG MEILING CO.LTD. Annual Report 2021
Branch of aranteed funds 8 derivatives of RMB structured deposits d returns: applicable Website(www.cni
China with floating the bank invests the raised structured 3.15%
Everbright income deposits funds in fixed deposit of the nfo.com.cn)
Bank bank at the same time the bank invests (Notice No.:
it in financial derivative transactions
(including but not limited to options and 2021-078)
swaps and other derivatives)in domestic
or international financial markets with
the upper limit of the income of the time
deposit the sum of the profit and loss of
the financial derivative transaction
investment and the bank deposit interest
constitutes the income of the structured
deposit product.Zhongshan Principal of the structured deposit is
Juchao
Branch of Principal-gu included in the unified operation and Website(www.cni
China Bank aranteed 1000.00 Idle own 2021-12-2
management of Guangdong Annualize
Guangfa with floating funds 2021-11-2 7 Development Bank investor’s returns d returns: 3.40% 5.12 5.12 5.12 N/A Y
Not nfo.com.cn)
Bank Co. income from the structured deposit depend on 3.4%
applicable
(Notice No.:
Ltd. the performance of CSI 500 during the observation period 2021-088)
Total 180900.0 -- -- -- -- -- -- 1731. 1699.0 30 53 -- -- -- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
2. Entrust loans
□ Applicable √ Not applicable
No entrust loans in the period.
162CHANGHONG MEILING CO.LTD. Annual Report 2021
(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.XVI. Explanation on other significant events
√ Applicable □ Not applicable
1. After deliberated and approved by the 5th session of 10th BOD 4th session of 10th BOS and Annual General
Meeting of 2020 the Company agrees to use the idle fund raised up to 120 million yuan (the amount can be used
o a rolling basis) to invest in capital-protected financial products with high security good liquidity and amaximum term of not more than one year for a single product. Found more on appointed media “SecuritiesTimes” “China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn)
that the Company disclosed in the form of announcement (Announcement No. 2021-008 2021-009 2021-010 and
2021-034) on 3 March 2021 and 29 April 2021.
2. After deliberated and approved by the 5th session of 10th BOD the Company agrees to invest 24.4276 million
yuan in the technical transformation of the refrigerator (cabinet) production line of Hefei Base to achieved cost
reduction and efficiency enhancement in order to reduce the manufacturing costs and further enhance the market
competitiveness of the Company’s products. Found more on appointed media “Securities Times” “ChinaSecurities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2021-008) on 3 March 2021.
3. After deliberated and approved by the 5th session of 10th BOD 4th session of 10th BOS and Annual General
Meeting of 2020 it was agreed to provide a credit guarantee of up to 350 million yuan to subordinate controlling
subsidiary - Changmei Life Electric with a guarantee period of one year. Found more on appointed media
“Securities Times” “China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2021-008
2021-009 2021-011 and 2021-034) on 3 March 2021 and 29 April 2021.
4. After deliberated and approved by the 6th session of 10th BOD and Annual General Meeting of 2020 it agreed
that the Company and its subsidiaries shall carry out forward foreign exchange fund trading business during the
period from 1 July 2021 to 30 June 2022. Balance of trading not exceeding US$ 720 million (mainly including
USD AUD EUR and other foreign exchange converted to USD) and the maximum period of delivery of a single
business shall not exceed one year. Found more on appointed media “Securities Times” “China SecuritiesJournal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed
in the form of announcement (Announcement No. 2021-013 2021-019 and 2021-034) on 3 March 2021 and 29
April 2021.
5. After deliberated and approved by the 6th session of 10th BOD and Annual General Meeting of 2020 it agreed
the Company’s formulation of “Shareholders Return Plan for the Next Three Years (2021-2023)”. Found more on
appointed media “Securities Times” “China Securities Journal” “Hong Kong Commercial Daily” and Juchao
163CHANGHONG MEILING CO.LTD. Annual Report 2021
Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No.
2021-013 and 2021-034) on 31 March 2021 and 29 April 2021.
6. After deliberated and approved by the 6th session of 10th BOD it was agreed to appointed Mr. Tang Youdao as
the vice president of the Company office term is same as the 10th BOD. Found more on appointed media
“Securities Times” “China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2021-013)
on 31 March 2021.
7. The resolution of the 6thsession of the 10th BOD and the 2020 annual general meeting of shareholders approved
and agreed that the company and its subsidiaries apply to Industrial Bank Co. Ltd. Hefei Branch for a special
credit line of bill pool of up to300 million yuan and agreed that the company and its subsidiaries apply to Ping An
Bank Co. Ltd. Hefei Branch for a special credit line of bill pool of up to 300 million yuan and agreed that the
company and its subsidiaries apply to Huishang Bank Co. Ltd. Hefei Economic Development Zone Branch for a
special credit line of bill pool of up to 300 million yuan and agreed that the company and its subsidiaries apply to
China Merchants Bank Co. Ltd. Hefei Branch for a special credit line of bill pool of up to 300 million yuan and
agreed that the company and its subsidiaries apply to China Citic Bank Co. Ltd. Hefei Branch for a special credit
line of bill pool of up to 50 million yuan. The credit period is one year and the types of credit are mainly used for
the special business of bill pool and endorsement for pledge is adopted. Found more on appointed media
“Securities Times” “China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website
(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2021-013
2021-022 and 2021-034) on 31 March 2021 and 29 April 2021.
8. The 6th session of the 10th BOD and the 2020 annual general meeting of shareholders of the company approved
the renewal of Shine Wing Accounting Firm (special general partnership) as the company's 2021 annual financial
report and internal control audit firm for one year. At the same time the shareholders' general meeting authorized
the management of the company to determine the annual audit remuneration in accordance with the industry
standards and the actual audit work of the company. Found more on appointed media “Securities Times” “ChinaSecurities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2021-013 2021-017 and 2021-034) on 31 March
2021 and 29 April 2021.
9. Mr. Zhu Wenjie the former securities affairs representative and staff supervisor of the company applied to
resign his position as staff supervisor and securities affairs representative of the tenth board of the company due to
personal reasons. In order to ensure that the structure of the board of supervisors in accordance with relevant legal
requirements the company’s congress of staff and workers held a meeting on March 30 2021 it’s agreed to elect
Ms. Sun Hongying as the staff representative supervisor of the tenth board of the company by voting of staff
representatives and the term of office is from the date of approval to the deliberation of the company’s congress
of staff and workers to the date of expiration of the 10th BOS. Found more on appointed media “Securities Times”
“China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the
Company disclosed in the form of announcement (Announcement No. 2021-023) on 31 March 2021.
164CHANGHONG MEILING CO.LTD. Annual Report 2021
10. After deliberated and approved by the 7th session of 10th BOD and 6th session of 10th BOS it was agreed that
the Company should implement the new leasing standard and change the related accounting policy according tothe relevant regulations and requirements of the Ministry of Finance. Found more on appointed media “SecuritiesTimes” “China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn)
that the Company disclosed in the form of announcement (Announcement No. 2021-028 2021-029 and 2021-030)
on 20 April 2021.
11. The 7thsession of the 10th BOD the 6thsession of the 10th BOS and the first extraordinary general meeting of
shareholders in 2021 approved and agreed that the company terminates the use of the raised funds to purchase
underlying assets of the sub-project "intelligent research and development management platform construction" of
the "intelligent research and development ability building and intelligent home appliance technology development
project" from Sichuan Changhong Electric Co. Ltd. and its subsidiaries and the related transactions. Found
more on appointed media “Securities Times” “China Securities Journal” “Hong Kong Commercial Daily” and
Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement
No. 2021-028 2021-029 2021-031 and 2021-046) on 20 April 2021 and 17 June 2021.
12. The resolution of the 8th session of the 10th BOD approved and agreed that the company and its subsidiaries
apply to Bank of Jiujiang Hefei Branch for a special credit line of up to 400 million yuan of bill pool the credit
period is one year the types of credit are mainly used for the special business of bill pool and endorsement for
pledge is adopted. Found more on appointed media “Securities Times” “China Securities Journal” “Hong KongCommercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of
announcement (Announcement No. 2021-038 and 2021-039) on 27 May 2021.
13. During the reporting period the company and its holding subsidiaries received various government subsidies
totaling 47129394.72 yuan. The company disclosed the details in the form of announcement (Announcement No.
2021-047) on the designated information disclosure media such as Securities Times China Securities Journal
Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on July 1 2021.
14. As approved by the resolutions of the 9th session of the 10th BOD the 7th session of the 10th BOS and the
second extraordinary general meeting of shareholders in 2021 it was agreed that all directors supervisors and
senior executives of the company would purchase liability insurance. For details the company disclosed on the
designated information disclosure media such as Securities Times China Securities Journal Hong Kong
Commercial Daily and Juchao Website (www.cninfo.com.cn) on July 13 2021 and July 29 2021 in the form of
announcement (Announcements No. 2021-050 No. 2021-051 No. 2021-052 No. 2021-058).
15. As approved by the resolution of the 10th session of the 10th BOD of the company it was agreed that the
company would invest 15052900 yuan to rebuild the substation in the refrigerator park of the Hefei
manufacturing base thus providing a strong guarantee for the sustainable development of the company's
production and operation. The company disclosed the details in the form of announcement (Announcement No.
2021-060) on the designated information disclosure media such as Securities Times China Securities Journal
Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on August 18 2021.
16. As approved by the resolution of the 10th session of the 10th BOD of the company it was agreed that the
165CHANGHONG MEILING CO.LTD. Annual Report 2021
company would invest an estimate of 30913100 yuan in the relocation and expansion of the extrusion line at the
Hefei refrigerator manufacturing base thereby ensuring the improvement of the company's manufacturing
capacity and production and operation needs. The company disclosed the details in the form of announcement
(Announcement No. 2021-060) on the designated information disclosure media such as Securities Times China
Securities Journal Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on August 18 2021.
17. As approved by the resolution of the 10th session of the 10th BOD of the company it was agreed that the
company would hand over the idle land use rights and buildings located at Area A Longgang Industrial Zone
Yaohai District Hefei City to the government for expropriation. The total area of land use rights expropriated this
time was 16370 square meters (about 24.56 mu) with a total building area of 5728.92 square meters and the
total expropriation compensation was about 18.9243 million yuan. The company disclosed the details in the form
of announcement (Announcement No. 2021-060 & No. 2021-064) on the designated information disclosure media
such as Securities Times China Securities Journal Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) on August 18 2021.
18. As approved by the resolution of the 12th session of the 10th BOD of the company it was agreed to appoint Ms.
Pan Haiyun as the company's securities affairs representative to assist the secretary of the board in performing
duties. The company disclosed the details in the form of announcement (Announcement No. 2021-081 & No.
2021-084) on the designated information disclosure media such as Securities Times China Securities Journal
Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on October 20 2021.
19. As approved by the resolutions of the 12th session of the 10th BOD and the fourth extraordinary general
meeting of shareholders in 2021 it was agreed that the company would apply for a special credit line of bill pool
of up to 500 million yuan from Hefei Branch of Hua Xia Bank Co. Ltd. and apply for a special credit line of
bill pool of up to 600 million yuan from Hefei Branch of Bank of Hangzhou Co. Ltd. and apply for a special
credit line of bill pool of up to 1 billion yuan from Hefei Branch of Bank of Communications Co. Ltd. the term
of credit is one year and the credit varieties are mainly used for the special business of the bill pool adopting bill
pledge method. The company disclosed the details in the form of announcement (Announcement No. 2021-081
No. 2021-085 and No. 2021-109) on the designated information disclosure media such as Securities Times
China Securities Journal Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on October
20 202 and December 24 2021.
20. As approved by the resolutions of the 13th session of the 10th BOD and the fourth extraordinary general
meeting of shareholders in 2021 in order to maintain the company's value and shareholders' rights and interests
and in light of the company's actual situation and business development needs it was agreed that the company
would revise the subject of soliciting voting rights in the Articles of Association and the Rules of Procedure for
General Meeting of Shareholders. The company disclosed the details in the form of announcement
(Announcement No. 2021-091 No. 2021-093 No. 2021-0109) on the designated information disclosure media
such as Securities Times China Securities Journal Hong Kong Commercial Daily and Juchao Website
(www.cninfo.com.cn) on December 7 2021 and December 24 2021.
21. As approved by the resolutions of the 13th session of the 10th BOD the 11th session of the 10th BOS and the
166CHANGHONG MEILING CO.LTD. Annual Report 2021
fourth extraordinary general meeting of shareholders in 2021 it was agreed that the company would provide
credit guarantees of 3.85 billion yuan for its wholly-owned and holding subsidiaries in 2022. For the newly
increased guarantee amount in 2022 and the amount for renewal in 2022 the guarantee period is one year. The
company disclosed the details in the form of announcement (Announcement No. 2021-091 No. 2021-092 No.
2021-96 No. 2021-109) on the designated information disclosure media such as Securities Times China
Securities Journal Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on December 7
2021 and December 24 2021.
22. As approved by the resolutions of the 13th session of the 10th BOD the 11th session of the 10th BOS and the
fourth extraordinary general meeting of shareholders in 2021 it was agreed that the company and its subsidiaries
would use their own idle funds not exceeding 1.3 billion yuan (The quota can be used on a rolling basis) to invest
in the high-security good-liquidity low-risk and stable bank financial products of product maturity within one
year the authorization period is valid within one year from the date of approval by the company’s general meeting
of shareholders. The company disclosed the details in the form of announcement (Announcement No. 2021-091
No. 2021-092 No. 2021-97 No. 2021-109) on the designated information disclosure media such as Securities
Times China Securities Journal Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on
December 7 2021 and December 24 2021.
23. As approved by the 13th session of the 10th BOD of the company and the fourth extraordinary general meeting
of shareholders in 2021 it was agreed that the company and its subsidiary Zhongke Meiling would carry out the
asset pool business of no more than 529 million yuan with the Hefei Branch of China Zheshang Bank Co. Ltd. of
which the Company's quota is not more than 500 million yuan and the quota of Zhongke Meiling is not more than
29 million yuan. The company disclosed the details in the form of announcement (Announcement No. 2021-091
No. 2021-092 No. 2021-98 No. 2021-109) on the designated information disclosure media such as Securities
Times China Securities Journal Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on
December 7 2021 and December 24 2021.
24. On December 10 2021 Mr. Chen Ye the former director of the company applied for his resignation as a
director of the 10th BOD and a committee member of the strategy committee of the Company due to personal
reasons. At the same time as approved by the company’s 14th session of the 10th BOD and the fourth
extraordinary general meeting of shareholders in 2021 it was agreed to elect Mr. Zhao Qilin as a non-independent
director candidate of the 10th BOD of the company and his term of office is the same as that of the 10th BOD of
the company. The company disclosed the details in the form of announcement (Announcement No. 2021-091 No.
2021-092 No. 2021-100 No. 2021-109) on the designated information disclosure media such as Securities Times
China Securities Journal Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on December
7 2021 December 13 2021 and December 24 2021.
XVII. Major event of the subsidiary
√ Applicable □ Not applicable
1. After deliberated and approved by the 5th session of 10th BOD it was agreed the subordinate controlling
167CHANGHONG MEILING CO.LTD. Annual Report 2021
subsidiary - Zhongke Meiling to invested 10 million yuan to establish a wholly-owned subsidiary -- Anhui Lingan
Medical Equipment Co. Ltd. Found more on appointed media “Securities Times” “China Securities Journal”
“Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the
form of announcement (Announcement No. 2021-008) on 3 March 2021.
2. After deliberated and approved by the 6th session of 10th BOD 5th session of 10th BOS and Annual General
Meeting of 2020 it was agreed that Zhongshan Changhong (subsidiary of the Company) to write off the bad debts
of 1657332.46 yuan in total that have become uncollectible. Found more on appointed media “Securities Times”
“China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the
Company disclosed in the form of announcement (Announcement No. 2021-008 2021-013 2021-014 2021-020
and 2021-034) on 31 March 2021 and 29 April 2021.
3. After deliberated and approved by the 6th session of 10th BOD 5th session of 10th BOS and Annual General
Meeting of 2020 it was agreed that Zhongke Meiling Cryogenic Technology Co. Ltd. (controlling subsidiary of
the Company) to provide a credit guarantee of 60 million yuan to its wholly-owned subsidiary - Anhui Tuoxing
Technology Co. Ltd with guarantee of one year. Found more on appointed media “Securities Times” “ChinaSecurities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn) that the Company
disclosed in the form of announcement (Announcement No. 2021-013 2021-014 2021-021 and 2021-034) on 31
March 2021 and 29 April 2021.
4. The resolution of the 8thsession of the 10th BOD agreed that the company's wholly-owned subsidiary Hefei
Meiling Wulian Technology Co. Ltd invests 37.69 million yuan in building industrial internet service capacity to
further expand informatization and digital business and service capacity and build a comprehensive capability ofnew business type integrating "manufacturing + service" businesses. Found more on appointed media “SecuritiesTimes” “China Securities Journal” “Hong Kong Commercial Daily” and Juchao Website (www.cninfo.com.cn)
that the Company disclosed in the form of announcement (Announcement No. 2021-038) on 27 May 2021.
5. As approved by the 15th session of the 10th BOD and the 12th session of the 10th BOS of the company it was
agreed that the affiliated company Zhiyijia Company would provide a certain proportion of performance bond for
the guarantee provided by its distributors to Sichuan Changhong adopting cash pledge method the amount does
not exceed 200 million yuan and the performance guarantee period is one year the specific period is subject to
the guarantee contract. The company disclosed the details in the form of announcement (Announcement No.
2021-104 No. 2021-105 No. 2021-107) on the designated information disclosure media such as Securities Times
China Securities Journal Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on December
212021.
168CHANGHONG MEILING CO.LTD. Annual Report 2021
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
(i) Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+ -) After the Change
Public
reserve
New
Amount Proportion shares Bonus transfer Others Subtotal Amount Proportion
issued shares into share
capital
I. Restricted
shares 10472676 1.00% 0 0 0 -2029754 -2029754 8442922 0.81%
1. State-owned
shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned
legal person’s 1653735 0.16% 0 0 0 +112534 +112534 1766269 0.17%
shares
3. Other domestic
shares 7551521 0.72% 0 0 0 -2142288 -2142288 5409233 0.52%
Including:
Domestic legal 3978329 0.38% 0 0 0 -93778 -93778 3884551 0.37%
person’s shares
Domestic
natural person’s 3573192 0.34% 0 0 0 -2048510 -2048510 1524682 0.15%
shares
4. Foreign shares 1267420 0.12% 0 0 0 0 0 1267420 0.12%
Including:
Foreign legal 0 0.00% 0 0 0 0 0 0 0.00%
person’s shares
Foreign
natural person’s 1267420 0.12% 0 0 0 0 0 1267420 0.12%
shares
II. Unrestricted
shares 1034125205 99.00% 0 0 0 +2029754 +2029754 1036154959 99.19%
1. RMB ordinary
shares 872528625 83.53% 0 0 0 +2029754 +2029754 874558379 83.72%
2. Domestically
listed foreign 161596580 15.47% 0 0 0 0 0 161596580 15.47%
shares
3. Overseas listed
foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 1044597881 100.00% 0 0 0 0 0 1044597881 100.00%
1. Reasons for share changed
√ Applicable □ Not applicable
169CHANGHONG MEILING CO.LTD. Annual Report 2021
(1) In accordance with the relevant provisions of the Implementation Rules for Share Reduction of Shareholders
Directors Supervisors and Senior Managers of Listed Companies at Shenzhen Stock Exchange if the a director
supervisor or senior manager quits before the expiration of the term of office he/she shall continue to abide by the
relevant provisions on the release of restricted share sales within the term determined when he took office and
within six months after the expiration of his/her term of office. During the reporting period the term of office of
some of the directors supervisors and senior managers of the 9th BOD of the company expired for six months and
the restrictions on sales of total 2029754 shares held by them were lifted.
(2) On November 23 2021 there are 4 shareholders with restricted shares repaid the consideration shares paid in
advance and rights & interests distributed to Meiling Group during the share merger reform amount of 225066
shares in total account for 0.0215% of the total share capital of the Company
At the same time in August 2008 according to the "Reply on Issues Concerning the Free Transfer of Shares Held
by State-owned Shareholders of Hefei Meiling Co. Ltd." issued by the State-owned Assets Supervision and
Administration Commission of the State Council the 34359384 state shares held by Meiling Group (including
the 3360329 state shares advanced by Meiling Group on behalf of other non-tradable shareholders during the
company's share reform) should be transferred to Hefei Xingtai Holdings Group Co. Ltd. (hereinafter referred to
as "Xingtai Holdings") for free. In December 2015 according to the "Reply on Issues Concerning the Free
Transfer of Shares Held by State-owned Shareholders of Hefei Meiling Co. Ltd." issued by the State-owned
Assets Supervision and Administration Commission of the State Council the 49477513 state shares held by
Xingtai Holdings (including 1654112 shares prepaid on behalf of shareholders of other temporarily non-tradable
shares in the reform of non-tradable shares of the company that have not been recovered) should be transferred to
Hefei Industry Investment Holding (Group) Co. Ltd. (hereinafter referred to as "Hefei Industry Investment
Group") free of charge. Therefore the shares advanced by Meiling Group on behalf of other shareholders of
non-tradable shares in the company's share structure reform and the corresponding distribution rights should be
transferred to Hefei Industry Investment Group free of charge.
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
√ Applicable □ Not applicable
During the reporting period four shareholders with restricted shares i.e. the People's Insurance Company (Group)
of China China Life Insurance (Group) Company Ltd. Magang Community Committee of Hefei Longgang
Comprehensive Economic Development Zone and Zhang Yong repaid to Meiling Group 225066 shares of
consideration for share reform that Meiling Group paid in advance in the reform of non-tradable shares of the
Company. On November 23 2021 the procedures for repayment of the shares paid in advance for the
aforementioned reform of non-tradable shares were completed.
170CHANGHONG MEILING CO.LTD. Annual Report 2021
4. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share
attributable to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
5. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In Share
Restricted
Opening Shares shares Sharehol Ending shares released in increased shares Restricted ders Date for released restricted Period in restricted reasons
Period
On October 24 2017 due to job transfer Zhang Xiaolong no
longer served as vice president of the Company. According to
the relevant provisions of the Implementation Rules for Share
Share Reduction of Shareholders Directors Supervisors and Senior
Zhang 363525 0 363525 0 lockup in Managers of Listed Companies at Shenzhen Stock Exchange Xiaolong senior
executives the original term of office should expire on September 12 2020.During the reporting period his/her term of office has expired
for six months and all restrictions on sales of the company's
shares have been lifted.On November 21 2017 due to job transfer Liao Tao no longer
served as vice president of the Company. According to the
relevant provisions of the Implementation Rules for Share
Share Reduction of Shareholders Directors Supervisors and Senior
Liao Tao 528724 0 528724 0 lockup in Managers of Listed Companies at Shenzhen Stock Exchange senior
executives the original term of office should expire on September 12 2020.During the reporting period his/her term of office has expired
for six months and all restrictions on sales of the company's
shares have been lifted.On June 2 2018 due to job transfer Teng Guangsheng no
longer served as director of the Company. According to the
relevant provisions of the Implementation Rules for Share
Share Reduction of Shareholders Directors Supervisors and Senior Teng
Guangsh 66150 0 66150 lockup in Managers of Listed Companies at Shenzhen Stock Exchange
eng senior executives the original term of office should expire on September 12 2020.During the reporting period his/her term of office has expired
for six months and all restrictions on sales of the company's
shares have been lifted.Li Wei 1071355 0 1071355 0 Share
On April 25 2019 due to job transfer Li Wei no longer served
lockup in
171CHANGHONG MEILING CO.LTD. Annual Report 2021
senior as chairman of the Company. According to the relevant
executives provisions of the Implementation Rules for Share Reduction of
Shareholders Directors Supervisors and Senior Managers of
Listed Companies at Shenzhen Stock Exchange the original
term of office should expire on September 12 2020. During the
reporting period his/her term of office has expired for six
months and all restrictions on sales of the company's shares
have been lifted.Total 2029754 0 2029754 0 -- --
II. Securities issuance and listing
(i) Security offering in reporting period (Not including preferred stock)
□ Applicable √ Not applicable
(ii) Explanation on changes of total shares shareholders structure and assets & liability structures
□ Applicable √ Not applicable
(iii) Current shares held by internal staffs
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
(i) Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
Total Total common Total preference shareholders at shareholders with voting shareholders with voting shareholders
at end of the 64872 end of last month 62154 rights recovered at end of 0
rights recovered at end of
last month before annual 0
Period before annual reporting period (if report disclosed applicable) report disclosed (if applicable)
Particulars about shares held above 5% by shareholders or top 10 shares holding
Information
of shares
Total Amount pledged
Nature of Proportion shareholders Changes in of Amount of Full name of Shareholders shareholder of shares at the end report restricted un-restricted
tagged or
held of report period shares shares held frozen
period held
State
of Amount
share
Sichuan Changhong Electric Co. Ltd. State-owned legal person 23.79% 248457724 0 0 248457724 - -
Hefei Industry Investment Holding State-owned
(Group) Co. Ltd. legal person 4.58% 47823401 0 0 47823401 - -
CHANGHONG (HK) TRADING Foreign legal
LIMITED person 2.59% 27077797 0 0 27077797 - -
CAOSHENGCHUN Foreign legal person 1.41% 14766086 0 0 14766086 - -
Ma Guobin Domestic nature 1.06% 11106500 -2124554 0 11106500 - -
172CHANGHONG MEILING CO.LTD. Annual Report 2021
person
Caitong Fund- Ningbo Bank-Haitong Domestic
Xingtai (Anhui) Emerging Industry non-state-owned 1.03% 10733452 0 0 10733452 - -
Investment Fund (Limited Partnership) legal person
Philip Securities (H.K.) Co. Ltd. Foreign legal person 0.60% 6296913 0 0 6296913 - -
Chen Qin Domestic nature person 0.42% 4383888 +3483878 0 4383888 - -
Wang Yumei Domestic nature person 0.40% 4175300 +4175300 0 4175300 - -
Wang Xinzhong Domestic nature person 0.38% 3934940 +3934940 0 3934940 - -
Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if
applicable) Not applicable
Among the above shareholders CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as
Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co. Ltd.; except
the shares of the Company directly held by Hong Kong Changhong 6296913 shares of B-stock are also
held through Phillip Securities (Hong Kong) Co. Ltd. the foregoing shareholders constitute persons of
uniform action. There existed no associated relationship or belong to the concerted actors as specified in the
Explanation on Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listedassociated relationship Companies among Sichuan Changhong Hong Kong Changhong and other top 7 shareholders （Excludingamong the aforesaidshareholders Phillip Securities (Hong Kong) Co. Ltd.); “Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui)Emerging Industry Investment Fund (Limited Partnership)” refers to the products of Caitong Fund
Management Company subscribe for privately placement of 2016; The company neither knows whether
there is any association among other shareholders nor knows whether other shareholders belong to thepersons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure ofChanges in Shareholding of Listed Companies”.Description of the above shareholders in relation to delegate/entrusted voting rights and
Not applicable
abstention from voting rights.Special note on the As of December 31 2021 the Company has repurchased a total of 14288639 shares of the Company
repurchase account through repurchase specific account for repurchase by means of centralized competitive bidding
among the top 10 representing 1.3679% of the total shares capital of the Company. Cancellation of the aforementioned shares
shareholders (if are being completed in Shenzhen Branch of CSDC on March 2 2022
applicable)
Particular about top ten shareholders with un-restrict shares held
Amount of Type of shares
Shareholders’ name unrestricted shares held at Type Amount
end of Period
Sichuan Changhong Electric Co. Ltd. 248457724 RMB ordinary shares 248457724
Hefei Industry Investment Holding (Group) Co. Ltd. 47823401 RMB ordinary shares 47823401
Domestically
CHANGHONG (HK) TRADING LIMITED 27077797 listed foreign 27077797
shares
Domestically
CAO SHENGCHUN 14766086 listed foreign 14766086
shares
Ma Guobin 11106500 RMB ordinary shares 11106500
Caitong Fund- Ningbo Bank-Haitong Xingtai (Anhui) Emerging Industry RMB ordinary
Investment Fund (Limited Partnership) 10733452 shares 10733452
173CHANGHONG MEILING CO.LTD. Annual Report 2021
Domestically
Philip Securities (H.K.) Co. Ltd. 6296913 listed foreign 6296913
shares
Chen Qin 4383888 RMB ordinary shares 4383888
Wang Yumei 4175300 RMB ordinary shares 4175300
Wang Xinzhong 3934940 RMB ordinary shares 3934940
Expiation on associated relationship or
consistent actors within the top 10un-restrict shareholders and between top Found more in “Particulars about shares held above 5% by shareholders or top 10 shares
10 un-restrict shareholders and top 10 holding”
shareholders
As of December 31 2021 among the top 10 common shareholders Ma Guobin holds
Explanation on top ten common 10871600 shares of the Company through customer credit trading secured account of
shareholders involving margin business (if Founder Securities Co. Ltd. and 234900 shares hold through common securities
applicable) account thus 11106500 shares of the Company are held in total. The shareholder-Wang Xinzhong holds 3934940 shares of the Company through customer credit trading
secured account of Sinolink Securities Co. Ltd.Note 1: At end of the reporting period the person acting in concert with controlling shareholder Sichuan Changhong--
CHANGHONG (HK) TRADING LIMITED holds B-stock of the Company as 33374710 shares among which 6296913 shares
are held through Philip Securities (H.K.) Co. Ltd. by CHANGHONG (HK) TRADING LIMITED
Note 2: In the above table "Particulars about shares held above 5% by shareholders or top 10 shares holding" is subject to the data on
stock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch
Whether the top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted
conditions have made the repurchase transactions as agreed during the reporting period.□Yes √ No
The top ten ordinary shareholders of the company and the top 10 ordinary shareholders of unrestricted conditions
have not made the repurchase transactions as agreed during the reporting period.(ii) Controlling shareholder of the Company
1. Nature of controlling shareholders: local state-owned holding
2. Type of controlling shareholders: legal person
Controlling Legal
Dated Organization
shareholders’ rep./person in Main business
founded code
name charge of unit
Manufactures sales and maintenance of household appliance automotive electrical
appliance Electronic products and spare parts communications equipment
lighting equipment household products computer and other Electronic equipment
Sichuan
specialized equipment of Electronic and Electronic Electronic machinery and
Changhong 91510700205
Zhao Yong 1993-4-8 equipment series products of batteries Electronic medicine products Electronic
Electric Co. 412308D
equipment mechanical equipment Refrigeration equipment and accessories digital
Ltd.monitoring products metal products apparatus and instruments culture and office
machines culture and education and sports products kitchen cabinet and gas
appliance; house and equipment rental; packing products and technical services; road
174CHANGHONG MEILING CO.LTD. Annual Report 2021
transportation; storage and discharging convey; R&D sales and services of integrated
circuit and software; consultancy and services of enterprise management; hi-tech
project investment and other state-permitted business; development and operation of
property; engineering construction for house and buildings; callback and disposal of
obsolete appliance and Electronic products; services of Information Technology;
consultancy and services of finance; sales relevant import and export business of
Chemical raw materials and products(Not contain dangerous chemicals) building
materials non-ferrous metal Steel plastics packing material mechanical and
electrical equipment Precious metals Automotive components Electronic
components Value added telecommunication service agent service of
telecommunication; designing manufacturing releasing and agency for the
advertisement; Radio and television program production; Internet information services
(excluding investment finance and securities); audio and video production and
services; R&D and design of the drone and unmanned aerial vehicle system as well as
the promotion of drone technology; transfer and technical consulting service
production and sales of drone (any projects that needs permission by the law should
subject to the approval by relevant authority )
1. Ended as 31 December 2021 Sichuan Changhong directly holds 212994972 shares of Changhong Huayi
Compressor Co. Ltd. (Stock code: 000404)- a company listed on the main board of the Shenzhen Stock Exchange
Equity controlling and accounting for 30.60% of the equity of Changhong Huayi Compressor Co. Ltd.jointly of other 2. Ended as 31 December 2021 Sichuan Changhong directly and indirectly holds 1990518000 ordinary shares and
foreign/domestic listed preferred shares in total of Changhong Jiahua Holdings Co. Ltd. (Stock code: 03991) - a company listed on the main
company by controlling board of Hong Kong Stock Exchange accounting for 77.44% of the whole ordinary shares and preferred shares under
shareholder in reporting the name of Changhong Jiahua Holdings Co. Ltd.period 3. Ended as 31 December 2021 Sichuan Changhong directly holds 68000000 shares of Sichuan Changhong Minsheng
Logistics Co. Ltd (stock code:836237)- the company with shares transferring in National Equities Exchange and
Quotations accounting for 55.399% of the equity of Sichuan Changhong Minsheng Logistics Co. Ltd.
3. Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.(iii) Actual controller of the Company and its person acting in concert
1. Nature of actual controller: local state-owned assets management
2. Type of actual controller: legal person
Legal
Dated
Actual controller rep./person in Organization code Main business
founded
charge of unit
State-owned Assets Supervision &
State-owned Assets Supervision &
Administration Commission of Mianyang
Administration Commission of Mianyang -- -- --
Municipality is entrusted by the same level
Municipality
government together performs decision-making
175CHANGHONG MEILING CO.LTD. Annual Report 2021
and management of state-owned asset owners
and is one organization which executes
comprehensive management and supervision on
its belonged state-owned assets.Equity controlling of other
foreign/domestic listed company by Not applicable
actual controller in reporting period
3. Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
4. Property rights and the block diagram of the control relationship between the Company and the actual control
(ended as 31st December 2021)
State-owned Assets Supervision & Administration
Sichuan Provincial Finance Department Commission of Mianyang Municipality
90%
10%
Sichuan Changhong Electronics Holding Group Co. Ltd.
23.22%
Sichuan Changhong Electric Co. Ltd.
100%
CHANGHONG (HK) TRADING LIMITED 23.79%
3.19%
Changhong Meiling Co. Ltd.
5. Actual controller controlling the Company by means of entrust or other assets management
□ Applicable √ Not applicable
(iv) The total number of shares pledged by controlling shareholders or the first majority shareholder and
its persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
(v) Other legal person’s shareholders with over ten percent shares held
□ Applicable √ Not applicable
(vi) Limitation and reducing the holdings of shares of controlling shareholders actual controllers
176CHANGHONG MEILING CO.LTD. Annual Report 2021
restructuring side and other commitment subjects
□ Applicable √ Not applicable
IV. The specific implementation of shares repurchased/buy-back during the reporting period
(i) Implementation progress of shares buy-back
√ Applicable □ Not applicable
177CHANGHONG MEILING CO.LTD. Annual Report 2021
The ratio of the
number of shares
Scheme disclosure Number of shares to be Percentage of Amount to be Proposed Quantity repurchased to the
time repurchased/buy-back total share repurchase/buy-back Purpose repurchased/buy-back underlying shares capital repurchased/buy-back period (shares) involved in the
equity incentive
plan (if applicable)
Buy-back of the B-share will be
2020-7-28 25074181 shares-50148363 Not less than 50 million 2.40%-4.80% yuan and not more than 18 August 2020 to
canceled in accordance with the
shares 18 February 2022 laws and registered capital of the 14674166 - 2021-8-25 100 million yuan. Company will be reduced
accordingly
Note: The company’s 40th session of the 9th BOD the 21st session of the 9th BOS and the 3rd extraordinary general meeting of shareholders in 2020 held on July 27 2020 and August 18 2020
deliberated and approved the Proposal on the Repurchase of Part of Domestically Listed Foreign Shares (B Shares) of the Company. With purpose of continuing the implementation of B-share
repurchase the Continue Implementation and Adjustment Partially of the Repurchase Program of Certain Domestic Listed Foreign Shares (B Share) was deliberated and approved by the 11th
session of 10th BOD 9th session of 10th BOS and Third Extraordinary Shareholders General Meeting of 2021 dated August 24 2021 and September 10 2021. Found more on announcement
(Notice No.:2020-047 2020-048 2020-049 2020-063 2020-066 2020-067 2020-068 2020-069 and 2021-075) released on appointed media China Securities Journal Securities Times Hong
Kong Commercial Daily and Juchao Website.The company repurchased its shares for the first time from November 4 2020 to February 18 2022 and repurchased 14674166 shares of the company by centralized bidding through a
dedicated securities account for repurchase accounting for 1.4048% of the company’s total share capital the highest transaction price was HK$2.36/share the lowest transaction price was
HK$1.87/share and the total amount of self-owned funds paid was HK$32558454.08 (excluding transaction fees such as stamp duty and commission). Cancellation of the aforementioned
shares are being completed in Shenzhen Branch of CSDC on March 2 2022 found more on announcement (Notice No.:2022-011) released on appointed media China Securities Journal
Securities Times Hong Kong Commercial Daily and Juchao Website.(ii) Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
178CHANGHONG MEILING CO.LTD. Annual Report 2021
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
179CHANGHONG MEILING CO.LTD. Annual Report 2021
Section IX. Bonds
□ Applicable √ Not applicable
180CHANGHONG MEILING CO.LTD. Annual Report 2021
Section X. Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date for signing the report 2022-03-29
Name of audit institute Shine Wing Certified Public Accountants (LLP)
Serial of Auditing Report XYZH/2022CDAA70131
Name of CPA Li Xifu Wang Xiaodong
Auditor’s Report
XYZH/2022CDAA70131
To Shareholders of Changhong Meiling Co. Ltd.:
I. Auditor’s opinion
We as the auditors audited the financial statements of Changhong Meiling Co. Ltd. (the “Company”) which
included the consolidated balance sheet as of 31 December 2021 the consolidated statement of income the
consolidated statement of cash flow and the consolidated statement of changes in equity of the Company for
Current Year ended 31 December 2021 together with the relevant notes thereto.We are the view that the attached financial statements are prepared in accordance with the Business Accounting
Standards in all material aspects which reflect fairly the consolidated financial position of the Company as of 31
December 2021 and the operating results and cash flow of the Company for Current Year of 2021.II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of
the PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the
audit report has further clarified our responsibilities under these standards. Pursuant to the code of professional
conduct as certified public accountant in the PRC we are independent of the Company and have performed other
responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is
sufficient and adequate which provides foundation for us to issue audit opinion.III. Key audit issues
Key audit matters are those matters that in our professional judgment were of most significance in our audit of
181CHANGHONG MEILING CO.LTD. Annual Report 2021
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on
these matters. The key audit matter we identified is as follows:
1.Recognition of revenue
Please refer to note (iv) 28 and note (vi) 43.Key audit matters Audit address
Main auditing procedures for revenue recognition are including:
1) know and test the cycle internal control of sales and collection to assess
the design and effectiveness of the internal control;
2) understand the business substance inspect significant sales contract and
Sales revenue of the Company was mainly the corresponding sales invoice on a random basis receipt of notes
sourced from sales of refrigerator air delivery information confirmed through systems verify that whether
conditioner small household appliances and revenue was recognized upon satisfaction of required conditions and
kitchen and washing machines to both domestic whether the revenue recognition was made in right timing and verify that
and overseas customers. As indicated in note whether profit was adjusted through aggressive sales policy;
(vi) 43 of the financial statement - Operating 3) Carry out supervision and other procedures to the important inventory at
income and cost the operating income was end of the period well-known the progress of the contracts and follow up
RMB18032957501.44 in 2021. Since the the abnormal situations found in inspection;
truthfulness and completeness of revenue 4) Conduct inquiry through issue of letters and carry out additional audit
recognition has material impact on operating procedures for the items for which reply was abnormal;
results we attached great importance to 5) review collection of trade receivables confirm the conformity between
recognition of sales revenue. the entities owing receivables and name of customers to verify whether
there was collection of receivables from third parties to review the
truthfulness of the collection and revenue;
6) review collection of receivables in subsequent period;
7) make cut-off test and analysis re-review on revenue.
2.Capitalization of development expense
Please refer to note (iv)21 and note (vi) 17
Key audit matters Audit address
1) Understand the key control of capitalization of development
The development expense occurred for research expenditures implement internal control audit procedures understand the
and development of non-patent technology in scope and accounting methods of development expenditures understand and
2021 was RMB 185278347.99 which was make research and development on related control systems and processes
capitalized and accounted for as development and test the effectiveness of relevant internal control design and operation;
expense in the consolidated financial statement. 2) Implementation: compare the developed projects in intangible assets
Development expense could only be capitalized with machinery models for external sales and re-verify the truthfulness of
upon satisfaction of all the capitalization capitalization of completely developed projects
conditions set out in note (iv) 21 to the
financial statement. Since to confirm whether
all the capitalization conditions are met requires 3) Dual purpose testing: inspect the project reports and inspection and
the management to make significant judgment acceptance reports formed during the research and development and
and estimate we deem this matter important in commercialization of developed products and judge the sufficiency of basis
the context of our audit. for accounting of development expense
IV. Other information
The management of Changhong Meiling Co. Ltd. (the “Management”) is responsible for other information which
includes the information covered in the Company’s 2021 annual report excluding the financial statement and our
audit report.The audit opinion issued by us for the financial statement has not covered other information for which we do not
182CHANGHONG MEILING CO.LTD. Annual Report 2021
issue any form of assurance opinions.Considering our audit on financial statements we are liable to read other information during which we shall
consider whether other information differs materially from the financial statements or that we understand during
our audit or whether there is any material misstatement.Based on the works executed by us we should report the fact if we find any material misstatement in other
information. In t his regards we have nothing to report.V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation and for the design establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material
misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to
continue as a going concern disclosing matters related to going concern and using the going concern assumption
unless the management either intends to liquidate the Company or to cease operations or has no realistic
alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement whether due to fraud or error and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) identify and assess the risks of material misstatement of the financial statements whether due to fraud or error
design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
183CHANGHONG MEILING CO.LTD. Annual Report 2021
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and based on the
audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists we are required by the CAS to draw users’ attention in audit report to the related disclosures in
the financial statements or if such disclosures are inadequate to modify audit opinion. Our conclusions are based
on the information obtained up to the date of audit report. However future events or conditions may cause the
Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction supervision and performance of the group audit. We remain solely responsible for audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and
timing of the audit and significant audit findings including any significant deficiencies in internal control that we
identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence related safeguard measures.From the matters communicated with those charged with governance we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosure
about the matter or when in extremely rare circumstances we determine that a matter should not be
communicated in the auditor’s report because of the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.Shine Wing Certified Public Accountants Chinese CPA:Li XiFu (engagement partner)
(LLP)
184CHANGHONG MEILING CO.LTD. Annual Report 2021
Chinese CPA: Wang XiaoDong
Beijing China 29 March 2022
185CHANGHONG MEILING CO.LTD. Annual Report 2021
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO. LTD. December 31 2021
In RMB
Item December 31 2021 December 31 2020
Current assets:
Monetary funds 5938823396.21 6594786789.98
Settlement provisions
Capital lent
Trading financial assets 17997086.19 47242339.07
Derivative financial assets
Note receivable 2216752.22 340421386.71
Account receivable 1440874691.28 1130275780.66
Receivable financing 1808109301.56 1632388702.83
Accounts paid in advance 29766797.34 30105373.40
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 111652635.86 145705978.26
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 1356357419.80 1715354951.43
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 124240934.45 198353464.98
Total current assets 10830039014.91 11834634767.32
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 86631660.53 76982822.38
Investment in other equity instrument
Other non-current financial assets 581980440.70 548148931.34
Investment real estate 53149934.45 53888462.00
Fixed assets 2303122699.92 2391859440.31
Construction in progress 98469862.45 60775088.96
Productive biological asset
Oil and gas asset
Right-of-use assets 45367918.31
186CHANGHONG MEILING CO.LTD. Annual Report 2021
Intangible assets 953403100.33 936851520.65
Expense on Research and Development 87728990.86 73028441.56
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 147488353.28 127185979.94
Other non-current asset 3087780.59
Total non-current asset 4360430741.42 4268720687.14
Total assets 15190469756.33 16103355454.46
Current liabilities:
Short-term loans 622874652.77 1336209050.55
Loan from central bank
Capital borrowed
Trading financial liability 12304272.41 4584076.51
Derivative financial liability
Note payable 4839837317.78 4439607982.34
Account payable 2299103796.88 2851999684.30
Accounts received in advance
Contractual liability 515004115.23 522550891.28
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 247044421.56 290321776.05
Taxes payable 141874861.88 89682433.90
Other account payable 751452768.00 724701686.72
Including: Interest payable
Dividend payable 4753764.56 4466628.25
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 332718478.25 407825150.74
Other current liabilities 24373759.16 22923698.73
Total current liabilities 9786588443.92 10690406431.12
Non-current liabilities:
Insurance contract reserve
Long-term loans 168000000.00 188231439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 33225912.15
Long-term account payable 1337643.24 1705323.91
Long-term wages payable 9828300.06 10571526.69
Accrual liability 11363601.63 62392735.07
Deferred income 175664038.83 177377450.12
Deferred income tax liabilities 9670435.45 10575582.33
187CHANGHONG MEILING CO.LTD. Annual Report 2021
Other non-current liabilities
Total non-current liabilities 409089931.36 450854057.42
Total liabilities 10195678375.28 11141260488.54
Owner’s equity:
Share capital 1044597881.00 1044597881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2682829400.26 2683837229.12
Less: Inventory shares 26430571.38 9929336.18
Other comprehensive income -20903270.57 -21451084.17
Reasonable reserve
Surplus public reserve 423111236.90 416364790.43
Provision of general risk
Retained profit 734129724.00 740754202.23
Total owner’ s equity attributable to parent
company 4837334400.21 4854173682.43
Minority interests 157456980.84 107921283.49
Total owner’ s equity 4994791381.05 4962094965.92
Total liabilities and owner’ s equity 15190469756.33 16103355454.46
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
Item December 31 2021 December 31 2020
Current assets:
Monetary funds 3423276377.52 4605962184.11
Trading financial assets 7200222.04 37589391.07
Derivative financial assets
Note receivable 330000.00 286990200.00
Account receivable 1582651896.25 1019299017.40
Receivable financing 1484609403.08 1561429139.80
Accounts paid in advance 48212105.70 39571728.09
Other account receivable 40708614.68 49093918.57
Including: Interest receivable
Dividend receivable
Inventories 351523851.67 578905855.30
Contractual assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 28957697.04 142573164.77
188CHANGHONG MEILING CO.LTD. Annual Report 2021
Total current assets 6967470167.98 8321414599.11
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1882557241.66 1834115835.95
Investment in other equity instrument
Other non-current financial assets 581980440.70 548148931.34
Investment real estate 3752737.75 3961590.38
Fixed assets 1209058847.63 1229803474.56
Construction in progress 50287155.16 47570309.13
Productive biological assets
Oil and natural gas assets
Right-of-use assets 18632705.13
Intangible assets 477739048.08 479923618.32
Research and development costs 44387584.10 42913363.51
Goodwill
Long-term deferred expenses
Deferred income tax assets 125174589.66 103462284.33
Other non-current assets 638649.57
Total non-current assets 4394208999.44 4289899407.52
Total assets 11361679167.42 12611314006.63
Current liabilities:
Short-term borrowings 612863194.44 1234926592.05
Trading financial liability 5766743.33 2512269.00
Derivative financial liability
Notes payable 2409104654.05 2510288511.69
Account payable 1356405016.24 1918960127.71
Accounts received in advance
Contractual liability 238437143.59 281974752.24
Wage payable 42679625.89 130314834.51
Taxes payable 20596813.11 19582700.30
Other accounts payable 909832533.11 624090798.72
Including: Interest payable
Dividend payable 4153764.56 3866628.25
Liability held for sale
Non-current liabilities due within one year 322202348.59 407141888.08
Other current liabilities 6703328.85 6432113.43
Total current liabilities 5924591401.20 7136224587.73
Non-current liabilities:
Long-term loans 168000000.00 188231439.30
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 17114473.86
Long-term account payable
189CHANGHONG MEILING CO.LTD. Annual Report 2021
Long term employee compensation
payable 8760963.52 10571526.69
Accrued liabilities 7539547.19 55035910.31
Deferred income 82658197.54 67315337.57
Deferred income tax liabilities 6131087.92 6102908.01
Other non-current liabilities
Total non-current liabilities 290204270.03 327257121.88
Total liabilities 6214795671.23 7463481709.61
Owners’ equity:
Share capital 1044597881.00 1044597881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2753002178.30 2753137787.99
Less: Inventory shares 26430571.38 9929336.18
Other comprehensive income
Special reserve
Surplus reserve 422893071.22 416146624.75
Retained profit 952820937.05 943879339.46
Total owner’s equity 5146883496.19 5147832297.02
Total liabilities and owner’s equity 11361679167.42 12611314006.63
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
Item 2021 2020
I. Total operating income 18032957501.44 15388050229.67
Including: Operating income 18032957501.44 15388050229.67
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 18104531071.96 15602345607.20
Including: Operating cost 15869745814.47 12850871672.57
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 129067764.08 150315512.44
190CHANGHONG MEILING CO.LTD. Annual Report 2021
Sales expense 1364640404.75 1945803799.56
Administrative expense 333588775.37 280245684.56
R&D expense 465891096.09 380638922.91
Financial expense -58402782.80 -5529984.84
Including: Interest expenses 71229760.29 88262152.17
Interest income 140024813.71 139603245.84
Add: Other income 108992292.09 104122180.27
Investment income (Loss is listed with “-”) 128963968.59 78127214.62
Including: Investment income on affiliated company and
joint venture 12422382.59 -3500527.61
The termination of income recognition for financial
assets measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listed with “-”)
Income from change of fair value (Loss is listed with “-”) -3133939.42 41614800.19
Loss of credit impairment (Loss is listed with “-”) -20983896.93 -17058488.00
Losses of devaluation of asset (Loss is listed with “-”) -57484042.03 -78711657.91
Income from assets disposal (Loss is listed with “-”) -133214.72 -500976.21
III. Operating profit (Loss is listed with “-”) 84647597.06 -86702304.57
Add: Non-operating income 10022053.88 8468605.41
Less: Non-operating expense 5154068.50 7644641.64
IV. Total profit (Loss is listed with “-”) 89515582.44 -85878340.80
Less: Income tax expense 2422928.94 -6756228.32
V. Net profit (Net loss is listed with “-”) 87092653.50 -79122112.48
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 87092653.50 -79122112.48
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 51898388.84 -85565716.91
2.Minority shareholders’ gains and losses 35194264.66 6443604.43
VI. Net after-tax of other comprehensive income 615920.12 -2992457.19
Net after-tax of other comprehensive income attributable to owners
of parent company 547813.60 -2519653.81
(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 547813.60 -2519653.81
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
191CHANGHONG MEILING CO.LTD. Annual Report 2021
4.Credit impairment provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences arising on translation of foreign 547813.60 -2519653.81
currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to 68106.52 -472803.38
minority shareholders
VII. Total comprehensive income 87708573.62 -82114569.67
Total comprehensive income attributable to owners of parent 52446202.44 -88085370.72
Company
Total comprehensive income attributable to minority 35262371.18 5970801.05
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0497 -0.0819
(ii) Diluted earnings per share 0.0497 -0.0819
As for the enterprise combined under the same control net profit of 0 yuan achieved by the merged party before combination while 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 2021 2020
I. Operating income 7828290567.95 8032949961.07
Less: Operating cost 7466472403.87 7576052272.85
Taxes and surcharge 43312819.31 77270806.49
Sales expenses 114547496.48 266179349.65
Administration expenses 130167084.29 121576790.77
R&D expenses 191827388.68 165977897.35
Financial expenses -20256595.92 11164234.35
Including: Interest expenses 57761266.90 73229668.93
Interest income 81650131.24 108915320.16
Add: Other income 58148812.31 61723009.62
Investment income (Loss is listed with “-”) 92743182.98 154731621.05
Including: Investment income on affiliated Company and 14597022.15 2444675.51
joint venture
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 “-”) 187866.00 35734549.41
Loss of credit impairment (Loss is listed with “-”) -412613.92 -8516361.52
Losses of devaluation of asset (Loss is listed with “-”) -9191483.58 -25062192.29
Income on disposal of assets (Loss is listed with “-”) 14752.64
II. Operating profit (Loss is listed with “-”) 43710487.67 33339235.88
192CHANGHONG MEILING CO.LTD. Annual Report 2021
Add: Non-operating income 2837084.03 3765462.09
Less: Non-operating expense 767232.46 1578179.79
III. Total Profit (Loss is listed with “-”) 45780339.24 35526518.18
Less: Income tax -21684125.42 -20252784.15
IV. Net profit (Net loss is listed with “-”) 67464464.66 55779302.33(i) continuous operating net profit (net loss listed with ‘-”) 67464464.66 55779302.33(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 67464464.66 55779302.33
VII. Earnings per share:
(i) Basic earnings per share 0.0646 0.0534
(ii) Diluted earnings per share 0.0646 0.0534
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 2021 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 18267890783.43 15474524946.52
Net increase of customer deposit and interbank deposit
Net increase of loan from central bank
193CHANGHONG MEILING CO.LTD. Annual Report 2021
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 611293022.30 486548522.92
Other cash received concerning operating activities 243549134.14 159076641.25
Subtotal of cash inflow arising from operating activities 19122732939.87 16120150110.69
Cash paid for purchasing commodities and receiving labor
service 16131183801.59 12027673706.26
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 1643453647.47 1431514956.02
Taxes paid 378617838.78 399508941.22
Other cash paid concerning operating activities 808554393.93 857936284.73
Subtotal of cash outflow arising from operating activities 18961809681.77 14716633888.23
Net cash flows arising from operating activities 160923258.10 1403516222.46
II. Cash flows arising from investing activities:
Cash received from recovering investment 1809000000.00 937460000.00
Cash received from investment income 27234864.16 44100269.99
Net cash received from disposal of fixed intangible and other
long-term assets 1790401.44 1193743.37
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 251294914.65 188247281.95
Subtotal of cash inflow from investing activities 2089320180.25 1171001295.31
Cash paid for purchasing fixed intangible and other long-term
assets 262327894.22 364989816.21
Cash paid for investment 1809000001.00 1435330051.17
Net increase of mortgaged loans
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 68334.39 986271.84
Subtotal of cash outflow from investing activities 2071396229.61 1801306139.22
Net cash flows arising from investing activities 17923950.64 -630304843.91
III. Cash flows arising from financing activities:
Cash received from absorbing investment 16650992.51
Including: Cash received from absorbing minority shareholders’
investment by subsidiaries 16650992.51
Cash received from loans 1669454955.26 2021603483.37
Other cash received concerning financing activities 14136579.91 28151427.20
Subtotal of cash inflow from financing activities 1700242527.68 2049754910.57
194CHANGHONG MEILING CO.LTD. Annual Report 2021
Cash paid for settling debts 2320384722.05 1617428204.65
Cash paid for dividend and profit distributing or interest paying 102019282.33 118512956.15
Including: Dividend and profit of minority shareholder paid by
subsidiaries 1598892.00 4796676.00
Other cash paid concerning financing activities 28323542.28 12542832.06
Subtotal of cash outflow from financing activities 2450727546.66 1748483992.86
Net cash flows arising from financing activities -750485018.98 301270917.71
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate -13697073.29 -34759956.67
V. Net increase of cash and cash equivalents -585334883.53 1039722339.59
Add: Balance of cash and cash equivalents at the period -begin 6425529815.10 5385807475.51
VI. Balance of cash and cash equivalents at the period -end 5840194931.57 6425529815.10
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 2021 2020
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
services 6992278846.46 7102136613.89
Write-back of tax received 367247994.85 237614998.44
Other cash received concerning operating activities 104028498.51 74421463.54
Subtotal of cash inflow arising from operating activities 7463555339.82 7414173075.87
Cash paid for purchasing commodities and receiving labor
service 7483098738.97 5957461284.93
Cash paid to/for staff and workers 470465273.15 380635018.64
Taxes paid 44871430.22 93192598.56
Other cash paid concerning operating activities 265530268.75 219564169.05
Subtotal of cash outflow arising from operating activities 8263965711.09 6650853071.18
Net cash flows arising from operating activities -800410371.27 763320004.69
II. Cash flows arising from investing activities:
Cash received from recovering investment 1700000000.00 902460000.00
Cash received from investment income 27492076.57 112286752.95
Net cash received from disposal of fixed intangible and other
long-term assets 1257706.09 761361.40
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities 153610973.82 159391407.68
Subtotal of cash inflow from investing activities 1882360756.48 1174899522.03
Cash paid for purchasing fixed intangible and other long-term
assets 166190792.44 153996525.53
Cash paid for investment 1735000000.00 1542169149.17
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities 197627.47 262000.00
195CHANGHONG MEILING CO.LTD. Annual Report 2021
Subtotal of cash outflow from investing activities 1901388419.91 1696427674.70
Net cash flows arising from investing activities -19027663.43 -521528152.67
III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 1659454955.26 1593705833.37
Other cash received concerning financing activities 532028797.36 208756128.75
Subtotal of cash inflow from financing activities 2191483752.62 1802461962.12
Cash paid for settling debts 2219678042.05 1197397944.82
Cash paid for dividend and profit distributing or interest paying 98533426.01 103355298.99
Other cash paid concerning financing activities 224952054.90 143243602.49
Subtotal of cash outflow from financing activities 2543163522.96 1443996846.30
Net cash flows arising from financing activities -351679770.34 358465115.82
IV. Influence on cash and cash equivalents due to fluctuation in
exchange rate -11424039.40 -20153571.24
V. Net increase of cash and cash equivalents -1182541844.44 580103396.60
Add: Balance of cash and cash equivalents at the period -begin 4597503833.78 4017400437.18
VI. Balance of cash and cash equivalents at the period -end 3414961989.34 4597503833.78
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
196CHANGHONG MEILING CO.LTD. Annual Report 2021
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
2021
Owners’ equity attributable to the parent Company
Other
equity instrument Prov
Item Reas
Perpet Less: Other onab
ision Minority Total owners’
Share capital of ual Capital reserve Inventory comprehensive le Surplus reserve Retained profit Other Subtotal interests equity Preferre capital Other shares income reser
gene
d stock ral securit ve risk
ies
I. The ending
balance of the 1044597881.00 2683837229.12 9929336.18 -21451084.17 416364790.43 740754202.23 4854173682.43 107921283.49 4962094965.92
previous year
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. The
beginning
balance of the 1044597881.00 2683837229.12 9929336.18 -21451084.17 416364790.43 740754202.23 4854173682.43 107921283.49 4962094965.92
current year
III. Increase/
Decrease in
the period -1007828.86 16501235.20 547813.60 6746446.47 -6624478.23 -16839282.22 49535697.35 32696415.13
(Decrease is
listed with “-”)
(i) Total 547813.60 51898388.84 52446202.44 35262371.18 87708573.62
comprehensiv
197CHANGHONG MEILING CO.LTD. Annual Report 2021
e income
(ii) Owners’
devoted and
decreased -1007828.86 16501235.20 -17509064.06 15872218.17 -1636845.89
capital
1.Common
shares
invested by -5438.39 16501235.20 -16506673.59 15000000.00 -1506673.59
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other -1002390.47 -1002390.47 872218.17 -130172.30
(iii) Profit
distribution 6746446.47 -58522867.07 -51776420.60 -1598892.00 -53375312.60
1. Withdrawal
of surplus 6746446.47 -6746446.47
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -51776420.60 -51776420.60 -1598892.00 -53375312.60
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
198CHANGHONG MEILING CO.LTD. Annual Report 2021
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Carry-over
retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensiv
e income
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 1044597881.00 2682829400.26 26430571.38 -20903270.57 423111236.90 734129724.00 4837334400.21 157456980.84 4994791381.05
period
Last Period
In RMB
2020
Item Owners’ equity attributable to the parent Company Minority Total owners’
Share capital Other Capital reserve Less: Other Reasonable Surplus reserve Provision Retained profit Other Subtotal interests equity
199CHANGHONG MEILING CO.LTD. Annual Report 2021
equity instrument Inventory comprehensive reserve of
shares income general
Preferred Perpetual risk
stock capital Other securities
I. The ending
balance of the 1044597881.00 2684366619.10 -18931430.36 410786860.20 884127743.42 5004947673.36 107027038.74 5111974712.10
previous year
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. The
beginning
balance of the 1044597881.00 2684366619.10 -18931430.36 410786860.20 884127743.42 5004947673.36 107027038.74 5111974712.10
current year
III. Increase/
Decrease in
the period -529389.98 9929336.18 -2519653.81 5577930.23 -143373541.19 -150773990.93 894244.75 -149879746.18
(Decrease is
listed with “-”)
(i) Total
comprehensive -2519653.81 -85565716.91 -88085370.72 5970801.05 -82114569.67
income
(ii) Owners’
devoted and
decreased -529389.98 9929336.18 -10458726.16 320119.70 -10138606.46
capital
1.Common
shares
invested by -5605.38 9929336.18 -9934941.56 -9934941.56
shareholders
2. Capital
invested by
200CHANGHONG MEILING CO.LTD. Annual Report 2021
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other -523784.60 -523784.60 320119.70 -203664.90
(iii) Profit
distribution 5577930.23 -57807824.28 -52229894.05 -5396676.00 -57626570.05
1. Withdrawal
of surplus 5577930.23 -5577930.23
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or -52229894.05 -52229894.05 -5396676.00 -57626570.05
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Carry-over
201CHANGHONG MEILING CO.LTD. Annual Report 2021
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 1044597881.00 2683837229.12 9929336.18 -21451084.17 416364790.43 740754202.23 4854173682.43 107921283.49 4962094965.92
period
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
2021
Other
Item equity instrument Less: Other
Share capital Capital reserve Inventory Reasonable Total owners’ comprehensive Surplus reserve Retained profit Other
Preferred Perpetual shares reserve equity Other income
stock capital
202CHANGHONG MEILING CO.LTD. Annual Report 2021
securities
I. The ending balance of
the previous year 1044597881.00 2753137787.99 9929336.18 416146624.75 943879339.46 5147832297.02
Add: Changes of
accounting policy
Error correction of
the last period
Other
II. The beginning
balance of the current 1044597881.00 2753137787.99 9929336.18 416146624.75 943879339.46 5147832297.02
year
III. Increase/ Decrease
in the period (Decrease -135609.69 16501235.20 6746446.47 8941597.59 -948800.83
is listed with “-”)
(i) Total comprehensive
income 67464464.66 67464464.66
(ii) Owners’ devoted and
decreased capital -135609.69 16501235.20 -16636844.89
1.Common shares
invested by shareholders -5438.39 16501235.20 -16506673.59
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other -130171.30 -130171.30
(iii) Profit distribution 6746446.47 -58522867.07 -51776420.60
1. Withdrawal of surplus
reserves 6746446.47 -6746446.47
2. Distribution for
owners (or shareholders) -51776420.60 -51776420.60
3. Other
(iv) Carrying forward
internal owners’ equity
1. Capital reserves
conversed to capital
203CHANGHONG MEILING CO.LTD. Annual Report 2021
(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 period 1044597881.00 2753002178.30 26430571.38 422893071.22 952820937.05 5146883496.19
Last period
In RMB
2020
Other
equity instrument
Item Less: Other
Share capital Capital reserve Inventory Reasonable Total owners’ Perpetual comprehensive Surplus reserve Retained profit Other
Preferred reserve equity
capital Other shares income
stock
securities
I. The ending balance of
the previous year 1044597881.00 2753017007.10 410568694.52 945907861.41 5154091444.03
Add: Changes of
accounting policy
Error correction of
the last period
Other
204CHANGHONG MEILING CO.LTD. Annual Report 2021
II. The beginning balance
of the current year 1044597881.00 2753017007.10 410568694.52 945907861.41 5154091444.03
III. Increase/ Decrease in
the period (Decrease is 120780.89 9929336.18 5577930.23 -2028521.95 -6259147.01
listed with “-”)
(i) Total comprehensive
income 55779302.33 55779302.33
(ii) Owners’ devoted and
decreased capital 120780.89 9929336.18 -9808555.29
1.Common shares
invested by shareholders -5605.38 9929336.18 -9934941.56
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other 126386.27 126386.27
(iii) Profit distribution 5577930.23 -57807824.28 -52229894.05
1. Withdrawal of surplus
reserves 5577930.23 -5577930.23
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
205CHANGHONG MEILING CO.LTD. Annual Report 2021
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 period 1044597881.00 2753137787.99 9929336.18 416146624.75 943879339.46 5147832297.02
Legal Representative: Wu Dinggang
Person in charge of accounting works: Pang Haitao
Person in charge of accounting institute: Yang Jun
206Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
I. Company profile
Changhong Meiling Co. Ltd (hereinafter referred to as “the Company”) ，originally named as Hefei MeilingCo. Ltd. is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General
Factory and approved on June 12th 1992 through [WanTiGaiHanZi (1992) No.039] issued by original
Mechanism Reform Committee of Anhui Province. On August 30th 1993 through Anhui Provincial
Government [Wanzhenmi (1993) No.166] and re-examination of China Securities Regulatory Commission
the Company made first public issue for 30 million A shares and the Company was listed on Oct. 18th 1993
in Shenzhen Stock Exchange. On August 13th 1996 the Company was approved to issue 100 million B
shares to investors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory
Commission. The Company went public in Shenzhen Stock Exchange on August 28th 1996.State-owned Assets Supervision & Administration Commission of the State Council approved such transfers
with Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings Limited
Transferring Partial State-owned Ownership Hefei Meiling Group Holdings Limited (hereinafter referred to
as Meiling Group) transferred its holding 37852683 shares in 82852683 state-owned shares of the
Company to Sichuan Changhong Electronic Group Co. Ltd (hereinafter referred to as Changhong Group)
other 45000000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan
Changhong). On Aug 15 2007 the above ownership was transferred and Cleaning Corporation Limited.On 27 August 2007 State-owned Assets Supervision & Administration Commission of Anhui ProvincialGovernment replied with Document [WGZCQH (2007) No.309] Reply on “Related Matters of Share MergerReform of Hefei Meiling Co. Ltd.” agreed the Company’s ownership split reform plan. The Company made
consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares and original
Meiling Group made prepayment 3360329 shares for some non-tradable share holders as consideration for
split reform plan.On 29 May 2008 concerning 34359384 state-owned shares (including 3360329 shares paid for other
non-tradable shareholders by original Meiling Group in share reform) held by 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 signed Agreement on Equity Transfer of Hefei Meiling Co. Ltd
with Sichuan Changhong in which 32078846 tradable A-shares with conditional subscription of theCompany (accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008 “Replyof Transfer Freely of Part of the Shares of Hefei Meiling Co. Ltd. held by State-owned shareholders”
[GZCQ (2008) No. 1413] issued by SASAC agrees the above said share transferring.
119Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise 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 [ZJXK (2010) No. 1715] from
CSRC totally 116731500 RMB ordinary shares (A stock) were offering privately to target investors with
issue price of RMB 10.28/share. Capital collecting amounting to RMB 1199999820 after issuing expenses
RMB 22045500 deducted net capital collected amounting to RMB 1177954320 and paid-in capital
(share capital) increased RMB 116731500 with capital reserve (share premium) RMB 1061106088.5
increased. The increasing capital has been verified by Capital Verification Report No.:
［XYZH2010CDA6021］issued from Shin Wing CPA Co. Ltd.On 20 June 2011 the general meeting of the Company considered and approved the 2010 profit distribution
plan namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held
by shareholders to all shareholders based on the total share capital of 530374449 shares as of 31 December
2010. The total share capital of the Company upon profit distribution increased to 636449338 shares. The
capital increase was verified by Anhui 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 RegulatoryCommission [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 4.70 yuan per share after deducting the issue costs of 29267276.08 yuan the net amount of raised
funds is 1540732722.76 yuan the increased paid-in capital (share capital) of 280858676.00 yuan
increased capital reserve (share premium) of 1259874046.76 yuan. This capital increase has been verified
by No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants
(LLP).
120Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Ended as 31 December 2021 total share capital of the Company amounting to 1044597881 shares 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:
Type of stock Quantity Proportion
(I)Restricted shares 8442922 0.81%
1. State-owned shares
2. State-owned legal person’s shares 1766269 0.17%
3. Other domestic shares 5409233 0.52%
Including: Domestic legal person’s
shares 3884551 0.37%
Domestic natural person’s
shares 1524682 0.15%
4. Foreign shares 1267420 0.12%
Including: Overseas legal person’s shares -
Overseas natural person’s shares 1267420 0.12%
(II)Unrestricted shares 1036154959 99.19%
1. RMB Ordinary shares 874558379 83.72%
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): 1044597881 yuan; 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 vandevelopment production sales and service of cold chain
insulation boxes research and development production sales and service of cold storage commercial
121Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 27 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 one subsidiary
Anhui Ling’an Medical Equipment Co. Ltd was increased in the consolidation scope. The Tai yuan Meiling
Electric Appliances Marketing Co. Ltd Tianjin Meiling Electric Appliances Marketing Co. Ltd and
Guangzhou Meiling Electric Appliances Marketing Co. Ltd were decreased for mergers & acquisition.More details can be seen in the report “VII. Changes in the scope of the merger” and “XIII. Equity in otherentities”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 Business 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
Business 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.
122Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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.
123Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
All the material inter-company transactions non-extraordinary items and unrealized profit within the
combination scope are written-off when preparing consolidated financial statement. Owners’ equity of
subsidiary not attributable to parent company and current net gains and losses other comprehensive income
and total comprehensive income attributable to minority shareholders are recognized as non-controlling
interests minority interests other comprehensive income attributable to minority shareholders and total
comprehensive income attributable to minority shareholders in consolidated financial statement respectively.As for subsidiary acquired through business combination under common control its operating results and
cash flow will be included in consolidated financial statement since the beginning of the period when
combination occurs. When preparing comparative consolidated financial statement the relevant items in
previous years financial statement shall be adjusted as if the reporting entity formed upon combination has
been existing since the ultimate controller commenced relevant control.As for equity interests of the investee under common control acquired through various transactions which
eventually formed business combination the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example as for equity interests of the investee under common control acquired through various transactions
which eventually formed business combination adjustments shall be made as if the current status had been
existing when the ultimate controller commenced control in connection of preparing consolidated financial
statement; in connection with preparing comparative statement the Company shall consolidate the relevant
assets and liabilities of the acquiree into the Company’s comparative consolidated financial statement to the
extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate
controller and the net assets increased due to combination shall be used to adjust relevant items under
owners’ equity in comparative statement. In order to prevent double computation of the value of the
acquiree’s net assets the relevant profits and losses other comprehensive income and change of other net
assets recognized during the period from the date when the Company acquires original equity interests and
the date when the Company and the acquiree are all under ultimate control of the same party (whichever is
later) to the date of combination in respect of the long-term equity investment held by the Company before
satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and
losses in the period as the comparative financial statement involves respectively.As for subsidiary acquired through business combination not under common control its operating results and
cash flow will be included in consolidated financial statement since the Company obtains controlling power.When preparing consolidated financial statement the Company shall adjust the subsidiary’s financial
statement based on the fair value of the various identifiable assets liabilities or contingent liabilities
recognized as of the acquisition date.
124Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
As for equity interests of the investee not under common control acquired through various transactions which
eventually formed business combination the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
example as for equity interests of the investee not under common control acquired through various
transactions which eventually formed business combination when preparing consolidated financial statement
the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair
value as of the acquisition date and any difference between the fair value and carrying value is included in
current investment income. in case that the equity interests in acquiree held by the Company before the
relevant acquisition date involves other comprehensive income at equity method and change of other owners’
equity (other than net gains and losses other comprehensive income and profit distribution) then the equity
interests would transfer to investment gains and losses for the period which the acquisition date falls upon.The other comprehensive income arising from change of the net liabilities or net assets under established
benefit scheme as acquiree’s re-measured such scheme is excluded.The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without
losing control rights over the subsidiary the difference between the proceeds from disposal of interests and
the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case
capital reserve is not sufficient to offset the difference retained earnings will be adjusted.As for disposal of part equity investment which leads to losing control over the investee the Company would
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 statementsand 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
125Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 with
drawn on demand.Cash equivalents are short-termhighly liquid investments held by the Groupthat are
readily convertible to knownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue
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.
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
126Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.The financial assets and financial liabilities are measured at fair value on initial recognition. For the financial
assets and liabilities measured by fair value and with variation reckoned into current gains/losses the related
transaction expenses are directly included in current gains or losses; for other types of financial assets and
liabilities the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferring
a liability in an orderly transaction that occurs on the measurement date. For a financial instrument having an
active market the Company uses the quoted prices in the active market to determine its fair value.Quotations in an active market refer to prices that are readily available from exchanges brokers industry
associations pricing services etc. and represent the prices of market transactions that actually occur in an
arm's length transaction. If there is no active market for a financial instrument the Company uses valuation
techniques to determine its fair value. Valuation techniques include reference to prices used in recent market
transactions by parties familiar with the situation and through voluntary trade and reference to current fair
values of other financial instruments that are substantially identical discounted cash flow methods and
option pricing models.
(2) Category and measurement on financial assets
The group divided the financial assets as the follow while initially recognized: the financial assets measured
at amortized cost; the financial assets measured at fair value and whose changes are included in other
comprehensive income; and the financial assets measured by fair value and with variation reckoned into
current gains/losses. The classification of financial assets depends on the business model that the Group's
enterprises manage the financial assets and the cash flow characteristics of the financial assets.
1) The financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost when they also meet the
following conditions: The group's business model for managing the financial assets is to collect contractual
cash flows; the contractual terms of the financial assets stipulate that cash flow generated on a specific date is
only paid for the principal and interest based on the outstanding principal amount. For such financial assets
the effective interest method is used for subsequent measurement according to the amortized cost and the
gains or losses arising from amortization or impairment are included in current profits and losses. Such
127Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
financial assets mainly include monetary funds notes receivable accounts receivable other receivables debt
investment and long-term receivables and so on. The Group lists the debt investment and long-term
receivables due within one year (including one year) from the balance sheet date as non-current assets due
within one year and lists the debt investment with time limit within one year (including one year) when
acquired as other current assets.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets are classified as financial assets measured at fair value and whose changes are included in
other comprehensive income when they also meet the following conditions: The Group's business model for
managing the financial assets is targeted at both the collection of contractual cash flows and the sale of
financial assets; the contractual terms of the financial asset stipulate that the cash flow generated on a
specific date is only the payment of the principal and the interest based on the outstanding principal amount.For such financial assets fair value is used for subsequent measurement. The discount or premium is
amortized by using the effective interest method and is recognized as interest income or expenses. Except the
impairment losses and the exchange differences of foreign currency monetary financial assets are recognized
as the current profits and losses the changes in the fair value of such financial assets are recognized as other
comprehensive income until the financial assets are derecognized the accumulated gains or losses are
transferred to the current profits and losses. Interest income related to such financial assets is included in the
current profit and loss. Such financial assets are listed as other debt investments other debt investments due
within one year (including one year) from the balance sheet date are listed as non-current assets due within
one year; and other debt investments with time limit within one year (including one year) when acquired are
listed as other current assets.
3) Financial assets measured at fair value and whose changes are included in current gains/losses
Financial assets except for the above-mentioned financial assets measured at amortized cost and financial
assets measured at fair value and whose changes are included in other comprehensive income are classified
as financial assets measured at fair value and whose changes are included in current profits and losses which
adopt fair value for subsequent measurement and all changes in fair value are included in current profits and
losses. The Group classifies non-trading equity instruments as financial assets measured at fair value and
whose changes are included in current profits and losses. Such financial assets are presented as trading
financial assets and those expire after more than one year and are expected to be held for more than one year
are presented as other non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses the Group performs impairment treatment on financial assets
measured at amortized cost and financial assets measured at fair value and whose changes are included in
other comprehensive income and recognize the provisions for loss.
128Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the
original actual interest rate and are receivable in accordance with contract and all cash flows expected to be
received that is the present value of all cash shortages. Among them for the purchase or source of financial
assets that have suffered credit impairment the Company discounts the financial assets at the actual interest
rate adjusted by credit.The Group considers all reasonable and evidenced information including forward-looking information
based on credit risk characteristics. When assessing the expected credit losses of receivables they are
classified according to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing components
and not including significant financing components) the Group measures the provisions for loss based on the
amount of expected credit losses equivalent to the entire duration.* Evaluate expected credit losses based on individual items: credit notes receivable (including accepted letters
of credit) of financial institutions in notes receivable and accounts receivable and related party payments
(related parties under the same control and significant related parties); dividends receivable interest receivable
reserve funds investment loans cash deposits (including warranty) government grants (including dismantling
subsidies) in other receivables and receivables with significant financing components (i.e. long-term
receivables);
* Evaluate 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: * The contract
129Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
rights of collecting cash flow of the financial assets is terminated; * The financial assets has already been
transferred and the Company has transferred almost all risks and remunerations of financial assets ownership
to the transferee; * The financial assets has been transferred even though the Company has neither transferred
nor kept almost all risks and remunerations of financial assets ownership the Company has given up
controlling the financial assets.If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets
ownership nor given up controlling the financial assets then confirm the relevant financial assets according
to how it continues to involve into the transferred financial assets and confirm the relevant liabilities
accordingly. The extent of continuing involvement in the transferred financial assets refers to the level of risk
arising from the changes in financial assets value faced by the enterprise.If the entire transfer of financial assets satisfies the demand for derecognition reckon the balance between
the book value of the transferred financial assets and the sum of consideration received from transfer and
fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the current
profits and losses.If part transfer of financial assets satisfies the demand for derecognition apportion the integral book value of
the transferred financial assets between the derecognized parts and the parts not yet derecognized according
to each relative fair value and reckon the balance between the sum of consideration received from transfer
and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should
be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the current
profits and losses.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
130Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
other financial liability shall be reckoned into the initial amount recognized.* the financial liability measured by fair value and with variation reckoned into current gains/losses
The conditions to be classified as trading financial liabilities and as financial liabilities designated to be
measured at fair value and whose changes are included in current profit or loss at the initial recognition are
consistent with the conditions to be classified as trading financial assets and as financial assets designated to
be measured at fair value and whose changes are included in current profit or loss at the initial recognition.Financial liabilities measured at fair value and whose changes are included in current profit or loss are
subsequently measured at fair value and the gain or loss arising from changes in fair value and the dividends
and interest expense related to these financial liabilities are included in current profit or loss.* Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument to link to
the equity instruments that are not quoted in an active market and whose fair value cannot be reliably
measured and the subsequent measurement is carried out in accordance with the cost. Other financial
liabilities are subsequently measured at amortized cost by using the effective interest method. The gain or
loss arising from derecognition or amortization is included in current profit or loss.* Financial guarantee contract
The financial guarantee contract of a financial liability which is not designated to be measured at fair value
through profit or loss is initially recognized at fair value and its subsequent measurement is carried out by
the higher one between the amount confirmed in accordance with 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
recognizedthe 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
131Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
non-cash assets or the assumed new financial liabilities) is included in current profits and losses.
(7) Off-set between the financial assets and liabilities
When the Company has a legal right to offset a recognized financial asset and a financial liability and such
legal right is currently enforceable and the Company plans to settle the financial asset on a net basis or to
realize the financial asset and settle the financial liability simultaneously the financial asset and the financial
liability are presented in the balance sheet at their respective offsetting amounts. In addition the financial
assets and financial liabilities are presented in the balance sheet separately and are not offset against each
other.
(8) Derivatives and embedded derivatives
Derivatives are initially measured at fair value on the signing date of the relevant contract and are
subsequently measured at fair value. Except for derivatives that are designated as hedging instruments and
are highly effective in hedging the gains or losses arising from changes in fair value will be determined
based on the nature of the hedging relationship in accordance with the requirements of the hedge accounting
and be included in the period of profit and loss other changes in fair value of derivatives are included in
current profits and losses. For a hybrid instrument that includes an embedded derivative if it is not
designated as a financial asset or financial liability measured at fair value and whose changes are included in
current profit or loss the embedded derivative does not have a close relationship with the main contract in
terms of economic characteristics and risks and as with embedded derivatives if the tools existing separately
conform to the definition of the derivatives the embedded derivatives are split from the hybrid instruments
and are treated as separate derivative financial instruments. If it is not possible to measure the embedded
derivative separately at the time of acquisition or subsequent balance sheet date the whole hybrid instrument
is designated as a financial asset or financial liability measured at fair value and whose changes are included
in current profits and losses.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the
deduction of all liabilities in the Group. The Company issues (including refinancing) repurchases sells or
cancels equity instruments as movement of equity.No fair value change of equity instrument would be
recognized by the Company.Transaction costs associated with equity transactions are deducted from equity.The Group's various distributions to equity instrument holders (excluding stock dividends) reduce
shareholders' equity.
11. Inventory
Inventories of the Company principally include raw materials stock goods; work in process self-made
132Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
semi-finished product materials consigned to precede low-value consumption goods goods in transit goods
in process mould and contract performance costs.Perpetual inventory system is applicable to inventories. For daily calculation standard price is adopted for
raw materials low-value consumption goods and stock goods. Switch-back cost of the current month is
adjusted by distribution price difference at the end of the month the dispatched goods will share the cost
differences of inventory while in settlement the business income; and low-value consumption goods is
carried forward at once when being applied for use and the mould shall be amortized within one year after
receipt.Inventory at period-end is valued by the Lower-of-value between the cost and net realizable value.The
provision for inventory depreciation shall be drawn from the difference between the book cost of a single
inventory item and its net realizable value and the provision for inventory depreciation shall be recorded into
the current profit and loss.
12. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods to
customers and this right depends on factors other than the passage of time. If the Company sells two clearly
distinguishable commodities to a customer and has the right to receive payment because one of the
commodities has been delivered but the payment is also dependent on the delivery of the other commodity
the Company shall take the right to receive payment as a contract asset.
(2) Determination method and accounting treatment method of expected credit loss of contract assets
For the determination method for expected credit loss of contract assets please refer to the above-mentioned
10. (3) Accounting treatment methods for financial instrument impairment. The Company calculates the
expected credit loss of contract assets on the balance sheet date if the expected credit loss is greater than the
book value of provision for impairment of contract assets the Company shall recognize the difference as an
impairment loss debiting the "asset impairment loss" and crediting the "contract asset impairment provision".On the contrary the Company shall recognize the difference as an impairment gain and keep the opposite
accounting records.If the Company actually incurs credit losses and determines that the relevant contract assets cannot be
recovered for those approved to be written off debit the "contract asset impairment reserve" and credit the
"contracted asset" based on the approved write-off amount. If the written-off amount is greater than the
provision for loss that has been withdrawn the "asset impairment loss" is debited based on the difference.
133Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
13. Contract cost
(1) The method of determining the amount of assets related to the contract cost
The Company’s assets related to contract costs include contract performance cost and contract acquisition
cost.The contract performance cost is the cost incurred by the Company for the performance of the contract those
that do not fall within the scope of other accounting standards and meet the following conditions at the same
time are recognized as as an asset as the contract performance cost: the cost is directly related to a current or
expected contract including direct labor direct materials manufacturing expenses (or similar expenses)
costs clarified to be borne by the customer and other costs incurred solely due to the contract; this cost
increases the Company's future resources for fulfilling the contract's performance obligations; this cost is
expected to be recovered.Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract those that
are expected to be recovered are recognized as the contract acquisition cost as an asset; if the asset
amortization period does not exceed one year it shall be included in the current profit and loss when it occurs.Incremental cost refers to the cost (such as sales commission etc.) that will not incur if the Company doesn’t
obtain the contract. The Company’s expenses (such as travel expenses incurred regardless of whether the
contract is obtained) incurred for obtaining the contract other than the incremental costs expected to be
recovered are included in the current profits and losses when they are incurred except those are clarified to
be borne by the customer.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition of
commodity income related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Company determines the impairment loss of assets related to the contract cost it first determines
the impairment loss of other assets related to the contract that are confirmed in accordance with other
relevant accounting standards for business enterprises; then based on the difference between the book value
of which is higher than the remaining consideration that the Company is expected to obtain due to the
transfer of the commodity related to the asset and the estimated cost of transferring the related commodity
the excess shall be provided for impairment and recognized as an asset impairment loss.If the depreciation factors of the previous period changed later causing the aforementioned difference to be
higher than the book value of the asset the original provision for asset impairment shall be reversed and
included in the current profit and loss but the book value of the asset after the reversal shall not exceed the
book value of the asset on the reversal date under the assumption that no impairment provision is made.
134Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
14.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 whichthe 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
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.
135Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
15. Investment real estate
The investment real estate of the Company includes leased houses and buildings and is accounted value by
its cost. Cost of purchased-in investment real estate consists of payment for purchase relevant taxes and
other expenditure which is attributable to the assets directly; while cost of self-built investment real estate is
formed with all necessary expenditures occurred before construction completion of the assets arriving at the
estimated utilization state.Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided
with average service life method pursuant to the predicted service life and net rate of salvage value. The
predicted service life and net rate of salvage value and annual depreciation are listed as follows:
Predicted rate of salvage Depreciation rate per
Category Depreciation term(Year)
value (%) annual (%)
House and buildings 30-40years 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
136Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
16.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods provision of
services rental or management of operations have a useful life of more than one year and have a unit value
of more than 2000 yuan.Their credit value is determined on the basis of the cost taken for obtaining them. Of which cost of
purchased-in fixed assets include bidding price and import duty and relevant taxes and other expenditure
which occurs before the fixed assets arrive at the state of predicted utilization and which could be directly
attributable to the assets; while cost of self-built fixed asset is formed with all necessary expenditures
occurred before construction completion of the assets arriving at the estimated utilization state; credit value
of the fixed assets injected by investors is determined based on the agreed value of investment contracts or
agreements while as for the agreed value of investment contracts or agreements which is not fair it shall
take its fair value as credit value; and for fixed assets which are leased in through finance leasing credit
value is the lower of fair value of leased assets and present value of minimized leasing payment as at the
commencing date of leasing.Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For
those meeting requirements for recognization of fixed assets they would be accounted as fixed asset cost;
and for the part which is replaced recognization of its carrying value shall cease; for those not meeting
requirements for recognization of fixed assets they shall be accounted in current gains and losses as long as
they occur. When fixed asset is disposed or no economic benefit would be predicted to obtain through
utilization or disposal of the asset the Company shall terminate recognization of such fixed asset. The
amount of income from disposal transfer discarding as scrap or damage of fixed asset after deducting the
asset’ s carrying value and relevant taxation shall be written into current gains and losses.The Company withdraws depreciation for all fixed assets except for those which have been fully depreciated
while continuing to use. It adopts average service life method for withdrawing depreciation which is treated
respectively as cost or current expense of relevant assets according to purpose of use. The depreciation term
predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
137Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Predicted rate of salvage Depreciation rate per
No. Category Depreciation term
value year
1 House and buildings 30-40years 4%-5% 2.375%-3.20%
2 Machinery equipment 10-14years 4%-5% 6.786%-9.60%
3 Transport equipment 5-12years 4%-5% 7.92%-19.20%
4 Other equipment 8-12years 4%-5% 7.92%-12.00%
End of each year the Company makes re-examination on predicted service life predicted rate of salvage
value and depreciation method at each year-end. Any change will be treated as accounting estimation change.
17. Construction in progress
On the day when the construction in progress reaches the expected usable state it will be carried forward to
fixed assets according to the estimated value based on the construction budget cost or actual construction
cost and depreciation will be accrued from the next month and the difference in the original value of fixed
assets shall be adjusted after the completion of the final accounting procedures.
18. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets investment real estate
and inventory which require more than one year of purchase construction or production activities to reach
the intended usable or saleable state the capitalization begins when the asset expenditure has occurred the
borrowing expense have occurred and the acquisition construction or production activities necessary to
make the asset reach the intended usable or saleable state have begun; when the acquisition construction or
production of assets that meet the capitalization conditions reaches the intended usable or saleable state stop
the capitalization the borrowing expense incurred thereafter are included in the current profit and loss. If an
asset that meets the capitalization conditions is abnormally interrupted during the acquisition construction or
production process and the interruption lasts for more than 3 months the capitalization of borrowing
expense shall be suspended until the acquisition construction or production activities of the asset restart.Capitalization shall be exercised for interest expense actually occurred from special borrowings in current
period after deduction of the interest income arising from unutilized borrowing capital which is saved in
banks or deduction of investment income obtained from temporary investment; For recognization of
capitalized amount of common borrowingit 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.
138Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
19. Right-of-use assets
Upon becoming a lessee under a lease contract the Company is entitled to receive substantially all of the
economic benefits arising from the use of the identified assets during the period of use and is entitled to
recognized the right-of-use assets at the sum of the present value of the lease liability prepaid rent and initial
direct costs and to recognized the depreciation and interest expenses respectively when the use of the
identified assets dominates during that period of use.When the Company becomes the lessee of a lease contract for short-erm leases of less than one year without
a purchase option and leases with a value of less than 40000 yuan (excluding sublease or expected sublease
assets) the Company elects to follow simplified treatment and record the related assets at cost or current
gain/loss on a straight-line basis over the lease period.
20. Intangible assets
The Company’s intangible assets include land use rights trademark rights and non-proprietary technology
which are measured at actual cost at the time of acquisition of which acquired intangible assets are stated at
actual cost based on the price actually paid and related other expenditure; the actual cost of an intangible
asset invested by an investor is determined at the value agreed in the investment contract or agreement
except where the agreed value in the contract or agreement is not fair in which case the actual cost is
determined at fair value.The land use rights are amortized equally over the period from the commencement date of the grant; the
remaining intangible assets are amortized equally over the shortest of the estimated useful life the
contractual beneficial life and the effective life as prescribed by law. Amortization is charged to the cost of
the relevant asset and to current profit or loss in accordance with the object of its benefit. The estimated
useful life and amortization method for intangible assets with finite useful lives are reviewed at the end of
each year and any changes are treated as changes in accounting estimates.
21. Research and development(R&D)
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:
-Completions of the intangible assets make it available for application or sell in technology;
-Equipped with plan to complete the intangible asset and apply or sell it;
-There is market for products produced with this intangible asset or the intangible asset itself;
139Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
-Have sufficient technology financial resource and other resources to support development of the intangible
assets and have ability to apply or sell the assets;
-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.
22. Impairment of long-term assets
As at each balance sheet date the Company has inspection onfixed 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
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
140Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration received
or receivable from customers. Before the Company transfers the goods to the customer if the customer has
paid the contract consideration or the Company has obtained the right to unconditionally receive the contract
consideration the contract liability is recognized based on the received or receivable amount at the earlier
time point of the actual payment by the customer and the payment due.
24. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no common
control exceeding the attributable part or fair value of recognizable net assets of party invested or purchased
(obtained through business combination) as of acquisition day or purchase day.Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill
relating to associates and joint-ventures is included in carrying value of long-term equity investment.
25. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by
employees or compensation to the termination of employment relationship such as short-term wages
post-employment benefits compensation for the termination of employment relationship and other long-term
employee welfare.Short-term remuneration includes: staff salary bonus allowances and subsidies staff benefits social
insurances like medical insurance work-related injury insurance and maternity insurance housing fund
labor union funds and staff education funds short-term paid absence of duty short-term profit sharing
scheme and non-monetary benefits as well as other short-term remuneration. During the accounting period
when staff provides services the short-term remuneration actually occurred is recognized as liabilities and
shall be included in current gains and losses or related asset costs according to the beneficial items.Retirement benefits mainly consist of basic pension insurance unemployment insurance and early-retirement
benefits etc. retirement benefit scheme represents the agreement reached by the Company and its employees
in respect of retirement benefits or the rules or regulations established by the Company for providing
retirement benefits to employees. In particular defined contribution plan means a retirement benefit plan
pursuant to which the Company makes fixed contribution to independent fund upon which and it is not
obliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than defined
contribution plan.
141Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
26.Lease liability
Upon becoming a lessee under a lease contract the Company recognizes a lease liability for the leased-in
asset at the present value of the unpaid lease payments net of lease incentives (except for short-term leases
and leases of low-value assets for which simplified treatment is elected) when it is entitled to receive
substantially all of the economic benefits arising from the use of the identified asset during the period of use
and is entitled to dominate the use of the identified asset during that period of use.
27.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.
28. Revenue
The Company’s sales revenue is mainly comprised of revenue from sale of goods labor providing income
and revenue from assignment of asset use rights.The Company has fulfilled the performance obligations in the contract that is revenue is recognizedwhen
the customer obtains control of the relevant goods or services.If the contract contains two or more performance obligations the Company will allocate the transaction price
to each individual performance obligation according to the relative proportion of the stand-alone selling price
of the goods or services promised by each individual performance obligation on the date of the contract. The
revenue is measured according to the transaction price of each individual performance obligation.The transaction price is the amount of consideration that the Company expects to be entitled to receive due to
the transfer of goods or services to customers excluding payments on behalf of third parties. The transaction
price confirmed by the Company does not exceed the amount at which the cumulatively recognized revenue
will most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. The
142Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 and determine the progress of performance in
accordance with the output method. When the performance progress cannot be reasonably determined if the
cost incurred by the Company is expected to be compensated the revenue shall be recognized according to
the amount of the cost incurred until the performance progress can be reasonably determined.For performance obligations performed at a certain point in time the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether a customer
has obtained control of goods or services the Company will consider the following signs:
1) The Company has the current right to collect payment for the goods or services;
2) The Company has transferred the goods in kind to the customer;
3) The Company has physically transferred the goods to the customer;
4) The Company has transferred the principal risks and rewards of ownership of the goods to the customer;
5) The customer has accepted the goods or services etc.
The Company’s right to receive consideration for goods or services that have been transferred to customers
are presented as contractual assets which are impaired on the basis of expected credit losses. The Company’s
143Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
unconditional right to receive consideration from customers is shown as a account receivable. The obligation
to transfer goods or services to customers for which the Company has received consideration receivable from
them is shown as a contractual liability.
29. Government subsidy
Government subsidy of the Company include project grants financial subsidies and job stabilization
subsidies.Of which asset-related government subsidy are government subsidy acquired by the Company for
the acquisition or other formation of long-term assets; government subsidy related to revenue are government
subsidy other than those related to assets. If the government document does not clearly specify the subsidy
object the Company will judge according to the above-mentioned distinguishing principle. If it is difficult to
distinguish it will be overall classified as a government subsidy related to income.If government subsidies are monetary assets they are measured according to the amount actually received.For subsidies paid on the basis of a fixed quota standard when there is conclusive evidence at the end of the
year that it can meet the relevant conditions stipulated by the financial support policy and is expected to
receive financial support funds they are measured according to the amount receivable. If the government
subsidy is a non-monetary asset it shall be measured at its fair value when the fair value cannot be obtained
reliably it shall be measured at its nominal amount (1 yuan).Government subsidies related to assets are recognized as deferred income. Asset-related government
subsidies that are recognized as deferred income are included in the current profit and loss in installments
according to the average life method during the useful life of the relevant assets.If the relevant asset is sold transferred scrapped or damaged before the end of its useful life the
undistributed deferred income balance shall be transferred to the current profit and loss of asset disposal.
30. 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.
144Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
31.Lease
When the Company becomes the lessee of the lease contract has the right to obtain almost all the economic
benefits arising from the use of the identified assets during the period of use and has the right to lead the use
of the identified assets during the period of use the present value of unpaid lease payments of the lease assets
after deducting lease incentives (except for short-term leases and leases of low-value assets for which
simplified treatment is selected) is recognized as a lease liability and a right-of-use asset is recognized based
on the sum of the present value of the lease liability prepaid rent and initial direct costs and depreciation
and interest expenses are recognized separately.When the Company becomes the lessee of a lease contract for short-erm leases of less than one year without
a purchase option and leases with a value of less than 40000 yuan (excluding sublease or expected sublease
assets) the Company elects to follow simplified treatment and record the related assets at cost or current
gain/loss on a straight-line basis over the lease period.When the Company becomes the lessor of a lease contract it classifies the lease into an operating lease and a
finance lease at the lease commencement date. A finance lease is a lease that transfers substantially all the
risks and rewards associated with the ownership of an asset. Operating leases are leases other than finance
leases. Rentals under operating leases are recognized as income on a straight-line basis over the lease term.Finance leases are recorded at the net lease investment value of the finance lease receivable which is the sum
of the unguaranteed residual value and the present value of the lease receipts not yet received as of the
commencement date of the lease term.There are both leasing and non-leasing businesses in the contract and can be split and the leasing business is
financially accounted according to the lease standards. There are both leasing and non-leasing businesses in
the contract and cannot be split and the entire contract is included in the lease business for financial
accounting according to the lease standards.The lease change needs to be judged whether it can be recognized as a single leasing business and it needs to
be recognized separately if it meets the recognition conditions of a single lease; if it does not meet the
recognition of a single leasing business or there is a major event or change within the controllable range of
the lessee re-evaluate and measure the present value of lease liabilities and adjust the book value of the
right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero but the
lease liability still needs to be further reduced the lessee shall include the remaining amount in the
corresponding expenses for the current period.
145Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
When the Company becomes the lessor of a lease contract the lease is divided into operating lease and
finance lease on the start date of lease. A finance lease is a lease that transfers substantially all the risks and
rewards associated with ownership of an asset. An operating lease refers to a lease other than finance leases.The rent of an operating lease is recognized as income on a straight-line basis during the lease term. For an
finance lease the net investment in the lease is regarded as the entry value of the finance lease receivables
and the net investment in the lease is the sum of the unguaranteed residual value and the present value of the
lease receipts that have not been received on the start date of the lease term.
32. 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
146Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
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.
33. Discontinued operation
A discontinued operation is a separately identified component of the Group that either has been disposed of
147Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
34. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses
include income tax in the current year and deferred income tax. The income tax associated with the events
and transactions directly included in the owners’ equity shall be included in the owners’ equity; and the
deferred income tax derived from business combination shall be included in the carrying amount of goodwill
except for that above the income tax expense shall be included in the profit or loss in the current period.The income tax expense in the current year refers to the tax payable which is calculated according tothe tax
laws on the events and transactions incurred in the current period. The deferred income tax refersto the
difference between the carrying amount and the deferred tax assets and deferred tax liabilities at Current
Year-end recognized in the method of debit in the balance sheet.
35. Segment information
Business segment was the major reporting form of the Company which divided into four parts:
air-conditioning refrigerator & freezer& washing machinesmall home appliance and others. The transfer
price among the segments will recognize based on the market price common costs will allocated by income
proportion between segments except for the parts that without reasonable allocation.
36. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financial
statement which will affect the application of accounting policy and amounts of assets liabilities income and
expense. The actual condition may differ from the estimation. Constant evaluation is conducted by the
management in respect of the key assumption involved in the estimation and judgment of uncertainties.Effect resulting from change of accounting estimation is recognized in the period the change occurs and
future periods.The following accounting estimation and key assumption may result in material adjustment to the book value
of assets and liabilities in future period.
(1) Inventory impairment provision
The Company's provision for impairment of inventories on the balance sheet date is the part of the net
realizable value lower than the cost of inventories. The net realizable value of the inventory of goods that are
148Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
directly used for sale such as the goods in stock the goods sent out and the materials for sale and the
low-consumption goods shall be determined by the amount of the estimated selling price of the inventory
minus the estimated selling expenses and relevant taxes. The net realizable value of the material inventory
held for production is determined by the amount of the estimated selling price of the finished product
produced minus the estimated cost to be incurred at the time of completion the estimated selling expenses
and relevant taxes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings machine and equipment which have
impairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable
amount of relevant assets and assets group shall be the present value of the projected future cash flow which
shall be calculated with accounting estimation.If the management amends the gross profit margin and discount rate adopted in calculation of future cash
flow of assets and assets group and the amended gross profit margin is lower than the currently adopted one
or the amended discount rate is higher than the currently adopted one the 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
149Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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.
37. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and losses
according to other accounting rules.Other comprehensive income items shall be reported in the following two classes under other relevant
accounting rules:
(1)Other comprehensive income items that can not be reclassified into gains and losses in future accounting
periods mainly including changes arising from re-measurement of net liabilities or net assets under defined
benefit plan and interest in investee’s other comprehensive income which are measured under equity method
and which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting
periods upon satisfaction of required conditions mainly includes the share of other comprehensive income
that is reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for in
accordance with the equity method and meet the specified conditions the fair value changes occurred by the
debt investment that is measured at fair value and whose changes are included in other comprehensive
income the difference between the original book value included in other comprehensive income and the fair
value when a financial asset measured at amortized cost is reclassified as a financial asset measured at fair
value and its changes are included in other comprehensive income the loss provisions for financial assets
measured at fair value and whose changes are included in other comprehensive income the gains or losses
generated from cash flow hedging instruments are part of effective hedging and the differences in
conversion of foreign currency financial statements.
38. Change of significant accounting policies and accounting estimates
(1) Change of significant accounting policy
Content and reasons Approval procedure Note
In 2018 the Ministry of Finance amended the Accounting Relevant change of the accounting
Standards for Business Enterprise No.21- Lease and the policy has been deliberated and
150Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Content and reasons Approval procedure Note
Company implemented the relevant accounting standards in approved by the 7th session of 10th
preparing its financial statements for the first half year of 2021 BOD
and in accordance with the relevant convergence provisions.According to the Q&A with ASBE Concerned issued by The
Relevant change of the accounting
Accounting Regulatory Dept. Of Ministry of Finance on
policy has been deliberated and
November 2 2021 relevant expenses related to transportation
approved by the 16th session of 10th
costs incurred to fulfill customer sales contracts will list under
BOD
the item of “operation cost” by the Company
Items and amounts of the statement items materially affected are as follows:
Consolidated statement Statement of parent company
Item affected 2020-12-31 2021-1-1 2020-12-31 Amount Amount 2021-1-1
(before adjusted (after changed) (before
adjuste
changed) changed) d (after changed)
Right-of-use assets 9818834.44 9818834.44
Account paid in
advance 30105373.40 -35070.34 30070303.06 39571728.09 39571728.09
Lease liability 4783483.43 4783483.43
Non-current
liability due within 407825150.74 5000280.67 412825431.41 407141888.08 407141888.08
one year
(2) Change of significant accounting estimates: N/A
(3) Implementation of the new lease standard for 2021 (for the first time) adjusts the information on the
relevant items in the financial statements at the beginning of the year of implementation
Notes to the adjustment of consolidation and parent company’s balance sheet: in accordance with the new
lease standards exercise on 1 Jan. 2021. Adjust the amount of items related to the financial statements at the
beginning of the year of the first implementation based on the cumulative impact of the first implementation
of the new lease standards without adjusting the comparable period information. For the operating lease
prior to the first execution date the Company shall measure the lease liability according to the present value
of remaining lease payments discounted on the basis of the internal resource input interest rate on the first
execution date and the right-of-use asset shall be adjusted according to the sum of the lease liability and the
prepayment. See index 38 (1) for the specific adjustment details.
(4) There are no retrospective adjustments to prior period data for the implementation of the new lease
standard from 2021 (for the first time)
V. Taxation
1. Major taxes and tax rates
151Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Tax (expenses) Tax (expenses) base Tax (expenses) rate
VAT Income from sales of goods and from processing 13% 9% 6% 5% 3%
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% 30% 33%
Original Book value of house property×(1-30%)or
House Property Tax 1.2% or 12%
annual rent income
Land use tax Actual land area used 1 yuan/M2 to 15 yuan /M2
Description of taxpayers with different corporate income tax rates:
Name Income tax rate
Changhong Meiling Co. Ltd. 15%
Zhongke Meiling Cryogenic Technology Co. Ltd. 15%
Zhongshan Changhong Electric Co. Ltd. 15%
Sichuan Hongmei Intelligent Technology Co. Ltd. 15%
Mianyang Meiling Refrigeration Co. Ltd. 15%
Changhong Meiling Ridian Technology Co. Ltd. 15%
Ground Energy Heat Pump Tech. (Zhongshan) Co. Ltd. 15%
Hefei Meiling Nonferrous Metal Products Co. Ltd. 15%
Jiangxi Meiling Electric Appliance Co. Ltd. 15%
Sichuan Changhong Air-conditioner Co. Ltd. 15%
Hebei Hongmao Daily Appliance Technology Co. Ltd. 15%
Anhui Tuoxing Technology Co. Ltd. 20%
Guangzhou Changhong Trading Co. Ltd. 20%
Anhui Ling'an Medical Equipment Co. Ltd 20%
Hefei Meiling Wulian Technology Co. Ltd 20%
CH-Meiling International (Philippines) Inc. 30%
Changhong Ruba Trading Company (Private) Limited 33%
2. Preferential tax
(1) On August 17 2020 the company obtained the high-tech enterprise certificate numbered
GR202034000222 approved by the Anhui Provincial Department of Science and Technology Anhui
152Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Provincial Department of Finance and Anhui Provincial Taxation Bureau of the State Administration of
Taxation and enjoys 15% rate for the income tax for State Hi-Tech Enterprise for three years term.
(2) On August 17 2020 the subsidiary Zhongke Meiling Cryogenic Technology Co. Ltd. obtained the
high-tech enterprise certificate numbered GR202034000072 approved by the Anhui Provincial Department
of Science and Technology Anhui Provincial Department of Finance and Anhui Provincial Taxation Bureau
of the State Administration of Taxation and enjoys 15% rate for the income tax for State Hi-Tech Enterprise
for three years term.
(3) On December 9 2020 the subsidiary Zhongshan Changhong Electric Co. Ltd. was included in the“Notice on Publicizing the List of the Second Batch of High-tech Enterprises to be Recognized inGuangdong Province in 2020'' published by the Office of the National High-tech Enterprise Certification
Management Leading Group and continues to enjoy 15% rate for the income tax for State Hi-Tech
Enterprise for three years term.
(4) The subsidiary Sichuan Hongmei Intelligent Technology Co. Ltd. has passed the qualification of
high-tech enterprise certification on 9 October 2021 and enjoys 15% rate for the income tax for State
Hi-Tech Enterprise for three years term.
(5) Subsidiary Mianyang Meiling Refrigeration 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.
(6) The subsidiary Guangdong Changhong Meiling 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.
(7) The subsidiary Hong Yuan 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.
(8) 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.
(9) 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.
(10) 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.
(11) The subsidiary Hebei Hongmao Daily Appliance Technology Co. Ltd. has passed the qualification of
high-tech enterprise certification on 18 September 2021 and enjoys 15% income tax rate for national payroll
technology enterprise for three years term.
153Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(12) The subsidiary Anhui Tuoxing Technology Co. Ltd. Anhui Lingan Medical Equipment Co. Ltd. Hefei
Meiling Wulian Technology Co. Ltd. Guangzhou Changhong Trading Co. Ltd. are in compliance with therelevant standards for small and medium-sized enterprises with meager profits in the “Notice on mattersrelated to the implementation of preferential income tax policy to support the development of small &medium-size enterprise and individual entrepreneurs” (Guoshui [2021] No. 8) 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 12.5% 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 2022.VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below unless otherwise specified “year-beginning”
refers to Jan. 1 2021; “year-end” refers to Dec. 31 2021; “Current Year” refers to Jan. 1 to Dec. 31 2021;
“the last year” refers to Jan. 1 to Dec. 31 2020; the currency is RMB.
1. Monetary fund
Item Balance at year-end Balance at year-begin
Cash 28447.21 35088.07
Bank deposit 5121110089.59 6100644898.32
Other Monetary fund 805215921.34 484232497.85
Interest receivable on deposit 12468938.07 9874305.74
Total 5938823396.21 6594786789.98
Including: total amount deposited in overseas 8156154.33 11293949.64
Total use of restricted funds 86159526.57 159382669.14
Other monetary fund:
Item Balance at year-end Balance at year-begin
Cash deposit 776959862.25 444087381.64
B share repurchase 20526874.41 33993171.95
Frozen money 6603675.00
Account of foreign currency for verification 5145493.12
Co-managed account funds 504702.66 503170.44
Taobao account 74572.96 486333.43
154Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Union Pay online 546234.06 16947.27
Total 805215921.34 484232497.85
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 77591356.87 yuan cash deposit of the letter of credit amounting to 1409792.04 yuan the
amount restricted for used in managed account was 504702.66 yuan bank deposits of 6603675.00 yuan frozen due to
litigation China Union Pay Taobao account and Ten Pay are all third party payment platforms for the deposit of 50000.0 yuan
and interest receivable from deposits of 12468938.07 yuan the remaining Monetary funds are treated as cash and cash
equivalents.
2. Tradable financial assets
Item Balance at year-end Balance at year-begin
Financial assets measured at fair value and whose changes are included
in current gains/losses 17997086.19 47242339.07
Including: Derivative financial assets 17997086.19 47242339.07
Tradable financial assets refers to the RMB forward exchange fund in Current Year
3. Note receivable
(1) Category of note receivable
Item Balance at year-end Balance at year-begin
Bank acceptance 2216752.22 13023329.01
Trade acceptance 335880000.00
Total 2216752.22 348903329.01
Less: Bad debt provision 8481942.30
Book value 2216752.22 340421386.71
(2) Notes endorsement or discount and undue on balance sheet date
Item Amount derecognition at Amount without year-end derecognition at year-end
Bank acceptance 200000.00
Total 200000.00
(3) Notes transfer to account receivable due for failure implementation by drawer at year-end
Item Amount of accounts receivable transferred at year-end
155Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Bank acceptance 300000.00
Trade acceptance 125482407.02
Total 125782407.02
(4) By accrual of bad debt provision
Amount at year-end
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision accrual on single item 2216752.22 100.00 2216752.22
Including: Bank acceptance 2216752.22 100.00 2216752.22
With bad debt provision accrual on portfolio
Including: Trade acceptance
Total 2216752.22 100.00 2216752.22
Continued
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio (%) Amount Ratio (%)
With bad debt provision
accrual on single item 13023329.01 3.73 300000.00 2.30 12723329.01
Including: Bank acceptance 13023329.01 3.73 300000.00 2.30 12723329.01
With bad debt provision
accrual on portfolio 335880000.00 96.27 8181942.30 2.44 327698057.70
Including: Trade acceptance 335880000.00 96.27 8181942.30 2.44 327698057.70
Total 348903329.01 100.00 8481942.30 2.43 340421386.71
1) Note receivable withdrawal bad debt provision on single item
Balance at year-end
Name
Book balance Bad debt provision Provision ratio (%) Provision reason
Minimal risk holding maturity
Bank acceptance 2216752.22
acceptance
Total 2216752.22
Continued
Balance at year-begin
Name
Book balance Bad debt provision Provision ratio (%) Provision reason
156Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-begin
Name
Book balance Bad debt provision Provision ratio (%) Provision reason
Minimal risk holding maturity
Bank acceptance 12723329.01
acceptance
Bank acceptance The bill has been collected by the
300000.00 300000.00 100.00 bank
Total 13023329.01 300000.00 — —
2) Note receivable withdrawal bad debt provision by combination
Balance at year-begin
Account age
Note receivable Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 282289530.00 2822895.30 1.00
More than 3 months and less than 6 months (6
months included) 53590470.00 5359047.00 10.00
Total 335880000.00 8181942.30
(5) Bad debt provision of note receivable that has been accrued withdrawn and reversed this year
This year note receivable with bad debt provision accrual amount as -8481942.30 yuan. No note receivable that has been
written off in previous years has been recovered this year.
(6) No note receivable actually written off in this year.
4. Account receivable
(1) Category of account receivable by bad debt accrual
Amount at year-end
Category Book balance Bad debt provision
Ratio Ratio Book value Amount (%) Amount (%)
Account receivable that withdrawal bad debt
provision by single item 822475594.55 53.40 25372653.49 3.08 797102941.06
Including: current payment with related party 754228757.41 48.97 4149753.85 0.55 750079003.56
Account receivable with letter of credit 47023937.50 3.05 47023937.50
Account receivable with single minor amount but
withdrawal single item bad debt provision 21222899.64 1.38 21222899.64 100.00
Account receivable withdrawal bad debt
provision by portfolio 717853201.83 46.60 74081451.61 10.32 643771750.22
Including: account receivable of engineering
customers 191420885.49 12.43 15308246.27 8.00 176112639.22
157Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end
Category Book balance Bad debt provision
Ratio Ratio Book value Amount (%) Amount (%)
Receivables other than engineering customers 526432316.34 34.17 58773205.34 11.16 467659111.00
Total 1540328796.38 100.00 99454105.10 6.46 1440874691.28
Continued
Amount at year-begin
Category Book balance Bad debt provision
Ratio Book value Amount Ratio (%) Amount (%)
Account receivable that withdrawal bad debt
provision by single item 523379846.95 43.52 25905935.37 4.95 497473911.58
Including: current payment with related party 397745724.79 33.07 3943524.26 0.99 393802200.53
Account receivable with letter of credit 72037362.43 5.99 72037362.43
Account receivable with single minor amount but
withdrawal single item bad debt provision 53596759.73 4.46 21962411.11 40.98 31634348.62
Account receivable withdrawal bad debt
provision by portfolio 679107003.09 56.48 46305134.01 6.82 632801869.08
Including: account receivable of engineering
customers 173638731.59 14.44 13008672.00 7.49 160630059.59
Receivables other than engineering customers 505468271.50 42.04 33296462.01 6.59 472171809.49
Total 1202486850.04 100.00 72211069.38 6.01 1130275780.66
1) Account receivable that withdrawal bad debt provision by single item
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 71 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
Balance at year-end
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 47442159.78
More than 3 months and less than 6 months (6
66786580.82
months included)
Over 6 months and within one year (One year
24376909.49
included)
158Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end
Account age
Book balance Bad debt provision Provision ratio (%)
Over one year - within 2 years (2 years included) 38592189.76 7718437.95 20.00
Over 2 years - within 3 years (3 years included) 13266474.64 6633237.32 50.00
Over 3 years 956571.00 956571.00 100.00
Total 191420885.49 15308246.27
Continued
Balance at year-begin
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 67204732.79
More than 3 months and less than 6 months (6
7907641.48
months included)
Over 6 months and within one year (One year
45690126.79
included)
Over one year - within 2 years (2 years included) 44698144.23 8939628.85 20.00
Over 2 years - within 3 years (3 years included) 8138086.30 4069043.15 50.00
Over 3 years 100.00
Total 173638731.59 13008672.00 —
B.Receivables other than engineering customers
Balance at year-end
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 299994550.94 2999945.51 1.00
More than 3 months and less than 6 months (6
68972844.556897284.4610.00
months included)
Over 6 months and within one year (One year
126004879.5725200975.9120.00
included)
Over one year - within 2 years (2 years included) 12130576.34 6065288.17 50.00
Over 2 years - within 3 years (3 years included) 8598768.25 6879014.60 80.00
Over 3 years 10730696.69 10730696.69 100.00
Total 526432316.34 58773205.34
159Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Continued
Balance at year-begin
Account age
Book balance Bad debt provision Provision ratio (%)
Within 3 months (3 months included) 412523951.50 4125239.52 1.00
More than 3 months and less than 6 months (6
39054407.323905440.7310.00
months included)
Over 6 months and within one year (One year
20517859.184103571.8420.00
included)
Over one year - within 2 years (2 years included) 19648475.02 9824237.51 50.00
Over 2 years - within 3 years (3 years included) 11928030.36 9542424.29 80.00
Over 3 years 1795548.12 1795548.12 100.00
Total 505468271.50 33296462.01
(2) By account age
Account age Balance at year-end Balance at year-begin
Within 3 months (3 months included) 1081226013.94 827575650.32
More than 3 months and less than 6 months (6 months included) 162654138.54 114077060.79
Over 6 months and within one year (One year included) 179880109.29 81325161.45
Over one year - within 2 years (2 years included) 63134405.85 134016062.26
Over 2 years - within 3 years (3 years included) 23736943.93 32482491.24
Over 3 years 29697184.83 13010423.98
Total 1540328796.38 1202486850.04
(3) Bad debt provision of accounts receivable this year
Changes this year Balance at
Category Balance at
year-end
year-begin
Accrual Withdrawal Resale or Other or reversal write-off decreases
Bad debt
provision 72211069.38 32475930.97 3245314.13 1987581.12 99454105.10
Total 72211069.38 32475930.97 3245314.13 1987581.12 99454105.10
(4) Account receivable actually written-off in Current Year: nil
160Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(5) Top five receivables collected by arrears party amounting to 957618825.54 yuan in total accounted for
62.17% of the receivables of current year-end the bad debt provision accrual correspondingly amounting to
28699803.66 yuan at year-end balance.
(6) Account receivable terminated recognization due to the transfer of financial assets of 528273051.54
yuan.
(7) No assets and liability transfer Account receivable and continues to involve at year-end.
5. Receivables financing
Item Balance at year-end Balance at year-begin
Bank acceptance 1808109301.56 1632388702.83
Total 1808109301.56 1632388702.83
(1) Notes receivable already pledged that presented in receivables financing at the end of the year:
Item Amount pledged at year-end Amount pledged at year-begin
Bank acceptance 385477263.99 548295149.14
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. 60. Assets with restricted ownership or
use rights.
(2) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the end
of the year
Item Amount derecognition at Amount without year-end derecognition at year-end
Bank acceptance 985023966.40
Total 985023966.40
6. Accounts paid in advance
(1) Age of account paid in advance
Balance at year-end Balance at year-begin
Item
Amount Ratio (%) Amount Ratio (%)
Within one year 28208857.49 94.77 29388065.57 97.73
1-2 years 1557939.85 5.23 393517.42 1.31
2-3 years 25000.00 0.08
161Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item
Amount Ratio (%) Amount Ratio (%)
Over 3 years 263720.07 0.88
Total 29766797.34 100.00 30070303.06 100.00
(2) Top 5 of account paid in advance in balance at year-end amounting to 20834178.36 yuan accounted for
69.99% of the account.
7. Other account receivable
Item Balance at year-end Balance at year-begin
Other account receivable 111652635.86 145705978.26
Total 111652635.86 145705978.26
(1) Category of other account receivable
Nature Book balance at year-end Book balance at year-begin
Export rebate 26634190.54 32281664.19
Cash deposit 70481345.37 77754290.83
Loans of employee’s pretty cash 12299111.06 14876565.98
Related party not in consolidation statement 718189.14 3241296.82
Advance money temporary 355045.58 65938.41
Other 2289144.60 18375974.37
Total 112777026.29 146595730.60
(2) Other account receivable bad debt reserves
First stage Second stage Third stage
Expected Expected credit loss Expected credit loss
Bad debt provision credit loss for the whole for the whole Total
in next 12 duration (no credit duration (credit
months impairment) impairment has occurred)
Balance as at 1 Jan. 2021 839752.34 50000.00 889752.34
Book balance of other account
receivable in Current Year as at 1 — — — —
Jan. 2021
--Transfer to the second stage
-- Transfer to the third stage
-- Reversal to the second stage
-- Reversal to the first stage
162Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
First stage Second stage Third stage
Expected Expected credit loss Expected credit loss
Bad debt provision credit loss for the whole for the whole Total
in next 12 duration (no credit duration (credit
months impairment) impairment has occurred)
Provision in Current Year 235222.39 235222.39
Reversal in Current Year
Conversion in Current Year
Write off in Current Year
Other change -584.30 -584.30
Balance as at 31 Dec. 2021 1074390.43 50000.00 1124390.43
(3) By account age
Account age Balance at year-end Balance at year-begin
Within 3 months (3 months included) 50798283.74 91920859.60
More than 3 months and less than 6 months (6 months included) 15511159.70 22540450.31
Over 6 months and within one year (One year included) 7875791.66 19585237.13
Over one year - within 2 years (2 years included) 28844885.97 5705751.39
Over 2 years - within 3 years (3 years included) 4113598.75 2756045.96
Over 3 years 5633306.47 4087386.21
Total 112777026.29 146595730.60
(4) Top 5 other receivables collected by arrears party at balance of period-end
Proportion in total other receivables Bad debt
Nam Balance at ending balance (%) provision
e Nature year-end Account age Balance at
year-end
Tax
Unit I 26634190.54 Within 3 months 23.62
rebate
Unit Cash
8780849.40 Within 1-2 years 7.79
II deposit
Unit Cash
7260000.00 Within 3-6 months 6.44
III deposit
6 months-Within
Unit Cash
5862175.00 one year，Within 5.20
IV deposit
1-2 years
163Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Proportion in total other receivables Bad debt
Nam Balance at ending balance (%) provision
e Nature year-end Account age Balance at
year-end
Unit Cash Within 3 months，
3692993.003.27
V deposit Within 1-2 years
Total — 52230207.94 46.31
(5) No other account receivable involved government subsidies
(6) No other receivables terminated recognition due to the transfer of financial assets
(7) No assets and liability transfer other receivables and continues to involve
8. Inventories
(1) Classification of inventories
Amount at year-end
Item
Book balance Inventory price decline provision/contract performance cost impairment provision Book value
Raw materials 129438627.36 8482723.94 120955903.42
Stock commodities 828837153.50 51052406.21 777784747.29
Low value consumable 5564313.19 954827.34 4609485.85
articles
Goods in transit 295059984.05 8068827.90 286991156.15
Goods-in-process 5351870.75 5351870.75
Contract performance cost 123275655.95 241230.88 123034425.07
Deferred expense for mould 37629831.27 37629831.27
Total 1425157436. 68800016.27 1356357419.Continued
Amount at year-begin
Item
Book balance Inventory price decline provision/contract performance cost impairment provision Book value
Raw materials 153887580.62 9729874.26 144157706.36
Stock commodities 1227162291.35 73930262.61 1153232028.74
Low value consumable
articles 5946757.68 916206.67 5030551.01
Goods in transit 245061800.18 9702391.49 235359408.69
Goods-in-process 8737073.41 8737073.41
Contract performance cost 119758145.49 97462.80 119660682.69
Deferred expense for mould 49177500.53 49177500.53
Total 1809731149.26 94376197.83 1715354951.43
164Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(2) Provision for inventory depreciation and contract performance cost impairment provision
Increase this year Decrease this year
Item Amount at year-begin Amount at
Accrual Other Reversal or reselling Other year-end
Raw materials 9729874.26 4297953.10 5545103.42 8482723.94
Stock commodities 73930262.61 34300198.57 57176255.48 1799.49 51052406.21
Goods in transit 9702391.49 16130782.25 17764345.84 8068827.90
Low value consumable articles 916206.67 140176.29 101555.62 954827.34
Contract performance cost 97462.80 202984.62 59216.54 241230.88
Total 94376197.83 55072094.83 80646476.90 1799.49 68800016.27
(3) Accrual for inventory falling price reserves
Item Specific basis for determining of net realizable value Reasons for the reversal or reselling in Current Year
Raw materials Cost is higher than net realizable value (The processed products are decline) For production
Stock commodities Cost is higher than net realizable value (The market price at period-end fell) For sale
Goods in transit Cost is higher than net realizable value (The market price at period-end fell) For sale
Low value
consumable articles Cost is higher than net realizable value Already used
Contract Engineering construction Cost is higher than net realizable value
performance cost (The processed products are decline) Already used
9. Other current assets
Item Balance at year-end Balance at year-begin
Value-added tax to be deducted 110346536.34 181882278.05
Advance payment of income tax 6114297.55 9506261.78
Pakistan local sales tax 2453792.84
Contract acquisition cost 7740783.12 4511132.31
Prepaid disability insurance 39317.44
Total 124240934.45 198353464.98
165Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
10. Long-term equity investment
Changes in Current Year Balanc
e at
Balance at Additio Investment profit Other ProvisiInvested enterprise Balance at year-enyear-begin nal Disinve and loss comprehen
Other Declaration of
investm stment confirmed by sive income changes cash dividends
on for Othe year-end d of
of equity or profits impair r impairent equity method adjustment ment ment
Associated companies
1.Hefei Xingmei Assets Management Co.
Ltd. 6826274.99 13009091.85 19835366.84
2.Sichuan Zhiyijia Network Technology
Co. Ltd. note1 39163339.54 -3923697.48 -130171.30 1025445.14 34084025.62
3.Hong Yuan Ground Energy Heat Tech.
Co. Ltd.note2 22103109.57 -1472995.40 20630114.17
4.Sichuan Tianyou Guigu Technology
Co. Ltd.note3 2850091.51 124097.43 2974188.94
5.Chengdu Guigu Environmental Tech.
Co. Ltd.note4 6040006.77 3067958.19 9107964.96
6.Changhong Ruba
Electric Company (Private) Ltd.note5
7.Hefei Meiling Solar Energy Technology
Co. Ltd.note6 1617928.00 1617928.00
Total 76982822.38 12422382.59 -130171.30 2643373.14 86631660.53
166Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Note 1: 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 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 2: subsidiary Sichuan Changhong Air Conditioner Co. Ltd (“Changhong Air Conditioner”) and Hengyou yuan
Technology Development Group Co. Ltd. (“Hengyou yuan”) cooperated to establish Hong Yuan 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 Hengyou
yuan contributed 25.5 million yuan accounting for 51% of the registered capital.Note 3: 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 capital 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. In November 2015 Jiangsu Runye
Investment Co. Ltd. transferred all its 10% shares to Sichuan Shuye Jiachen Real Estate Development Co.Ltd.;Chengdu Dongyu Shangmao Co. Ltd made capital contribution of 15 million yuan accounting for 15% of the
registered capital.In November 2015 Chengdu Dongyu Shangmao Co. Ltd. transferred all its 15% shares to Chengdu
Dongyu No. 1 Enterprise Management Consulting Partnership (Limited Partnership).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 4: 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 5: 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%.
167Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Note 6: Hefei Meiling Solar Energy Technology Co. Ltd. was incorporated on April 18 2002 with a registered capital
of 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limited invested 3.1114 million yuan accounting for
31.114% of the registered capital; Hefei Huayi Investment Co. Ltd. invested 4.972 million yuan accounting for 49.72%
of the registered capital; Hefei Xingtai Asset Management Co. Ltd. invested 1.9166 million yuan accounting for
19.166% of the registered capital.
11. Other non-current financial assets
Item Balance at year-end Balance at year-begin
Sichuan Changhong Group Finance Co. Ltd. 532961488.43 500000000.00
Huishang Bank Co. Ltd. 5000000.00 5000000.00
Hongyun Fund 44018952.27 43148931.34
Total 581980440.70 548148931.34
12. Investment real estate
(1) Investment real estate measured at costs
Item House and buildings Total
I.Original book value
1.Balance at year-begin 59512503.29 59512503.29
2.Increase in this year 1176028.81 1176028.81
(1) Construction in progress transfer-in 1176028.81 1176028.81
3.Decrease in this year
4.Balance at year-end 60688532.10 60688532.10
II.Accumulated depreciation and accumulated amortization
1.Balance at year-begin 5624041.29 5624041.29
2.Increase in this year 1914556.36 1914556.36
(1)Provision or amortization 1914556.36 1914556.36
3.Decrease in this year
4.Balance at year-end 7538597.65 7538597.65
III.Impairment provision
IV.Book value
1.Ending book value 53149934.45 53149934.45
2. Opening book value 53888462.00 53888462.00
(2) No investment real estate measured by fair value at year-end.
(3) Particular about mortgage of investment property at year-end.
Name Original book value Accumulated Impairment depreciation provision Book value
House and buildings 5795017.72 2336016.52 3459001.20
168Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(4) Investment real estate without property certification held
Item Book value Reasons for failing to complete property rights certificate
J04workshop 28598032.80 Related property rights in procedure
J03workshop 18358458.77 Related property rights in procedure
J20 air compressor station workshop 1213194.45 Related property rights in procedure
J18 opening and closing office 561651.76 Related property rights in procedure
Total 48731337.78
13. Fixed assets
Item Ending book value Opening book value
Fixed assets 2227247182.81 2315983923.20
Disposal of fixed assets 75875517.11 75875517.11
Total 2303122699.92 2391859440.31
13.1 Fixed assets
(1) Fixed assets
Item House and Machinery Transport Other buildings equipment equipment equipment Total
I.Original book
value
1.Balance at
year-begin 1662291191.07 1728214888.97 34401220.30 203184998.75 3628092299.09
2.Increase in this
year 27873556.43 108970655.97 714358.12 21392088.70 158950659.22
(1)Purchase 456948.23 7962320.28 340818.29 12884220.36 21644307.16
(2)Construction in
progress transfer-in 27277561.53 100990366.69 373539.83 8507868.34 137149336.39
(3)Transfer-in of
investment real estate
(4)Temporary
estimated increase 139046.67 17969.00 157015.67
3.Decrease in this
year 1494549.93 68476976.78 649660.08 4317356.42 74938543.21
(1)Dispose or
retirement 1361476.03 33803574.68 458424.49 3865850.64 39489325.84
(2)Construction in
progress transfer-in 34624899.67 34624899.67
(3)Decreased for
change of foreign rate 191235.59 411446.06 602681.65
(4)Temporary
estimated decrease 133073.90 48502.43 40059.72 221636.05
4.Balance at
year-end 1688670197.57 1768708568.16 34465918.34 220259731.03 3712104415.10
II.Accumulated
depreciation
169Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item House and Machinery Transport Other buildings equipment equipment equipment Total
1.Balance at
year-begin 351313535.78 856306300.29 19765302.96 82704782.54 1310089921.57
2.Increase in this
year 53129495.61 145051493.75 2867992.63 18642556.39 219691538.38
(1)Accrual 53129495.61 145051493.75 2867992.63 18642556.39 219691538.38
(2)Transfer-in of
investment real estate
3.Decrease in this
year 301054.04 42299108.90 473023.89 3252617.32 46325804.15
(1)Dispose or
retirement 301054.04 31581962.79 366211.73 3138954.42 35388182.98
(2)Construction in
progress transfer-in 10717146.11 10717146.11
(3)Decreased for
change of foreign rate 106812.16 113662.90 220475.06
4.Balance at
year-end 404141977.35 959058685.14 22160271.70 98094721.61 1483455655.80
III.Impairment
provision
1.Balance at
year-begin 1877839.70 140614.62 2018454.32
2.Increase in this
year
3.Decrease in this
year 616877.83 616877.83
(1)Dispose or
retirement 616877.83 616877.83
(2)Construction in
progress transfer-in
4.Balance at
year-end 1260961.87 140614.62 1401576.49
IV.Book value
1.Ending book
value 1284528220.22 808388921.15 12305646.64 122024394.80 2227247182.81
2. Opening book
value 1310977655.29 870030748.98 14635917.34 120339601.59 2315983923.20
The new fixed assets in this year mainly due to the 137149336.39 yuan transfer from construction in process; decrease
of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) No fixed assets temporary idle at year-end.
(3) Fixed assets for collateral at year-end
Name Original book value Accumulated Impairment depreciation provision Book value
House and buildings 474545282.09 124871874.37 349673407.72
(4) Fixed assets leased through operating lease at year-end
170Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Original book value Accumulated depreciation Impairment provision Book value
House and buildings 67661253.29 20048471.94 47612781.35
Machinery equipment 32932620.94 10232730.25 22699890.69
Other equipment 10720.00 10184.00 536.00
Total 100604594.23 30291386.19 70313208.04
(5) Fixed assets without property certificate
Item Book value Reason of not complete the property certificate
Testing and experiment center building 38588047.76 Related property rights in procedure
J07 electrical workshop 33682983.47 Related property rights in procedure
J02workshop 30239384.12 Related property rights in procedure
J01workshop 28027990.46 Related property rights in procedure
J05 evaporator and condenser workshop 26372329.92 Related property rights in procedure
II section canteen of living area 20614359.90 Related property rights in procedure
J06 central air-conditioner workshop 17034660.18 Related property rights in procedure
J50finished product warehouse 16090883.18 Related property rights in procedure
J51finished product warehouse 15573450.46 Related property rights in procedure
J53finished product warehouse 11968460.80 Related property rights in procedure
J54finished product warehouse 11130633.03 Related property rights in procedure
J52finished product warehouse 11112957.83 Related property rights in procedure
J55finished product warehouse 10195718.66 Related property rights in procedure
J56finished product warehouse 10195718.66 Related property rights in procedure
J09raw material warehouse 6069550.34 Related property rights in procedure
J10raw material warehouse 4741649.23 Related property rights in procedure
J11raw material warehouse 4657090.87 Related property rights in procedure
4# makeshift shelter 4555173.03 Related property rights in procedure
J08 packing materials warehouse 4414405.94 Related property rights in procedure
J15 house of refrigerant forklift 1281278.22 Related property rights in procedure
J17 chemical storage 1258306.28 Related property rights in procedure
J16 chemical storage 1150603.82 Related property rights in procedure
J19 main guard room 316282.69 Related property rights in procedure
J19A guard room 199757.98 Related property rights in procedure
J19D guard room 146138.64 Related property rights in procedure
J19E guard room 146138.64 Related property rights in procedure
Total 309763954.11
171Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(6) No fixed assets held for sale at year-end
13.2 Disposal of fixed assets
Reasons for
Item Amount at year-end Amount at year-begin 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.Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidong county
the land reserve center of Feidong county will purchase and store the land use right of an economic development zone
located at Feidong county Hefei city which is owned by the Company’s subordinate companies Equator Electric and
Equator Home Appliance respectively with an area of 19245.09 sq.m. (Approximately 28.87 mu Land Use Right
Certificate No.: Dong Guo Yong (2008) No. 0366 the stated use of the land is for industrial purpose) and an area of
46161.9 sq.m. (Approximately 69.24 mu Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367 the stated
use of the land is for industrial purpose). The total consideration for purchasing and storage is approximately 36 million
yuan of which the consideration for the land use right owned by Equator Electric and Equator Home Appliance is
approximately 10.59 million yuan and 25.41 million yuan respectively. The Company has completed the relocation of
occupants of the premises and the net fixed assets in relation to the land will transfer as disposal accounting treatment
will be conduct in line with relevant rules upon receiving of the relocation compensation.No impairment of relevant assets disposal for reserved lands at year-end.
14. Construction in progress
Item Balance at year-end Balance at year-begin
Construction in progress 98469862.45 60775088.96
Total 98469862.45 60775088.96
(1) Details of construction in progress
Amount at year-end Amount at year-begin
Item
Book balance Impairment Book value Book Impairment provision balance provision Book value
Front-end expansion project of Hefei
base with an annual output of 10 million 16686639.69 16686639.69 1304336.29 1304336.29
refrigerator cabinets
2021Manufacturing System Automation
Project (Phase 1) 13973307.43 13973307.43
172Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end Amount at year-begin
Item
Book balance Impairment provision Book value
Book Impairment
balance provision Book value
Industrial Internet Changhong Meiling
Promotion Project 10480730.43 10480730.43
Liquid nitrogen tank production line
construction project 6778105.41 6778105.41
2022 Air Conditioning Company
Manufacturing System Capacity and 6419964.72 6419964.72
Capacity Improvement Project
Refrigerator cabinet efficiency
improvement project 4704867.17 4704867.17
Technical transformation project of
Zhongshan Changhong 4530389.50 4530389.50 6926902.64 6926902.64
Comprehensive renovation project of
mixed flow of rainwater and sewage in 4385756.91 4385756.91
freezer park and living area
Meiling extrusion line relocation and
capacity expansion project 3875215.73 3875215.73
Overseas product upgrade supporting box
shell line door shell line and some old
product competitiveness improvement 3731036.22 3731036.22 9837906.27 9837906.27
projects
The third floor testing and packaging line
technical transformation project 2707964.62 2707964.62
Washing machine business unit MES
system online project 2457735.83 2457735.83 1670775.59 1670775.59
Meiling PLM Project 1636792.46 1636792.46
The fourth-phase unmanned vending
machine and large-volume commercial 4049896.54
cabinet production line project of the 4049896.54
freezer manufacturing company
Meiling Living Area Apartment
Renovation Project 3587155.98 3587155.98
Construction of washing machine plant 3097203.54 3097203.54
Changhong Air Conditioner- relocation
of production base and upgrading & 2942756.39 2942756.39
expansion
New overseas case molding line project 2404757.10 2404757.10
Capacity enlargement and technology
improvement project for Air-conditioner 1724400.82 1724400.82
Company
Construction of laboratory (inspection
center) 1623019.14 1623019.14
Other petty projects 16101356.33 16101356.33 21605978.66 21605978.66
Total 98469862.45 98469862.45 60775088.96 60775088.96
(2) Changes in significant construction in progress
173Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Transfer to
Book
balance at Increase in fixed assets Projects Other decrease Book balance Source of period-begi Current Year in Current at year-end funds
n Year
Changhong Air
Conditioner- relocation
of production base and 2942756.39 9821353.24 9859406.34 2904703.29
Self-rais
ed
upgrading & expansion
Construction of washing
machine plant 3097203.54 2891057.71 5988261.25
Self-rais
ed/ Raise
Construction of
laboratory (inspection 1623019.14 863813.82 2486832.96 Raise
center)
Front-end expansion
project of Hefei base
with an annual output of 1304336.29 21002568.89 5507433.63 112831.86 16686639.69 Self-rais
10 million refrigerator ed
cabinets
(Continued)
including: Interest
Budget (In 10 Proportion of Accumulated interest capitaliza
Projects thousand project Progres amount of capitalized tion rate
yuan) investment in s interest amount of of budget capitalization Current Current
Year Year
Changhong Air Conditioner-
relocation of production base 84791.01 87.88% 99.50% 2570143.02
and upgrading & expansion
Construction of washing
machine plant 37121.00 99.37% 100.00%
Construction of laboratory
(inspection center) 10748.00 86.77% 100.00%
Front-end expansion project
of Hefei base with an annual
output of 10 million 4121.24 54.13% 60.00%
refrigerator cabinets
15. Right-of-use assets
Item House and buildings Total
I.Original book value
1.Balance at year-begin 9818834.44 9818834.44
2.Increase in this year 44252371.53 44252371.53
(1) Rent in 44252371.53 44252371.53
3. Decrease in this year
4.Balance at year-end 54071205.97 54071205.97
174Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item House and buildings Total
II.Accumulated depreciation
1.Balance at year-begin
2. Increase in this year 8703287.66 8703287.66
(1)Accrual 8703287.66 8703287.66
3. Decrease in this year
4.Balance at year-end 8703287.66 8703287.66
III.Impairment provision
1.Balance at year-begin
2. Increase in this year
3. Decrease in this year
4.Balance at year-end
IV.Book value
1.Ending book value 45367918.31 45367918.31
2. Opening book value 9818834.44 9818834.44
The Company accrual the depreciation on right-of-use assets from the commencement date of the lease period.Depending on use of the assets amount of accrual will included in costs of relevant assets or current gain/loss.
16. Intangible assets
(1) Intangible assets
Item Land use right Trademark Non-patent special right technology Other Total
I.Original book
value
1.Balance at
year-begin 869724297.57 283292439.34 532983550.68 61676492.32 1747676779.91
2.Increase in this
year 96213935.50 75577305.10 171791240.60
(1)Purchase 1213441.91 1213441.91
(2) Internal research 95000493.59 75577305.10 170577798.69
(3)Transfer-in of
investment real estate
(4)Other
3.Decrease in this
year 80052685.51 80052685.51
(1) Disposal 80052685.51 80052685.51
(2)Other decreases
175Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Land use right Trademark Non-patent special right technology Other Total
4.Balance at
year-end 869724297.57 283292439.34 549144800.67 137253797.42 1839415335.00
II.Accumulated
amortization
1.Balance at
year-begin 179982060.86 283292439.34 308164231.17 8457055.13 779895786.50
2.Increase in this
year 18491879.00 110061197.59 18728752.65 147281829.24
(1)Accrual 18491879.00 110061197.59 18728752.65 147281829.24
(2)Transfer-in of
investment real estate
3.Decrease in this
year 69677546.64 69677546.64
(1) Disposal 69677546.64 69677546.64
(2)Other decreases
4.Balance at
year-end 198473939.86 283292439.34 348547882.12 27185807.78 857500069.10
III.Impairment
provision
1.Balance at
year-begin 26420977.43 4508495.33 30929472.76
2.Increase in this
year 7957831.68 7957831.68
3.Decrease in this
year 10375138.87 10375138.87
4.Balance at
year-end 24003670.24 4508495.33 28512165.57
IV.Book value
1.Ending book value 671250357.71 176593248.31 105559494.31 953403100.33
2. Opening book
value 689742236.71 198398342.08 48710941.86 936851520.65
The intangible assets resulted from internal research takes 9.27% of the balance of intangible assets at year-end
(2) No land use right without property certification done at year-end
(3) Up to end of the 2021 mortgage of intangible assets is as follows:
N
Name Property certificate serials Area(M2) Net book value ot
e
Land use right HGYJCZi No.: 0121 27120.22 17071247.36
Wan (2019) Property right of Hefei No.:
Land use right 1148244/1148249/1148243/1148240/1148248/1148246/1148241/1148238/1149101/1148242/1148245/ 477550.03 232661191.12
1148239/1148237/1148250/1148247/1149102
Land use right Wan (2019) Property right of Feixi County No.: 0061435/0061445 33383.10 13205239.61
176Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
N
Name Property certificate serials Area(M2) Net book value ot
e
Wan (2019) Property right of Feixi County No.:
Land use right 0061456/0061447/0061438/0061440/0061452/006 82850.51 18191410.79
1450/0061430/0061657
Total 620903.86 281129088.88
17. Development expense
Increase this year Decrease this year
Item Balance at
Internal Included in
Confirmed as Balance at
year-begin development Oth current profits Oth year-end
er intangible assets er
expenditure and losses
Technology
development 27997731.79 114141979.12 1125286.59 101076009.29 39938415.03
for Air-conditioner
Technology
development 45030709.77 72523243.17 261587.71 69501789.40 47790575.83
for refrigerator
Total 73028441.56 186665222.29 1386874.30 170577798.69 87728990.86
18. Goodwill
(1) Original value of goodwill
Increase this year Decrease this year
Formatio Formatio
Invested enterprise Balance at n from n from Balance at
year-begin year-end
enterprise Other enterprise Other
merger merger
Hefei Meiling Group Holdings
Limited 3553367.77 3553367.77
Total 3553367.77 3553367.77
(2) Impairment loss of goodwill
Invested enterprise Balance at
Increase this year Decrease this year Balance at
year-begin Accrual Other Accrual Other year-end
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 year-end.
19. Deferred income tax assets
177Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(1) Deferred income tax assets without the offset
Balance at year-end Balance at year-begin
Deductible Deferred Deductible Deferred
Item
temporary income tax temporary income tax
difference assets difference assets
Deferred income tax assets recognized
from assets impairment 145988355.30 21966046.25 122853362.96 18427787.28
Deferred income tax assets recognized
from accrual liability 11363601.65 1704540.25 55035910.31 8255386.55
Deferred income tax assets recognized
from Dismission welfare 11268982.33 1690347.35 13326014.64 1998902.20
Deferred income tax assets recognized
from deferred income 110534463.54 16580169.53 107392156.36 16108823.46
Deferred income tax assets recognized from
ir-reparable losses 695409549.32 104311432.40 545833222.08 81874983.31
Accrued income tax assets 8238783.30 1235817.50 3467314.27 520097.14
Total 982803735.44 147488353.28 847907980.62 127185979.94
The Company’s long-term equity investment impairment provisions are the investments in its subsidiary Meiling
Candy Washing Machine Co. Ltd. expected to be cancelled in 2022 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
Balance at year-end Balance at year-begin
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liability differences liability
Recognized by fixed assets depreciation 23595650.26 3539347.53 29817828.77 4472674.32
Recognized by changes in fair value 40873919.41 6131087.92 40686053.41 6102908.01
Total 64469569.67 9670435.45 70503882.18 10575582.33
(3) Details of unrecognized deferred income tax assets
Item Balance at year-end Balance at year-begin
Deductible temporary difference 94823765.42 110167308.91
Deductible loss 1075371859.07 880692110.28
Total 1170195624.49 990859419.19
20. Other non-current assets
Item Balance at year-end Balance at year-begin
178Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Prepaid equipment engineering etc. 3087780.59
Total 3087780.59
21. Short-term loans
Category Balance at year-end Balance at year-begin
Loan in pledge 100000000.00
Guaranteed loan 5000000.00 66180000.00
Loan in credit 615000000.00 904237500.00
Bill financing 257880000.00
Interest payable 2874652.77 7911550.55
Total 622874652.77 1336209050.55
Short-term loans at year-end:
1) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co. Ltd. with 362 days in
term. Term of borrowing is from 4 March 2021 to 1 March 2022. Fixed annual interest rate of 3.45% the loan amount
is 30000000.00 yuan.
2) The Company entered into a Cross-border financing loan business contract with Hefei Luyang Branch of China
Construction Bank Corporation with 12 months in term. Term of borrowing is from 24 March 2021 to 23 March 2022.Loan rate of 3.55% the loan amount is 100000000.00 yuan.
3) The Company entered into a Loan Contract with Hefei Luyang Branch of Hangzhou Bank Co. Ltd. with 364 days in
term. Term of borrowing is from 16 July 2021 to 17 July 2022. the interest rate performs the quoted market rate for one
year loans minus 55bp floating on an annual basis the loan amount is 10000000.00 yuan.
4) The Company entered into a Borrowing Contract of Working Capital Loans with Hefei Branch of China Minsheng
Bank Co. Ltd. with 1 year in term. Term of borrowing is from 27 August 2021 to 27 August 2022. Fixed rate of 3.2%
the loan amount is 50000000.00 yuan.
5) The Company entered into Weishang Bank Domestic Letter of Credit Forfaiting Business Contract with Hefei
Economic Development Zone Branch of Huishang Bank Co. Ltd. with 359 days in term. Term of borrowing is from 16
March 2021 to 10 March 2022. Fixed annual interest rate of 3.35% the loan amount is 30000000.00 yuan.
6) The Company entered into Application for opening a domestic letter of credit with Anhui Branch of Bank of China
Limited with 179 days in term. Term of borrowing is from 18 September 2021 to 16 March 2022. Fixed annual interest
rate of 2.6% the loan amount is 10000000.00 yuan.
7) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of China
Minsheng Bank Co. Ltd. with 349 days in term. Term of borrowing is from 29 December 2021 to 13 December 2022.Fixed rate of 2.2% the loan amount is 100000000.00 yuan.
8) The Company entered into a Master Agreement on Domestic Letter of Credit Financing with Hefei Branch of
Industrial Bank Co. Ltd. with 364 days in term. Term of borrowing is from 17 December 2021 to 16 December 2022.Fixed rate of 2.9% the loan amount is 100000000.00 yuan.
9) The Company entered into Contract for the assignment of the seller’s claims without recourse (domestic forfaiting
business) under a domestic letter of credit with Hefei Branch of China Everbright Bank Co. Ltd. with 357 days in term.
179Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Term of borrowing is from 24 December 2021 to 16 December 2022. Fixed rate of 2.9% the loan amount is
180000000.00 yuan.
10) Subsidiary Zhongke Meiling Cryogenic Technology Co. Ltd. entered into a RMB Capital Loan Contract with
Huaining Road Branch of Hefei Science and Technology Rural Commercial Bank. Term of borrowing is from 31
March 2021 to 30 March 2022. Fixed rate of 3.85% the loan amount is 5000000.00 yuan.
11)Anhui Tuoxing Technology Co. Ltd- the wholly-owned subsidiary of Zhongke Meiling Cryogenic Technology Co.
Ltd borrowed from Bank of China Hefei Feicui Road Sub-Branch and entered into the Guarantee Contract with the
above mentioned sub-branch. Term of borrowing is from 1 April to 1 April 2022. Fixed rate of 3.65% the loan amount
is 5000000.00 yuan.
22. Trading financial liability
Item Balance at year-end Balance at year-begin
Trading financial liability 12304272.41 4584076.51
Including: Derivative financial liability 12304272.41 4584076.51
23. Note payable
Type Balance at year-end Balance at year-begin
Bank acceptance 4663885311.94 4232731220.17
Trade acceptance 175952005.84 206876762.17
Total 4839837317.78 4439607982.34
24. Account payable
(1) Account payable
Item Amount at year-end Amount at year-begin
Total 2299103796.88 2851999684.30
Including: Amount aged over 1 year 94640539.62 74369337.19
(2) No major account payable with over one year book age at year-end.
25. Contract liabilities
Item Balance at year-end Balance at year-begin
Total 515004115.23 522550891.28
Including: Amount aged over 1 year 17740130.48 91437631.00
26. Wages payable
(1) Category
180Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-begin Increase this year Decrease this year
Balance at
year-end
Short-term compensation 262858303.46 1489685430.90 1511519677.11 241024057.25
After-service welfare- defined
contribution plans 23650290.96 135777842.19 156932495.50 2495637.65
Dismiss welfare 3813181.63 4685042.49 4973497.46 3524726.66
Total 290321776.05 1630148315.58 1673425670.07 247044421.56
(2) Short-term compensation
Item Balance at year-begin Increase this year Decrease this year
Balance at
year-end
Wages bonuses allowances and
subsidies 246130770.29 1311382721.30 1323371649.51 234141842.08
Welfare for workers and
staff 1156146.23 38521939.29 39578061.74 100023.78
Social insurance 10194113.84 59164627.61 68206754.21 1151987.24
Including: Medical
insurance 9491779.25 54155350.42 62566649.11 1080480.56
Work injury
insurance 461693.28 3375166.25 3826506.22 10353.31
Maternity
insurance 240641.31 1634110.94 1813598.88 61153.37
Housing
accumulation fund 4900053.99 77253766.47 77292017.78 4861802.68
Labor union expenditure
and personnel education 477219.11 3362376.23 3071193.87 768401.47
expense
Total 262858303.46 1489685430.90 1511519677.11 241024057.25
(3) Defined contribution plans
Item Balance at Increase this year Decrease this year Balance at
year-begin year-end
Basic endowment
insurance 21115136.67 130585391.92 150940716.15 759812.44
Unemployment
insurance 2535154.29 5192450.27 5991779.35 1735825.21
Total 23650290.96 135777842.19 156932495.50 2495637.65
181Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
27. Tax payable
Item Balance at year-end Balance at year-begin
Value-added tax 93229596.44 41769712.31
Enterprise income tax 3665806.85 9941386.84
Individual income tax 2593701.11 2781283.48
Urban maintenance and construction
tax 8227864.32 4056939.25
Real estate tax 3758773.24 6370190.14
Land use tax 1550831.89 2701128.78
Educational surtax 4932682.07 2977254.61
Stamp tax 3798892.56 2213950.91
Construction fund of Water
Conservancy Projects 606448.87 643321.87
Treatment fund for abandon electrics
& electronics 18489806.00 13835511.00
Other 1020458.53 2391754.71
Total 141874861.88 89682433.90
28. Other account payable
Item Balance at year-end Balance at year-begin
Dividend payable 4753764.56 4466628.25
Other account payable 746699003.44 720235058.47
Total 751452768.00 724701686.72
28.1 Dividend payable
Item Balance at year-end Balance at year-begin
China Life Insurance (Group) Company 288404.82 263813.22
China Life Insurance Group Co. Ltd. 432607.23 395719.83
BOC- Fullgoal Tianyi Securities Investment Fund 153697.50 153697.50
Hefei Branch of BOC 360506.00 329766.50
Hefei collective industry association 360505.44 329765.99
Entrust Investment Wuhu of Provincial ABC 288404.82 263813.22
Other units 2869638.75 2730051.99
182Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-end Balance at year-begin
Total 4753764.56 4466628.25
28.2 Other account payable
(1) Other account payable by nature
Nature Balance at year-end Balance at year-begin
1.Accrued expenses (expenses occurred without reimbursed) 364248335.74 387297440.24
2. Receivables received temporary and deducted temporary 26847048.85 30995522.33
3.Deposit margin 148778715.05 163264455.70
4.Not the come-and-go with related parties in statement scope 187411658.83 126828746.47
5. Other 19413244.97 11848893.73
Total 746699003.44 720235058.47
(2) At end of the year the major other account payable with account age over one year mainly refers to
the deposit and margin.
29. Non-current liability due within one year
Item Balance at year-end Balance at year-begin
Long-term loan principal and interest due within one year 320520933.33 407141888.08
Long term account payable due within one year 173499.29 683262.66
Lease liabilities due within one year 12024045.63 5000280.67
Total 332718478.25 412825431.41
30. Other current liabilities
Item Balance at year-end Balance at year-begin
Pending sales tax 23388239.94 20376696.94
Factoring fees payable 785519.22 2547001.79
Bill recovery 200000.00
Total 24373759.16 22923698.73
31. Long term borrowings
(1) Category of long term borrowings
Category Amount at year-end Amount at year-begin
Loan in mortgage 168000000.00 188000000.00
183Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Category Amount at year-end Amount at year-begin
Interest payable 231439.30
Total 168000000.00 188231439.30
(2) Long-term borrowings at year-end
Foreig
Borrowing Returning n Interest Amount at Amount at
Loan from
day day curren rate year-end year-begin(RM(RMB) B)
cy
EIBC (Export-Import
Bank) Anhui Province 2020/3/26 2026/11/25 RMB 4.455% 98000000.00 98000000.00
Branch note1
EIBC (Export-Import
Bank) Anhui Province 2019/12/23 2026/11/25 RMB 4.455% 70000000.00 90000000.00
Branch note2
Total 168000000.00 188000000.00
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with
the Export-Import Bank of China Anhui Branch the Company's fixed assets and intangible assets are used as mortgage
for a long-term loan under the contract. And withdrawal of 98000000.00 yuan on March 26 2020. The term of the
loan is from March 26 2020 to November 25 2026 the interest rate of the loan is determined according to the market
quotation rate of the loan with a term of more than 5 years reduced by 0.195% which fluctuates annually and the
amount of the loan is 98000000.00 yuan. The balance at the end of the year is RMB 98000000.00.Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed Assets)" with
the Export-Import Bank of China Anhui Branch the Company's investment real estate fixed assets and intangible
assets are used as mortgage for the loan. The term of the loan is from December 23 2019 to November 25 2026 the
interest rate of the loan is determined according to the market quotation rate of the loan with a term of more than 5
years reduced by 0.195% which fluctuates annually and the amount of the loan is 100000000.00 yuan. According to
the repayment plan agreed with the bank the Company has repaid 10000000.00 yuan. It plans to repay 10000000.00
yuan on June 25 2022 and repay 10000000.00 yuan on December 25 2022 a total of 20000000.00 yuan has been
reclassified to non-current liabilities due within one year. The balance at the end of the year is RMB 70000000.00.
32. Lease liability
Item Balance at year-end Balance at year-begin
Lease liability 33225912.15 4783483.43
Total 33225912.15 4783483.43
33. Long-term payable
Item Balance at year-end Balance at year-begin
Long-term payable 175323.91
Special payable 1337643.24 1530000.00
Total 1337643.24 1705323.91
184Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
33.1 Classify by nature
Nature Balance at year-end Balance at year-begin
Financing lease 175323.91
33.2 Special payable
Item Balance at Increase Decrease Balance at year-begin this year this year year-end Reason
Special funds for
technological Technology plan
transformation from 1530000.000 192356.76 1337643.24 project in
Zhongshan Changhong Zhongshan City
34. Long-term wage payable
Item Balance at year-end Balance at year-begin
Dismissal welfare 9828300.06 10571526.69
According to the internal early retirement policy the long-term payable dismissal welfare bears by the Company up to
year-end amounting to 9828300.06 yuan
35. Accrual liability
Item Balance at year-end Balance at year-begin Reason
Product quality guarantee note1 9170710.48 14487294.50 Guarantee of product
Guarantee fund for quality service note1 399861.15 47905440.57 Guarantee of product
Litigation matters note2 1793030.00
Total 11363601.63 62392735.07
Note 1: Product quality deposit is the maintenance expense provided by the Company under the national policy while
quality service special guarantees 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 2021
the accrual liability that have not been anticipated has written-off in Current Year actually 47303596.97 yuan
written-off.Note2 In November 2021 Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke Meiling for the "Cold
Storage Design Equipment Purchase and Installation Construction Contract". At present the court is organizing a
third-party organization to conduct quality assurance for the objects under the contract. Zhongke Meiling intends to
maintain the cold storage project and the estimated maintenance cost is 1793030.00 yuan.
36. Deferred income
(1) Classification of deferred income
Item Balance at year-begin Increase this year Decrease this year Balance at year-end Reason
185Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at year-begin Increase this year Decrease this year Balance at year-end Reason
Government
subsidies---subsidie 136876337.09 26291400.00 24012651.46 139155085.63
s of development
project
Government
subsidies---subsidie 40501113.03 3992159.83 36508953.20
s of Relocation
Total 177377450.12 26291400.00 28004811.29 175664038.83
186Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(2) Government subsidy
Item Amount at New subsidy in
Amount reckoned
year-begin Current Year into other income in
Other Amount at Assets related/Income
Current Year changes year-end related
Demonstration factory construction for the intelligent manufacturing
of intelligent air-conditioner 49500000.00 6892405.03 42607594.97 Assets related
Demolition compensation of Changhong Meiling 38316384.47 2212271.23 36104113.24 Assets related
Centre for external cooperation of the environmental protection 7614900.00 846100.00 773631.80 7687368.20 Assets related
Key chip and module for transducer used and detection capacity
building 6840000.00 760000.00 7600000.00 Assets related
Adaptability improvement on new coolants production 9459926.70 2364981.69 7094945.01 Assets related
Subsidy for industrial development policy from Hefei for first half of
2018 7794000.00 1250000.00 6544000.00 Assets related
Changhong Air Conditioner- relocation of production base and
upgrading & expansion 6880000.00 382222.24 6497777.76 Assets related
District-level subsidy funds for advanced manufacturing policies in
the first half of 2021 5968900.00 373056.25 5595843.75 Assets related
Advanced Manufacturing Policy Municipal Award in the first half of
2020 5969000.00 746125.00 5222875.00 Assets related
Subsidy for industrial development policy from Hefei for second half
of 2019 5365650.00 894275.00 4471375.00 Assets related
Special fund government subsidy CZ059001 4200000.00 4200000.00 Assets related
20-year subsidy for advancing technological transformation projects 4287400.00 178641.66 4108758.34 Assets related
Policy funds for manufacturing a strong province subsidy for
equipment for the technological transformation of industrial strong 3750000.00 625000.00 3125000.00 Assets related
base
3260000.00 203750.00 3056250.00 Assets related
2021 manufacturing strong provincial policy subsidy funds
RESEARCH AND APPLICATION OF THE VISA (VARIABLE 4462790.72 1409302.32 3053488.40 Assets related
187Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Amount at New subsidy in
Amount reckoned
into other income in Other Amount at Assets related/Income year-begin Current Year Current Year changes year-end related
FREQUENCY VOLUME INTEGRATED INTELLIGENT
AIR-CONDITIONER)
Subsidy for industrial development policy from Hefei for first half of
2020 3440583.33 434600.00 3005983.33 Assets related
Government subsidy for new plant construction - industrialization of
cryogenic refrigeration equipment 3291666.67 500000.00 2791666.67 Assets related
Subsidies for intelligent transformation & upgrading of enterprises
from the new industrialization policy in economic development zone 3280739.58 605675.00 2675064.58 Assets related
2020 supporting funds to support the innovation and development of
artificial intelligence industry 2600000.00 162500.00 2437500.00 Assets related
2020 fund allocation for Anhui Province's triple innovation project 2600000.00 230208.33 2369791.67 Assets related
Research and application of the MCU chip for inverter control 2300000.00 2300000.00 Assets related
Special funds for strategic emerging industry and high-end growth
industry 2000000.00 103448.28 1896551.72 Assets related
Industrialization of intelligent white household appliances software
platform and typical application research and development 2303030.33 727272.73 1575757.60 Assets related
Equipment subsidy for the industrial base technical renovation from
Economic and Information Commission 1547083.33 235000.00 1312083.33 Assets related
Upgrade project for the production line of Mianyang Meiling
Intelligent Refrigerator 1316666.72 197499.96 1119166.76 Assets related
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial
special project 2019) 1397706.70 305646.49 1092060.21 Assets related
Subsidy for equipment purchasing for Hefei Tech. Improvement
project in 2017 1179470.00 179160.00 1000310.00 Assets related
Subsidy for purchase of R & D instruments and equipment 882105.20 182112.52 699992.68 Assets related
Promotion of the energy-saving room air conditioner 858762.97 210309.28 648453.69 Assets related
Emerging Industry Base Fund Support Item 620000.00 6391.75 613608.25 Assets related
Robot policy-rewards for purchasing robots 555156.26 70125.00 485031.26 Assets related
188Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Amount at New subsidy in
Amount reckoned
into other income in Other Amount at Assets related/Income year-begin Current Year Current Year changes year-end related
Promoting the new industry ( annual output of 0.6 million
medium& large volume environmental protection and energy 761031.21 304412.52 456618.69 Assets related
saving freezer)
Demolition compensation of Jiangxi Meiling 2184728.56 1779888.60 404839.96 Assets related
Special fund for technical improvement 484047.64 103809.60 380238.04 Assets related
Special fund for technical improvement 416912.46 61203.84 355708.62 Assets related
Technical transformation of refrigerator evaporator workshop 394062.50 60625.00 333437.50 Assets related
2018 Zhongshan Special fund for industrial development 464508.75 171858.05 292650.70 Assets related
Technical transformation subsidy 209218.33 31779.96 177438.37 Assets related
Refrigerator evaporator production workshop 157262.27 29033.00 128229.27 Assets related
Technical renovation of air conditioner production line 190767.27 96009.00 94758.27 Assets related
Subsidy for the development on production line technical reform for
green-friendly high-quality metal pipe 88600.63 40892.64 47707.99 Assets related
Subsidy for characteristic innovation and entrepreneurship carrier
project 2000000.00 2000000.00 In come related
Technical transformation of the Athena project 869687.52 869687.52 A ssets related
Total 177377450.12 26291400.00 28004811.29 175664038.83
189Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
37. Share capital
Change during the year (+、-)
Item Balance at Shares year-begin New shares Bonus Balance at year-end
issued share transferred from Other Subtotal capital reserve
Total shares 1044597881.00 1044597881.00
38. Capital reserve
Item Amount at year-begin Increase this year Decrease this year Amount at year-end
Share premium 2635663966.42 877657.56 2634786308.86
Other capital
reserve 48173262.70 130171.30 48043091.40
Total 2683837229.12 1007828.86 2682829400.26
Note: Change of the share premium in the year mainly due to the buy-back of B-share 5438.39 yuan in the year; capital
surplus of 872219.17 yuan generated from the repurchase of minority’s interest of Guangzhou Meiling in the year.Other changes in capital reserves this year are changes in capital reserves of subsidiaries acquired by the associated
enterprise Zhiyijia under the same control. The company recognizes capital reserves of RMB 130171.30 according to
the shareholding ratio.
39. Treasury stock
Item Balance at Increase this year Decrease this year Balance at
year-begin year-end
Repurchase of B
9929336.1816501235.2026430571.38
shares
Total 9929336.18 16501235.20 26430571.38
Note: The Company held the 40th session of the 9th BOD the 21st session of the 9th BOS and the third extraordinary
general meeting of shareholders in 2020 on July 27 and August 18 2020 which reviewed and approved the Proposal on
the Repurchase of Part of the Company's Domestically Listed Foreign Shares (B Shares)" and agreed that the company
would use its own funds to repurchase part of the company's domestically listed foreign shares (B shares) through
centralized bidding transactions and the repurchased B shares would be cancelled in accordance with the law and the
registered capital of the company would be reduced accordingly. The total amount of the repurchase should be no less
than 50 million yuan (inclusive) and no more than 100 million yuan (inclusive) based on the central parity rate of
Hong Kong Dollar against RMB on July 24 2020: 1 HKD = 0.9023 yuan equivalent to Hong Kong dollars of not less
than HK$55413942.15 (inclusive) and not more than HK$110827884.30 (inclusive). The specific total amount of
repurchase funds should be subject to the total amount of funds actually used for the repurchase of shares at the
expiration of the repurchase period. The price of repurchasing B shares this time should not exceed HK$2.21/share
(inclusive). After the implementation of the 2020 annual profit distribution plan the upper limit of the price of
repurchasing B shares would be adjusted from HK$2.21/share (inclusive) to HK$2.15/share (inclusive). ).
190Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
On August 24 2021 the company held the 11th session of the 10th BOD the directors of the company unanimously
agreed to the Proposal on Continuing Implementation and Partial Adjustment of the Repurchase of Some Domestically
Listed Foreign Shares (B Shares) of the Company" continued to implement the Plan on Repurchasing Part of the
Company’s Domestically Listed Foreign Shares (B Shares) approved by the previous shareholders' meeting of the
company; at the same time the repurchase period in the aforementioned plan was extended to February 18 2022 that
is the repurchase period was from August 18 2020 to February 18 2022; the repurchase price was adjusted from no
more than HK$2.15/share (inclusive) to no more than HK$2.36/share (inclusive) (not exceeding 150% of the average
trading price of the company's stock in the first 30 trading days prior to the reviews and approval of the 11th meeting of
the tenth BOD); the 9582882 B shares repurchased in the previous period would be cancelled after the expiration of
extension of the repurchase period.As of December 31 2021 a total of 14288639 shares were repurchased and the total repurchase transaction price was
HK$31648618.56 equivalent to 26430571.38 yuan at the real-time exchange rate.
40. Other comprehensive income
Current Year
Less:
written in
other
comprehen
Account sive income
Less：
Balance at Inco Belong to Belong to Item Balance at year-begin before
in previous me parent minority year-end
income tax in period and carried tax company shareholdeCurrent Year forward to expen after tax rs after tax
gains and ses
losses in
current
period
Other comprehensive income re-divided into gains/losses
Conversion
difference arising
from foreign -21451084.17 615920.12 547813.60 68106.52 -20903270.57
currency financial
statement
Total -21451084.17 615920.12 547813.60 68106.52 -20903270.57
41. Surplus reserves
Item Amount at year-begin Increase this year Decrease this year
Amount at
year-end
Statutory surplus reserve 300757088.27 6746446.47 307503534.74
Discretionary surplus
reserve 115607702.16 115607702.16
Total 416364790.43 6746446.47 423111236.90
42. Retained profit
191Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Prior year-end balance 740754202.23 884127743.42
Add: adjustment from undistributed profit at year-begin
Including: retroactive adjustment by Accounting
Standards for Business Enterprise
change of accounting policy
Correction of former material error
Change of combination scope under
common control
Balance at year-begin 740754202.23 884127743.42
Add: net profit attributable to shareholders of parent
company for this year 51898388.84 -85565716.91
Less: withdraw of statutory surplus reserve 6746446.47 5577930.23
withdraw of discretionary surplus reserve
Withdraw of general risk provision
Dividend payable for ordinary shares 51776420.60 52229894.05
Dividend of ordinary shares transferred to share
capital
Balance at year-end 734129724.00 740754202.23
43. Operation income and operation cost
(1) Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main 17331645754.46 15273131473.38
business 14154240737.32 11709373550.27
Other 701311746.98 596614341.09
business 1233809492.35 1141498122.30
Total 18032957501.44 15869745814.47 15388050229.67 12850871672.57
(2) Main business classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator
freezer 8165836380.29 6945620033.21 7677640685.10 6148588872.52
Air-conditioner 6867304359.29 6364053615.99 4619288893.44 4053771792.10
Washing
machine 668996516.82 534901177.78 466805675.50 384583731.12
Small household
appliances and
kitchen and 1330315557.62 1154251783.53 1143165497.06 958061925.19
bathroom
Other 299192940.44 274304862.87 247339986.22 164367229.34
192Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Total 17331645754.46 15273131473.38 14154240737.32 11709373550.27
(3) Main business classified according to sales region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 12521627236.27 10779025843.09 9174395337.92 7413002117.96
Overseas 4810018518.19 4494105630.29 4979845399.40 4296371432.31
Total 17331645754.46 15273131473.38 14154240737.32 11709373550.27
Top five clients have income in sales of 9460098700.85 yuan in total a 52.46 % in total operation income.
（4）Statement of revenue deduction
Last Year
Current Year Detailed
Item In 10 In 10
thousand yuan deduction item thousand yuan
Revenue 1803295.75 1538805.02
business income
Total amount of deduction items from revenue 14438.31 13518.65 unrelated to core
business
Ratio of total amount of deduction items from revenue as
0.800.88—
revenue
Other income other than normal operation. For example
income from renting houses sales of wasting materials and the
14438.3113518.65
income outside the normal operation of the listed
companyalthough recorded in "revenue"
Subtotal of business income unrelated to core business 14438.31 13518.65
Revenue after deduction item 1788857.44 1525286.37
44. Business tax and extra charges
Item Current Year Last Year
Treatment fund for abandon electrics & electronics 44423770.00 54489675.00
City construction tax 19468269.04 27164098.44
Extra charge for education and local education
surcharge 14635736.24 20252422.13
Real estate tax 20177953.31 19343805.61
193Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Stamp duty 15103354.99 12839245.15
Land use tax 8323457.05 7473391.72
Water fund 6923860.11 7156421.01
Other 11363.34 1596453.38
Total 129067764.08 150315512.44
45. Sales expense
Item Current Year Last Year
Salary extra charges and labor service expenses 570204800.54 602311290.04
Market support expenses 305176382.00 300981172.56
National three guarantees expense 141027709.39 90872070.92
Shipping and Installation expense 119830405.37 719028096.35
Storage lease expenses 100617796.86 93417953.55
Travelling expenses 29229678.19 27679048.85
Business activity expenses 17319526.22 7737646.92
Service support expenses 16850832.61 39269346.08
Insurance expenses 12506597.90 14608773.95
Vehicle expenses 9068901.91 1692392.60
Depreciation expenses 8058200.89 7984786.81
Meeting organization expenses 3181909.93 907896.51
Advertising expenses 3009994.39 1423006.42
House-lease expenses 1583945.12 1085901.86
Communication expenses 943777.71 1107112.94
Other expenses 26029945.72 35697303.20
Total 1364640404.75 1945803799.56
46. Administration expense
Item Current Year Last Year
Salary and social insurance etc. 212452104.33 170017710.90
Depreciation 23489510.10 19860652.31
Amortized intangible assets 18074719.94 18997141.21
Water and electricity fee 6561477.70 6596531.99
Business activities fee 5277048.90 3421679.60
Property insurance fee 5264916.64 5727401.94
Domestic travelling fee 3365425.65 3138305.00
Office fee 1954323.86 1847681.31
Board fees 1819196.77 1446841.30
194Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Inspection and authentication fee 588177.67 648176.21
Other expenses 54741873.81 48543562.79
Total 333588775.37 280245684.56
47. R&D expenses
Item Current Year Last Year
Salary and social insurance etc. 169613060.06 124899251.69
Amortized intangible assets 123668238.26 114668760.56
Trial fee of R&D 41894900.89 44713078.54
Technical development cost 35425186.62 23589293.27
Inspection and authentication fee 23112922.97 15455566.85
Depreciation 17122874.36 15179901.55
Cost of mould 9335908.93 5534614.33
Software royalty 2174741.57 755542.28
Domestic travel expenses 1967777.25 969236.31
Other expenses 41575485.18 34873677.53
Total 465891096.09 380638922.91
48. Financial expenses
Item Current Year Last Year
Interest expenditure 71229760.29 88262152.17
Less: Interest income 140024813.71 139603245.84
Add: exchange loss 3784522.39 33026909.13
Procedure charge expenditure 19062243.58 19928603.14
Discount expenditure -12454495.35 -7144403.44
Total -58402782.80 -5529984.84
49. Other income
Item Current Year Last Year
Industrial development policy subsidy 27000000.00 28058461.33
Immediate refund of VAT for software products 9172445.35 4858596.32
Demonstration factory construction for the intelligent manufacturing of
6892405.03
intelligent air-conditioner
2021 foreign trade and economic development funds 4312000.00
2020 foreign trade promotion policy 2746604.00
Adaptability improvement on new coolants production 2364981.69 2364981.72
Subsidy for export credit insurance 2344865.00 7516778.79
195Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Demolition compensation of Changhong Meiling 2212271.23 2297010.33
2021 provincial industrial development special project fund 2200000.00
VAT refund 2095773.00
Subsidy for characteristic innovation and entrepreneurship carrier project 2000000.00
Demolition compensation of Jiangxi Meiling 1779888.60 1779888.60
Government subsidies for settlement 1500000.00
The first batch of provincial industrial development special fund subsidies in
1490000.00
2021
RESEARCH AND APPLICATION OF THE VISA (VARIABLE
FREQUENCY VOLUME INTEGRATED INTELLIGENT 1409302.32 1409302.32
AIR-CONDITIONER)
2021 support for the development of China's Sound Valley 1395000.00
2021 manufacturing strong provincial policy subsidy funds 1320000.00
Subsidy for industrial development policy from Hefei for first half of 2018 1250000.00 1250000.00
Special funds for port logistics 1144395.00
Economic Development Zone Industrialization Policy Award and
1140400.00
Supplementary Funds in 2019
The second batch of funds to support China's Sound Valley construction
1044200.00
project in 2020
20020 product testing fee subsidy 1000000.00
Hefei City 2020 smart home appliance (home) technology award and subsidy 1000000.00
Reward and subsidize national specialized special and new "little giant"
1000000.00
enterprises
2021 Industrial Internet Policy Award and Subsidy 1000000.00
Incentives for major scientific and technological projects 1000000.00
"Double Top 100" Enterprise Rewards 1000000.00
2021 Special project for the construction of innovation capability and
900000.00
industrial upgrading platform
Subsidy for industrial development policy from Hefei for second half of 2019 894275.00 1788550.00
Technical transformation of the Athena project 869687.50 4008124.98
Subsidy for revitalizing idle factories 843732.00 843732.00
Centre for external cooperation of the environmental protection 773631.80
Advanced Manufacturing Policy Municipal Award in the first half of 2020 746125.00
Industrialization of intelligent white household appliances software platform
727272.73727272.72
and typical application research and development
Modern service industry development policy funds 714500.00
2020 undertake industrial transfer to promote the innovation and development
652039.00
of processing trade funds
Policy funds for manufacturing a strong province subsidy for equipment for 625000.00 625000.00
196Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
the technological transformation of industrial strong base
Talent subsidy 616436.00 1931630.00
Subsidies for intelligent transformation & upgrading of enterprises from the
605675.00605675.00
new industrialization policy in economic development zone
Technology Insurance Grant 600000.00
Skills Upgrading Training Program 600000.00
Patent reward 515800.00
Government subsidy for new plant construction - industrialization of
500000.00500000.00
cryogenic refrigeration equipment
2021 triple innovation platform funds 500000.00
Intellectual Property Special Fund 500000.00 205000.00
Subsidy for industrial development policy from Hefei for first half of 2020 434600.00 36216.67
Artificial Intelligence Project Grants 414000.00
Q4 of 2020 Land Use Tax Return 400534.76
The first batch of scientific and technological innovation policy high-level title
400000.00
awards in 2020
Changhong Air Conditioner- relocation of production base and upgrading &
382222.24
expansion
Property Tax Rebate for Q4 of 2020 373459.10
District-level subsidy funds for advanced manufacturing policies in the first
373056.25
half of 2021
2021 special awards and subsidies for energy conservation and ecological
347600.00
construction
Personal tax handing fee refund
333648.78219724.18
Subsidy from Zhongshan Finance Bureau (CZ028001 provincial special project
305646.49305646.49
2019)
Promoting the new industry ( annual output of 0.6 million medium& large
304412.52304412.52
volume environmental protection and energy saving freezer)
Zhongshan City Increases Incentive Projects for Enterprises with Outstanding
300000.00
Contribution to Stabilizing Foreign Trade
2019 District-level Industrial Policy Science and Technology Innovation
300000.00
Policy
Overseas investment insurance subsidy 290171.00
Hefei Standardization Policy Award and Subsidy 290000.00
Subsidies for scientific and technological innovation projects 281000.00
Subsidy for instruments and equipment 265400.00
2021 technological transformation and financial incremental contribution
259100.00
incentive policy awards and subsidies
2021 special funds for industrial development in Zhongshan City 250000.00
197Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Policies support the separation of main and auxiliary enterprises 249845.00
Equipment subsidy for the industrial base technical renovation from Economic
235000.00235000.00
and Information Commission
2020 fund allocation for Anhui Province's triple innovation project 230208.34
Promotion of the energy-saving room air conditioner 210309.28 210309.24
2021 manufacturing strong provincial policy subsidy funds 203750.00
Incentives for "Innovative and Entrepreneurial Teams at the Start-up Stage" 200000.00
Provincial service-oriented manufacturing demonstration enterprise bonus 200000.00
Anhui Province Manufacturing High-end Brand Cultivation Enterprise Project
200000.00
Award and Subsidy
Design achievement industrialization project subsidy 200000.00
2020 Annual Outstanding Enterprise Award Fund 200000.00
Upgrade project for the production line of Mianyang Meiling Intelligent
197499.96197499.96
Refrigerator
Subsidy for purchase of R & D instruments and equipment 182112.52 167482.30
Subsidy for equipment purchasing for Hefei Tech. Improvement project in
179160.00179160.00
2017
2020 subsidy for advancing technological transformation projects 178641.67
2018 Zhongshan Special fund for industrial development 171858.05 265723.80
2020 High-quality Development Several Supporting Policy Awards 170000.00
2020 supporting funds to support the innovation and development of artificial
162500.00
intelligence industry
2020 special funds for port logistics 135660.00
2020 supporting industry linkage development 128100.00
Military-civilian integration insurance premium subsidy 127451.00
Outstanding Contribution Award for Enterprises to Promote High-Quality
120000.00
Development
2020 Science and Technology Innovation Policy Award and Subsidy for
104000.00
Economic and Technological Development Zone
Special fund for technical improvement 103809.60 63193.35
Special funds for strategic emerging industry and high-end growth industry 103448.28
Enterprise policy funds of the Economic and Trade Development Bureau of
3074766.67
the Joint Economic Zone
Subsidy for employment stable 5520715.46
Several policy subsidies in Anhui Province to support the development of the
3500000.00
digital economy
Nanjing Port Special Subsidy Fund 2571170.00
Room air conditioner industry propane production line to increase operating
2403000.00
cost subsidies
198Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Sichuan Province Account receivable financing core enterprise reward and
2369300.00
subsidy funds
Technology Innovation and Enterprise Development Fund 1895786.40
Fiscal Incremental Contribution Project Subsidy for Technological
1681100.00
Transformation
Subsidies for large enterprises and large groups to drive SMEs to integrate
1430000.00
development projects
Joint Economic Finance Provincial Foreign Trade Fund Subsidy 1338474.94
2019 incentives for promoting high-quality development of the manufacturing
1275000.00
industry
2018 Special Fund for Foreign Economic and Trade Development and Port
1062566.00
Construction
Policy Subsidies for Promoting Science and Technology Innovation 987900.00
Provincial innovation-driven development special funds 800000.00
Epidemic subsidies 771450.00
Changhong Meiling Freezer Project 734062.42
State-funded project - research and development of frequency conversion
700000.00
control chips
Corporate subsidy income 665061.00
Special funds for enterprises 630000.00
Tax Contribution Award 584300.00
Special funds for overseas investment insurance 576699.00
Logistics Subsidy 550000.00
Tax refunds received 523166.43
Integrated Circuit Industry Policy Fund 500000.00
Corporate Brand Cultivation Grant 500000.00
International market development subsidy for SMEs 377144.00
Industrial Development Fund 200000.00
Technical transformation subsidy 108581.67
Technical renovation of air conditioner production line 95829.50
Special fund for technical improvement 61203.83
Technical transformation of refrigerator evaporator workshop 60625.00
Subsidy for the development on production line technical reform for
40892.60
green-friendly high-quality metal pipe
Refrigerator evaporator production workshop 29033.04
Technological Transformation Fund 10000.00
Robot policy-rewards for purchasing robots 5843.74
Other petty projects 3495382.00 3534135.95
Total 108992292.09 104122180.27
199Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
50. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 12422382.59 -3500527.61
Investment income obtained from disposal of tradable financial assets 95088495.95 46456622.69
Income from financial products 13856905.10 7952740.73
Investment income of other non-current financial assets during holding period 7596184.95 27218378.81
Total 128963968.59 78127214.62
51. Changes in fair value gains
Item Current Year Last Year
Tradable financial assets -29245252.88 39512070.15
Including :Income of fair value changes from derivative financial instruments -29245252.88 39512070.15
Trading financial liability -7720195.90 -3506201.30
Including :Income of fair value changes from derivative financial instruments -7720195.90 -3506201.30
Other non-current financial assets 33831509.36 5608931.34
Total -3133939.42 41614800.19
52. Credit impairment loss
Item Current Year Last Year
Note receivable bad debt loss 8481942.30 -6578442.30
Account receivable bad debt loss -29230616.84 -14508281.88
Other account receivable bad debt loss -235222.39 4028236.18
Total -20983896.93 -17058488.00
53. Assets impairment loss
Item Current Year Last Year
Loss on inventory valuation -49526210.35 -56152155.82
Impairment loss on intangible assets -7957831.68 -22114421.01
Impairment loss on fixed assets -445081.08
Total -57484042.03 -78711657.91
54. Income from assets disposal
Amount reckoned
Item Current Year Last Year into non-recurring gains/losses in
Current Year
Income from non-current assets disposal -133214.72 -500976.21 -133214.72
200Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount reckoned
Item Current Year Last Year into non-recurring gains/losses in
Current Year
Including: income classify to assets ready for
sale
income not classify as to assets ready
for sale -133214.72 -500976.21 -133214.72
Including: Income from fixed assets
disposal -133214.72 -500976.21 -133214.72
Income from intangible assets
disposal
Total -133214.72 -500976.21 -133214.72
55. Non-operation revenue
Amount reckoned
Item Current Year Last Year into non-recurring gains/losses in
Current Year
Income of penalty 1258456.10 561010.41 1258456.10
Other 8763597.78 7907595.00 8763597.78
Total 10022053.88 8468605.41 10022053.88
56. Non-operating expenditure
Item Current Year Last Year Amount reckoned into non-recurring gains/losses in Current Year
Non-current asset retirement
losses 1524444.23 1610319.34 1524444.23
Public welfare donation
expenditure 11000.00 413569.21 11000.00
Penalty and late fee 604687.12 556035.82 604687.12
Other 3013937.15 5064717.27 3013937.15
Total 5154068.50 7644641.64 5154068.50
57. Income tax expenses
Item Current Year Last Year
Current income tax 23630449.16 18657750.29
Deferred income Tax -21207520.22 -25413978.61
Total 2422928.94 -6756228.32
58. Other comprehensive income
Found more in 40. Other comprehensive income in VI
201Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
59. 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 Year Last Year
Government subsidy and rewards 100949021.63 95927171.54
Collection of restriction fund 93302596.49 7872582.73
Cash deposit deposit 31184841.18 37095731.45
Rental income 5605416.80 7062728.75
Compensations 1271453.02 2594225.87
Petty cash collection 711008.91 669366.91
Other 10524796.11 7854834.00
Total 243549134.14 159076641.25
2) Cash paid for other activities relating to operation
Item Current Year Last Year
Market expenses 222791063.19 255164897.06
Rental fee 120806416.80 119053780.02
Petty cash deposit Cash deposit 60780516.64 54464272.08
Travel expenses meeting fees and exhibition
fees 44379229.38 36309468.38
Service support fee 41594786.19 70451962.30
Inspection and certification fee certification
charge and reviewing fee 35467610.78 35181026.65
Technological cooperation costs and consulting
charge 26209006.41 21277315.33
Repair fee 22676804.70 13097229.57
Convert to restricted funds 20079453.92 76693696.74
Transportation and vehicle costs 17397441.98 22580186.94
Business activity fee 17242092.12 14449890.29
Handling fee 14499999.53 11957196.81
Office expenses 8072340.01 8118120.21
Advertising fee 5344491.93 7478184.84
Communication costs 3420542.01 2211811.13
Board expenses 2006972.68 1831261.76
Labor fee 1856562.73 6369121.47
Other expense 143929062.93 101246863.15
Total 808554393.93 857936284.73
3) Cash received from other activities relating to investment
202Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Interest income arising from bank savings 137430181.38 139527348.90
Foreign exchange investment income 112471926.55 47402894.53
Cash deposit 867288.00 1317038.52
other 525518.72
Total 251294914.65 188247281.95
4) Cash paid for other activities relating to investment
Item Current Year Last Year
Loses of forward exchange settlement 66334.39 946271.84
Bid bond refund 2000.00 40000.00
Total 68334.39 986271.84
5) Cash received from other activities relating to financing
Item Current Year Last Year
Recover loan cash deposit 23232000.00
Meiling series (internal) bill discounting
fundraising 14136579.91 4919427.20
Total 14136579.91 28151427.20
6) Cash paid for other activities relating to financing
Item Current Year Last Year
Payment for B share repurchase 16506673.59 9934941.56
Lease liability principal and interest 10862303.71
Financing lease 701295.52 2570997.36
Handling charge of dividend 36415.52 36893.14
Meiling series (internal) bill discounting
fundraising 216853.94
Total 28323542.28 12542832.06
(2) Supplementary of the consolidated cash flow statement
Item Current Year Last Year
1. Net profit is adjusted to cash flow of operation
activities:
Net profit 87092653.50 -79122112.48
Add: provision for depreciation of assets -9614635.07 30982642.44
Depreciation of fixed assets consumption of oil gas 221606094.74
assets and depreciation of productive biological assets 224389307.35
Amortization of intangible assets 147281829.24 138997172.49
Depreciation of right-of-use assets 8703287.66
203Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Current Year Last Year
Amortization of long-term retained expense 133214.72 500976.21
Loss from disposal of fixed assets intangible assets and
other long term assets (gain is listed with “-”) 828934.22 1610319.34
Loss from discarding fixed assets as useless (gain is
listed with “-”) 3133939.42 -41614800.19
Loss from change of fair value (gain is listed with “-”) -65010531.03 -18314184.54
Financial expense (gain is listed with “-”) -128963968.59 -78127214.62
Investment loss (gain is listed with “-”) -20302373.34 -29732801.80
Decrease of deferred income tax assets (increase is listed
with “-”) -905146.88 4318823.19
Increase of deferred income tax liabilities (decrease is
listed with “-”) 384573713.19 -249696219.79
Decrease of inventories (increase is listed with “-”) -56907214.37 196371339.03
Decrease of operational accounts receivable (increase is
listed with “-”) -481355049.55 1247489556.08
Other 70628510.24 55463419.75
Net cash flow arising from operation activities 160923258.10 1403516222.46
2. Major investment and financing activities that do
not involve cash receipts:
Conversion of debt into capital
Switching Company bonds due within one year
financing lease of fixed assets
3. Net change in cash and cash equivalents:
Balance at year-end of cash 5840194931.57 6425529815.10
Less: Balance at year-begin of cash 6425529815.10 5385807475.51
Add: Balance at year-end of cash equivalents
Less: Balance at year-begin of cash equivalents
Net increase in cash and cash equivalents -585334883.53 1039722339.59
(3) No net cash paid for subsidiary obtained in Current Year
(4) No net cash received from subsidiary disposal in Current Year
(5) Cash and cash equivalent
Item Balance at Balance at year-end year-begin
Cash 5840194931.57 6425529815.10
Including: cash in stock 28447.21 35088.07
Bank deposits available for payment at any time. 5121110089.59 6049544898.32
Other monetary fund available for payment at any time 719056394.77 375949828.71
Cash equivalents
Including: bond investment due within 3 months
Balance of cash and cash equivalents at year-end 5840194931.57 6425529815.10
204Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Balance at Balance at year-end year-begin
Including: using the restricted cash and cash equivalents of the parent
company or subsidiary of the group
60. Assets with ownership or the right to use restricted
Item Ending book value Reasons
Monetary fund 86159526.57 Cash deposit Frozen funds
Receivables financingnote1 385477263.99 Pledged
Investment real estate note2 3459001.20 Mortgage
Fixed assetsnote2 349673407.72 Mortgage
Intangible assets note2 281129088.88 Mortgage
Total 1105898288.36
Note 1: The note receivable listed in receivables financing 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: The mortgage of investment real estate fixed assets and intangible assets is the mortgage of houses and
buildings and land use rights. For details please refer to Note VI. 31. Long-term loans.
61. Foreign currency
(1) Foreign currency
Item Ending foreign currency balance Exchange rate Ending RMB converted balance
Monetary fund 283387585.88
Including: USD 34885290.26 6.3757 222418145.11
Euro 2124713.55 7.2197 15339794.41
HKD 25152663.76 0.8176 20564817.89
GBP 48778.04 8.6064 419803.32
PKR 40666810.33 0.0358 1455871.81
IDR 7725531406.00 0.000447 3453312.54
AUD 3800493.87 4.6220 17565882.66
PHP 17345788.49 0.1251 2169958.14
Account receivable 666814490.39
Including: USD 79915042.38 6.3757 509514335.70
Euro 3538476.86 7.2197 25546741.39
GBP 75158.80 8.6064 646846.70
PKR 1192749085.67 0.0358 42700417.27
IDR 67017028612.98 0.000447 29956611.79
205Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Ending foreign currency balance Exchange rate Ending RMB converted balance
AUD 12402296.19 4.6220 57323412.99
PHP 9001795.00 0.1251 1126124.55
Other account receivable 1744764.74
Including: USD 155081.70 6.3757 988754.39
PKR 13315160.00 0.0358 476682.73
IDR 496610000.00 0.000447 221984.67
PHP 458376.92 0.1251 57342.95
Account payable 33855926.41
Including: USD 10463.31 6.3757 66710.93
Euro 13419.32 7.2197 96883.46
PKR 578994689.54 0.0358 20728009.89
IDR 16169496599.55 0.000447 7227764.98
PHP 45855772.61 0.1251 5736557.15
Other account payable 12680711.20
Including: USD 3670.81 6.3757 23403.98
HKD 17362.53 0.8176 14195.61
PKR 272926893.34 0.0358 9770782.78
IDR 5685314384.79 0.000447 2541335.53
PHP 2645829.76 0.1251 330993.30
(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. CH-Meiling International (Philippines) Inc
mainly operates in Philippines; Recording currency is PHP.
62. The Company uses the forwarding foreign exchange contract to hedge the risks of exchange rate
fluctuations and designates the forwarding foreign exchange contract purchased as hedging
instruments for delivery at maturity. We adopts the ratio analysis to evaluate the effectiveness of
hedging. Details are below:
Carrying value of the hedging
instrument on December 31
Item Items of balance sheet present 2021 include the hedging instruments
Fair value hedges
Exchange rate risk - forward foreign
exchange contracts 17997086.19 Trading financial assets
206Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Exchange rate risk - forward foreign
exchange contracts 12304272.41 Trading financial liabilities
63.Government subsidy
Amount
Item Amount Item reckoned into current
gain/loss
Industrial Development Policy Subsidy Fund 27000000.00 Other income 27000000.00
VAT refund on software products 9172445.35 Other income 9172445.35
Advanced Manufacturing Policy Municipal Award in the 5969000.00 Deferred income 746125.00
first half of 2020
District-level subsidy funds for advanced manufacturing 5968900.00 Deferred income 373056.25
policies in the first half of 2021
2021 foreign trade and economic development funds 4312000.00 Other income 4312000.00
2020 subsidy for advancing technological transformation 4287400.00 Deferred income 178641.66
projects
2021 manufacturing strong provincial policy subsidy 3260000.00 Deferred income 203750.00
funds
Loan discount 3204404.00 Financial 3204404.00
expenses
Other petty projects 3099321.81 Other income 3099321.81
2020 foreign trade promotion policy 2746604.00 Other income 2746604.00
2020 supporting funds to support the innovation and 2600000.00 Deferred income 162500.00
development of artificial intelligence industry
2020 fund allocation for Anhui Province's triple 2600000.00 Deferred income 230208.33
innovation project
Export Credit Insurance Subsidy 2344865.00 Other income 2344865.00
2021 provincial industrial development special project 2200000.00 Other income 2200000.00
fund
VAT refund 2095773.00 Other income 2095773.00
Settled in government subsidies 1500000.00 Other income 1500000.00
The first batch of provincial industrial development 1490000.00 Other income 1490000.00
special fund subsidies in 2021
2021 support for the development of China's Sound 1395000.00 Other income 1395000.00
Valley
2021 manufacturing strong provincial policy subsidy 1320000.00 Other income 1320000.00
funds
Special funds for port logistics 1144395.00 Other income 1144395.00
Economic Development Zone Industrialization Policy 1140400.00 Other income 1140400.00
Award and Supplementary Funds in 2019
The second batch of funds to support China's Sound 1044200.00 Other income 1044200.00
Valley construction project in 2020
2020 product testing fee subsidy 1000000.00 Other income 1000000.00
Hefei City 2020 smart home appliance (home) 1000000.00 Other income 1000000.00
207Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount
Item Amount Item reckoned into current
gain/loss
technology award and subsidy
Reward and subsidize national specialized special and 1000000.00 Other income 1000000.00
new "little giant" enterprises
2021 Industrial Internet Policy Award and Subsidy 1000000.00 Other income 1000000.00
Incentives for major scientific and technological projects 1000000.00 Other income 1000000.00
"Double Top 100" Enterprise Rewards 1000000.00 Other income 1000000.00
2021 Special project for the construction of innovation 900000.00 Other income 900000.00
capability and industrial upgrading platform
Centre for external cooperation of the environmental 846100.00 Deferred income 773631.80
protection
Subsidy for revitalizing idle factories 843732.00 Other income 843732.00
Key chip and module for transducer used and detection 760000.00 Deferred income
capacity building
Modern service industry development policy funds 714500.00 Other income 714500.00
2020 undertake industrial transfer to promote the 652039.00 Other income 652039.00
innovation and development of processing trade funds
Talent subsidy 616436.00 Other income 616436.00
Technology Insurance Grant 600000.00 Other income 600000.00
Skills Upgrading Training Program 600000.00 Other income 600000.00
Patent reward 515800.00 Other income 515800.00
2021 innovation platform funding for “Three Re- & 500000.00 Other income 500000.00Creating”
ntellectual property funds 500000.00 Other income 500000.00
Artificial Intelligence Project Grants 414000.00 Other income 414000.00
Land Use Tax Return for Q4 of 2020 400534.76 Other income 400534.76
The first batch of scientific and technological innovation 400000.00 Other income 400000.00
policy high-level title awards in 2020
Property Tax Rebate for Q4 of 2020 373459.10 Other income 373459.10
2021 special awards and subsidies for energy 347600.00 Other income 347600.00
conservation and ecological construction
Personal tax handling fee refund 333648.78 Other income 333648.78
Zhongshan City Increases Incentive Projects for
Enterprises with Outstanding Contribution to Stabilizing 300000.00 Other income 300000.00
Foreign Trade
2019 District-level Industrial Policy Science and 300000.00 Other income 300000.00
Technology Innovation Policy
Overseas investment insurance subsidy 290171.00 Other income 290171.00
Hefei Standardization Policy Award and Subsidy 290000.00 Other income 290000.00
Subsidies for scientific and technological innovation 281000.00 Other income 281000.00
projects
208Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount
Item Amount Item reckoned into current
gain/loss
Equipment Subsidy 265400.00 Other income 265400.00
2021 technological transformation and financial
incremental contribution incentive policy awards and 259100.00 Other income 259100.00
subsidies
2021 special funds for industrial development in 250000.00 Other income 250000.00
Zhongshan City
Policies support the separation of main and auxiliary 249845.00 Other income 249845.00
enterprises
Incentives for "Innovative and Entrepreneurial Teams at 200000.00 Other income 200000.00
the Start-up Stage"
Provincial service-oriented manufacturing demonstration 200000.00 Other income 200000.00
enterprise bonus
Design achievement industrialization project subsidy 200000.00 Other income 200000.00
Anhui Province Manufacturing High-end Brand 200000.00 Other income 200000.00
Cultivation Enterprise Project Award and Subsidy
2020 Annual Outstanding Enterprise Award Fund 200000.00 Other income 200000.00
2020 High-quality Development Several Supporting 170000.00 Other income 170000.00
Policy Awards
2020 special funds for port logistics 135660.00 Other income 135660.00
2020 supporting industry linkage development 128100.00 Other income 128100.00
Military-civilian integration insurance premium subsidy 127451.00 Other income 127451.00
Outstanding Contribution Award for Enterprises to 120000.00 Other income 120000.00
Promote High-Quality Development
2020 Science and Technology Innovation Policy Award
and Subsidy for Economic and Technological 104000.00 Other income 104000.00
Development Zone
Total 110483284.80 86859797.84
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: nil
6. Subsidiary newly established:
Name of company New merger
Shareholding Net asset at Net profit in
reasons ratio year-end Current Year
Anhui Ling'an Medical
Equipment Co. Ltd Investment 63.2683% 8748630.52 -1251369.48
209Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
7. Subsidiary merger by absorption
Name of company Equity ratio before absorption (%) Time for absorption
Guangzhou Meiling Electric Appliances Marketing Co. Ltd 100 November 2021
Tianjin Meiling Electric Appliances Marketing Co. Ltd 100 November 2021
Tai yuan Meiling Electric Appliances Marketing Co. Ltd 100 November 2021
In November 2021Hefei Meiling Electrical Marketing Co. Ltd (hereinafter referred to Meiling Marketing) purchase
20% equity of Guangzhou Meiling Electric Appliances Marketing Co. Ltd.(hereinafter referred to Guangzhou Meiling)
from minority shareholder Chen Wenyan. Later Hefei Meiling Group Holdings Limited (hereinafter referred to Meiling
Group) purchase 100% equity of Guangzhou Meiling from Meiling Marketing purchase 100% equity of Tianjian
Meiling Electric Appliances Marketing Co. Ltd.(hereinafter referred to Tianjin Meiling) from Meiling Marketing and
Jiangxi Meiling Electric Appliance Co. Ltd and purchase 100% equity of Tai yuan Meiling Electric Appliances
Marketing Co. Ltd.(hereinafter referred to Tai yuan Meiling) from Meiling Marketing for absorption merger. As of
December 31 2021 all three acquired companies have not yet completed their business cancellation.VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise groupShareholding ratio（%)Main office Registration
Subsidiary Business nature Indirectlplace place Acquire by Directly
y
Zhongke Meiling Cryogenic Technology Manufacturing and
Co. Ltd.1) Hefei Hefei sales 63.2683 Investment
Sichuan Hongmei Intelligent Technology2) 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. Hefei Hefei Software Ltd5) development 100 Investment
Hefei Meiling Electrical Marketing Co.Ltd6) Hefei Hefei Sales 99.82 0.18 Investment
Jinan Xiangyou Electric Appliances
Marketing Co. Ltd 7) Jinan Jinan Sales 93.4 Investment
Wuhan Meizirong Electrical Marketing Co.Ltd 8) Wuhan Wuhan Sales 92 Investment
Zhengzhou Meiling Electric Appliances Zhengzho
Marketing Co. Ltd 9) Zhengzhou u Sales 100 Investment
Enterprise
Hefei Meiling Nonferrous Metal Products combined
Co. Ltd.10) Hefei Hefei
Manufacturing and
sales 100 under the different
control
210Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)Shareholding ratio（%)Main office Registration
Subsidiary Business nature Indirectlplace place Acquire by Directly
y
Enterprise
Changhong Meiling Ridian Technology Zhongshan Z hongshan M anufacturing and 99.0361 combined Co. Ltd.11) sales under the same
control
CHANGHONG MEILING
ELECTRICINDON ESIAPT 12) Jakapta Jakapta Sales 100 Investment
ChanghongRubaTradingCompany(Private)
Limited 13) Pakistan Pakistan Sales 60 Investment
Enterprise
Sichuan Changhong Air-conditioner Co.Ltd. 14) Mianyang Mianyang
Manufacturing and
sales 100
combined
under the same
control
Enterprise
Zhongshan Changhong Electric Co.Ltd.15) Zhongshan Z hongshan
M anufacturing and combined sales 90 10 under the same
control
Enterprise
Hefei Meiling Group Holdings Limited16) Hefei Hefei Manufacturing and
combined
sales 100 under the different
control
Enterprise
Meiling Equator Household Appliance Hefei Hefei Manufacturing
combined
(Hefei) Co. Ltd. 17) and sales 100 under the different
control
Enterprise
Hefei Equator Appliance Co. Ltd. 18) Hefei Hefei Manufacturing
combined
and sales 100 under the different
control
Hong Yuan Ground Energy Heat Pump
Tech. Co. Ltd19) Mianyang Mianyang
Manufacturing
and sales 51 Investment
Ground Energy Heat Pump Tech. Manufacturing
(Zhongshan) Co. Ltd. 20) Zhongshan Zhongshan and sales 51 Investment
Meiling CANDY Washing Machine Co.Ltd. 21) Hefei Hefei
Manufacturing
and sales 60 Investment
Guangzhou Changhong Trading Co.Ltd.22) Guangzhou Guangzhou Sales 100 Investment
Hebei Hongmao Household Appliance Handan Handan Manufacturing and 99.036Technology Co. Ltd23) sales 1 Investment
Anhui Tuoxing Technology Co. Ltd.24) Hefei Hefei R&D of technology 63.2683 Investment
CH-Meiling.International (Philippines)
Inc.25) Philippines Philippines Sales 100 Investment
Hefei Changhong Meiling Life Appliances
Co. Ltd. 26) Hefei Hefei Sales 70 Investment
Anhui Ling'an Medical Equipment Co. Ltd Lu'an Lu'an Manufacturing 27) and sales 63.2683 Investment
Note：
211Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
1) Zhongke Meiling Cryogenic Technology Co. Ltd. (hereinafter referred to as Zhongke Meiling) the 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 60 million yuan upon the establishment among which the Company made capital contribution of
42 million yuan (including the assets in specie at the consideration of 35573719.70 yuan as evaluated by Beijing
Zhongzheng Appraisal Co. Ltd. with issuance of the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of
6426280.30 yuan) accounting for 70% of the aforesaid registered capital and TIPC made capital contribution of 18
million yuan 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 BOD 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 96 431978.25 yuan 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 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 2nd BOD 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
212Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 sharecapital increased to 72548200 shares which was verified by [No. XYZH/2020CDA30002] “Capital VerificationReport” 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 5 million yuan including 4.95 million yuan contributed by Changhong Meiling Company in cash
accounted for 99% of the registered capital; Mianyang Meiling Refrigeration Co. Ltd. contributed 50000 yuan 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 50 million yuan upon establishment of which the Company invested 45 million yuan
accounting for 90% of the registered capital; Zhongke Meiling Company invested 5 million yuan 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 50 million yuan in capital of
Mianyang Meiling of which 95 million yuan invested by the Company a 95% of total register capital while 5 million
yuan 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 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 50 million yuan 49.375 million yuan invested by the Company 98.75% in total register
capital while 0.625 million yuan invested by Mianyang Meiling a 1.25% in total register capital occupied. The initial
investment 10.50 million yuan was received dated 13 May 2011 with 10 million yuan from the Company and 0.5
million yuan 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 39.5 million yuan was
fully funded on 28 July 2011 the Company contributed 39.375 million yuan while Mianyang Meiling Company
invested 125000 yuan 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)
213Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
established on January 21 2019 with registered capital of 10 million yuan it is the wholly-owned
subsidiary of the Company. On March 19 2019 the Company contributed 6 million yuan.
6) Hefei Meiling Electric Appliances 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 10 million yuan including 9.9 million yuan invested by the Company a 99% of the registered
capital; Mianyang Meiling Company contributed 0.1 million yuan 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 45
million yuan registered capital amounting to 55 million yuan including 54.9 million yuan contributed by the Company
a 99.82% of the registered capital while Mianyang Meiling invested 0.1 million yuan 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 Appliances Marketing Co. Ltd (hereinafter referred to as Jinan Xiangyou) was established
dated 3 June 2011 with registered capital of 3 million yuan; Meiling Marketing invested 1.08 million yuan 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 Electrical Marketing Co. Ltd (hereinafter referred to as Wuhan Meizirong) was established dated
10 January 2011 with registered capital of 5 million yuan; Meiling Marketing invested 4.60 million yuan accounted for 92%
of the registered capital.
9) Zhengzhou Meiling Electric Appliances Marketing Co. Ltd (hereinafter referred to as Zhengzhou Meiling) was
established dated 17 January 2011 with registered capital of 3 million yuan; Meiling Marketing invested 1.08 million yuan
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) 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 24286808.00 yuan after transference and was not
214Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
the joint-venture any more.
11) Changhong Meiling Ridian Technology Co. Ltd. (hereinafter referred to as Ridian Technology) is a 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 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 Changhong Ridian 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 Changhong Ridian 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 holds 98.855% stock rights
of Ridian Technology.On 7 April 2020 Ridian Technology convened the shareholders’ meeting and agreed the Wu Chang yuan to transferred
total 0.18% equity of the Ridian Technology to the Company. After the transfer the Company directly holds 99.0361%
stock rights of Ridian Technology.
215Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
12) CHANGHONG MEILING ELECTRIC INDONESIA PT.(hereinafter referred to as Indonesia Meiling) 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.
13) 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%.
14) Sichuan Changhong Air Conditioning 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 200 million yuan upon establishment of which Sichuan Changhong invested 298
million yuan( 210088900 yuan invested by monetary capital while 87911100 yuan invested by real material)
equivalent to 198 million yuan shares accounting for 99% of the registered capital; and Changhong Chuangtou
invested 3 million yuan accounting for 1% of the registered capital with equivalent of 2 million yuan shares. The
registered capital receipt was verified by the verification report [CGYYZ (2008) No. 177] of Sichuan Guang yuan
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 Sichuan Changhong comes to 850 million yuan from 200
million yuan shareholding still counted as 100%.
15) 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 72 million yuan including 69.3 million yuan biding for the estate/ non-estate from original
Zhongshan Sanrong Air-conditioner Co. Ltd. And its patent use-right of 2.7 million yuan accounting for 90% of the
registered capital; Chine Minmetals invested 8 million yuan 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 36 million yuan to Zhongshan Changhong and Changhong AC increased 4 million yuan.
216Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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
64 million yuan to Zhongshan Changhong according to the existing shareholding ratio among which the capital
increase of the Company was 57.6 million yuan and the capital increase of Changhong Air Conditioning was 6.4
million yuan. After the completion of this capital increase the registered capital Zhongshan Changhong shall increase
to184 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 150
million yuan to Zhongshan Changhong according to the existing shareholding ratios of which the Company increased
capital of 135 million yuan Changhong Air-Conditioning increased capital of 15 million yuan. After the completion of
capital increase the registered capital of Zhongshan Changhong has increased to 334 million yuan. The Company’s and
Changhong’s shareholding ratios in Zhongshan Changhong remain unchanged at 90% and 10% of which the Company
funded 300.6 million yuan accounting for 90% of the registered capital while Changhong Air Conditioning funded
33.4 million yuan accounting for 10% of the registered capital.
16) 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 113.2 million yuan. 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 80 million yuan and has been verified by the
[AD (2010) YZD No. 016] from Anhui Auding CPAs Co. Ltd.
17) 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
24793200 yuan 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.
18) 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 12 million yuan 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
217Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
total registered capital. The investment being verified by [WYAZ (2004) No. 135] from Anhui Yongan CPAs Co. Ltd.
19) Hong Yuan Ground Energy Heat Pump Technology Co. Ltd. (hereinafter referred to as Hong Yuan 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 Hengyou yuan 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; Hengyou yuan Technology Development Group Co. Ltd.invested 24.5 million yuan in cash a 49% in registered capital.
20) Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co. Ltd.(hereinafter referred to as Hong yuan
Zhongshan) was established and invested on 18 July 2017 with registered capital of 15 million yuan The Hong Yuan
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 shareholders of the Hong yuan Zhongshan decided to increase capital of 30 million yuan
and contributed by the shareholder Hong Yuan Ground Energy; thus registered capital of Hong yuan Zhongshan up to
45 million yuan
21) 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.
22) 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
23) 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. Changhong Ridian invested 5 million yuan by
own fund and takes 100% in registered capital.
24) 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 2020 actually 5 million yuan contributed.
25) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines with registered
capital of US$ 1000000 takes 100% of the equity. As of December 31 2020 the Company has invested
US$ 1000000
26) Hefei Changhong Meiling Life Appliances Co. Ltd. (hereinafter referred to as Meiling Life Appliances) was
established on 24 December 2020 jointly established by the Company and Ningbo Hongling Enterprise Management
Partnership (Limited Partnership). The Company actually contributed 35 million yuan representing 70% of the equity
while 15 million yuan invested by Ningbo Hongling Enterprise Management Partnership (Limited Partnership) a 30%
takes in the equity. The Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership)
completed the capital contribution on January 21 2021 and January 18 2021 respectively.
27) Anhui Ling’an Medical Equipment Co. Ltd. (hereinafter referred to as Ling’an Medical) was established on 4
218Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
September 2021 which is a wholly-owned subsidiary of Zhongke Meiling and registered capital of 10 million yuan.On June 29 2021 Zhongke Meiling actually contributed 10 million yuan accounting for 100% of the registered
capital.
(2) Major non-wholly-owned subsidiary
Shareholding Gains/losses attributable
Dividend Balance of
Subsidiary ratio of minority to minority in Current
distributed to minority’s interest
Year minority announced in Current Year at year-end
Zhongke Meiling 36.7317% 23907061.53 1598892.00 91122295.57
Hong Yuan
Ground Energy 49.00% 3941800.36 21053600.64
Ridian Technology 0.9639% 22662.77 1311488.89
Meiling Life
Appliances 30% 9109552.54 24109552.54
(3) Financial information for major non-wholly-owned subsidiary
Balance at year-end
Subsidiary
Current assets Non-current assets Total assets Current liability Non-current liability Total liabilities
Zhongke
Meiling 371876985.25 153246440.33 525123425.58 260324038.65 16724150.21 277048188.86
Hong Yuan
Ground 167092910.84 23932195.59 191025106.43 147765923.82 292650.70 148058574.52
Energy
Ridian
Technolog 256926013.09 46283555.98 303209569.07 165637349.70 718345.11 166355694.81
y
Meiling
Life 421039031.17 169482.39 421208513.56 340843338.42 - 340843338.42
Appliances
(Continued)
Balance at year-begin
Subsidiary
Current assets Non-current Non-current assets Total assets Current liability liability Total liabilities
Zhongke
Meiling 386201073.54 133596263.07 519797336.61 323587127.53 8867591.28 332454718.81
Hong Yuan
Ground Energy 110464175.51 25279044.46 135743219.97 100181345.93 639832.66 100821178.59
Ridian
Technology 572516245.87 50889561.24 623405807.11 488419038.99 484047.64 488903086.63
(Continued)
Current Year
Subsidiary Operation
income Net profit
Total comprehensive Cash flow from
income operation activity
Zhongke Meiling 464899620.09 65085510.92 65085510.92 70137269.97
219Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Subsidiary Current Year
Hong Yuan Ground
Energy 347880649.74 8044490.53 8044490.53 60316055.84
Ridian Technology 309467627.62 2351153.78 2351153.78 -243853078.73
Meiling Life
Appliances 1136846527.85 30365175.14 30365175.14 262095425.65
(Continued)
Last Year
Subsidiary
Operation income Net profit Total comprehensive Cash flow from income operation activity
Zhongke
Meiling 372599049.12 46042179.72 46042179.72 140128507.32
Hong Yuan
Ground 269504660.68 -5335244.47 -5335244.47 51692147.85
Energy
Ridian
Technology 1083259433.15 41169846.86 41169846.86 51830916.29
(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 Guangzhou Meiling Total
Original ratio of shares held 98.00%
Equity purchased from minority 2.00%
Share issuance
Ratio of shares held at period-end 100.00%
Cost of purchasing minority equity 1.00 1.00
Less: Ratio of the net assets measured by equity ratio while acquiring the -872218.1
subsidiary -872218.17 7
Equity dilution for shares issuance
Balance 872219.17 872219.17
Including: Capital public reserve adjusted 872219.17 872219.17
In 2021 due to the acquisition of minority shareholders’ equity of Guangzhou Meiling by subsidiary the difference
between the newly acquired long-term equity investment and the share of net assets of the subsidiary calculated on an
ongoing basis from the date of purchase based on the newly acquired shareholding amounted as 872219.17 yuan
which was included in the capital reserves.
3. Equity in joint venture or associate enterprise
220Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(1) Major joint venture or associate enterprise
Shareholding AccountingMain ratio（%) treatment forJoint venture or associate enterprise office Registe Business investment of
place r place nature Direc Indir joint venture or
tly ectly associate
enterprise
Associated companies：
1.Changhong Ruba Electric Company Lahore Lahore Manufacture(Private)Ltd. Pakistan s sales 40.00 Equity
2.Hefei Xingmei Assets Management
Co. Ltd. Hefei Hefei
Rental
agency 48.28 Equity
3.Sichuan Zhiyijia Network Technology Mianyang MianyanCo. Ltd. g Sales 50.00 Equity
4.Hong Yuan Ground Energy Heat Tech. R & D
Co. Ltd. Mianyang
Mianyan
g sales 49.00 Equity after-sales
5.Sichuan Tianyou Guigu Technology Mianyang Mianyan ManufactureCo. Ltd. g s sales 25.00 Equity
6.Chengdu Guigu Environmental Tech. R&D
Co. Ltd Chengdu Chengdu manufacturi 25.00 Equity ng and sales
(2) Financial information for major Joint venture: nil
(3) Financial information for associate enterprise
Balance at year-end/Current Year
Changhong Hefei Sichuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Hong Yuan Ground Tianyou
Electric Assets Network Energy Heat Tech. Guigu
Guigu
Company(Pri Management Technology Co. Ltd. Technology
Environmental
vate)Ltd. Co. Ltd. Co. Ltd. Co. Ltd.Tech. Co. Ltd
Current assets 89100592.52 44306769.36 3562320255.30 39551631.60 12815224.66 49157432.66
Including:
cash and cash 3601992.73 15092065.72 1735103036.41 41161.98 6480537.53 28252926.12
equivalent
Non-current
assets 37062073.18 2831773.02 7359768.31 8286398.47 12352.49 1325807.70
Total assets 126162665.70 47138542.38 3569680023.61 47838030.07 12827577.15 50483240.36
Current
liability 141231591.66 6054518.27 3478330845.92 5571194.80 913812.93 16058351.93
Non-current
liability 1418903.14 2525317.50
Total
liabilities 141231591.66 6054518.27 3479749749.06 5571194.80 913812.93 18583669.43
Minority's
interest 1102582.39
Equity
attributable to
shareholder -15068925.96 41084024.11 89930274.55 42266835.27 11913764.22 30796988.54
of parent
company
221Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end/Current Year
Changhong Hefei Sichuan Sichuan
Item Ruba Xingmei Zhiyijia Hong Yuan Ground Tianyou
Chengdu
Electric Assets Network Energy Heat Tech. Guigu
Guigu
Company(Pri Management Technology Co. Ltd. Technology
Environmental
Tech. Co. Ltd
vate)Ltd. Co. Ltd. Co. Ltd. Co. Ltd.Share of net
assets
measured by -6027570.38 19835366.84 44965137.28 20710749.28 2978441.06 7699247.14
shareholding
Adjustment
--Goodwill 821877.28 1416227.93
Unrealized
profit of the
internal 11702988.94 80635.11 4252.12 7510.11
downstream
transactions
Unrealized
profit of the
internal
upstream
transactions
Other 6027570.38
Book value of
the equity
investment 19835366.84 34084025.62 20630114.17 2974188.94 9107964.96
for associate
enterprise
Fair value of
equity
investment
for the
affiliates with
consideration
publicly
Operation
income 212975934.56 11191030556.90 24577536.47 7983502.89 38128313.52
Financial
expenses 2974146.42 443380.59 -51236312.07 2374.70 -105819.09 -374408.78
Income tax
expenses 2735333.56 4852902.82 784678.81
Net profit -6640369.42 26945094.97 4472169.87 -2953746.66 495803.24 12183906.56
Other -648154.63
Other
comprehensiv 6538313.32
e income
Capital
reserve -130171.30
Total
comprehensiv -102056.10 26945094.97 3693843.94 -2953746.66 495803.24 12183906.56
e income
Dividend
received from
associate 1025445.14
enterprise in
Current Year
222Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(Continued)
Balance at year-begin / Last Year
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environment
Company(Pri Manageme Technology Heat Tech. Technology al Tech. Co.vate)Ltd. nt Co. Ltd. Co. Ltd. Co. Ltd. Co. Ltd. Ltd
Current assets 68287114.60 626580.92 3812812831.86 40622241.47 21480727.03 17707474.44
Including: cash and
cash equivalent 5536272.95 119477.66 2996535171.99 52958.51 10450786.16 2371663.95
Non-current assets 45830745.35 18704537.29 1226646.52 10161277.73 12352.49 13175012.62
Total assets 114117859.95 19331118.21 3814039478.38 50783519.20 21493079.52 30882487.06
Current liability 129084729.80 5192189.07 3724855931.57 5562937.27 10075118.54 19463087.16
Non-current
liability 117900.00 1886933.19
Total liabilities 129084729.80 5192189.07 3724973831.57 5562937.27 10075118.54 21350020.35
Minority's interest 822750.86
Equity attributable
to shareholder of -14966869.86 14138929.14 89065646.81 45220581.93 11417960.98 8709715.85
parent company
Share of net assets
measured by -5986747.94 6826274.99 44532823.41 22158085.15 2854490.25 2177428.96
shareholding
Adjustment
--Goodwill 821877.28 3887027.34
Unrealized profit of
the internal
downstream 49697.83 6191361.16 54975.58 4398.74 24449.53
transactions
Unrealized profit of
the internal
upstream
transactions
Other 5937050.11
Book value of the
equity investment
for associate 6826274.99 39163339.53 22103109.57 2850091.51 6040006.77
enterprise
Fair value of equity
investment for the
affiliates with
consideration
publicly
Operation income 99936478.74 8580600638.78 54153864.35 735204.43 12146793.64
Financial expenses 10579123.20 205425.73 -36003354.14 3384.58 -404094.60 179807.87
Income tax
expenses 1422278.04 3181576.89
Net profit -18981775.32 -3579823.40 8132610.22 -2554686.34 190298.81 -8962600.48
Net profit of
223Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-begin / Last Year
Changhong Hefei Sichuan Hong Yuan Sichuan Chengdu
Item Ruba Xingmei Zhiyijia Ground Tianyou Guigu
Electric Assets Network Energy Guigu Environment
Company(Pri Manageme Technology Heat Tech. Technology al Tech. Co.vate)Ltd. nt Co. Ltd. Co. Ltd. Co. Ltd. Co. Ltd. Ltd
discontinuing
operation
Other
comprehensive
income
Total
comprehensive -18981775.32 -3579823.40 8132610.22 -2554686.34 190298.81 -8962600.48
income
Dividend received
from associate
enterprise in
Current Year
(4) Financial summary for non-important Joint venture and associate enterprise
Item Balance at year-end/Current Balance at year-begin /Last Year Year
Associated companies：
Total book value of investment
Total amount measured by shareholding
ratio
--Net profit -904106.72 -251256.41
--Other comprehensive income
-- Total comprehensive income -904106.72 -251256.41
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) Excess loss occurred in joint venture or affiliates
Hefei Meiling Solar Energy Technology Co. Ltd and Changhong Ruba Electric Company(Private)Ltd
have losses above the quota.
(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 Trading 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
224Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
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 31 December 2021 the interest-bearing debts mainly referred to borrowing contracts at floating
rate denominated in RMB with total amount of 610000000.00 yuan the floating rate loan contract
measured by RMB amounted as 498000000.00 yuan in total; 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 Current Year and fair value measurement level
Fair va lue at y ear-end
Item
1st level 2nd level 3rd level Total
I. Continuous fair value
measurement — — — —
(i)Trading financial assets 17997086.19 17997086.19
1.Financial assets measured at fair
value and whose changes are 17997086.19 17997086.19
included in current gains/losses
Including: Derivative financial
assets 17997086.19 17997086.19
(ii) Other non-current financial
assets 44018952.27 537961488.43 581980440.70
(iii)Receivables financing 1808109301.56 1808109301.56
Total assets continuously
measured at fair value 17997086.19 44018952.27 2346070789.99 2408086828.45
(iv) Trading financial liability 12304272.41 12304272.41
1. Financial liabilities measured by
fair value and with variation 12304272.41 12304272.41
reckoned into current gains/losses
225Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Fair va lue at y ear-end
Item
1st level 2nd level 3rd level Total
Including: Derivative financial
liability 12304272.41 12304272.41
Total liabilities continuously
measured at fair value 12304272.41 12304272.41
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
The company's fair value measurement items are futures contracts and foreign exchange options. The
market price of futures contracts is determined based on the closing price of the futures contract at the
end of the period; the market price of foreign exchange options is determined based on the quotation
of contract products of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous second-level fair value measurement items
The fair value measurement items are long-term investments in the fund companies. For long-term
investments in fund companies the assessed book value can represent the best estimate of fair value
within the scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters
for continuous and non-continuous third-level fair value measurement items
The items with fair value measurement refers to the investment of Sichuan Changhong Group Finance
Co. Ltd and Huishang Bank Co. Ltd. As the unlisted equity instrument the fair value are estimated
using a range of valuation models the assumptions used are not supported by observable market
prices or interest rates. We believes that the fair value and their changes estimated by valuation
techniques are reasonable and are the most appropriate values at the 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 Regist Business Share-holdin Voting rights
ultimate controller ration nature Registered capital g ratio in the ratio in the place Company Company
Sichuan Changhong Electric Co. Miany Manufactur
Ltd. ang e and sales 4616244222.00 26.98% 26.98%
Sichuan Changhong Electronics Holding Group 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
226Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Increased Decreased
Controlling shareholder Balance at year-begin in Current in Current Balance at year-end
Year Year
Sichuan Changhong Electric Co.Ltd. 4616244222.00 4616244222.00
(3) Shares held by the controlling shareholder and its changes on equity
Amount of shares held Shareholding ratio
Controlling shareholder Balance at Balance at Ratio at Ratio at
year-end year-begin year-end year-beginning
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”
3. Joint venture and associated enterpriseMajor Joint venture and associated enterprise of the Company found more in Note “VIII. 3 (1) majorjoint venture and associated enterprise”. Other Joint venture and associated enterprise that have related
transactions occurred with the Company in Current Year 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 Associated enterprise of the Company has the same controlling shareholder and
Technology Co. Ltd. actual control of the Company
Hong Yuan 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 ELECTRIC MIDDLE EAST FZCO Control by same controlling shareholder and ultimate controller
Changhong Europe Electric s.r.o Control by same controlling shareholder and ultimate controller
CHANGHONG (HK) TRADING LIMITED Control by same controlling shareholder and ultimate
227Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
controller
CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. Control by same controlling shareholder and ultimate controller
Orion.PDP.Co.ltd Control by same controlling shareholder and ultimate controller
PT.CHANGHONG ELECTRIC INDONESIA Control by same controlling shareholder and ultimate controller
Beijing Changhong Technology Co. Ltd. Subsidiary of the controlling shareholder’s associate
Chengdu Changhong Electronic Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Guangdong Changhong Electronics Co. Ltd. Control by same controlling shareholder and ultimate controller
Guang yuan Hongcheng Industrial Co. Ltd. Control by same controlling shareholder and ultimate controller
Guang yuan Changhong Electronic Technology Co. Control by same controlling shareholder and ultimate
Ltd. controller
Hefei Changhong Industrial 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
Hunan Grand-Pro Intelligent Tech. Company Control by same controlling shareholder and ultimate controller
Lejiayi Chain Management Co. Ltd. Control by same controlling shareholder and ultimate controller
081 Electronic Group Co. Ltd. Control by same controlling shareholder and ultimate controller
Mianyang Highly Electric Co. Ltd. Associates of Controlling shareholder
Mianyang Huafeng Interconnect Technology Co. Ltd Control by same controlling shareholder and ultimate controller
Mianyang Science & Technology City Big Data Control by same controlling shareholder and ultimate
Technology Co. Ltd. controller
Sichuan Aichuang Science & Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Ailink Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Ansify Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Aoku Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Hongcheng Construction Engineering Co. ltd Control by same controlling shareholder and ultimate controller
Sichuan Hongmofang Network 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 Hongxin Software Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Hongyu Metal Manufacturing Co. Ltd. Associates of other enterprises controlled by the same Controlling shareholder
Sichuan Huafeng Enterprise Group Co. Ltd. Control by same controlling shareholder and ultimate controller
228Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
Sichuan Huanyu Industrial Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Jiahong Industrial Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Service Exp. Appliance Service Chain Co. Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Qiruik Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Hongran Green Energy Co. Ltd. Associates of Controlling shareholder
Sichuan Changhong Package Printing 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 Electronic Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong Gerun Environmental Protection Control by same controlling shareholder and ultimate
Tech. Co. Ltd. controller
Sichuan Changhong International Hotel Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong International Travel Service Co. Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Jineng Sunshine Technology Co. Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Group Finance 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 Education Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong Jiechuang Lithium Technology Control by same controlling shareholder and ultimate
Co. Ltd. controller
Sichuan Changhong Precision Electronics Tech. Co. Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Minsheng Logistics Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong Electric Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong Device Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong Network Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong Property Service Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong New Energy Technology Co. Control by same controlling shareholder and ultimate
Ltd. controller
Sichuan Changhong Intelligent Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changhong Intelligent Manufacturing Control by same controlling shareholder and ultimate
Technology Co. Ltd. controller
229Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Other related party Relationship with the company
Sichuan Changhong Real Estate Co. Ltd. Control by same controlling shareholder and ultimate controller
Sichuan Changxin Refrigeration Parts Co. Ltd. Associates of Controlling shareholder
Yuanxin Financial Lease Co. Ltd. Control by same controlling shareholder and ultimate controller
Changhong Grand-Pro Technology Co. Ltd. Control by same controlling shareholder and ultimate controller
Changhong International Holdings (Hong Kong) Co. Control by same controlling shareholder and ultimate
Ltd. controller
Changhong Huayi Compressor Co. Ltd. Control by same controlling shareholder and ultimate controller
(ii) Related transactions
(1) Purchasing commodity
Current Year Last Year
Related party Content (In 10 thousand
yuan) (In 10 thousand yuan)
Sichuan Changhong Electric Co. Ltd. Purchasing commodity 72217.32 59503.77
Sichuan Changhong Electric Co. Ltd. Purchasing commodity 50571.94 34964.57
Changhong Huayi Compressor Co. Ltd. Purchasing commodity 41837.98 46880.45
Sichuan Changxin Refrigeration Parts Co. Ltd. Purchasing commodity 39411.46 19221.74
Sichuan Changhong Jijia Fine Co. Ltd. Purchasing commodity 36519.86 23064.49
Mianyang Highly Electric Co. Ltd. Purchasing commodity 21625.23 13419.75
Sichuan Aichuang Science & Technology Co. Ltd. Purchasing commodity 10843.83 12606.33
Sichuan Changhong Package Printing Co. Ltd. Purchasing commodity 10505.94 6016.51
Changhong.Ruba.Electric.Company (Private) Ltd. Purchasing commodity 7078.47 7610.32
Sichuan Ailink Technology Co. Ltd. Purchasing commodity 2519.71 1796.54
Sichuan Changhong Electronic Products Co. Ltd. Purchasing commodity 2376.25 1588.38
Sichuan Changhong Precision Electronics Tech. Co. Purchasing
Ltd. commodity 1689.38 1003.39
Sichuan Zhiyijia Network Technology Co. Ltd. Purchasing commodity 1218.16 371.14
Changhong International Holdings (Hong Kong) Co. Purchasing
Ltd. commodity 1017.63 2655.02
Hefei Changhong Industrial Co. Ltd. Purchasing commodity 942.42 632.25
Guangdong Changhong Electronics Co. Ltd. Purchasing commodity 459.10 293.63
230Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Related party Content (In 10 thousand
yuan) (In 10 thousand yuan)
Hunan Grand-Pro Intelligent Tech. Company Purchasing commodity 152.35 880.73
Sichuan Service Exp. Appliance Service Chain Co. Purchasing
Ltd. commodity 5.00 0.19
081 Electronic Group Co. Ltd. Purchasing commodity 4.95 22.7
Sichuan Changhong Intelligent Manufacturing Purchasing
Technology Co. Ltd. commodity 2.86 13.32
Sichuan Changhong New Energy Technology Co. Purchasing
Ltd. commodity 2.70 3.97
Sichuan Changhong International Hotel Co. Ltd. Purchasing commodity 2.00
Sichuan Jiahong Industrial Co. Ltd. Purchasing commodity 0.60 0.03
Sichuan Hongwei Technology Co. Ltd. Purchasing commodity 0.32
Chengdu Guigu Environmental Tech. Co. Ltd Purchasing commodity 0.18
Hong Yuan Ground Energy Heat Tech. Co. Ltd. Purchasing commodity 379.24
Sichuan Changhong Electronics Holding Group Co. Purchasing
Ltd. commodity 1.78
Guang yuan Changhong Electronic Technology Co. Purchasing
Ltd. commodity 0.88
Lejiayi Chain Management Co. Ltd. Purchasing commodity 0.33
Total 301005.64 232931.45
2. Accept the services
Related party Content Current Year Last Year
Sichuan Changhong Minsheng Logistics Co. Ltd. Accept the services 585263836.50 414991661.95
Sichuan Service Exp. Appliance Service Chain Co. Ltd. Accept the services 250718083.94 275753460.11
Sichuan Hongxin Software Co. Ltd. Accept the
services 10856658.91 1120832.04
Changhong International Holdings (Hong Kong) Co. Accept the
Ltd. services 5988668.60
Sichuan Qiruik Technology Co. Ltd. Accept the
services 5980909.80
Sichuan Changhong Electric Co. Ltd. Accept the services 5745731.73 13064499.47
Sichuan Jiahong Industrial Co. Ltd. Accept the services 3895237.37 533487.03
Sichuan Changhong Electronics Holding Group Co. Accept the
Ltd. services 1681313.86 1428582.09
Sichuan Hongwei Technology Co. Ltd. Accept the services 1521897.41 4359668.84
231Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Guangdong Changhong Electronics Co. Ltd. Accept the services 1128280.15 491458.60
Guang yuan Changhong Electronic Technology Co. Accept the
Ltd. services 1023131.47 640277.20
Sichuan Changhong Intelligent Manufacturing Accept the
Technology Co. Ltd. services 748609.37 16375.22
Sichuan Changhong Property Service Co. Ltd. Accept the services 707185.86 3044428.21
Sichuan Changxin Refrigeration Parts Co. Ltd. Accept the
services 395895.95
Sichuan Changhong International Hotel Co. Ltd. Accept the services 217834.37 51449.87
Sichuan Aichuang Science & Technology Co. Ltd. Accept the services 131378.07 16037.74
Sichuan Changhong Electric Co. Ltd. Accept the services 127233.28 448031.09
Sichuan Changhong Electronic Products Co. Ltd. Accept the services 126956.03
Orion.PDP.Co.ltd Accept the
services 125271.39
Sichuan Changhong Gerun Environmental Protection Accept the
Tech. Co. Ltd. services 56580.19 86666.96
Sichuan Changhong International Travel Service Co. Accept the
Ltd. services 26557.92 245433.88
Sichuan Changhong Jijia Fine Co. Ltd. Accept the services 11830.19 1002110.60
Sichuan Changhong Network Technology Co. Ltd. Accept the services 32908.38
Sichuan Hongmofang Network Technology Co. Ltd. Accept the
services 2122.64
Sichuan Zhiyijia Network Technology Co. Ltd. Accept the
services -465679.53 185590.06
Total 876013402.83 717515081.98
3. Purchase fuel and power
Related party Content Current Year Last Year
Sichuan Changhong Electric Co. Ltd. Accept fuel power 19977416.41 18457320.38
Guangdong Changhong Electronics Co. Ltd. Accept fuel power 1204692.22 1122776.22
Sichuan Hongran Green Energy Co. Ltd. Accept fuel power 879342.58 488435.52
Changhong Huayi Compressor Co. Ltd. Accept fuel power 451658.41 511235.41
Hefei Changhong New Energy Technology Co. Ltd. Accept fuel power 344936.77 366759.90
Sichuan Changhong Property Service Co. Ltd. Accept fuel power 30285.20 20789.37
Total 22888331.59 20967316.80
4. Sales of goods
Related party Content Current Year Last Year
232Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(In 10 thousand (In 10 thousand
yuan) yuan)
Sichuan Zhiyijia Network Technology Co. Ltd. Sales of goods 650051.03 436631.25
CHANGHONG (HK) TRADING LIMITED Sales of goods 29876.00 48410.22
Sichuan Changhong Electric Co. Ltd. Sales of goods 19808.97 23483.31
Changhong International Holdings (Hong Kong) Co. Ltd. Sales of goods 16426.96 13452.31
CHANGHONG ELECTRIC (AUSTRALIA) PTY.LTD. Sales of goods 12752.56 14983.14
Sichuan Changxin Refrigeration Parts Co. Ltd. Sales of goods 9921.49 6957.18
Changhong Europe Electric s.r.o Sales of goods 7082.16 5483.90
Sichuan Changhong Jijia Fine Co. Ltd. Sales of goods 4867.94 5460.30
Orion.PDP.Co.ltd Sales of goods 3967.89 2634.90
Changhong Ruba Electric Company( Private) Ltd. Sales of goods 3262.43 1079.90
Hong Yuan Ground Energy Heat Tech. Co. Ltd. Sales of goods 2426.82 5204.57
Sichuan Service Exp. Appliance Service Chain Co. Ltd. Sales of goods 655.49 403.10
Sichuan Changhong Electric Co. Ltd. Sales of goods 426.60 1036.21
CHANGHONG ELECTRIC MIDDLE EAST FZCO Sales of goods 349.94 1158.97
Chengdu Guigu Environmental Tech. Co. Ltd Sales of goods 175.73 134.34
Sichuan Changhong Jiechuang Lithium Technology Co. Sales of
Ltd. goods 126.35
Changhong Grand-Pro Technology Co. Ltd. Sales of goods 123.88
Sichuan Tianyou Guigu Technology Co. Ltd. Sales of goods 114.92
Lejiayi Chain Management Co. Ltd. Sales of goods 53.10 549.82
Guangdong Changhong Electronics Co. Ltd. Sales of goods 32.01 158.46
PT CHANGHONG ELECTRIC INDONESIA Sales of goods 27.80 70.35
Sichuan Changhong Minsheng Logistics Co. Ltd. Sales of goods 27.05 2.77
Sichuan Aichuang Science & Technology Co. Ltd. Sales of goods 23.03 724.53
Sichuan Changhong Electronics Holding Group Co. Ltd. Sales of goods 18.06
Sichuan Changhong Power Source Co. Ltd. Sales of goods 16.99 1.81
Guang yuan Changhong Electronic Technology Co. Ltd. Sales of 15.43 0.35
233Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Current Year Last Year
Related party Content (In 10 thousand (In 10 thousand
yuan) yuan)
goods
Sichuan Ansify Technology Co. Ltd. Sales of goods 12.51
Sichuan Hongxin Software Co. Ltd. Sales of goods 12.11
Hefei Changhong Industrial Co. Ltd. Sales of goods 7.89 0.43
Sichuan Changhong Real Estate Co. Ltd. Sales of goods 6.63 1.31
Changhong Huayi Compressor Co. Ltd. Sales of goods 3.76
Sichuan Changhong Intelligent Manufacturing Sales of
Technology Co. Ltd. goods 1.41 1.64
Beijing Changhong Technology Co. Ltd. Sales of goods 0.98 1.86
Sichuan Hongmofang Network Technology Co. Ltd. Sales of goods 0.49 1.73
Sichuan Changhong Network Technology Co. Ltd. Sales of goods 0.39
Sichuan Changhong Device Technology Co. Ltd. Sales of goods 0.08
081 Electronic Group Co. Ltd. Sales of goods 0.08
Sichuan Changhong Gerun Environmental Protection Sales of
Tech. Co. Ltd. goods 572.25
Sichuan Changhong International Hotel Co. Ltd. Sales of goods 70.00
Sichuan Changhong New Energy Technology Co. Ltd. Sales of goods 31.18
Mianyang Huafeng Interconnect Technology Co. Ltd Sales of goods 20.92
Sichuan Huafeng Enterprise Group Co. Ltd. Sales of goods 4.77
Sichuan Changhong Electronic Products Co. Ltd. Sales of goods 35.40
Sichuan Changhong Education Technology Co. Ltd. Sales of goods -86.91
Total 762676.96 568676.27
5. Providing services
Related party Content Current Year Last Year
Sichuan Changhong Electric Co. Ltd. Providing services 4177122.00 2656646.85
Sichuan Aichuang Science & Technology Co. Ltd. Providing services 1983316.06 887575.07
Changhong Huayi Compressor Co. Ltd. Providing services 1245677.91 566037.73
Changhong Grand-Pro Technology Co. Ltd. Providing services 1165255.05
Sichuan Changhong Jiechuang Lithium Technology Co. Ltd. Providing services 1088990.83
Sichuan Changhong Network Technology Co. Ltd. Providing services 610337.12 991434.55
234Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Yuanxin Financial Lease Co. Ltd. Providing services 493408.67
Guangdong Changhong Electronics Co. Ltd. Providing services 491029.63
Sichuan Changhong Jijia Fine Co. Ltd. Providing services 271359.98 135692.00
Sichuan Changhong Minsheng Logistics Co. Ltd. Providing services 261996.34 7098.11
Hong Yuan Ground Energy Heat Tech. Co. Ltd. Providing services 216981.14
Sichuan Changhong Electric Co. Ltd. Providing services 193737.60 80098.48
Sichuan Changxin Refrigeration Parts Co. Ltd. Providing services 120655.05
Sichuan Ansify Technology Co. Ltd. Providing services 110932.11
Sichuan Changhong Electronic Technology Co. Ltd. Providing services 94339.62
Sichuan Changhong Device Technology Co. Ltd. Providing services 90613.21 105597.33
Sichuan Changhong Property Service Co. Ltd. Providing services 85797.50
Sichuan Changhong International Hotel Co. Ltd. Providing services 79350.88 36054.42
081 Electronic Group Co. Ltd. Providing services 47230.97
Chengdu Guigu Environmental Tech. Co. Ltd Providing services 31941.00 15714.60
Sichuan Zhiyijia Network Technology Co. Ltd. Providing services 22279.24 9433.96
Sichuan Huafeng Enterprise Group Co. Ltd. Providing services 13205.66 316610.42
Sichuan Changhong Electronic Products Co. Ltd. Providing services 11021.81
Sichuan Changhong Gerun Environmental Protection Tech. Co. Ltd. Providing services 9433.96
Sichuan Service Exp. Appliance Service Chain Co. Ltd. Providing services 7200.00
Sichuan Changhong Precision Electronics Tech. Co. Ltd. Providing services 5084.91
Sichuan Hongwei Technology Co. Ltd. Providing services 1440.00
Hefei Changhong Industrial Co. Ltd. Providing services 707.50
Sichuan Ailink Technology Co. Ltd. Providing services 73.58
Mianyang Huafeng Interconnect Technology Co. Ltd Providing services 199401.74
Sichuan Changhong Intelligent Technology Co. Ltd. Providing services 547177.50
Sichuan Changhong Intelligent Manufacturing Technology Co. Ltd. Providing services 494545.00
Sichuan Changhong New Energy Technology Co. Ltd. Providing services 113853.33
Sichuan Hongxin Software Co. Ltd. Providing services 50367.92
Sichuan Changhong Education Technology Co. Ltd. Providing services 21681.42
Sichuan Changhong Real Estate Co. Ltd. Providing services -39175.45
Sichuan Changhong Electronics Holding Group Co. Ltd. Providing services -10800.00
Total 12919719.33 7195844.98
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 actual 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.
6. Provide fuel power
Related party Content Current Year Last Year
Sichuan Changhong Electric Co. Ltd. Provide fuels power 7008427.14 7268571.71
Sichuan Changhong Device Technology Co. Ltd. Provide fuels power 710348.59 844734.88
235Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Content Current Year Last Year
Sichuan Changhong Jijia Fine Co. Ltd. Provide fuels power 150554.97 158726.95
Changhong International Holdings (Hong Kong) Co. Ltd. Provide fuels power 101309.73
Sichuan Changhong Minsheng Logistics Co. Ltd. Provide fuels power 57695.61 86738.00
Sichuan Zhiyijia Network Technology Co. Ltd. Provide fuels power 50005.57 45684.57
Sichuan Changhong Precision Electronics Tech. Co. Ltd. Provide fuels power 16948.89 15872.50
Guangdong Changhong Electronics Co. Ltd. Provide fuels power 16227.17 38436.16
Sichuan Jiahong Industrial Co. Ltd. Provide fuels power 13065.53
Mianyang Science & Technology City Big Data Technology Co. Ltd. Provide fuels power 6763.23
Sichuan Changhong Network Technology Co. Ltd. Provide fuels power 6484.24
Sichuan Hongwei Technology Co. Ltd. Provide fuels power 3137.33
Total 8111517.67 8488215.10
7.Related rental
(1) Rent out
Lessor Lessee Type of assets Leasing income Leasing income in Current Year in last year
Changhong Sichuan Changhong Electric Co.Meiling Ltd. Workshop 1741654.86 1441574.10
Changhong Sichuan Changhong Jijia Fine
Meiling Co. Ltd. Workshop 678679.11 541594.80
Changhong Sichuan Changhong Electric Co.Meiling Ltd. Apartment 499971.43 447269.14
Changhong Sichuan Changhong Electric Co.Meiling Ltd. Warehouse 152522.28 282430.19
Changhong Hefei Changhong Industrial Co.Meiling Ltd. Apartment 262055.04 228637.23
Changhong Sichuan Changhong Minsheng
Meiling Logistics Co. Ltd. Apartment 214858.71 211594.52
Changhong Sichuan Zhiyijia Network
Meiling Technology Co. Ltd. Apartment 188256.88 209364.69
Changhong Sichuan Service Exp. Appliance
Meiling Service Chain Co. Ltd. Apartment 145590.48 156252.00
Changhong Sichuan Changhong Jijia Fine
Meiling Co. Ltd. Warehouse 88689.08 139040.18
Changhong Sichuan Changhong Jijia Fine
Meiling Co. Ltd. Apartment 118400.00 122133.76
Changhong Sichuan Service Exp. Appliance
Meiling Service Chain Co. Ltd. Office 47040.00 43633.32
Changhong Sichuan Changhong Precision
Meiling Electronics Tech. Co. Ltd. Apartment 49200.00 39456.00
Changhong Sichuan Aichuang Science &
Meiling Technology Co. Ltd. Warehouse 37519.68 34987.18
Changhong Sichuan Hongwei Technology
Meiling Co. Ltd. Apartment 31200.00
Changhong Sichuan Changhong Jijia Fine
Meiling Co. Ltd. Forklift 26439.91
Changhong Sichuan Service Exp. Appliance
Meiling Service Chain Co. Ltd. Forklift 9600.00
236Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Lessor Lessee Type of assets Leasing income Leasing income in Current Year in last year
Changhong Sichuan Ailink Technology Co.Meiling Ltd. Warehouse 2549.43 2686.20
Changhong Sichuan Aichuang Science &
Meiling Technology Co. Ltd. Forklift 2532.50
Changhong Hefei Changhong Industrial Co.Meiling Ltd. Warehouse 6475.48 2023.58
Zhongke Meiling Sichuan Changhong Minsheng Logistics Co. Ltd. Workshop 783911.94 2352570.64
Jiangxi Meiling Sichuan Changhong Electric Co. Ltd. Workshop 822288.36 839228.54
Jiangxi Meiling Sichuan Changhong Minsheng Logistics Co. Ltd. WorkshopOffice 9142.86 9142.86
Jiangxi Meiling Changhong Huayi Compressor Co. Ltd. Warehouse 4457.14 3771.43
Jiangxi Meiling Hefei Changhong Industrial Co. Ltd. Warehouse 2971.43
Jiangxi Meiling Sichuan Aichuang Science & Technology Co. Ltd. Warehouse 11885.71
Jiangxi Meiling Sichuan Ailink Technology Co. Ltd. Warehouse 742.86
Changhong Sichuan Changhong Jijia Fine
Air-conditioner Co. Ltd. Workshop 3679016.28 6131693.75
Changhong Sichuan Changhong Electric Co. House and
Air-conditioner Ltd. buildings 5925054.84 5925054.84
Changhong Sichuan Changhong Electric Co.Air-conditioner Ltd. Equipment 2401421.34 2401421.34
Changhong Sichuan Changhong Electric Co.Air-conditioner Ltd. Equipment 672368.04 665334.62
Changhong Sichuan Changhong Jijia Fine
Air-conditioner Co. Ltd. Equipment 618666.19 567110.67
Changhong Sichuan Changhong Electric Co.Air-conditioner Ltd. Workshop 621737.53 467599.18
Changhong Sichuan Changxin Refrigeration Processing
Air-conditioner Parts Co. Ltd. equipment of U 200000.00 300000.00
Changhong Chengdu Guigu Environmental House and
Air-conditioner Tech. Co. Ltd buildings 28403.67 28403.67
Changhong Sichuan Changhong Electric Co.Air-conditioner Ltd. Conference Room 1834.86
Changhong Sichuan Huafeng Enterprise
Air-conditioner Group Co. Ltd. Conference Room 917.43
Zhongshan Guangdong Changhong
Changhong Electronics Co. Ltd. Office building 149076.80
Zhongshan Sichuan Changhong Electric Co.Changhong Ltd. 2# living area 58964.52 84813.23
Zhongshan Sichuan Changhong Precision
Changhong Electronics Tech. Co. Ltd. 2# living area 63000.00 78313.34
Zhongshan Sichuan Changhong Minsheng Parts of the office
Changhong Logistics Co. Ltd. building rent-out 44297.16 31188.42
Zhongshan Sichuan Changhong Device
Changhong Technology Co. Ltd. 2# living area 3735.44 10861.40
Zhongshan Guangdong Changhong
Changhong Electronics Co. Ltd. 2# living area 50928.93
237Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Lessor Lessee Type of assets Leasing income Leasing income in Current Year in last year
Ridian Sichuan Changhong Device
Technology Technology Co. Ltd. Workshop 2160845.66 1710745.15
Ridian Sichuan Changhong Minsheng
Technology Logistics Co. Ltd. Workshop 76190.48
Ridian Sichuan Hongwei Technology
Technology Co. Ltd. Workshop 47314.29 45257.14
Total 22445534.08 25852061.66
(2) Lessee of related parties
Leasing Leasing
Lessor Lessee Type of assets expense in expense in last Current Year year
Guangdong Changhong Electronics Co. Ltd. Zhongshan Workshop Changhong leasing 1015654.71 1015654.68
Guangdong Changhong Electronics Co. Ltd. Zhongshan Staff Changhong dormitory 178332.78
Hefei Changhong Industrial Co. Ltd. Changhong Workshop Meiling leasing 310142.91
Changhong
Sichuan Changhong Electric Co. Ltd. Air-conditione VISA
r Laboratories
341178.01
Changhong
Sichuan Changhong Electric Co. Ltd. Air-conditione Workshop
r leasing
2567272.94
Changhong
Sichuan Changhong Electric Co. Ltd. Air-conditione Warehouse
r rental
634664.55
Sichuan Changhong Electronics Holding Changhong Staff
Group Co. Ltd. Air-conditione dormitory 51240.49 208690.40 r
Sichuan Changhong Electronics Holding Changhong
Group Co. Ltd. Air-conditione Store rental 125548.80 125548.80 r
Changhong
Sichuan Jiahong Industrial Co. Ltd. Air-conditione Staff dormitory 183993.72 r
Changhong
Sichuan Changhong Property Service Co. Ltd. Air-conditione Staff dormitory 3000.00 r
Guangdong Changhong Electronics Co. Ltd. Ridian Staff Technology dormitory 126347.33 55294.11
Sichuan Changhong Electric Co. Ltd. Ridian Staff Technology dormitory 48257.03
Sichuan Changhong Electric Co. Ltd. Mianyang Workshop Meiling leasing 3261455.02 3246239.65
Sichuan Jiahong Industrial Co. Ltd. Mianyang Staff Meiling dormitory 14286.07
Sichuan Jiahong Industrial Co. Ltd. Mianyang Flower Meiling rental 6953.77
Sichuan Changhong Electronics Holding Mianyang Staff
Group Co. Ltd. Meiling dormitory 4363.60 48785.77
238Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Leasing Leasing
Lessor Lessee Type of assets expense in expense in last Current Year year
Sichuan Changhong Property Service Co. Ltd. Mianyang Flower Meiling rental 2317.92 9271.70
Sichuan Changhong Electric Co. Ltd. Meiling Group Office 885487.38
Changhong Huayi Compressor Co. Ltd. Jiangxi Staff Meiling dormitory 41792.55 53246.28
Chengdu Changhong Electronic Technology Hongmei
Co. Ltd. Intelligent Office 688263.70 624277.12
Sichuan Changhong Minsheng Logistics Co. Hong yuan Warehouse
Ltd. Zhongshan rental 73962.22
Guangdong Changhong Electronics Co. Ltd. Hong yuan Staff Zhongshan dormitory 91367.95 103432.19
Total 6341868.77 9804455.38
8.Related guarantee
Maximum
guarantee Completed
amount (Y/N)
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Changhong Meiling Jiangxi Meiling 10000.00 2020-04-09 2021-04-09 Y
Changhong Meiling Jiangxi Meiling 10000.00 2021-07-08 2022-07-08 N
Changhong Meiling Changhong Air-conditioner 5000.00 2021-09-24 2022-09-24 N
Changhong Meiling Changhong Air-conditioner 15000.00 2021-12-07 2022-12-06 N
Changhong Meiling Changhong Ruba 2103.51 2019-12-23 2021-01-15 Y
Changhong Meiling Changhong Ruba 1831.50 2020-12-16 2021-12-07 Y
Changhong Meiling Ridian Technology 3000.00 2020-03-14 2021-03-13 Y
Changhong Meiling Ridian Technology 4000.00 2020-03-30 2021-03-31 Y
Changhong Meiling Ridian Technology 6500.00 2020-08-22 2021-08-22 Y
Changhong Meiling Ridian Technology 5000.00 2020-07-03 2021-07-02 Y
Changhong Meiling Ridian Technology 4000.00 2021-03-31 2022-03-31 N
Changhong Meiling Ridian Technology 5000.00 2021-06-09 2021-12-31 Y
Changhong Meiling Ridian Technology 3000.00 2021-08-09 2022-08-08 N
Changhong Meiling Ridian Technology 4000.00 2021-09-16 2022-09-15 N
Changhong Meiling Zhongke Meiling 2000.00 2020-12-25 2021-09-26 Y
Changhong Meiling Zhongke Meiling 3000.00 2020-09-22 2021-09-22 Y
Changhong Meiling Zhongke Meiling 2000.00 2020-08-24 2021-08-24 Y
Changhong Meiling Zhongke Meiling 1000.00 2020-11-19 2021-11-18 Y
Changhong Meiling Zhongke Meiling 1000.00 2020-03-10 2021-03-10 Y
Changhong Meiling Zhongke Meiling 1500.00 2020-06-01 2021-03-12 Y
239Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Maximum
guarantee Completed
amount (Y/N)
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Changhong Meiling Zhongke Meiling 500.00 2020-06-30 2021-03-15 Y
Changhong Meiling Zhongke Meiling 5000.00 2021-05-24 2022-05-24 N
Changhong Meiling Zhongke Meiling 6000.00 2021-09-22 2022-09-22 N
Changhong Meiling Zhongke Meiling 2000.00 2019-12-30 2020-11-22 Y
Changhong Meiling Zhongshan Changhong 20000.00 2020-06-12 2021-03-10 Y
Changhong Meiling Zhongshan Changhong 5000.00 2020-03-09 2021-03-09 Y
Changhong Meiling Zhongshan Changhong 15000.00 2020-01-10 2021-01-10 Y
Changhong Meiling Zhongshan Changhong 5500.00 2020-03-15 2021-03-15 Y
Changhong Meiling Zhongshan Changhong 17900.00 2020-04-14 2021-04-13 Y
Changhong Meiling Zhongshan Changhong 20000.00 2020-03-30 2021-03-30 Y
Changhong Meiling Zhongshan Changhong 12000.00 2020-04-28 2021-04-28 Y
Changhong Meiling Zhongshan Changhong 10000.00 2020-08-31 2021-08-31 Y
Changhong Meiling Zhongshan Changhong 15000.00 2020-07-03 2021-07-02 Y
Changhong Meiling Zhongshan Changhong 20000.00 2021-04-08 2022-03-18 N
Changhong Meiling Zhongshan Changhong 18000.00 2021-03-29 2022-03-29 N
Changhong Meiling Zhongshan Changhong 13000.00 2021-03-03 2022-03-03 N
Changhong Meiling Zhongshan Changhong 10000.00 2021-05-25 2022-05-25 N
Changhong Meiling Zhongshan Changhong 9000.00 2021-03-15 2022-03-15 N
Changhong Meiling Zhongshan Changhong 20000.00 2021-03-30 2022-03-30 N
Changhong Meiling Zhongshan Changhong 5000.00 2021-07-22 2022-07-22 N
Changhong Meiling Zhongshan Changhong 5000.00 2021-08-24 2022-08-23 N
Changhong Meiling Zhongshan Changhong 15000.00 2021-08-09 2022-08-08 N
Changhong Meiling Non-ferrous Metals 1000.00 2020-03-20 2021-03-05 Y
Changhong Meiling Meiling Group 6000.00 2020-03-26 2021-03-26 Y
Changhong Meiling Meiling Group 10000.00 2020-12-30 2021-12-29 Y
Changhong Meiling Meiling Group 5000.00 2021-03-05 2022-03-05 N
Changhong Meiling Meiling Life Appliances 2000.00 2021-07-26 2022-07-26 N
Changhong Meiling Meiling Life Appliances 5000.00 2021-07-29 2022-07-28 N
Changhong Meiling Meiling Life Appliances 5000.00 2021-08-18 2022-08-08 N
Changhong Meiling Meiling Life Appliances 2000.00 2021-10-13 2022-10-12 N
Changhong Meiling Meiling Life Appliances 4000.00 2021-12-09 2022-11-02 N
Zhongke Meiling Anhui Tuoxing 500.00 2021-04-01 2022-04-01 N
240Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Maximum
guarantee Completed
amount (Y/N)
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Counter guarantee:
Jiangxi Meiling Changhong Meiling 10000.00 2020-04-09 2021-04-09 Y
Jiangxi Meiling Changhong Meiling 10000.00 2021-07-08 2022-07-08 N
Changhong
Air-conditioner Changhong Meiling 5000.00 2021-09-24 2022-09-24 N
Changhong
Air-conditioner Changhong Meiling 15000.00 2021-12-07 2022-12-06 N
ChanghongRuba Changhong Meiling 2103.51 2019-12-23 2021-01-15 Y
ChanghongRuba Changhong Meiling 1831.50 2020-12-16 2021-12-07 Y
Ridian Technology Changhong Meiling 3000.00 2020-03-14 2021-03-13 Y
Ridian Technology Changhong Meiling 4000.00 2020-03-30 2021-03-31 Y
Ridian Technology Changhong Meiling 6500.00 2020-08-22 2021-08-22 Y
Ridian Technology Changhong Meiling 5000.00 2020-07-03 2021-07-02 Y
Ridian Technology Changhong Meiling 4000.00 2021-03-31 2022-03-31 N
Ridian Technology Changhong Meiling 5000.00 2021-06-09 2021-12-31 Y
Ridian Technology Changhong Meiling 3000.00 2021-08-09 2022-08-08 N
Ridian Technology Changhong Meiling 4000.00 2021-09-16 2022-09-15 N
Zhongke Meiling Changhong Meiling 2000.00 2020-12-25 2021-09-26 Y
Zhongke Meiling Changhong Meiling 3000.00 2020-09-22 2021-09-22 Y
Zhongke Meiling Changhong Meiling 2000.00 2020-08-24 2021-08-24 Y
Zhongke Meiling Changhong Meiling 1000.00 2020-11-19 2021-11-18 Y
Zhongke Meiling Changhong Meiling 1000.00 2020-03-10 2021-03-10 Y
Zhongke Meiling Changhong Meiling 1500.00 2020-06-01 2021-03-12 Y
Zhongke Meiling Changhong Meiling 500.00 2020-06-30 2021-03-15 Y
Zhongke Meiling Changhong Meiling 5000.00 2021-05-24 2022-05-24 N
Zhongke Meiling Changhong Meiling 6000.00 2021-09-22 2022-09-22 N
Zhongke Meiling Changhong Meiling 2000.00 2019-12-30 2020-11-22 Y
Zhongshan
Changhong Changhong Meiling 20000.00 2020-06-12 2021-03-10 Y
Zhongshan
Changhong Changhong Meiling 5000.00 2020-03-09 2021-03-09 Y
Zhongshan
Changhong Changhong Meiling 15000.00 2020-01-10 2021-01-10 Y
Zhongshan
Changhong Changhong Meiling 5500.00 2020-03-15 2021-03-15 Y
Zhongshan
Changhong Changhong Meiling 17900.00 2020-04-14 2021-04-13 Y
Zhongshan Changhong Meiling 20000.00 2020-03-30 2021-03-30 Y
241Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Maximum
guarantee Completed
amount (Y/N)
Secured party Sponsored party Start Date due
(In 10
thousand
yuan)
Changhong
Zhongshan
Changhong Changhong Meiling 12000.00 2020-04-28 2021-04-28 Y
Zhongshan
Changhong Changhong Meiling 10000.00 2020-08-31 2021-08-31 Y
Zhongshan
Changhong Changhong Meiling 15000.00 2020-07-03 2021-07-02 Y
Zhongshan
Changhong Changhong Meiling 20000.00 2021-04-08 2022-03-18 N
Zhongshan
Changhong Changhong Meiling 18000.00 2021-03-29 2022-03-29 N
Zhongshan
Changhong Changhong Meiling 13000.00 2021-03-03 2022-03-03 N
Zhongshan
Changhong Changhong Meiling 10000.00 2021-05-25 2022-05-25 N
Zhongshan
Changhong Changhong Meiling 9000.00 2021-03-15 2022-03-15 N
Zhongshan
Changhong Changhong Meiling 20000.00 2021-03-30 2022-03-30 N
Zhongshan
Changhong Changhong Meiling 5000.00 2021-07-22 2022-07-22 N
Zhongshan
Changhong Changhong Meiling 5000.00 2021-08-24 2022-08-23 N
Zhongshan
Changhong Changhong Meiling 15000.00 2021-08-09 2022-08-08 N
Non-ferrous Metals Changhong Meiling 1000.00 2020-03-20 2021-03-05 Y
Meiling Group Changhong Meiling 6000.00 2020-03-26 2021-03-26 Y
Meiling Group Changhong Meiling 10000.00 2020-12-30 2021-12-29 Y
Meiling Group Changhong Meiling 5000.00 2021-03-05 2022-03-05 N
Meiling Life
Appliances Changhong Meiling 2000.00 2021-07-26 2022-07-26 N
Meiling Life
Appliances Changhong Meiling 5000.00 2021-07-29 2022-07-28 N
Meiling Life
Appliances Changhong Meiling 5000.00 2021-08-18 2022-08-08 N
Meiling Life
Appliances Changhong Meiling 2000.00 2021-10-13 2022-10-12 N
Meiling Life
Appliances Changhong Meiling 4000.00 2021-12-09 2022-11-02 N
Anhui Tuoxing Zhongke Meiling 500.00 2021-04-01 2022-04-01 N
9. Assets transfer debt restructuring of related parties
Related party Type Current Year Last Year
Sichuan Changhong Intelligent Purchase and construction 9990763.76 4920208.93
242Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Related party Type Current Year Last Year
Manufacturing Technology Co. Ltd. of fixed assets
Sichuan Hongxin Software Co. Ltd. Construction of fixed assets 3912026.22 613207.54
Sichuan Hongcheng Construction Construction of fixed
Engineering Co. ltd assets 1950244.22
Sichuan Changhong Electric Co. Ltd. Construction of fixed assets 1833245.49
081 Electronic Group Co. Ltd. Construction of fixed assets 1064220.18
Sichuan Huanyu Industrial Co. Ltd. Construction of fixed assets 366972.48 2164755.99
Sichuan Hongxin Software Co. Ltd. Purchase of intangible assets 141509.43
Guangdong Changhong Electronics Co. Ltd. Purchase of fixed assets 39157.29
Sichuan Changhong Electric Co. Ltd. Purchase of fixed assets 1654600.00
Sichuan Zhiyijia Network Technology Co.Ltd. Purchase of fixed assets 820469.07
Sichuan Changhong Jineng Sunshine
Technology Co. Ltd. Purchase of fixed assets 42348.02
Sichuan Service Exp. Appliance Service
Chain Co. Ltd. Purchase of fixed assets 5238.94
Sichuan Changxin Refrigeration Parts Co.Ltd. Purchase of fixed assets 1894.30
Sichuan Changhong Electric Co. Ltd. Sales of fixed assets 339000.00 39611.48
Total 19637139.07 10262334.27
10. Other
Name of company Content Current Year (In 10 Last Year (In 10 thousand yuan) thousand yuan)
Yuanxin Financial Financing business financing expenses
Lease Co. Ltd. and financial leasing 49202.19 6466.21
11.Related transaction with Changhong Finance Company
(1) Saving balance
Interest income
Name of company Year-end balance Year-begin balance from bank saving in the
period
Changhong Meiling Co. Ltd. 1750741958.39 1860047247.52 49976396.40
Sichuan Changhong Air-conditioner Co. Ltd. 667374291.19 134802966.64 12869745.81
Zhongshan Changhong Electric Co. Ltd. 472478264.48 404582475.31 8824244.04
Hefei Changhong Meiling Life Appliances Co.Ltd. 204429613.95 1388149.46
Ground Energy Heat Pump Tech. (Zhongshan)
Co. Ltd. 117428653.82 69211263.89 1659241.27
Zhongke Meiling Cryogenic Technology Co.Ltd. 89236818.21 141336330.05 6886737.54
243Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Interest income
Name of company Year-end balance Year-begin balance from bank saving in the
period
Changhong Meiling Ridian Technology Co. Ltd. 78870573.40 162196324.57 2070691.51
Hebei Hongmao Household Appliance
Technology Co. Ltd 4185481.97 15657360.37 122096.84
Hefei Meiling Group Holdings Limited 227396.51 3742.21 3479.34
Anhui Tuoxing Technology Co. Ltd. 58438.14 10243055.56 212053.04
Mianyang Meiling Refrigeration Co. Ltd. 26052.45 50871.36 181.09
Hongyuan Ground Energy Heat Pump Tech. Co.Ltd 19795.17 114826.06 351.67
Jiangxi Meiling Electric Appliance Co. Ltd. 9585.70 9544.98 40.72
Total 3385086923.38 2798256008.52 84013408.73
(2) Discounting of notes
Bank Acceptance Bank Acceptance Discounting fee
Name of company Discounted face
value Discount amount
Amount of
expenses
Changhong Meiling Co. Ltd. 717895322.83 710633931.03 7261391.80
Sichuan Changhong Air-conditioner Co. Ltd. 705893271.26 697071665.96 8821605.30
Hefei Changhong Meiling Life Appliances Co.Ltd. 39073382.76 38849602.17 223780.59
Ground Energy Heat Pump Tech. (Zhongshan)
Co. Ltd. 6500000.00 6435216.67 64783.33
Total 1469361976.85 1452990415.83 16371561.02
(3) Issuance of invoices
Name of company Issuer Bill amount Types
Sichuan Changhong Air-conditioner Sichuan Changhong Group
Co. Ltd. Finance Co. Ltd. 2133868456.59 Bank acceptance
Changhong Meiling Co. Ltd. Sichuan Changhong Group Finance Co. Ltd. 751170773.81 Bank acceptance
Zhongshan Changhong Electric Co. Sichuan Changhong Group
Ltd. Finance Co. Ltd. 522970416.38 Bank acceptance
Hefei Meiling Group Holdings Limited Sichuan Changhong Group Finance Co. Ltd. 99820945.39 Bank acceptance
Hefei Changhong Meiling Life Sichuan Changhong Group
Appliances Co. Ltd. Finance Co. Ltd. 79878452.52 Bank acceptance
Zhongke Meiling Cryogenic Sichuan Changhong Group
Technology Co. Ltd. Finance Co. Ltd. 75218800.86 Bank acceptance
Ground Energy Heat Pump Tech. Sichuan Changhong Group
(Zhongshan) Co. Ltd. Finance Co. Ltd. 71379189.30 Bank acceptance
Changhong Meiling Ridian Technology Sichuan Changhong Group
Co. Ltd. Finance Co. Ltd. 48666158.90 Bank acceptance
Hebei Hongmao Household Appliance Sichuan Changhong Group
Technology Co. Ltd Finance Co. Ltd. 15571257.96 Bank acceptance
Anhui Tuoxing Technology Co. Ltd. Sichuan Changhong Group Finance Co. Ltd. 1044521.89 Bank acceptance
244Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Total 3799588973.60
(4) Borrowings: Nil
(5) Receivable factoring: Nil
12.Remuneration for key management
Item Current Year (In 10 thousand yuan) Last Year (In 10 thousand yuan)
Total remuneration 803.56 346.88
Including: performance
incentive fund
(iii) Come and go balance with related parties
1. Receivable items
Balance at year-end Balance at year-begin
Item Related party
Book balance Bad debt provision Book balance
Bad debt
provision
Account Sichuan Zhiyijia
receivable Network Technology 590034682.52 152851050.10 5950.95 Co. Ltd.Account CHANGHONGELEC
receivable TRIC(AUSTRALIA)P 55903139.06 82523745.73 TY.LTD.Account Changhong
receivable International Holdings 35985886.24 971525.15 23280926.68 (Hong Kong) Co. Ltd.Account Changhong Ruba
receivable Electric 39274379.69 2991971.20 46262313.51 3664544.64 Company(Private)Ltd.Account CHANGHONG(HK)T
receivable RADINGLIMITED 14593546.00 74561075.45
Account
receivable Orion.PDP.Co.ltd 7923855.47 1365471.85
Account Changhong Europe
receivable Electrics.r.o 3382179.18 7285475.46
Account Sichuan Changhong
receivable Electric Co. Ltd. 2512637.87 569.25 1648021.88
Account Sichuan Aichuang
receivable Science & Technology 1595719.32 1235293.51 Co. Ltd.Account Hong Yuan Ground
receivable Energy Heat Tech. Co. 1251751.92 185439.69 2557611.11 259719.23 Ltd.Account Changhong Grand-Pro
receivable Technology Co. Ltd. 705000.00
Account Changhong Huayi
receivable Compressor Co. Ltd. 642605.16
Account Lejiayi Chain
receivable Management Co. Ltd. 141775.39 752700.75 13309.44
245Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item Related party
Book balance Bad debt Bad debt provision Book balance provision
Account CHANGHONGELEC
receivable TRICMIDDLEEASTF 120716.04 1641684.42 ZCO
Account Sichuan Service Exp.receivable Appliance Service 67279.43 179721.66 Chain Co. Ltd.Account Sichuan Ansify
receivable Technology Co. Ltd. 52448.00
Account Sichuan Changhong
receivable International Hotel 17064.50 20166.00 Co. Ltd.Account Yuanxin Financial
receivable Lease Co. Ltd. 7852.07
Account Sichuan Changhong
receivable Minsheng Logistics 6619.80 12173.16 Co. Ltd.Account Guangdong
receivable Changhong Electronics 5239.75 248.56 3507.01 Co. Ltd.Account Sichuan Hongmofang
receivable Network Technology 4380.00 Co. Ltd.Account PT.CHANGHONGEL
receivable 703520.00 ECTRICINDONESIA
Account Sichuan Changhong
receivable Network Technology 291996.61 Co. Ltd.Account Sichuan Changhong
receivable Electronic Products 375287.92 Co. Ltd.Account Sichuan Changhong
receivable Electric Co. Ltd. 193981.98
Account Sichuan Changhong
paid in Intelligent Manufacturing 925280.67 2191049.27 advance Technology Co. Ltd.Account Sichuan Aichuang
paid in Science & Technology 684000.00
advance Co. Ltd.Account Sichuan Zhiyijia
paid in Network Technology 67678.94
advance Co. Ltd.Account
paid in Hefei Changhong
advance Industrial Co. Ltd.
38029.06
Account
paid in Sichuan Ailink
advance Technology Co. Ltd.
396.02
Account Sichuan Changhong
paid in Minsheng Logistics 366287.00
advance Co. Ltd.Other
account Changhong Grand-Pro
267000.00
246Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Balance at year-end Balance at year-begin
Item Related party
Book balance Bad debt Bad debt provision Book balance provision
receivable Technology Co. Ltd.Other Sichuan Service Exp.account Appliance Service 200000.00 200000.00
receivable Chain Co. Ltd.Other Sichuan Changhong
account Jiechuang Lithium 129000.00
receivable Technology Co. Ltd.Other
account Sichuan Changhong
receivable Electric Co. Ltd.
59857.212657173.57
Other Guangdong
account Changhong Electronics 25899.43
receivable Co. Ltd.Other
account Sichuan Changhong 19200.00
receivable Power Source Co. Ltd.Other
account Sichuan Changhong Jijia Fine Co. Ltd. 17232.50 receivable
Other
account Sichuan Changhong Real Estate Co. Ltd. 299373.25 receivable
Other Hunan Grand-Pro
account Intelligent Tech. 45200.00
receivable Company
Other Sichuan Changhong
account International Hotel 39550.00
receivable Co. Ltd.Total 756662331.24 4149753.85 403544357.88 3943524.26
2.Payable items
Item Related party Balance at year-end Balance at year-begin
Account payable Sichuan Changhong Electric Co. Ltd. 27523349.71 44726533.64
Account payable Changhong International Holdings (Hong Kong) Co. Ltd. 12718331.49 1502240.80
Account payable Mianyang Highly Electric Co. Ltd. 8324553.75 10035029.02
Account payable Sichuan Changxin Refrigeration Parts Co. Ltd. 7599199.65
Account payable Sichuan Aichuang Science & Technology Co. Ltd. 7290455.51 36339436.08
Account payable Sichuan Changhong Jijia Fine Co. Ltd. 6608580.22 30784821.38
Account payable Sichuan Changhong Package Printing Co. Ltd. 5553060.13 10337574.43
Account payable Changhong Huayi Compressor Co. Ltd. 3518643.94 24556917.25
Account payable Sichuan Ailink Technology Co. Ltd. 3014723.46 3067909.39
Account payable Sichuan Changhong Precision Electronics Tech. Co. Ltd. 2450482.58 877946.47
Account payable Sichuan Changhong Intelligent 1911174.67 962930.89
247Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Related party Balance at year-end Balance at year-begin
Manufacturing Technology Co. Ltd.Account payable Guangdong Changhong Electronics Co. Ltd. 1296473.51 848590.31
Account payable Sichuan Changhong Minsheng Logistics Co. Ltd. 760136.08 863688.97
Account payable Sichuan Service Exp. Appliance Service Chain Co. Ltd. 449551.04 261823.77
Account payable Hunan Grand-Pro Intelligent Tech. Company 391610.62 433594.69
Account payable Sichuan Changhong Electronic Products Co. Ltd. 372065.37 2388369.91
Account payable Chengdu Changhong Electronic Technology Co. Ltd. 326258.23
Account payable Sichuan Changhong Electric Co. Ltd. 115854.26 48150899.09
Account payable Sichuan Changhong International Travel Service Co. Ltd. 90789.00 50552.00
Account payable 081 Electronic Group Co. Ltd. 53196.86 136168.13
Account payable Sichuan Hongcheng Construction Engineering Co. ltd 50000.00
Account payable Sichuan Hongxin Software Co. Ltd. 28301.89
Account payable Sichuan Hongyu Metal Manufacturing Co. Ltd. 14662.40
Account payable Sichuan Changhong New Energy Technology Co. Ltd. 8000.40 5333.60
Account payable Sichuan Changhong Power Source Co. Ltd. 1870.82 1870.82
Account payable Sichuan Changhong Device Technology Co. Ltd. 0.18
Account payable Hong Yuan Ground Energy Heat Tech. Co. Ltd. 0.01
Account payable Changhong Ruba Electric Company (Private) Ltd. 8938947.95
Account payable Hefei Changhong Industrial Co. Ltd. 6434535.69
Account payable CHANGHONG(HK)TRADINGLIMITED 3052516.27
Account payable Sichuan Zhiyijia Network Technology Co. Ltd. 2979349.71
Account payable Sichuan Changhong Jineng Sunshine Technology Co. Ltd. 52743.33
Account payable Sichuan Changhong Electronics Holding Group Co. Ltd. 6687.52
Account payable Sichuan Hongwei Technology Co. Ltd. 3225.71
Contract liability Lejiayi Chain Management Co. Ltd. 828419.67 1774510.16
Contract liability Sichuan Changhong Electric Co. Ltd. 547736.39 750203.12
Contract liability Sichuan Aoku Technology Co. Ltd. 358528.90
Contract liability Sichuan Service Exp. Appliance Service Chain Co. Ltd. 303764.99 12736.12
Contract liability Sichuan Changhong Device Technology 59317.08
248Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Related party Balance at year-end Balance at year-begin
Co. Ltd.Contract liability Hong Yuan Ground Energy Heat Tech. Co. Ltd. 41894.81 108490.57
Contract liability Guang yuan Hongcheng Industrial Co. Ltd. 22935.78
Contract liability Sichuan Changhong Minsheng Logistics Co. Ltd. 3362.83 9355.42
Contract liability Chengdu Guigu Environmental Tech. Co. Ltd 1520.35
Contract liability CHANGHONG (HK) TRADING LIMITED 817.96 945.91
Contract liability Sichuan Tianyou Guigu Technology Co. Ltd. 185.84
Contract liability Sichuan Zhiyijia Network Technology Co. Ltd. 34.38
Contract liability 081 Electronic Group Co. Ltd. 22.61 25.55
Contract liability Sichuan Changhong Gerun Environmental Protection Tech. Co. Ltd. 5090.51
Contract liability Sichuan Changhong Electronics Holding Group Co. Ltd. 5080.00
Contract liability Hefei Changhong Industrial Co. Ltd. 4022.06
Contract liability Sichuan Changhong Real Estate Co. Ltd. 2154.65
Lease liability Sichuan Changhong Electric Co. Ltd. 11332933.78
Lease liability Hefei Changhong Industrial Co. Ltd. 24644347.94
Lease liability Chengdu Changhong Electronic Technology Co. Ltd. 977917.93
Other account Sichuan Changhong Minsheng Logistics
payable Co. Ltd. 100309779.69 75964081.82
Other account
payable Yuanxin Financial Lease Co. Ltd. 79697695.46 44276743.76
Other account
payable Sichuan Changhong Electric Co. Ltd. 2194205.68 1700295.88
Other account
payable Changhong Huayi Compressor Co. Ltd. 1598900.00 1598900.00
Other account Sichuan Zhiyijia Network Technology
payable Co. Ltd. 784247.43 41940.00
Other account Sichuan Changhong Intelligent
payable Manufacturing Technology Co. Ltd. 608075.10 1722946.07
Other account Sichuan Changhong Jineng Sunshine
payable Technology Co. Ltd. 500000.00 500000.00
Other account
payable Sichuan Changhong Jijia Fine Co. Ltd. 400500.00 400500.00
Other account
payable Sichuan Hongwei Technology Co. Ltd. 220425.76
Other account Hunan Grand-Pro Intelligent Tech.payable Company 250000.00 250000.00
Other account
payable Sichuan Qiruik Technology Co. Ltd. 175244.04
Other account Sichuan Service Exp. Appliance Service
payable Chain Co. Ltd. 116814.89
249Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Item Related party Balance at year-end Balance at year-begin
Other account
payable Sichuan Aoku Technology Co. Ltd. 96455.34
Other account Guangdong Changhong Electronics Co.payable Ltd. 79304.55
Other account Changhong International Holdings (Hong
payable Kong) Co. Ltd. 52728.63
Other account Sichuan Changhong Package Printing
payable Co. Ltd. 50000.00 50000.00
Other account Sichuan Changhong Electronic Products
payable Co. Ltd. 50000.00
Other account
payable Sichuan Ailink Technology Co. Ltd. 50000.00
Other account Sichuan Changxin Refrigeration Parts
payable Co. Ltd. 46702.03 46702.03
Other account
payable Sichuan Changhong Electric Co. Ltd. 43634.53 163469.22
Other account Sichuan Changhong Electronics Holding
payable Group Co. Ltd. 35359.74
Other account CHANGHONG (HK) TRADING
payable LIMITED 26435.95 32607.64
Other account Chengdu Guigu Environmental Tech. Co.payable Ltd 25132.00
Other account
payable Sichuan Jiahong Industrial Co. Ltd. 18.00 23100.04
Other account Sichuan Changhong Precision Electronics
payable Tech. Co. Ltd. 0.01 0.01
Other account
payable 081 Electronic Group Co. Ltd. 47460.00
Other account Sichuan Changhong Gerun
payable Environmental Protection Tech. Co. Ltd. 10000.00
Total 317006725.85 367301597.36
(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
3. Other contingency: Nil
XIV. Commitments: Nil
XV. Events occurring after the balance sheet date
250Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
1. Important non-adjustment items: Nil
2. Profit distribution:
For year of 2021 the individual statement of the parent company show net profit of 67464464.66
yuan according to the auditing from Shine Wing Certified Public Accountants (LLP). In accordance
with relevant regulations the retained profit at beginning of Current Year amounted as 943879339.46
yuan deducted the 2020 profit distributed 51776420.60 yuan and after extract for statutory surplus
reserve 6746446.47 yuanthe retained profit in individual statement of the parent company
cumulative counted as 952820937.05 yuan at end of 2021. In addition for year of 2021 the net profit
attributable to owners of parent company amounted as 51898388.84 yuan. According to relevant
regulations the consolidated statement covers and retained profit of 740754202.23 yuan at the
beginning of the year after deducted the 2020 profit distribution of 51776420.60 yuan and extract for
statutory surplus reserves of 6744493.90 yuan the cumulative retained profit of the consolidated
statement at end of 2021 is 734129724.00 yuan.According to relevant regulations the company's profit distribution shall be based on the profit
available for distribution of the parent company and shall comply with the principle of the lower of
the profit available for distribution in the consolidated statement and the parent company statement.Therefore the profit available for distribution in 2021 is the cumulative undistributed profit of
734129724.00 yuan in the consolidated statement at the end of 2021.
According to relevant laws and regulations and the "Articles of Association" and comprehensively
considering the interests of shareholders and the company's long-term development needs it is
proposed to:
The profit distribution plan for year of 2021 was: take the total shares (on the registration date when
implement the equity distribution plan for year of 2021) as the base distributed 0.5 yuan (tax included)
bonus in cash for every 10-share hold by all shareholders no share bonus issued and no capitalizing of
common reserves carried out.On February 18 2022 the implementation of shares buy-back of
domestically listed foreign shares (B-Share) was completed and the cancellation of the buy-back
shares are finished on March 2 2022. After cancellation total share capital of the Company amounted
to 1029923715 shares and the matters relating to the registered capital reduction and Article of
Association amendment have yet to be submitted to the shareholders general meeting for
consideration. Based on total share capital of 1029923715 shares after cancellation a cash dividend
of 51496185.75 yuan is expected to be paid.After this distribution it is estimated that the remaining accumulated undistributed profit of the parent
company will be 901324751.30 yuan and the remaining undistributed profit will be carried forward
251Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
for distribution in subsequent years.The aforesaid proposals have been deliberated and approved at the 16th session of 10th BOD and is
subject to the approval of shareholders general meeting.
3.Major sales 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. Correct ion of previous periods and influence: Nil
2. Debt restructuring: Nil
3. Assets replacement: Nil
4. Pension plan: Nil
5. Discontinuing operat ion: Nil
6.Branch information
In 10 thousand yuan
Refrigerator
Item freezer Air-con Small home ditioner appliances Other Sales in branch Total Washing
machine
Operation income 933873.12 720306.07 155320.15 36761.69 42965.28 1803295.75
Including: foreign trade 926726.02 720237.39 141662.80 14669.54 1803295.75
income
Income from transactions 7147.10 68.68 13657.35 22092.15 42965.28
between divisions
Operation expenses 937294.17 734253.06 152118.18 33435.82 42947.37 1814153.86
Operation profit -3421.05 -13946.99 3201.97 3325.87 17.91 -10858.11
Total assets 1130762.34 452506.40 72248.62 19131.38 170350.60 1504298.14
Total liability 644633.14 342258.54 50550.03 7622.49 26463.41 1018600.79
Supplementary information
Depreciation and amortization expenses 21281.03 14552.21 460.51 508.28 -11.33 36813.36
Capital expenditure 8886.16 10392.14 1.32 2253.77 21533.39
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) Presented according to the bad debt accrual method
252Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount at year-end
Category Book balance Bad debt provision
Amount Ratio(%
Book value
) Amount
Ratio(%
)
Account receivable that
withdrawal bad debt provision 1416366794.95 88.42 2554877.42 0.18 1413811917.53
by single item
Including: Related party
payments 1390662728.52 86.82 2203703.69 0.16 1388459024.83
Account receivable with letter
of credit 25352892.70 1.58 25352892.70
Account receivable with single
minor amount but withdrawal 351173.73 0.02 351173.73 100.00
single item bad debt provision
Account receivable withdrawal
bad debt provision by portfolio 185510434.61 11.58 16670455.89 8.99 168839978.72
Including: account receivable
of engineering customers 6246264.00 0.39 3123132.00 50.00
3123132.00
Receivables other than
engineering customers 179264170.61 11.19 13547323.89 7.56 165716846.72
Total 1601877229.56 100.00 19225333.31 1.20 1582651896.25
(Continued)
Amount at year-begin
Category Book balance Bad debt provision
Book value
Amount Ratio(%) Amount Ratio(%)
Account receivable that withdrawal bad
debt provision by single item 858063066.45 83.09 3370366.42 0.39 854692700.03
Including: Related party payments 815741150.65 78.99 2956149.11 0.36 812785001.54
Account receivable with letter of credit 38179742.75 3.70 38179742.75
Account receivable with single minor
amount but withdrawal single item bad 4142173.05 0.40 414217.31 10.00 3727955.74
debt provision
Account receivable withdrawal bad debt
provision by portfolio 174658647.31 16.91 10052329.94 5.76 164606317.37
Including: account receivable of
engineering customers 6255423.49 0.61 1250265.60 19.99 5005157.89
Receivables other than engineering
customers 168403223.82 16.31 8802064.34 5.23 159601159.48
Total 1032721713.76 100.00 13422696.36 1.30 1019299017.40
1) Provision for bad debts of account receivable on an individual basis
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 one client involved.
2) Account receivable withdrawal bad debt provision by portfolio
253Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
A. Account receivable of engineering customers
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
Within 3 months(3 months included)
Over 3 months and within 6 months (6 months
included)
Over 6 months and within one year (One year
i l d d)
over one year-within two years (2 years 20.00
i l d d)
Over 2 years - within 3 years (3 years 6246264.00 3123132.00 50.00
incl ded)
Over 3 years 100.00
Total 6246264.00 3123132.00
B. Receivables other than engineering customers
Balance at year-end
Account age
Book balance Bad debt Accrual ratio (%)
Within 3 months(3 months included) 146099823.60 1460998.24 1.00
Over 3 months and within 6 months (6 months 10604804.35 1060480.44 10.00
Over 6 m o n ths and within one year (One year 9051609.96 1810321.99 20.00
over one y ear-within two years (2 years 8453845.93 4226922.97 50.00
Over 2 years - within 3 years (3 years 327432.61 261946.09 80.00
Over 3 ye a rs 4726654.16 4726654.16 100.00
Total 179264170.61 13547323.89
(2) By account age
Account age Balance at year-end
Within 3 months(3 months included) 667235077.95
Over 3 months and within 6 months (6 months included) 867911914.43
Over 6 months and within one year (One year included) 35781521.18
over one year-within two years (2 years included) 13453956.99
Over 2 years - within 3 years (3 years included) 6594527.78
Over 3 years 10900231.23
Total 1601877229.56
(3) Bad debt reserves of the account receivable
Amount change in the year
Category Balance at Balance at year-begin Accrual Collected or
switch back Resale or write-off
year-end
Bad debt 13422696.36 5802636.95 19225333.31
254Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Amount change in the year
Category Balance at Balance at year-begin Accrual Collected or year-end
switch back Resale or write-off
provision
Total 13422696.36 5802636.95 19225333.31
(4)Top 5 balance of account receivable aggregated by the debtor at end of the year amounted to
1385311628.22 yuan accounted for 86.48% of the receivables at balance of current year-end the
bad debt provision amounted as 600051.99 yuan.
(5) Account receivable derecognized due to transfer of financial assets amounted to 311355057.85
yuan.
(6)There are no receivables and the amount of assets and liabilities formed by continued involvement
1.Other account receivable
Item Balance at year-end Balance at year-begin
Other account receivable 40708614.68 49093918.57
Total 40708614.68 49093918.57
(1) By nature
Nature Ending book balance Opening book balance
Related party in consolidation statement 4859662.12 3521237.00
Related party not in consolidation statement 200000.00 200000.00
Loans of employee’s pretty cash 4383234.18 5697517.11
Cash deposit 2788111.92 6507745.28
Export rebates 26634190.54 32281664.19
Other 1893415.92 935978.02
Total 40758614.68 49144141.60
(2) Provision for bad debt of other receivable
First stage Second stage Third stage
Bad debt reserves Expected credit
Expected credit Expected credit loss for
Total
loss in next 12 loss for the whole the whole duration
months duration (no credit (credit impairment has impairment) occurred)
Balance as at 1st Jan. 2021 223.03 50000.00 50223.03
Book balance of Other account
receivable in Current Year as at — — — —
1 Jan. 2021
--Transfer to the second stage
--Transfer to the third stage
255Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
First stage Second stage Third stage
Bad debt reserves Expected credit
Expected credit Expected credit loss for
loss in next 12 loss for the whole the whole duration
Total
months duration (no credit (credit impairment has impairment) occurred)
--Reversal to the second stage
--Reversal to the first stage
Provision in Current Year -223.03 -223.03
Reversal in Current Year
Conversion in Current Year
Write off in Current Year
Other change
Balance as at 31st December
202150000.0050000.00
(3) By account age
Account age Balance at year-end
Within 3 months(3 months included) 34703730.05
Over 3 months and within 6 months (6 months included) 1390793.47
Over 6 months and within one year (One year included) 1144671.71
over one year-within two years (2 years included) 1556311.89
Over 2 years - within 3 years (3 years included) 899400.00
Over 3 years 1063707.56
Total 40758614.68
(4) Top 5 balance of other account receivable aggregated by the debtor at end of the year
Proportion of
the total
Name of the unit Nature Balance at year-end Year-end balance of year-end Account age balance of bad debt reserve
other
receivable(%)
Unit 1 Export rebates 26634190.54 Within 3 months 65.35
Within 3
monthsWithin 3-6
Unit 2 Related party amount 2195879.38 5.39
months Within 6
months-1 year
Unit 3 Related party amount 2077335.14 Within 3 months 5.10
Unit 4 Employee petty cash 988754.39 Within 3 months 2.43
256Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Proportion of
the total
Name of the unit Nature Balance at Account age year-end Year-end balance of year-end balance of bad debt reserve
other
receivable(%)
Within 3
monthsWithin 3-6
Unit 5 Employee petty cash 541615.16 months Within 6 1.33
months-1 year
Within 1-2 years
Total 32437774.61 79.59
(5) There are no receivables involving government subsidies
(6) There are no other receivables derecognized due to the transfer of financial assets.
(7) There are no other receivables and the amount of assets and liabilities formed by continued
involvement
257Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
2.Long-term equity investments
(1) Classification of long-term equity investments
Balance at year-end Balance at year-begin
Item
Book balance Impairment loss Book value Book balance Impairment loss 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 Electrical Marketing Co. Ltd 54900000.00 54900000.00 54900000.00 54900000.00
Zhongshan Changhong Electric Co. Ltd. 304856419.37 304856419.37 304856419.37 304856419.37
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 91082111.12 91082111.12
Meiling CANDY Washing Machine Co. Ltd. 60000000.00 27675208.01 32324791.99 60000000.00 27675208.01 32324791.99
Hefei Meiling Wulian Technology Co. Ltd 6000000.00 6000000.00 6000000.00 6000000.00
CH-Meiling.International (Philippines) Inc. 6889100.00 6889100.00 6889100.00 6889100.00
Hefei Changhong Meiling Life Appliances Co. Ltd. 35000000.00 35000000.00
Investment in associates:
Hefei Xingmei Assets Management Co. Ltd. 19835366.84 19835366.84 6826274.99 6826274.99
Sichuan Zhiyijia Network Technology Co. Ltd. 45787014.55 45787014.55 45354700.69 45354700.69
Total 1910232449.67 27675208.01 1882557241.66 1861791043.96 27675208.01 1834115835.95
258Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
(2) Investment in subsidiaries
Provision for
Invested enterprise Balance at Increased in Decreased in impairment Ending balance of year-begin Current Year Current Year Balance at year-end losses in the impairment
Year
Zhongke Meiling Cryogenic Technology Co.Ltd. 42652000.00 42652000.00
Mianyang Meiling Refrigeration Co. Ltd. 95000000.00 95000000.00
Hefei Meiling Electrical Marketing Co. Ltd 54900000.00 54900000.00
Zhongshan Changhong Electric Co. Ltd. 304856419.37 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. 91082111.12 91082111.12
Hefei Changhong Meiling Life Appliances Co.Ltd. 35000000.00 35000000.00
Meiling CANDY Washing Machine Co. Ltd. 60000000.00 60000000.00 27675208.01
Hefei Meiling Wulian Technology Co. Ltd 6000000.00 6000000.00
CH-Meiling.International (Philippines) Inc. 6889100.00 6889100.00
Total 1809610068.28 35000000.00 1844610068.28 27675208.01
(3) Investment in associates
Ending
Changes in Current Year Balance at year-end balance of
Invested enterprise Balance at impairment year-begin
Additional Negative Investment income Adjustm Other equity Cash dividend or Provisio Ot
Investment Investment recognized under ent for change profit announced n for he
259Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
equity other to issued impair r
compreh ment
ensive loss
income
Hefei Xingmei Assets Management
Co. Ltd. 6826274.99 13009091.85 19835366.84
Sichuan Zhiyijia Network
Technology Co. Ltd. 45354700.69 1587930.30 -130171.30 1025445.14 45787014.55
Total 52180975.68 14597022.15 -130171.30 1025445.14 65622381.39
260Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
3.Operation income operation cost
(1)Operation income and operation cost
Current Year Last Year
Item
Income Cost Income Cost
Main business 6269665154.77 5961603587.31 5993841897.34 5587709737.76
Other business 1558625413.18 1504868816.56 2039108063.73 1988342535.09
Total 7828290567.95 7466472403.87 8032949961.07 7576052272.85
(2) Main business - Classified according to product
Current Year Last Year
Product
Operation income Operation cost Operation income Operation cost
Refrigerator freezer 5616008389.43 5336569969.26 5484841178.48 5093379851.08
Air conditioner 9710128.34 9624142.71 1927662.84 1922589.14
Washing machine 501650494.16 481590996.66 328707340.67 331857408.29
Small household appliances and
kitchen and bathroom 141304122.43 133042607.04 178264898.56 160500034.70
Other 992020.41 775871.64 100816.79 49854.55
Total 6269665154.77 5961603587.31 5993841897.34 5587709737.76
(3) Main business - Classified according to region
Current Year Last Year
Region
Operation income Operation cost Operation income Operation cost
Domestic 3755627585.57 3652876947.70 3092637436.35 3165520459.49
Overseas 2514037569.20 2308726639.61 2901204460.99 2422189278.27
Total 6269665154.77 5961603587.31 5993841897.34 5587709737.76
Top five clients in sales revenue amounted as 4209281817.95 yuan a 53.77 % in total operation income.
4. Investment income
Item Current Year Last Year
Long-term equity investment income by equity method 14597022.15 2444675.51
Investment income obtained from disposal of trading financial assets 54779974.55 47311415.04
Income from financial products 13016001.33 7845151.69
Long-term equity investment income by cost method 2754000.00 69912000.00
Investment income of other non-current financial assets during holding period 7596184.95 27218378.81
Total 92743182.98 154731621.05
XVIII. Approval of financial statement
261Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
The financial statement has already been approved from the board of directors of the Company for
reporting dated 29 March 2022.
262Annotations to Financial Statements of Changhong Meiling Co. Ltd.
From 1 January 2021 to 31 December 2021
(Unless otherwise specified. RMB for record in the statement)
Supplementary information for f inancial statement
2. Non-recurring gains and losses for this year
Item Current Year Note
Gains and losses from disposal of non-current assets -133214.72
Governmental subsidy reckoned into current gains/losses (not including the
subsidy enjoyed in quota or ration according to national standards which are 103024250.74
closely relevant to enterprise’s business)
Losses/gains from changes of fair values occurred in holding trading financial
assets and trading financial liabilities and investment income obtaining from
the disposal of trading financial assetstrading financial liability and financial 105811461.63
assets available-for-sale excluded effective hedging business relevant with
normal operations of the Company
Reversal of the account receivable depreciation reserves subject to separate
3245314.13
impairment test
Other non-operating income and expenses other than the above 4867985.38
Subtotal 216815797.16
Less: impact on income tax 21813023.99
Impact on minority shareholders’ equity (post-tax) 2886751.07
Total 192116022.10 —
3. Return on equity and earnings per share
Weighted average return
Profit during the report period Earnings per share/EPS (RMB/Share)
on equity Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders
of the parent company 1.07% 0.0497 0.0497
Net profit attributable to ordinary shareholders
of the parent company after deduction of the -2.89% -0.1342 -0.1342
non-recurring gains/losses
Chairman: Wu Dinggang
Changhong Meiling Co. Ltd.March 31 2022
263
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