CHANGHONG MEILING CO., LTD.
Semi-Annual Report 2024
August 2024
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Changhong MeilingCo., 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, individualand/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. YangJun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2024Semi- Annual Report is authentic, accurate and complete.The Company did not have directors, supervisors and senior executives of the Company could not guarantee thereality, accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to review this report in person.Modified audit opinions notes
□ Applicable √ Not applicable
Risk warning of concerning the forward-looking statements with future planning involved in semi-annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute asubstantial 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 areadvised to exercise caution of investment risks.
Investors are advised to read the full text of semi-annual report, and pay particular attention to the following riskfactors:
More details about the possible risks and countermeasures in the operation of the Company are described in thereport “X. Risks and countermeasures” of “Section III Management Discussion and Analysis”, investors are advisedto read the relevant content.Securities Times, China Securities Journal and Juchao Website (www.cninfo.com.cn) are the media for informationdisclosure for year of 2024 that appointed by the Company. All public information under the name of the Companydisclosed 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: NoProfit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the semi-annualperiod
□Applicable √Not applicable
The Company has no plans of cash distribution, bonus shares and capitalizing of common reserves either.Directors, supervisor and senior executives of the Company respectively signed Written Confirmation Opinions for2024 Semi-Annual Report.Supervisory Committee of the Company formed Written Examination Opinions for 2024 Semi-Annual Report.
Contents
I.Important Notice, Table of contents and Definitions 1II. Company Profile and Main Financial Indexes 6III. Management Discussion & Analysis 10IV. Corporate Governance 34V. Environmental & Social Responsibility 39VI. Important Events 43VII. Change of share capital and shareholding of Principal Shareholders 94VIII. Situation of the Preferred Shares 100IX. Corporate Bond 101X. Financial Report 102
Documents Aavailable for Reference
I.Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works andperson in charge of accounting organ;II. Original documents of the Company and manuscripts of public notices that disclosed in the website designatedby CSRC in the report period;
Definition
| Terms to be defined | Refers to | Definition |
| Company, The Company, Changhong Meiling or Meiling Electric | Refers to | CHANGHONG MEILING CO.,LTD. |
| Sichuan Changhong or controlling shareholder | Refers to | Sichuan Changhong Electric Co., Ltd. |
| Changhong Group | Refers to | Sichuan Changhong Electronics Holding Group Co., Ltd. |
| Hong Kong Changhong | Refers to | CHANGHONG (HK) TRADING LIMITED |
| Meiling Group | Refers to | Hefei Meiling Group Holdings Limited |
| 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. |
| Mianyang Meiling | Refers to | Mianyang Meiling Refrigeration Co., Ltd. |
| Jiangxi Meiling | Refers to | Jiangxi Meiling Electric Appliance Co., Ltd. |
| Wulian Technology | Refers to | Hefei Meiling Wulian Technology Co., Ltd |
| Zhongshan Changhong | Refers to | Zhongshan Changhong Electric Co., Ltd. |
| Changmei Life Appliances | Refers to | Hefei Changhong Meiling Life Appliances Co., Ltd. |
| Changhong Huayi | Refers to | Changhong Huayi Compressor Co., Ltd. |
| Shine Wing | Refers to | Shine Wing Certified Public Accountants (LLP) |
| CSRC | Refers to | China Securities Regulatory Commission |
| Anhui Securities Bureau | Refers to | China Securities Regulatory Commission, Anhui Province Securities Regulatory Bureau |
| SSE | Refers to | Shenzhen Stock Exchange |
II. Company Profile and Main Financial IndexesI.Company Profile
| Short form of the stock | Changhong Meiling, Hongmeiling B | Stock code | 000521,200521 |
| Short form of the Stock after changed (if applicable) | N/A | ||
| 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 Chinese) | 长虹美菱 | ||
| Foreign name of the Company (if applicable) | CHANGHONG MEILING CO.,LTD. | ||
| Abbr. of English name of the Company (if applicable) | CHML | ||
| Legal representative | Wu Dinggang | ||
II. Person/Way to contact
| Secretary of the Board | |
| Name | Li Xia |
| Contact add. | No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei |
| Tel. | 0551-62219021 |
| Fax. | 0551-62219021 |
| lixia@meiling.com |
III. Others(I) Way of contactWhether registrations address, offices address and codes as well as website and email of the Company changed inreporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change inreporting period, found more details in Annual Report 2023.(II) Information disclosure and preparation placeWhether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRCand preparation place for semi-annual report have no change in reporting period, found more details in AnnualReport 2023.
(III) Other relevant informationWhether other relevant information has changed in reporting period or not
□Applicable √Not applicable
IV. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
| Current period | Same period last year | Changes in the current reporting period compared with the same period of the previous year (+,-) | |
| Operating income (RMB) | 14,947,670,291.70 | 12,828,694,323.57 | 16.52% |
| Net profit attributable to shareholders of the listed company (RMB) | 415,033,415.88 | 358,054,844.74 | 15.91% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 432,504,456.37 | 381,989,843.82 | 13.22% |
| Net cash flow arising from operating activities (RMB) | 2,728,225,876.60 | 1,410,519,809.81 | 93.42% |
| Basic earnings per share (RMB/Share) | 0.4030 | 0.3477 | 15.90% |
| Diluted earnings per share (RMB/Share) | 0.4030 | 0.3477 | 15.90% |
| Weighted average ROE | 6.88% | 6.69% | Increase by 0.19 percentage points |
| End of current period | End of last year | Changes at the end of the reporting period compared with the end of the previous year (+,-) | |
| Total assets (RMB) | 23,844,271,479.92 | 19,391,604,526.19 | 22.96% |
| Net assets attributable to shareholder of listed company (RMB) | 5,932,872,702.91 | 5,824,782,654.09 | 1.86% |
V. Accounting data difference under domestic and foreign accounting standards
(I) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting 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 reportingperiod.(II) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □ Not applicable
In RMB
| Net profit attributable to shareholders of listed company | Net assets attributable to shareholders of listed company | |||
| Current period | Previous period | Ending amount | Opening amount | |
| Chinese GAAP | 415,033,415.88 | 358,054,844.74 | 5,932,872,702.91 | 5,824,782,654.09 |
| Items and amount adjusted by foreign accounting rules | ||||
| Foreign accounting rules | 415,033,415.88 | 358,054,844.74 | 5,932,872,702.91 | 5,824,782,654.09 |
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
(III) 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 fromCSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement for companieswho offering domestically listed foreign shares (B-share enterprise) while engaging securities practice qualificationCPA for auditing. The Company did not compile financial report under foreign accounting rules since 2007, thefinancial report of the Company is complying on the “Accounting Standard for Business Enterprise” in China, andtherefore, there are no differences of accounting data under accounting rules in and out of China at period-end.VI. Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 36,334.95 | Found more in “Income from assets disposal” and “Non-operation income/expenses” |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | 25,786,292.09 | Found more in “Other income" |
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company | -65,274,314.20 | Found more in "Financial cost”, “Investment income” and “Income of fair value changes” |
| Switch back of the impairment for receivables that has | 20,809,004.37 | Found more in “Account receivable" |
| impairment test independently | ||
| Other non-operating income and expenses other than the above | -1,926,547.40 | Found more in “Non-operation income" and " Non-operation expenses" |
| Less: impact on income tax | -7,066,269.14 | |
| Impact on minority shareholders’ equity (post-tax) | 3,968,079.44 | |
| Total | -17,471,040.49 |
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 inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss (revised in 2023).
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss (revised in 2023).
III. Management Discussion & AnalysisI. Main businesses of the company engaged in during the PeriodThe Company is one of China's major electric appliance manufacturers, possesses four major domesticmanufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases inIndonesia and Pakistan.The Company carefully builds the core competitiveness of the enterprise with technological innovation andproduct innovation. With the advanced R&D team and advanced technology accumulation, Meiling has madecontinuous breakthroughs in terms of frequency conversion, intelligence, preservation, thin wall, odourlessness,energy saving, air cooling, deep cooling, simulation, ultra-thin, cleaning and clothing protection. The Company hasestablished the first RoHS public testing center in Anhui Province, and it has a national enterprise technology center,a national industrial design center, a national post-doctoral research center and a 5G industrial Internet innovationand application laboratory.
In recent years, the Company has successively won many national honorary titles such as "IntelligentManufacturing Pilot Demonstration Project for Smart Refrigerators", "National Green Factory", "National QualityLeading Enterprise in Home Appliance Industry", "National Technology Innovation Demonstration Enterprise" and"China Industry-University-Research Cooperation Innovation Demonstration Enterprise". At the same time, theCompany has won a number of technology and product innovation honors by virtue of its strong innovation,products and brand, and a number of Meiling products have repeatedly won multiple domestic awards, constantlydemonstrating Meiling's ability and strength in intelligent innovation technology. The Frozen Fresh refrigerator506WP9BDZ won the AWE Award "Innovation Award" for its "Fresh" technology - roof-top constant temperaturefresh freezing technology, which was pioneered by Changhong Meiling in the industry, completely solving the sorepoint of repeated freezing in the freezer with subversive technological innovation, and promoting the upgrading offresh-keeping consumption in the refrigerator industry; Meiling 10KG "Blue Oxygen as Hand Washing" drumwashing machine LRS1H100D set a world record of "Drum washing machine with the least stain residue afterrinsing in the world" in world record association. Through the "stain residue removal technology by blue oxygen",the product features of "Cleanliness and Care" of the "Blue Oxygen as Hand Washing" series was established, whichpromoted the R&D of washing machines to the level of "Care" and "Cleanliness" and brought more health andscience to users' life; Meiling household gas-fired quick water heaters (JSQ30-MR-BS16516, JSQ30-MR-BS616Q3)won the "Boiling Quality Award" in 2024; Zhongke Meiling large-scale ultra-low temperature automatic biologicalsample bank technology won the "First Prize for Hefei Workers' Innovation".After more than 40 years of development, the Company has developed from single refrigerator products to anew pattern of coordinated development of refrigerators (freezers), air conditioners, washing machines, kitchen andbathroom products, small home appliances and biomedical cryogenic storage equipment. Through continuousinnovation, it has successively introduced a series of industry-leading products, such as the M-fresh refrigeratorwith the best fresh-keeping effect in the industry, the industry's first all-dust-free fresh air conditioner, the "BlueOxygen as Hand Washing" drum washing machine with the least stain residue after rinsing in the world, the
industry's first intelligent tea bar machine, and the ultra-low temperature medical refrigerator with a refrigerationtemperature up to minus 180°C, which has constantly brought consumers a fresher lifestyle with fresher products.In the future, based on the direction of digitalization and intelligence, the Company will adhere to the valueorientation and comprehensive efficiency improvement, enhance six capabilities around one goal, deepen internaland external coordination, strengthen compliance and risk control, promote sustained and high-quality developmentof the industry, and make the white goods industry bigger and stronger with excellent performance as the leadingforce. The Company will further improve the overall layout of smart homes, continue to develop 5G complete setsof home appliances based on the smart home system (consisting of IoT platform and App interactive software), andstrive to become a smart home solution provider. In the meanwhile, it will strengthen digital transformation andcontinue to strengthen digital and intelligent transformation around intelligent manufacturing (digital manufacturingand intelligent quality), 5G quantum cooperation and network security, and C+3 customer order system, so as tofurther promote the high-quality development of the enterprise.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 14.848billion yuan, a 99.33% of the operating income.II. Core Competitiveness Analysis
(1) Brand capacity
The Company is one of the well-known electrical appliance manufacturers in China, with products such asrefrigerators, freezers, air conditioners, washing machines, kitchen and bathroom products, small home appliances,and biomedical products. In order to achieve brand revitalization, the Company establishes four support points ofmarket, product, service and brand around brands that are strongly related to consumer behaviors, and makes jointefforts to form a brand revitalization plan.In the first half of 2024, the Company planted the "Fresh" seeds into consumers' hearts through measures suchas marketing, product experience, service upgrade and brand statement, molded the brand feature of "Meiling =Fresh" in consumers' hearts, and enhanced brand awareness, reputation and loyalty.
The Company adhered to differentiated innovation measures such as technology innovation, productinnovation and service innovation, and constantly accelerated the development of new quality productivity of theenterprise, accelerated the transformation and upgrading to intelligent manufacturing, and helped high-qualitydevelopment of the enterprise. In the first half of this year, the Company aimed at "new" and "quality" improvement,pursued "new" and "intelligence", which triggered People's Daily Online, Xinhua News Agency and GuangmingNet to report competitively.
In the future, the Company will adhere to the cultural spirit of "be a strong enterprise with innovation andachievements", adhere to the core values of "dedication, accountability, co-creation and sharing", constantlyimprove its core competitiveness, and constantly develop products to meet consumers' requirements, and strive tojointly create "Beautiful China, Fresh Meiling" with fresher products, fresher technologies and fresher services,
realize the corporate mission of "Meiling, may the happiness come" and accompany hundreds of millions of familiesaround the world in their beautiful life.
(2) Product capacity
The Company has built a number of national R&D platforms with strong R&D capabilities, establishedextensive and close Industry-University-Research cooperation with domestic and foreign research associations,enterprises and institutions, universities or scientific research institutions in various fields, continuously promotedtechnology and product innovation from an open perspective, and carefully built the core competitiveness of theenterprise. The Company has authoritative certifications such as "National Enterprise Technology Center","National Industrial Design Center", "National Intellectual Property Demonstration Enterprise", "NationalIndustrial Product Green Design Demonstration Enterprise", "National Technological Innovation DemonstrationEnterprise" and "China Industry-University-Research Cooperative Innovation Demonstration Enterprise" as astrong guarantee. Over the years, with the mode of independent innovation and cooperative innovation, it hasachieved fruitful results in multiple fields such as refrigerator (freezer), washing machine, air conditioner, kitchenand bathroom product, small home appliances, and biomedicine.In terms of refrigerator (freezer) products, the Company has been deeply involved in the field of professionalrefrigeration for more than 40 years. Through the accurate control of market trends and the study of consumerpreferences, it has persisted in promoting the continuous improvement of product competitiveness around theproduct upgrading idea of "fresh, thin, narrow and embedded", and continued to strengthen the product businesscards of "Meiling Fresh", "Meiling Thin", "Meiling Narrow" and "Meiling Embedded" in 2024. In terms ofrefrigerator products, the Company has released the third generation of "M-Fresh Series" refrigerators, continuouslysupplemented the best new French five-door of "Frozen Fresh Series" in the industry, and continuously strengthenedthe features of "Meiling Fresh". In order to comply with the trade-in trend of the industry, it fully upgraded the400/600BT "Big Narrow Door" series and rode the wave of "zero flat embedding" and "dual system" to continuouslystrengthen the layout of "Worry-free Embedded PRO" and "Seamless PRO" second-generation series embeddedrefrigerators; In terms of freezer products, it has developed frost-free series freezers, thin-walled defrosting andbacteriostatic freezers, -40°C deep-cooling intelligent electric control freezers, intelligent round-screen displayDTEB series freezers, large commercial freezers with variable frequency and great cryogenic ability, -40°C quick-frozen and fresh-locked vertical air-cooled freezers, export vertical air-cooled freezers, SC-270WE single-doorrefrigerated vertical display cabinets and commercial kitchen cabinets, and continuously built "the freezers with thebest fresh-keeping effect in the industry" for freezer products in the market.In terms of washing machine products, the Company has a deep insight into the users' needs, its strength in thecore technology field has been rapidly improved, and its product layout has become more complete. On the basis ofas hand washing series drums, it pioneered the "stain residue removal technology by blue oxygen" in the industry,and released the "Blue Oxygen as Hand Washing" series products. With the triple technology of as hand washingplus the stain residue removal technology by blue oxygen, the stain residue removal was more thorough at the sametime of cleaning, which laid the product features of "Cleanliness and Care" of the "Blue Oxygen as Hand Washing"series. In terms of pulsator products, it has further enriched the product lineup of "Hercules" series and created
characteristic products with more product features.Air conditioning products are user centered, based on actual usage scenarios, constantly iterating and upgradingproducts, and creating a series of "fully dust-free, guest dining cabinets" as two business cards. In the first half of2024, new products such as Q7D "fully dust-free and free air" hanging air conditioner and Q7V "Juneng Province"cabinet air conditioner will be launched, further meeting user needs in terms of health and comfort. Adhering toquality control, improving efficiency, and strengthening user service have greatly enhanced product confidence andbrand influence at the user and channel levels.In terms of kitchen and bathroom products and small home appliance products, it has focused on core productlines, takes market demand as the guide, strengthened the R&D capabilities, and optimized the product structure. Interms of small home appliances, it continued to tap into the core category. In the first half of the year, it launchedN10 fresh water series tea bar machine, which is equipped with industry-leading strontium-rich mineralizationtechnology and trace element equipment technology to achieve scientific proportion, thus realizing strontium-richmineralization of drinking water. In terms of kitchen and bathroom appliances, the Company insists on userorientation, focuses on users' sore points, constantly optimizes the product structure to meet the different needs ofthe market. In the first half of the year, it launched the second-generation honeycomb shaped gas-fired water heaterproduct, and improved the corrosion resistance and scale prevention ability of the water tank in hard water areas byoptimizing the pipe diameter, pipe running mode and turbulence structure.In terms of biomedicine, the Company adheres to the brand concept of "taking products as the main carrier anddelivering core values to users", focuses on the field of life sciences, and continuously promotes product innovationiteration and quality upgrade based on users' scenario demand, providing users with professional full-scenariosolutions, thus shaping a safe and stable brand image and continuously enhancing the brand influence. Focusing onthe needs of users, it has further improved the diversified layout of products, accelerated the R&D of new productsand the iterative upgrading of existing products, developed clean workbench and automatic ultra-low temperaturerefrigerated storage box products that meet good manufacturing practice standards, and at the same time,successfully iteratively upgraded a series of large-volume blood box products. In addition, it has also developedthree laboratory centrifuge products, namely, desktop low-speed, desktop high and low-speed and floor-type high-speed, to continuously promote the diversified and all-round development of products.
(3) Operation capacity
The Company continues to carrying out bench-marking activities to improve the operation and managementstandards and competitiveness of the Company. At the same time, the internal management capability has beencontinuously improved by continuing to carry out the improvement work in "human efficiency, money efficiencyand material efficiency". The company established a hierarchical sharing system with clear goals, quantitativeindicators, performance-oriented performance appraisal and incentives to activate internal productivity. Takingvalue chain management as the main line, continued to carry out value creation work, and enhanced the company'scompetitiveness. At the same time, continuously improved the internal control system and improved the ability toprevent risks.
(4) Marketing ability
The Company has established a relatively complete sales network and service system, which can provide userswith high-quality services covering all categories of white goods. The domestic market is actively accelerated to realizethe marketing transformation from product line-oriented sales management to channel- and user-oriented businessservices, from single-category marketing to full-category marketing, quickly building an operation managementsystem with reasonable commercial inventory management as the core and a value management system core withterminal retail price; through determined bench marking match, achieved products leading and efficiency improvementand builds the capability for marketing system and development potential for long period of time.In overseas markets, the Company has always adhered to business-oriented and customer-centered principles,and based on "product collaboration, internal and external collaboration and channel expansion", it explores intomarket demand, focuses on key markets and core quality customers, and improves marketing capabilities; Itstrengthens scientific and technological innovation, adheres to quality first, and constantly improves the quality andperformance of products; It focuses on customer satisfaction, continuously improves customer service ability andcustomer satisfaction by improving delivery rate, strengthening accessory management and quickly responding topre-sales and after-sales technical support needs. Based on the whole value chain, it enhances its operationalcapability, links up "marketing, production and research", promotes "money efficiency and material efficiency", andcontinuously enhances its international logistics capability in combination with the new shipping form. Throughproduct collaboration and team empowerment, it builds a team with the business ability of ice washing doubleindustry line, with the refrigerator cabinet and washing machine industry driven by two wheels; It develops brandbusiness, focuses on key markets and core channels of key markets, industrial structure balance and productstructure improvement, as well as resources to strengthen brand building, deepens channel expansion, continuouslyexpands business scale and improves business quality.III. Main Business Analysis
(1) Overview
□Yes √No
In the first half of 2024, The demand of domestic home appliance industry is insufficient. According to thetotal data of AVC, the retail sales of white goods market in the first half of the year was RMB 231.9 billion, with ayear-on-year decrease of 7.0%; The overseas market for home appliance exports continued to maintain a steadygrowth trend. In the face of fierce stock competition in the traditional home appliance market, the Company adheresto value orientation and comprehensively improves efficiency, strengthens industrial coordination and internal andexternal coordination, and steadily improves its business quality. In the first half of the year, the Company's revenuescale achieved year-on-year growth, profitability improved, and achieved benign development.
(2) Progress of the company's development strategy and business plan during the reporting period
During the reporting period, the Company carried out work around the business idea of "adhering to theguidance of party building, adhering to the value orientation, comprehensively improving efficiency, focusing onone goal, improving six capabilities, deepening internal and external coordination, strengthening compliance andrisk control, and promoting the company's sustained and high-quality development", and actively promoted the
implementation of the business plan.
1. Refrigerator industry
Domestically, it adheres to the business idea of "value-orientation and comprehensive efficiency improvement",focuses on promoting quality products, strengthening channels, enhancing coordination, improving efficiency,controlling risks and improves market construction in base areas, improves marketing management and servicecapabilities, makes full use of a relatively complete sales network and service system to provide customers withhigh-quality services. On the research and production end, it is user-centered, to solve the users' sore points, createusers' value, and promote the intelligent and high-end transformation and upgrading of the Company's products. Onthe market end, it adheres to the product strategy of "grasping retail, promoting quality products and improvingefficiency", enlarges the product layout around M-Fresh, Frozen Fresh, Zero-embedded Refrigerators and Frost-free Freezers, and creates phenomenal hot products through product packaging planning, online and offlineintegrated promotion, new product launch conference, recommendation by networking platform, etc., thuscontinuously improving the ability of middle and high-end products, and promoting product structure improvementand benign industrial operation.Overseas, the Company continues to promote the business strategy of "product leading, ice-washing dual-drive,brand strength and KA speed-up", and carries out work around high-quality scale growth. By strengthening theupgraded product planning and differentiated product design, it mainly promotes air-cooling, frequency conversion,multi-door and drum products to improve product structure; It develops brand business, develops key markets andmake breakthrough in key core channels; It accelerates the increase of KA customer scale and strengthens thematching of key resources such as R&D and manufacturing; It focuses on energy efficiency upgrading and upgradesthe European market, deepens the Asian and African markets with good business foundation, focuses on largecustomers to expand the markets in Latin America and the Middle East, actively explores the potential of emergingmarkets in developing countries, and achieves sustained and benign growth in scale.During the reporting period, the Company's refrigerator (freezer) business realized an income of about RMB
4.607 billion, with a year-on-year increase of 12.42%.
2. Air conditioning industry
Domestic air conditioning is guided by goals, problem oriented, quickly responds to the market, consolidatesbasic management, and strengthens compliance and risk control. In terms of products, we focus on Q7D "fully dust-free and free air" hanging machines and Q7V "giant energy saving" cabinet machines, continuously meeting users'health, comfort, and energy-saving needs, and enhancing brand image; In terms of marketing, the C-end ispromoting channel expansion, focusing on key regional markets to increase scale and market share; B-end continuesto deepen strategic cooperation with core customers, pursuing maximum scale while controlling profits and losses.
In terms of overseas air conditioning, it carries out work around the business policy of "brand momentum,product upgrading, quality remolding, regional balance and digital empowerment" to continuously promote thebenign development of business. It adheres to the principle of prioritizing brand development and deeply cultivates
the base market; It promotes high, new and frequency conversion products, and actively adjusts the product structureto meet the market demand for energy-efficient products; It optimizes channels and focuses on key markets in LatinAmerica and the Middle East; It focuses on big customers and increases the customer scale; It makes breakthroughin new markets and new customer channels, accelerates the expansion of new markets and new customer channels,and continuously injects momentum into business development, and achieves good results.During the reporting period, the Company's air-conditioning business realized an income of about RMB 8.50billion, with a year-on-year increase of 21.47%.
3. Washing machine industry
In the washing machine industry, it adheres to the business idea of "value orientation and comprehensiveefficiency improvement", adheres to the differentiated competition strategy, continuously optimizes and adjusts theproduct structure, actively promotes the timely delivery of products, comprehensively improves product quality andenhances customer service satisfaction. In the domestic market, it focuses on the base market, infrastructure and e-commerce channels, promotes the breakthrough of outlets through key products, deepens the transformation andconstruction of key stores and benchmark areas, and achieves scale improvement; At the same time, around theneeds of users, it gives full play to the competitive advantages of product differentiation, expands the "Blue Oxygenas Hand Washing" drum and the "Hercules" pulsator products, enhances the competitiveness of Meiling's mid- tohigh-end products, and further consolidates the cleaning features. In terms of foreign markets, it has rapidlypromoted the expansion of business layout around the world and achieved breakthroughs in core customers in keyregions; It emphasizes ultra-thin drums, focuses on resource investment, completes the product layout in the corearea by enriching the product matrix, and improves the scale and profitability of washing machines.During the reporting period, the Company's washing machine business realized an income of about RMB 784million, with a year-on-year increase of 40.65%.
4. Kitchen, bathroom and household appliance industry
In the kitchen and bathroom product and small home appliance industry, in the first half of the year, it focusedon its core business, promoted the update and iteration of product technology, promoted the successful launch ofnew products, and continuously improved its brand influence; It accelerated the upgrading of product structure,promoted the optimization of product efficiency, gradually eliminated the categories with poor market performanceand poor consumer feedback, and output the category planning outline; It continuously optimized the marketingstrategy, channel construction layout, and control of core business links, enhanced the business capabilities, andhelped the high-quality development of the industry.
During the reporting period, the Company's kitchen, bathroom and household appliance business realized anincome of about RMB 745 million, with a year-on-year increase of 12.69%.
5. Biomedical
In the domestic market, it focuses on the field of life sciences, continuously implements the reform and
reconstruction of user-centered channel organization, co-ordinates the platform resources, promotes the horizontalexpansion and vertical deepening of market segment channel system, deeply explores the user demand, furtherenhances the product strength and service strength, expands the user coverage, and enhances the marketcompetitiveness and market share. In overseas markets, it adheres to the strategy of "expanding scales for oldcustomers, and strengthening distribution for new customers", consolidates the foundation of overseas channels interms of quality and quantity, builds a comprehensive and sound channel distribution network, and maintains astrong momentum of market development in key regions; It adheres to "inviting in and going out", activelyparticipates in well-known international exhibitions, and appears in overseas markets with new products such ascentrifuges; It constantly upgrades the after-sales service system, be close to customers, approach users and serveusers, and effectively improve the customer satisfaction.
During the reporting period, the Company's biomedical business realized an income of about RMB 132 million,with a year-on-year increase of 4.5%.
(3)Y-o-y changes in the key financial data
In RMB
| Current Period | Same period last year | Y-o-y changes (+,-) | Causes | |
| Operation income | 14,947,670,291.70 | 12,828,694,323.57 | 16.52% | No major changes |
| Operation cost | 13,261,806,565.80 | 11,178,914,075.83 | 18.63% | No major changes |
| Sales expense | 834,329,749.56 | 786,493,259.32 | 6.08% | No major changes |
| Administrative expense | 157,436,505.99 | 182,962,865.60 | -13.95% | No major changes |
| Financial expense | -101,700,926.74 | -115,013,926.27 | 11.58% | No major changes |
| Income tax expenses | 53,105,204.51 | 925,010.04 | 5,641.04% | It is mainly due to the increase in income tax expenses caused by the increase in taxable income of the Company in this period |
| R&D investment | 315,380,860.98 | 279,474,680.96 | 12.85% | No major changes |
| Net cash flow from operation activity | 2,728,225,876.60 | 1,410,519,809.81 | 93.42% | It is mainly due to the year-on-year increase in cash received by the Company in selling goods and providing services in this period |
| Net cash flow from investment activity | -2,185,864,480.54 | -471,423,480.69 | -363.67% | It is mainly due to the year-on-year increase in structured deposits purchased by the Company in this period |
| Net cash flow from financing activity | -337,831,777.09 | 187,731,430.13 | -279.95% | It is mainly due to the year-on-year increase in the Company's repayment of short-term loans and dividend distribution |
| Net increased amount of cash and cash equivalent | 221,968,930.27 | 1,132,355,171.56 | -80.40% | It is mainly due to the decrease in net cash flow generated by the Company's investment activities in this period |
| Taxes and surcharges | 53,110,913.19 | 98,025,766.62 | -45.82% | It is mainly due to the payment of waste electrical and electronic product disposal fund in the previous period, which is not caused in this period |
| Other income | 81,307,947.62 | 32,328,256.66 | 151.51% | It is mainly due to the Company's |
| recognition of value-added tax deduction in this period | ||||
| Investment income | 2,933,725.87 | 14,377,940.05 | -79.60% | It is mainly due to the year-on-year increase in the Company's factoring expenses in this period |
| Credit impairment loss | 12,475,890.64 | -41,081,589.83 | -130.37% | It is mainly due to the reversal of the Company's bad debt losses of accounts receivable in this period |
| Assets impairment loss | -29,258,587.16 | -18,167,335.89 | 61.05% | It is mainly due to the year-on-year increase in the provision for inventory depreciation loss of the Company in this period |
| Non-operating income | 2,550,542.70 | 10,704,019.80 | -76.17% | It is mainly due to the reduction of liquidated damages received by the Company in this period |
| Non-operating expenses | 4,477,090.10 | 3,014,799.22 | 48.50% | It is mainly due to the increase in the Company's relocation expenses in this period |
(4)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
(5) Constitute of operation revenue/income
In RMB
| Current Period | Same period last year | Y-o-y changes (+,-) | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 14,947,670,291.70 | 100% | 12,828,694,323.57 | 100% | 16.52% |
| On industry | |||||
| Manufacture of household appliances | 14,847,789,922.86 | 99.33% | 12,734,698,313.84 | 99.27% | 16.59% |
| Other business | 99,880,368.84 | 0.67% | 93,996,009.73 | 0.73% | 6.26% |
| On products | |||||
| Refrigerator, freezer | 4,739,349,946.80 | 31.71% | 4,224,670,444.64 | 32.93% | 12.18% |
| Air-conditioning | 8,499,905,660.36 | 56.86% | 6,997,497,159.24 | 54.55% | 21.47% |
| Washing machine | 783,936,724.28 | 5.24% | 557,352,305.32 | 4.34% | 40.65% |
| Small appliance and kitchen & toilet | 744,514,913.93 | 4.98% | 852,703,435.92 | 6.65% | -12.69% |
| Other products | 80,082,677.49 | 0.54% | 102,474,968.72 | 0.80% | -21.85% |
| Other business | 99,880,368.84 | 0.67% | 93,996,009.73 | 0.73% | 6.26% |
| On Area | |||||
| Domestic | 10,130,279,475.77 | 67.77% | 8,930,940,864.80 | 69.62% | 13.43% |
| Foreign | 4,817,390,815.93 | 32.23% | 3,897,753,458.77 | 30.38% | 23.59% |
(6)The industries, products or regions that accounting for over 10% of the Company’s operating revenue oroperating profit
√Applicable □ Not applicable
In RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| On Industry | ||||||
| Manufacture of household appliances | 14,847,789,922.86 | 13,208,737,884.37 | 11.04% | 16.59% | 18.72% | -1.59% |
| On Products | ||||||
| Refrigerator, freezer | 4,739,349,946.80 | 3,927,763,612.83 | 17.12% | 12.18% | 13.76% | -1.15% |
| Air-conditioning | 8,499,905,660.36 | 7,916,263,677.05 | 6.87% | 21.47% | 24.00% | -1.90% |
| On Area | ||||||
| Domestic | 10,035,812,723.99 | 8,872,341,855.56 | 11.59% | 13.49% | 15.49% | -1.53% |
| Foreign | 4,811,977,198.87 | 4,336,396,028.81 | 9.88% | 23.64% | 25.93% | -1.65% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted mainbusiness based on latest one year’s scope of period-end
□ Applicable √ Not applicable
IV. Analysis of the non-main business
√ Applicable □Not applicable
In RMB
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 2,933,725.87 | 0.61% | It is mainly due to the income from the Company's creditor's rights investment and other non-current financial asset investment in this period | N |
| Gains/losses from change of fair value | -42,719,405.68 | -8.94% | It is mainly due to the evaluated loss of the Company's forward foreign exchange contracts and unrecognized firm commitments in this period | N |
| Asset impairment | -29,258,587.16 | -6.12% | It is mainly due to the provision for inventory depreciation loss of the Company in this period | N |
| Non-operating income | 2,550,542.70 | 0.53% | It is mainly due to the liquidated damages received by the Company in this period | N |
| Non-operating expense | 4,477,090.10 | 0.94% | It is mainly due to the relocation expenses paid by the Company in this period | N |
| Other income | 81,307,947.62 | 17.01% | It is mainly due to the Company's recognition of value-added tax deduction in this period | N |
| Credit impairment loss | 12,475,890.64 | 2.61% | It is mainly due to the reversal of the Company's bad debt losses of accounts receivable in this period | N |
V. Analysis of assets and liability
(1) Major changes of assets composition
In RMB
| End of current period | Year-end of last year | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 9,049,689,291.78 | 37.95% | 8,840,685,525.71 | 45.59% | -7.64% | It is mainly due to the decrease in the proportion caused by the increase in the total assets of the Company in this period |
| Account receivable | 2,167,372,348.82 | 9.09% | 1,633,706,889.06 | 8.42% | 0.67% | It is mainly due to the increase in the Company's operating income in this period |
| Contract assets | 10,193,150.12 | 0.04% | 13,261,690.62 | 0.07% | -0.03% | No major changes |
| Inventory | 3,570,153,407.57 | 14.97% | 2,022,738,412.97 | 10.43% | 4.54% | It is mainly due to the increase in production of the company in this period |
| Investment real estate | 49,948,104.52 | 0.21% | 50,920,487.71 | 0.26% | -0.05% | No major changes |
| Long-term equity investment | 112,836,567.94 | 0.47% | 112,745,811.75 | 0.58% | -0.11% | No major changes |
| Fix assets | 2,155,971,273.86 | 9.04% | 2,136,912,034.28 | 11.02% | -1.98% | It is mainly due to the decrease in the proportion caused by the increase in the total assets of the Company in this period |
| Construction in progress | 69,381,313.71 | 0.29% | 69,920,839.20 | 0.36% | -0.07% | No major changes |
| Right-of-use assets | 115,425,096.53 | 0.48% | 49,993,400.61 | 0.26% | 0.22% | It is mainly due to the Company's new factory lease in this period |
| Short-term loans | 1,145,550,587.35 | 4.80% | 1,134,102,419.03 | 5.85% | -1.05% | It is mainly due to the decrease in the proportion caused by the increase in the total assets of the Company in this period |
| Contract liability | 394,822,462.19 | 1.66% | 405,698,756.02 | 2.09% | -0.43% | It is mainly due to the decrease in the Company's advance payment in this period |
| Long-term loans | 89,058,089.90 | 0.37% | 108,000,000.00 | 0.56% | -0.19% | It is mainly due to the reclassification of the company's long-term loans to non-current liabilities due within one year |
| Lease liability | 104,173,573.28 | 0.44% | 43,488,292.70 | 0.22% | 0.22% | It is mainly due to the Company's new factory lease in this period |
| Creditor’s rights | 1,231,537,871.00 | 5.16% | 420,537,485.54 | 2.17% | 2.99% | It is mainly due to the increase in the |
| End of current period | Year-end of last year | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| investment | Company's large deposit certificates in this period | |||||
(2) Main overseas assets
□ Applicable √ Not applicable
(3) Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
| Item | Amount at the beginning period | Changes of fair value gains/losses in this period | Accumulative changes of fair value reckoned into equity | Devaluation of withdrawing in the period | Amount of purchase in the period | Sales in the period | Other changes | Amount at end of the period |
| Financial assets | ||||||||
| 1.Trading financial assets (derivative financial assets excluded) | 39,236,447.63 | -28,216,454.50 | 2,380,000,000.00 | 1,300,000,000.00 | 1,091,019,993.13 | |||
| 2.Receivable financing | 1,641,858,740.34 | -41,485,382.47 | 1,600,373,357.87 | |||||
| 3.Other non-current financial assets | 674,139,515.48 | 674,139,515.48 | ||||||
| Subtotal of financial assets | 2,355,234,703.45 | -28,216,454.50 | 2,380,000,000.00 | 1,300,000,000.00 | -41,485,382.47 | 3,365,532,866.48 | ||
| Subtotal of financial assets | 2,355,234,703.45 | -28,216,454.50 | 2,380,000,000.00 | 1,300,000,000.00 | -41,485,382.47 | 3,365,532,866.48 | ||
| Financial liabilities | 32,229,012.86 | 14,677,745.70 | 46,906,758.56 | |||||
Other changes:
Other change of Trading financial assets mainly due to the provision of income from financial products; otherchange of rreceivable financing due to the decrease in note receivable with the objective of both collectingcontractual cash flow (collections) and selling (endorsement or discounting)
Whether there have major changes on measurement attributes for main assets of the Company in report period ornot
□Yes √ No
(4) 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 “25. Assets with restrictedownership or use rights” in “V. Note of consolidate financial statement” carried under Section X. Financial ReportVI. Investment analysis
(1) Overall situation
√Applicable □ Not applicable
| Investment in the reporting (RMB) | Investment in the same period of last year ( RMB) | Changes |
| 100,000,000 | 0 | 100% |
(2) The major equity investment obtained during the reporting period
√Applicable □ Not applicable
In RMB
| Name of invested | Principal business | Method of investment | Amount of investment | Shareholding ratio | Capital sources | Partners | Term of investment | Type of products | Status as of the balance sheet date | Expected return | Current investment profit and loss | Whether involved in a lawsuit(Y/N) | Date of disclosure (if applicable ) | Index of disclosure (if applicable ) |
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd. | General items: Technical service, technical development, technical consultation, technical exchange, technology transfer and technology popularization; Software development; Software sales; Information technology consulting services; Industrial Internet data service; Information system integration service; Electronic component manufacturing; R&D of special electronic materials; Integrated circuit manufacturing; R&D of home appliances; Manufacturing of home appliances; Sales of home appliances; Installation service of home appliances; Sales of refrigeration and air conditioning equipment; Manufacturing of refrigeration and air conditioning equipment; Sales of electronic products; Manufacturing of special electronic materials; Sales of spare parts for home appliances; Sales of metal materials; Manufacturing of communication equipment; Non-residential real estate lease; General cargo storage services (excluding dangerous chemicals and other items that need permission and approval); Import and export of goods. (Except for items that are subject to approval according to law, business activities shall be independently carried out according to law by virtue of business license) | Newly established | 100,000,000 | 100% | Self-fund | N/A | Long-term | Manufacturing and sales of frequency conversion drive control panel in air conditioning industry (including special air conditioners) | During the reporting period, it invested RMB 100 million | Not applicable | -4,243,922.62 | No | March 15,2024 | www.cninfo.com.cn（2024-006) |
| Total | -- | -- | 100,000,0 | -- | -- | -- | -- | -- | -- | -- | - | -- | -- | -- |
| 00 | 4,243,922.62 |
(3)The material non-equity investment during the reporting period
□Applicable √ Not applicable
The Company invested RMB 88 million in the refrigerator front-end capacity improvement project of Hefei manufacturing base. For details, please refer to SectionVI "XIII. Explanation of Other Important Matters".
(4)Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
2. Derivative investment
√Applicable □ Not applicable
(1) Derivatives investment for hedging purposes during the reporting period
√ Applicable □ Not applicable
In RMB 10,000
| Type | Initial investment | Amount at the beginning period | Profit and loss of fair value change in the current period | Changes in the cumulative fair value included in the equity | Amount purchased in the reporting period | Amount sales in the reporting period | Investment amount at period-end | Ratio of investment amount at period-end in net assets of the Company at period-end |
| Forward foreign exchange contract | 630,614.02 | 332,515.07 | -4,516.01 | 0 | 469,175.88 | 470,831.56 | 331,426.99 | 55.86% |
| Total | 630,614.02 | 332,515.07 | -4,516.01 | 0 | 469,175.88 | 470,831.56 | 331,426.99 | 55.86% |
| Specific principle of the accounting policy and calculation for derivatives in the Period compared | Not applicable | |||||||
| with last period in aspect of major changes | |
| Description of actual profit and loss during the reporting period | During the reporting period, the Company confirmed the income from derivatives investment of RMB -5.6759 million |
| Description of hedging effect | During the reporting period, the Company adhered to the principle of exchange rate risk neutrality, used forward foreign exchange contracts as hedging tools, and signed forward foreign exchange contracts according to the foreign exchange receipt amount predicted by sales and the target cost exchange rate. The delivery period matched with the predicted return amount, and the agreed delivery amount matched with the predicted return amount to avoid the risks caused by exchange rate fluctuations. The cash flow changes in the hedging tools during the reporting period can offset the cash flow changes in the hedged items caused by exchange rate fluctuations, which met the requirements of hedging effectiveness and achieved the hedging objectives. |
| Capital resource | Own fund |
| Risk analysis and controlling measures for derivatives holdings in the Period (including but not limited to market risk, liquidity risk, credit risks, operation risk and law risks etc.) | Risk analysis: 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure reasonable profit level. 2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the requirements of the trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect liquidity of company funds. 3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign exchange contracts with contract price, which leads the risk of income uncertainty. So the Company chose five state-owned banks, the Chinese-funded banks in shareholding enterprise as Everbright Bank, Industrial Bank and the foreign-funded banks as UOB, OCBC, BEA etc. to conduct the trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss may bring to the Company is very low. 4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The Company has formulated related management system which defines the operation process and responsibility to prevent and control risks. 5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign exchange transactions are processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as to risk control. |
| Invested derivative products have changes in market price or fair value in the Period, as for analysis of the fair value of derivatives, disclosed specific applied methods and correlation assumption and parameter setting | The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets and liabilities. |
| Lawsuit involved (if applicable) | Not applicable |
| Disclosure date for approval from the Board for investment of derivatives (if applicable) | March 30,2024 |
| Disclosure date for approval from board of shareholders for investment of derivatives (if applicable) | April 26,2024 |
(2）Derivative investments for speculation during the reporting period
□ Applicable √ Not applicable
The Company had no derivative investment in the reporting period.
(5).Application of raised proceeds
□ Applicable √ Not applicable
The Company had no Application of raised proceeds in the reporting period.VII. 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
VIII. Analysis of main holding company and stock-jointly companies
√ Applicable □Not applicable
(1) 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 Cryogenic Technology Co., Ltd. | Subsidiary | Research and development, manufacturing and sales of ultra-low temperature freezer | 96,730,934 | 737,697,341.25 | 603,039,962.52 | 147,052,294.25 | 10,339,671.79 | 10,426,784.69 |
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Jiangxi Meiling Electric Appliance Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 50,000,000 | 388,537,580.99 | 164,424,780.67 | 452,727,042.33 | 8,065,880.44 | 8,070,080.44 |
| Mianyang Meiling Refrigeration Co., Ltd. | Subsidiary | Manufacturing of refrigeration and freezer | 100,000,000 | 188,261,484.31 | 121,564,226.19 | 144,161,250.48 | 226,435.20 | 225,729.28 |
| Sichuan Changhong Air-conditioner Co., Ltd. | Subsidiary | R&D, manufacturing and domestic sales of air-conditioning | 850,000,000 | 7,669,854,642.67 | 1,387,607,623.09 | 5,980,606,189.78 | 197,430,766.90 | 169,983,588.43 |
| Zhongshan Changhong Electric Co., Ltd. | Subsidiary | R&D, manufacturing and foreign sales of air-conditioning | 334,000,000 | 3,084,772,990.34 | 397,811,423.40 | 2,646,258,855.57 | 54,017,058.03 | 48,293,893.96 |
| Hefei Meiling Group Holdings Limited | Subsidiary | Sales of white goods | 80,000,000 | 1,224,041,101.51 | -232,062,180.44 | 2,725,785,206.35 | 60,437,448.54 | 60,074,232.62 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Subsidiary | R&D and sales of household appliances, kitchen appliances and small home appliances | 50,000,000 | 681,337,829.37 | 153,568,317.80 | 680,109,991.85 | 16,904,169.89 | 13,774,801.74 |
(2) Subsidiary obtained and disposed in the period
√ Applicable □Not applicable
| Company name | The method of obtaining and disposing subsidiaries during the report period | The influence to the whole production and performance |
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd. | Established by investment | Changhong Air Conditioning, a wholly-owned subsidiary of the Company, invested RMB 100 million to set it up. The establishment of the company aims to further enhance the key core technical capabilities and asset utilization rate, improve the processing services and quality assurance capabilities of electronic products, and at the same time to engage in related businesses centered on manufacturing and sales of frequency conversion drive control panels in the air conditioning industry (including special air conditioners). It has little impact on the company's overall production, operation and performance. |
(3) Description of the holding company and stock-jointly companies
□Applicable √ Not applicable
Nil
IX. Structured entity controlled by the Company
□Applicable √ Not applicable
X. Risks and countermeasures
(1) Risks and countermeasures
In the first half of 2024, the domestic economy rebounded as a whole, but the domestic home appliance marketdemand was weak, and the industry competition became more intense. At the same time, the global political andeconomic environment was complicated, and the business situation still faced severe challenges. In the second halfof 2024, the Company will face risks such as intensified industry competition, exchange rate fluctuation, pricefluctuation of bulk materials, trade friction and geopolitical influence.
1. Risk of intensified industry competition
The home appliance industry market in which the Company is engaged has entered the stock marketcompetition, and the growth rate of the industry scale has slowed down, and the channel fragmentation and pricecompetition have intensified. The Company will actively explore new channels such as integration, pre-installationand Tik Tok, and at the same time, it will seize the opportunities such as upgrading the structure of home appliances,and driving policy of replacing old ones with new ones to achieve growth.
2. Risk of exchange rate fluctuation
In the first half of 2024, the Company was influenced by the international situation and the exchange ratefluctuated greatly. It carefully operated the exchange from the perspective of steady operation and risk control, andwill pay close attention to exchange rate changes in the future to avoid adverse effects caused by exchange ratefluctuations.
3. Risk of price fluctuation of bulk materials
The main raw materials of the company's products are steel, copper, aluminum, plastics and chemical materials,etc. If the prices of bulk raw materials fluctuate greatly, the related costs of the company will also change accordingly,which will have a certain impact on the company's operating performance.
4. Influence of trade friction and geopolitics
The Company pays close attention to the impact of uncertain factors such as international trade friction andgeopolitics on its global business.
In view of the above risks, combined with the industry situation in the second half of the year and the shortagein the first half of the year, in the second half of 2024, the Company will seize the opportunity, turn crisis intoopportunity, and implement the business plan from the following aspects in part (II).
(2)Operation plan for second half of the year
In the second half of 2024, the Company will continue to carry out work around the business idea of "adheringto the guidance of Party building, adhering to the value orientation and comprehensively efficiency improvement,focusing on one goal, improving six capabilities, deepening internal and external coordination, strengtheningcompliance and risk control, and promoting the company's sustained and high-quality development". Under the
premise of continuous improvement in profits and losses, the Company will strive to achieve scale growth higherthan the industry average. The main work is as follows:
1. Refrigerator industry
In the domestic market, it continues to adhere to the business idea of "value-orientation and comprehensiveefficiency improvement", and faces the stock market competition, product structure upgrade and channel structurechange based on "goal-orientation and problem-orientation". In terms of product promotion, it focuses on the layoutof "fresh, thin, narrow and embedded", adheres to the product strategy of "ensuring retail, promoting qualityproducts and improving efficiency", and well ensures customer-centered product operation and user-centered brandoperation to provide consumers with unique value products; In terms of product R&D, it continues to adhere theuser-centered principle, gain insight into consumer demand and technology development trend, build a three-tierR&D system, implement the product manager responsibility system, form the competitive advantage of "excellentproducts + hot products" on the basis of refined management of product structure, and continuously improve productquality, enhance product competitiveness and create user value; In terms of channel reform, it continues toconsolidate basic channels, win retail channels, expand incremental channels and make breakthrough in emergingchannels to improve the quality and scale of channel operation; In terms of terminal marketing, it strengthensterminal marketing capacity building, enhances terminal image competitiveness, focuses on new media contentmarketing, and enhances user operation and diversion & transformation; It continues to carry out benchmarking andstrengthen the continuous improvement of internal efficiency.In the overseas market, it actively improves the product structure, adjusts the market structure, optimizes thecustomer structure, improves the efficiency internally and continuously improves the operating quality incombination with the development trend of industry demand. On the product end, it carries out product innovationin terms of air cooling, frequency conversion and energy saving, and enhances the promotion of multi-doorrefrigerators; It focuses on improving competitiveness, quality and value, deepens the construction of key resources,improves the manufacturing efficiency of middle and low-end products, and increases the refinement andmanufacturing capacity of high-end refrigerators. On the market end, it accelerates brand business, increases thedevelopment of emerging markets, and focuses on ToC promotion, training and terminal capacity building; Itincreases the proportion of big customers and enhances the support ability of big customers. It deepens efficiencyimprovement, builds CIF shipping capacity, strengthens the connection between production, marketing and supplythrough the mode of "production by cabinets", improves R&D efficiency through digital construction, and strictlycontrols overdue inventory and overdue accounts receivable by "controlling time and abnormality" to achieve asteady improvement in operating quality.
2. Air conditioning industry
In the domestic market, the Company adheres to the science and technology strategy, focuses on coretechnologies and empowers products with technology. It insists on innovation leading, and continues to deepentechnical R&D around core technologies such as frequency conversion and simulation, and has established keyprojects such as intelligent, efficient and comfortable brand-new "Winning" frequency conversion technologyplatform, preventive technology of explosion and combustion of refrigeration system, digital holographic parameter
commercial inspection technology, five-constant air conditioner and AI air conditioner to maintain itscompetitiveness in the industry. Further strengthen the dual circulation of ToC and ToB, strengthens strategiccooperation at B-end, and promotes multi-channel and diversified B-end business; At the C-end, it promotes channelco-creation and direct access to users, comprehensively covers all online and offline channels, and promotes theefficiency improvement with commercial inventory as the core and the integration of "delivery, loading, service andcollection" services.
In overseas markets, it continues to implement the core concept of "scale growth with profit and profit growthwith cash flow". It adheres to the brand priority strategy and deepens the development of the base market. It focuseson regional markets with core advantages, actively seeks growth opportunities, focuses on strengtheningadvantageous channels and opening up new markets, and is committed to in-depth cooperation with key customers.It keeps up with the market development trend and constantly introduces high-end, innovative and frequencyconversion products; It adheres to the business-oriented and customer-centered principle, and continuouslyimproves product quality and customer service capabilities to enhance customer satisfaction; It adheres to the digitalempowerment business, builds a digital factory, strengthens the integrated operation of production, supply,marketing, research and logistics planning, and continuously improves the efficiency of the Company.
3. Washing machine industry
In terms of washing machine industry products, the Company will continue to upgrade and optimize theproduct appearance, function and washing effect in the second half of 2024, and comprehensively enhance itsproduct competitiveness. As for drum products, it mainly promotes the expansion of "As Hand Washing" productseries, enhances the competitiveness of waist products, and helps drum products in the domestic market to achieverapid scale breakthrough; Its pulsator products are continuously upgraded to improve profitability; It completes thelaunch of the heat pump dryer, builds a set of washing machine and dryer products, and further improves the productline layout. As for market, in terms of domestic sales, it continues to consolidate the construction of basic channels,focuses on resources to achieve breakthrough development of e-commerce channels, and ensure the steady growthof domestic sales. In terms of export, it realizes the coordination of refrigerator washing machines in the wholeproduct line, focuses on key areas, key customers and key products, and gradually completes the layout of drumproducts at all levels to achieve sustained and rapid growth in scale.
4. Kitchen, bathroom product and home appliance industry
While stabilizing the market position of tea products, it continues to expand the market influence and furtherenhance the brand influence around single products. At the same time, it strengthens brand building and marketing,improves brand awareness and reputation, and lays a solid foundation for the sustainable development of theindustry. Guided by market demand and driven by technological innovation, it continues to increase investment inR&D and continuously introduce innovative and competitive products to meet the increasingly diversified needs ofconsumers. It continues to promote the category focus strategy, strengthen the product effect analysis, reduce thenumber of categories and SKUs, and improve operational efficiency; It improves the efficiency of inter-departmental coordination, optimizes management processes, improves the quality of employees, and helps thehigh-quality development of the industry.
5. Biomedical industry
The Company unswervingly promotes the product collaboration strategy of "diversification based onbiomedical field", focuses on the field of life sciences, promotes channel innovation and upgrading, product R&Dinnovation based on the improvement of overall operational capacity, deepens the business, and comprehensivelyimproves service capacity and management level, so as to enhance market user coverage and product market share.It always adheres to the business philosophy of "technology-founded, product-based, market-oriented and customer-centered", and continues to operate steadily around the business principles of deepening channels, innovatingproducts, optimizing quality and improving efficiency.XI. The implementation of the action plan of "Double improvement of quality and return".Whether the Company has disclosed the action plan of "Double improvement of quality and return".
□Yes ?No
Section IV Corporate GovernanceI. AGM(Annual General Meeting) and extraordinary general meeting
(1)AGM held in the period
| Meeting | Type | Participation ratio for investors | Meeting date | Disclosure date | Resolution |
| 2023 AGM | Annual General Meeting | 44.8860% | April 25,2024 | April 26,2024 | The General Meeting have approved 14 proposals in total, including “Annual Report of 2023 and Its Summary”,“Report on Works of BOD for year of 2023”, “Report on Works of BOS for year of 2023”, “Financial Statement Report for year of 2023”, “ Plans of Profit Distribution for year of 2023”, “Proposal on Changing 2024 Annual Financial Report and Internal Control Auditing Organization” found more in the “Resolution of 2023 Annual General Meeting” (No.: 2024-024) released on Juchao Website www.cninfo.com.cn |
| First Extraordinary General Meeting of 2023 | Extraordinary General Meeting | 42.7763% | June 18,2024 | June 19,2024 | The General Meeting have approved 9 proposals in total, including the Proposal on Providing Guarantee for the Company's Wholly-owned Subsidiaries, the Proposal on Amending Some Clauses of "Articles of Association", the Proposal on Amending Some Clauses of the Company's "Authorization Management System", the Proposal on Increasing the Use of the Company's Own Idle Funds to Invest in Wealth Management Products and the Proposal on Amending Some Clauses of the Company's "Rules of Procedure for the Board of Supervisors". found more in the “Resolution of 2023 First Temporary General Meeting” (No.: 2024-036) released on Juchao Website www.cninfo.com.cn |
(2) Request for extraordinary general meeting by preferred stockholders with rights to vote
□Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√ Applicable □Not applicable
| Name | Title | Types | Date | Reason |
| Wu Dinggang | Chairman | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Wu Dinggang as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders; According to the resolution of the first meeting of the 11th Board of Directors of the Company, it was agreed to elect Mr. Wu Dinggang as the chairman of the 11th Board of Directors of the Company, |
| with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | ||||
| Zhong Ming | Director | Elected | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors of the Company, it was agreed to elect Mr.Zhong Ming as a non independent director of the 11th Board of Directors of the Company, with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. |
| President | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors of the Company, it was agreed to elect Mr. Zhong Ming as the president of the 11th Board of Directors of the Company, with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | |
| Yi Suqin | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Ms. Yi Suqin as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders; |
| Cheng Ping | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Cheng Ping as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Fang Wei | Director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Fang Wei as a non-independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Mu Wen | Independent director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Ms.Mu Wen as the independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Hong Yuanjia | Independent director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr.Hong Yuanjia as the independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Cheng Wenlong | Independent director | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr.Cheng Wenlong as the independent director of the 11th Board of Directors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Qiu Jian | Supervisor | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr.Qiu Jian as the shareholder representative supervisor of the 11th Board of supervisors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Chairman of Supervisory | Elected | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Supervisors of the Company, it was agreed to elect Mr. Qiu Jin as the chairman of the 11th Board of supervisors of the Company, with a term of office of three years, The term of office is consistent with the term of office of the current Board of Supervisors. | |
| Ma Yu | Supervisor | Elected | June 18,2024 | After review and approval at the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to elect Mr. Ma Yu as the shareholder representative supervisor of the 11th Board of Supervisors of the Company, with a term of office of three years, which will take effect from the date of review and approval at the General Meeting of Shareholders. |
| Ji Ge | Staff supervisor | Elected | June 17,2024 | After democratic election by 2nd session of the 9th employee representative meeting, Ms.Ji Ge was elected as the employee supervisor of the 11th board of supervisors, with a term of office of three years, The term of office is consistent with the term of office of the current Board of Supervisors. |
| Tang Youdao | Vice president | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Mr. Tang Youdao as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. |
| Kou Huameng | Director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Vice president | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Mr. Kou Huameng as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. |
| Hu Zhaogei | Director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Vice president | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Mr. Huu Zhaogui as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | |
| Li Xia | Vice president | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Ms. Li Xia as the Company's vice president. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. |
| Secretary of the Board | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Ms. Li Xia as the Company's secretary of the board. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. | |
| Pang Haitao | CFO | Appoint | June 18,2024 | According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to appoint Mr.Pang Haitao as the Company's CFO. with a term of office from the date of review and approval by the Board of Directors of the Company to the date of expiration of his term of office in the current Board of Directors. |
| Yong Fengshan | Director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Zhao Gang | Director | Dimission | June 18,2024 | When the Board of Directors changes, he will resign at the expiration of his term of office. |
| Shao Min | Chairman of Supervisory | Dimission | June 18,2024 | When the Board of Supervisors changes, he will resign at the expiration of his term of office. |
| He Xintan | Supervisor | Dimission | June 18,2024 | When the Board of Supervisors changes, he will resign at the expiration of his term of office. |
| Huang Hong | Supervisor | Dimission | June 18,2024 | When the Board of Supervisors changes, he will resign at the expiration of his term of office. |
| Sun Hongying | Supervisor | Dimission | June 18,2024 | When the Board of Supervisors changes, he will resign at the expiration of his term of office. |
| Huang Danian | Chairman of Supervisory | Dimission | June 18,2024 | He will resign at the expiration of his term of office. |
III. Profit distribution plan and capitalizing of common reserves in the period
□Applicable √ Not applicable
There are no cash dividend, bonus and capitalizing of common reserves carried out in the semi-annualIV. Implementation of the company’s stock incentive plan, employee stock ownership plan or otheremployee incentives
□Applicable √ Not applicable
The Company has no implementation of the company’s stock incentive plan, employee stock ownership plan orother employee incentives in the period.
Section V Environmental and Social Responsibility
I. Major environmental
（1）The listed Company and its subsidiary whether belongs to the key sewage units released from environmentalprotection department
□Yes √No
Administrative penalties for environmental issues during the reporting period
| Name | Cause | Violation of the situation | Result | Impact on the production and operation of listed companies | The company's rectification measures |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
（2）.Refer to other environmental information disclosed by key pollutant discharge units
Not applicable。
（3）.Measures taken to reduce carbon emissions and their effectiveness during the reporting period
√Applicable □ Not applicable
Combined with the characteristics and special requirements of carbon emissions, the Company has set up amanagement committee for carbon peaking and carbon neutrality to set carbon reduction targets, promote theCompany's overall carbon emission work, and at the same time to help save energy and reduce carbon emission bycontinuously improving the Company's energy management system. During the reporting period, the Companyvigorously promoted and applied the advanced energy-saving equipment and technology in the industry, andimplemented energy-saving renovation projects such as depressurization operation of air compressor, renovation ofcombined control system of nitrogen generator, automatic control of steam valve, energy-saving renovation ofcontainer packed oven dryer, application research on waste heat recovery of air compressor, and application of solarstreet lamp. In addition, the Company actively upgraded its energy management system, realized interoperabilitywith production systems, further improved the refined level of energy management of the Company, and effectivelyreduced energy consumption and carbon dioxide emissions. In order to improve the use of green energy, theCompany has also purchased some green electricity, and will continue to expand the proportion of green energy inthe future. Under the guidance of the carbon peaking and carbon neutrality committee, the Company will furtherimprove the management and cooperation of the supply chain, promote suppliers and partners to jointly reducecarbon emissions, optimize logistics and transportation modes, improve the use of green vehicles, and pay attentionto the use of recyclable packaging and transshipment materials to reduce carbon emissions in the whole productionand transportation process.
（4）.Reasons for not disclosing other environmental information
Neither the Company nor its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department.The Company advocates the development concept of green environmentalprotection, strictly abides by environmental protection laws and regulations such as the Environmental ProtectionLaw of People's Republic of China, the Law of the People's Republic of China on the Prevention and Control ofWater Pollution and the Law of the People's Republic of China on the Prevention and Control of AtmosphericPollution, promotes green production, enhances energy conservation and emission reduction, and earnestly fulfillsits environmental protection responsibilities.II. Social responsibilityThe Company continues to promote win-win development with its stakeholders, earnestly fulfills its socialresponsibilities, pays close attention to the voices of all stakeholders, and actively gives back and improves, and isdetermined to become an enterprise that is respected by the society and loved by its employees. While achievingsound development, it pays attention to protecting the interests of its shareholders, employees, suppliers, customersand consumers, and actively engages in public welfare undertakings, thus promoting the harmonious developmentof the Company and the whole society.
1. Protection of the rights and interests of shareholders and creditors
The company strictly follows the provisions and requirements formulated by the Articles of Association andthe Rules of Procedure for the General Meeting of Shareholders, regulates the convening, holding and votingprocedures of the general meeting of shareholders, equally treats all shareholders, especially small and mediumshareholders equally, and ensures that all shareholders enjoy equal status and fully exercise their own rights. Underthe 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 andmanagement, financial status, etc. through annual performance briefings, Anhui service week for investors by SZSE,investor telephone hotline, e-mails, and the investor relations interactive platform of the Shenzhen Stock Exchange,and discloses information to all investors in a truthful, accurate, complete, concise and clear, and easy-to-understandmanner; further, the company attaches great importance to the shareholder return mechanism, According to theReturn Plan for Shareholders of Changhong Meiling Co., Ltd. for the Next Three Years (2024 -2026), It guidesinvestors to establish the concept of long-term investment and rational investment, and maintains the continuity andstability of the profit distribution policy. During the reporting period, combined with its own operating conditionsand other factors, the Company implemented the 2023 profit distribution plan and made cash dividends, accountingfor 41.70% of the net profit attributable to shareholders of listed companies in 2023, offered shareholders areasonable return on investment.In addition, in order to establish a variety of shareholder return mechanisms and thank investors for their long-term concern and support for the Company, during the reporting period, the Company held the "Meiling ShareholderThanksgiving Festival" to give back to all shareholders with sincerity.
2. Protection of the rights and interests of employees
In accordance with relevant laws, regulations and policies, and in light of its own actual situation, the companyhas established a relatively complete employment management system, including labor contract system, salary and
performance appraisal system, welfare management system, training management system, employee vacationmanagement system, etc..The company attaches importance to the vital interests of employees, protects thelegitimate rights and interests of employees to the maximum extent, establishes harmonious labor relations, andstrives to form a good mechanism for the company and employees to create and share together. At the same time,the company creates a people-oriented cultural atmosphere by providing various holidays, allowances, condolencesand organizing diversified employee activities, benchmarking personnel selection, carnivals, etc., and continuouslyimproves employee satisfaction.
3. Protection of the rights and interests of suppliers, customers and consumers
The company has established a relatively complete procurement management system, optimized and revisedsystem documents in a timely manner, unified information system tools, strictly controlled every link of theprocurement business, cultivated core and strategic suppliers, and established a high-end supply chain cultivationplan for component suppliers of high-end products, so as to form a synergy, cooperation and win-win situationbetween the company and its suppliers.The Company has a perfect product development process, advanced R&D system, and constantly developsproducts with leading technology. The Company attaches great importance to product quality, has strong qualitycontrol ability, reliable product performance and a refined quality management system, and has passed themanagement system certifications such as ISO9001, ISO14001 and ISO45001. The Company's testing center hasCNAS accreditation qualification, complete test items and strong testing ability, which meets the requirements ofstrict and high-level testing of products. At the same time, it has built one of the few RoHS and intelligent IoTlaboratories in the industry. The Company adheres to the user-centered principle and attaches importance to userreputation. In the domestic market, it increases its attention and support in terminal construction, user experienceand product training to increase the sales of products; In the export market, it fully recognizes the requirements oflocal laws and regulations, strictly certifies products, and fully verifies the reliability and environmental adaptabilityof products to ensure the reliability of products in the target market. Its export products have covered more than 100countries or regions. According to different types of customers, it implements classification and system managementthrough the information system, and timely feeds back the demands put forward by customers, continuouslyimproves quality services and enhances brand image; It also tracks the market performance by customer satisfactionand user net recommendation value.For the protection of consumers' rights and interests, the company has a relatively advanced closed-loopmanagement system for user service. In order to meet users' service needs, it gradually improves the functionconstruction of official channel service platforms such as 400 service hotline, brand official website, WeChat officialaccount and Zhihuijia APP, attaches importance to and strengthens the user interaction and experience of socialplatforms such as Tik Tok, Xiaohongshu, Weibo, Bilibili and Zhihu, and understands and handles users' needs andquestions in time. In view of user demand processing, it promotes the process visualization management and userevaluation system management of work order processing timeline. In addition, the company pays attention toimproving consumers' product guarantee service ability, and has created Meiling's exclusive characteristic guaranteeservice measures, and upgraded and launched the services such as unconditional return within 180 days for Meiling
M fresh refrigerator because of dissatisfaction in preservation, and unconditional return within 180 days for Meilingclean refrigerator because of dissatisfaction in disinfection and sterilization, so as to effectively meet users' needsand enhance consumer satisfaction.
Changhong household air conditioner enjoys the 10-year warranty policy of the whole unit, which effectivelymeets the needs of users and enhances consumer satisfaction.
4. Social welfare
Over the years, the company has been actively participating in social welfare undertakings and various socialwelfare activities. The Company actively carries out actions such as helping employees with serious illness ordifficulties, advocating voluntary donations from employees, paying attention to occupational disease preventionand control, and organizing safety education and training. During the reporting period, the Company took theinitiative to assume social responsibilities, rushed to the flood-stricken areas in Xixian County, Huangshan, andprovided free testing and cleaning services for home appliances. The Party Committee of the Company activelyparticipated in the third party building project of Micro-philanthropy venture capital in the Jinxiu Community SocialOrganization Incubation Park in Hefei Economic Development Zone. During the reporting period, it organized sixactivities, including popular science popularization experiment, safety education and psychological salon, toenhance the happiness of the community and family. The Company also helped many primary and secondary schoolsin Hefei to carry out 26 study tours, gave full play to the advantages of national intelligent manufacturingdemonstration enterprises, set up labor practice classes on the production line, received nearly 3,000 primary andsecondary school students, and sowed the "made in China" seeds in the hearts of every teenager through interestingexperiment classes, creative labor classes and brand history classes.
Section VI Important Events
I. Commitments that the actual controller, shareholders, related party, the buyer and the company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
The Company has no commitments that the actual controller, shareholders, related party, the buyer and the companyhave fulfilled during the reporting period and have not yet fulfilled by the end of reporting periodII. 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.III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPAWhether the semi-annual financial report had been audited
□Yes √ No
The semi-annual report was not auditedV. Explanation on “non Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable √ Not applicable
VI. Explanation from the Board for “non Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting periodVIII. Lawsuit(i) Major Litigation and Arbitration Matters
√ Applicable □Not applicable
| Basic situation of litigation(arbitration) | Amount involved | Whether to | Litigation(arbitra | Litigation(arbitration)trial | Implementation of | Disclosure | Disclosure |
| (Ten thousand yuan) | form estimated liabilities | tion)progress | results and impact | litigation(arbitration)judgments | date | index | |
| Zhiyijia, an affiliated enterprise of the company, signed a sales contract with the defendant, Tianjin Pengsheng Logistics Co., Ltd. (hereinafter referred to as "Tianjin Pengsheng"). After the contract was signed, Zhiyijia, the plaintiff, supplied the goods to Tianjin Pengsheng, the defendant as agreed, but Tianjin Pengsheng, the defendant, failed to fulfill the payment obligation to Zhiyijia as agreed. As of November 30, 2022, according to statistics, Tianjin Pengsheng, the defendant, still owed Zhiyijia a payment of RMB 96,174,308.42. Based on this, Zhiyijia, the plaintiff brought a lawsuit against Tianjin Pengsheng, the defendant to the People's Court of Mianyang High-tech Industrial Development Zone, and requested the court to order Tianjin Pengsheng to immediately pay the plaintiff RMB 96,174,308.42 and the corresponding liquidated damages for overdue payment, and bear the related litigation costs and property preservation guarantee fees. | 9,617.43 | No | The judgment of the first instance has come into effect. | The court ordered the defendant Tianjin Pengsheng to immediately pay the plaintiff RMB 96,174,308.42 and the corresponding liquidated damages for overdue payment, and bear the related litigation costs and property preservation guarantee fees. | Under execution | December 24,2022, October 20,2023 | (www.cninfo.com.cn)(2022-101and 2023-057） |
| Meiling Group, a subsidiary of the Company, signed a sales contract with Gome Electrical Appliances Co., Ltd. (hereinafter referred to as "Gome"). After the contract was signed, Meiling Group, the plaintiff, fulfilled the supply obligation according to the contract, while Gome and its affiliated companies, the defendant, failed to fulfill the payment obligation to Meiling Group according to the contract. According to statistics, the defendant Gome and its affiliated companies owe Meiling Group RMB 9,841,267.21 for purchase payment and RMB 1,018,820.55 for liquidated damages for overdue payment, totaling RMB 10,860,087.76. Based on this, the plaintiff Meiling Group filed a lawsuit against the defendant Gome and its affiliated companies in the People's Court of Hefei High-tech Industry Development Zone. It requested the court to order the defendant Gome to immediately pay the plaintiff Meiling Group the purchase payment and the liquidated damages for overdue payment, totaling RMB | 1,086.01 | No | The case has been accepted and is in the formal trial stage or pre-litigation mediation stage. | No trial result yet | No trial result yet | October20,2023 | (www.cninfo.com.cn)( 2023-058） |
10,860,087.76.
Notes: The Company's shareholding in Zhiyijia is 50%, and the products are sold through Zhiyijia's smart tradingplatform. The customers, channels and sales transactions corresponding to the products sold are controlled anddocked by the company itself, and the external transaction object is Zhiyijia, and related transactions are formedbetween the Company and Zhiyijia. In terms of payment settlement, the Company and Zhiyijia follow the principleof "external customer account period is Zhiyijia's account period to the Company, and external customer paymentis Zhiyijia's payment to the Company, which is not allowed to be remained or transited at Zhiyijia". The amountsinvolved in this case are all accounts receivable and liquidated damages for overdue payment caused by theCompany's sales through the smart trading platform of Zhiyijia, but the subject of the agreement is Zhiyijia, andthis lawsuit will be filed by Zhiyijia. The Company and its affiliated enterprise Zhiyijia will claim their legitimaterights and interests according to law and actively take relevant measures to safeguard the legitimate rights andinterests of the Company, Zhiyijia and the investors.(ii) Other litigation matters
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
During the reporting period, the Company had no Penalty and rectification.X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Major related party transaction(i) Related party transaction with routine operation concerned
√ Applicable □ Not applicable
| Serial | Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price (in 10 thousand Yuan) | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions (%) | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or Not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
| 1 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Commodity purchased | Pressure regulator, integrated circuit, transistors, steel plate, plastic parts, etc | Marketing price | 6,217.87 | 6,217.87 | 0.45% | 23,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 2 | Sichuan Changhong Electric Holdings Group Co., Ltd. | Controlling shareholder | Commodity purchased | Steel plate and plastic particles, etc | Marketing price | 116,368.5 | 116,368.5 | 8.51% | 280,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 3 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Compressor, Energy | Marketing price | 29,660.37 | 29,660.37 | 2.17% | 80,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 4 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Components, plastic parts and lining accessories etc. | Marketing price | 59,341.49 | 59,341.49 | 4.34% | 130,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 5 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Base plate assembly, black plate, bracket etc. | Marketing price | 40,976.08 | 40,976.08 | 3.00% | 65,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.: 2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 6 | Sichuan Changhong Package Printing Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Packing boxes, foam, fixed support block etc. | Marketing price | 8,727.99 | 8,727.99 | 0.64% | 20,000.00 | N | Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.: 2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 7 | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Printed board machine insertion machine paste assembly | Marketing price | 1,976.06 | 1,976.06 | 0.14% | 4,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 8 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Foam and carton | Marketing price | 542.44 | 542.44 | 0.04% | 6,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 9 | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Outside cover parts | Marketing price | 0.49 | 0.49 | 0.00% | 5,000.00 | N | Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 10 | Sichuan Hongwei Technology Co., Ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Electric toothbrush, body fat weighing, smart watches, etc | Marketing price | 1.42 | 1.42 | 0.00% | 6,000.00 | N | Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 11 | Hefei Changhong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Energy | Marketing price | 403.79 | 403.79 | 0.03% | 6,000.00 | N | Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 12 | Sichuan Changhong New | Other enterprise control | Commodity purchase | Batteries | Marketing price | 41.58 | 41.58 | 0.00% | 5,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March | Juchao Website（www.cninfo.com.cn）Announcement No.:2023- |
| Energy Technology Co., Ltd. | under the same controlling shareholder and ultimate controller | d | 30,2024,April 26,2024 | 066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. | ||||||||||
| 13 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Air conditioner, LCD TV | Marketing price | 160.02 | 160.02 | 0.01% | 6,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 14 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Television | Marketing price | 432.77 | 432.77 | 0.03% | 16,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 15 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | printed board | Marketing price | 454.57 | 454.57 | 0.03% | 6,000.00 | N | Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 16 | Sichuan Changhong Electronic | Other enterprise control under the same controlling | Commodity purchased | Remote controls, switching transformers, printed boards, electronic components, etc. | Marketing price | 1,485.08 | 1,485.08 | 0.11% | 5,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| Products Co., Ltd. | shareholder and ultimate controller | |||||||||||||
| 17 | Sichuan Ailian Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Internet access modules, electronic components, etc | Marketing price | 777.61 | 777.61 | 0.06% | 3,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 18 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board | Marketing price | 7,397.51 | 7,397.51 | 0.54% | 30,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 19 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Commodity purchased | Inverter integrated board ，Electronic control components | Marketing price | 1,458.92 | 1,458.92 | 0.11% | 8,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 20 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Accept labor service | Shuttle transportation fee, training fee | Marketing price | 66.74 | 66.74 | 0.07% | 280,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 21 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Accept labor service | Software usage fee, information consultation fee, inspection and certification fee | Marketing price | 189.23 | 189.23 | 0.21% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 22 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Transportation costs, storage and handling charges, freight and miscellaneous charges etc. | Marketing price | 45,670.31 | 45,670.31 | 50.08% | 75,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 23 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | commission processing fee，Change the mold service | Marketing price | 2,237.63 | 2,237.63 | 2.45% | 5,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 24 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Three packages, equipment repair, miscellaneous fees, installation fee etc. | Marketing price | 19,691.13 | 19,691.13 | 21.59% | 51,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 25 | Sichuan Hongxin Software Co., Ltd. | Other enterprise control under the same controlling | Accept labor service | Software usage fee, service supporting fee and information | Marketing price | 114.75 | 114.75 | 0.13% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024- |
| shareholder and ultimate controller | service fee | 014,2024-024. | ||||||||||||
| 26 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Service support fee, network service fee etc. | Marketing price | 16.97 | 16.97 | 0.02% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 27 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meals, property management fees etc. | Marketing price | 344.91 | 344.91 | 0.38% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 28 | Sichuan Changhong International Hotel Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Meetings fee, accommodation，Travel service | Marketing price | 88.38 | 88.38 | 0.10% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 29 | Sichuan Changhong Property Services Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | property management fees | Marketing price | 5.83 | 5.83 | 0.01% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 30 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Design service fee and platform usage fee | Marketing price | 7.71 | 7.71 | 0.01% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 31 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Network maintenance services | Marketing price | 0.07 | 0.07 | 0.00% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 32 | Mianyang High-tech Zone Hongfu Technology Co., Ltd. | Companies where the supervisor of the controlling shareholder serves as a director | Accept labor service | Traffic services | Marketing price | 68.24 | 68.24 | 0.07% | 120.00 | N | Spot exchange | - | ||
| 33 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | commission processing fee | Marketing price | 125.35 | 125.35 | 0.14% | 5,000.00 | N | Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 34 | Sichuan Changhong Gerun Environme | Other enterprise control under the | Accept labor service | Environmental protection service | Marketing price | 5.41 | 5.41 | 0.01% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023- |
| ntal protection Technology Co., Ltd. | same controlling shareholder and ultimate controller | 26,2024 | 080,2024-007,2024-008,2024-014,2024-024. | |||||||||||
| 35 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Labor serves | Marketing price | 3.41 | 3.41 | 0.00% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 36 | Sichuan Aichuang Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Warehouse management service | Marketing price | -6 | -6 | -0.01% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 37 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Accept labor service | Technology development service fee, instrument repair fee, inspection and certification fee, etc. | Marketing price | 691.92 | 691.92 | 0.76% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 38 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Service | Marketing price | 17.81 | 17.81 | 0.02% | 5,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 39 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Sales of goods | Air conditioner, Kitchen and bathroom, small appliances | Marketing price | 49.79 | 49.79 | 0.00% | 1,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 40 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner, Kitchen and bathroom, small appliances | Marketing price | 84.74 | 84.74 | 0.01% | 3,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 41 | Sichuan Changhong Mold Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Plastic pressure parts | Marketing price | 38.38 | 38.38 | 0.00% | 3,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 42 | Sichuan Zhiyijia Network TechNlogy Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | washing machine, Refrigerator, freezer, Air conditioner, small appliances | Marketing price | 381,470.5 | 381,470.5 | 25.69% | 880,000.00 | N | Spot exchange, Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 43 | Sichuan Changhong Device | Other enterprise control under the same controlling | Sales of goods | Air conditioner, Energy | Marketing price | 80.9 | 80.9 | 0.01% | 3,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024- |
| Technology Co., Ltd. | shareholder and ultimate controller | 014,2024-024. | ||||||||||||
| 44 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 77.98 | 77.98 | 0.01% | 3,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 45 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioners, inverter integrated boards, components etc. | Marketing price | 217.07 | 217.07 | 0.01% | 3,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 46 | Sichuan Changhong Real Estate Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom, small home appliances | Marketing price | 1.44 | 1.44 | 0.00% | 3,000.00 | N | Spot exchange | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 47 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 7.54 | 7.54 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 48 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 19.23 | 19.23 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 49 | Sichuan Changhong Source Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Small home appliances | Marketing price | 0.3 | 0.3 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 50 | Sichuan Ailian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Electric device | Marketing price | 4.95 | 4.95 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 51 | Sichuan Changhong Jiahua Information Product Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air-conditioner | Marketing price | 43.24 | 43.24 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 52 | Sichuan Changhong | Other enterprise control | Sales of goods | Small home appliances | Marketing price | 0.11 | 0.11 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March | Juchao Website（www.cninfo.com.cn）Announcement No.:2023- |
| International Hotel Co., Ltd. | under the same controlling shareholder and ultimate controller | 30,2024,April 26,2024 | 066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. | |||||||||||
| 53 | CHANGHONG(HK)TRADINGLIMITED | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner and part | Marketing price | 23,462.8 | 23,462.8 | 1.58% | 140,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 54 | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator, freezers ,washing machine and part | Marketing price | 13,731.67 | 13,731.67 | 0.92% | 140,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 55 | Orion.PDP.Co.,ltd | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator | Marketing price | 2,058.89 | 2,058.89 | 0.14% | 6,500.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 56 | ChanghongEuropeElectrics.r.o | Other enterprise control under the same controlling | Sales of goods | Refrigerator | Marketing price | 3,386.81 | 3,386.81 | 0.23% | 12,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| shareholder and ultimate controller | ||||||||||||||
| 57 | Changhong International Holdings (Hong Kong) Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Refrigerator, freezers, Air conditioner, kitchen utensils | Marketing price | 7,047.95 | 7,047.95 | 0.47% | 30,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 58 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Kitchen and bathroom, small home appliances | Marketing price | 0.53 | 0.53 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 59 | MianyangHuafeng Hulian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Sales of goods | Air conditioner | Marketing price | 41.59 | 41.59 | 0.00% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 60 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 82.82 | 82.82 | 4.08% | 10,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 61 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 14.1 | 14.1 | 0.69% | 3,000.00 | N | Bank acceptance | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 62 | Sichuan Aichuang Science & Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee, Labor cost | Marketing price | -9.71 | -9.71 | -0.48% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 63 | Sichuan Huafeng Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | -1.12 | -1.12 | -0.06% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 64 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Service fee | Marketing price | 7.02 | 7.02 | 0.35% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 65 | Sichuan Changhong Electric | Controlling shareholder | Providing services | Labor cost | Marketing price | -5.25 | -5.25 | -0.26% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March | Juchao Website（www.cninfo.com.cn）Announcement No.:2023- |
| Co., Ltd. | 30,2024,April 26,2024 | 066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. | ||||||||||||
| 66 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 54.5 | 54.5 | 2.69% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 67 | Sichuan Changhong Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Repair Service | Marketing price | 17.35 | 17.35 | 0.85% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 68 | Mianyang Huafeng Hulian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Repair Service | Marketing price | 395.44 | 395.44 | 19.48% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 69 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 27.65 | 27.65 | 1.36% | 200.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 70 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 1.14 | 1.14 | 0.06% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 71 | Sichuan Ailian Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Warehousing services | Marketing price | 0.16 | 0.16 | 0.01% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 72 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 86.77 | 86.77 | 4.28% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 73 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 5.09 | 5.09 | 0.25% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 74 | Sichuan Changhong | Other enterprise control | Providing services | Maintenance fees | Marketing price | 2.63 | 2.63 | 0.13% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March | Juchao Website（www.cninfo.com.cn）Announcement No.:2023- |
| International Hotel Co., Ltd. | under the same controlling shareholder and ultimate controller | 30,2024,April 26,2024 | 066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. | |||||||||||
| 75 | Sichuan Changhong Xinwang Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | -10.14 | -10.14 | -0.50% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 76 | Sichuan Changhong Electronic Products Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 0.09 | 0.09 | 0.00% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 77 | Sichuan Qiruike Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Labor cost | Marketing price | 0.14 | 0.14 | 0.01% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 78 | Yuanxin Finance Lease Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Providing services | Consultation service | Marketing price | 48.94 | 48.94 | 2.41% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| controller | ||||||||||||||
| 79 | Sichuan Changhong Property Service Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Technical service fee | Marketing price | 8.58 | 8.58 | 0.42% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 80 | Sichuan Changhong Jiechuang Lithium technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Providing services | Installation service | Marketing price | 1.09 | 1.09 | 0.05% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 81 | Sichuan Aoku Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment, | Marketing price | 0.59 | 0.59 | 0.03% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 82 | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment, office | Marketing price | 12.67 | 12.67 | 0.57% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 83 | Sichuan Qiruike | Other enterprise | Rent to the | Lease of factory | Marketing price | 4.73 | 4.73 | 0.21% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December | Juchao Website（www.cninfo.com.cn） |
| Technology Co., Ltd. | control under the same controlling shareholder and ultimate controller | related party | 22,2023, March 30,2024,April 26,2024 | Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. | ||||||||||
| 84 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Rent to the related party | Lease of factory, equipment | Marketing price | 42.94 | 42.94 | 1.92% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 85 | Sichuan Changhong Jijia Fine Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment, warehouses,plants,equipment | Marketing price | 227.04 | 227.04 | 10.15% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 86 | Sichuan Changhong Minsheng Logistics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Serviced apartment, office, etc. | Marketing price | 14.61 | 14.61 | 0.65% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 87 | Sichuan Changhong Mold Plastic Tech. Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate | Rent to the related party | Serviced apartment, warehouse, workshop, equipment and living quarters | Marketing price | 437.05 | 437.05 | 19.54% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| controller | ||||||||||||||
| 88 | Sichuan Changhong Device Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Lease of factory | Marketing price | 107.36 | 107.36 | 4.80% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 89 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Rent to the related party | Rental apartment | Marketing price | 9.41 | 9.41 | 0.42% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 90 | Chengdu Changhong Electronic Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Leasing office | Marketing price | 32.92 | 32.92 | 1.47% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 91 | Guangdong Changhong Electronics Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory, plant | Marketing price | 8 | 8 | 0.36% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 92 | Hefei Changhon | Other enterprise | Leasing from | lease of plant | Marketing price | 113.02 | 113.02 | 5.05% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December | Juchao Website（www.cninfo.com.cn） |
| g Industrial Co., Ltd. | control under the same controlling shareholder and ultimate controller | related party | 22,2023, March 30,2024,April 26,2024 | Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. | ||||||||||
| 93 | Sichuan Jiahong Industrial Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory | Marketing price | 28.73 | 28.73 | 1.28% | 5,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 94 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Leasing from related party | Lease of laboratory and workshop | Marketing price | 198.34 | 198.34 | 8.87% | 4,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 95 | Sichuan Changhong Electronics Holding Group Co., Ltd. | Controlling shareholder and ultimate controller | Leasing from related party | Lease shop | Marketing price | 9.76 | 9.76 | 0.44% | 280,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 96 | Changhong Huayi Compressor Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Leasing from related party | Lease of staff dormitory | Marketing price | 5.7 | 5.7 | 0.25% | 200.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 97 | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase and construction of fixed assets | assembly line body | Marketing price | 35.24 | 35.24 | 0.17% | 500.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 98 | Sichuan Changhong Electric Co., Ltd. | Controlling shareholder | Purchase and construction of fixed assets | Relocation and renovation equipment | Marketing price | 61.07 | 61.07 | 0.29% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 99 | Sichuan Zhiyijia Network Technology Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | TV | Marketing price | 7.88 | 7.88 | 0.04% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 100 | 081 Electronic Group Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Purchase of fixed assets | Finished warehouse | Marketing price | 18.46 | 18.46 | 0.09% | 3,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024-014,2024-024. |
| 101 | Yuanxin Financial Lease Co., Ltd. | Other enterprise control under the same controlling | Financing business | Financing business | Marketing price | 56,792.49 | 56,792.49 | 80,000.00 | N | Spot exchange, | - | December 5,2023,December 22,2023, March 30,2024,April 26,2024 | Juchao Website（www.cninfo.com.cn）Announcement No.:2023-066,2023-067,2023-068,2023-080,2024-007,2024-008,2024- |
| shareholder and ultimate controller | 014,2024-024. | |||||||||||
| Total | -- | -- | 836,486.07 | -- | 1,982,320 | -- | -- | -- | -- | -- | ||
| Detail of sales return with major amount involved | Not applicable | |||||||||||
| Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period (if applicable) | 1 It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and power from Sichuan Changhong and its subsidiary by the Company for year of 2024 was 2,690 million yuan at most (tax-excluded), actually 1,207.1958 million yuan occurred in reporting period. | |||||||||||
| 2. It is estimated that the related transaction amount resulted by purchasing compressors, Sell goods, accept or provide services with Changhong Huayi and its subsidiary by the Company for year of 2024 was 802 million yuan at most (tax-excluded), actually 296.9372 million yuan occurred in reporting period. | ||||||||||||
| 3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2024 was 30 million yuan at most (tax-excluded), actually 874,100 yuan occurred in reporting period. | ||||||||||||
| 4. It is estimated that the related transaction amount resulted by selling goods and providing fuel and power to Sichuan Changhong and its subsidiary by the Company for year of 2024 was 10,660 million yuan at most (tax-excluded), actually 4,297.0111 million yuan occurred in reporting period. | ||||||||||||
| 5. It is estimated that the related transaction amount resulted by leasing business to Sichuan Changhong and its subsidiary by the Company for year of 2024 was 40 million yuan at most (tax-excluded), actually 12.0336 million yuan occurred in reporting period. | ||||||||||||
| 6. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistics Co., Ltd. by the Company for year of 2024 was 750 million yuan at most (tax-excluded), actually 456.7031 million yuan occurred in reporting period. | ||||||||||||
| 7. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain Co., Ltd. by the Company for year of 2024 was 510 million yuan at most actually 196.9113 million yuan occurred in reporting period. | ||||||||||||
| 8. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2024 was 180 million yuan at most (tax-excluded), actually 30.1027 million yuan occurred in reporting period. | ||||||||||||
| 9. It is estimated that the related transaction amount resulted by selling goods and leasing business from Sichuan Changhong Electronics Holding Group Co., Ltd and its subsidiary by the Company for year of 2024 was 95 million yuan at most (tax-excluded), actually 25.3292 million yuan occurred in reporting period | ||||||||||||
| 10. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment etc. from Sichuan Changhong Electronics Holding Group Co., Ltd. and its subsidiary by the Company for year of 2024 was 3,265 million yuan at most (tax-excluded), actually 1,273.1602 million yuan occurred in reporting period. | ||||||||||||
| 11. It is estimated that the related transaction amount resulted by received the financing lease, commercial factoring and bill financing from Yuanxin Financial Lease Co., Ltd was 800 million yuan at most, actually 567.9249 million yuan occurred in reporting period. | ||||||||||||
| Reasons for major differences between trading price and market reference price (if applicable) | Not applicable |
Note: According to the Shenzhen Stock Exchange's "Listing Rules" and the company's "Authorization Management System" and other relevant regulations, relatedparty transactions between the company and related parties with an amount less than 3 million yuan (including 3 million yuan) shall be implemented with the approvalof the company's president. Therefore, during the reporting period, the related-party transactions between the company and its related party Mianyang High-tech ZoneHongfu Technology Co., Ltd. were within 3 million yuan , and has been approved by the company's president.
(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
There are no related transactions by joint foreign investment in the 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
| Related party | Relationship | Maximum daily deposit limit (In 10 thousand yuan) | Deposit interest rate range | Opening balance (In 10 thousand yuan) | Amount for the Period | Ending Balance (In 10 thousand yuan) | |
| Total deposit amount for the Period (In 10 thousand yuan) | The total amount withdrawn in the Period (In 10 thousand yuan) | ||||||
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | 450,000.00 | 0.42%-3.3% | 432,748.97 | 2,322,987.15 | 2,358,403.52 | 397,332.59 |
Credit extension or other financial business
| Related party | Relationship | Type of business | Total amount ( in 10 thousand yuan) | Actual amount ( in 10 thousand yuan) |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Other financial services - note issuance | 300,000.00 | 78,625.86 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprise control under the same controlling shareholder and ultimate controller | Other financial services - note discounting | 300,000.00 | 41,515.60 |
| Sichuan Changhong Group Finance Co., Ltd. | Other enterprises controlled by the same controlling shareholder and ultimate controller | Other financial services - Guarantee issued | 100,000.00 | 130.72 |
Note 1: As of June 30,2024, registered capital of Changhong Finance Company is 2,693,938,365.84 yuan. TheCompany and Changhong Huayi holds 14.96% equity of Chonghong Finance Company respectively, andcontrolling shareholder of the Company -Sichuan Changhong Electric Co., Ltd and its controlling shareholderSichuan Changhong Electronics Holding Group Co., Ltd holds 35.04% equity of Changhong Finance Companyrespectively.Note 2: After deliberated and approved by the 35th session of 9
th BOD and 2
thextraordinary shareholders generalmeeting of 2020 held on 16 October 2023 and 3 November , it is agreed to continue the financial servicescooperation between the Company and Changhong Finance Company and renew the “Financial Service Agreement”for a period of three years. Changhong Finance Company will provides a series of financial services such as depositand loans within scope of operation according to the requirements of Company and its subsidiaries(ExcludingZhongke Meiling 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
On March 28,2024 and April 25, 2024, it was reviewed and approved by the 42nd meeting of the Tenth Boardof Directors and the 30th meeting of the Tenth Board of Supervisors, and it was agreed that the amount of dailyrelated transactions between the Company and its subsidiaries and Changhong Group and its subsidiaries onpurchase of commodities and raw materials in 2024 should not exceed RMB 1,138. million (excluding tax); Afterthis increase estimation, the Company and its subsidiaries expect that the total amount of daily related-partytransactions with Changhong Group, such as in purchasing goods, accepting labor services and renting, will notexceed RMB 2,938 million (excluding tax) in 2024.Related searches for disclosure website of interim report with major related transaction concerned
| Interim report | Disclosure date | Website for disclosure |
| Resolution Notice of the 42nd session of 10thBOD (2024-007) Resolution Notice of the 30th session of 10thBOS (2024-008) Announcement on Increasing the Daily Related Party Transactions in 2024（2024-014） Announcement of the Resolution of the general meeting of 2023 (2024-024) | March 30,2024, April 26,2024 | www.cninfo.com.cn |
XII. Significant contract and implementations(i) Entrust, contract and leasing
1. Entrust
□Applicable √ Not applicable
No entrust in Period.
2. Contract
□Applicable √ Not applicable
No contract in Period.
3. Leasing
√Applicable □ Not applicable
Lease situation descriptionThe details of the company's operating leases can be found in the notes to the financial statements, including"investment real estate", "fixed assets", "right of use assets", "related party leasing", and "related party leasing".Projects that bring profits or losses to the company exceeding 10% of the total profit for the reporting period
□ Applicable √ Not applicable
During the reporting period, there were no leasing projects that resulted in a profit or loss for the companyexceeding 10% of the total profit for the reporting period.(ii) Major guarantee
√ Applicable □ Not applicable
In 10 thousand yuan
| Particulars about the external guarantee of the Company and subsidiaries (Barring the guarantee for subsidiaries) | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related 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 ( A3) | 0 | Total actual balance of external guarantee at the end of report period (A4) | 0 | |||||||
| Guarantee between the Company and the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Zhongshan Changhong Electric Co., Ltd. | Announcement No.: 2023-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively. | 140,000.00 | October 11,2022 | 15,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| Announcement No.: 2022-087, 2022-088, 2022-091 and 2022-100 released on 7 December 2022 and 23 December 2022 respectively. | 150,000.00 | April 7,2023 | 6,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||
| April 24,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| June 8,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| June 27,2023 | 7,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| July 4,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| July 10,2023 | 20,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| July 28,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| August 29,2023 | 15,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| November 2,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| Announcember No.: 2023-066,2023-067,2023-070 and 2023-080 released on December 5 2023 andDecember 22, 2023 | 130,000.00 | - | - | - | - | - | - | - | ||
| Changhong MeilingRidian Technology Co., Ltd. | Announcement No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively. | 16,000.00 | December 8,2022 | 3,500.00 | Joint liability guaranty | Yes | 11.2 months | Yes | No | |
| Announcement No.: 2022-087, 2022-088, 2022-091 and 2022-100 released on 7 December 2022 and 23 December 2022 respectively. | 16,000.00 | ULY 10,2023 | 4,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||
| Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 14,500.00 | March 19,2024 | 3,500.00 | Joint liability guaranty | Yes | 10.7 months | No | No | ||
| ZhongkeMeiling Cryogenic Technology Co., Ltd. | Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 10,000.00 | - | - | - | - | - | - | - |
| Sichuan Changhong Air-conditioner Co., Ltd. | Announcement No.: 2022-087, 2022-088, 2022-091 and 2022-100 released on 7 December 2022 and 23 December 2022 respectively. | 250,000.00 | January 17,2023 | 10,000.00 | Joint liability guaranty | Yes | 9 months | Yes | No | |
| January 17,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| February 27,2023 | 16,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| March 16,2023 | 30,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| March 24,2023 | 60,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| April 14,2023 | 12,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| July 5,2023 | 1,500.00 | Joint liability guaranty | Yes | 5.4 months | Yes | No | ||||
| Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 262,000.00 | - | - | - | - | - | - | - | ||
| Announcement No.: 2024-020, 2024-021, 2024-023 and 2024-036 released on 20 April 2024 and 19 June 2024 respectively. | 60,000.00 | - | - | - | - | - | - | - | ||
| Jiangxi Meiling Electric Appliance Co., Ltd. | Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 15,000.00 | - | - | - | - | - | - | - | |
| Hefei Meiling Nonferrous Metal Products Co., Ltd. | Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 | 3,000.00 | - | - | - | - | - | - | - |
| December 2023 respectively. | ||||||||||
| Hefei Meiling Group Holdings Limited | Announcement No.: 2022-087, 2022-088, 2022-091 and 2022-100 released on 7 December 2022 and 23 December 2022 respectively. | 60,000.00 | May 11,2023 | 4,500.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| July 12,2023 | 8,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 25,000.00 | - | - | - | - | - | - | - | ||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Announcement No.: 2021-091, 2021-092, 2021-096 and 2021-109 released on 7 December 2021 and 24 December 2021 respectively. | 35,000.00 | November 21,2022 | 5,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | |
| Announcement No.: 2022-087, 2022-088, 2022-091 and 2022-100 released on 7 December 2022 and 23 December 2022 respectively. | 35,000.00 | March 22,2023 | 8,000.00 | Joint liability guaranty | Yes | 11 months | Yes | No | ||
| April 24,2023 | 2,000.00 | Joint liability guaranty | Yes | 1 year | Yes | No | ||||
| May 4,2023 | 5,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| October 19,2023 | 2,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| December 1,2023 | 10,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| December 15,2023 | 4,000.00 | Joint liability guaranty | Yes | 5.7 months | No | No | ||||
| Announcement No.: 2023-040, 2023-041, 2023-043 and 2023-065 released on 18 August 2023 and 4 November 2023 respectively. | 8,000.00 | - | - | - | - | - | - | - |
| Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 50,000.00 | March 6,2024 | 5,000.00 | Joint liability guaranty | Yes | 8.4 months | No | No | ||
| March 26,2024 | 8,000.00 | Joint liability guaranty | Yes | 1 year | No | No | ||||
| Total amount of approving guarantee for subsidiaries in report period (B1) | 60,000.00 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 310,000.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 1,088,500.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 161,500.00 | |||||||
| Guarantee of the subsidiaries for the subsidiaries | ||||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter guarantee (if applicable) | Guarantee term | Complete implementation or not | Guarantee for related party |
| Anhui Tuoxing Technology Co., Ltd. | Announcement No.: 2022-087, 2022-088, 2022-091 and 2022-100 released on 7 December 2022 and 23 December 2022 respectively. | 8,000.00 | June 20,2023 | 1,000.00 | Joint liability guaranty | 1 year | No | No | ||
| August 15,2023 | 400.00 | Joint liability guaranty | 1 year | No | No | |||||
| October 25,2023 | 1,000.00 | Joint liability guaranty | 1 year | No | No | |||||
| Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 5,000.00 | - | - | - | - | - | - | - | ||
| Anhui Ling'an Medical Equipment Co., Ltd. | Announcement No.: 2022-087, 2022-088, 2022-091 and 2022-100 released on 7 December 2022 and 23 December 2022 respectively. | 12,000.00 | August 25,2023 | 1,000.00 | Joint liability guaranty | 1 year | No | No | ||
| October 20, | 1,000.00 | Joint liability guaranty | 1 year | No | No | |||||
| Announcement No.: 2023-066, 2023-067, 2023-070 and 2023-080 released on 5 December 2023 and 22 December 2023 respectively. | 10,000.00 | - | - | - | - | - | - | - | ||
| Total amount of approving guarantee for subsidiaries in report period (C1) | 0 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 4,400.00 | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 35,000.00 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 4,400.00 | |||||||
| Total amount of guarantee of the Company (total of three above mentioned guarantee) | ||||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 60,000.00 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 314,400.000 | |||||||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 1,123,500.00 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 165,900.00 | |||||||
| Ratio of actual guarantee (A4+B4+C4) in net assets of the Company | 27.96% | |||||||||
| 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) | 154,000 | |||||||||
| Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0 | |||||||||
| Total amount of the aforesaid three guarantees (D+E+F) | 154,000 | |||||||||
| Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | N/A | |||||||||
| Explanations on external guarantee against regulated procedures (if applicable) | N/A | |||||||||
The above-mentioned guarantee objects are the wholly-owned and holding subsidiaries of the Company, and these wholly-owned and holding subsidiaries are innormal production and operation, there are no overdue loans, and the guarantee risks are controllable.
During the reporting period, there were no external guarantees for the Company and its subsidiaries, but there were guarantees from the Company to its subsidiaries,or from such subsidiaries to their subsidiaries.
By the end of the reporting period, the total approved amount of the Company's guarantee provided to its subsidiaries and the guarantee provided by such
subsidiaries to their subsidiaries was RMB11235 million, the actual amount was RMB3144 million, and the actual guarantee balance was RMB 1,659 million,accounting for 27.96% of the Company's latest net assets.Explanation on guarantee with composite way: Not applicable(iii) Trust financing
√ Applicable □ Not applicable
In 10 thousand yuan
| Type | Capital resources | Amount for entrust | Undue balance | Overdue amount | Impairment amount for overdue financial management |
| Bank financing products | Idle own funds | 183,000 | 83,000 | 0 | 0 |
| Total | 183,000 | 83,000 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
□ Applicable √ Not applicable
During the reporting period, the bank wealth management products with high safety, good liquidity, low risk and stability purchased by the Companywithin one year are as follows:
In 10 thousand yuan
| Trustee institution (or name of trustee) | Trustee type | Product type | Amount | Source of funds | Start date | Expiry date | Capital investment purpose | Criteria for fixing reward | Reference annual rate of return | Anticipated income (if applicable) | Actual gains/losses in period | Actual collected gains/losses in period | Amount of reserve for devaluation of withdrawing in the year(if applicable) | Whether approved by legal procedure (Y/N) | Whether has entrust finance plan in the future | Summary of the items and related query index (if applicable) |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 30,000.00 | Idle own funds | January 16,2024 | April16,2024 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. | Agreement | 2.60% | Not applicable | 183.96 | 183.96 | N/A | Yes | Not applicable | (www.cninfo.com.cn)(2024-001) |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | January 18,,2024 | April18,2024 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same | Agreement | 2.60% | Not applicable | 32.5 | 32.5 | N/A | Yes | Not applicable | （www.cninfo.com.cn)(2024-002) |
| time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions and the interest of bank deposits jointly constitutes the income of structured deposit products. | ||||||||||||||||
| Zhongshan branch of Bank of Communications Co., Ltd | Bank | Principal-guaranteed with floating income | 3,000.00 | Idle own funds | March29,2024 | May 31,2024 | Bank of Communications operates the funds raised by structured deposit products in a unified manner and manages them in accordance with the principle of separating basic deposits from derivative transactions. The raised principal will be included in the internal fund of Bank of Communications for unified operation and management, and | Agreement | 2.35% | Not applicable | 12.17 | 12.17 | N/A | Yes | Not applicable | (www.cninfo.com.cn) (2024-017） |
| 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 | ||||||||||||||||
| Industrial Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 15,000.00 | Idle own funds | May 27,2024 | August 27,2024 | This deposit product is a RMB capital-guaranteed non-fixed income product, and the product income is divided into two parts: fixed income and non-fixed income, in which the non-fixed income is associated with the fluctuation of the observed target. | Agreement | 1.15% Or 2.65% | Not applicable | - | - | N/A | Yes | Not applicable | - |
| Industrial Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | May 27,2024 | August 28,2024 | This deposit product is a RMB capital-guaranteed non-fixed income product, and the product income is divided into two parts: fixed income and non-fixed income, in which the non-fixed income is associated with the fluctuation of the observed target. | Agreement | 1.15% Or 2.65% | Not applicable | - | - | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 12,000.00 | Idle own funds | May 29,2024 | November 25,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 1.5% or 2.82% or 3.02% | Not applicable | - | - | N/A | Yes | Not applicable | - |
| Bank of China | Bank | Principal-guaranteed with floating income | 15,000.00 | Idle own funds | May 30,2024 | August 30,2024 | This deposit product is a RMB capital-guaranteed non-fixed income product, and the product income is divided into two parts: fixed income and non-fixed income, in which the non-fixed income is associated with the fluctuation of the observed target. | Agreement | 1. Or 2.64% | Not applicable | - | - | N/A | Yes | Not applicable | - |
| Dongguan Bank Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 13,000.00 | Idle own funds | May 30,2024 | November 28,2024 | The principal part of structured deposits is included in the in-statement accounting, and it is included in the scope of deposit reserve and deposit insurance premium payment according to the deposit management. The relevant | Agreement | 2% or 2.95% or 3.0% | Not applicable | - | - | N/A | Yes | Not applicable | - |
| assets are accrued with capital and provisions according to the relevant regulations of the State Council's Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target and is influenced by many factors in the market. | ||||||||||||||||
| Dongguan Bank Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 3,000.00 | Idle own funds | May 31,2024 | November 29,2024 | The principal part of structured deposits is included in the in-statement accounting, and it is included in the scope of deposit reserve and deposit insurance premium payment according to the deposit management. The relevant assets are accrued with capital and provisions according to the relevant regulations of the State Council's Banking Regulatory Authority; The final actual income of structured deposits depends on the market performance of the linked target | Agreement | 2% or 2.95% or 3% | Not applicable | - | - | N/A | Yes | Not applicable | - |
| and is influenced by many factors in the market. | ||||||||||||||||
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 20,000.00 | Idle own funds | June 3,2024 | June 30,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 43.50 | 43.50 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 5,000.00 | Idle own funds | June 5,2024 | June 29,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.60% | Not applicable | 8.19 | 8.19 | N/A | Yes | Not applicable | - |
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 27,000.00 | Idle own funds | June 5,2024 | June 28,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other | Agreement | 2.90% | Not applicable | 49.34 | 49.34 | N/A | Yes | Not applicable | - |
| derivative financial instruments. | ||||||||||||||||
| Bank of Hangzhou Co., Ltd. Hefei Branch | Bank | Principal-guaranteed with floating income | 10,000.00 | Idle own funds | June 6,2024 | June 28,2024 | The principal of this product is invested in bank deposits and derivative financial instruments. Derivative financial instruments include but are not limited to credit goods, foreign exchange, interest rate options and other derivative financial instruments. | Agreement | 2.90% | Not applicable | 17.48 | 17.48 | N/A | Yes | Not applicable | - |
| China Everbright Bank Co., Ltd., Hefei Branch | Bank | Principal-guaranteed with floating income | 20,000.00 | Idle own funds | June 26,2024 | September 26,2024 | This product is a RMB structured deposit product with embedded financial derivatives. Banks invest the raised structured deposit funds in bank time deposits, and at the same time invest in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in domestic or international financial markets within the upper limit of the income of such time deposits. The sum of the investment gains and losses of financial derivative transactions | Agreement | 1.5% or 2.35% or 2.45% | Not applicable | - | - | N/A | Yes | Not applicable | - |
| and the interest of bank deposits jointly constitutes the income of structured deposit products. | ||||||||||||||
| Total | 183,000.00 | -- | -- | -- | -- | -- | -- | - | 317.89 | -- | - | -- | -- | -- |
Note: Zhongke Meiling, a subsidiary of the Company, is a listed company of the Beijing Stock Exchange. For details of its entrusted financial management, please refer to
Zhongke Meiling's 2024 Semi-annual Report.Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
(iv) Other material contracts
□ Applicable √ Not applicable
No other material contracts in the period.XIII. Explanation on other significant events
√ Applicable □ Not applicable
1. According to the resolution of the 40th meeting of the 10th Board of Directors of the Company, it was agreedthat the Company should set up an ESG management organization structure, and an ESG management committeeunder the Board of Directors of the Company, consisting of six directors of the Board of Directors, namely Mr. WuDinggang, Mr. Zhong Ming, Mr. Zhao Qilin, Mr. Kou Huameng, Mr. Hu Zhaogui and Ms. Mu Wen (independentdirectors), and the chairman of Mr. Wu Dinggang, which will take effect from the date of review and approval bythe Board of Directors. The term of office of the above members is the same as that of the Board of Directors.Foundmore on appointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn)that the Company disclosed in the form of announcement (Announcement No. 2024-004 and 2024-005 )on 20February 2024 .
2. According to the resolution of the 40th meeting of the 10th Board of Directors, it was agreed that theCompany will invest RMB 88 million to transform the front-end refrigerator production line of Hefei manufacturingbase, in order to enhance the refrigerator manufacturing capacity of Hefei base and improve the marketcompetitiveness of products. Found more on appointed media “Securities Times”, “China Securities Journal” andJuchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (AnnouncementNo. 2024-004 )on 20 February 2024 .
3. According to the resolutions of the 42nd meeting of the 10th Board of Directors, the 30th meeting of the10th Board of Supervisors and the 2023 Annual General Meeting of Shareholders, it was agreed to pass theCompany's 2023 profit distribution plan: based on the Company's total share capital of 1,029,923,715 shares onDecember 31, 2023, it will distribute a cash dividend of RMB 3 (including tax) to all shareholders for every 10shares, with no bonus shares or share capital increase by reserve fund conversion. It is expected to distribute a cashdividend of RMB 308,977,114.50 (including tax), accounting for 41.70% of the net profit attributable toshareholders of listed companies in 2023. Found more on appointed media “Securities Times”, “China SecuritiesJournal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement(Announcement No. 2024-007,2024-008, 2024-010 and 2024-024 )on 30 March 2024 and 26 April 2024. .
4. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual GeneralMeeting of Shareholders, it was agreed to appoint Pan-China Certified Public Accountants (special generalpartnership) AS appointed as the auditor of the Company's 2024 annual financial report and internal control for aperiod of one year. Found more on appointed media “Securities Times”, “China Securities Journal” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-
007 ,2024-011 and 2024-024 )on 30 March 2024 and 26 Apri 2024.
5. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual GeneralMeeting of Shareholders, it was agreed that the Company and its subsidiaries will conduct forward foreign exchangefund trading business from July 1, 2024 to June 30, 2025, with a transaction balance not exceeding USD 1.199billion (mainly including USD, AUD and EUR, and all other foreign exchange will be converted into USD), and alongest delivery period of a single business of no more than one year.Found more on appointed media “SecuritiesTimes”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in theform of announcement (Announcement No. 2024-007,2024-013 and 2024-024 )on 30 March 2024 and 26 April2024. .
6. According to the resolutions of the 42nd meeting of the 10th Board of Directors, the 30th meeting of the10th Board of Supervisors and the 2023 Annual General Meeting of Shareholders, it was agreed to pass theCompany's Return Plan for Shareholders for the Next Three Years (2024 -2026).Found more on appointed media“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2024-007,2024-008 and 2024-024 )on 30 March 2024and 26 April 2024. .
7. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 2023 Annual GeneralMeeting of Shareholders, it was agreed that the Company and its subsidiaries apply to Hefei Branch of IndustrialBank Co., Ltd. for a special credit line of up to RMB 400 million for bill pool; and apply to Hefei Branch of PingAn Bank Co., Ltd. for a special credit line of up to RMB 500 million for bill pool.Found more on appointed media“Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2024-007,2024-015 and 2024-024 )on 30 March 2024and 26 April 2024. .
8. According to the 43rd meeting of the 10th Board of Directors, the 31st meeting of the 10th Board ofSupervisors and the First Extraordinary General Meeting of Shareholders in 2024, it was agreed to provide a totalguarantee amount of no more than RMB 600 million for raw materials purchased by Changhong Air Conditioning,a wholly-owned subsidiary of the Company, with a guarantee period of one year, starting from the date of reviewand approval by the Company's General Meeting of Shareholders.Found more on appointed media “SecuritiesTimes”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in theform of announcement (Announcement No. 2024-020,2024-021,2024-023 and 2024-036 )on 20 April 2024 and 19June 2024. .
9. In order to establish a variety of shareholder return mechanisms, thank shareholders for their long-termconcern and support, and at the same time to allow shareholders to experience the Company's new products andservices, and improve investors' understanding and recognition of the Company's intrinsic value, the Company heldthe "Changhong Meiling Shareholder Thanksgiving Festival" from May 18, 2024 to May 26, 2024. Found more onappointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that theCompany disclosed in the form of announcement (Announcement No. 2024-025 )on 17 May 2024 a.
10. According to the resolutions of the 44th meeting of the 10th Board of Directors and the First ExtraordinaryGeneral Meeting of Shareholders in 2024, it was agreed to amend some clauses of the Company's Articles ofAssociation according to relevant provisions of laws and regulations and combined with the actual situation of theCompany.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-026,2024-028 and 2024-036 )on 1 June 2024 and 19 June 2024. .
11. According to the resolution of the 44th meeting of the 10th Board of Directors and the First ExtraordinaryGeneral Meeting of Shareholders in 2024, it was agreed to amend some clauses of the Company's AuthorizationManagement System according to the relevant provisions of laws and regulations and combined with the actualsituation of the Company.Found more on appointed media “Securities Times”, “China Securities Journal” andJuchao Website (www.cninfo.com.cn) that the Company disclosed in the form of announcement (AnnouncementNo. 2024-026,2024-028 and 2024-036 )on 1 June 2024 and 19 June 2024. .
12. According to the resolutions of the 44th meeting of the 10th Board of Directors, the 32nd meeting of the10th Board of Supervisors and the First Extraordinary General Meeting of Shareholders in 2024, it was agreed thatthe Company and its subsidiaries (excluding Zhongke Meiling Cryogenic Technology Co., Ltd. and its subsidiaries)would increase the use of their own idle funds of no more than RMB 1.85 billion (which can be used in a rollingway) to invest in and purchase bank wealth management products with high safety, good liquidity, low risk andstability within one year. The authorization period is valid within one year from the date of deliberation and approvalby the General Meeting of Shareholders of the Company.Found more on appointed media “Securities Times”,“China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in the form ofannouncement (Announcement No. 2024-026,2024-027 ,2024-030 and 2024-036 )on 1 June 2024 and 19 June2024. .
13. In view of the expiration of the term of the 10th Board of Directors of the Company, according to relevantregulations, the Board of Directors of the Company needs to be re-elected. It was agreed that the 11th Board ofDirectors of the Company should have 9 directors, including 6 non-independent directors and 3 independentdirectors. According to the resolutions of the 44th meeting of the 10th Board of Directors and the First ExtraordinaryGeneral Meeting of Shareholders in 2024, it was agreed to appoint Mr. Wu Dinggang, Mr. Zhong Ming, Mr. ZhaoQilin, Ms. Yi Suqin, Mr. Cheng Ping and Mr. Fang Wei as the non-independent directors of the 11th Board ofDirectors, and Ms. Mu Wen, Mr. Hong Yuanjia and Mr. Cheng Wenlong as the independent directors of the 11thBoard of Directors.Found more on appointed media “Securities Times”, “China Securities Journal” and JuchaoWebsite (www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-026,2024-031 and 2024-036 )on 1 June 2024 and 19 June 2024. .
14. According to the resolution of the 32nd meeting of the 10th Board of Supervisors and the FirstExtraordinary General Meeting of Shareholders in 2024, in order to optimize the enterprise supervision system,combined with the revision of the Articles of Association, it was agreed to amend some clauses of the Rules ofProcedure of the Board of Supervisors, and adjust the member number of the Board of Supervisors from 5 to 3.Foundmore on appointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn)
that the Company disclosed in the form of announcement (Announcement No. 2024-027,2024-029 and 2024-036 )on 1 June 2024 and 19 June 2024. .
15. In view of the expiration of the term of the 10th Board of Supervisors of the Company, according to relevantregulations, the Board of Supervisors of the Company needs to be re-elected. It was agreed that the 11th Board ofSupervisors of the Company should have 3 supervisors, including 2 shareholder representative supervisors and 1employee supervisor. According to the resolution of the 32nd meeting of the 10th Board of Supervisors and the FirstExtraordinary General Meeting of Shareholders in 2024, it was agreed to appoint Mr. Qiu Jin and Mr. Ma Yu as theshareholder representative supervisors of the 11th Board of Supervisors; After voting at the second meeting of theNinth Workers' Congress, it was agreed to elect Ms. Ji Ge as the employee supervisor of the 11th Board ofSupervisors.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-027,2024-032, 2024-036 and 2024-037)on 1 June 2024 and 19 June 2024. .
16. According to the resolution of the first meeting of the 11th Board of Directors, it was agreed to elect Mr.Wu Dinggang as the chairman of the 11th Board of Directors, to elect members of the strategy, audit, nomination,remuneration and assessment and ESG management committees under the 11th Board of Directors, to re-appointMr. Tang Youdao, Mr. Kou Huameng and Mr. Hu Zhaogui as the Company's vice presidents, to employ Ms. Li Xiaas the Company's vice president and concurrently the secretary of the Board of Directors, and to re-appoint Mr.Pang Haitao as the Company's financial director, with a term of office from the date of review and approval by theBoard of Directors to the Company to the date of expiration of the term of office of the current Board ofDirectors.Found more on appointed media “Securities Times”, “China Securities Journal” and Juchao Website(www.cninfo.com.cn) that the Company disclosed in the form of announcement (Announcement No. 2024-038 and2024-040 )on 19 June 2024 and 20 June 2024. .
17. According to the resolution of the first meeting of the 11th Board of Supervisors of the Company, it wasagreed to elect Mr. Qiu Jin as the chairman of the 11th Board of Supervisors of the Company, with a term of officethe same as that of the 11th Board of Supervisors of the Company.Found more on appointed media “SecuritiesTimes”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Company disclosed in theform of announcement (Announcement No. 2024-038 and 2024-040 )on 19 June 2024 and 20 June 2024. .XIV. Major event of the subsidiary
√ Applicable □ Not applicable
1. According to the resolution of the 41st meeting of the 10th Board of Directors of the Company, it was agreedthat Sichuan Changhong Air Conditioning Co., Ltd., a subsidiary of the Company, would invest RMB 100 millionwith its own funds to set up a wholly-owned subsidiary, Sichuan Changhong Intelligent Air ConditioningTechnology Co., Ltd., to engage in related business centered on manufacturing and sales of frequency conversiondrive control panels in the air conditioning industry (including special air conditioners).Found more on appointedmedia “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that the Companydisclosed in the form of announcement (Announcement No. 2024-006 )on 15 March 2024. .
2. According to the resolution of the 42nd meeting of the 10th Board of Directors and the 30th meeting of the10th Board of Supervisors, it was agreed that Hefei Meiling Nonferrous Metal Products Co., Ltd., a subsidiary ofthe Company, would write off some unrecoverable accounts receivable totaling RMB 3,092,614.56.Found more onappointed media “Securities Times”, “China Securities Journal” and Juchao Website (www.cninfo.com.cn) that theCompany disclosed in the form of announcement (Announcement No. 2024-007,2024-008 and 2024-012 )on 30March 2024. .
Section VII Changes in Shares and Particular about ShareholdersI. Changes in Share Capital(i) Changes in Share Capital
In Shares
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 7,688,842 | 0.75% | 0 | 0 | 0 | -1,178,307 | -1,178,307 | 6,510,535 | 0.63% |
| 1. State-owned shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. State-owned legal person’s shares | 1,141,053 | 0.11% | 0 | 0 | 0 | 0 | 0 | 1,141,053 | 0.11% |
| 3. Other domestic shares | 5,280,369 | 0.52% | 0 | 0 | 0 | +89,113 | +89,113 | 5,369,482 | 0.52% |
| Including: Domestic legal person’s shares | 3,363,539 | 0.33% | 0 | 0 | 0 | 0 | 0 | 3,363,539 | 0.33% |
| Domestic natural person’s shares | 1,916,830 | 0.19% | 0 | 0 | 0 | +89,113 | +89,113 | 2,005,943 | 0.19% |
| 4. Foreign shares | 1,267,420 | 0.12% | 0 | 0 | 0 | -1,267,420 | -1,267,420 | 0 | 0.00% |
| Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Foreign natural person’s shares | 1,267,420 | 0.12% | 0 | 0 | 0 | -1,267,420 | -1,267,420 | 0 | 0.00% |
| II. Unrestricted shares | 1,022,234,873 | 99.25% | 0 | 0 | 0 | +1,178,307 | +1,178,307 | 1,023,413,180 | 99.37% |
| 1. RMB ordinary shares | 875,312,459 | 84.99% | 0 | 0 | 0 | -89,113 | -89,113 | 875,223,346 | 84.98% |
| 2. Domestically listed foreign shares | 146,922,414 | 14.26% | 0 | 0 | 0 | +1,267,420 | +1,267,420 | 148,189,834 | 14.39% |
| 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 | 1,029,923,715 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,029,923,715 | 100.00% |
1. Reasons for share changed
√ Applicable □ Not applicable
(1) On June 18, 2024, the Company held the first meeting of the 11th Board of Directors, and held a generalelection for senior managers. Mr. Huang Danian no longer served as the Company's vice president. According tothe relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange- Reduction of Shares held by Shareholders and Directors, Supervisors and Senior Managers, 75% of Mr. HuangDanian's shares, namely 267,337 shares, were restricted shares of senior managers before he left office. During thereporting period, as Mr. Huang Danian left office less than six months ago, the remaining 25% of the total sharesheld by him, that is, 89,113 shares, were locked. At present, the Meiling shares held by Mr. Huang Danian are lockedin full.
(2) On May 25, 2023, Mr. Liu Hongwei, the former Executive Vice President of the Company, resigned as theexecutive vice president of the Company for personal reasons, and his original term of office expired on June 18,2024. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies ofShenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors, Supervisors and SeniorManagers, all the shares of Mr. Liu Hongwei were locked six months after his resignation, but on December 31,2023, 75% of the shares held by Mr. Liu Hongwei, that is, 1,267,420 shares, were locked because his original termof office did not expire. During the reporting period, as it had been six months since Mr. Liu Hongwei left officeand his original term expired, 75% of the shares held by him, that is, 1,267,420 shares, were lifted from restrictedsale.
2. Approval of share changed
□ Applicable √ Not applicable
3. Ownership transfer of share changed
□ Applicable √ Not applicable
4. Implementation progress of shares buy-back
□ Applicable √ Not applicable
5. Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
6. Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per shareattributable to common shareholders of Company in latest year and period
□ Applicable √ Not applicable
7. Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
(ii) Changes of lock-up stocks
√ Applicable □ Not applicable
In: Shares
| Shareholders | Opening shares restricted | Shares released in Period | Restricted shares increased in Period | Ending shares restricted | Restricted reasons | Date for released |
| Huang Danian | 267,337 | 0 | 89,113 | 356,450 | Top management lock-in stock | On June 18, 2024, the Company held the first meeting of the 11th Board of Directors, and held a general election for senior managers. Mr. Huang Danian no longer served as the Company's vice president. According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors, Supervisors and Senior Managers, 75% of Mr. Huang Danian's shares, namely 267,337 shares, were restricted shares of senior managers before he left office. During the reporting period, as Mr. Huang Danian left office less than six months ago, the remaining 25% of the total shares held by him, that is, 89,113 shares, were locked. At present, the Meiling shares held by Mr. Huang Danian are locked in full. |
| Liu Hongwei | 1,267,420 | 1,267,420 | 0 | 0 | Top management lock-in stock | According to the relevant provisions of the Guideline No.18 on Self-regulation of Listed Companies of Shenzhen Stock Exchange - Reduction of Shares held by Shareholders and Directors, Supervisors and Senior Managers, all the shares of Mr. Liu Hongwei were locked six months after his resignation, but on December 31, 2023, 75% of the shares held by Mr. Liu Hongwei, that is, 1,267,420 shares, were locked because his original term of office did not expire. During the reporting period, as it had been six months since Mr. Liu Hongwei left office and his original term expired, 75% of the shares held by him, that is, 1,267,420 shares, were lifted from restricted sale. |
| Total | 1,534,757 | 1,267,420 | 89,113 | 356,450 | -- | -- |
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Shares
| Total shareholders at end of the Period | 51,072 | Total preference shareholders with voting rights recovered at end of reporting period (if | 0 |
| any)( See Note 8) | ||||||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders(Excludes shares lent through refinancing) | ||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in report period | Amount of restricted common shares held | Amount of common shares held without restriction | Information of shares pledged, tagged or frozen | |
| State of share | Amount | |||||||
| Sichuan Changhong Electric Co., Ltd. | State-owned legal person | 24.12% | 248,457,724 | 0 | 0 | 248,457,724 | - | - |
| HKSCC | Foreign legal person | 6.52% | 67,198,211 | +62,479,597 | 0 | 67,198,211 | - | - |
| The National Social Security Fund 101 portfolio | Domestic non-state-owned legal person | 3.44% | 35,423,661 | +12,640,925 | 0 | 35,423,661 | - | - |
| Hefei Industry Investment Holding (Group) Co., Ltd. | State-owned legal person | 2.71% | 27,920,220 | -19,903,181 | 0 | 27,920,220 | - | - |
| CHANGHONG (HK) TRADING LIMITED | Foreign legal person | 2.63% | 27,077,797 | 0 | 0 | 27,077,797 | - | - |
| CAOSHENGCHUN | Foreign nature person | 1.43% | 14,766,086 | 0 | 0 | 14,766,086 | - | - |
| Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities investment fund | Domestic non-state-owned legal person | 1.34% | 13,797,353 | +4,635,753 | 0 | 13,797,353 | - | - |
| ICBC－South Excellent Growth Stock Securities Investment Fund | Domestic non-state-owned legal person | 1.25% | 12,823,000 | +2,180,000 | 0 | 12,823,000 | - | - |
| China Construction Bank Co., Ltd.- Jiashixin Consumer Stock Securities Investment Fund | Domestic non-state-owned legal person | 1.18% | 12,182,400 | +100,300 | 0 | 12,182,400 | - | - |
| ICBC－Guangfa Jiyuan bond securities investment fund | Domestic non-state-owned legal person | 0.68% | 7,000,000 | +7,000,000 | 0 | 7,000,000 | - | - |
| Strategy investors or general legal person becomes top 10 shareholders due to rights issued (if applicable)(See note 3) | Not applicable | |||||||
| Explanation on associated relationship among the aforesaid shareholders | Among the above shareholders, CHANGHONG (HK) TRADING LIMITED (hereinafter referred to as Hong Kong Changhong) is the wholly-owned subsidiary of Sichuan Changhong Electric Co., Ltd., the foregoing shareholders constitute persons of uniform action. There existed no associated relationship or belong to the concerted actors as specified in the Measures for the Administration of Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan Changhong Electric Co., Ltd, Hong Kong Changhong and other top 8 shareholders, The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong to the persons acting in concert that is stipulated in the “Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies”. | |||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | Not Applicable | |||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable)(See Note 11) | Not Applicable | |||||||
| Particular about top ten shareholders with un-restrict shares held(Excluding shares lent through refinancing and Top management lock-in stock) | ||||||||
| Shareholders’ name | Amount of unrestricted shares held at end of Period | Type of shares | |
| Type | Amount | ||
| Sichuan Changhong Electric Co., Ltd. | 248,457,724 | Common shares in RMB | 248,457,724 |
| HKSCC | 67,198,211 | Common shares in RMB | 67,198,211 |
| The National Social Security Fund 101 portfolio | 35,423,661 | Common shares in RMB | 35,423,661 |
| Hefei Industry Investment Holding (Group) Co., Ltd. | 27,920,220 | Common shares in RMB | 27,920,220 |
| CHANGHONG (HK) TRADING LIMITED | 27,077,797 | Foreign shares in domestic market | 27,077,797 |
| CAOSHENGCHUN | 14,766,086 | Foreign shares in domestic market | 14,766,086 |
| Industrial Bank－Southern Xingrun value one-year holding period of hybrid securities investment fund | 13,797,353 | Common shares in RMB | 13,797,353 |
| ICBC－South Excellent Growth Stock Securities Investment Fund | 12,823,000 | Common shares in RMB | 12,823,000 |
| China Construction Bank Co., Ltd.- Jiashixin Consumer Stock Securities Investment Fund | 12,182,400 | Common shares in RMB | 12,182,400 |
| ICBC－Guangfa Jiyuan bond securities investment fund | 7,000,000 | Common shares in RMB | 7,000,000 |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Found more in “Particulars about shares held above 5% by shareholders or top 10 shares holding” | ||
| Explanation on top ten common shareholders involving margin business (if any) | Not applicable | ||
Information of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholdersof unrestricted tradable shares participating in the lending of shares in securities lending and borrowing business
□ Applicable √ Not applicable
The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared withthe previous period due to the securities lending/returning,
□ Applicable √ Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Companyhave no buy –back agreement dealing in reporting period.IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
The shareholding of directors, supervisors and senior managers of the Company has not changed during thereporting period. For details, please refer to the 2023 annual reportV. Changes in controlling shareholders or actual controllers(i) Controlling shareholder changes in reporting period
□ Applicable √ Not applicable
Controlling shareholder stays the same in Period.(ii) Changes of actual controller in Period
□ Applicable √ Not applicable
Actual controller stays the same in Period
Section VIII Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
Section IX Corporate Bonds
□ Applicable √ Not applicable
Section X Financial ReportI Audit reportHas the semi annual report been audited
□ Yes √ No
The company's semi annual financial report has not been audited.II. Financial StatementStatement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by CHANGHONG MEILING CO., LTD.
June 30, 2024
In RMB
| Item | June 30, 2024 | January 1, 2024 |
| Current assets: | ||
| Monetary funds | 9,049,689,291.78 | 8,840,685,525.71 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 1,091,019,993.13 | 39,236,447.63 |
| Derivative financial assets | ||
| Note receivable | 267,174.50 | |
| Account receivable | 2,167,372,348.82 | 1,633,706,889.06 |
| Receivable financing | 1,600,373,357.87 | 1,641,858,740.34 |
| Accounts paid in advance | 26,026,323.72 | 45,738,805.90 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 80,790,579.55 | 82,953,808.97 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 3,570,153,407.57 | 2,022,738,412.97 |
| Including：Data resources | ||
| Contractual assets | 10,193,150.12 | 13,261,690.62 |
| Assets held for sale | ||
| Non-current asset due within one year | 122,294,027.78 |
| Other current assets | 634,179,060.52 | 225,419,883.07 |
| Total current assets | 18,229,797,513.08 | 14,668,161,406.55 |
| Non-current assets: | ||
| Loans and payments on behalf | 0.00 | |
| Debt investment | 1,231,537,871.00 | 420,537,485.54 |
| Other debt investment | 0.00 | |
| Long-term account receivable | 0.00 | |
| Long-term equity investment | 112,836,567.94 | 112,745,811.75 |
| Investment in other equity instrument | 0.00 | |
| Other non-current financial assets | 674,139,515.48 | 674,139,515.48 |
| Investment real estate | 49,948,104.52 | 50,920,487.71 |
| Fixed assets | 2,155,971,273.86 | 2,136,912,034.28 |
| Construction in progress | 69,381,313.71 | 69,920,839.20 |
| Productive biological asset | 0.00 | |
| Oil and gas asset | 0.00 | |
| Right-of-use assets | 115,425,096.53 | 49,993,400.61 |
| Intangible assets | 889,031,727.48 | 886,455,434.73 |
| Including：Data resources | ||
| Expense on Research and Development | 110,820,740.92 | 97,177,535.34 |
| Including：Data resources | ||
| Goodwill | 0.00 | |
| Long-term expenses to be apportioned | 33,215,466.40 | 35,698,465.62 |
| Deferred income tax asset | 158,259,901.69 | 162,340,495.03 |
| Other non-current asset | 13,906,387.31 | 26,601,614.35 |
| Total non-current asset | 5,614,473,966.84 | 4,723,443,119.64 |
| Total assets | 23,844,271,479.92 | 19,391,604,526.19 |
| Current liabilities: | ||
| Short-term loans | 1,145,550,587.35 | 1,134,102,419.03 |
| Loan from central bank | 0.00 | |
| Capital borrowed | 0.00 | |
| Trading financial liability | 46,906,758.56 | 32,229,012.86 |
| Derivative financial liability | 0.00 | |
| Note payable | 7,438,928,526.00 | 5,904,387,089.98 |
| Account payable | 6,482,294,160.76 | 3,882,303,908.89 |
| Accounts received in advance | 847,417.67 | 55,949.90 |
| Contractual liability | 394,822,462.19 | 405,698,756.02 |
| Selling financial asset of repurchase | 0.00 | |
| Absorbing deposit and interbank deposit | 0.00 | |
| Security trading of agency | 0.00 | |
| Security sales of agency | 0.00 |
| Wage payable | 445,960,283.15 | 443,612,216.56 |
| Taxes payable | 76,400,837.31 | 91,917,751.71 |
| Other account payable | 1,039,236,170.68 | 884,714,721.30 |
| Including: Interest payable | 0.00 | |
| Dividend payable | 6,005,989.72 | 5,384,407.44 |
| Commission charge and commission payable | 0.00 | |
| Reinsurance payable | 0.00 | |
| Liability held for sale | 0.00 | |
| Non-current liabilities due within one year | 59,795,173.12 | 48,822,798.47 |
| Other current liabilities | 17,855,988.67 | 19,172,541.50 |
| Total current liabilities | 17,148,598,365.46 | 12,847,017,166.22 |
| Non-current liabilities: | ||
| Insurance contract reserve | 0.00 | |
| Long-term loans | 89,058,089.90 | 108,000,000.00 |
| Bonds payable | 0.00 | |
| Including: Preferred stock | 0.00 | |
| Perpetual capital securities | 0.00 | |
| Lease liability | 104,173,573.28 | 43,488,292.70 |
| Long-term account payable | 627,878.52 | 800,347.84 |
| Long-term wages payable | 10,530,588.34 | 11,417,181.82 |
| Accrual liability | 35,570,774.19 | 32,054,790.39 |
| Deferred income | 119,482,607.70 | 132,977,494.33 |
| Deferred income tax liabilities | 28,890,023.41 | 21,814,466.43 |
| Other non-current liabilities | 0.00 | |
| Total non-current liabilities | 388,333,535.34 | 350,552,573.51 |
| Total liabilities | 17,536,931,900.80 | 13,197,569,739.73 |
| Owner’s equity: | ||
| Share capital | 1,029,923,715.00 | 1,029,923,715.00 |
| Other equity instrument | 0.00 | |
| Including: Preferred stock | 0.00 | |
| Perpetual capital securities | 0.00 | |
| Capital public reserve | 2,805,503,457.77 | 2,805,503,457.77 |
| Less: Inventory shares | 0.00 | |
| Other comprehensive income | -21,877,980.74 | -20,704,362.05 |
| Reasonable reserve | 14,454,178.04 | 11,246,811.91 |
| Surplus public reserve | 477,053,194.82 | 477,053,194.82 |
| Provision of general risk | 0.00 | |
| Retained profit | 1,627,816,138.02 | 1,521,759,836.64 |
| Total owner’ s equity attributable to parent company | 5,932,872,702.91 | 5,824,782,654.09 |
| Minority interests | 374,466,876.21 | 369,252,132.37 |
| Total owner’ s equity | 6,307,339,579.12 | 6,194,034,786.46 |
| Total liabilities and owner’ s equity | 23,844,271,479.92 | 19,391,604,526.19 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
2. Balance Sheet of Parent Company
In RMB
| Item | June 30, 2024 | January 1, 2024 |
| Current assets: | ||
| Monetary funds | 3,726,975,756.84 | 4,809,758,761.19 |
| Trading financial assets | 755,898,224.23 | 18,729,757.94 |
| Derivative financial assets | ||
| Note receivable | 38,674.50 | |
| Account receivable | 1,238,008,121.72 | 1,451,795,533.72 |
| Receivable financing | 1,172,289,956.04 | 1,497,014,392.88 |
| Accounts paid in advance | 38,578,600.05 | 57,223,852.86 |
| Other account receivable | 67,480,000.95 | 61,841,221.91 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 733,760,107.85 | 563,055,688.46 |
| Data resources | ||
| Contractual assets | 37,408.05 | 37,408.05 |
| Assets held for sale | ||
| Non-current assets maturing within one year | 122,294,027.78 | |
| Other current assets | 338,807,851.70 | 117,873,746.80 |
| Total current assets | 8,071,836,027.43 | 8,699,663,066.09 |
| Non-current assets: | ||
| Debt investment | 741,391,902.78 | 185,038,444.44 |
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 1,858,536,438.74 | 1,857,475,810.90 |
| Investment in other equity instrument | ||
| Other non-current financial assets | 639,796,405.98 | 639,796,405.98 |
| Investment real estate | 3,230,606.15 | 3,335,032.47 |
| Fixed assets | 1,094,447,507.55 | 1,129,605,191.26 |
| Construction in progress | 47,182,435.42 | 23,067,134.99 |
| Productive biological assets |
| Oil and natural gas assets | ||
| Right-of-use assets | 13,900,722.96 | 14,847,119.40 |
| Intangible assets | 451,229,552.02 | 450,919,869.65 |
| Data resources | ||
| Research and development costs | 53,940,097.24 | 59,134,989.07 |
| Data resources | ||
| Goodwill | ||
| Long-term deferred expenses | 16,968,304.60 | 18,688,725.10 |
| Deferred income tax assets | 91,953,130.46 | 112,630,572.62 |
| Other non-current assets | 638,649.57 | 638,649.57 |
| Total non-current assets | 5,013,215,753.47 | 4,495,177,945.45 |
| Total assets | 13,085,051,780.90 | 13,194,841,011.54 |
| Current liabilities: | ||
| Short-term borrowings | 827,328,642.91 | 1,128,097,377.36 |
| Trading financial liability | 21,726,469.38 | 13,310,995.04 |
| Derivative financial liability | ||
| Notes payable | 3,289,284,464.26 | 2,697,168,522.01 |
| Account payable | 2,085,829,995.33 | 2,296,410,046.78 |
| Accounts received in advance | ||
| Contractual liability | 86,009,211.06 | 107,529,353.67 |
| Wage payable | 159,344,814.67 | 159,773,962.41 |
| Taxes payable | 7,955,060.25 | 25,137,168.64 |
| Other accounts payable | 1,014,893,542.38 | 951,772,428.91 |
| Including: Interest payable | ||
| Dividend payable | 5,405,989.72 | 4,784,407.44 |
| Liability held for sale | ||
| Non-current liabilities due within one year | 47,410,970.58 | 42,339,541.12 |
| Other current liabilities | 4,402,429.73 | 4,875,594.29 |
| Total current liabilities | 7,544,185,600.55 | 7,426,414,990.23 |
| Non-current liabilities: | ||
| Long-term loans | 83,000,000.00 | 108,000,000.00 |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 13,730,549.88 | 14,511,484.16 |
| Long-term account payable | ||
| Long term employee compensation payable | 5,945,685.56 | 6,554,481.48 |
| Accrued liabilities | 8,758,265.23 | 8,758,265.23 |
| Deferred income | 70,196,628.90 | 75,130,950.40 |
| Deferred income tax liabilities | 10,223,883.79 | 13,589,235.48 |
| Other non-current liabilities | ||
| Total non-current liabilities | 191,855,013.36 | 226,544,416.75 |
| Total liabilities | 7,736,040,613.91 | 7,652,959,406.98 |
| Owners’ equity: | ||
| Share capital | 1,029,923,715.00 | 1,029,923,715.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 2,740,508,510.57 | 2,740,508,510.57 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | 1,330,778.37 | 505,111.75 |
| Surplus reserve | 476,835,029.14 | 476,835,029.14 |
| Retained profit | 1,100,413,133.91 | 1,294,109,238.10 |
| Total owner’s equity | 5,349,011,166.99 | 5,541,881,604.56 |
| Total liabilities and owner’s equity | 13,085,051,780.90 | 13,194,841,011.54 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement
In RMB
| Item | Semi-annual of 2024 | Semi-annual of 2023 |
| I. Total operating income | 14,947,670,291.70 | 12,828,694,323.57 |
| Including: Operating income | 14,947,670,291.70 | 12,828,694,323.57 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 14,492,584,406.08 | 12,396,558,239.03 |
| Including: Operating cost | 13,261,806,565.80 | 11,178,914,075.83 |
| 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 | 53,110,913.19 | 98,025,766.62 |
| Sales expense | 834,329,749.56 | 786,493,259.32 |
| Administrative expense | 157,436,505.99 | 182,962,865.60 |
| R&D expense | 287,601,598.28 | 265,176,197.93 |
| Financial expense | -101,700,926.74 | -115,013,926.27 |
| Including: Interest expenses | 12,799,719.70 | 13,185,503.15 |
| Interest income | 98,725,551.34 | 83,240,562.07 |
| Add: Other income | 81,307,947.62 | 32,328,256.66 |
| Investment income (Loss is listed with “-”) | 2,933,725.87 | 14,377,940.05 |
| Including: Investment income on affiliated company and joint venture | 7,391,368.30 | 12,544,969.44 |
| The termination of income recognition for financial assets measured by amortized cost | -24,604,289.53 | -14,192,040.21 |
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | -42,719,405.68 | -56,428,183.43 |
| Loss of credit impairment (Loss is listed with “-”) | 12,475,890.64 | -41,081,589.83 |
| Losses of devaluation of asset (Loss is listed with “-”) | -29,258,587.16 | -18,167,335.89 |
| Income from assets disposal (Loss is listed with “-”) | 36,334.95 | |
| III. Operating profit (Loss is listed with “-”) | 479,861,791.86 | 363,165,172.10 |
| Add: Non-operating income | 2,550,542.70 | 10,704,019.80 |
| Less: Non-operating expense | 4,477,090.10 | 3,014,799.22 |
| IV. Total profit (Loss is listed with “-”) | 477,935,244.46 | 370,854,392.68 |
| Less: Income tax expense | 53,105,204.51 | 925,010.04 |
| V. Net profit (Net loss is listed with “-”) | 424,830,039.95 | 369,929,382.64 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 424,830,039.95 | 369,929,382.64 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 415,033,415.88 | 358,054,844.74 |
| 2.Minority shareholders’ gains and losses | 9,796,624.07 | 11,874,537.90 |
| VI. Net after-tax of other comprehensive income | -1,142,407.83 | 2,267,837.82 |
| Net after-tax of other comprehensive income attributable to owners of parent company | -1,173,618.69 | 2,021,916.55 |
| (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 | -1,173,618.69 | 2,021,916.55 |
| 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 | -1,173,618.69 | 2,021,916.55 |
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | 31,210.86 | 245,921.27 |
| VII. Total comprehensive income | 423,687,632.12 | 372,197,220.46 |
| Total comprehensive income attributable to owners of parent Company | 413,859,797.19 | 360,076,761.29 |
| Total comprehensive income attributable to minority shareholders | 9,827,834.93 | 12,120,459.17 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.4030 | 0.3477 |
| (ii) Diluted earnings per share | 0.4030 | 0.3477 |
In the current period, if there is a merger of enterprises under the same control, the net profit realized by themerged party before the merger is 0 yuan, and the net profit realized by the merged party in the previous period is0 yuan.Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company
In RMB
| Item | Semi-annual of 2024 | Semi-annual of 2023 |
| I. Operating income | 4,969,902,647.32 | 4,338,699,541.92 |
| Less: Operating cost | 4,525,131,724.21 | 3,954,954,574.25 |
| Taxes and surcharge | 23,478,425.44 | 36,432,651.42 |
| Sales expenses | 150,916,822.25 | 94,839,586.49 |
| Administration expenses | 50,816,647.13 | 49,060,555.60 |
| R&D expenses | 133,895,567.76 | 118,815,372.05 |
| Financial expenses | -41,115,313.08 | -36,066,516.62 |
| Including: Interest expenses | 9,051,889.42 | 12,503,638.74 |
| Interest income | 50,681,932.56 | 39,678,411.29 |
| Add: Other income | 7,598,647.10 | 10,946,996.56 |
| Investment income (Loss is listed with “-”) | 26,670,093.50 | 68,376,405.75 |
| Including: Investment income on affiliated Company and joint venture | 6,158,368.75 | 11,539,929.52 |
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | -2,635,478.39 | -4,223,097.22 |
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | -21,247,008.05 | -20,365,050.80 |
| Loss of credit impairment (Loss is listed with “-”) | -168,300.27 | -7,182,062.31 |
| Losses of devaluation of asset (Loss is listed with “-”) | -5,947,448.04 | -808,792.91 |
| Income on disposal of assets (Loss is listed with “-”) | 3,044.16 |
| II. Operating profit (Loss is listed with “-”) | 133,687,802.01 | 171,630,815.02 |
| Add: Non-operating income | 165,605.98 | 496,859.54 |
| Less: Non-operating expense | 1,260,307.21 | 2,712,957.69 |
| III. Total Profit (Loss is listed with “-”) | 132,593,100.78 | 169,414,716.87 |
| Less: Income tax | 17,312,090.47 | -1,667,121.35 |
| IV. Net profit (Net loss is listed with “-”) | 115,281,010.31 | 171,081,838.22 |
| (i) continuous operating net profit (net loss listed with ‘-”) | 115,281,010.31 | 171,081,838.22 |
| (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 | 115,281,010.31 | 171,081,838.22 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.1119 | 0.1661 |
| (ii) Diluted earnings per share | 0.1119 | 0.1661 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
5. Consolidated Cash Flow Statement
In RMB
| Item | Semi-annual of 2024 | Semi-annual of 2023 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 15,308,589,791.30 | 12,198,688,836.73 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank |
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 563,109,006.37 | 335,722,174.27 |
| Other cash received concerning operating activities | 37,974,186.47 | 45,885,272.47 |
| Subtotal of cash inflow arising from operating activities | 15,909,672,984.14 | 12,580,296,283.47 |
| Cash paid for purchasing commodities and receiving labor service | 11,525,479,789.40 | 9,633,823,103.98 |
| 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 | 1,058,061,492.06 | 969,995,100.78 |
| Taxes paid | 201,465,905.00 | 220,348,189.39 |
| Other cash paid concerning operating activities | 396,439,921.08 | 345,610,079.51 |
| Subtotal of cash outflow arising from operating activities | 13,181,447,107.54 | 11,169,776,473.66 |
| Net cash flows arising from operating activities | 2,728,225,876.60 | 1,410,519,809.81 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 1,420,000,000.00 | 530,000,000.00 |
| Cash received from investment income | 28,412,801.63 | 29,194,568.79 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 200,791.00 | 2,580,708.68 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 101,996,559.35 | 83,960,584.77 |
| Subtotal of cash inflow from investing activities | 1,550,610,151.98 | 645,735,862.24 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 149,362,697.07 | 112,867,755.64 |
| Cash paid for investment | 3,580,000,000.00 | 990,000,000.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 7,111,935.45 | 14,291,587.29 |
| Subtotal of cash outflow from investing activities | 3,736,474,632.52 | 1,117,159,342.93 |
| Net cash flows arising from investing activities | -2,185,864,480.54 | -471,423,480.69 |
| III. Cash flows arising from financing activities: |
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 1,127,882,556.92 | 738,227,027.56 |
| Other cash received concerning financing activities | 72,296,545.79 | 246,707,138.50 |
| Subtotal of cash inflow from financing activities | 1,200,179,102.71 | 984,934,166.06 |
| Cash paid for settling debts | 1,131,967,080.14 | 543,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 325,527,935.72 | 94,160,552.96 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | 5,083,093.40 | 16,677,010.63 |
| Other cash paid concerning financing activities | 80,515,863.94 | 160,042,182.97 |
| Subtotal of cash outflow from financing activities | 1,538,010,879.80 | 797,202,735.93 |
| Net cash flows arising from financing activities | -337,831,777.09 | 187,731,430.13 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 17,439,311.30 | 5,527,412.31 |
| V. Net increase of cash and cash equivalents | 221,968,930.27 | 1,132,355,171.56 |
| Add: Balance of cash and cash equivalents at the period -begin | 8,391,128,635.87 | 6,113,222,069.76 |
| VI. Balance of cash and cash equivalents at the period -end | 8,613,097,566.14 | 7,245,577,241.32 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
6. Cash Flow Statement of Parent Company
In RMB
| Item | Semi-annual of 2024 | Semi-annual of 2023 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 5,280,211,025.34 | 3,881,403,178.06 |
| Write-back of tax received | 293,706,672.31 | 105,626,324.39 |
| Other cash received concerning operating activities | 14,519,557.10 | 11,635,429.61 |
| Subtotal of cash inflow arising from operating activities | 5,588,437,254.75 | 3,998,664,932.06 |
| Cash paid for purchasing commodities and receiving labor service | 4,180,482,491.50 | 3,259,367,184.55 |
| Cash paid to/for staff and workers | 291,758,151.83 | 253,472,494.63 |
| Taxes paid | 43,581,975.81 | 49,530,385.16 |
| Other cash paid concerning operating activities | 115,440,944.47 | 89,990,627.33 |
| Subtotal of cash outflow arising from operating activities | 4,631,263,563.61 | 3,652,360,691.67 |
| Net cash flows arising from operating activities | 957,173,691.14 | 346,304,240.39 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 620,000,000.00 | |
| Cash received from investment income | 27,533,505.78 | 74,682,585.15 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 202,186.00 | 2,534,831.90 |
| Net cash received from disposal of subsidiaries and other units |
| Other cash received concerning investing activities | 53,882,098.29 | 38,996,739.61 |
| Subtotal of cash inflow from investing activities | 701,617,790.07 | 116,214,156.66 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 85,678,643.57 | 76,197,096.37 |
| Cash paid for investment | 2,100,000,000.00 | 180,000,000.00 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 13,796,171.19 | |
| Subtotal of cash outflow from investing activities | 2,185,678,643.57 | 269,993,267.56 |
| Net cash flows arising from investing activities | -1,484,060,853.50 | -153,779,110.90 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 809,669,129.02 | 738,227,027.56 |
| Other cash received concerning financing activities | 150,450,083.63 | 95,587,946.50 |
| Subtotal of cash inflow from financing activities | 960,119,212.65 | 833,814,974.06 |
| Cash paid for settling debts | 1,131,967,080.14 | 518,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 316,626,529.97 | 76,787,308.98 |
| Other cash paid concerning financing activities | 7,491,686.80 | 48,994,977.36 |
| Subtotal of cash outflow from financing activities | 1,456,085,296.91 | 643,782,286.34 |
| Net cash flows arising from financing activities | -495,966,084.26 | 190,032,687.72 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -1,950,942.84 | 2,973,726.15 |
| V. Net increase of cash and cash equivalents | -1,024,804,189.46 | 385,531,543.36 |
| Add: Balance of cash and cash equivalents at the period -begin | 4,746,147,736.99 | 3,086,968,775.61 |
| VI. Balance of cash and cash equivalents at the period -end | 3,721,343,547.53 | 3,472,500,318.97 |
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | Semi-annual of 2024 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,805,503,457.77 | -20,704,362.05 | 11,246,811.91 | 477,053,194.82 | 1,521,759,836.64 | 5,824,782,654.09 | 369,252,132.37 | 6,194,034,786.46 | ||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,805,503,457.77 | -20,704,362.05 | 11,246,811.91 | 477,053,194.82 | 1,521,759,836.64 | 5,824,782,654.09 | 369,252,132.37 | 6,194,034,786.46 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -1,173,618.69 | 3,207,366.13 | 106,056,301.38 | 108,090,048.82 | 5,214,743.84 | 113,304,792.66 | |||||||||
| (i) Total comprehensive income | -1,173,618.69 | 415,033,415.88 | 413,859,797.19 | 9,827,834.93 | 423,687,632.12 | ||||||||||
| (ii) Owners’ devoted and decreased | |||||||||||||||
| capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | -308,977,114.50 | -308,977,114.50 | -5,083,093.40 | -314,060,207.90 | |||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -308,977,114.50 | -308,977,114.50 | -5,083,093.40 | -314,060,207.90 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share |
| capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | 3,207,366.13 | 3,207,366.13 | 470,002.31 | 3,677,368.44 | |||||||||||
| 1. Withdrawal in the report period | 17,312,570.32 | 17,312,570.32 | 878,578.37 | 18,191,148.69 | |||||||||||
| 2. Usage in the report period | 14,105,204.19 | 14,105,204.19 | 408,576.06 | 14,513,780.25 | |||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,805,503,457.77 | -21,877,980.74 | 14,454,178.04 | 477,053,194.82 | 1,627,816,138.02 | 5,932,872,702.91 | 374,466,876.21 | 6,307,339,579.12 |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang JunLast Period
In RMB
| Item | Semi-annual of 2023 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capit | Other | |||||||||||||
| al securities | |||||||||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,806,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,201,471.98 | 909,082,037.66 | 5,168,286,872.09 | 370,748,395.26 | 5,539,035,267.35 | ||||||
| Add: Changes of accounting policy | 17,219.50 | 167,328.13 | 184,547.63 | -8,145.54 | 176,402.09 | ||||||||||
| Error correction of the last period | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,806,493,904.30 | -20,881,462.63 | 2,467,205.78 | 441,218,691.48 | 909,249,365.79 | 5,168,471,419.72 | 370,740,249.72 | 5,539,211,669.44 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 2,021,916.55 | 9,648,600.83 | 265,361,710.39 | 277,032,227.77 | -3,634,481.73 | 273,397,746.04 | |||||||||
| (i) Total comprehensive income | 2,021,916.55 | 358,054,844.74 | 360,076,761.29 | 12,120,459.17 | 372,197,220.46 | ||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based |
| payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | -92,693,134.35 | -92,693,134.35 | -16,677,010.63 | -109,370,144.98 | |||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -92,693,134.35 | -92,693,134.35 | -16,677,010.63 | -109,370,144.98 | |||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other |
| (v) Reasonable reserve | 9,648,600.83 | 9,648,600.83 | 922,069.73 | 10,570,670.56 | |||||||||||
| 1. Withdrawal in the report period | 15,558,156.14 | 15,558,156.14 | 1,133,609.06 | 16,691,765.20 | |||||||||||
| 2. Usage in the report period | 5,909,555.31 | 5,909,555.31 | 211,539.33 | 6,121,094.64 | |||||||||||
| (vi) Others | |||||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,806,493,904.30 | -18,859,546.08 | 12,115,806.61 | 441,218,691.48 | 1,174,611,076.18 | 5,445,503,647.49 | 367,105,767.99 | 5,812,609,415.48 |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Item | Semi-annual of 2024 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,740,508,510.57 | 505,111.75 | 476,835,029.14 | 1,294,109,238.10 | 5,541,881,604.56 | ||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,740,508,510.57 | 505,111.75 | 476,835,029.14 | 1,294,109,238.10 | 5,541,881,604.56 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 825,666.62 | -193,696,104.19 | -192,870,437.57 | |||||||||
| (i) Total comprehensive income | 115,281,010.31 | 115,281,010.31 | ||||||||||
| (ii) Owners’ devoted and | ||||||||||||
| decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | -308,977,114.50 | -308,977,114.50 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -308,977,114.50 | -308,977,114.50 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | 825,666.62 | 825,666.62 | ||||||||||
| 1. Withdrawal in the report period | 4,842,286.80 | 4,842,286.80 | ||||||||||
| 2. Usage in the report period | 4,016,620.18 | 4,016,620.18 | ||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,740,508,510.57 | 1,330,778.37 | 476,835,029.14 | 1,100,413,133.91 | 5,349,011,166.99 |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang JunLast period
In RMB
| Item | Semi-annual of 2023 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 1,029,923,715.00 | 2,740,508,510.57 | 687,069.38 | 440,983,306.30 | 1,064,136,866.98 | 5,276,239,468.23 | ||||||
| Add: Changes of accounting policy | 17,219.50 | 154,975.45 | 172,194.95 | |||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 1,029,923,715.00 | 2,740,508,510.57 | 687,069.38 | 441,000,525.80 | 1,064,291,842.43 | 5,276,411,663.18 | ||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 1,544,823.02 | 78,388,703.87 | 79,933,526.89 | |||||||||
| (i) Total comprehensive income | 171,081,838.22 | 171,081,838.22 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | -92,693,134.35 | -92,693,134.35 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -92,693,134.35 | -92,693,134.35 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans |
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | 1,544,823.02 | 1,544,823.02 | ||||||||||
| 1. Withdrawal in the report period | 4,278,881.39 | 4,278,881.39 | ||||||||||
| 2. Usage in the report period | 2,734,058.37 | 2,734,058.37 | ||||||||||
| (vi) Others | ||||||||||||
| IV. Balance at the end of the period | 1,029,923,715.00 | 2,740,508,510.57 | 2,231,892.40 | 441,000,525.80 | 1,142,680,546.30 | 5,356,345,190.07 |
Legal Representative: Wu Dinggang Person in charge of accounting works: Pang Haitao Person in charge of accounting institute: Yang Jun
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
I. Company profileChanghong 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 GeneralFactory and approved on June 12
th1992 through [WanTiGaiHanZi (1992) No.039] issued by originalMechanism Reform Committee of Anhui Province. On August 30
th1993, through Anhui ProvincialGovernment [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. 18
th
, 1993 inShenzhen Stock Exchange. On August 13
th, 1996, the Company was approved to issue 100 million B shares toinvestors abroad through [ZhengWeiFa (1996) No.26] issued by China Securities Regulatory Commission. TheCompany went public in Shenzhen Stock Exchange on August 28
th, 1996.State-owned Assets Supervision & Administration Commission of the State Council approved such transferswith Document Guozi Chanquan (2007) No.253 Reply on Matters of Hefei Meiling Group Holdings LimitedTransferring Partial State-owned Ownership, Hefei Meiling Group Holdings Limited (hereinafter referred toas Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Companyto Sichuan Changhong Electronic Group Co., Ltd (hereinafter referred to as Changhong Group), other45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter referred to as Sichuan Changhong). OnAug 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 madeconsideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and originalMeiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration forsplit reform plan.On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the “Noticeof Freely Transfer of Meiling Electrics Equity held by Meiling Group”[HGZCQ(2008) No. 59] issued fromState-owned Assets Supervision & Administration Commission of Hefei Municipal, agrees to transfer theabove said shares to Hefei Xingtai Holding Group Co., Ltd.(“Xingtai Holding Co.,”) for free. On 7 August2008, the “Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-ownedshareholders” [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 withSichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the Company(accounting for 7.76% in total shares) held by Changhong Group. On 23 December 2008, “Reply of TransferFreely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-owned shareholders” [GZCQ (2008) No.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
1413] issued by SASAC agrees the above said share transferring.On 24 December 2010, being deliberated and approved in 32
nd Session of 6
th BOD and 2
ndExtraordinaryShareholders’ General Meeting of 2010 as well as approval of document [ZJXK (2010) No. 1715] from CSRC,totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors with issue priceof RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses RMB22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital (share capital)increased RMB 116,731,500 with capital reserve (share premium) RMB 1,061,106,088.5 increased. Theincreasing capital has been verified by Capital Verification Report No.: ［XYZH2010CDA6021］issued fromShin Wing CPA Co., Ltd.On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distributionplan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares heldby shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. Thecapital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification reportWHSZDKYZ (2011) No.141.On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distributionand capitalization of capital reserve plan, namely to distribute cash dividends of RMB0.5 (tax included) plustwo shares for every ten shares to all shareholders capitalized from capital reserve, based on the total sharecapital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company uponimplementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 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 12
th Session of the 8
thBOD of the company and thefirst 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 of HefeiMeiling Co., Ltd.”, the company has actually raised funds of 1,569,999,998.84 yuan by non-public offering ofno more than 334,042,553 new shares at face value of 1 yuan per share and with issue price no less than 4.70yuan per share, after deducting the issue costs of 29,267,276.08 yuan, the net amount of raised funds is1,540,732,722.76 yuan, the increased paid-in capital (share capital) of 280,858,676.00 yuan, increased capitalreserve (share premium) of 1,259,874,046.76 yuan. This capital increase has been verified by No.［XYZH2016CDA40272］capital verification report of Shine Wing Certified Public Accountants (LLP).Since the first repurchase of shares on November 4, 2020, the company had cumulatively repurchased14,674,166 shares of the company (B shares) in centralized bidding transactions through the special securitiesaccount for repurchase until February 18, 2022, and completed the cancellation procedures of the repurchasedshares at the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. on March 2, 2022, a totalof 14,674,166 shares of the company (B shares) were cancelled, accounting for 1.4048% of the company's total
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
share capital before cancellation. After the cancellation, the total share capital of the company was reducedfrom 1,044,597,881 shares to 1,029,923,715 shares.Ended as June 30, 2024, total share capital of the Company amounting to 1,029,923,715shares with ordinaryshares in full. Among which, 881,733,881 shares of A-share accounting 85.61% in total shares while B-sharewith 148,189,834 shares accounting 14.39% in total shares. Specific capital structure is as follows:
| Type of stock | Quantity | Proportion |
| (I)Restricted shares | 6,510,535 | 0.63 |
| 1. State-owned shares | ||
| 2. State-owned legal person’s shares | 1,141,053 | 0.11 |
| 3. Other domestic shares | 5,369,482 | 0.52 |
| Including: Domestic legal person’s shares | 3,363,539 | 0.33 |
| Domestic natural person’s shares | 2,005,943 | 0.19 |
| 4. Foreign shares | ||
| (II)Unrestricted shares | 1,023,413,180 | 99.37 |
| 1. RMB Ordinary shares | 875,223,346 | 84.98 |
| 2. Domestically listed foreign shares | 148,189,834 | 14.39 |
| 3. Overseas listed foreign shares | ||
| 4. Others | ||
| Total shares | 1,029,923,715 | 100.00 |
The Company belongs to the manufacture of light industry, and engaged in the production and sale ofrefrigerator, freezer and air-conditioner. Unified social credit code of the Company: 9134000014918555XK;Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; LegalRepresentative: Wu Dinggang; register capital (paid-in capital): 1,029,923,715 yuan; type of company: limitedliability company(joint venture and listed of Taiwan, Hong Kong and Macao).
This financial statement was approved by the Board of Directors of the Company on August 15, 2024.II. Basis for preparation of financial statement
1.Basis for preparation
According to the actual transactions and matters, the Company's financial statements are prepared inaccordance with the Accounting Standards for Business Enterprises and its application guidelines, explanationsand other relevant provisions (hereinafter referred to as "Accounting Standards for Business Enterprises")promulgated by the Ministry of Finance, as well as the disclosure-related provisions of No.15 Rules onInformation Disclosure and Compilation of Companies Offering Securities to the Public - General Provisionson Financial Reports (revised in 2023) issued by China Securities Regulatory Commission (hereinafter referredto as "CSRC").
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
2.Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting, andprepared the financial statement on basis of going concern is reasonable.III. Significant Accounting Policy and accounting EstimationSpecific accounting policies and accounting estimates tips: The specific accounting policies and accountingestimates formulated by the company according to the actual production and operation characteristics includereceivables provisions for bad debts, inventory depreciation provisions, capitalization conditions of R & Dexpenses, revenue recognition and measurement, etc.
1. Statement on observation of accounting standards for enterprise
The financial statements prepared by the Company meet the requirements of the Accounting Standards forBusiness Enterprises, and truly, accurately and completely reflect the financial status of the Company on June30, 2024, as well as the operating results and cash flow first half-year of 2024 .
2.Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3.Operation cycle
Operation cycle of the Company was 12 months, and it is the standard of flow classification for assets andliabilities.
4.Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
5.Determination method and selection basis of importance standard
The Company follows the principle of materiality in preparing and disclosing financial statements. The mattersdisclosed in the notes to the financial statements involving judgement by materiality standard, and thedetermination method and selection basis of materiality standard are as follows:
| Matters disclosed involving the judgment by materiality standards | Determination method and selection basis of importance standard |
| Recovery or reversal of important accounts receivable bad debt reserves | The individual recovery or reversal amount accounts for more than 10% of the total recovery or reversal amount of accounts receivable, and the amount is greater than RMB 10 million |
| Actual write off of important accounts receivable | The single item write off amount accounts for more than 10% of the total bad debt write off amount of various receivables, and the amount is greater than 5 million yuan |
| Important accounts receivable with single provision for bad debt reserves | The single provision amount accounts for 10% of the total bad debt provision for various accounts receivable and is greater than RMB 50 million |
| Important debt investment | Single debt investment accounts for 5% of the total debt investment and the amount is greater than RMB 20 million |
| Significant changes in the book value of contract assets | The change in the book value of contract assets accounts for more than 30% of the initial balance of contract assets |
| Material construction in progress | The budget of a single project is more than RMB 50 million |
| Material capitalized R&D projects | The budget of a single project is more than RMB 20 million |
| Material contractual liabilities with an age of more than one year | Contractual liabilities with a single aging of more than one year account for more than 10% of the total contractual liabilities and are more than RMB 50 million |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Matters disclosed involving the judgment by materiality standards | Determination method and selection basis of importance standard |
| Significant changes in the book value of contractual liabilities | The change in the book value of contractual liabilities accounts for more than 30% of the initial balance of contractual liabilities |
| Important accounts payable | Accounts payable with a single account age exceeding 1 year account for more than 5% of the total accounts payable and with an amount greater than RMB 100 million |
| Important other payables | Other payables with a single account age exceeding 1 year account for more than 5% of the total other payables and an amount greater than RMB 50 million |
| Important non wholly-owned subsidiaries | Subsidiary net assets account for over 1% of the company's net assets |
| Important joint ventures or associates | The book value of long-term equity investments in a single invested entity accounts for more than 1% of the company's net assets and the amount is greater than RMB 50 million, or the investment gains and losses under the equity method account for more than 1% of the company's consolidated net profit |
| Important investment activities | Individual investment activities account for more than 10% of the total cash inflows or outflows related to received or paid investment activities, and the amount is greater than RMB 100 million |
| Significant activities that do not involve current cash inflows and outflows | Not involving current cash inflows and outflows, with an impact on the current financial statements greater than 10% of net assets |
6.Accountant arrangement method of business combination under common control and not under commoncontrolAs acquirer, the Company measures the assets and liabilities acquired through business combination undercommon control at their carrying values as reflected in the consolidated financial statement of the ultimatecontroller as of the combination date. Capital reserve shall be adjusted in respect of any difference betweencarrying value of the net assets acquired and carrying value of the combination consideration paid. In case thatcapital reserve is insufficient to offset, the Company would adjust retained earnings.The acquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business combinationnot under common control shall be measured at fair value as of the acquisition date. The cost of combinationrepresents the fair value of the cash or non-cash assets paid, liabilities issued or committed and equity securitiesissued by the Company as at the date of combination in consideration for acquiring the controlling power inthe acquiree, together with the sum of any directly related expenses occurred during business combination(incase of such business combination as gradually realized through various transactions, the combination costrefers to the sum of each cost of respective separate transaction). Where the cost of the combination exceedsthe acquirer’s interest in the fair value of the acquirer’s identifiable net assets acquired, the difference isrecognized as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value ofthe acquiree’s identifiable net assets, the Company shall firstly make further review on the fair values of thenet identifiable assets, liabilities or contingent liabilities acquired as well as the fair value of the non-cash assetsportion of combination consideration or the equity securities issued by the Company. In case that the Companyfinds the cost of combination is still lower than the acquirer’s interest in the fair value of the acquiree’sidentifiable net assets after such further review, the difference is recognized in non-operating income for thecurrent period when combination occurs.
7.Criteria for Control and Preparation Method of Consolidated Financial StatementsControl means that the Company has the power over the investee, enjoys variable returns by participating inthe related activities of the investee, and has the ability to influence the amount of returns by using the power
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
over the investee.The Company shall put all the subsidiaries controlled and main body structured into consolidated financialstatements.Any difference arising from the inconformity of accounting year or accounting policies between thesubsidiaries and the Company shall be adjusted in the consolidated financial statements.All the material inter-company transactions, non-extraordinary items and unrealized profit within thecombination scope are written-off when preparing consolidated financial statement. Owners’ equity ofsubsidiary not attributable to parent company and current net gains and losses, other comprehensive incomeand total comprehensive income attributable to minority shareholders are recognized as non-controllinginterests, minority interests, other comprehensive income attributable to minority shareholders and totalcomprehensive income attributable to minority shareholders in consolidated financial statement respectively.As for subsidiary acquired through business combination under common control, its operating results and cashflow will be included in consolidated financial statement since the beginning of the period when combinationoccurs. When preparing comparative consolidated financial statement, the relevant items in previous yearsfinancial statement shall be adjusted as if the reporting entity formed upon combination has been existing sincethe ultimate controller commenced relevant control.As for equity interests of the investee under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accounting treatmentin 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 whicheventually formed business combination, adjustments shall be made as if the current status had been existingwhen 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 andliabilities of the acquiree into the Company’s comparative consolidated financial statement to the extent notearlier than the timing when the Company and the acquiree are all under control of the ultimate controller, andthe net assets increased due to combination shall be used to adjust relevant items under owners’ equity incomparative statement. In order to prevent double computation of the value of the acquiree’s net assets, therelevant profits and losses, other comprehensive income and change of other net assets recognized during theperiod from the date when the Company acquires original equity interests and the date when the Company andthe acquiree are all under ultimate control of the same party (whichever is later) to the date of combination inrespect of the long-term equity investment held by the Company before satisfaction of combination shall beutilized to offset the beginning retained earnings and current gains and losses in the period as the comparativefinancial statement involves, respectively.As for subsidiary acquired through business combination not under common control, its operating results andcash 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 statementbased on the fair value of the various identifiable assets, liabilities or contingent liabilities recognized as of theacquisition date.As for equity interests of the investee not under common control acquired through various transactions whicheventually formed business combination, the Company shall supplement disclosure of the accounting treatmentin 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 whicheventually formed business combination, when preparing consolidated financial statement, the Company
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
would re-measure the equity interests held in the acquiree before acquisition date at their fair value as of theacquisition date, and any difference between the fair value and carrying value is included in current investmentincome. in case that the equity interests in acquiree held by the Company before the relevant acquisition dateinvolves other comprehensive income at equity method and change of other owners’ equity (other than netgains and losses, other comprehensive income and profit distribution), then the equity interests would transferto investment gains and losses for the period which the acquisition date falls upon. The other comprehensiveincome arising from change of the net liabilities or net assets under established benefit scheme as acquiree’sre-measured such scheme is excluded.The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary withoutlosing control rights over the subsidiary, the difference between the proceeds from disposal of interests and thedecrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In casecapital 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 wouldre-measure the remaining equity interests at their fair value as of the date when the Company loses controlover the investee when preparing consolidated financial statement. The sum of consideration received fromdisposal of equity interest and fair value of the remaining equity interest, less the net assets of the originalsubsidiary attributable to the Company calculated based on the original shareholding proportion since theacquisition date or the date then consolidation commences, is included in investment gains and losses for theperiod when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equityinterest investment in original subsidiaries is transferred into current investment gains and losses upon lost ofcontrol.If the disposal of the equity investment of subsidiary is realized through multi pletran section sunlit loss ofcontrol and is a pack age deal. the accounting treatment of the sterna sections should be dealt with as onetransaction of disposal of the subsidiary until loss of control. However, before the Company loses total controlof the subsidiary, the differences between the actual disposal price and the share of the net assets of thesubsidiary disposed of in every transaction should be recognized as other comprehensive income in theconsolidated financial statements, and transferred to profit or loss when losing control.
8. Accounting treatment for joint venture arrangement and joint controlled entityThe joint venture arrangement of the Company consists of joint controlled entity and joint venture. As forjointly controlled entity, the Company determines the assets held and liabilities assumed separately as a partyto the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and recognizesrelevant income and expense separately under relevant agreement or according to its proportion. As for assettransaction relating to purchase and sales with the jointly controlled entity which does not constitute businessactivity, part of the gains and losses arising from such transaction attributable to other participators of thejointly controlled entity is only recognized.
9.Cash and cash equivalents
Cash in the cash flow statement comprises the Group’s cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, that arereadily convertible to known amounts of cash and which are subject to an in significant risk of changes invalue.
10. Foreign currency business and foreign currency financial statement conversion
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amountpursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items expressedby 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 whichis made according to capitalization rules for the exchange difference occurred from the special foreign currencyborrowings borrowed for constructing and producing the assets satisfying condition of capitalization. As forthe foreign currency non-monetary items measured by fair value, the amount is then converted into RMBaccording to the spot exchange rate as of the confirmation day for fair value. And the conversion differenceoccurred during the procedure is recorded into prevailing gains and losses directly as change of fair value. Asfor the foreign currency non-monetary items measured by historical cost, conversion is made with the spotexchange 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 foreigncurrency balance sheet; as for the items in statement of owners’ equity except for “Retained profit”, conversionis made pursuant to the spot exchange rate of business day; income and expense items in income statementthen are also converted pursuant to the spot exchange rate of transaction day. Difference arising from theaforementioned conversions shall be listed separately in items of owners’ equity. Spot exchange rate as of theoccurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount of cashaffected by exchange rate movement shall be listed separately in cash flow statement.
11. Financial assets and liabilities
A financial asset or liability is recognized when the group becomes a party to a financial instrument contract.The financial assets and financial liabilities are measured at fair value on initial recognition. For the financialassets and liabilities measured by fair value and with variation reckoned into current gains/losses, the relatedtransaction expenses are directly included in current gains or losses; for other types of financial assets andliabilities, the related transaction costs are included in the initial recognition amount.
(1) Method for determining the fair value of financial assets and financial liabilitiesFair value refers to the price that a market participant can get by selling an asset or has to pay for transferringa liability in an orderly transaction that occurs on the measurement date. For a financial instrument having anactive market, the Company uses the quoted prices in the active market to determine its fair value. Quotationsin 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 lengthtransaction. If there is no active market for a financial instrument, the Company uses valuation techniques todetermine its fair value. Valuation techniques include reference to prices used in recent market transactions byparties familiar with the situation and through voluntary trade, and reference to current fair values of otherfinancial 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 atamortized cost; the financial assets measured at fair value and whose changes are included in othercomprehensive income; and the financial assets measured by fair value and with variation reckoned into current
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
gains/losses. The classification of financial assets depends on the business model that the Group's enterprisesmanage 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 followingconditions: 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 paidfor the principal and interest based on the outstanding principal amount. For such financial assets, the effectiveinterest method is used for subsequent measurement according to the amortized cost, and the gains or lossesarising from amortization or impairment are included in current profits and losses. Such financial assets mainlyinclude 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 debtinvestment 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 incomeFinancial assets are classified as financial assets measured at fair value and whose changes are included inother comprehensive income when they also meet the following conditions: The Group's business model formanaging the financial assets is targeted at both the collection of contractual cash flows and the sale of financialassets; the contractual terms of the financial asset stipulate that the cash flow generated on a specific date isonly the payment of the principal and the interest based on the outstanding principal amount. For such financialassets, fair value is used for subsequent measurement. The discount or premium is amortized by using theeffective interest method and is recognized as interest income or expenses. Except the impairment losses andthe exchange differences of foreign currency monetary financial assets are recognized as the current profitsand losses, the changes in the fair value of such financial assets are recognized as other comprehensive incomeuntil the financial assets are derecognized, the accumulated gains or losses are transferred to the current profitsand losses. Interest income related to such financial assets is included in the current profit and loss. Suchfinancial assets are listed as other debt investments, other debt investments due within one year (including oneyear) from the balance sheet date are listed as non-current assets due within one year; and other debtinvestments with time limit within one year (including one year) when acquired are listed as other currentassets.
3) Financial assets measured at fair value and whose changes are included in current gains/lossesFinancial assets except for the above-mentioned financial assets measured at amortized cost and financialassets measured at fair value and whose changes are included in other comprehensive income are classified asfinancial assets measured at fair value and whose changes are included in current profits and losses, whichadopt fair value for subsequent measurement and all changes in fair value are included in current profits andlosses. The Group classifies non-trading equity instruments as financial assets measured at fair value and whosechanges 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 asother non-current financial assets.
(3) Devaluation of financial instrument
On the basis of expected credit losses, the Group performs impairment treatment on financial assets measuredat amortized cost and financial assets measured at fair value and whose changes are included in other
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
comprehensive income and recognize the provisions for loss.Credit loss refers to the difference between all contractual cash flows that the Company discounts at the originalactual 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 thathave suffered credit impairment, the Company discounts the financial assets at the actual interest rate adjustedby credit.The Group considers all reasonable and evidenced information, including forward-looking information, basedon credit risk characteristics. When assessing the expected credit losses of receivables, they are classifiedaccording to the specific credit risk characteristics as follows:
1) For receivables and contractual assets and lease receivables (including significant financing componentsand not including significant financing components), the Group measures the provisions for loss based on theamount of expected credit losses equivalent to the entire duration.
①Evaluate expected credit losses based on individual items: credit notes receivable (including accepted lettersof 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 dismantlingsubsidies) in other receivables, and receivables with significant financing components (i.e. long-termreceivables);
②The 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 characteristicsand ageing combination cannot reasonably reflect its expected credit loss, the current value of the expectedfuture cash flow is measured by a single item, and the cash flow shortage is directly written down the bookbalance of the financial asset.The Group considers all reasonable and evidenced information, including forward-looking information, whenassessing expected credit losses. When there is objective evidence that its customer credit characteristics andageing combination cannot reasonably reflect its expected credit loss, the current value of the expected futurecash flow is measured by a single item, and the cash flow shortage is directly written down the book balanceof the financial asset.
2) Assess the expected credit losses on a case-by-case basis for other assets to which the financial instrumentsare impaired, such as the loan commitments and financial guarantee contracts that are not measured at fairvalue through profit or loss, financial assets measured at fair value and whose changes are recognized in othercomprehensive income; other financial assets measured at amortized cost (such as other current assets, othernon-current financial assets, etc.).
(4) Reorganization basis and measure method for transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition: ① The contract rightsof collecting cash flow of the financial assets is terminated; ②The financial assets has already been transferred,and the Company has transferred almost all risks and remunerations of financial assets ownership to thetransferee; ③The financial assets has been transferred, even though the Company has neither transferred norkept almost all risks and remunerations of financial assets ownership, the Company has given up controllingthe financial assets.If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets ownership,
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
nor given up controlling the financial assets, then confirm the relevant financial assets according to how itcontinues to involve into the transferred financial assets and confirm the relevant liabilities accordingly. Theextent of continuing involvement in the transferred financial assets refers to the level of risk arising from thechanges in financial assets value faced by the enterprise.If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between thebook value of the transferred financial assets and the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the currentprofits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value ofthe transferred financial assets between the derecognized parts and the parts not yet derecognized according toeach relative fair value, and reckon the balance between the sum of consideration received from transfer andfluctuation accumulated amount of fair value formerly reckoned in other consolidated income that should beapportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the currentprofits and losses.When the Group sells financial assets adopting the mode of recourse, or endorses and transfers its financialassets, it is necessary to ensure whether almost all the risks and rewards of ownership of the financial assetshave been transferred. If almost all the risks and rewards of ownership of the financial assets have beentransferred to the transferee, the financial assets shall be derecognized; if almost all the risks and rewards ofownership of the financial assets are retained, the financial assets shall not be derecognized; if almost all therisks and rewards of ownership of the financial assets are neither transferred nor retained, continue to judgewhether the company retains control over the assets, and conduct accounting treatment according to theprinciples 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 intocurrent gains/losses and other financial liability at initially measurement.
① the financial liability measured by fair value and with variation reckoned into current gains/lossesThe conditions to be classified as trading financial liabilities and as financial liabilities designated to bemeasured at fair value and whose changes are included in current profit or loss at the initial recognition areconsistent with the conditions to be classified as trading financial assets and as financial assets designated tobe 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 aresubsequently measured at fair value, and the gain or loss arising from changes in fair value and the dividendsand interest expense related to these financial liabilities are included in current profit or loss.
② Other financial liability
It must go through the delivery of the derivative financial liabilities settled by the equity instrument tolink to the equity instruments that are not quoted in an active market and whose fair value cannot be reliablymeasured, and the subsequent measurement is carried out in accordance with the cost. Other financial liabilitiesare subsequently measured at amortized cost by using the effective interest method. The gain or loss arisingfrom derecognition or amortization is included in current profit or loss.
③Financial guarantee contract
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
The financial guarantee contract of a financial liability which is not designated to be measured at fairvalue through profit or loss is initially recognized at fair value, and its subsequent measurement is carried outby the higher one between the amount confirmed in accordance with the Accounting Standards for BusinessEnterprises No. 13 — Contingencies after initial recognition and the balance after deducting the accumulatedamortization amount determined in accordance with the principle of Accounting Standards for BusinessEnterprises 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 currentobligation of the financial liability has been discharged. The Group (debtor) and the creditor sign an agreementto replace the existing financial liabilities with new financial liabilities, and if the contract terms of the newfinancial 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 financialliability is terminated for recognized in whole or in part, the difference between the carrying amount of the partthat terminated for recognized and the consideration paid (including the transferred non-cash assets or theassumed 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 andsuch legal right is currently enforceable, and the Company plans to settle the financial asset on a net basis orto realize the financial asset and settle the financial liability simultaneously, the financial asset and the financialliability are presented in the balance sheet at their respective offsetting amounts. In addition, the financial assetsand 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 subsequentlymeasured at fair value. Except for derivatives that are designated as hedging instruments and are highlyeffective in hedging, the gains or losses arising from changes in fair value will be determined based on thenature of the hedging relationship in accordance with the requirements of the hedge accounting and be includedin the period of profit and loss, other changes in fair value of derivatives are included in current profits andlosses. For a hybrid instrument that includes an embedded derivative, if it is not designated as a financial assetor financial liability measured at fair value and whose changes are included in current profit or loss, theembedded derivative does not have a close relationship with the main contract in terms of economiccharacteristics and risks, and as with embedded derivatives, if the tools existing separately conform to thedefinition of the derivatives, the embedded derivatives are split from the hybrid instruments and are treated asseparate derivative financial instruments. If it is not possible to measure the embedded derivative separately atthe time of acquisition or subsequent balance sheet date, the whole hybrid instrument is designated as afinancial asset or financial liability measured at fair value and whose changes are included in current profitsand losses.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the deductionof all liabilities in the Group. The Company issues (including refinancing), repurchases, sells or cancels equityinstruments as movement of equity. No fair value change of equity instrument would be recognized by theCompany. Transaction costs associated with equity transactions are deducted from equity. The Group's variousdistributions to equity instrument holders (excluding stock dividends) reduce shareholders' equity.
12. Inventory
Inventories of the Company principally include raw materials, stock goods; work in process, self-made semi-finished product, materials consigned to precede, low-value consumption goods, goods in transit, goods inprocess, mould and contract performance costs.Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for rawmaterials, low-value consumption goods and stock goods. Switch-back cost of the current month is adjustedby distribution price difference at the end of the month, the dispatched goods will share the cost differences ofinventory while in settlement the business income; and low-value consumption goods is carried forward atonce 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.Theprovision for inventory depreciation shall be drawn from the difference between the book cost of a singleinventory item and its net realizable value, and the provision for inventory depreciation shall be recorded intothe current profit and loss.
13. Contract assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration after transferring goods to customers,and this right depends on factors other than the passage of time. If the Company sells two clearlydistinguishable commodities to a customer and has the right to receive payment because one of thecommodities 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 assetsFor the determination method for expected credit loss of contract assets, please refer to the above-mentionedAccounting treatment methods for financial instrument impairment. The Company calculates the expectedcredit loss of contract assets on the balance sheet date, if the expected credit loss is greater than the book valueof provision for impairment of contract assets, the Company shall recognize the difference as an impairmentloss, debiting the "asset impairment loss" and crediting the "contract asset impairment provision". On thecontrary, the Company shall recognize the difference as an impairment gain and keep the opposite accountingrecords.If the Company actually incurs credit losses and determines that the relevant contract assets cannot berecovered, 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 theprovision for loss that has been withdrawn, the "asset impairment loss" is debited based on the difference.
14. Contract cost
(1) The method of determining the amount of assets related to the contract cost
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
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, thosethat do not fall within the scope of other accounting standards and meet the following conditions at the sametime are recognized as as an asset as the contract performance cost: the cost is directly related to a current orexpected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costsclarified to be borne by the customer, and other costs incurred solely due to the contract; this cost increases theCompany's future resources for fulfilling the contract's performance obligations; this cost is expected to berecovered.Contract acquisition cost is the incremental cost incurred by the Company to obtain the contract, those that areexpected to be recovered are recognized as the contract acquisition cost as an asset; if the asset amortizationperiod does not exceed one year, it shall be included in the current profit and loss when it occurs. Incrementalcost refers to the cost (such as sales commission, etc.) that will not incur if the Company doesn’t obtain thecontract. The Company’s expenses (such as travel expenses incurred regardless of whether the contract isobtained) incurred for obtaining the contract other than the incremental costs expected to be recovered areincluded in the current profits and losses when they are incurred, except those are clarified to be borne by thecustomer.
(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 commodityincome 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 theimpairment loss of other assets related to the contract that are confirmed in accordance with other relevantaccounting standards for business enterprises; then based on the difference between the book value of whichis higher than the remaining consideration that the Company is expected to obtain due to the transfer of thecommodity related to the asset and the estimated cost of transferring the related commodity, the excess shallbe 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 behigher than the book value of the asset, the original provision for asset impairment shall be reversed andincluded in the current profit and loss, but the book value of the asset after the reversal shall not exceed thebook value of the asset on the reversal date under the assumption that no impairment provision is made.
15.Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment in associatesand investment in joint-ventures.For long-term equity investments acquired through business combination under common control, the initialinvestment cost shall be the acquirer’s share of the carrying amount of net assets of the acquiree as of thecombination date as reflected in the consolidated financial statement of the ultimate controller. If the carryingamount of net assets of the acquiree as of the combination date is negative, the investment cost of long-termequity investment shall be zero. For long-term equity investment acquired through business combination notunder common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of long-term equity investment acquired through cash payment, for which the actual payment for the purchase shall be
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
investment cost; If Long-term equity investments are acquired by issuing equity securities, fair value of issuingequity 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 equityinvestment which is acquired through debt reorganization and non-monetary assets exchange, regulations ofrelevant 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, andcost of the investment is adjusted when making additional investment or writing off investment; Whencalculated by equity method, current investment gains and losses represent the proportion of the net gains andlosses realized by the invested unit in current year attributable to or undertaken by the investor. When theCompany is believed to enjoy proportion of net gains and losses of invested unit, gains and losses attributableto the Company according to its shareholding ratio is to computer out according to the accounting policy andaccounting period of the Company, on the basis of the fair value of various recognizable assets of the investedunit as at the date of obtaining of the investment, after offset of gains and losses arising from internaltransactions with associates and joint-ventures, and finally to make confirmation after adjustment of net profitof the invested unit. Confirmation on gains and losses from the long-term equity investment in associates andjoint-ventures held by the Company prior to the first execution day, could only stand up with the precedentcondition that debit balance of equity investment straightly amortized according to its original remaining termhas already been deducted, if the aforementioned balance relating to the investment do exist.In case that investor loses joint control or significant influence over investee due to disposal of part equityinterest investment, the remaining equity interest shall be calculated according to Accounting Standards forBusiness Enterprise No.22-Recognition and Measurement of Financial Instrument. Difference between the fairvalue of the remaining equity interest as of the date when loss of joint control or significant influence and thecarrying value is included in current gains and losses. Other comprehensive income recognized in respect ofthe original equity interest investment under equity method should be treated according to the same basis whichthe investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity methodcalculation; and also switches to cost method for calculating the long-term equity investments which entitlesthe Company to have conduct control over the invested units due to its additional investments; and switches toequity method for calculating the long-term equity investments which entitles the Company to conductcommon control or significant influence, while no control over the invested units due to its additionalinvestments, or the long-term equity investments which entitles the Company with no control over the investedunits any longer while with common control or significant influence.When disposing long-term equity investment, the balance between it carrying value and effective price forobtaining shall be recorded into current investment income. When disposing long-term equity investmentwhich is calculated by equity method, the proportion originally recorded in owners’ equity shall be transferredto current investment income according to relevant ratio, except for that other movements of owners’ equityexcluding net gains and losses of the invested units shall be recorded into owners’ equity
16. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value by itscost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes and otherexpenditure which is attributable to the assets directly; while cost of self-built investment real estate is formedwith all necessary expenditures occurred before construction completion of the assets arriving at the estimated
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
utilization state.Consequent measurement of investment estate shall be measured by cost method. Depreciation is providedwith average service life method pursuant to the predicted service life and net rate of salvage value. Thepredicted service life and net rate of salvage value and annual depreciation are listed as follows:
| Category | Depreciation term(Year) | Predicted rate of salvage value (%) | Depreciation rate per annual (%) |
| House and buildings | 30-40 years | 4%-5% | 2.375%-3.20% |
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assetscommencing from the date of such turning. And when self-used real estate turns to be leased out for rental oradditional capital, the fixed assets or intangible assets shall switch to investment real estate commencing fromthe date of such turning. In situation of switch, the carrying value before the switch shall be deemed as thecredit value after the switch.When investment real estate is disposed, or out of utilization forever and no economic benefit would bepredicted to obtain through the disposal, the Company shall terminate recognition of such investment realestate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estateafter deducting the asset’ s carrying value and relevant taxation shall be written into current gains and losses.
17.Fixed assets
Fixed assets of the Company are tangible assets that are also held for the production of goods, provision ofservices, rental or management of operations, have a useful life of more than one year and have a unit value ofmore than 2,000 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 occursbefore the fixed assets arrive at the state of predicted utilization and which could be directly attributable to theassets; while cost of self-built fixed asset is formed with all necessary expenditures occurred beforeconstruction completion of the assets arriving at the estimated utilization state; credit value of the fixed assetsinjected by investors is determined based on the agreed value of investment contracts or agreements, while asfor the agreed value of investment contracts or agreements which is not fair, it shall take its fair value as creditvalue; and for fixed assets which are leased in through finance leasing, credit value is the lower of fair valueof 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 thosemeeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost; and forthe part which is replaced, recognization of its carrying value shall cease; for those not meeting requirementsfor 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 ordisposal of the asset, the Company shall terminate recognization of such fixed asset. The amount of incomefrom disposal, transfer, discarding as scrap or damage of fixed asset after deducting the asset’ s carrying valueand 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
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
while continuing to use. It adopts average service life method for withdrawing depreciation which is treatedrespectively as cost or current expense of relevant assets according to purpose of use. The depreciation term,predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
| No. | Category | Depreciation term | Predicted rate of salvage value | Depreciation rate per year |
| 1 | House and buildings | 30-40 years | 4%-5% | 2.375%-3.20% |
| 2 | Machinery equipment | 10-14 years | 4%-5% | 6.786%-9.60% |
| 3 | Transport equipment | 5-12 years | 4%-5% | 7.92%-19.20% |
| 4 | Other equipment | 8-12 years | 4%-5% | 7.92%-12.00% |
End of each year, the Company makes re-examination on predicted service life, predicted rate of salvage valueand depreciation method at each year-end. Any change will be treated as accounting estimation change.
18. Construction in progress
On the day when the construction in progress reaches the expected usable state, it will be carried forward tofixed 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 assetsshall be adjusted after the completion of the final accounting procedures.
19. Borrowing expense
For the incurred borrowing expense that can be directly attributable to fixed assets, investment real estate, andinventory which require more than one year of purchase, construction or production activities to reach theintended usable or saleable state, the capitalization begins when the asset expenditure has occurred, theborrowing expense have occurred, and the acquisition, construction or production activities necessary to makethe asset reach the intended usable or saleable state have begun; when the acquisition, construction orproduction of assets that meet the capitalization conditions reaches the intended usable or saleable state, stopthe capitalization, the borrowing expense incurred thereafter are included in the current profit and loss. If anasset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction orproduction process, and the interruption lasts for more than 3 months, the capitalization of borrowing expenseshall 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 currentperiod after deduction of the interest income arising from unutilized borrowing capital which is saved in banksor deduction of investment income obtained from temporary investment; For recognization of capitalizedamount of common borrowing, it equals to the weighted average of the assets whose accumulated expense orcapital disburse is more than common borrowing times capitalization rate of occupied common borrowing.Capitalization rate is determined according to weighted average interest rate of common borrowing.
20. Right-of-use assets
Upon becoming a lessee under a lease contract, the Company is entitled to receive substantially all of theeconomic benefits, arising from the use of the identified assets during the period of use and is entitled torecognized the right-of-use assets at the sum of the present value of the lease liability, prepaid rent and initialdirect costs, and to recognized the depreciation and interest expenses respectively, when the use of theidentified assets dominates during that period of use.When the Company becomes the lessee of a lease contract, for short-term leases of less than one year without
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
a purchase option and leases with a value of less than 40000 yuan (excluding sublease or expected subleaseassets), the Company elects to follow simplified treatment and record the related assets at cost or currentgain/loss on a straight-line basis over the lease period.
21. Intangible assets
(1) Valuation method, service life and impairment test
The Company’s intangible assets include land use rights, trademark rights and non-proprietary technology,which are measured at actual cost at the time of acquisition, of which, acquired intangible assets are stated atactual cost based on the price actually paid and related other expenditure; the actual cost of an intangible assetinvested by an investor is determined at the value agreed in the investment contract or agreement, except wherethe agreed value in the contract or agreement is not fair, in which case the actual cost is determined at fairvalue.The Company analyzes and judges the service life of intangible assets when acquiring them. Intangible assetswith definite service life, such as land use rights, are amortized by the straight-line method during the servicelife from the time when the intangible assets are available for use until they are no longer recognized asintangible assets. Other intangible assets shall be amortized according to the service life stipulated in thecontract or law. Intangible assets with uncertain service life shall not be amortized. Intangible assets developedby the Company shall be generally amortized on an average of 3-5 years according to the benefit period of theresults of the project recognized in advance.The service life and amortization method of intangible assets with limited service life shall be reviewed at theend of the year. If the estimated service life and amortization method of intangible assets are different fromthose previously estimated, the amortization period and amortization method shall be changed. The service lifeof intangible assets with uncertain service life shall be rechecked. If there is evidence that their service life islimited, estimate their service life and treat them as intangible assets with limited service life. If there is anychange after the recheck, it will be regarded as the change of accounting estimate.
(2) Collection scope of R&D expenditure and related accounting treatment methodsThe Company's R&D expenditure is directly related to the Company's R&D activities, including R&D staffsalaries, direct input expenses, depreciation expenses and other expenses.The R&D expenditure of the Company is divided into research stage expenditure and development stageexpenditure according to its nature and whether there is great uncertainty in the final formation of intangibleassets from R&D activities. Research stage expenditure is included in the current profits and losses when itoccurs; Development stage expenditure is recognized as intangible assets if it meets the following conditionsat the same time: (1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them; (3) The products produced byusing the intangible assets exist in the market or the intangible assets themselves exist in the market; (4) It hassufficient technical, financial and other resources to support the development of the intangible assets, and hasthe ability to use or sell the intangible assets; (5) Expenditure attributable to the development stage of theintangible assets can be reliably measured.
-Expenditure attributable to development of the intangible assets could be reliable measured.Expenditure arising during development not satisfying the above conditions shall be recorded in currentgains and losses upon occurrence. Development expenditure which had been recorded in gains and losses inprevious period would not be recognized as assets in later period. Expenditure arising during developmentphase which has been starting capitalization is listed in balance sheet as development expenditure, andtransferred to intangible assets since the project reaches at predicted utilization state.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
22. Impairment of long-term assets
As at each balance sheet date, the Company has inspection on fixed assets, construction in process andintangible assets with limited service life. When the following indications appear, assets may be impaired, andthe Company would have impairment test. As for goodwill and intangible assets which have uncertain servicelife, no matter there is impairment or not, impairment test shall be conducted at the end of every year. If it ishard to make test on recoverable amount of single asset, test is expected to make on the basis of the assetsgroup or assets group portfolio where such asset belongs to.Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicteddrop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located willhave 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 bringsinfluence in calculating discount rate of present value of predicted future cash flow of assets, which leads to agreat 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 thanprediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatlylower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance isrecognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, itcouldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of fairvalue of assets net disposal expense and present value of predicted cash flow of the asset.
23. Contract liability
Contract liabilities reflect the Company's obligation to transfer goods to customers for consideration receivedor receivable from customers. Before the Company transfers the goods to the customer, if the customer haspaid the contract consideration or the Company has obtained the right to unconditionally receive the contractconsideration, the contract liability is recognized based on the received or receivable amount at the earlier timepoint 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 commoncontrol 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 relatingto associates and joint-ventures is included in carrying value of long-term equity investment.
25.Long-term deferred expenses
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
The company's long-term deferred expenses refer to the expenses that have been paid, but should be borne bythe current period and future periods with an amortization period of more than one year (excluding one year),and these expenses are amortized evenly during the benefit period. If the long-term deferred expense itemcannot benefit the future accounting period, all the amortized value of the item that has not been amortizedwill be transferred into the current profit and loss.
26. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered byemployees 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-termemployee welfare.Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, socialinsurances like medical insurance, work-related injury insurance and maternity insurance, housing fund, laborunion funds and staff education funds, short-term paid absence of duty, short-term profit sharing scheme, andnon-monetary benefits as well as other short-term remuneration. During the accounting period when staffprovides services, the short-term remuneration actually occurred is recognized as liabilities and shall beincluded 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-retirementbenefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employeesin respect of retirement benefits, or the rules or regulations established by the Company for providingretirement 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 notobliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than definedcontribution plan.The early retirement policy for staff and workers of the Company is the compensation for encouraging staffand workers to accept the reduction voluntarily. The employees make applications voluntarily, the two partiessign the compensation agreement after approved by the Company and calculate the compensation amountaccording to the compensation standard passed by the staff representative conference, and the Companyconfirms it as dismiss welfare and reckons it in current profits and losses. As the Company promises to adjustthe treatment for early retiring staff and workers with the increase of social basic cost of living allowances, thediscount elements will not be considered for calculating the dismiss welfare.
27.Lease liability
Upon becoming a lessee under a lease contract, the Company recognizes a lease liability for the leased-in assetat the present value of the unpaid lease payments, net of lease incentives (except for short-term leases andleases of low-value assets for which simplified treatment is elected), when it is entitled to receive substantiallyall of the economic benefits arising from the use of the identified asset during the period of use and is entitledto dominate the use of the identified asset during that period of use.
28.Accrual liability
If the business in connection with such contingencies as a security involving a foreign party, commercialacceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of thefollowing conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existingobligation of the Company; performance of the obligation is likely to cause economic benefits to flow out of
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
the enterprise; the amount of the obligation is reliably measurable.
29. Special reserve
The work safety expense extracted according to the regulations will be included in the cost of related productsor the current profit and loss, and also included in the special reserve; When used, it will be treated separatelyaccording to whether fixed assets are formed or not: if it is an expense expenditure, the special reserve will bedirectly offset; If the fixed assets are formed, the expenses incurred shall be collected, and the fixed assets shallbe confirmed when the predetermined usable state is reached, and at the same time, the equivalent specialreserve shall be offset and the equivalent accumulated depreciation shall be confirmed.
30. Revenue
The Company’s sales revenue is mainly comprised of revenue from sale of goods, labor providing income andrevenue from assignment of asset use rights.The Company has fulfilled the performance obligations in the contract, that is, revenue is recognized when thecustomer obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Company will allocate the transaction priceto each individual performance obligation according to the relative proportion of the stand-alone selling priceof the goods or services promised by each individual performance obligation on the date of the contract. Therevenue 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 tothe transfer of goods or services to customers, excluding payments on behalf of third parties. The transactionprice confirmed by the Company does not exceed the amount at which the cumulatively recognized revenuewill most likely not to undergo a significant switch back when the relevant uncertainty is eliminated. Themoney expected to be returned to the customer will be regarded as a return liability and not included in thetransaction price. If there is a significant financing component in the contract, the Company shall determinethe transaction price based on the amount payable on the assumption that the customer pays in cash whenobtaining the control of the goods or services. The difference between the transaction price and the contractconsideration shall be amortized by the effective interest method during the contract period. On the startingdate of the contract, if the Company expects that the interval between the customer's acquisition of control ofthe goods or services and the customer's payment of the price doesn’t exceed one year, the significant financingcomponents in the contract shall be ruled out.
When meeting one of the following conditions, the Company is to perform its performance obligations withina 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 thesame 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, andthe Company has the right to collect payment for the accumulated performance part of the contract during theentire contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
accordance with the performance progress during that period and determine the progress of performance inaccordance with the output method. When the performance progress cannot be reasonably determined, if thecost incurred by the Company is expected to be compensated, the revenue shall be recognized according to theamount 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 pointwhen the customer obtains control of the relevant goods or services. When judging whether a customer hasobtained 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 arepresented as contractual assets, which are impaired on the basis of expected credit losses. The Company’sunconditional right to receive consideration from customers is shown as a account receivable. The obligationto transfer goods or services to customers for which the Company has received consideration receivable fromthem is shown as a contractual liability.
31. Government subsidy
Government subsidy of the Company include project grants, financial subsidies and job stabilization subsidies.Of which, asset-related government subsidy are government subsidy acquired by the Company for theacquisition or other formation of long-term assets; government subsidy related to revenue are governmentsubsidy other than those related to assets. If the government document does not clearly specify the subsidyobject, the Company will judge according to the above-mentioned distinguishing principle. If it is difficult todistinguish, 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. Forsubsidies paid on the basis of a fixed quota standard, when there is conclusive evidence at the end of the yearthat it can meet the relevant conditions stipulated by the financial support policy and is expected to receivefinancial support funds, they are measured according to the amount receivable. If the government subsidy is anon-monetary asset, it shall be measured at its fair value, when the fair value cannot be obtained reliably, itshall be measured at its nominal amount (1 yuan).
Government subsidies related to assets are recognized as deferred income. Asset-related government subsidiesthat are recognized as deferred income are included in the current profit and loss in installments according tothe 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 undistributeddeferred income balance shall be transferred to the current profit and loss of asset disposal.
32. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference)between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be recognized
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
for the carry forward of unused deductible losses that it is probable that future taxable profits will be availableagainst which the deductible losses can be utilized. For temporary difference arising from initial recognitionof goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary differencearising from initial recognition of assets and liabilities occurred in the transaction related to non-businesscombination which neither affect accounting profit nor taxable income (or deductible losses), no correspondingdeferred 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 applicableto the period when recovery of assets or settlement of liabilities occur.The Company recognizes deferred income tax assets to the extent of future taxable income tax which is likelyto be obtained to offset deductible temporary difference, deductible losses and tax credits. For the confirmeddeferred income tax assets.
33.Lease
When the Company becomes the lessee of the lease contract, has the right to obtain almost all the economicbenefits arising from the use of the identified assets during the period of use, and has the right to lead the useof the identified assets during the period of use, the present value of unpaid lease payments of the lease assetsafter deducting lease incentives (except for short-term leases and leases of low-value assets for whichsimplified treatment is selected) is recognized as a lease liability, and a right-of-use asset is recognized basedon the sum of the present value of the lease liability, prepaid rent, and initial direct costs, and depreciation andinterest expenses are recognized separately.When the Company becomes the lessee of a lease contract, for short-term leases of less than one year withouta purchase option and leases with a value of less than 40,000 yuan (excluding sublease or expected subleaseassets), the Company elects to follow simplified treatment and record the related assets at cost or currentgain/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 afinance lease at the lease commencement date. A finance lease is a lease that transfers substantially all the risksand 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. Financeleases are recorded at the net lease investment value of the finance lease receivable, which is the sum of theunguaranteed residual value and the present value of the lease receipts not yet received as of thecommencement date of the lease term.There are both leasing and non-leasing businesses in the contract and can be split, and the leasing business isfinancially accounted according to the lease standards. There are both leasing and non-leasing businesses inthe contract and cannot be split, and the entire contract is included in the lease business for financial accountingaccording to the lease standards.The lease change needs to be judged whether it can be recognized as a single leasing business, and it needs tobe recognized separately if it meets the recognition conditions of a single lease; if it does not meet therecognition of a single leasing business, or there is a major event or change within the controllable range of thelessee, 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 liabilitystill needs to be further reduced, the lessee shall include the remaining amount in the corresponding expensesfor the current period.
When the Company becomes the lessor of a lease contract, the lease is divided into operating lease and finance
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
lease on the start date of lease. A finance lease is a lease that transfers substantially all the risks and rewardsassociated with ownership of an asset. An operating lease refers to a lease other than finance leases. The rentof 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 netinvestment in the lease is the sum of the unguaranteed residual value and the present value of the lease receiptsthat have not been received on the start date of the lease term.
34. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses includeincome tax in the current year and deferred income tax. The income tax associated with the events andtransactions directly included in the owners’ equity shall be included in the owners’ equity; and the deferredincome tax derived from business combination shall be included in the carrying amount of goodwill, exceptfor 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 taxlaws on the events and transactions incurred in the current period. The deferred income tax refersto thedifference between the carrying amount and the deferred tax assets and deferred tax liabilities at CurrentYear-end recognized in the method of debit in the balance sheet.
35. Segment information
Business segment was the major reporting form of the Company, which divided into four parts: air-conditioning, refrigerator & freezer& washing machine, small home appliance and others. The transfer priceamong the segments will recognize based on the market price, common costs will allocated by incomeproportion 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 financialstatement which will affect the application of accounting policy and amounts of assets, liabilities, income andexpense. The actual condition may differ from the estimation. Constant evaluation is conducted by themanagement in respect of the key assumption involved in the estimation and judgment of uncertainties. Effectresulting 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 valueof 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 realizablevalue lower than the cost of inventories. The net realizable value of the inventory of goods that are directlyused for sale, such as the goods in stock, the goods sent out, and the materials for sale, and the low-consumptiongoods, shall be determined by the amount of the estimated selling price of the inventory minus the estimatedselling expenses and relevant taxes. The net realizable value of the material inventory held for production isdetermined by the amount of the estimated selling price of the finished product produced minus the estimatedcost 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 haveimpairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
amount of relevant assets and assets group shall be the present value of the projected future cash flow whichshall be calculated with accounting estimation.If the management amends the gross profit margin and discount rate adopted in calculation of future cash flowof assets and assets group and the amended gross profit margin is lower than the currently adopted one or theamended discount rate is higher than the currently adopted one, the Company needs to increase provision ofimpairment provision. If the actual gross profit margin is higher (or the discount rate is lower) than theestimation of management, the Company can not transfer back the long term assets impairment provisionprovided 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 foreach future year. Realization of deferred income tax assets depends on whether a company is able to obtainsufficient taxable income in future. Change of future tax rate and switch back of temporary difference couldaffect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimationmay 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 valuerate of fixed assets and intangible assets. The projected usable life and residual value rate are determined bythe management based on the historical experiences of similar assets by reference to the estimation generallyused by the same industry with consideration on projected technical upgrade. If material change occurs toprevious estimation, the Company shall accordingly adjust the depreciation expenses and amortizationexpenses for future period.
37. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and lossesaccording to other accounting rules.Other comprehensive income items shall be reported in the following two classes under other relevantaccounting rules:
(1)Other comprehensive income items that can not be reclassified into gains and losses in future accountingperiods, mainly including changes arising from re-measurement of net liabilities or net assets under definedbenefit plan and interest in investee’s other comprehensive income which are measured under equity methodand 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 accountingperiods upon satisfaction of required conditions, mainly includes the share of other comprehensive income thatis reclassified into profit and loss when the investee’s subsequent accounting periods are accounted for inaccordance with the equity method and meet the specified conditions, the fair value changes occurred by thedebt 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 valuewhen a financial asset measured at amortized cost is reclassified as a financial asset measured at fair value andits changes are included in other comprehensive income, the loss provisions for financial assets measured atfair value and whose changes are included in other comprehensive income, the gains or losses generated fromcash flow hedging instruments are part of effective hedging, and the differences in conversion of foreigncurrency financial statements.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(1) Change of significant accounting policy: N/A
(2) Change of significant accounting estimates: N/A
IV. Taxation
1. Major taxes and tax rates
| 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%或7% |
| Education surcharge | Turnover tax | 3% |
| Local education surcharge | Turnover tax | 2% |
| Corporate income tax | Taxable income | 25%/ See the table below |
| House Property Tax | Original Book value of house property×(1-30%)or annual rent income | 1.2% or 12% |
| Land use tax | Actual land area used | 1 yuan/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% |
| Mianyang Meiling Refrigeration Co., Ltd. | 15% |
| Sichuan Hongmei Intelligent Technology 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. | 20% |
| Anhui Tuoxing Technology Co., Ltd. | 20% |
| Guangzhou Changhong Trading Co., Ltd. | 20% |
| Hefei Meiling Wulian Technology Co., Ltd | 15% |
| CH-Meiling International (Philippines) Inc. | 20% |
| Changhong Ruba Trading Company (Private) Limited | 29% |
| CHANGHONG MEILING ELECTRIC INDONESIA,PT | 22% |
2. Preferential tax
(1) On November 30, 2023, the Company passed the high-tech enterprise certification and obtained the high-tech enterprise certificate numbered GR2020340006385, and shall enjoy the national high-tech enterprise
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
income tax rate of 15%, which is valid for three years.
(2) On October 16, 2023, the subsidiary Zhongke Meiling Cryogenic Technology Co., Ltd. obtained the high-tech enterprise certificate numbered GR202334003036 approved by the Anhui Provincial Department ofScience and Technology, the Anhui Provincial Department of Finance, and the Anhui Provincial TaxationBureau of the State Administration of Taxation, and shall enjoy the 15% enterprise income tax rate of thenational high-tech enterprise, which is valid for three years.
(3) On December 28, 2023, the subsidiary Zhongshan Changhong Electric Appliance Co., Ltd. obtained a high-tech enterprise certificate with a certificate number of GR202344012950 approved by the GuangdongProvincial Department of Science and Technology, the Guangdong Provincial Department of Finance and theGuangdong Provincial Taxation Bureau of the State Administration of Taxation, and shall enjoy a nationalenterprise income tax rate of 15% for high-tech enterprises, which is valid for three years.
(4) Subsidiary Mianyang Meiling Refrigeration Co., Ltd., belongs to the encouraged industry in the IndustrialStructure Adjustment Guidance Catalog and enjoys the preferential taxation policy of corporate income tax forthe Western Development, and the corporate income tax is levied at a reduced tax rate of 15%, valid untilDecember 31, 2030.
(5) The subsidiary Sichuan Hongmei Intelligent Technology Co., Ltd. has passed the qualification of high-techenterprise certification on 9 October 2021, and enjoys 15% rate for the income tax for State Hi-Tech Enterprisefor three years term.
(6) The subsidiary Guangdong Changhong Meiling Ridian Technology Co., Ltd. has passed the qualificationof high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the income tax for StateHi-Tech Enterprise for three years term.
(7) The subsidiary Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. has passed thequalification of high-tech enterprise certification on 22 December 2022, and enjoys 15% rate for the incometax 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 18 September 2021, and enjoys 15% rate for the income tax for State Hi-TechEnterprise for three years term.
(9) The subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. has passed the qualification of high-techenterprise certification on 4 November 2022, and enjoys 15% rate for the income tax for State Hi-TechEnterprise for three years term.
(10) The subsidiary Sichuan Changhong Air-conditioner Co., Ltd., has passed the qualification of high-techenterprise certification on 29 November 2022, and enjoys 15% income tax rate for national payroll technologyenterprise for three years term.
(11) The subsidiaries Anhui Tuoxing Technology Co., Ltd., Guangzhou Changhong Trading Co., Ltd. and
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
Hebei Hongmao Daily Electrical Appliance Technology Co., Ltd., in accordance with the announcement of theMinistry of Finance and the State Administration of Taxation on further supporting the development of smalland micro enterprises and individual industrial and commercial households (Announcement No. 12 of 2023 ofthe Ministry of Finance and the State Administration of Taxation), calculate the taxable income of small andlow-profit enterprises at a reduced rate of 25% and pay enterprise income tax at a rate of 20%, which will beextended to December 31, 2027.
(12) The subsidiary Hebei Meiling Wulian Technology Co., Ltd. has passed the qualification of high-techenterprise certification on 18 September 2021, and enjoys 15% income tax rate for national payroll technologyenterprises for three years term.V. Notes to the major items in the consolidated financial statementsWith respect to the financial statements’ figures disclosed below, unless otherwise specified, “period-beginning”refers to Jan. 1, 2024; “period-end” refers to Jun. 30, 2024; “Current Period” refers to Jan. 1 to Jun. 30, 2023;“the last period” refers to Jan. 1 to Jun. 30, 2023; the currency is RMB.
1. Monetary fund
| Item | Ending balance | Beginning balance |
| Cash | 30,445.27 | 12,727.56 |
| Bank deposit | 4,688,899,674.43 | 4,160,096,314.60 |
| Other monetary fund | 387,433,262.65 | 425,569,359.11 |
| Interest receivable on deposit | 3,973,325,909.43 | 4,255,007,124.44 |
| Total | 9,049,689,291.78 | 8,840,685,525.71 |
| Including: total amount deposited in overseas | 33,332,025.33 | 25,902,580.15 |
2. Tradable financial assets
| Item | Ending Balance | Beginning Balance |
| Financial assets measured at fair value and whose changes are included in current gains/losses | 1,091,019,993.13 | 39,236,447.63 |
| Including: Derivative financial assets | 8,754,120.65 | 39,236,447.63 |
| Principal and interest of wealth management products | 1,082,265,872.48 |
Transactional financial assets in this period are caused by forward foreign exchange contracts, unconfirmedfirm commitment evaluation and new wealth management products.
3. Note receivable
(1) Category of note receivable
| Item | Ending Balance | Beginning Balance |
| Bank acceptance | 228,500.00 | |
| Trade acceptance | 38,674.50 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending Balance | Beginning Balance |
| Total | 267,174.50 |
(2) By accrual of bad debt provision
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| With bad debt provision accrual on single item | 267,174.50 | 100.00 | 267,174.50 | ||
| Including: Bank acceptance | 228,500.00 | 85.52 | 228,500.00 | ||
| Trade acceptance | 38,674.50 | 14.48 | 38,674.50 | ||
| Total | 267,174.50 | 100.00 | 267,174.50 | ||
1) Note receivable withdrawal bad debt provision on single item
| Name | Beginning balance | Ending balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Provision ratio (%) | Provision reason | |
| Bank acceptance | 228,500.00 | Minimal risk, holding maturity acceptance | ||||
| Trade acceptance | 38,674.50 | Endorsement is not due，Minimal risk. | ||||
| Total | 267,174.50 | — | — | |||
(2) Bad debt provision of note receivable that has been accrued, withdrawn, and reversed in the current period
(3) Notes receivable that have been pledged at the end of the year: N/A
(4) Notes endorsement or discount and undue on balance sheet date :N/A
(5) Notes receivable not yet due: N/A
(6) Notes receivable actually written off this year: N/A
4. Account receivable
(1) Category of account receivable by aging
| Account age | Ending Balance | Beginning Balance |
| Within 1 year（Including 1 year） | 2,184,385,432.32 | 1,629,505,172.78 |
| Including： | ||
| Within 3 months (3 months included) | 1,931,692,500.62 | 1,441,654,287.27 |
| More than 3 months and less than 6 months (6 months included) | 182,123,877.62 | 140,150,202.58 |
| Over 6 months and within one year (One year included) | 70,569,054.08 | 47,700,682.93 |
| Over one year - within 2 years (2 years included) | 81,064,638.11 | 131,340,766.08 |
| Over 2 years - within 3 years (3 years included) | 130,905,000.64 | 154,167,214.15 |
| Over 3 years | 93,752,969.30 | 53,619,387.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Account age | Ending Balance | Beginning Balance |
| Total | 2,490,108,040.37 | 1,968,632,540.01 |
(2) Category of account receivable by bad debt accrual
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 957,605,494.67 | 38.46 | 178,714,212.71 | 18.66 | 778,891,281.96 |
| Including: current payment with related party | 683,176,319.68 | 27.44 | 136,438,304.70 | 19.97 | 546,738,014.98 |
| Account receivable with letter of credit | 227,542,803.55 | 9.14 | 227,542,803.55 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 46,886,371.44 | 1.88 | 42,275,908.01 | 90.17 | 4,610,463.43 |
| Account receivable withdrawal bad debt provision by portfolio | 1,532,502,545.70 | 61.54 | 144,021,478.84 | 9.40 | 1,388,481,066.86 |
| Including: account receivable of engineering customers | 203,565,098.94 | 8.17 | 41,990,000.26 | 20.63 | 161,575,098.68 |
| Receivables other than engineering customers | 1,328,937,446.76 | 53.37 | 102,031,478.58 | 7.68 | 1,226,905,968.18 |
| Total | 2,490,108,040.37 | 100.00 | 322,735,691.55 | 12.96 | 2,167,372,348.82 |
Continued
| Category | Beginning balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 682,942,277.48 | 34.69 | 195,578,324.84 | 28.64 | 487,363,952.64 |
| Including: current payment with related party | 545,656,729.90 | 27.72 | 154,606,151.98 | 28.33 | 391,050,577.92 |
| Account receivable with letter of credit | 83,951,301.01 | 4.26 | 83,951,301.01 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 53,334,246.57 | 2.71 | 40,972,172.86 | 76.82 | 12,362,073.71 |
| Account receivable withdrawal bad debt provision by portfolio | 1,285,690,262.53 | 65.31 | 139,347,326.11 | 10.84 | 1,146,342,936.42 |
| Including: account receivable of engineering customers | 212,621,463.45 | 10.80 | 44,910,916.50 | 21.12 | 167,710,546.95 |
| Receivables other than engineering customers | 1,073,068,799.08 | 54.51 | 94,436,409.61 | 8.80 | 978,632,389.47 |
| Total | 1,968,632,540.01 | 100.00 | 334,925,650.95 | 17.01 | 1,633,706,889.06 |
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 minorsingle receivables, and withdrawal bad debt provision by combination shows no risk characteristic of thereceivables, 114 clients involved.
2) Account receivable withdrawal bad debt provision by portfolio
A.Account receivable of engineering customers
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Account age | Ending balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 33,139,378.12 | ||
| More than 3 months and less than 6 months (6 months included) | 14,650,060.23 | ||
| Over 6 months and within one year (One year included) | 52,784,102.22 | ||
| Over one year - within 2 years (2 years included) | 48,455,733.79 | 9,691,146.76 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 44,473,942.16 | 22,236,971.08 | 50.00 |
| Over 3 years | 10,061,882.42 | 10,061,882.42 | 100.00 |
| Total | 203,565,098.94 | 41,990,000.26 | — |
Continued
| Account age | Beginning balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 33,502,386.39 | ||
| More than 3 months and less than 6 months (6 months included) | 29,638,184.67 | ||
| Over 6 months and within one year (One year included) | 29,724,507.75 | ||
| Over one year - within 2 years (2 years included) | 71,526,399.70 | 14,305,279.94 | 20.00 |
| Over 2 years - within 3 years (3 years included) | 35,248,696.77 | 17,624,348.39 | 50.00 |
| Over 3 years | 12,981,288.17 | 12,981,288.17 | 100.00 |
| Total | 212,621,463.45 | 44,910,916.50 | — |
B.Receivables other than engineering customers
| Account age | Ending balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 1,156,716,570.15 | 11,567,165.70 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 68,643,701.60 | 6,864,370.16 | 10.00 |
| Over 6 months and within one year (One year included) | 8,285,316.34 | 1,657,063.27 | 20.00 |
| Over one year - within 2 years (2 years included) | 4,719,357.34 | 2,359,678.67 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 54,946,502.73 | 43,957,202.18 | 80.00 |
| Over 3 years | 35,625,998.60 | 35,625,998.60 | 100.00 |
| Total | 1,328,937,446.76 | 102,031,478.58 | — |
Continued
| Account age | Beginning balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Within 3 months (3 months included) | 923,822,329.93 | 9,238,223.30 | 1.00 |
| More than 3 months and less than 6 months (6 months included) | 41,778,451.31 | 4,177,845.13 | 10.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Account age | Beginning balance | ||
| Book balance | Bad debt provision | Provision ratio (%) | |
| Over 6 months and within one year (One year included) | 9,463,055.00 | 1,892,611.00 | 20.00 |
| Over one year - within 2 years (2 years included) | 2,723,777.86 | 1,361,888.93 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 87,576,718.61 | 70,061,374.88 | 80.00 |
| Over 3 years | 7,704,466.37 | 7,704,466.37 | 100.00 |
| Total | 1,073,068,799.08 | 94,436,409.61 | — |
(3) Bad debt provision of accounts receivable in the current period
| Category | Beginning balance | Changes this year | Ending Balance | |||
| Accrual | Withdrawal or reversal | Resale or write-off | Other decreases | |||
| Bad debt provision | 334,925,650.95 | 8,380,959.36 | 20,809,004.37 | 238,085.61 | 322,735,691.55 | |
| Total | 334,925,650.95 | 8,380,959.36 | 20,809,004.37 | 238,085.61 | 322,735,691.55 | |
(4) Provision for bad debts of accounts receivable actually recovered or reversed in the current period
| Item | Written-off amount |
| Provision for bad debts of accounts receivable recovered or reversed | 20,809,004.37 |
The important amount of bad debt provision recovered or reversed in the current period thereinto:
| Name of the organization | Amount recovered or reversed | Reason of recovery | Method of recovery | The basis for determining the proportion of provision for bad debts and its reasonableness |
| Sichuan Zhiyijia Network Technology Co., Ltd | 20,073,699.40 | Payment recovered | Customer payment collection | |
| Total | 20,073,699.40 | — | — | — |
(5) Account receivable actually written-off in the Current period: N/A.
(6) Top five receivables collected by arrears party amounting to 1,047,848,385.72 yuan in total, accountedfor 41.9% of the receivables of current year-end, the bad debt provision accrual correspondingly amountingto 94,883,259.48yuan at year-end balance.
5. Receivables financing
（1）Classification and listing of receivable financing
| Item | Ending balance | Beginning balance |
| Bank acceptance | 1,600,373,357.87 | 1,641,858,740.34 |
| Total | 1,600,373,357.87 | 1,641,858,740.34 |
(2)Receivable financing is classified and listed by bad debt accrual method
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single item | 1,600,373,357.87 | 100.00 | 1,600,373,357.87 | ||
| Including：Bank acceptance | 1,600,373,357.87 | 100.00 | 1,600,373,357.87 | ||
| Total | 1,600,373,357.87 | 100.00 | 1,600,373,357.87 | ||
Continued
| Category | Beginning balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single item | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
| Including：Bank acceptance | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
| Total | 1,641,858,740.34 | 100.00 | 1,641,858,740.34 | ||
（3）There is no bad debt provision accrued, recovered or reversed in the Current period ;
(4)Financing of receivables that have been pledged at the end of the period
| Item | Period-end pledged amount |
| Bank acceptance | 743,380,533.32 |
Note: with purpose of improving the note utilization, the Company draw up bank acceptance by pledge partsof the outstanding notes receivable to the bank. For details of the pledge of bills receivable, see Note V. 25.Assets with restricted ownership or use rights.
(5) Notes endorsement or discount and undue on balance sheet date listed in receivables financing at the endof the period
| Item | Amount derecognition at period-end | Amount without derecognition at period-end |
| Bank acceptance | 709,516,249.45 | |
| Total | 709,516,249.45 |
6. Accounts paid in advance
(1) Age of account paid in advance
| Item | Ending balance | Beginning balance | ||
| Amount | Ratio (%) | Amount | Ratio (%) | |
| Within one year | 25,620,331.26 | 98.44 | 43,288,908.76 | 94.64 |
| 1-2 years | 118,591.11 | 0.46 | 811,122.73 | 1.77 |
| 2-3 years | 49,636.02 | 0.19 | 707,919.39 | 1.55 |
| Over 3 years | 237,765.33 | 0.91 | 930,855.02 | 2.04 |
| Total | 26,026,323.72 | 100.00 | 45,738,805.90 | 100.00 |
(2) Top 5 of account paid in advance in Ending balaqnce amounting to17,119,020.35yuan, accounted for
65.78% of the account.
7. Other account receivable
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Beginning balance |
| Other account receivable | 80,790,579.55 | 82,953,808.97 |
| Total | 80,790,579.55 | 82,953,808.97 |
(1) Category of other account receivable
| Nature | Book Ending balance | Book Beginning balance |
| Export rebate | 49,174,580.49 | 41,300,752.20 |
| Cash deposit | 11,383,392.77 | 20,927,726.52 |
| Loans of employee’s pretty cash | 21,636,865.19 | 20,970,369.96 |
| Related party not in consolidation statement | 789,830.16 | 619,414.34 |
| Advance money temporary | 192,867.60 | 707,676.06 |
| Other | 624,972.15 | 1,488,175.37 |
| Total | 83,802,508.36 | 86,014,114.45 |
(2) By account age
| Account age | Ending balance | Beginning balance |
| Within 1 year（Including 1 year） | 73,549,094.77 | 74,641,189.07 |
| Including： | ||
| Within 3 months (3 months included) | 67,976,644.68 | 60,732,006.02 |
| More than 3 months and less than 6 months (6 months included) | 3,007,738.81 | 1,842,273.09 |
| Over 6 months and within one year (One year included) | 2,564,711.28 | 12,066,909.96 |
| Over one year - within 2 years (2 years included) | 2,198,771.08 | 3,017,092.43 |
| Over 2 years - within 3 years (3 years included) | 3,344,947.46 | 2,473,240.42 |
| Over 3 years | 4,709,695.05 | 5,882,592.53 |
| Total | 83,802,508.36 | 86,014,114.45 |
(3) Category of Other account receivable bad debt reserves
| Category | Amount at year-end | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 83,631,925.85 | 99.80 | 2,935,406.15 | 3.51 | 80,696,519.70 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 33,667,515.20 | 40.18 | 2,935,406.15 | 8.72 | 30,732,109.05 |
| Export rebate | 49,174,580.49 | 58.68 | 49,174,580.49 | ||
| Related party funds | 789,830.16 | 0.94 | 789,830.16 | ||
| Bad debt provision accrued by portfolio | 170,582.51 | 0.20 | 76,522.66 | 44.86 | 94,059.85 |
| In which: other receivables accrued by aging portfolio | 170,582.51 | 0.20 | 76,522.66 | 44.86 | 94,059.85 |
| Total | 83,802,508.36 | 100.00 | 3,011,928.81 | 3.59 | 80,790,579.55 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
Continued
| Category | Beginning balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 85,698,646.43 | 99.63 | 2,945,873.36 | 3.44 | 82,752,773.07 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 43,778,479.89 | 50.90 | 2,945,873.36 | 6.73 | 40,832,606.53 |
| Export rebate | 41,300,752.20 | 48.01 | 41,300,752.20 | ||
| Related party funds | 619,414.34 | 0.72 | 619,414.34 | ||
| Bad debt provision accrued by portfolio | 315,468.02 | 0.37 | 114,432.12 | 36.27 | 201,035.90 |
| In which: other receivables accrued by aging portfolio | 315,468.02 | 0.37 | 114,432.12 | 36.27 | 201,035.90 |
| Total | 86,014,114.45 | 100.00 | 3,060,305.48 | 3.56 | 82,953,808.97 |
1) Accrual of bad debt provision for other receivables
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2024 | 181.49 | 58,484.21 | 3,001,639.78 | 3,060,305.48 |
| Book balance of other account receivable in Current period as at 1 Jan. 2024 | — | — | — | — |
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage | ||||
| -- Reversal to the first stage | 10,467.21 | -10,467.21 | ||
| Provision in Current Year | 530.26 | 530.26 | ||
| Reversal in Current Year | 358.89 | 48,017.00 | 48,375.89 | |
| Conversion in Current Year | ||||
| Write off in Current Year | ||||
| Other change | -531.04 | -531.04 | ||
| Balance as at 30 June. 2024 | 10,289.03 | 3,001,639.78 | 3,011,928.81 |
（4）Bad debt provision for other receivables accrued, recovered or reversed in the current period
| Category | Beginning balance | Amount of change this period | Ending balance | |||
| Accrual | Recovery or reversal | Write-off or cancellation | Other | |||
| Bad debt provision | 3,060,305.48 | 530.26 | 48,375.89 | -531.04 | 3,011,928.81 | |
| Total | 3,060,305.48 | 530.26 | 48,375.89 | -531.04 | 3,011,928.81 | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
（5）Other account receivable actually written-off in Current period: N/A
(6) Top 5 other receivables collected by arrears party at balance of period-end
| Name | Nature | Ending balance | Account age | Proportion in total other receivables ending balance (%) | Bad debt provision Ending balance |
| Unit I | Export rebate | 49,174,580.49 | Within 1 year | 58.68 | |
| Unit II | Loans of employee’s pretty cash | 2,730,438.36 | Within 1 year, 1-2 years，Over 2-3 years | 3.26 | |
| Unit III | Cash deposit | 1,689,512.96 | Within 1 year | 2.02 | |
| Unit IV | Loans of employee’s pretty cash | 1,497,437.88 | 1-2 years | 1.78 | |
| Unit V | Loans of employee’s pretty cash | 1,368,000.00 | Within 1 year | 1.63 | |
| Total | 56,459,969.69 | 67.37 |
（7）There are no other receivables reported due to centralized management of funds.
8. Inventories
(1) Classification of inventories
| Item | Ending Amount | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 210,188,862.32 | 4,227,320.88 | 205,961,541.44 |
| Stock commodities | 1,829,456,156.17 | 62,088,588.75 | 1,767,367,567.42 |
| Low value consumable articles | 1,125,814.10 | 99,237.62 | 1,026,576.48 |
| Goods in transit | 1,508,762,043.38 | 8,188,477.80 | 1,500,573,565.58 |
| Goods-in-process | 11,081,108.74 | 11,081,108.74 | |
| Contract performance cost | 20,015,002.85 | 20,015,002.85 | |
| Deferred expense for mould | 64,128,045.06 | 64,128,045.06 | |
| Total | 3,644,757,032.62 | 74,603,625.05 | 3,570,153,407.57 |
Continued
| Item | Beginning amount | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Raw materials | 150,806,222.67 | 4,061,217.23 | 146,745,005.44 |
| Stock commodities | 1,216,300,557.72 | 60,027,642.16 | 1,156,272,915.56 |
| Low value consumable articles | 3,141,564.20 | 143,306.82 | 2,998,257.38 |
| Goods in transit | 641,198,998.83 | 7,934,263.70 | 633,264,735.13 |
| Goods-in-process | 7,337,268.01 | 7,337,268.01 | |
| Contract performance cost | 28,988,664.67 | 28,988,664.67 | |
| Deferred expense for mould | 47,131,566.78 | 47,131,566.78 | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Beginning amount | ||
| Book balance | Inventory price decline provision/contract performance cost impairment provision | Book value | |
| Total | 2,094,904,842.88 | 72,166,429.91 | 2,022,738,412.97 |
(2) Provision for inventory depreciation and contract performance cost impairment provision
| Item | Amount at period-begin | Increase this period | Decrease this period | Amount at period-end | ||
| Accrual | Other | Reversal or reselling | Other | |||
| Raw materials | 4,061,217.23 | 1,440,622.58 | 1,274,518.93 | 4,227,320.88 | ||
| Stock commodities | 60,027,642.16 | 22,159,109.58 | 20,082,201.00 | 15,961.99 | 62,088,588.75 | |
| Goods in transit | 7,934,263.70 | 4,510,597.63 | 4,256,383.53 | 8,188,477.80 | ||
| Low value consumable articles | 143,306.82 | 2,634.77 | 46,703.97 | 99,237.62 | ||
| Total | 72,166,429.91 | 28,112,964.56 | 25,659,807.43 | 15,961.99 | 74,603,625.05 | |
(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 performance cost | Engineering construction Cost is higher than net realizable value (The processed products are decline) | Already used |
9. Contract assets
(1) Contract assets
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Warranty | 10,769,071.52 | 575,921.40 | 10,193,150.12 | 13,879,087.90 | 617,397.28 | 13,261,690.62 |
| Total | 10,769,071.52 | 575,921.40 | 10,193,150.12 | 13,879,087.90 | 617,397.28 | 13,261,690.62 |
(2) Contract assets are classified and listed according to the bad debt provision method
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single | 10,769,071.52 | 100.00 | 575,921.40 | 5.35 | 10,193,150.12 |
| Total | 10,769,071.52 | 100.00 | 575,921.40 | 5.35 | 10,193,150.12 |
Continued
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Category | Beginning balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Withdrawal bad debt provision by single | 13,879,087.90 | 100.00 | 617,397.28 | 4.45 | 13,261,690.62 |
| Total | 13,879,087.90 | 100.00 | 617,397.28 | 4.45 | 13,261,690.62 |
1）Bad debt provisions are made individually for contract assets
| Name | Beginning balance | Ending balance | ||||
| Book balance | Bad debt provision | Book balance | Bad debt provision | Ratio (%) | Reason | |
| Provision for bad debts of contract assets | 13,879,087.90 | 617,397.28 | 10,769,071.52 | 575,921.40 | 5.35 | Other party is expected to be at risk of default |
| Total | 13,879,087.90 | 617,397.28 | 10,769,071.52 | 575,921.40 | — | — |
（3）The provision, recovery or transfer of bad debt provisions for contract assets this yearproject
| Item | Provision for this Period | Transferred this year | Write -off this year | Reason |
| Provision for bad debts of contract assets | 94,052.32 | 135,528.20 | ||
| Total | 94,052.32 | 135,528.20 | — |
10. Non-current assets coming due within one year
| Item | Ending balance | Beginning balance |
| Creditor's right investment due within one year | 122,294,027.78 | |
| Total | 122,294,027.78 |
（1）Creditor's right investment due within one year
1）Creditor's right investment due within one year
| Name | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| large deposit certificates | 122,294,027.78 | 122,294,027.78 | ||||
| Total | 122,294,027.78 | 122,294,027.78 | ||||
2）.Creditor's right investment due within 1 year at the end of the period: N/A
11.Other current asset
| Item | Ending balance | Beginning balance |
| Held to maturity fixed deposits | 301,394,444.44 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Beginning balance |
| Held to maturity large deposit certificates | 100,261,944.44 | |
| VAT to be deducted | 204,277,714.77 | 193,911,165.30 |
| Advance payment of income tax | 25,702,879.66 | 29,599,620.50 |
| Contract acquisition cost | 43,560.92 | 701,222.80 |
| Local sales tax in Pakistan | 740,153.42 | 511,584.19 |
| .Amortization expense | 1,545,198.17 | 494,612.19 |
| Other | 213,164.70 | 201,678.09 |
| Total | 634,179,060.52 | 225,419,883.07 |
12.Creditors' right investment
（1）Other creditor's right investment
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| large deposit certificates | 980,754,190.44 | 980,754,190.44 | 420,537,485.54 | 420,537,485.54 | ||
| Fixed deposit | 250,783,680.56 | 250,783,680.56 | ||||
| Total | 1,231,537,871.00 | 1,231,537,871.00 | 420,537,485.54 | 420,537,485.54 | ||
（2）Other important creditor's right investment
| Item | Ending balance | |||
| Face value | Interest rate | Actual rate | Date of expiring | |
| large deposit certificates | 100,000,000.00 | 3.20% | 3.20% | 2026/1/31 |
| large deposit certificates | 80,000,000.00 | 3.35% | 3.35% | 2026/3/28 |
| large deposit certificates | 150,000,000.00 | 3.15% | 3.15% | 2027/5/16 |
| Fixed deposit | 250,000,000.00 | 3.05% | 3.05% | 2027/5/24 |
| large deposit certificates | 100,000,000.00 | 2.60% | 2.60% | 2027/6/20 |
| Total | 680,000,000.00 | — | — | — |
Continued
| Item | Beginning balance | |||
| Face value | Interest rate | Actual rate | Date of expiring | |
| large deposit certificates | 100,000,000.00 | 3.20% | 3.20% | 2026/1/31 |
| large deposit certificates | 80,000,000.00 | 3.35% | 3.35% | 2026/3/28 |
| large deposit certificates | 30,000,000.00 | 3.20% | 3.20% | 2026/3/16 |
| large deposit certificates | 30,000,000.00 | 3.30% | 3.30% | 2026/5/31 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Beginning balance | |||
| Face value | Interest rate | Actual rate | Date of expiring | |
| large deposit certificates | 50,000,000.00 | 3.30% | 3.30% | 2026/6/14 |
| large deposit certificates | 50,000,000.00 | 3.10% | 3.10% | 2026/6/26 |
| large deposit certificates | 20,000,000.00 | 3.15% | 3.15% | 2026/7/31 |
| large deposit certificates | 25,000,000.00 | 3.25% | 3.25% | 2025/8/30 |
| large deposit certificates | 25,000,000.00 | 3.30% | 3.30% | 2025/8/30 |
| Total | 410,000,000.00 | — | — | — |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
13. Long-term equity investment
| Invested enterprise | Beginning balance | Impairment provision begin- year balance | Changes in Current period | Ending balance | Balance at year-end of impairment | |||||||
| Additional investment | Disinvestment | Investment profit and loss confirmed by equity method | Other comprehensive income adjustment | Other changes of equity | Declaration of cash dividends or profits | Provision for impairment | Other | |||||
| Associated companies | ||||||||||||
| 1.Hefei Xingmei Assets Management Co., Ltd. | 14,139,256.78 | 45,466.71 | 14,184,723.49 | |||||||||
| 2.Sichuan Zhiyijia Network Technology Co., Ltd. note1 | 68,854,162.70 | 5,998,850.59 | 5,097,740.91 | 69,755,272.38 | ||||||||
| 3. Sichuan Tianyou Guigu Technology Co., Ltd.note2 | 2,948,859.23 | -81,933.93 | 2,866,925.30 | |||||||||
| 4. Chengdu Guigu Environmental Tech. Co., Ltd.note3 | 8,756,262.50 | -887,937.72 | 7,868,324.78 | |||||||||
| 5.ChanghongRuba ElectricCompany(Private)Ltd. note4 | ||||||||||||
| 6. Hefei Xinmei Solar Energy Technology Co., Ltd. note5 | 2,202,871.20 | 2,202,871.20 | ||||||||||
| 7. .Sichuan Hongyun Venture Investment Partnership（LP）note6 | 18,047,270.54 | 114,051.45 | 18,161,321.99 | |||||||||
| Total | 112,745,811.75 | 7,391,368.30 | 7,300,612.11 | 112,836,567.94 | ||||||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
Note 1: on 16 December 2014, the Company executed a joint venture agreement with its controllingshareholder Sichuan Changhong Electric Co., LTD, targeting to jointly establish Sichuan ZhiyijiaNetwork Technology Co., Ltd. On 5 January 2015, Sichuan Zhiyijia Network Technology Co., Ltd wasofficially incorporated with registered capital of 50 million yuan, among which, the Company madecontribution of 15 million yuanwith shareholding proportion of 30% and Sichuan Changhong ElectricCo., LTD made contribution of 35 million yuanwith shareholding proportion of 70%. In 2019, theCompany increase capital of 29,087,040.00 yuan (of which: 20 million yuan reckoned in registeredcapital and 9,087,040 yuan reckoned in capital reserves) to Zhiyijia with shareholding ratio up to 50%.Note 2: Sichuan Tianyou Guigu Technology Co., Ltd. was incorporated on 31 March 2015 withregistered capital of 100 million yuan. Our subsidiary Changhong Air Conditioner made capitalcontribution of RMB 25 million in cash, accounting for 25% of the registered capital. Chengdu JiaodaoProperty Development Company made capital contribution of 20 million yuan, accounting for 20% ofthe registered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capitalcontribution of 20 million yuan, accounting for 20% of the registered capital. Mianyang InvestmentHolding (Group) Co., Ltd made capital contribution of 5 million yuan, accounting for 5% of theregistered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co., Ltd made capitalcontribution of 5 million yuan, accounting for 5% of the registered capital. Jiangsu Runye InvestmentCo., Ltd. made capital contribution of 10 million yuan, accounting for 10% of the registered capital. InNovember 2015, Jiangsu Runye Investment Co., Ltd. transferred all its 10% shares to Sichuan ShuyeJiachen Real Estate Development Co., Ltd.;Chengdu Dongyu Shangmao Co., Ltd made capitalcontribution 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. 1Enterprise Management Consulting Partnership (Limited Partnership).In 2016, shareholders meeting ofSichuan Tianyou Guigu Technology Co., Ltd. agreed to reduce the 50 million Yuan capital, theshareholders are reducing the capital by ratio of share-holding. After capital reduction, subsidiaryChanghong Air conditioner contributed 12.5 million Yuan, representing 25% of the registered capital.Note 3: Chengdu Guigu Environmental Tech. Co., Ltd. was incorporated on 22 May 2013 withregistered capital of 40 million yuan. Our subsidiary Changhong Air Conditioner made capitalcontribution of 10 million yuan, accounting for 25% of the registered capital. Chengdu Jiaodao PropertyDevelopment Company made capital contribution of 8 million yuan, accounting for 20% of theregistered capital. Chengdu Southwest Jiaotong University Industry (Group) Co., Ltd made capitalcontribution of 8 million yuan, accounting for 20% of the registered capital. Mianyang InvestmentHolding (Group) Co., Ltd made capital contribution of 2 million yuan, accounting for 5% of theregistered capital. Shanghai Zhongcheng Xindaya Financial Information Service Co., Ltd made capitalcontribution of 2 million yuan, accounting for 5% of the registered capital. Sichuan Shuye JiachenProperty Development Company made capital contribution of 4 million yuan, accounting for 10% ofthe registered capital. Chengdu Dongyu Shangmao Co., Ltd made capital contribution of 6 million yuan,accounting for 15% of the registered capitalNote 4: Zhongshan Changhong, a subsidiary of the Company, entered into a supplemental joint ventureagreement with RUBA Comprehensive Trading Company in 2017, pursuant to which, both partiesagreed to increase capital contribution of US$ 1,130,191.00, among which, Zhongshan Changhongsubscribed to contribute US$ 452,076.00 (equivalent to 3,001,649.02 yuan on the actual contributiondate) according to the original shareholding proportion of 40% and RUBA Comprehensive TradingCompany subscribed to contribute US$ 678,115.00 according to the original shareholding proportion of
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
60%.Note 5: Hefei Xinmeitai Energy Technology Co., Ltd. was incorporated on April 18, 2002, with aregistered capital of 10 million yuan. Subsidiary Hefei Meiling Group Holdings Limited invested 3.1114million 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 AssetManagement Co., Ltd. invested 1.9166 million yuan, accounting for 19.166% of the registered capital.Note 6.On May 5, 2023, the Company signed a partnership agreement with the controlling shareholderSichuan Changhong Electric Co.,Ltd., Sichuan Changhong Electronic (Group) Co., Ltd. and SichuanHongyun Venture Equity Investment Management Co., Ltd. to jointly establish Sichuan HongyunVenture Capital Partnership (Limited Partnership) with a registered capital of RMB 148 million, ofwhich RMB 45 million was subscribed by the Company, with a shareholding ratio of 304.1%. This year,the Company actually contributed RMB 18 million.
14. Other non-current financial assets
| Item | Ending balance | Beginning balance |
| Sichuan Changhong Group Finance Co., Ltd. | 554,145,436.29 | 554,145,436.29 |
| Sichuan Hongyun New-Generation Information technology Venture Capital Fund Partnership (limited partnership) | 36,507,860.19 | 36,507,860.19 |
| Changhong Group Sichuan Shenwan Hongyuan Strategic New Industrial Parent Fund Partnership (limited partnership) | 68,686,219.00 | 68,686,219.00 |
| Huishang Bank Co., Ltd. | 14,800,000.00 | 14,800,000.00 |
| Total | 674,139,515.48 | 674,139,515.48 |
15. Investment real estate
(1) Investment real estate measured at costs
| Item | House and buildings | Total |
| I.Original book value | ||
| 1.Beginning balance | 62,361,143.47 | 62,361,143.47 |
| 2.Increase in this year | 16,612.44 | 16,612.44 |
| （1）Other | 16,612.44 | 16,612.44 |
| 3.Decrease in this year | ||
| 4.Ending balance | 62,377,755.91 | 62,377,755.91 |
| II.Accumulated depreciation and accumulated amortization | ||
| 1.Beginning balance | 11,440,655.76 | 11,440,655.76 |
| 2.Increase in this year | 988,995.63 | 988,995.63 |
| （1）Withdrawal or amortization | 988,995.63 | 988,995.63 |
| 3.Decrease in this year | ||
| 4.Ending balaqnce | 12,429,651.39 | 12,429,651.39 |
| III.Impairment provision | ||
| IV.Book value |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | House and buildings | Total |
| 1.Ending book value | 49,948,104.52 | 49,948,104.52 |
| 2. Opening book value | 50,920,487.71 | 50,920,487.71 |
(2) No investment real estate measured by fair value at year-end.
(3) Investment real estate without property certification held
| Item | Book value | Reasons for failing to complete property rights certificate |
| J04workshop | 26,125,205.32 | Related property rights in procedure |
| J03workshop | 18,069,680.82 | Related property rights in procedure |
| J20 air compressor station workshop | 1,290,044.18 | Related property rights in procedure |
| J18 opening and closing office | 624,284.91 | Related property rights in procedure |
| Total | 46,109,215.23 |
16.Fixed assets
| Item | Book value at year-end | Book value at year-begin |
| Fixed assets | 2,123,123,749.75 | 2,104,618,850.52 |
| Liquidation of fixed assets | 32,847,524.11 | 32,293,183.76 |
| Total | 2,155,971,273.86 | 2,136,912,034.28 |
16.1 Fixed assets
（1） Fixed assets
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| I.Original book value | |||||
| 1.Beginning balance | 1,737,673,105.29 | 1,842,041,115.75 | 35,510,533.61 | 271,253,897.93 | 3,886,478,652.58 |
| 2.Increase in this year | 2,069,951.34 | 113,785,930.98 | 748,991.47 | 23,427,206.51 | 140,032,080.30 |
| (1)Purchase | 5,609,968.51 | 1,590,847.59 | 7,200,816.10 | ||
| (2)Construction in progress transfer-in | 1,948,176.61 | 108,175,962.47 | 734,305.59 | 21,793,071.97 | 132,651,516.64 |
| （3）Other increase | 121,774.73 | 14,685.88 | 43,286.95 | 179,747.56 | |
| 3.Decrease in this year | 130,121.94 | 19,813,175.36 | 117,578.79 | 4,043,072.20 | 24,103,948.29 |
| （1）Dispose or retirement | 17,708,252.57 | 117,578.79 | 3,774,457.45 | 21,600,288.81 | |
| (2)Construction in progress transfer-in | 2,104,387.40 | 233,972.85 | 2,338,360.25 | ||
| （3）Other Derease | 130,121.94 | 535.39 | 34,641.90 | 165,299.23 | |
| 4.Ending balaqnce | 1,739,612,934.69 | 1,936,013,871.37 | 36,141,946.29 | 290,638,032.24 | 4,002,406,784.59 |
| II.Accumulated depreciation | |||||
| 1.Beginning balance | 507,688,570.52 | 1,114,275,828.03 | 24,857,123.23 | 133,926,258.07 | 1,780,747,779.85 |
| 2.Increase in this year | 28,021,024.61 | 72,096,021.50 | 1,345,744.16 | 16,096,306.74 | 117,559,097.01 |
| (1)Accrual | 28,021,024.61 | 72,096,021.50 | 1,333,204.85 | 16,043,131.86 | 117,493,382.82 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | House and buildings | Machinery equipment | Transport equipment | Other equipment | Total |
| （2）Other increase | 12,539.31 | 53,174.88 | 65,714.19 | ||
| 3.Decrease in this year | 16,311,354.13 | 111,699.85 | 3,710,645.96 | 20,133,699.94 | |
| （1）Dispose or retirement | 15,537,011.47 | 111,699.85 | 3,559,631.85 | 19,208,343.17 | |
| (2)Construction in progress transfer-in | 774,342.66 | 151,014.11 | 925,356.77 | ||
| 4.Ending balaqnce | 535,709,595.13 | 1,170,060,495.40 | 26,091,167.54 | 146,311,918.85 | 1,878,173,176.92 |
| III.Impairment provision | |||||
| 1.Beginning balance | 113,462.70 | 998,559.51 | 1,112,022.21 | ||
| 2.Increase in this year | |||||
| 3.Decrease in this year | 2,164.29 | 2,164.29 | |||
| (1)Dispose or retirement | 2,164.29 | 2,164.29 | |||
| 4.Ending balaqnce | 113,462.70 | 996,395.22 | 1,109,857.92 | ||
| IV.Book value | |||||
| 1.Ending book value | 1,203,903,339.56 | 765,839,913.27 | 10,050,778.75 | 143,329,718.17 | 2,123,123,749.75 |
| 2. Opening book value | 1,229,984,534.77 | 727,651,825.02 | 10,653,410.38 | 136,329,080.35 | 2,104,618,850.52 |
The new fixed assets in this year mainly due to the132,651,516.64 yuan transfer from construction inprocess; decrease of the fixed assets in Current Year mainly including assets dispose for retirement.
(2) Fixed assets temporary idle at year-end. N/A
(3) Fixed assets leased through operating lease at year-end
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
| House and buildings | 50,691,336.08 | 18,914,736.77 | 31,776,599.31 | |
| Machinery equipment | 22,429,348.29 | 15,402,132.29 | 7,027,216.00 | |
| Total | 73,120,684.37 | 34,316,869.06 | 38,803,815.31 |
(4) Fixed assets without property certificate
| Item | Book value | Reason of not complete the property certificate |
| J07 electrical workshop | 42,932,327.84 | Related property rights in procedure |
| J02workshop | 27,617,073.32 | Related property rights in procedure |
| J05 evaporator and condenser workshop | 26,628,077.95 | Related property rights in procedure |
| J01workshop | 25,597,448.16 | Related property rights in procedure |
| J06 central air-conditioner workshop | 18,062,009.85 | Related property rights in procedure |
| J50finished product warehouse | 15,921,658.66 | Related property rights in procedure |
| J51finished product warehouse | 15,448,457.60 | Related property rights in procedure |
| J53finished product warehouse | 11,722,286.51 | Related property rights in procedure |
| J52finished product warehouse | 11,203,657.15 | Related property rights in procedure |
| J54finished product warehouse | 10,956,078.69 | Related property rights in procedure |
| J55finished product warehouse | 10,101,083.52 | Related property rights in procedure |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Book value | Reason of not complete the property certificate |
| J56 finished product warehouse | 10,101,083.52 | Related property rights in procedure |
| J09raw material warehouse | 6,122,522.20 | Related property rights in procedure |
| J10raw material warehouse | 4,731,618.22 | Related property rights in procedure |
| J11raw material warehouse | 4,661,225.90 | Related property rights in procedure |
| J08 packing materials warehouse | 4,248,874.06 | Related property rights in procedure |
| J17 chemical storage | 1,453,978.78 | Related property rights in procedure |
| J15 house of refrigerant forklift | 1,424,846.66 | Related property rights in procedure |
| J16 chemical storage | 1,173,465.56 | Related property rights in procedure |
| J19 main guard room | 348,086.85 | Related property rights in procedure |
| J19A guard room | 184,676.45 | Related property rights in procedure |
| J19D guard room | 135,795.39 | Related property rights in procedure |
| J19E guard room | 135,795.39 | Related property rights in procedure |
| Total | 250,912,128.23 |
16.2 Disposal of fixed assets
| Item | Ending balance | Beginning balance | Reasons for disposal transferred |
| Relevant assets disposal for reserved lands | 32,293,183.76 | 32,293,183.76 | Relocation for land reserve |
| Machinery equipment | 554,340.35 | For customer acceptance and treatment | |
| Total | 32,847,524.11 | 32,293,183.76 |
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government ofFeidong county, the land reserve center of Feidong county will purchase and store the land use right of aneconomic development zone located at Feidong county, Hefei city, which is owned by the Company’ssubordinate companies, Equator Electric and Equator Home Appliance, respectively, with an area of19,245.09 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 46,161.9 sq.m. (Approximately
69.24 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367, the stated use of the land isfor industrial purpose). The total consideration for purchasing and storage is approximately 36 millionyuan, of which the consideration for the land use right owned by Equator Electric and Equator HomeAppliance is approximately 10.59 million yuan and 25.41 million yuan, respectively. The Company hascompleted the relocation of occupants of the premises, and the net fixed assets in relation to the land willtransfer as disposal, accounting treatment will be conduct in line with relevant rules upon receiving of therelocation compensation.No impairment of relevant assets disposal for reserved lands at year-end.
17. Construction in progress
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Beginning balance |
| Construction in progress | 69,381,313.71 | 69,920,839.20 |
| Total | 69,381,313.71 | 69,920,839.20 |
(1) Details of construction in progress
| Items | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Hefei manufacturing base refrigerator front-end production capacity promotion project | 15,536,793.51 | 15,536,793.51 | ||||
| Technical transformation project of Zhongshan Changhong | 7,580,020.97 | 7,580,020.97 | 7,036,680.59 | 7,036,680.59 | ||
| Investment projects to improve production and ensure supply | 5,946,371.69 | 5,946,371.69 | - | |||
| Industrial Internet Changhong Meiling Promotion Project | 5,633,962.29 | 5,633,962.29 | 5,563,207.57 | 5,563,207.57 | ||
| New flat color plate door shell line project | 4,140,206.21 | 4,140,206.21 | 2,155,584.07 | 2,155,584.07 | ||
| Extrusion and crushing capacity improvement demand project of Hefei refrigerator manufacturing company | 3,299,034.71 | 3,299,034.71 | 1,033,130.00 | 1,033,130.00 | ||
| Fixed assets project of 7 kg supporting production equipment | 3,069,026.56 | 3,069,026.56 | 1,534,513.28 | 1,534,513.28 | ||
| Transformation and maintenance project of large line for B-line shift recovery | 2,632,393.75 | 2,632,393.75 | 2,048,088.46 | 2,048,088.46 | ||
| Blister machine project | 2,421,592.91 | 2,421,592.91 | 1,027,433.62 | 1,027,433.62 | ||
| Air conditioning manufacturing system capacity improvement renovation project | 1,361,215.39 | 1,361,215.39 | 24,062,124.83 | 24,062,124.83 | ||
| 415 series conversion project | 1,038,128.20 | 1,038,128.20 | 648,083.64 | 648,083.64 | ||
| Liquid nitrogen tank production line construction | 580,864.94 | 580,864.94 | 680,956.02 | 680,956.02 | ||
| 23 years of Manufacturing System Automation Project | 532,412.89 | 532,412.89 | 1,113,002.29 | 1,113,002.29 | ||
| Commercial kitchen refrigerator cabinet project | - | 1,894,989.00 | 1,894,989.00 | |||
| Washing machine manufacturing company capacity and production efficiency improvement project in the first quarter | - | 1,624,647.04 | 1,624,647.04 | |||
| Large refrigerator efficiency improvement and transformation project | - | 1,388,626.00 | 1,388,626.00 | |||
| Rectification project of elevators and fire hazards in charging area of finished product warehouse | - | 1,124,589.14 | 1,124,589.14 | |||
| Laboratory investment projects | - | 627,076.10 | 627,076.10 | |||
| Supporting production equipment of washing machine | - | 617,699.12 | 617,699.12 | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Items | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Meiling extrusion line relocation and capacity expansion project | - | 339,115.04 | 339,115.04 | |||
| Adaptability transformation project of fin stamping production line and its supporting equipment | - | 2,634,632.94 | 2,634,632.94 | |||
| Projects to be installed equipment | - | 2,003,069.71 | 2,003,069.71 | |||
| Other petty projects | 15,609,289.69 | 15,609,289.69 | 10,763,590.74 | 10,763,590.74 | ||
| Total | 69,381,313.71 | - | 69,381,313.71 | 69,920,839.20 | - | 69,920,839.20 |
(2) Changes in significant construction in progress
| Name of the project | Budget | Beginning balance | Amount increased in the current period | Amount of fixed assets transferred in the current period | Other decreases for the period | Ending balance |
| Hefei manufacturing base refrigerator front-end production capacity improvement project | 88,000,000.00 | 15,536,793.51 | 15,536,793.51 |
Continued
| The proportion of the cumulative investment of the project to the budget | Progress of the project | The accumulated amount of interest capitalization | Thereinto: the amount of interest capitalization in the current period | Capitalization rate of interest for the current period | Funds source |
| 19.95% | 50% | Self funds |
18. Right-of-use assets
| Item | House and buildings | Total |
| I. Original book value | ||
| 1.Beginning balance | 62,005,148.15 | 62,005,148.15 |
| 2.Increase in this year | 72,131,961.87 | 72,131,961.87 |
| (1) Rent in | 72,131,961.87 | 72,131,961.87 |
| 3. Decrease in this year | ||
| 4.Ending balaqnce | 134,137,110.02 | 134,137,110.02 |
| II.Accumulated depreciation | ||
| 1.Beginning balance | 12,011,747.54 | 12,011,747.54 |
| 2. Increase in this year | 6,700,265.95 | 6,700,265.95 |
| (1)Accrual | 6,700,265.95 | 6,700,265.95 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | House and buildings | Total |
| 3. Decrease in this year | ||
| 4.Ending balaqnce | 18,712,013.49 | 18,712,013.49 |
| III.Impairment provision | ||
| 1.Beginning balance | ||
| 2. Increase in this year | ||
| 3. Decrease in this year | ||
| 4.Ending balaqnce | ||
| IV.Book value | ||
| 1.Ending book value | 115,425,096.53 | 115,425,096.53 |
| 2. Opening book value | 49,993,400.61 | 49,993,400.61 |
The Company accrual the depreciation on right-of-use assets from the commencement date of the leaseperiod. Depending on use of the assets, amount of accrual will included in costs of relevant assets orcurrent gain/loss.
19. Intangible assets
(1) Intangible assets
| Item | Land use right | Trademark special right | Non-patent technology | Patent technology | Other | Total |
| I.Original book value | ||||||
| 1.Beginning balance | 864,798,616.68 | 283,292,439.34 | 743,027,808.89 | 196,090,356.16 | 11,193,437.00 | 2,098,402,658.07 |
| 2.Increase in this year | 49,878,953.27 | 25,301,221.76 | 379,622.64 | 75,559,797.67 | ||
| (1) Internal research | 49,878,953.27 | 25,301,221.76 | 75,180,175.03 | |||
| （2）Other | 379,622.64 | 379,622.64 | ||||
| 3.Decrease in this year | 379,622.64 | 379,622.64 | ||||
| (1) Disposal | ||||||
| (2)Other decreases | 379,622.64 | 379,622.64 | ||||
| 4.Ending balaqnce | 864,798,616.68 | 283,292,439.34 | 792,527,139.52 | 221,391,577.92 | 11,573,059.64 | 2,173,582,833.10 |
| II.Accumulated amortization | ||||||
| 1.Beginning balance | 233,381,336.43 | 283,292,439.34 | 550,293,846.69 | 76,940,491.50 | 4,235,458.67 | 1,148,143,572.63 |
| 2.Increase in this year | 9,206,326.39 | 45,782,698.32 | 17,042,208.15 | 857,366.38 | 72,888,599.24 | |
| (1)Accrual | 9,206,326.39 | 45,782,698.32 | 17,042,208.15 | 572,649.42 | 72,603,882.28 | |
| （2）Other | 284,716.96 | 284,716.96 | ||||
| 3.Decrease in this year | 284,716.96 | 284,716.96 | ||||
| （1）Other | 284,716.96 | 284,716.96 | ||||
| 4.Ending balaqnce | 242,587,662.82 | 283,292,439.34 | 595,791,828.05 | 93,982,699.65 | 5,092,825.05 | 1,220,747,454.91 |
| III.Impairment provision |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Land use right | Trademark special right | Non-patent technology | Patent technology | Other | Total |
| 1.Beginning balance | 41,003,993.41 | 18,291,161.97 | 4,508,495.33 | 63,803,650.71 | ||
| 2.Increase in this year | ||||||
| 3.Decrease in this year | ||||||
| 4.Ending balaqnce | 41,003,993.41 | 18,291,161.97 | 4,508,495.33 | 63,803,650.71 | ||
| IV.Book value | ||||||
| 1.Ending book value | 622,210,953.86 | 155,731,318.06 | 109,117,716.30 | 1,971,739.26 | 889,031,727.48 | |
| 2. Opening book value | 631,417,280.25 | 151,729,968.79 | 100,858,702.69 | 2,449,483.00 | 886,455,434.73 |
The intangible assets resulted from internal research takes3.46% of the balance of intangible assets atyear-end
(2) No land use right without property certification done at year-end
(3) Impairment test of intangible assets:N/A
20. Development expense
（1）Detail
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Development expense | 110,820,740.92 | 110,820,740.92 | 97,177,535.34 | 97,177,535.34 | ||
| Total | 110,820,740.92 | 110,820,740.92 | 97,177,535.34 | 97,177,535.34 | ||
（2）Other
Development expenditure are detailed in note VI to this financial statement..
21. Goodwill
(1) Original value of goodwill
| Invested enterprise | Beginning balance | Increase this year | Decrease this year | Ending balance | ||
| Formation from enterprise merger | Other | Formation from enterprise merger | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
(2) Impairment loss of goodwill
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Invested enterprise | Beginning balance | Increase this year | Decrease this year | Ending balance | ||
| Accrual | Other | Accrual | Other | |||
| Hefei Meiling Group Holdings Limited | 3,553,367.77 | 3,553,367.77 | ||||
| Total | 3,553,367.77 | 3,553,367.77 | ||||
Note: The Company’s goodwill has been fully accrued for impairment reserves at year-end.
22. Long-term prepaid expenses
| Item | Opening balance | Increase this period | Amortization for the period | Other decreases | Ending balance |
| Long-term prepaid expenses | 35,698,465.62 | 4,577,809.12 | 7,060,808.34 | 33,215,466.40 | |
| Total | 35,698,465.62 | 4,577,809.12 | 7,060,808.34 | 33,215,466.40 |
23. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without the offset
| Item | Ending balance | Beginning balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Deferred income tax assets recognized from ir-reparable losses | 450,041,039.30 | 67,506,155.91 | 575,117,840.02 | 86,267,676.00 |
| Deferred income tax assets recognized from assets impairment | 329,143,252.73 | 49,760,008.05 | 312,522,821.29 | 47,114,940.66 |
| Deferred income tax assets recognized from deferred income | 76,103,886.35 | 11,415,582.96 | 89,179,865.35 | 13,376,979.81 |
| Deferred income tax assets recognized by lease liabilities | 112,468,629.53 | 17,357,210.62 | 52,138,935.61 | 7,287,948.90 |
| Deferred income tax assets recognized from accrual liability | 35,570,774.19 | 5,441,345.15 | 31,904,790.39 | 4,785,718.56 |
| Deferred income tax assets recognized from Dismission welfare | 12,886,850.40 | 1,933,027.56 | 13,940,576.25 | 2,091,086.44 |
| Accrued income tax assets | 7,676,622.07 | 1,655,300.91 | 6,464,906.83 | 1,367,611.03 |
| Deferred income tax assets recognized by changes in fair value | 21,275,136.81 | 3,191,270.53 | 323,557.50 | 48,533.63 |
| Total | 1,045,166,191.38 | 158,259,901.69 | 1,081,593,293.24 | 162,340,495.03 |
(2) Deferred income tax liabilities without the offset
| Item | Ending balance | Beginning balance | ||
| Taxable temporary differences | Deferred income tax liability | Taxable temporary differences | Deferred income tax liability | |
| Recognized by changes in fair value | 54,610,621.34 | 7,512,564.33 | 72,922,565.81 | 10,938,384.87 |
| Deferred income tax liabilities recognized by use asset | 110,898,237.37 | 17,893,276.46 | 49,993,400.61 | 7,031,136.31 |
| Recognized by fixed assets depreciation | 23,213,429.66 | 3,484,182.62 | 25,632,968.47 | 3,844,945.25 |
| Total | 188,722,288.37 | 28,890,023.41 | 148,548,934.89 | 21,814,466.43 |
(3) Details of unrecognized deferred income tax assets
| Item | Ending balance | Beginning balance |
| Deductible temporary difference | 134,020,915.31 | 159,108,623.94 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Beginning balance |
| Deductible loss | 187,044,746.04 | 216,256,401.45 |
| Total | 321,065,661.35 | 375,365,025.39 |
24. Other non-current assets
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Prepaid equipment, engineering, etc. | 2,446,254.28 | 2,446,254.28 | 15,299,373.85 | 15,299,373.85 | ||
| Contract asset | 12,083,853.03 | 623,720.00 | 11,460,133.03 | 11,955,960.50 | 653,720.00 | 11,302,240.50 |
| Total | 14,530,107.31 | 623,720.00 | 13,906,387.31 | 27,255,334.35 | 653,720.00 | 26,601,614.35 |
25.Assets with restricted ownership or use right
| Item | Ending balance | |||
| Book Balance | Book value | Restriction type | Restriction information | |
| Monetary funds | 426,428,115.13 | 426,428,115.13 | Frozen | Security deposit; Frozen for litigation |
| Receivable financing | 743,380,533.32 | 743,380,533.32 | Pledge | Pledge for issuing bank acceptance bills |
| Real estate investment | 5,795,017.72 | 3,007,051.80 | Mortgage | Loan mortgage |
| Fixed assets | 478,767,594.24 | 313,432,156.44 | Mortgage | Loan mortgage |
| Intangible assets | 415,797,056.93 | 260,033,471.63 | Mortgage | Loan mortgage |
| Total | 2,070,168,317.34 | 1,746,281,328.32 | — | — |
Continued
| Item | Beginning balance | |||
| Book Balance | Book value | Restriction type | Restriction information | |
| Monetary funds | 438,655,288.66 | 438,655,288.66 | Frozen | Security deposit; Frozen for litigation |
| Receivable financing | 997,291,535.93 | 997,291,535.93 | Pledge | Pledge for issuing bank acceptance bills |
| Real estate investment | 5,795,017.72 | 3,097,441.68 | Mortgage | Loan mortgage |
| Fixed assets | 478,732,601.33 | 321,209,491.52 | Mortgage | Loan mortgage |
| Intangible assets | 415,797,056.93 | 264,252,595.08 | Mortgage | Loan mortgage |
| Total | 2,336,271,500.57 | 2,024,506,352.87 | — | — |
26. Short-term loans
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(1)Classification of short-term loans
| Category | Ending balance | Beginning balance |
| Guaranteed loan | 5,000,000.00 | 5,000,000.00 |
| Loan in credit | 1,140,328,642.91 | 1,128,967,080.14 |
| Interest payable | 221,944.44 | 135,338.89 |
| Total | 1,145,550,587.35 | 1,134,102,419.03 |
(2)Short-term loans overdue：N/A.
27. Trading financial liability
| Item | Ending balance | Beginning balance |
| Trading financial liability | 46,906,758.56 | 32,229,012.86 |
| Including: Derivative financial liability | 46,906,758.56 | 32,229,012.86 |
28. Note payable
| Type | Ending balance | Beginning balance |
| Bank acceptance | 6,991,196,515.00 | 5,604,059,289.98 |
| Trade acceptance | 447,732,011.00 | 300,327,800.00 |
| Total | 7,438,928,526.00 | 5,904,387,089.98 |
The total amount of notes payable due and unpaid at the end of the current period was RMB 192,000.00,and the reason for the non-payment was that the creditor did not make a reminder payment.
29. Account payable
(1) Account payable
| Item | Ending balance | Beginning balance |
| Total | 6,482,294,160.76 | 3,882,303,908.89 |
| Including: Amount aged over 1 year | 83,777,136.56 | 87,743,285.28 |
(2) Major account payable with over one year book age at year-end.: N/A
30. Received in advance.
| Category | Ending balance | Beginning balance |
| Total | 847,417.67 | 55,949.90 |
| Including: Amount aged over 1 year |
31. Contract liabilities
(1) Contract liabilities
| Item | Ending balance | Beginning balance |
| Total | 394,822,462.19 | 405,698,756.02 |
| Including: Amount aged over 1 year | 25,237,697.74 | 42,798,796.43 |
(2) Major contract liabilities with over one year book age at year-end.: N/A
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(3)Significant changes in the book value in the current period: N/A
32. Wages payable
(1) Category
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance |
| Short-term compensation | 437,396,328.78 | 1,005,378,642.55 | 1,002,610,695.88 | 440,164,275.45 |
| After-service welfare- defined contribution plans | 1,752,993.49 | 68,448,865.84 | 68,518,355.32 | 1,683,504.01 |
| Dismiss welfare | 4,462,894.29 | 2,371,709.84 | 2,722,100.44 | 4,112,503.69 |
| Total | 443,612,216.56 | 1,076,199,218.23 | 1,073,851,151.64 | 445,960,283.15 |
(2) Short-term compensation
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance |
| Wages, bonuses, allowances and subsidies | 429,211,880.79 | 909,374,229.29 | 907,315,521.96 | 431,270,588.12 |
| Welfare for workers and staff | 557,735.88 | 27,360,479.50 | 27,271,065.89 | 647,149.49 |
| Social insurance | 1,701,031.21 | 29,402,367.32 | 29,488,156.68 | 1,615,241.85 |
| Including: Medical insurance | 1,588,055.26 | 27,036,608.58 | 27,042,248.98 | 1,582,414.86 |
| Work injury insurance | 29,219.11 | 2,360,749.61 | 2,357,141.73 | 32,826.99 |
| Maternity insurance | 83,756.84 | 5,009.13 | 88,765.97 | - |
| Housing accumulation fund | 5,412,345.24 | 36,574,105.36 | 36,383,051.19 | 5,603,399.41 |
| Labor union expenditure and personnel education expense | 513,335.66 | 2,667,461.08 | 2,152,900.16 | 1,027,896.58 |
| Total | 437,396,328.78 | 1,005,378,642.55 | 1,002,610,695.88 | 440,164,275.45 |
(3) Defined contribution plans
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance |
| Basic endowment insurance | 598,361.39 | 66,096,945.88 | 66,167,060.91 | 528,246.36 |
| Unemployment insurance | 1,154,632.10 | 2,351,919.96 | 2,351,294.41 | 1,155,257.65 |
| Total | 1,752,993.49 | 68,448,865.84 | 68,518,355.32 | 1,683,504.01 |
33. Tax payable
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Beginning balance |
| Value-added tax | 11,686,146.17 | 16,433,804.39 |
| Enterprise income tax | 36,181,243.91 | 22,442,997.30 |
| Individual income tax | 1,796,200.82 | 9,049,531.30 |
| Urban maintenance and construction tax | 7,063,245.92 | 8,800,180.85 |
| Real estate tax | 3,866,629.76 | 3,702,169.69 |
| Land use tax | 1,430,553.18 | 1,430,553.17 |
| Educational surtax | 5,196,405.31 | 6,388,436.72 |
| Stamp tax | 6,169,729.57 | 4,270,122.54 |
| Construction fund of Water Conservancy Projects | 657,544.85 | 663,334.83 |
| Treatment fund for abandon electrics & electronics | 16,436,695.00 | |
| Other | 2,353,137.82 | 2,299,925.92 |
| Total | 76,400,837.31 | 91,917,751.71 |
34. Other account payable
| Item | Ending balance | Beginning balance |
| Dividend payable | 6,005,989.72 | 5,384,407.44 |
| Other account payable | 1,033,230,180.96 | 879,330,313.86 |
| Total | 1,039,236,170.68 | 884,714,721.30 |
34.1 Dividend payable
| Item | Ending balance | Beginning balance |
| China Life Insurance (Group) Company | 65,987.57 | 432,607.23 |
| Hefei Branch of Bank of China | 631,013.60 | 446,576.60 |
| Hefei collective industry association | 631,012.60 | 446,575.90 |
| Provincial trust and investment company Wuhu office | 504,810.90 | 357,261.30 |
| China Life Insurance (Group) Company | 43,992.07 | 288,404.82 |
| BOC- Fullgoal Tianyi Securities Investment Fund | 153,697.50 | 153,697.50 |
| Other units | 3,975,475.48 | 3,259,284.09 |
| Total | 6,005,989.72 | 5,384,407.44 |
34.2 Other account payable
(1) Other account payable by nature
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Nature | Ending balance | Beginning balance |
| Accrued expenses (expenses occurred without reimbursed) | 500,069,530.97 | 381,110,482.12 |
| Receivables received temporary and deducted temporary | 10,766,232.79 | 13,201,384.59 |
| Deposit, margin | 156,884,291.78 | 170,042,120.52 |
| Not the come-and-go with related parties in statement scope | 339,850,177.36 | 285,951,275.98 |
| Other | 25,659,948.06 | 29,025,050.65 |
| Total | 1,033,230,180.96 | 879,330,313.86 |
(2) At end of the year, the major other account payable with account age over one year mainly refers tothe deposit and margin. :N/A
35. Non-current liability due within one year
| Item | Ending balance | Beginning balance |
| Long-term loan principal and interest due within one year | 45,299,832.44 | 40,172,155.56 |
| Lease liabilities due within one year | 14,495,340.68 | 8,650,642.91 |
| Total | 59,795,173.12 | 48,822,798.47 |
36. Other current liabilities
| Item | Ending balance | Beginning balance |
| Pending sales tax | 15,760,538.79 | 18,915,531.41 |
| Factoring fees payable | 2,095,449.88 | 218,335.59 |
| Bill recovery | 38,674.50 | |
| Total | 17,855,988.67 | 19,172,541.50 |
37. Long term borrowings
(1) Category of long term borrowings
| Category | Ending balance | Beginning balance |
| Loan in mortgage | 83,000,000.00 | 108,000,000.00 |
| Loan in credit | 6,058,089.90 | |
| Total | 89,058,089.90 | 108,000,000.00 |
(2) Long-term borrowings at period-end
| Loan from | Borrowing day | Returning day | Foreign currency | Interest rate | Amount at year-end (RMB) | Amount at year-begin(RMB) |
| EIBC (Export-Import Bank) Anhui Province Branch note1 | 2020/3/26 | 2026/11/25 | RMB | 3.755% | 83,000,000.00 | 98,000,000.00 |
| EIBC (Export-Import Bank) Anhui Province Branch note2 | 2019/12/23 | 2026/11/2 | RMB | 4.005% | 10,000,000.00 | |
| Zhongshan Rural Commercial Bank Co., Ltd. Zhongshan South Head Sub-branch note3 | 2024/1/25 | 2025/12/31 | RMB | 3.850% | 6,058,089.90 | |
| Total | 89,058,089.90 | 108,000,000.00 |
Note 1: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - Fixed
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
Assets)" with the Export-Import Bank of China Anhui Branch, the Company's fixed assets andintangible assets are used as mortgage for a long-term loan under the contract. And withdrawal of98,000,000.00 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 witha term of more than 5 years reduced by 0.195%, which fluctuates annually, and the amount of the loanis 98,000,000.00 yuan. According to the repayment plan agreed with the bank, It plans to repay15,000,000.00 yuan on June 25, 2025 has been reclassified to non-current liabilities due within one year.The balance at the end of the year is RMB 83,000,000.00.Note 2: The Company signed the "Loan Contract (Promoting the Opening-up of Loans in China - FixedAssets)" 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 fromDecember 23, 2019 to November 25, 2026, the interest rate of the loan is determined according to themarket quotation rate of the loan with a term of more than 5 years reduced by 0.195%, which fluctuatesannually, and the amount of the loan is 100,000,000.00 yuan. According to the repayment plan agreedwith the bank, the Company has repaid 70,000,000.00 yuan. It plans to repay 20,000,000.00 yuan onDecember 25, 2024 and repay 10,000,000.00 yuan on June 25, 2024, a total of 30,000,000.00 yuan hasbeen reclassified to non-current liabilities due within one year. The balance at the end of the year is 0yuan.Note 3:Hongyuan Heat Pump Technology (Zhongshan) Co., Ltd. and Zhongshan Rural CommercialBank Co., Ltd. Nantou Branch signed the "Loan Contract (Corporate Business-Fixed Assets)", with purecredit approval, no guarantee, no pledge, the loan period is January 25, 2024 to December 31, 2025, theloan amount in 2024 is 6,213,427.90 yuan, the borrowing interest rate is determined by increasing theone-year market base interest rate LPR by 40 basis points, adjusted based on the corresponding datetothe specific date of previous year, and the current interest rate is 3.85%. The principal is repaid at 2.5%of the single loan amount every six months, and the remaining principal is repaid in a lump sum on thematurity date of the contract. According to the repayment plan agreed with the bank, It plans to repay155,338.00 yuan on June 30, 2025 has been reclassified to non-current liabilities due within one year.The balance at the end of the year is 6,058,089.90 yuan.
38. Lease liability
| Item | Ending balance | Beginning balance |
| Lease liability | 104,173,573.28 | 43,488,292.70 |
| Total | 104,173,573.28 | 43,488,292.70 |
39. Long-term payable
| Item | Ending balance | Beginning balance |
| Special payable | 627,878.52 | 800,347.84 |
| Total | 627,878.52 | 800,347.84 |
39.1Special payable
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance | Reason |
| Special funds for technological | 800,347.84 | 172,469.32 | 627,878.52 | Technology plan project in |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance | Reason |
| transformation from Zhongshan Changhong | Zhongshan City |
40. Long-term wage payable
| Item | Ending balance | Beginning balance |
| Dismissal welfare | 10,530,588.34 | 11,417,181.82 |
| Total | 10,530,588.34 | 11,417,181.82 |
According to the internal early retirement policy, the long-term payable dismissal welfare bears by theCompany up to year-end amounting to 10,530,588.34yuan
41. Accrual liability
| Item | Ending balance | Beginning balance | Reason |
| Product quality guarantee note1 | 33,605,901.87 | 29,939,918.07 | Product warranty |
| Litigation matters note2 | 1,964,872.32 | 2,114,872.32 | |
| Total | 35,570,774.19 | 32,054,790.39 |
Note 1: Product quality deposit is the maintenance expense provided by the Company under thenational policy.Note2: In November 2021, Zhejiang Teruisi Pharmaceutical Inc. filed a lawsuit against Zhongke Meilingfor the "Cold Storage Design, Equipment Purchase and Installation Construction Contract". Currently,quality of the subject under the contract is being authenticated by a third party engineering qualityappraisal agency, the initial start-up operation test is now completed. Zhongke Meiling intends tomaintain the cold storage project, and the estimated maintenance cost is 1,720,534.42 yuan. Themanagement has provided a total estimated liability of 394337.90 yuan for other business lawsuits Theestimated liabilities of RMB 150,000.00 were reversed after the conclusion of the litigation in the currentperiod, and the estimated liabilities of RMB 244,337.90 were remaining in provision.
42. Deferred income
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance | Reason |
| Government subsidies---subsidies of development project | 102,040,223.27 | 2,334,900.00 | 14,503,242.16 | 89,871,881.11 | |
| Government subsidies---subsidies of Relocation | 30,937,271.06 | 1,326,544.47 | 29,610,726.59 | ||
| Total | 132,977,494.33 | 2,334,900.00 | 15,829,786.63 | 119,482,607.70 |
43. Share capital
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Items | Beginning balance | Change during the year (+、-)） | Ending balance | ||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 1,029,923,715.00 | 1,029,923,715.00 | |||||
44. Capital reserve
| Item | Beginning balance | Increase this period | Decrease this period | Ending balance |
| Share premium | 2,757,460,366.37 | 2,757,460,366.37 | ||
| Other capital reserve | 48,043,091.40 | 48,043,091.40 | ||
| Total | 2,805,503,457.77 | 2,805,503,457.77 |
45. Other comprehensive income
| Item | Beginning balance | Current period | Ending balance | ||||
| Account before income tax in Current Year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less：Income tax expenses | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Other comprehensive income re-divided into gains/losses | |||||||
| Conversion difference arising from foreign currency financial statement | -20,704,362.05 | -1,142,407.83 | -1,173,618.69 | 31,210.86 | -21,877,980.74 | ||
| Total | -20,704,362.05 | -1,142,407.83 | -1,173,618.69 | 31,210.86 | -21,877,980.74 | ||
46.Special reserves
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance |
| Safety production costs | 11,246,811.91 | 17,312,570.33 | 14,105,204.20 | 14,454,178.04 |
| Total | 11,246,811.91 | 17,312,570.33 | 14,105,204.20 | 14,454,178.04 |
Note: This year's increase refers to the work safety expenses accrued according to the notice issued bythe Ministry of Finance on November 21, 2022 on printing and distributing the AdministrativeMeasures for the Extraction and Use of Work Safety Expenses of Enterprises (CZ [2022] No.136).
47. Surplus reserves
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Beginning balance | Increase this year | Decrease this year | Ending balance |
| Statutory surplus reserve | 361,445,492.66 | 361,445,492.66 | ||
| Discretionary surplus reserve | 115,607,702.16 | 115,607,702.16 | ||
| Total | 477,053,194.82 | 477,053,194.82 |
48. Retained profit
| Item | Current period | Last Period |
| Prior year-end balance | 1,521,759,836.64 | 909,082,037.66 |
| Add: adjustment from undistributed profit at year-begin | 167,328.13 | |
| Including: retroactive adjustment by Accounting Standards for Business Enterprise | ||
| change of accounting policy | 167,328.13 | |
| Correction of former material error | ||
| Change of combination scope under common control | ||
| Beginning balance | 1,521,759,836.64 | 909,249,365.79 |
| Add: net profit attributable to shareholders of parent company for this year | 415,033,415.88 | 741,038,108.54 |
| Less: withdraw of statutory surplus reserve | 35,834,503.34 | |
| withdraw of discretionary surplus reserve | ||
| Withdraw of general risk provision | ||
| Dividend payable for ordinary shares | 308,977,114.50 | 92,693,134.35 |
| Dividend of ordinary shares transferred to share capital | ||
| Ending balance | 1,627,816,138.02 | 1,521,759,836.64 |
49. Operation income and operation cost
(1) Operation income and operation cost
| Item | Current period | Last period | ||
| Income | Cost | Income | Cost | |
| Main business | 14,847,789,922.86 | 13,208,737,884.37 | 12,734,698,313.84 | 11,126,041,806.09 |
| Other business | 99,880,368.84 | 53,068,681.43 | 93,996,009.73 | 52,872,269.74 |
| Total | 14,947,670,291.70 | 13,261,806,565.80 | 12,828,694,323.57 | 11,178,914,075.83 |
(2)The decomposition information of operation income and operation cost
| Type | Current Period | Last Year | ||
| Income | Cost | Income | Cost | |
| Product | ||||
| Including：Refrigerator, Freezer | 4,739,349,946.80 | 3,927,763,612.82 | 4,224,670,444.64 | 3,452,620,652.77 |
| Air-conditioning | 8,499,905,660.36 | 7,916,263,677.05 | 6,997,497,159.24 | 6,383,899,125.62 |
| Washing machine | 783,936,724.28 | 660,322,573.64 | 557,352,305.32 | 458,999,445.42 |
| Small household appliances and kitchen and bathroom | 744,514,913.93 | 643,013,706.71 | 852,703,435.92 | 746,076,815.25 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Type | Current Period | Last Year | ||
| Income | Cost | Income | Cost | |
| Other product | 80,082,677.49 | 61,374,314.15 | 102,474,968.72 | 84,445,767.03 |
| Other business | 99,880,368.84 | 53,068,681.43 | 93,996,009.73 | 52,872,269.74 |
| Area | ||||
| Domestic | 10,130,279,475.77 | 8,919,072,311.98 | 8,930,940,864.80 | 7,731,160,093.49 |
| Overseas | 4,817,390,815.93 | 4,342,734,253.82 | 3,897,753,458.77 | 3,447,753,982.34 |
| Total | 14,947,670,291.70 | 13,261,806,565.80 | 12,828,694,323.57 | 11,178,914,075.83 |
（3）Information related to performance obligations
| Item | Time to perform performance obligations | Material payment terms | Nature of the goods that the Company promises to transfer | Main responsible person or not | Amount expected to be refunded to customers undertaken by the Company | Types of quality assurance provided by the Company and related obligations |
| Income from sales of goods | When the customer obtains the control right of relevant commodities | Advance payment or payment collected according to credit period | Goods | Yes | No | Product quality assurance |
| Income from providing services | When customers obtain related services | Advance payment or payment collected according to credit period | Service | Yes | No |
(4)Information related to the transaction price allocated to the remaining performance obligationsAt the end of this year, the income corresponding to the performance obligations that have been signedbut not yet fulfilled or not yet fully fulfilled is RMB 112,929,265.33, of which RMB 49,843,805.15isexpected to be recognized in 2024, RMB53,085,460.18 in 2025 and RMB10,000,000.00 in 2026.
50. Business tax and extra charges
| Item | Current period | Last period |
| Treatment fund for abandon electrics & electronics | 45,585,295.00 | |
| City construction tax | 12,658,264.45 | 13,473,561.59 |
| Extra charge for education and local education surcharge | 9,528,988.49 | 10,374,633.25 |
| Real estate tax | 10,608,992.62 | 10,697,322.79 |
| Stamp duty | 12,554,573.75 | 10,239,001.40 |
| Land use tax | 3,870,113.74 | 3,870,702.26 |
| Water fund | 3,876,070.99 | 3,778,106.41 |
| Other | 13,909.15 | 7,143.92 |
| Total | 53,110,913.19 | 98,025,766.62 |
51. Sales expense
| Item | Current period | Last period |
| Salary, extra charges and labor service expenses | 301,793,753.60 | 327,557,081.46 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Current period | Last period |
| Market support expenses | 174,815,604.29 | 140,461,155.25 |
| National three guarantees expense | 94,809,310.25 | 81,830,891.01 |
| Shipping and Installation expense | 91,952,697.03 | 86,205,859.39 |
| Storage lease expenses | 70,156,124.81 | 45,248,950.36 |
| Insurance | 26,125,049.13 | 11,544,975.60 |
| Travelling expenses | 12,042,153.80 | 27,620,363.01 |
| Business activity expenses | 7,428,851.26 | 8,433,498.60 |
| Vehicle expenses | 7,091,465.14 | 6,329,264.05 |
| Depreciation expenses | 4,127,717.61 | 4,023,917.38 |
| Other expenses | 43,987,022.64 | 47,237,303.21 |
| Total | 834,329,749.56 | 786,493,259.32 |
52. Administration expense
| Item | Current period | Last period |
| Salary and social insurance etc. | 103,449,052.65 | 119,736,522.57 |
| Depreciation | 11,260,014.11 | 11,309,060.92 |
| Amortized intangible assets | 9,096,588.72 | 9,135,614.87 |
| Software use | 3,638,733.82 | 2,629,643.03 |
| Water and electricity fee | 3,314,456.03 | 2,425,289.58 |
| Property insurance | 2,258,205.69 | 1,875,442.73 |
| Safety in production | 2,187,081.24 | 2,078,232.07 |
| Business activities fee | 2,172,710.94 | 3,157,527.78 |
| Software use | 2,036,485.69 | 1,841,591.27 |
| Housing rent | 1,960,818.91 | 706,646.91 |
| Travelling fee | 1,703,367.94 | 1,841,650.97 |
| Other expenses | 14,358,990.25 | 26,225,642.90 |
| Total | 157,436,505.99 | 182,962,865.60 |
53. R&D expenses
| Item | Current period | Last period |
| Salary and social insurance etc. | 125,688,771.65 | 116,235,127.25 |
| Amortized intangible assets | 62,574,483.08 | 63,618,830.74 |
| Trial fee of R&D | 33,329,478.98 | 26,151,862.28 |
| Cost of mould | 19,477,506.31 | 13,061,216.32 |
| Depreciation | 11,382,038.44 | 10,012,109.72 |
| Technological development | 9,795,954.43 | 9,999,651.18 |
| Trial fee of R&D | 7,681,408.61 | 8,613,510.99 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Current period | Last period |
| Water and electricity fee | 5,451,257.04 | 5,616,418.28 |
| Other expenses | 12,220,699.74 | 11,867,471.17 |
| Total | 287,601,598.28 | 265,176,197.93 |
54. Financial expenses
| Item | Current period | Last period |
| Interest expenditure | 12,799,719.70 | 13,185,503.15 |
| Less: Interest income | 98,725,551.34 | 83,240,562.07 |
| Add: exchange loss | -8,064,704.24 | -35,883,923.32 |
| Procedure charge expenditure | 8,611,344.51 | 7,339,147.69 |
| Discount expenditure | -18,083,136.98 | -17,235,858.76 |
| Interest expense on lease liability | 1,761,401.61 | 821,767.04 |
| Total | -101,700,926.74 | -115,013,926.27 |
55. Other income
| Item | Current Period | Last Period |
| Advanced manufacturing value-added tax deduction | 50,468,374.01 | |
| The deferred income is transferred | 15,829,786.63 | 15,696,724.67 |
| Immediate VAT refund after collection | 4,288,247.02 | 4,165,995.12 |
| Talent incentives and technological transformation subsidies | 4,052,377.92 | 272,732.00 |
| Enterprise support funds | 2,338,639.00 | 8,905,000.00 |
| Other tax returns | 1,327,682.14 | 648,855.83 |
| Financial awards | 1,060,000.00 | 838,234.37 |
| Stable job subsidy | 633,337.08 | 216,067.21 |
| R & D Subsidy | 250,000.00 | 333,305.00 |
| Foregn economic and trade development promotion funds | 194,200.00 | |
| Other petty projects | 1,059,503.82 | 1,057,142.46 |
| Total | 81,307,947.62 | 32,328,256.66 |
56. Investment income
| Item | Current Period | Last Period |
| Long-term equity investment income by equity method | 7,391,368.30 | 12,544,969.44 |
| Investment income obtained from disposal of Trading financial assets | -6,015,323.23 | -4,626,995.54 |
| Investment income of other current financial assets during holding period | 1,656,388.88 | 1,840,756.94 |
| Investment income of other non-current financial assets during | 12,912,196.37 | 11,409,029.33 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| holding period | ||
| The termination of income recognition for financial assets measured by amortized cost | -24,604,289.53 | -14,192,040.21 |
| Interest income from debt investment during the holding period | 11,593,385.08 | 7,402,220.09 |
| Total | 2,933,725.87 | 14,377,940.05 |
57. Changes in fair value gains
| Item | Current Period | Last Period |
| Trading financial assets | -28,041,659.98 | 15,221,223.22 |
| Including :Income of fair value changes from derivative financial instruments | -30,482,326.98 | 14,587,494.15 |
| Interest accrual for wealth management products | 2,440,667.00 | 633,729.07 |
| Trading financial liability | -14,677,745.70 | -71,649,406.65 |
| Including: Income of fair value changes from derivative financial instruments | -14,677,745.70 | -71,649,406.65 |
| Total | -42,719,405.68 | -56,428,183.43 |
58. Credit impairment loss
| Item | Current Period | Last Period |
| Account receivable bad debt loss | 12,428,045.01 | -42,428,408.08 |
| Other account receivable bad debt loss | 47,845.63 | 1,346,818.25 |
| Total | 12,475,890.64 | -41,081,589.83 |
59. Assets impairment loss
| Item | Current Period | Last Period |
| Loss on inventory valuation | -27,799,697.87 | -16,752,702.16 |
| Impairment loss on contractual assets | 41,475.88 | -824,633.73 |
| Development expense impairment loss | -1,530,365.17 | |
| Other impairment losses of non-current assets | 30,000.00 | -590,000.00 |
| Total | -29,258,587.16 | -18,167,335.89 |
60. Income from assets disposal
| Item | Current Period | Last Period |
| Income from non-current assets disposal | 36,334.95 | |
| Including: income classify to assets ready for sale | ||
| income not classify as to assets ready for sale | 36,334.95 | |
| Including: Income from fixed assets disposal | 36,334.95 | |
| Total | 36,334.95 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
61. Non-operation revenue
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Income of penalty | 927,089.26 | 4,888,567.59 | 927,089.26 |
| Other | 1,623,453.44 | 5,815,452.21 | 1,623,453.44 |
| Total | 2,550,542.70 | 10,704,019.80 | 2,550,542.70 |
62. Non-operating expenditure
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in Current Period |
| Non-current asset retirement losses | 1,335,367.01 | 2,758,202.88 | 1,335,367.01 |
| Other | 3,141,723.09 | 256,596.34 | 3,141,723.09 |
| Total | 4,477,090.10 | 3,014,799.22 | 4,477,090.10 |
63. Income tax expenses
| Item | Current Period | Last Period |
| Current income tax | 41,949,054.19 | 8,379,498.72 |
| Deferred Income Tax | 11,156,150.32 | -7,454,488.68 |
| Total | 53,105,204.51 | 925,010.04 |
64. Other comprehensive income
Found more in 45. Other comprehensive income in V
65. Items of cash flow statement
(1) Cash related to business activities
1) Cash received from other activities relating to operation
| Item Government subsidy and rewards | Current Period | Last Period |
| Government subsidy and rewards | 11,231,873.04 | 13,652,143.10 |
| Cash deposit, deposit | 15,975,517.12 | 24,366,520.52 |
| Rental income | 2,745,771.84 | 2,985,657.33 |
| Compensations | 327,467.67 | 1,718,745.99 |
| Petty cash collection | 4,318.00 | 140,806.43 |
| Other | 7,689,238.80 | 3,021,399.10 |
| Total | 37,974,186.47 | 45,885,272.47 |
2) Cash paid for other activities relating to operation
| Item | Current Period | Last Period |
| Operating out of cash expenses | 366,583,583.43 | 306,192,633.71 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Petty cash, deposit, Cash deposit | 29,856,337.65 | 39,417,445.80 |
| Total | 396,439,921.08 | 345,610,079.51 |
(2) Cash related to Investment activities
1) Important cash received related to investment activities
| Item | Current Period | Last Period |
| Structural deposits | 1,300,000,000.00 | 530,000,000.00 |
| Total | 1,300,000,000.00 | 530,000,000.00 |
2)Important cash payable related to investment activities
| Item | Current Period | Last Period |
| Structural deposits | 2,380,000,000.00 | 650,000,000.00 |
| Large deposit certificate | 650,000,000.00 | 340,000,000.00 |
| Fixed deposits | 550,000,000.00 | |
| Total | 3,580,000,000.00 | 990,000,000.00 |
3) Cash received from other activities relating to investment
| Item | Current Period | Last Period |
| Interest income arising from bank savings | 99,765,587.63 | 81,700,559.42 |
| Cash deposit | 794,951.65 | 956,132.70 |
| Income of forward exchange settlement | 1,436,020.07 | 1,303,892.65 |
| Total | 101,996,559.35 | 83,960,584.77 |
4) Cash paid for other activities relating to investment
| Item | Current Period | Last Period |
| Loses of forward exchange settlement | 7,111,935.45 | 13,791,587.29 |
| Bid bond refund | 500,000.00 | |
| Total | 7,111,935.45 | 14,291,587.29 |
( 3) Cash related to financing activities
1) Cash received from other activities relating to financing
| Item | Current Period | Last Period |
| Recover restricted funds | 71,141,339.20 | 220,652,668.19 |
| Meiling series (internal) bill discounting fundraising | 1,155,206.59 | 26,054,470.31 |
| Total | 72,296,545.79 | 246,707,138.50 |
2) Cash paid for other activities relating to financing
| Item | Current Period | Last Period |
| Turn into limited funds | 58,914,165.67 | 134,086,488.59 |
| Meiling series (internal) bill discounting fundraising | 15,883,841.10 | 23,536,567.33 |
| Lease liability principal and interest | 5,486,967.90 | 2,353,526.71 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Intermediary service fee | 230,889.27 | 65,600.34 |
| Total | 80,515,863.94 | 160,042,182.97 |
3) Changes in liabilities arising from fund-raising activities
| Item | Beginning balance | Increase this period | Decrease this period | Ending balance | ||
| Cash changes | Non Cash changes | Cash changes | Non Cash changes | |||
| Short-term Loans | 1,134,102,419.03 | 1,121,669,129.02 | 11,470,295.20 | 1,120,031,742.01 | 1,659,513.89 | 1,145,550,587.35 |
| Long-term loans | 108,000,000.00 | 6,213,427.90 | 31,017.88 | 31,017.88 | 25,155,338.00 | 89,058,089.90 |
| Lease liabilities | 43,488,292.70 | 70,426,877.46 | 9,741,596.88 | 104,173,573.28 | ||
| Lease liabilities due within 1 year | 8,650,642.91 | 11,709,308.48 | 5,486,967.90 | 377,642.81 | 14,495,340.68 | |
| Long-term due within 1 year | 40,172,155.56 | 28,112,480.21 | 22,984,803.33 | 45,299,832.44 | ||
| Dividend payable | 5,384,407.44 | 315,069,034.92 | 314,447,452.64 | 6,005,989.72 | ||
| Total | 1,339,797,917.64 | 1,127,882,556.92 | 436,819,014.15 | 1,462,981,983.76 | 36,934,091.58 | 1,404,583,413.37 |
（4）Statement of cash flow in net amount
| Item | Relevant facts | Basis for adopting net presentation | Financial impact |
| Forward foreign exchange delivery | As a legal entity, the Company reports the gains or losses of foreign exchange contract delivery to the receipt of other cash related to investment activities and the payment of other cash related to investment activities | The reported information is more intuitive | No |
| Restricted funds | As a legal entity, the Company reports the current year's change of restricted funds to the receipt of other cash related to fund-raising activities and the payment of other cash related to fund-raising activities | Rolling reflection | No |
| Meiling (internal) notes discount fund-raising amount | As a legal entity, the Company reclassifies the current year's change in Meiling (internal) notes discount undue, from cash received from sales of goods, service provision/cash paid from purchase of goods, and receipt of services to other received cash related to fund-raising activities/other paid cash related to fund-raising activities | Rolling reflection | No |
（5）It does not involve the current cash receipts and payments, but affects the financial situation ofthe enterprise or may affect the cash flow of the enterprise in the future:N/A
66.Supplementary of the consolidated cash flow statement
（1）Supplementary of cash flow statement
| Item | Current Period | Last Period |
| 1. Net profit is adjusted to cash flow of operation activities: | ||
| Net profit | 424,830,039.95 | 369,929,382.64 |
| Add: provision for depreciation of assets | 2,393,554.97 | 435,749.77 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Current Period | Last Period |
| Credit impairment loss | -12,238,336.07 | 38,934,095.84 |
| Depreciation of fixed assets, consumption of oil gas assets and depreciation of productive biological assets | 118,482,378.45 | 112,075,611.84 |
| Amortization of intangible assets | 72,603,882.28 | 74,830,332.62 |
| Depreciation of right-of-use assets | 6,700,265.95 | 4,155,504.30 |
| Amortization of long-term retained expense | 7,060,808.34 | 1,235,884.46 |
| Loss from disposal of fixed assets, intangible assets and other long term assets (gain is listed with “-”) | 36,334.95 | - |
| Loss from discarding fixed assets as useless (gain is listed with “-”) | 1,317,077.20 | 2,721,451.99 |
| Loss from change of fair value (gain is listed with “-”) | 42,719,405.68 | 56,428,183.43 |
| Financial expense (gain is listed with “-”) | -93,990,535.88 | -105,938,982.24 |
| Investment loss (gain is listed with “-”) | -2,933,725.87 | -14,377,940.05 |
| Decrease of deferred income tax assets (increase is listed with “-”) | 4,080,593.34 | -4,935,498.56 |
| Increase of deferred income tax liabilities (decrease is listed with “-”) | 7,075,556.98 | -2,518,990.12 |
| Decrease of inventories (increase is listed with “-”) | -1,549,852,189.74 | -590,146,519.04 |
| Decrease of operational accounts receivable (increase is listed with “-”) | -461,842,328.60 | -1,555,010,894.69 |
| Increase of operational accounts receivable (decrease is listed with “-”) | 4,161,783,094.67 | 3,022,702,437.62 |
| Other | ||
| Net cash flow arising from operation activities | 2,728,225,876.60 | 1,410,519,809.81 |
| 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 period-end of cash | 8,613,097,566.14 | 7,245,577,241.32 |
| Less: Opening balance of cash | 8,391,128,635.87 | 6,113,222,069.76 |
| Add: Balance at period-end of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 221,968,930.27 | 1,132,355,171.56 |
(2) No net cash paid for subsidiary obtained in Current Period
(3) No net cash received from subsidiary disposal in Current Period
(4) Cash and cash equivalent
| Item | Ending balance | Beginning balance |
| Cash | 8,613,097,566.14 | 8,391,128,635.87 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Beginning balance |
| Including: cash in stock | 30,445.27 | 12,727.56 |
| Bank deposits available for payment at any time. | 8,610,951,284.18 | 8,387,387,613.83 |
| Other monetary fund available for payment at any time | 2,115,836.69 | 3,728,294.48 |
| Cash equivalents | ||
| Including: bond investment due within 3 months | ||
| Balance of cash and cash equivalents at year-end | 8,613,097,566.14 | 8,391,128,635.87 |
| Including: using the restricted cash and cash equivalents of the parent company or subsidiary of the group |
（5）This year, there is no limited scope of use but it is still listed in cash and cash equivalents
（6）Monetary funds that are not cash and cash equivalents
| Item | This period's amount | Last period's amount | Reasons other than cash and cash equivalents |
| Judicial freezing of funds due to contract disputes | 5,603,675.00 | 27,715,825.21 | Limited use |
| Guarantee and acceptance bill deposit | 420,824,440.13 | 410,939,463.45 | Limited use |
| Interest receivable | 10,163,610.51 | 10,901,601.18 | Interest accrual |
| Total | 436,591,725.64 | 449,556,889.84 | — |
67. Foreign currency
(1) Foreign currency
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| Monetary fund | 259,031,085.41 | ||
| Including: USD | 12,023,741.46 | 7.1268 | 85,690,800.64 |
| Euro | 13,048,818.82 | 7.6617 | 99,976,135.15 |
| PKR | 926,728,209.90 | 0.0256 | 23,724,242.17 |
| IDR | 41,615,900,843.00 | 0.000440 | 18,310,996.37 |
| AUD | 5,079,166.81 | 4.7650 | 24,202,229.85 |
| PHP | 5,066,432.14 | 0.1215 | 615,571.51 |
| Won | 1,254,790,849.00 | 0.005189 | 6,511,109.72 |
| Account receivable | 1,445,148,682.38 | ||
| Including: USD | 166,952,728.36 | 7.1268 | 1,189,838,704.48 |
| Euro | 9,454,795.67 | 7.6617 | 72,439,807.98 |
| PKR | 412,834,190.01 | 0.0256 | 10,568,555.26 |
| IDR | 119,688,257,765.00 | 0.000440 | 52,662,833.42 |
| AUD | 20,813,127.00 | 4.7650 | 99,174,550.16 |
| PHP | 65,619,743.50 | 0.1215 | 7,972,798.84 |
| Won | 2,407,290,854.00 | 0.005189 | 12,491,432.24 |
| Other account receivable | 1,162,321.73 | ||
| Including: USD | 102,747.50 | 7.1268 | 732,260.88 |
| PKR | 4,473,341.39 | 0.0256 | 114,517.54 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending foreign currency balance | Exchange rate | Ending RMB converted balance |
| IDR | 484,250,470.00 | 0.000440 | 213,070.21 |
| PHP | 843,400.00 | 0.1215 | 102,473.10 |
| Account payable | 53,633,110.34 | ||
| Including: USD | 488,535.33 | 7.1268 | 3,481,693.59 |
| Euro | 13,419.32 | 7.6617 | 102,814.80 |
| Other account payable | 621,020,495.22 | 0.0256 | 15,898,124.68 |
| Including: PKR | 60,037,668,601.00 | 0.000440 | 26,416,574.18 |
| IDR | 63,653,523.38 | 0.1215 | 7,733,903.09 |
| Other account payable | 18,623,183.96 | ||
| Including: PKR | 276,756,931.77 | 0.0256 | 7,084,977.45 |
| IDR | 25,666,936,872.00 | 0.000440 | 11,293,452.22 |
| PHP | 2,014,438.64 | 0.1215 | 244,754.29 |
(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. CHANGHONGMEILING ELECTRIC INDONESIA, PT, mainly operates in Jakarta; recording currency is IDR. CH-Meiling International (Philippines) Inc, mainly operates in Philippines; Recording currency is PHP.
68.Lease
（1）The Company as lessee
| Item | Amount incurred this period | Amount incurred last period |
| Interest expense of lease liabilities | 1,761,401.61 | 821,767.04 |
| Short-term lease expenses with simplified treatment included in current profits and losses | 5,707,741.23 | 4,802,249.90 |
The total cash outflow related to leasing is 10621500.81 yuan.
（2）The Company as lessor
1）Operating lease of the Company as lessor
| Item | Lease income | In which: income related to variable lease payment not included in lease receipts |
| House building | 10,098,660.44 | |
| Equipment | 1,645,139.72 | |
| Total | 11,743,800.16 |
2）Financial lease of the Company as lessor: N/A.
（3）The Company does not recognize the profit and loss of financial lease sales as a manufacturer ordistributor.VI.R&D expenditure
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Amount incurred this period | Amount incurred last period |
| Salary, social security, etc | 146,813,392.74 | 143,485,454.57 |
| Amortization of intangible assets | 62,574,483.08 | 63,618,830.74 |
| Cost of mould | 76,827,153.20 | 59,644,367.56 |
| R&D and trial production costs | 41,544,966.98 | 27,127,642.70 |
| Technological development expense | 10,749,161.73 | 12,057,739.60 |
| Depreciation expense | 10,817,365.05 | 9,064,081.71 |
| Inspection and certification fees | 9,214,086.26 | 10,541,017.26 |
| Domestic travel expenses | 2,786,185.99 | 2,136,403.01 |
| Other expenses | 16,628,549.03 | 15,504,855.14 |
| Total | 377,955,344.06 | 343,180,392.29 |
| Among them: Expensed R&D expenses | 287,601,598.28 | 265,176,197.93 |
| Capitalized R&D expenditure | 90,353,745.78 | 78,004,194.36 |
1.R&D projects eligible for capitalization
| Item | Beginning balance | Increased amount this year | Decreased amount this year | Ending balance | ||
| Internal development expenditure | Other increase | Recognized as intangible assets | Transfer to current profits and losses | |||
| Development of ice washing technology | 59,134,989.07 | 33,696,292.07 | 36,835,885.72 | 1,530,365.17 | 54,465,030.25 | |
| Development of air conditioning technology | 38,042,546.27 | 56,657,453.71 | 38,344,289.31 | 56,355,710.67 | ||
| Total | 97,177,535.34 | 90,353,745.78 | 75,180,175.03 | 1,530,365.17 | 110,820,740.92 | |
(1)Material capitalized R&D projects: N/A.
| Project | R&D progress | Estimated completion time | Expected ways of generating economic benefits | The starting point of capitalization | Specific basis for starting capitalization |
| Air conditioning technology development project | Under development | January 2025 | Product sales | January 2025 | R&D project assetization report |
(2) Provision for impairment of development expenditure for the current period
| Project | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance | Impairment test information |
| Dry-ice cleaning technology development | 1,530,365.17 | 1,530,365.17 | |||
| Total | 1,530,365.17 | 1,530,365.17 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
VII. Changes of consolidation rage
1. Enterprise combined are not under the same control: N/A
2. Enterprise combined under the same control: N/A
3. Reversed takeover: N/A
4. Disposal of subsidiary: N/A
5. Subsidiary liquidated : N/A
6. Establishment of a new subsidiary
| Company name | Reason for the new inclusion in consolidation | Shareholding ratio | Net assets at the end of the period | Net profit for the current period |
| Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd | Investment establishment | 100% | 95,756,077.38 | -4,243,922.62 |
VIII. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
| Subsidiary | Registered capital(RMB0'000) | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | ||||||
| Zhongke Meiling Cryogenic Technology Co., Ltd 1) | 9,673.09 | Hefei | Hefei | Manufacturing and sales | 47.4512 | Investment establishment | |
| Sichuan Hongmei Intelligent Technology Co., Ltd. 2) | 500.00 | Mianyang | Mianyang | Software development | 100 | Investment establishment | |
| Mianyang Meiling Refrigeration Co., Ltd. 3) | 10,000.00 | Mianyang | Mianyang | Manufacturing and sales | 95 | 5 | Investment establishment |
| Jiangxi Meiling Electric Appliance Co., Ltd 4) | 5,000.00 | Jingdezhen | Jingdezhen | Manufacturing and sales | 98.75 | 1.25 | Investment establishment |
| Hefei Meiling Wulian Technology Co., Ltd 5) | 1,000.00 | Hefei | Hefei | Software development | 100 | Investment establishment | |
| Hefei Meiling Nonferrous Metal Products Co., Ltd. 6) | 2,428.68 | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Changhong Meiling Ridian Technology Co., Ltd 7) | 8,300.00 | Zhongshan | Zhongshan | Manufacturing and sales | 99.0361 | Enterprise combined under the same control | |
| CHANGHONG MEILING ELECTRIC INDONESIA,PT 8） | 4,027.20 | Jakapta | Jakapta | Sales | 100 | Investment establishment | |
| ChanghongRubaTradingCom | 8,308.98 | Pakistan | Pakistan | Sales | 60 | Investment establishm | |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Subsidiary | Registered capital(RMB0'000) | Main office place | Registration place | Business nature | Shareholding ratio（%) | Acquire by | |
| Directly | Indirectly | ||||||
| pany（Private）Limited 9) | ent | ||||||
| Sichuan Changhong Air-conditioner Co., Ltd 10) | 85,000.00 | Mianyang | Mianyang | Manufacturing and sales | 100 | Enterprise combined under the same control | |
| Zhongshan Changhong Electric Co., Ltd 11) | 33,400.00 | Zhongshan | Zhongshan | Manufacturing and sales | 90 | 10 | Enterprise combined under the same control |
| Hefei Meiling Group Holdings Limited 12) | 8,000.00 | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Meiling Equator Household Appliance (Hefei) Co., Ltd. 13) | 2,479.32 | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Hefei Equator Appliance Co., Ltd 14) | 1,200.00 | Hefei | Hefei | Manufacturing and sales | 100 | Enterprise combined not under the same control | |
| Ground Energy Heat Pump Tech. Co., Ltd. 15) | 5,000.00 | Mianyang | Mianyang | Manufacturing and sales | 85 | Investment establishment | |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. 16) | 4,500.00 | Zhongshan | Zhongshan | Manufacturing and sales | 85 | Investment establishment | |
| Guangzhou Changhong Trading Co., Ltd. 17) | 100.00 | Guangzhou | Guangzhou | Sales | 100 | Investment establishment | |
| Hebei Hongmao Daily Appliance Technology Co., Ltd. 18) | 500.00 | Handan | Handan | Manufacturing and sales | 99.0361 | Investment establishment | |
| Anhui Tuoxing Technology Co., Ltd. 19) | 1,000.00 | Hefei | Hefei | Technology Development | 47.4512 | Investment establishment | |
| CH-Meiling.International (Philippines) Inc.20） | 688.91 | Philippines | Philippines | Sales | 100 | Investment establishment | |
| Anhui Tuoxing Technology Co., Ltd. 21) | 5,000.00 | Hefei | Hefei | Sales | 70 | Investment establishment | |
| Anhui Ling'an Medical Equipment Co., Ltd 22) | 5,000.00 | Lu'an | Lu'an | Manufacturing and sales | 47.4512 | Investment establishment | |
| Sichuan Changhong Intelligence Air conditioning Technology Co., Ltd. 23) | 10,000.00 | Mianyang | Mianyang | Sales | 100 | Investment establishment | |
Note：
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
1) Zhongke Meiling Cryogenic Technology Co., Ltd. (hereinafter referred to as Zhongke Meiling), thepredecessor of which was Zhongke Meiling Cryogenic Technology Limited Liability Company, wasestablished on 29 October 2002 by joint contribution from the Company and Technical Institute of Physicsand Chemistry, CAS (“TIPC”), with registered capital of 60 million yuan upon the establishment, amongwhich, the Company made capital contribution of 42 million yuan (including the assets in specie at theconsideration of35,573,719.70 yuan as evaluated by Beijing Zhongzheng Appraisal Co., Ltd. with issuanceof the Appraisal Report (ZZPBZ(2002)No.029) and cash contribution of 6,426,280.30 yuan) accountingfor 70% of the aforesaid registered capital, and TIPC made capital contribution of 18 million yuan withintangible assets of such value (namely the single compressor mixture industrial low temperaturerefrigeration technology) as evaluated by Jingzhongzi Assets Appraisal Co., Ltd. with issuance of theAppraisal 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 AssetsVerification Report (HZYZ (2002) No. B157) dated 16 October 2002.In October 2014, according to the relevant provision under the Management Rules on Application of StateOwned Assets by Central Business Organs, TIPC transferred the 30% equity interests held by it in ZhongkeMeiling Cryogenic Technology Company Limited to its wholly-owned subsidiary Zhongke Xianxing(Beijing) Assets Management Co., Ltd (hereinafter referred to as Zhongke Xianxing) which would performmanagement over the operating assets of TIPC. Upon consideration and approval at the 37
th
session of the
thBOD 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 CryogenicTechnology Company Limited, pursuant to which, they decided to change the firm type of ZhongkeMeiling Cryogenic Technology Company Limited to a joint stock company. Based on the net assets of 96,431,978.25 yuan as audited by Xinyong Zhonghe CPA as of 30 June 2015, an aggregate of 65,000,000shares have been converted at the proportion of 1:0.67, which are to be held by the original shareholdersaccording to their respective entitlement. In case that the net assets exceed registered capital, the balanceshall be recorded in capital reserve. On 28 August 2015, Xinyong Zhonghe CPA reviewed the registeredcapital 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 11September 2015.On November 25, 2016, the first Extraordinary Shareholders' General Meeting of Zhongke MeilingCryogenic Technology Co., Ltd. in 2016 considered and approved the Proposal on the Issuance Plan of theCompany; Zhongke Meiling Company issued 3,150,000 shares to specific investors by the non-publicoffering 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 generalpartnership). After the completion of the issuance, the share capital of Zhongke Meiling Companyincreased to 68,150,000 shares and the Company's shareholding ratio was 66.76%.On 15 September 2017, the Proposal of the First Stock Placement of Zhongke Meiling CryogenicTechnology Co., Ltd for year of 2017 was deliberated and approved by 4
thsession extraordinary ofshareholders general meeting of 2017. Zhongke Meiling offering 490,300 shares to specific investors byway of privately placement, which has 1.72 yuan per share in amount. The capital increasement has beenverified 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 increasedto 68,640,300 shares and 66.87% held by the Company.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
On September 9, 2019, the 10
th Meeting of the 2
ndBOD and the Fourth Extraordinary Shareholders’Meeting reviewed and approved the Proposal on the First Stock Issuance Plan of Zhongke MeilingCryogenic Technology Co., Ltd. in 2019 (Revised Version), the number of shares to be issued this timedoes not exceed 3,907,900 shares (including 3,907,900 shares), the issue price is not less than 2.16 yuanper share, and the raised funds are expected to not exceed 8,441,064.00 yuan (including 8,441,064.00yuan). After the completion of the additional issue, the company’s share capital increased to 72,548,200shares, which was verified by [No. XYZH/2020CDA30002] “Capital Verification Report” issued by ShineWing Certified Public Accountants (LLP), and the Company’s shareholding ratio was 63.2683%.On September 16, 2022, the Management Committee of China Securities Regulatory Commission issuedthe Reply on Approving the Registration of Zhongke Meiling Cryogenics Co.,Ltd. to Public Offering ofShares to Unspecified Qualified Investors (ZJXK [2022] No. 2182), which approved the registrationapplication of Zhongke Meiling to Public Offering of Shares to Unspecified Qualified Investors. The priceof this issue is RMB 16.00/share, the initial number of shares issued is 24,182,734, and the actual net fundraised is RMB 364,573,394.95. By September 30, 2022, all the above-mentioned raised funds had beenreceived and verified by the Capital Verification Report [XYZH/No. 2022CDAA70693] issued byShineWing Certified Public Accountants (special general partnership). After the issuance, the share capitalof Zhongke Meiling is 96,730,934 shares, and the shareholding ratio of the Company is 47.4512%.
2) Sichuan Hongmei Intelligent Technology Co., Ltd. (hereinafter referred to as Hongmei Intelligent) wasestablished on Jan. 24, 2014. It is a limited company jointly invested by the Company and MianyangMeiling Refrigeration Co., Ltd., being approved by the Industrial and Commerce Bureau of PeichengDistrict, Mianyang City. The company owes registered capital of 5 million yuan, including 4.95 millionyuan 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 capitaloccupied. The above mentioned register capital have been verified by verification report of ChuanjinlaiYanzi No. [2014] B039 issued by Sichuan Jinlai Accounting Firm Co., Ltd. In July 2016, the shares ofHongmei Intelligent, held by the Company has transferred to Sichuan Changhong AC Co., Ltd., aftertransferred, Changhong AC has 99% equity of Hongmei Intelligent, the Company has no shares ofHongmei Intelligent directly. In October 2023, Changhong Air Conditioning and MianyangMeilingtransferred all the shares held by each of them to the Company, and after the transfer, the Company held100% of the equity of HongmeiIntelligent.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling), a limitedliability 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, theCompany invested 45 million yuan, accounting for 90% of the registered capital; Zhongke MeilingCompany invested 5 million yuan, accounting for 10% of the registered capital. The capital receipt wasverified by the verification report [CXKY (2009) No. 008] of Sichuan Xingrui Certified PublicAccountants. 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 yuaninvested by Zhongke Meiling, a 5% of total capital occupied. The paid-in capital has been verified byCapital 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
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
Co., Ltd. 5 percent equity of Mianyang Meiling held by Zhongke Meiling was transferred to JiangxiMeiling Refrigerator. In September 2013, Jiangxi Meiling Refrigeration was combined by Jiangxi MeilingElectric Appliance Co., Ltd., than 5 percent equity was transfer to Jiangxi Meiling Electric Appliance.
4) Jiangxi Meiling Electric Appliance Co., Ltd. (hereinafter referred to as Jiangxi Meiling ElectricAppliance) was a limited liability company jointly established by the Company and Mianyang Meiling on23 May 2011. Register capital of the company totally as 50 million yuan, 49.375 million yuan invested bythe 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 13May 2011 with 10 million yuan from the Company and 0.5 million yuan from Mianyang Meiling. Rest ofthe capital shall be invested fully within 2 years after the joint ventures established according to capitalrequirement. 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 fundedon 28 July 2011, the Company contributed 39.375 million yuan while Mianyang Meiling Companyinvested 125,000 yuan, the contributions have been verified by the capital verification report [Jing XingKuai 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) wasestablished dated 21 January 2019 with registered capital of 10 million yuan, and it is the subsidiary of theCompany with fully-owned establishment. On March 19, 2019 and December 11, 2023, the Companyrespectively paid in 6 million yuan and 4 million yuan, with a cumulative capital contribution of 10 millionyuan, accounting for 100% of its registered capital.
6) Hefei Meiling Nonferrous Metal Products Co., Ltd. (hereinafter referred to as Nonferrous Metal) wasthe 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 registeredcapital was US$ 2.92 million upon establishment, of which, original Meiling Group invested US$ 1.46million (monetary capital), accounting 50% of the registered capital, Hefei Meiling Copper Co., Ltdinvested 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$ 0.876million (monetary capital), accounting 30% of the registered capital. The above mentioned investmentverified 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 ForeignTrade Economic Cooperation Bureau of Hefei City, 30% equity and 20% equity held by Singapore KimShin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to original MeilingGroup Totally. The Company’s register capital came into 24,286,808.00 yuan after transference, and wasnot the joint-venture any more.
7) Changhong Meiling Ridian Technology Co., Ltd. (hereinafter referred to as Ridian Technology) is alimited liability company invested and established by Sichuan Changhong Electric Co., Ltd. (hereinafterreferred to as Sichuan Changhong) and Sichuan Changhong Motor Transport Co., Ltd. (hereinafter referredto as Changhong Motor Transport Company) on May 25, 2016. The registered capital and paid-in capitalare 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
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
yuan, accounting for 20% of the registered capital. The official receipts of registered capital have beenverified by original Sichuan Junhe Accounting Firm [No. JHYZ (2006) 3027]. Ridian Technologyincreased registered capital of 43 million yuan on January 4, 2007, changing from 40 million yuan to 83million 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 naturalperson shareholders invested 1.2 million yuan, at the same time, the shareholders' meeting considered andagreed to transfer the investment of 8 million yuan of Changhong Motor Transport Company to SichuanChanghong Venture Investment Co., Ltd, the structure of the registered capital after changes was thatSichuan Changhong invested 33.8 million yuan, accounting for 40.72%; Guangdong Xiongfeng ElectricCo., 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 shareholdersinvested 1.2 million yuan, accounting for 1.45%. The change of registered capital was verified byZhongshan Promise Accounting Firm [No. ZCHZ (2007)501010].On February 18, 2009, seven natural person shareholders transferred total 0.76% stock rights to HuZhiheng, after the transfer, the registered capital of Changhong Ridian was still 83 million yuan, thestructure 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 KouHuameng to transfer its stock rights of total 250,000 yuan which accounts for 0.301% of the RidianTechnology’s registered capital to Sichuan Changhong Venture Investment Co., Ltd at the cost of 317,802yuan. 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 GuangdongXiongfeng 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 43,977,300 yuan.The other shareholders of the Ridian Technology waived the right of pre-emption. The structure ofregistered 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 950,000 yuan, accounting for 1.14%.On 4 January 2016, Sichuan Changhong and Sichuan Changhong Venture Investment Co., Ltd. transferredtotal 98.855% equity of the Ridian Technology to the Company. After the transfer, the Company directlyholds 98.855% stock rights of Ridian Technology.On 7 April 2020, Ridian Technology convened the shareholders’ meeting, and agreed the Wu Chang yuanto transferred total 0.18% equity of the Ridian Technology to the Company. After the transfer, the Companydirectly holds 99.0361% stock rights of Ridian Technology.
8) CHANGHONG MEILING ELECTRIC INDONESIA, PT.(hereinafter referred to as Indonesia Meiling)is a subsidiary established in Indonesia and jointly invested by Zhongshan Changhong and SichuanChanghong in 2016, the company’s registered capital is 6 million US dollars, of which ZhongshanChanghong subscribed and paid 5.88 million US dollars in cash, accounting for 98% of the registeredcapital, Changhong Air Conditioning subscribed and paid 120,000 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 ZhongshanChanghong in line with the agreement.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
9) Changhong Ruba Trading Company (Private) Limited (hereinafter referred to as Changhong Ruba) wasa joint venture established by Zhongshan Changhong Appliances Company Limited and RUBAGENERAL TRADING FZE Company (“RUBA”) on 5 August 2011 with the approval from GuangdongDevelopment and Reform Commission by issuance of the Approval Relating to Joint Construction of aManufacturing and Selling Platform Project in Pakistan by Zhongshan Changhong Appliances CompanyLimited (YFGWZ(2011)958). The resolution of the second extraordinary shareholders' meeting ofZhongshan Changhong in 2016 passed the "Proposal on the Company's Capital Increase to ChanghongRuba Trading Company (Private) Limited", and agreed that the company and UAE RUBA Companyjointly increase capital to Changhong Ruba Trading Company(Private) Limited which was invested byboth sides in Pakistan at an earlier stage, Zhongshan Changhong invested 3.84 million US dollars in thiscapital increase, and UAE RUBA Company invested 2.56 million US dollars, the shares held by both sidesremained unchanged. After the capital increase, the company’s registered capital became 12.4 million USdollars, of which Zhongshan Changhong Home Appliances Company Limited invested 7.44 million USdollars in cash, shareholding ratio was 60%, UAE RUBA Company invested 4.96 million US dollars incash, and shareholding ratio was 40%.In 2017, the shareholder meeting of Zhongshan Changhong Electric Co., Ltd. passed the "Proposal on the Company's Increased Investment in Pakistan Refrigerator Project", agreeing that Zhongshan Changhong and the UAE RUBA company will jointly increase the capital of ChanghongRuba. , the shares held by both parties remain unchanged. After the capital increase, the registered capital of ChanghongRuba is US$13,004,923, of which Zhongshan Changhong contributed US$7,802,954 in cash, holding 60%of the shares, and RUBA of the United Arab Emirates contributed US$5,201,969 in cash, holding 40% of the shares.10) 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 foundedon November 28, 2008. Its registered capital was 200 million yuan upon establishment, of which, SichuanChanghong invested 298 million yuan ( 210,088,900 yuan invested by monetary capital while 87,911,100yuan invested by real material), equivalent to 198 million yuan shares, accounting for 99% of the registeredcapital; and Changhong Chuangtou invested 3 million yuan, accounting for 1% of the registered capitalwith equivalent of 2 million yuan shares. The registered capital receipt was verified by the verificationreport [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 December2009, the Company obtained 100% equity of Changhong Air-conditioner by consolidated under the samecontrol. In 2017, the Company increased capital of 650 million yuan to Changhong Air Conditioner, aftercapital increased, registered capital of Sichuan Changhong comes to 850 million yuan from 200 millionyuan, shareholding still counted as 100%.
11) Zhongshan Changhong Electric Co., LTD (hereinafter referred to as Zhongshan Changhong), was theoriginal Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up bySichuan Changhong and China Minmetals on May 22, 2001. Its registered capital was RMB 80 millionupon establishment, of which, Sichuan Changhong invested 72 million yuan, including 69.3 million yuanbiding for the estate/non-estate from original Zhongshan Sanrong Air-conditioner Co., Ltd. And its patentuse-right of 2.7 million yuan, accounting for 90% of the registered capital; Chine Minmetals invested 8million yuan in monetary capital accounting 10% of the registered capital. The Company changed its nameoriginally from Guangdong Changhong Electric Co., Ltd in July 2003. In December 2009, the Company
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
obtained 90% equity of Zhongshan Changhong by consolidated under same control. 10% equity held byChina 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 millionyuan. In 2016, according to the overseas development strategy of the Company and the development andoperation needs of the subsidiaries, the Company and the wholly-owned subsidiary Changhong AirConditioning have increased capital of 64 million yuan to Zhongshan Changhong according to the existingshareholding ratio, among which the capital increase of the Company was 57.6 million yuan, and thecapital increase of Changhong Air Conditioning was 6.4 million yuan. After the completion of this capitalincrease, the registered capital Zhongshan Changhong shall increase to184 million yuan, the shareholdingratio 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. InMarch 2020, in accordance with the Company’s overseas development strategy and the operation anddevelopment needs of its subsidiaries, the Company and its wholly-owned subsidiary Changhong AirConditioning increased capital of 150 million yuan to Zhongshan Changhong according to the existingshareholding 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 registeredcapital of Zhongshan Changhong has increased to 334 million yuan. The Company’s and Changhong’sshareholding ratios in Zhongshan Changhong remain unchanged at 90% and 10%, of which the Companyfunded 300.6 million yuan, accounting for 90% of the registered capital, while Changhong AirConditioning funded 33.4 million yuan, accounting for 10% of the registered capital.
12) Hefei Meiling Group Holdings Limited (hereinafter referred to as Meiling Group), was the state-ownedcompany originally approved by People’s Government of Hefei Province and established authorized bySASAC of Hefei City. On July 14, 2008, 100% state-owned equity of Meiling Group has freely transferredto Xingtai Holding by Hefei SASAC. Agreement by the approval of < State-owned property agreementtransfer 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 Companyfrom Xingtai Holding as amount of 113.2 million yuan. The re-registration of industrial and commercialprocedure for Meiling Group after separated partial assets liability has finished on July 28, 2010. The newMeiling 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.
13) Meiling EquatorHousehold Appliance (Hefei) Co., Ltd. (hereinafter referred to as EquatorHouseholdAppliance) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATORINVESTMENTS (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 ofAnhui Province. Its registered capital was US$ 3 million upon establishment, of which, Sino companyinvested US$ 2.25 million in machinery equipment, accounting 75% of the registered capital while foreigncompany 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 investmentverified by the verification report of [WYAYZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd. In July2007, 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
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
register capital came into 24,793,200 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 inJuly 2009.
14) Hefei Equator Appliance Co., Ltd. (hereinafter referred to as Equator Appliance) was jointly set up byoriginal Meiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was 12 million yuan,among which, original Meiling Group invested 8,670,600 yuan in monetary capital, accounting 72.255%in registered capital; Equator Appliance invested 3,329,400 yuan in the assessment value of intangibleassets (land-use right), accounting 27.745% of total registered capital. The investment being verified by[WYAZ (2004) No. 135] from Anhui Yongan CPAs Co., Ltd.
15) Hong Yuan Ground Energy Heat Pump Technology Co., Ltd. (hereinafter referred to as Hong YuanGround Energy) was established on 28 August 2015, it is a limited liability company authorized byAdministration for Industry and Commerce of Peicheng District, Mianyang, Sichuan, contributed bySichuan Changhong Air Conditioner Co., Ltd (hereinafter referred to as Changhong Air Conditioner) andHengyou yuan Technology Development Group Co., Ltd. together. Registered capital amounted as 50million yuan, including 25.5 million yuan contributed by Changhong Air Conditioner in cash, a 51% intotal registered capital; Hengyou yuan Technology Development Group Co., Ltd. invested 24.5 millionyuan in cash, a 49% in registered capital. In September 2023, Hengyouyuan Technology DevelopmentGroup Co., Ltd. transferred its 34% equity of Hongyuan Dineng to Changhong Air Conditioning. After thetransfer, Changhong Air Conditioning held 85% equity of Hongyuan Dineng.
16) Hong Yuan Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd.(hereinafter referred to as Hongyuan Zhongshan) was established and invested on 18 July 2017 with registered capital of 15 million yuan,The Hong Yuan Ground Energy Heat Pump Tech. Co., Ltd contributed 1.5 million yuan with own fundsand takes 100% in the registered capital.In 2018, the shareholders of the Hong yuan Zhongshan decidedto increase capital of 30 million yuan, and contributed by the shareholder Hong Yuan Ground Energy; thusregistered capital of Hong yuan Zhongshan up to 45 million yuan
17)Guangzhou Changhong Trading Co., Ltd. (hereinafter referred to as Changhong Trading) wasestablished 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
18) 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 5million yuan by own fund and takes 100% in registered capital.
19) Anhui Tuoxing Technology Co., Ltd. (hereinafter referred to as Tuoxing Technology) was establishedon 20 May 2019 with registered capital of 10 million yuan and it is the subsidiary of Zhongke Meilingwith fully-owned establishment. On May 21, 2020 and February 21, 2021, Zhongke Meiling investedRMB 5 million, with a total investment of RMB 10 million, accounting for 100% of its registered capital.20) CH-Meiling.International (Philippines) Inc. was established on 13 February 2020 in Philippines withregistered capital of US$ 1,000,000, takes 100% of the equity. As of December 31,2020, the Company hasinvested US$ 1,000,000,
21) Hefei Changhong Meiling Life Appliances Co., Ltd（hereinafter referred to as Changmei LifeAppliances) was established on 24 December 2020, jointly established by the Company and NingboHongling Enterprise Management Partnership (Limited Partnership). the Company contributed 35 million
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
yuan, representing 70% of the equity while 15 million yuan invested by Ningbo Hongling EnterpriseManagement Partnership (Limited Partnership), a 30% takes in the equity. The paid-in capital contributionfrom the Company and Ningbo Hongling Enterprise Management Partnership (Limited Partnership) hasbeen completed on January 21, 2021 and on January 18, 2021 respectively.
22) Anhui Ling’an Medical Equipment Co., Ltd. (hereinafter referred to as Ling’an Medical) wasestablished on 4 September 2021, which is a wholly-owned subsidiary of Zhongke Meiling, and registeredcapital of 10 million yuan. On June 29, 2021, Zhongke Meiling actually contributed 10 million yuan,accounting for 100% of the registered capital. In 2022, the Board of Directors of Zhongke Meiling decidedto increase the registered capital by RMB 40 million. On December 30, 2022, the paid-in capital wascompleted, and the registered capital of Ling'an Medical increased to RMB 50 million.
23)Sichuan Changhong Intelligent Air Conditioning Technology Co., Ltd. (hereinafter referred to asIntelligent Air Conditioning) was established on March 26, 2024, and is a wholly-owned subsidiary ofChanghong Air Conditioning approved by the Administration for Industry and Commerce of the EconomicDevelopment Zone of Mianyang City, Sichuan Province. The registered capital ofIntelligent AirConditioning is 100 million yuan, and ChanghongAir Conditioning subscribes 100 million yuan in cash,accounting for 100% of its registered capital.
(2) Major non-wholly-owned subsidiary
| Subsidiary | Shareholding ratio of minority | Gains/losses attributable to minority in Current Period | Dividend distributed to minority announced in Current Period | Balance of minority’s interest at period-end |
| Zhongke Meiling | 52.5488% | 5,479,149.04 | 5,083,093.40 | 316,890,194.97 |
| Ground Energy | 15% | -698,820.06 | 9363421.96 | |
| Ridian Technology | 0.9639% | 6,533.89 | 1,371,877.47 | |
| Changmei Life Appliances | 30% | 4,132,440.52 | 46,070,495.34 |
(3) Financial information for major non-wholly-owned subsidiary
| Subsidiary | Ending balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 600,009,169.66 | 137,688,171.59 | 737,697,341.25 | 123,327,726.79 | 11,329,651.94 | 134,657,378.73 |
| Ground Energy | 635,691,815.29 | 123359689.6 | 759,051,504.91 | 615,327,307.17 | 81,301,384.64 | 696,628,691.81 |
| Ridian Technology | 228,124,402.47 | 38,562,930.44 | 266,687,332.91 | 124,093,006.53 | 262,038.83 | 124,355,045.36 |
| Changmei Life Appliances | 680,049,639.98 | 1,288,189.39 | 681,337,829.37 | 526,712,221.39 | 1,057,290.18 | 527,769,511.57 |
（Continued）
| Subsidiary | Beginning balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Zhongke Meiling | 590,872,333.93 | 143,608,411.32 | 734,480,745.25 | 120,874,302.44 | 12,086,470.45 | 132,960,772.89 |
| Ground Energy | 256,060,078.76 | 27,234,236.22 | 283,294,314.98 | 216,616,587.41 | 2,400.97 | 216,618,988.38 |
| Ridian Technology | 226,657,040.82 | 40,283,953.89 | 266,940,994.71 | 125,655,866.42 | 292,501.04 | 125,948,367.46 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Subsidiary | Beginning balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Changmei Life Appliances | 621,873,116.90 | 613,240.68 | 622,486,357.58 | 481,523,383.11 | 1,169,458.41 | 482,692,841.52 |
（Continued）
| Subsidiary | Current Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 147,052,294.25 | 10,426,784.69 | 10,426,784.69 | 2,863,688.61 |
| Ground Energy | 861,624,361.40 | -4,658,800.38 | -4,658,800.38 | -74,764,271.86 |
| Ridian Technology | 68,792,446.53 | 677,890.37 | 677,890.37 | 6,073,100.72 |
| Changmei Life Appliances | 680,109,991.85 | 13,774,801.74 | 13,774,801.74 | 80,971,196.73 |
（Continued）
| Subsidiary | Last Period | |||
| Operation income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongke Meiling | 144,766,155.52 | 8,290,186.98 | 8,290,186.98 | -13,661,569.66 |
| Ground Energy | 276,522,437.81 | -1,914,885.50 | -1,914,885.50 | -87,545,869.73 |
| Ridian Technology | 105,403,861.00 | -1,894,959.92 | -1,894,959.92 | 10,295,047.76 |
| Changmei Life Appliances | 775,737,017.98 | 23,764,641.11 | 23,764,641.11 | 50,850,277.81 |
(4) Major limitation on using enterprise group’s assets and liquidate debts of enterprise group: N/A
(5) Offering financial supporting or other supports for structured entity that included in consolidationstatement scope: N/A
2. Changes of owner’ equity shares in subsidiary and its impacts:N/A
3. Equity in joint venture or associate enterprise
(1) Major joint venture or associate enterprise
| Joint venture or associate enterprise | Main office place | Register place | Business nature | Shareholding ratio（%) | Accounting treatment for investment of joint venture or associate enterprise | |
| Directly | Indirectly | |||||
| Associated companies： | ||||||
| Sichuan Zhiyijia Network Technology Co., Ltd. | Mianyang | Mianyang | Sales | 50.00 | Equity | |
(2) Financial information for major Joint venture: N/A
(3) Financial information for associate enterprise
| Item | Sichuan Zhiyijia Network Technology Co., Ltd. | |
| Ending balance/Current Year | Beginning balance /Last Year | |
| Current assets | 2,362,423,884.13 | 2,466,521,759.37 |
| Including: cash and cash equivalent | 349,094,285.64 | 364,453,302.32 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Sichuan Zhiyijia Network Technology Co., Ltd. | |
| Ending balance/Current Year | Beginning balance /Last Year | |
| Non-current assets | 14,610,854.09 | 18,519,147.09 |
| Total assets | 2,377,034,738.22 | 2,485,040,906.46 |
| Current liability | 2,235,601,330.93 | 2,343,467,271.81 |
| Non-current liability | 3,718,006.48 | 5,509,063.82 |
| Total liabilities | 2,239,319,337.41 | 2,348,976,335.63 |
| Total of net asset | 137,715,400.81 | 136,064,570.83 |
| Minority's interest | ||
| Equity attributable to shareholder of parent company | 137,715,400.81 | 136,064,570.83 |
| Share of net assets measured by shareholding | 68,857,700.41 | 68,032,285.42 |
| Adjustment | ||
| --Goodwill | 821,877.28 | 821,877.28 |
| Unrealized profit of the internal downstream transactions | ||
| Unrealized profit of the internal upstream transactions | ||
| Other | ||
| Book value of the equity investment for associate enterprise | 69,679,577.69 | 68,854,162.70 |
| Fair value of equity investment for the affiliates with consideration publicly | ||
| Operation income | 259,097,941.96 | 5,238,453,286.91 |
| Financial expenses | -14,120,619.54 | -19,188,756.89 |
| Income tax expenses | 2,309,955.97 | 3,112,952.18 |
| Net profit | 11,846,311.80 | 23,268,872.28 |
| Other | ||
| Other comprehensive income | ||
| Total comprehensive income | 11,846,311.80 | 23,268,872.28 |
| Dividend received from associate enterprise in Current Year | 5,097,740.91 | 1,629,022.64 |
(4) Financial summary for non-important Joint venture and associate enterprise
| Item | Ending balance/Current Year | Beginning balance /Last Year |
| Associated companies： | ||
| Total book value of investment | 43,020,010.11 | 43,891,649.05 |
| Total amount measured by shareholding ratio | ||
| --Net profit | -656,570.61 | -33,658,934.21 |
| --Other comprehensive income | -1,267,004.52 | 7,582,766.35 |
| -- Total comprehensive income | -1,923,575.13 | -26,076,167.86 |
(5) Major limitation on capital transfer ability to the Company from joint venture or affiliates: N/A
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(6) Excess loss occurred in joint venture or affiliates
Hefei Meiling Solar Energy Technology Co., Ltd and Changhong Ruba Electric Company(Private)Ltdhave losses above the quota.
(7) Unconfirmed commitment with joint venture investment concerned: N/A
(8) Intangible liability with joint venture or affiliates investment concerned: N/A
4. Major conduct joint operation: N/A
5. Structured body excluding in consolidate financial statement: N/A
IX.Government subsidies
1.There is no government subsidies recognized by amount receivable at the end of the year
2.Liabilities involving government subsidies
| Accounting subject | Beginning balance | New subsidy amount this year | Amount included in non-operating income this year | Amount transferred to other income this year | Other changes this year | Ending balance | Related to assets/income |
| Deferred income | 132,977,494.33 | 2,034,900.00 | 15,529,786.63 | 119,482,607.70 | Asset-related | ||
| Deferred income | 300,000.00 | 300,000.00 | Income-related |
3.Government subsidies included in current profits and losses
| Accounting subject | Amount incurred this period | Amount incurred last period |
| Other income | 14,244,752.48 | 16,631,531.99 |
| Deferred income | 15,829,786.63 | 15,696,724.67 |
X. Relevant risks related with financial instrumentThe major financial instruments of the Company include borrowings, account receivables, accountpayable, Trading financial assets, Trading financial liability, the details of which are set out in NoteVI.Risks related to these financial instruments include exchange risks and interest rate risks. Themanagement of the Company controls and monitors the risk exposures to ensure the above risks areunder control.
1. Various risk management objectives and policies
The Company's goal in risk management is to strike a proper balance between risks and benefits, reducethe negative impact of risks on the Company's operating performance to the lowest level, and maximizethe interests of shareholders and other equity investors. Based on this risk management goal, the basicstrategy of the Company's risk management is to identify and analyze all kinds of risks faced by the
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
Company, establish an appropriate risk tolerance bottom line and conduct risk management, and timelyand reliably supervise all kinds of risks to control the risks within a limited range.
(1) Market risk
1) Exchange rate risk
The Company pays close attention to the impact of exchange rate changes on the Company. TheCompany attaches great importance to the study of exchange rate risk management policies andstrategies. In order to avoid the exchange rate risk of foreign currency payment and foreign currencycollection and settlement income, the Company has signed several forward foreign exchange contractswith banks. The fair value of forward foreign exchange contracts recognized as derivative financialinstruments on June 30, 2024 is RMB -38,152,637.91 Changes in the fair value of derivative financialinstruments have been included in the profit and loss, and the relevant contents of "V. 57 Income fromchanges in fair value" in this note. In the meantime, with the constant change in the share of theinternational market, if there are risks beyond the control of the Company, such as unilateral largechanges in the RMB exchange rate, the Company will reduce the risks by adjusting the sales orpurchasing strategies.
2) Interest rate risk
The Company's interest rate risk arises from bank loans and interest-bearing debts. Financial liabilitieswith floating interest rate expose the Company to cash flow interest rate risk, while financial liabilitieswith fixed interest rate expose the Company to fair value interest rate risk. The Company decides therelative proportion of fixed interest rate and floating interest rate contracts according to the marketenvironment at that time. On June 30, 2024, the Company's interest-bearing debts were mainly the fixed-rate loan contracts denominated in RMB, with a total amount of RMB1,145,328,642.91; and the RMBfloating-rate loan contracts, with a total amount of RMB134,213,427.90 The Company's risk of changesin the fair value of financial instruments due to changes in interest rates is mainly related to fixed-ratebank loans. The Company's risk of cash flow changes of financial instruments caused by interest ratechanges is mainly related to floating interest rate bank loans. The Company pays close attention to theimpact of this part of interest rate changes on the Company and attaches importance to the study ofinterest rate risk management policies and strategies.
(2) Credit risk
On June 30, 2024, the biggest credit risk exposure that may cause the financial loss of the Companymainly comes from the loss of the Company's financial assets caused by the failure of the other party tothe contract and the financial guarantee undertaken by the Company, including: the book amount of thefinancial assets recognized in the consolidated balance sheet; For financial instruments measured at fairvalue, the book value reflects their risk exposure, but not the maximum risk exposure, and its maximumrisk exposure will change with the change of fair value in the future. In order to reduce the credit risk,the Company set up a special department to determine the credit line, conduct credit approval, andimplement other monitoring procedures to ensure that necessary measures are taken to recover overduecreditor's rights. Meanwhile, the Company tries to reduce the impact of credit default of creditor's rightsby purchasing credit insurance. In addition, the Company reviews the recovery of each single receivableon each balance sheet date to ensure that sufficient bad debt provision is made for unrecoverable funds.Therefore, the management of the Company believes that the credit risk assumed by the Company hasbeen greatly reduced. The Company's working capital is deposited in the finance company, so the credit
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
risk of working capital is low. The Company has adopted necessary policies to ensure that all salescustomers have good credit records. The total amount of the top five accounts receivable isRMB1,047,848,385.72, accounting for 41.90% of the accounts receivable at the end of the year, whichis dependent on major customers. Except for the top five accounts receivable, the Company has no othermajor credit risks.
(3) Liquidity risk
Liquidity risk is the risk that the Company cannot fulfill its financial obligations on the due date. TheCompany's method of managing liquidity risk is to ensure that there is enough financial liquidity tofulfill the due debts through capital plan management, without causing unacceptable losses or damagingthe reputation of the company. According to the requirements of the capital plan cycle, the Companymakes a capital plan in advance to ensure that there is sufficient capital when the debt is due. Themanagement of the Company monitors the use of bank loans and ensures compliance with the loanagreement. In the meantime, it conducts financing negotiations with financial institutions to maintain acertain credit line and reduce liquidity risk.
2.Hedging
(1)The Company carries out hedging business and risk management
The Company mainly uses forward foreign exchange contracts to hedge the risk of exchange ratefluctuations. The Company designates the purchased forward foreign exchange contracts as hedginginstruments, treats them in accordance with the hedge accounting method, and evaluates the hedgeditems of unconfirmed asset liability itemssuch as unrecognized fixed commitments at the balance sheetdate. The Company uses the ratio analysis method to evaluate the effectiveness of the hedge, andconsiders that it is highly effective, and the amount of hedge invalidity recognized in the current periodis not material.
| Item | Corresponding risk management strategies and objectives | Qualitative and quantitative information on hedged risk | The economic relationship between the hedged item and the related hedging instrument | Expected effective achievement of risk management objectives | The impact of the corresponding hedging activity on the risk exposure |
| Forward foreign exchange contracts | A foreign exchange risk prevention strategy with hedging as the core and risk prevention as the purpose | The extent to which changes in the fair value of the hedging instrument can offset the change in the fair value or cash flows of the hedged item caused by the hedged risk | Forward foreign exchange contracts are hedging instruments that are locked based on the foreign exchange exposure generated by the business: foreign exchange exposures include book assets and irrevocable orders. Irrevocable orders, which are defined commitments that have not yet been confirmed; Not yet recognized, which means that it has not been recognized in the balance sheet; A firm commitment | Foreign exchange hedging refers to the risk management activity of designating a financial instrument as a hedging instrument in order to manage the risk exposure arising from foreign exchange risk, so that the fair value or cash flow of the hedging instrument changes in anticipation of offsetting all or part of the change in the fair value or cash flow of the | According to the hedge accounting standards, in order to ensure the effectiveness of hedging, the premise of exposure hedging is that the currency is the same, the direction is opposite, and the expected date of receipt and payment of foreign exchange is similar |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| refers to the exchange of a specific amount of resources at an agreed price and the signing of a legally binding agreement at a specific date or period in the future | hedged item |
(2) The Company conducts qualified hedging business and applies hedge accounting
| Item | Book value related to hedged items and hedging instruments | Hedging adjustment of accumulated fair value of hedged items included in the book value of hedged items recognized | Hedging effectiveness and source of part with invalid hedging | Impact of hedging accounting on the Company's financial statements |
| Fair value hedging | ||||
| Hedging instruments- Trading financial assets | 8,754,120.65 | Financial expenses - Exchange losses; Investment income; Change of income fair value | -48,267,891.22 | |
| Hedging instruments- Trading financial liabilities | 46,906,758.56 | |||
| hedged items-assets | 911,457,632.30 | |||
| hedged items-liabilities | 9,583,813.66 | |||
3.Transfer of financial assets
(1)Classification of transfer modes
| Transfer mode | Nature of transferred financial assets | Amount of transferred financial assets | Derecognized or not | Judgment basis of derecognition |
| Notes endorsement/Notes discount | Receivable financing | 1,004,594,022.03 | Derecognized | Almost all its risks and rewards have been transferred |
| Factoring | Accounts receivable | 4,278,022,889.80 | Derecognized | Almost all its risks and rewards have been transferred |
| Total | 5,282,616,911.83 |
(2)Financial assets that are derecognized due to transfer
| Item | Ways of financial assets transfer | Amount of financial assets derecognized | Gains or losses related to derecognition |
| Receivable financing | Notes endorsement/Notes discount | 1,004,594,022.03 | -3,114,432.51 |
| Accounts receivable | Factoring | 4,278,022,889.80 | -24,604,289.53 |
| Total | — | 5,282,616,911.83 | -27,718,722.04 |
(3) Financial assets that continue to be involved in asset transfer: N/A
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
XI. Fair value disclosure
1. Asset and liability measured by fair value at end of Current Period and fair value measurement level
| Items | Fair value at period-end | |||
| 1st level | 2nd level | 3rd level | Total | |
| I. Continuous fair value measurement | — | — | — | — |
| (i) Trading financial assets | 8,754,120.65 | 1,082,265,872.48 | 1,091,019,993.13 | |
| 1.Financial assets measured at fair value and whose changes are included in current gains/losses | 8,754,120.65 | 1,082,265,872.48 | 1,091,019,993.13 | |
| Including: Derivative financial assets | 8,754,120.65 | 8,754,120.65 | ||
| Principal and interest of financial products | 1,082,265,872.48 | 1,082,265,872.48 | ||
| (ii) Other non-current financial assets | 105,194,079.19 | 568,945,436.29 | 674,139,515.48 | |
| (iii) Receivables financing | 1,600,373,357.87 | 1,600,373,357.87 | ||
| Total assets continuously measured at fair value | 8,754,120.65 | 1,187,459,951.67 | 2,169,318,794.16 | 3,365,532,866.48 |
| (iv) Trading financial liability | 46,906,758.56 | 46,906,758.56 | ||
| 1. Financial liabilities measured by fair value and with variation reckoned into current gains/losses | 46,906,758.56 | 46,906,758.56 | ||
| Including: Derivative financial liability | 46,906,758.56 | 46,906,758.56 | ||
| Total liabilities continuously measured at fair value | 46,906,758.56 | 46,906,758.56 | ||
2. The basis for determining the market price of continuous and non-continuous first-level fair valuemeasurement itemsThe company's fair value measurement items are futures contracts and foreign exchange options. Themarket price of futures contracts is determined based on the closing price of the futures contract at the endof the period; the market price of foreign exchange options is determined based on the quotation of contractproducts of the foreign exchange options at the end of the period.
3. Qualitative and quantitative information on the valuation techniques used and important parameters forcontinuous and non-continuous second-level fair value measurement itemsThe fair value measurement items are long-term investments in the fund company. For long-terminvestments in fund companies, the assessed book value can represent the best estimate of fair value withinthe scope.
4. Qualitative and quantitative information on the valuation techniques used and important parameters forcontinuous and non-continuous third-level fair value measurement itemsThe items with fair value measurement refer 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 arange of valuation models, the assumptions used are not supported by observable market prices or interestrates. We believes that the fair value and their changes estimated by valuation techniques are reasonable andare the most appropriate values at the balance sheet date.
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
XII. Related parties and related transaction(i) Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Sichuan Changhong Electronics Holding Group is the controlling shareholder of Sichuan ChanghongElectric Co., Ltd, and the SASAC Mianyang office holds 90% equity interests of Sichuan ChanghongElectronic Holding Group, which means that SASAC Mianyang office is the ultimate controller of theCompany.
(2) Register capital and change thereof of controlling shareholder
| Controlling shareholder | Beginning balance | Increase this period | Decrease this period | Ending balance |
| Sichuan Changhong Electric Co., Ltd. | 4,616,244,222.00 | 4,616,244,222.00 |
(3) Shares held by the controlling shareholder and its changes on equity
| Controlling shareholder | Amount of shares held | Shareholding ratio | ||
| Ending balance | Beginning balance | Ratio at period-end | Ratio at period-beginning | |
| Sichuan Changhong Electric Co., Ltd. | 281,832,434.00 | 281,832,434.00 | 27.36% | 27.36% |
2. Subsidiary
Found more in Note “VIII. 1 (1) Enterprise group composition”
3. Joint venture and associated enterprise
Other Joint venture and associated enterprise that have related transactions occurred with theCompany in Current Period or occurred in last period, and with balance results:
| Joint venture and associated enterprise | Relationship with the company |
| Changhong Ruba Electric Company (Private) Ltd. | Associated enterprise of subsidiary Zhongshan Changhong |
| Chengdu Guigu Environmental Tech. Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Sichuan Tianyou Guigu Technology Co., Ltd | Associated enterprise of subsidiary Changhong Air-conditioner |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Associated enterprise of the Company, has the same controlling shareholder and actual control of the Company |
4. Other related party
| Other related party | Relationship with the company |
| Mianyang Haili Appliance Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Hongran Green Energy Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Associated enterprise of controlling shareholder |
| Sichuan Baiku Technology Co., Ltd | Associated enterprise of other enterprise that have the same |
Controlling shareholder and ultimatecontroller
| Controlling shareholder and ultimate controller | Registration place | Business nature | Registered capital | Share-holding ratio in the Company | Voting rights ratio in the Company |
| Sichuan Changhong Electric Co., Ltd. | Mianyang | Manufacture and sales | 4,616,244,222.00 | 27.36% | 27.36% |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Other related party | Relationship with the company |
| controlling shareholder | |
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Associated enterprise of other enterprise that have the same controlling shareholder |
| Mianyang High-tech Zone Hongfu Technology Co., Ltd. | An enterprise in which the supervisor of the controlling shareholder acts as its legel representative |
| 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 controller |
| CHANGHONG.ELECTRIC.(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 |
| 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 |
| Guangyuan Changhong Electronic Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Hefei Changhong Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| 081 Electronic Group Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Hongshang Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Control by same controlling shareholder and ultimate 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 Ansifei Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Aoiku Technology Co., Ltd | Associated enterprise of other enterprise that have the same controlling shareholder |
| 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 Huafeng Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Jiahong Industry Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Kuaiyidian Electric Appliance Service Chain Co., Ltd | Control by same controlling shareholder and ultimate controller |
| Sichuan Qiruik Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Qisai Microelectronics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Package Printing Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Power Source Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Other related party | Relationship with the company |
| Sichuan Changhong Electronic Products Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Gerun Environmental Protection Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong International Hotel Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Group Finance Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jijia Fine Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jiahua Information Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Jichuang Lithium Technology Co., LTD | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Moulding Tech. 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., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Xinwang Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Changhong Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yuanxin Financial Lease Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Yibin Hongxing Electric Co., Ltd. | Control by same controlling shareholder and ultimate controller |
| Sichuan Qineng Zhongzheng TechnologyCo., ltd. | Control by same controlling shareholder and ultimate controller |
| Changhua Huayi Compressor Co., Ltd. | Control by same controlling shareholder and ultimate controller |
(ii) Related transactions
1. Purchasing commodity
| Related party | Content | Current Period | Approved tradingquota （（In 10 thousand yuan) | Whether the trading inmit is exceeded | Last period |
| （In 10 thousand yuan) | （In 10 thousand yuan | （In 10 thousand yuan) | |||
| Sichuan Changhong Electric HoldingGroup Co., Ltd. | Purchasing commodity | 116,368.50 | 280,000.00 | N | |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Purchasing commodity | 59,341.49 | 130,000.00 | N | 47,227.00 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Related party | Content | Current Period | Approved tradingquota （（In 10 thousand yuan) | Whether the trading inmit is exceeded | Last period |
| （In 10 thousand yuan) | （In 10 thousand yuan | （In 10 thousand yuan) | |||
| Sichuan Changhong Jijia Fine Co., Ltd. | Purchasing commodity | 40,976.08 | 65,000.00 | N | 29,862.39 |
| Sichuan Changxin Refrigeration Parts Co., Ltd. | Purchasing commodity | 40,618.06 | 40,002.29 | ||
| Mianyang Highly Electric Co., Ltd. | Purchasing commodity | 36,505.44 | 25,317.48 | ||
| Changhong Huayi Compressor Co., Ltd. | Purchasing commodity | 29,660.37 | 80,000.00 | N | 25,980.62 |
| Sichuan Changhong Package Printing Co., Ltd. | Purchasing commodity | 8,727.99 | 20,000.00 | N | 6,932.79 |
| Sichuan Aichuang Science & Technology Co., Ltd. | Purchasing commodity | 7,397.51 | 30,000.00 | N | 7,075.57 |
| Sichuan Changhong Electronic Co., Ltd. | Purchasing commodity | 6,217.87 | 23,000.00 | N | 21,647.30 |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Purchasing commodity | 1,976.06 | 4,000.00 | N | 1,776.19 |
| Sichuan Changhong Electronic Products Co., Ltd. | Purchasing commodity | 1,485.08 | 5,000.00 | N | 2,034.05 |
| Sichuan Aoku Technology Co., Ltd. | Purchasing commodity | 1,458.92 | 8,000.00 | N | 1,155.21 |
| Sichuan Ailink Technology Co., Ltd. | Purchasing commodity | 777.61 | 3,000.00 | N | 868.04 |
| Guangdong Changhong Electronics Co., Ltd. | Purchasing commodity | 542.44 | 6,000.00 | N | 400.10 |
| Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Purchasing commodity | 454.57 | 6,000.00 | N | 559.39 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Purchasing commodity | 432.77 | 16,000.00 | N | 1,538.32 |
| Hefei Changhong Industrial Co., Ltd. | Purchasing commodity | 403.79 | 6,000.00 | N | 385.14 |
| ChanghongRuba Electric Company (Private) Ltd. | Purchasing commodity | 201.38 | 1,110.98 | ||
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchasing commodity | 160.02 | 6,000.00 | N | 461.50 |
| Sichuan Hongran Green Energy Co., Ltd. | Purchasing commodity | 70.68 | 90.89 | ||
| Sichuan Changhong New Energy Technology Co., Ltd. | Purchasing commodity | 41.58 | 5,000.00 | N | 2.40 |
| Sichuan Hongwei Technology Co., Ltd. | Purchasing commodity | 1.42 | 6,000.00 | N | 4.06 |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchasing commodity | 0.49 | 5,000.00 | N | 0.05 |
| 081 Electronic Group Co., Ltd. | Purchasing commodity | 5.30 | |||
| Sichuan Hongyu Metal Manufacturing Co., Ltd. | Purchasing commodity | 1.47 | |||
| Sichuan Jiahong Industrial Co., Ltd. | Purchasing commodity | 0.33 | |||
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Purchasing commodity | 0.18 | |||
| Sichuan Changhong Source Co., Ltd. | Purchasing commodity | 0.18 | |||
| Total | 353,820.12 | 704,000.00 | 214,439.22 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
2. Accept the services
| Related party | Content | Current Period | Approved trading quota | Whether the trading limit is exceeded | Last Period |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Accept the services | 456,703,052.23 | 750,000,000.00 | N | 368,497,783.26 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Accept the services | 196,911,290.80 | 510,000,000.00 | N | 180,747,221.09 |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Accept the services | 22,376,331.56 | 50,000,000.00 | N | 19,178,221.81 |
| Sichuan Qiruik Technology Co., Ltd. | Accept the services | 6,919,202.18 | 50,000,000.00 | N | 5,854,992.14 |
| Sichuan Jiahong Industry Co., Ltd. | Accept the services | 3,449,141.57 | 50,000,000.00 | N | 4,181,446.86 |
| Sichuan Changxin Refirgeration Part Co., Ltd. | Accept the services | 2,101,818.01 | 1,443,843.02 | ||
| Sichuan Changhong Electric Co., Ltd. | Accept the services | 1,892,321.90 | 50,000,000.00 | N | 2,012,125.83 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Accept the services | 1,253,524.26 | 50,000,000.00 | N | 1,585,419.16 |
| Sichuan Hongxin Software Co., Ltd. | Accept the services | 1,147,485.86 | 50,000,000.00 | N | 763,205.18 |
| Sichuan Changhong International Hotel Co., Ltd. | Accept the services | 883,842.53 | 50,000,000.00 | N | 81,164.57 |
| Mianyang High-tech Zone Hongfu Technology Co., Ltd. | Accept the services | 682,378.32 | 1,200,000.00 | N | 454,323.56 |
| Sichuang Changhong Electric Holdings Group Co., Ltd. | Accept the services | 667,435.36 | 2,800,000,000.00 | N | 455,179.68 |
| Sichuan Changhong Precision Electronic Technology Co., Ltd. | Accept the services | 178,134.60 | 50,000,000.00 | N | |
| Guangyuan Changhong Electric Co., Ltd. | Accept the services | 169,707.88 | 50,000,000.00 | N | 361,166.90 |
| Sichuan Zhiyijia Network Technology Co., Ltd | Accept the services | 77,108.12 | 50,000,000.00 | N | 69,357.35 |
| Sichuan Changhong Property Service Co., Ltd. | Accept the services | 58,338.54 | 50,000,000.00 | N | 73,423.50 |
| Sichuan Changhong Gerun Environmental Technology Co., Ltd. | Accept the services | 54,051.42 | 50,000,000.00 | N | 202,167.22 |
| Sichuan Changhong Electric Part Co., Ltd. | Accept the services | 34,147.70 | 50,000,000.00 | N | 162,049.81 |
| Sichuan Changhong Network Technology Co., Ltd. | Accept the services | 733.94 | 50,000,000.00 | N | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Accept the services | 50,000,000.00 | N | 94,339.62 | |
| Sichuan Aichuang Technology Co., Ltd. | Accept the services | -59,982.26 | 50,000,000.00 | N | |
| Total | 695,500,064.52 | 4,861,200,000.00 | 586,217,430.56 |
3. Sales of goods
| Related party | Content | Current Period | Last Period |
| (in 10 thousand Yuan) | (in 10 thousand Yuan) | ||
| Sichuan Zhiyijia Network Technolgy Co., Ltd. | Sales of goods | 381,470.50 | 375,670.47 |
| CHANGHONG(HK)TRADINGLIMITED | Sales of goods | 23,462.80 | 38,739.78 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| CHANGHONG.ELECTRIC.(AUSTRALIA) PTY.LTD. | Sales of goods | 13,731.67 | 5,714.99 |
| Changhong International Holdings (Hong Kong) Co., Ltd. | Sales of goods | 7,047.95 | 5,017.47 |
| Changhong Europe Electric s.r.o | Sales of goods | 3,386.81 | 4,109.31 |
| Orion.PDP.Co.,ltd | Sales of goods | 2,058.89 | 1,964.81 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Sales of goods | 217.07 | 253.80 |
| Sichuan Changhong Jijia Fine Co., Ltd. | Sales of goods | 84.74 | 0 |
| Sichuan Changhong Appliance Technology Co., Ltd. | Sales of goods | 80.90 | 4.05 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Sales of goods | 77.98 | 44.03 |
| Sichuan Changhong Electronic Co., Ltd. | Sales of goods | 49.79 | 30.23 |
| Sichuan Changhong Jiahua Information Product Co., Ltd. | Sales of goods | 43.24 | |
| Mianyang Huafeng Hulian Technoology Co., Ltd. | Sales of goods | 41.59 | |
| Sichuan Changhong Model Technology Co., Ltd. | Sales of goods | 38.38 | 57.00 |
| Chengdu Guigu Environment Technology Co., Ltd. | Sales of goods | 29.05 | 18.32 |
| Sichuan Aoku Technology Co., Ltd. | Sales of goods | 19.23 | 0.77 |
| Sichuan Changhong Network Technology Co., Ltd | Sales of goods | 7.54 | |
| Sichuan Ailian Technology Co., Ltd. | Sales of goods | 4.95 | |
| Sichuan Baiku Technology Co., Ltd. | Sales of goods | 2.25 | 9.61 |
| Sichuan Changhong Real Estate Co., Ltd. | Sales of goods | 1.44 | |
| Mianyang Hongsheng Real Estate Co., Ltd. | Sales of goods | 0.72 | |
| Sichuan Aichuang Technology Co., Ltd. | Sales of goods | 0.53 | 0.73 |
| Sichuan Changhong Power Source Co., Ltd. | Sales of goods | 0.30 | 5.46 |
| Sichuan Changhong International Hotal Co., Ltd. | Sales of goods | 0.11 | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Sales of goods | 258.76 | |
| Sichuan Tianyou Guigu Technology Co., Ltd. | Sales of goods | 94.29 | |
| Guangyuan Changhong Electric Technology Co., Ltd. | Sales of goods | 22.45 | |
| Guangdong Changhong Electric Co., Ltd. | Sales of goods | 7.23 | |
| Sichuan Hongmofang Network Technology Co., Ltd. | Sales of goods | 4.33 | |
| Sichuan Qisai Microelectronics Co.,Ltd. | Sales of goods | 4.99 | |
| Sichuan Changhong Electric Holdings Group Co., Ltd. | Sales of goods | 0.26 | |
| Sichuan Qiruik Technology Co., Ltd. | Sales of goods | 0.23 | |
| Sichuan Ansifei Technology Co., Ltd. | Sales of goods | 0.01 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Total | 431,858.43 | 432,033.38 |
4. Providing services
| Related party | Content | Current Period | Last Period |
| Mianyang Huafeng Hulian Technology Co., Ltd. | Provide the services | 3,954,355.82 | 93,625.64 |
| Sichuan Service Exp. Appliance Service Chain Co., Ltd. | Provide the services | 867,737.06 | 1,239,722.20 |
| Sichuan Changhong Moulding Tech. Co., Ltd. | Provide the services | 828,156.62 | 393,122.08 |
| Sichuan Changhong Device Technology Co., Ltd. | Provide the services | 544,959.19 | 124,018.93 |
| Yuanxin Financial Lease Co., Ltd. | Provide the services | 489,372.07 | 185,532.18 |
| Changhong Huayi Compressor Co., Ltd. | Provide the services | 276,535.87 | 116,943.63 |
| Sichuan Changhong Network Technology Co., Ltd | Provide the services | 173,539.62 | |
| Sichuan Changhong Jija Fine Co., Ltd. | Provide the services | 141,015.31 | 58,326.34 |
| Sichuan Changhong Property Service Co., Ltd. | Provide the services | 85,797.50 | 135,593.96 |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Provide the services | 70,158.00 | 131,027.58 |
| Sichuan Aoku Technology Co., Ltd. | Provide the services | 50,941.15 | 1,081.72 |
| Sichuan Changhong International Hotel Co., Ltd. | Provide the services | 26,349.12 | 31,608.80 |
| Sichuan Changhong Minsheng Logistics Co., Ltd. | Provide the services | 11,427.04 | 367,086.07 |
| Sichuan Changhong Jiechuang Lithium Battery Technology Co., Ltd. | Provide the services | 10,912.08 | |
| Sichuan Ailian Technology Co.,Ltd. | Provide the services | 1,586.50 | 80.94 |
| Sichuan Qiruik Technology Co., Ltd. | Provide the services | 1,446.00 | 1,314.00 |
| Sichuan Changhong Electronic Products Co., Ltd. | Provide the services | 900.00 | 4,500.00 |
| Guangdong Changhong Electronics Co., Ltd. | Provide the services | 486,725.66 | |
| Sichuan Hongwei Technology Co., Ltd. | Provide the services | 69,735.85 | |
| Sichuan Changhong Precision Electronic Technology Co., Ltd. | Provide the services | 2,700.00 | |
| Hefei Changhong Industrial Co., Ltd. | Provide the services | 42.50 | |
| Sichuan Qisai Microelectonics Co., Ltd. | Provide the services | 44,593.58 | |
| Sichuan Huafeng Technology Co., Ltd. | Provide the services | -11,201.00 | |
| Sichuan Changhong Electric Co., Ltd. | Provide the services | -52,499.01 | 28,299.02 |
| Sichuan Aichuang Technology Co., Ltd, | Provide the services | -97,082.07 | 111,462.81 |
| Sichuan Changhong New Network Technology Co., Ltd. | Provide the services | -101,370.00 | |
| Total | 7,273,036.87 | 3,627,143.49 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
Businesses between the Company and its connected persons are generally conducted under marketoperation rules as if they were the same as other business counterparties. For price of sale or purchaseand provision of other labor service between the Company and its related parties, the state pricing isapplicable if the pricing do exists; in case of absence of such state pricing, price is determined undermarket price; in case of absence of such market price, price is determined by both parties at actual costplus reasonable expenses; for some special services, the price of which cannot be determined under therule of cost plus expense, the price shall be determined by both parties by negotiation.
5. Related rental
(1) Rent out
| Lessor | Lessee | Type of assets | Leasing income in Current Period | Leasing income in Last Period |
| Changhong Meiling | Sichuan Changhong Moulding Tech. Co., Ltd. | Apartments, warehouses, factories | 999,377.25 | 1,436,731.33 |
| Changhong Meiling | Sichuan Changhong Jijia Fine Co., Ltd. | warehouse, apartment, forklift, warehouse | 402,946.09 | 470,897.06 |
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Apartment, office | 126,690.06 | 84,571.19 |
| Changhong Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Apartment, office | 114,850.93 | 104,497.98 |
| Changhong Meiling | Sichuan Zhiyijia Network Technology Co., Ltd. | Apartment Office building | 94,128.44 | 94,128.44 |
| Changhong Meiling | Sichuan Aoku Technology Co., Ltd. | Warehouse, Apartment | 5,858.10 | 20,987.63 |
| Changhong Meiling | Hefei Changhong Industrial Co., Ltd. | Apartments, warehouses | 146,562.74 | |
| Changhong Meiling | Sichuan Aichuang Science & Technology Co., Ltd. | Warehouse | 19,507.00 | |
| Changhong Meiling | hanghong Huayi Compressor Co., Ltd. | Warehouse | 5,811.32 | |
| Changhong Meiling | Sichuan Hongxin Software Co., Ltd. | Apartment | 4,400.00 | |
| Changhong Meiling | Sichuan Ailian Technology Co., LTD. | Warehouse | 1,586.50 | |
| Changhong Meiling | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | Apartment | 1,105.00 | |
| Changhong Air-conditioner | Sichuan Changhong Moulding Tech. Co., Ltd. | Factories,Equipment | 2,927,575.63 | 2,786,522.82 |
| Changhong Air-conditioner | Sichuan Changhong Jijia Fine Co., Ltd. | Factories,Equipment | 1,867,409.09 | 1,831,253.85 |
| Changhong Air-conditioner | Sichuan Changhong Electric Co., Ltd. | Factories,Equipment | 429,427.67 | 448,648.03 |
| Changhong Air-conditioner | Sichuan Changxin Refrigeration Parts Co., Ltd. | Processing equipment of U | 53,333.35 | 79,999.99 |
| Changhong Air-conditioner | Chengdu Guigu Environmental Tech. Co., Ltd | House and buildings | 14,201.83 | 14,201.83 |
| Changhong Air-conditioner | Sichuan Changhong Electronics Holding Group Co., Ltd. | Workshop | 4.49 | |
| Ridian Technology | Sichuan Changhong Device Technology Co., Ltd. | Workshop | 1,073,574.84 | 1,073,574.90 |
| Ridian Technology | Sichuan Qiruik Technology Co., Ltd. | Workshop | 47,314.29 | 47,314.29 |
| Zhongshan Changhong | Sichuan Changhong Minsheng Logistics Co., Ltd. | Parts of the office building rent-out | 22,148.58 | 22,148.58 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Zhongshan Changhong | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | living area | 42,000.00 | |
| Zhongshan Changhong | Sichuan Changhong Moulding Tech. Co., Ltd. | living area | 24,900.00 | |
| Jiangxi Meiling | Sichuan Changhong Moulding Tech. Co., Ltd. | Workshop | 443546.86 | 411,144.18 |
| Jiangxi Meiling | Sichuan Changhong Minsheng Logistics Co., Ltd. | Warehouse,Office | 9,142.86 | |
| Total | 8,631,525.87 | 9,172,499.15 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(2)Lessee of related parties
| Lessor | Lessee | Type of assets | Rental charges for short-term and low-value assets (if any) | Variable lease payments not included in lease liabilities measurement (if any) | Rent paid | Interest expenses on lease liabilities assumed | Increased use right assets | |||||
| Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | Amount of current period | Amount of previous period | |||
| Hefei Changhong Industrial Co., Ltd. | Changhong Meiling | Workshop leasing | 566,866.14 | 590,931.54 | 563,322.99 | 485,439.06 | ||||||
| Sichuan Changhong Electronics Holding Group Co., Ltd. | Changhong Air-conditioner | Rental | 64,694.40 | 84,747.84 | 12,815.14 | 338,991.37 | ||||||
| Sichuan Changhong Electric Co., Ltd. | Changhong Air-conditioner | VISA Laboratories | 153,431.50 | 153,431.50 | 17,157.52 | 17,157.52 | 1,534,315.05 | |||||
| Sichuan Changhong Electric Co., Ltd. | Changhong Air- | F3 workshop | 106,678.90 | |||||||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| conditioner | ||||||||||||
| Sichuan Jiahong Industrial Co., Ltd. | Changhong Air-conditioner | Staff dormitory | 271,649.52 | 216,056.16 | ||||||||
| Guangdong Changhong Electronics Co., Ltd. | Hong yuan Zhongshan | Staff dormitory | 46,289.04 | 39,530.00 | ||||||||
| Chengdu Changhong Electronic Technology Co., Ltd. | Hongmei Intelligent | Office | 313,553.36 | 334,385.06 | 15,677.67 | 28,592.17 | 329,231.03 | |||||
| Sichuan Changhong Electric Co., Ltd. | Mianyang Meiling | Workshop leasing | 64,519.38 | 32,259.69 | 1,039,954.88 | 1,433,275.56 | 601,697.08 | 208,376.40 | ||||
| Sichuan Jiahong Industrial Co., Ltd. | Mianyang Meiling | Staff dormitory | 15,620.97 | 16,664.37 | ||||||||
| Changhong Huayi Compressor Co., Ltd. | Jiangxi Meiling | Staff dormitory | 57,000.00 | |||||||||
| Guangdong Changhong Electronics Co., Ltd. | Ridian Technology | Staff dormitory | 33,749.28 | 28,660.58 | ||||||||
| Chengdu Changhong Electronic Technology Co., Ltd. | Changmei Intelligent | Office | 62,618.29 | |||||||||
| Total | 595,507.09 | 460,483.49 | 2,158,553.72 | 2,512,023.66 | 1,210,670.40 | 739,565.15 | 668,222.40 | 1,534,315.05 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
6. Related guarantee
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Changhong Meiling | Meiling Group | 4,500.00 | 2023/5/11 | 2024/5/11 | Yes |
| Changhong Meiling | Meiling Group | 8,000.00 | 2023/7/12 | 2024/7/11 | No |
| Changhong Meiling | Ridian Technology | 4,000.00 | 2023/7/8 | 2024/7/8 | No |
| Changhong Meiling | Ridian Technology | 3,500.00 | 2022/11/10 | 2023/11/9 | Yes |
| Changhong Meiling | Ridian Technology | 3,500.00 | 2024/2/6 | 2024/12/28 | No |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2022/8/15 | 2023/8/14 | Yes |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023/5/30 | 2024/5/29 | No |
| Changhong Meiling | Zhongshan Changhong | 6,000.00 | 2023/3/15 | 2024/3/15 | Yes |
| Changhong Meiling | Zhongshan Changhong | 7,000.00 | 2023/6/15 | 2024/6/14 | Yes |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023/5/11 | 2024/5/10 | Yes |
| Changhong Meiling | Zhongshan Changhong | 15,000.00 | 2023/8/23 | 2024/8/23 | No |
| Changhong Meiling | Zhongshan Changhong | 20,000.00 | 2023/7/3 | 2024/7/3 | No |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2023/7/28 | 2024/7/27 | No |
| Changhong Meiling | Zhongshan Changhong | 10,000.00 | 2023/5/12 | 2024/5/12 | No |
| Changhong Meiling | Zhongshan Changhong | 5,000.00 | 2023/11/2 | 2024/11/2 | No |
| Changhong Meiling | Changmei Life Appliances | 5,000.00 | 2022/10/26 | 2023/10/25 | Yes |
| Changhong Meiling | Changmei Life Appliances | 2,000.00 | 2023/4/24 | 2024/4/23 | Yes |
| Changhong Meiling | Changmei Life Appliances | 5,000.00 | 2024/1/1 | 2024/8/14 | No |
| Changhong Meiling | Changmei Life Appliances | 8,000.00 | 2023/2/22 | 2024/1/12 | Tes |
| Changhong Meiling | Changmei Life Appliances | 8,000.00 | 2024/1/22 | 2025/1/22 | No |
| Changhong Meiling | Changmei Life Appliances | 5,000.00 | 2023/4/21 | 2024/4/21 | No |
| Changhong Meiling | Changmei Life Appliances | 2,000.00 | 2023/11/3 | 2024/11/2 | No |
| Changhong Meiling | Changmei Life Appliances | 10,000.00 | 2023/12/1 | 2024/11/30 | No |
| Changhong Meiling | Changmei Life Appliances | 4,000.00 | 2023/12/15 | 2024/6/4 | No |
| Changhong Meiling | Changhong air-conditioner | 60,000.00 | 2023/3/18 | 2024/3/18 | Yes |
| Changhong Meiling | Changhong air-conditioner | 12,000.00 | 2023/4/14 | 2024/4/13 | No |
| Changhong Meiling | Changhong air-conditioner | 10,000.00 | 2023/1/17 | 2023/10/11 | Yes |
| Changhong Meiling | Changhong air-conditioner | 5,000.00 | 2023/1/17 | 2024/1/16 | No |
| Changhong Meiling | Changhong air-conditioner | 16,000.00 | 2023/2/27 | 2024/2/26 | Tes |
| Changhong Meiling | Changhong air-conditioner | 30,000.00 | 2023/3/16 | 2024/3/16 | No |
| Changhong Meiling | Changhong air-conditioner | 1,500.00 | 2023/7/5 | 2023/12/13 | Yes |
| Zhongke Meiling | Anhui Touxing | 1,000.00 | 2023/6/20 | 2024/6/4 | No |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| Zhongke Meiling | Anhui Touxing | 400.00 | 2023/8/15 | 2024/8/14 | No |
| Zhongke Meiling | Anhui Touxing | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
| Zhongke Meiling | Lingan Medical | 1,000.00 | 2023/8/25 | 2024/8/24 | No |
| Zhongke Meiling | Lingan Medical | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
| Counter guarrantee： | |||||
| Meiling Group | Changhong Meiling | 4,500.00 | 2023/5/11 | 2024/5/11 | Yes |
| Meiling Group | Changhong Meiling | 8,000.00 | 2023/7/12 | 2024/7/11 | No |
| Ridian Technology | Changhong Meiling | 4,000.00 | 2023/7/8 | 2024/7/8 | No |
| Ridian Technology | Changhong Meiling | 3,500.00 | 2022/11/10 | 2023/11/9 | Yes |
| Ridian Technology | Changhong Meiling | 3,500.00 | 2024/2/6 | 2024/12/28 | No |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2022/8/15 | 2023/8/14 | Yes |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023/5/30 | 2024/5/29 | No |
| Zhongshan Changhong | Changhong Meiling | 6,000.00 | 2023/3/15 | 2024/3/15 | Yes |
| Zhongshan Changhong | Changhong Meiling | 7,000.00 | 2023/6/15 | 2024/6/14 | Yes |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023/5/11 | 2024/5/10 | Yes |
| Zhongshan Changhong | Changhong Meiling | 15,000.00 | 2023/8/23 | 2024/8/23 | No |
| Zhongshan Changhong | Changhong Meiling | 20,000.00 | 2023/7/3 | 2024/7/3 | No |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2023/7/28 | 2024/7/27 | No |
| Zhongshan Changhong | Changhong Meiling | 10,000.00 | 2023/5/12 | 2024/5/12 | No |
| Zhongshan Changhong | Changhong Meiling | 5,000.00 | 2023/11/2 | 2024/11/2 | No |
| Changmei Life Appliances | Changhong Meiling | 5,000.00 | 2022/10/26 | 2023/10/25 | Yes |
| Changmei Life Appliances | Changhong Meiling | 2,000.00 | 2023/4/24 | 2024/4/23 | Yes |
| Changmei Life Appliances | Changhong Meiling | 5,000.00 | 2024/1/1 | 2024/8/14 | No |
| Changmei Life Appliances | Changhong Meiling | 8,000.00 | 2023/2/22 | 2024/1/12 | Yes |
| Changmei Life Appliances | Changhong Meiling | 8,000.00 | 2024/1/22 | 2025/1/22 | No |
| Changmei Life Appliances | Changhong Meiling | 5,000.00 | 2023/4/21 | 2024/4/21 | No |
| Changmei Life Appliances | Changhong Meiling | 2,000.00 | 2023/11/3 | 2024/11/2 | No |
| Changmei Life Appliances | Changhong Meiling | 10,000.00 | 2023/12/1 | 2024/11/30 | No |
| Changmei Life Appliances | Changhong Meiling | 4,000.00 | 2023/12/15 | 2024/6/4 | No |
| Changhong air-conditioner | Changhong Meiling | 60,000.00 | 2023/3/18 | 2024/3/18 | Yes |
| Changhong air-conditioner | Changhong Meiling | 12,000.00 | 2023/4/14 | 2024/4/13 | No |
| Changhong air-conditioner | Changhong Meiling | 10,000.00 | 2023/1/17 | 2023/10/11 | Yes |
| Changhong air-conditioner | Changhong Meiling | 5,000.00 | 2023/1/17 | 2024/1/16 | No |
| Changhong air-conditioner | Changhong Meiling | 16,000.00 | 2023/2/27 | 2024/2/26 | Yes |
| Changhong air- | Changhong Meiling | 30,000.00 | 2023/3/16 | 2024/3/16 | No |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Secured party | Sponsored party | Maximum guarantee amount | Start | Date due | Completed (Y/N) |
| (in 10 thousand Yuan) | |||||
| conditioner | |||||
| Changhong air-conditioner | Changhong Meiling | 1,500.00 | 2023/7/5 | 2023/12/13 | Yes |
| Anhui Tuoxing | Zhongke Meiling | 1,000.00 | 2023/6/20 | 2024/6/4 | No |
| Anhui Tuoxing | Zhongke Meiling | 400.00 | 2023/8/15 | 2024/8/14 | No |
| Anhui Tuoxing | Zhongke Meiling | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
| Lingan Medical | Zhongke Meiling | 1,000.00 | 2023/8/25 | 2024/8/24 | No |
| Lingan Medical | Zhongke Meiling | 1,000.00 | 2023/10/20 | 2024/10/20 | No |
7. Assets transfer and debt reorganization of related parties
| Related party | Type | Current Period | Last Period |
| Sichuan Changhong Electric Co., Ltd. | Construction of fixed assets | 610,665.49 | |
| Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | Purchase and construction of fixed assets | 352,395.49 | 454,167.32 |
| 081 Electronic Group Co., Ltd. | Purchase and construction | 184,634.57 | |
| Sichuan Zhiyijia Network Technology Co., Ltd. | Purchase and construction of fixed assets | 78,818.00 | 15,700.88 |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 902,404.42 | |
| Sichuan Qiruik Technology Co., Ltd. | Purchase and construction of fixed assets | 288,000.00 | |
| Sichuan Changhong Jiahua In formation Product Co., Ltd. | Purchase and construction of fixed assets | 275,800.17 | |
| Sichuan Hongxin Software Co., Ltd. | Purchase and construction of fixed assets | 121115.04 | |
| Total | 1,226,513.55 | 2,057,187.83 |
8.Other
| Name of company | Content | Current Period (in 10 thousand Yuan) | Last Period (in 10 thousand Yuan) |
| Yuanxin Financial Lease Co., Ltd. | Financing business | 56,792.49 | 27,779.67 |
9. Related transaction with Changhong Finance Company
(1) Saving balance
| Name of company | Ending balance | Beginning balance | Interest income from bank saving in the period |
| Changhong Meiling Co., Ltd. | 1,601,681,337.84 | 2,052,187,201.79 | 27,680,821.56 |
| Sichuan Changhong Air-conditioner Co., Ltd | 1,102,313,364.69 | 977,689,247.58 | 7,091,574.11 |
| Zhongshan Changhong Electric Co., Ltd | 816,026,341.19 | 761,905,289.07 | 8,703,320.84 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 271,654,887.64 | 243,577,856.45 | 2,157,552.43 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | 81,384,980.04 | 167,225,376.64 | 1,173,218.85 |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 50,081,556.29 | 60,561,687.38 | 593,285.38 |
| Changhong Meiling Ridian Technology Co., Ltd. | 42,390,960.35 | 56,655,316.22 | 90,960.04 |
| Anhui Tuoxing Technology Co., Ltd. | 7,411,207.54 | 7,358,942.16 | 87,613.31 |
| Hefei Meiling Group Holdings Limited | 353,192.29 | 304,516.48 | 3,399.40 |
| Mianyang Meiling Refrigeration Co., Ltd. | 9,586.78 | 13,743.00 | 23.13 |
| Anhui Ling'an medical equipment Co., Ltd. | 9,283.96 | 825.26 | 38.40 |
| Jiangxi Meiling Electric Appliance Co., Ltd. | 9,210.82 | 9,667.64 | 20.02 |
| Ground Energy Heat Pump Tech. Co., Ltd. | 0.43 | ||
| Total | 3,973,325,909.43 | 4,327,489,669.67 | 47,581,827.90 |
(2) Discounted bills
| Name of company | Bank acceptance | Bank acceptance | Discounting fees |
| Sichuan Changhong Air Conditioning Co., Ltd | 281,027,530.72 | 279,951,182.65 | 1,076,348.07 |
| Changhong Meiling Co., Ltd. | 257,740,577.09 | 256,054,793.87 | 1,685,783.22 |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 69,759,487.32 | 69,380,572.37 | 378,914.95 |
| Changhong Meiling Ridian Technology Co., Ltd. | 7,539,519.04 | 7,503,749.88 | 35,769.16 |
| Zhongshan Changhong Electric Co., Ltd. | 3,186,264.00 | 3,166,934.00 | 19,330.00 |
| Total | 619,253,378.17 | 616,057,232.77 | 3,196,145.40 |
(3) Issuance of invoices
| Name of company | Issuer | Bill amount | Types |
| Sichuan Changhong Air-conditioner Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 412,479,666.87 | Bank acceptance |
| Zhongshan Changhong Electric Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 175,994,106.32 | Bank acceptance |
| Ground Energy Heat Pump Tech. (Zhongshan) Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 93,332,635.40 | Bank acceptance |
| Changhong Meiling Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 68,648,000.00 | Bank acceptance |
| Hefei Changhong Meiling Life Appliances Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 52,619,912.95 | Bank acceptance |
| Zhongke Meiling Cryogenic Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 22,782,762.33 | Bank acceptance |
| Hefei Meiling Group Holdings Limited | Sichuan Changhong Group Finance Co., Ltd. | 19,690,458.51 | Bank acceptance |
| Changhong Meiling Ridian Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 4,636,688.71 | Bank acceptance |
| Anhui Tuoxing Technology Co., Ltd. | Sichuan Changhong Group Finance Co., Ltd. | 567,648.11 | Bank acceptance |
| Total | 850,751,879.20 |
(4) Borrowings: N/A
(5) Receivable factoring: N/A
(iii) Come and go balance with related parties
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
1. Receivable items
| Item | Related party | Ending balance | Beginning balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 307,366,371.74 | 90,806,707.75 | 188,235,530.60 | 110,410,176.95 |
| Account receivable | CHANGHONG (HK) TRADING LIMITED | 164,326,395.49 | 117,003,398.60 | ||
| Account receivable | CHANGHONGELECTRIC(AUSTRALIA)PTY.LTD. | 99,172,832.83 | 79,488,591.21 | ||
| Account receivable | Changhong International Holdings (Hong Kong) Co., Ltd. | 52,456,012.28 | 4,579,899.03 | 67,734,903.25 | 3,339,617.94 |
| Account receivable | Changhong Ruba Electric Company (Private) Ltd. | 41,050,781.19 | 41,050,781.19 | 40,856,357.09 | 40,856,357.09 |
| Account receivable | Orion.PDP.Co.,ltd | 12,433,142.38 | 13,506,278.22 | ||
| Account receivable | Changhong Europe Electric s.r.o | 3,116,227.66 | 31,860,854.17 | ||
| Account receivable | Sichuan Changhong Jijia Fine Co., Ltd. | 834,176.17 | |||
| Account receivable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 501,968.02 | |||
| Account receivable | Yuanxin Financing Lease Co., Ltd. | 430,950.72 | 558,665.14 | ||
| Account receivable | Sichuan Changhong Model Technology Co., Ltd. | 442,885.30 | 176,175.52 | ||
| Account receivable | Sichuan Changhong Jiahua Information Product Co., Ltd. | 390,882.36 | |||
| Account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 368,299.76 | 349,069.73 | ||
| Account receivable | Sichuan Changhong Electric Appliance Co., Ltd | 237,383.91 | 916.73 | 900,179.64 | |
| Account receivable | Sichuan Changhong Jiechuang Lithium battery Technology Co., Ltd. | 40,738.00 | 30,600.00 | ||
| Account receivable | Sichuan Changhong Electricl Holdings Group Co., Ltd. | 6,227.50 | 720.00 | ||
| Account receivable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 1,044.36 | |||
| Account receivable | Sichuan Aichuang Technology Co., Ltd. | 0.01 | 3,195,467.74 | ||
| Account receivable | Changhong Huayi Compressor Co., Ltd. | 519,071.54 | |||
| Account receivable | Sichuan Changhong Intelligent Manufacturing Technology Co., Ltd. | 727,500.00 | |||
| Account receivable | Sichuan Changhong Property Service Co., Ltd. | 119,213.45 | |||
| Account receivable | Sichuan Changhong Electric Part Co., Ltd. | 954.00 | |||
| Account receivable | Sichuan Changhong Newe Network Technology Co., Ltd. | 112,000.00 | |||
| Account receivable | Mianyang Huafeng Hulian Technology Co., Ltd. | 8,800.00 | |||
| Account receivable | Sichuan Huafeng Technology Co., Ltd. | 176,400.00 | |||
| Account receivable | Sichuan Changhong Network Technology Co., Ltd. | 96,000.00 | |||
| Account paid in advance | Sichuan Ailian Technology Co., Ltd. | 50,889.49 | 53,247.60 | ||
| Account paid in advance | Sichuan Changhong Model Technology Co., Ltd. | 15,433.63 | |||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Beginning balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Account paid in advance | Hefei Changhong Industry Co., Ltd. | 2,320.58 | 2,986.27 | ||
| Account paid in advance | Sichuan Changhong Electric Co., Ltd. | 19.17 | 19.17 | ||
| Account paid in advance | Sichuan Changhong Minsheng Logistics Co., Ltd. | 8,396.00 | |||
| Account paid in advance | Chengdu Changhong Electric Technology Co., Ltd. | 381,126.07 | |||
| Other account receivable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 581,398.59 | 313,490.41 | ||
| Other account receivable | Sichuan Zhiyijia Network Technology Co., Ltd. | 190,551.00 | 303,019.00 | ||
| Other account receivable | Sichuan Changhong Package Printing Co., Ltd | 11,587.58 | |||
| Other account receivable | Sichuan Changhong Electric Appliance Co., Ltd | 3,346.20 | |||
| Other account receivable | Sichuan Changhong Property Service Co., Ltd. | 2,904.93 | 2,904.93 | ||
| Other account receivable | Sichuan Changhong Device Technology Co., Ltd | 41.86 | |||
| Contract assets | Yuanxin Financing Lease Co., Ltd | 534,886.00 | |||
| Contract assets | Sichuan Changhong Jiechuang Lithium battery Technology Co., Ltd. | 171,000.00 | |||
| Contract assets | Sichan Changhong Electric Holdings Group Co., Ltd. | 38,056.67 | |||
| Contract assets | Sichuan Aichuang Technology Co., Ltd. | 21,254.70 | |||
| Contract assets | Guangdong Changhong Electric Co., Ltd. | 11,516.30 | |||
| Contract assets | Sichuan Qimeng Zhongzheng Technology Co., Ltd. | 11,500.00 | |||
| Contract assets | Yibin Hongxing Electric Co., Ltd. | 9,800.00 | |||
| Contract assets | Mianyang Huafeng Hulian TechnologyCo., Ltd | 8,800.00 | |||
| Total | 684,841,626.38 | 136,438,304.70 | 546,721,919.35 | 154,606,151.98 | |
2.Payable items
| Item | Related party | Ending balance | Beginning balance |
| Account payable | Sichuan Changhong Electric Holding Group Co., Ltd. | 357,862,588.09 | 23,732,724.50 |
| Account payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 326,017,919.87 | 173,023,852.05 |
| Account payable | Sichuan Changhong Jijia Fine Co., Ltd. | 267,085,463.33 | 32,211,531.65 |
| Account payable | Mianyang Highly Electric Co., Ltd. | 165,520,564.78 | 17,723,765.52 |
| Account payable | Changhong Huayi Compressor Co., Ltd. | 116,072,221.07 | 117,609,190.18 |
| Account payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 115,851,974.48 | 17,976,156.76 |
| Account payable | Sichuan Changhong Package Printing Co., Ltd. | 66,409,690.20 | 14,430,893.66 |
| Account payable | Sichuan Aichuang Science & Technology Co., Ltd. | 50,216,916.34 | 56,579,812.80 |
| Account payable | Changhong Ruba Electric Company (Private) Ltd. | 15,898,124.68 | 13,195,411.19 |
| Account | Sichuan Changhong Precision Electronics Tech. Co., | 14,616,291.06 | 2,884,803.49 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Beginning balance |
payable
| payable | Ltd. | ||
| Account payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 14,129,525.09 | 4,022,048.97 |
| Account payable | Sichuan Changhong Electric Co., Ltd. | 13,691,229.68 | 2,863,953.34 |
| Account payable | Sichuan Changhong Electronic Products Co., Ltd | 9,412,873.24 | 3,801,344.25 |
| Account payable | Sichuan Aoku Technology Co., Ltd. | 8,932,249.52 | 14,614,765.93 |
| Account payable | Changhong International Holdings (Hong Kong) Co., Ltd. | 7,634,824.10 | 8,933,631.46 |
| Account payable | Sichuan Ailink Technology Co., Ltd. | 4,853,668.90 | 1,721,318.59 |
| Account payable | Guangdong Changhong Electric Co., Ltd. | 4,382,778.25 | 1,554,593.15 |
| Account payable | PT.CHANGHONG ELECTRIC INDONESIA | 2,867,287.58 | 1,514,130.31 |
| Account payable | Sichuan Changhong Electric Appliance Co., Ltd | 2,131,639.89 | 1,148,884.00 |
| Account payable | Sichuan Changhong Intelligence Manufacturing technology Co., Ltd. | 801,438.62 | 270,846.58 |
| Account payable | Sichuan Hongxin Software Co., Ltd. | 557,526.89 | 451,301.89 |
| Account payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 500,389.64 | 725,473.65 |
| Account payable | Sichuan Changhong New Energy Technology Co., Ltd. | 421,990.00 | 225,732.08 |
| Account payable | Sichuan Changhong International Hotel Co., Ltd. | 114,322.00 | 146,276.00 |
| Account payable | Sichuan Qiruik Technology Co., Ltd. | 32,000.00 | 32,000.00 |
| Account payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 30,019.69 | 35,267.63 |
| Account payable | Sichuan Hongwei Technology Co., Ltd. | 10,901.64 | 5,492.64 |
| Account payable | Chengdu Guigu Environmental Tech. Co., Ltd | 57,178.00 | |
| Account payable | Sichuan Jiahong Industry Co., Ltd. | 396.00 | |
| Contract liability | Mianyang Huafeng Hulian Technology Co., Ltd. | 2,917,074.13 | |
| Contract liability | Yuanxin Financial Lease Co., Ltd. | 1,797,939.40 | |
| Contract liability | Sichuan Changhong Electric Co., Ltd. | 353,941.29 | 353,941.29 |
| Contract liability | Sichuan Aichuang Technology Co., Ltd. | 198,900.00 | |
| Contract liability | CHANGHONG ELECTRIC MIDDLE EAST FZCO | 90,788.31 | 90,332.93 |
| Contract liability | Changhong Europe Electric s.r.o | 26,420.38 | |
| Contract liability | Sichuan Changhong Minsheng Logistics Co., Ltd. | 14,654.87 | 14,654.86 |
| Contract liability | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 10,727.89 | 10,727.89 |
| Contract liability | Sichuan Baiku Technology Co., ltd. | 7,841.59 | 22,932.74 |
| Contract liability | Sichuan Anshifei Technology Co., Ltd. | 2,646.19 | 2,646.19 |
| Contract liability | CHANGHONG(HK)TRADINGLIMITED | 914.31 | 908.66 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Beginning balance |
| Contract liability | Sichuan Changhong Moulding Tech. Co., Ltd. | 577.96 | 2,415.93 |
| Contract liability | Changhong International Holdings (Hong Kong) Co., Ltd. | 409.11 | 713.44 |
| Contract liability | Sichuan Zhiyijia Network Technology Co., Ltd. | 32,073,215.34 | |
| Contract liability | 081 Electronic Group Co., Ltd. | 22.61 | |
| Lease liability | Sichuan Changhong Electric Co., Ltd. | 26,224,871.59 | 27,418,257.97 |
| Lease liability | Hefei Changhong Industrial Co., Ltd. | 15,997,026.02 | 16,678,869.72 |
| Lease liability | Sichuan Changhong Electric Holding Group Co., Ltd. | 254,243.53 | |
| Lease liability | Chengdu Changhong Electronic Technology Co., Ltd. | 381,126.07 | |
| Other payable | Sichuan Service Exp. Appliance Service Chain Co., Ltd. | 167,921,811.80 | 82,400,851.21 |
| Other payable | Sichuan Changhong Minsheng Logistics Co., Ltd. | 162,347,273.68 | 132,815,918.64 |
| Other payable | Sichuan Changhong Electric Holding Group Co., Ltd. | 2,709,884.52 | 393,156.00 |
| Other payable | Sichuan Changhong Moulding Tech. Co., Ltd. | 2,590,227.37 | 2,559,981.65 |
| Other payable | Changhong Huayi Compressor Co., Ltd. | 1,848,900.00 | 1,903,400.00 |
| Other payable | Sichuan Changhong Jijia Fine Co., Ltd. | 485,624.10 | 425,492.32 |
| Other payable | Sichuan Hongxin Software Co., Ltd. | 477,830.19 | 594,516.98 |
| Other payable | Sichuan Zhiyijia Network Technology Co., Ltd. | 295,915.19 | 566,063.25 |
| Other payable | Sichuan Changhong Gerun Environmental Tech. Co., Ltd | 160,516.00 | |
| Other payable | Sichuan Aoku Technology Co., Ltd. | 160,212.20 | 260,212.20 |
| Other payable | Sichuan Hongwei Technology Co., Ltd. | 139,366.58 | |
| Other payable | Sichuan Changhong Precision Electronics Tech. Co., Ltd. | 136,929.45 | 734.43 |
| Other payable | Sichuan Aichuang Technology Co., Ltd. | 100,000.00 | 1,443,020.00 |
| Other payable | Sichuan Changxin Refrigeration Parts Co., Ltd. | 64,104.03 | 173,907.41 |
| Other payable | Sichuan Changhong Electric Co., Ltd. | 51,799.44 | 58,735.52 |
| Other payable | Sichuan Changhong Package Printing Co., Ltd. | 50,000.00 | 139,699.18 |
| Other payable | Sichuan Ailink Technology Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Sichuan Changhong Electronic Products Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Hefei Changhong Industrial Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | Sichuan Changhong New Energy Technology Co., Ltd. | 50,000.00 | 50,000.00 |
| Other payable | 081 Electronic Group Co., Ltd. | 40,867.89 | |
| Other payable | Sichuan Changhong Intelligence Manufacturing Technology Co., Ltd. | 34,550.00 | 109,596.00 |
| Other payable | Guangdong Changhong Electric Co., Ltd. | 21,219.12 | 25,113.76 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Related party | Ending balance | Beginning balance |
| Other payable | Sichuan Qiruik Technology Co., Ltd. | 7,410.00 | 585,767.70 |
| Other payable | Chengdu Guigu Environmental Tech. Co., Ltd | 5,717.80 | |
| Other payable | Sichuan Jiahong Industry Co., Ltd. | 18.00 | 18.00 |
| Other payable | Yuanxin Financial Lease Co., Ltd. | 61,295,062.03 | |
| Other payable | Sichuan Changhong Precision Electronic Technology Co., Ltd | 29.70 | |
| Received in advance | Sichuan Changhong Moulding Tech. Co., Ltd. | 315,021.87 | |
| Received in advance | Sichuan Changhong Jijia Fine Co., Ltd. | 309,333.10 | |
| Received in advance | Sichuan Changhong Electric Appliance Co., Ltd | 170,589.03 | |
| Received in advance | Chengdu Guigu Environmental Tech. Co., Ltd | 14,201.84 | |
| Total | 1,954,614,718.40 | 874,494,817.89 | |
(iv) Commitments from related parties: N/Al
XIII. Share-based payment: N/A
XIV. Contingency
1. Pending action or possible liabilities formed from arbitration
In November 2021, Zhejiang Teruisi Pharmaceutical Co., Ltd. filed a lawsuit against Zhongke Meilingfor the "Contract for Cold Storage Design, Equipment Procurement and Installation Construction".Currently, a third-party engineering quality appraisal agency is conducting quality appraisal of theobjects under the contract, the boot-up and operation test has been initially completed, and ZhongkeMeiling intends to advocate maintenance of the cold storage project, and the maintenance cost isestimated to be 1,720,534.42 yuan.As of December 31, 2024, apart from the aforementioned lawsuits, some of our subsidiaries have beendefendants in certain legal proceedings and plaintiffs in other lawsuits that arise in our daily businessoperations. Although the outcome of these contingencies, legal proceedings, or other lawsuits cannot bedetermined at present, the management believes that any resulting liabilities will not have a significantnegative impact on the financial condition or operating performance of the company.
2. Contingency from external guarantee: N/A
3. Other contingency: N/A
XV. Commitments: N/A
XVI. Events occurring after the balance sheet date
1. Important non-adjustment items: N/A
2. Profit distribution: N/A
3.Major sales return: N/A
4.Other than the above mentioned events, the Company have no other events occurred after balance
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
sheet date.XVII. Other significant matters
1. Correction of previous periods and influence: N/A
2. Debt restructuring: N/A
3. Assets replacement: N/A
4. Pension plan: N/A
5. Discontinuing operation: N/A
6.Branch information
In RMB 10,000
| Item | Refrigerator, freezer Washing machine | Air-conditioner | Small home appliances | Other | Sales in branch | Total |
| Operation income | 558,100.36 | 860,091.48 | 84,000.62 | 20,871.26 | 28,296.69 | 1,494,767.03 |
| Including: foreign trade income | 553,437.53 | 860,078.10 | 74,343.40 | 6,908.00 | 1,494,767.03 | |
| Income from transactions between divisions | 4,662.83 | 13.38 | 9,657.22 | 13,963.26 | 28,296.69 | |
| Operation expenses | 544,166.28 | 833,783.40 | 82,703.24 | 19,147.12 | 28,401.54 | 1,451,398.50 |
| Operation profit | 13,934.08 | 26,308.08 | 1,297.38 | 1,724.14 | -104.85 | 43,368.53 |
| Total assets | 1,364,350.65 | 1,065,786.23 | 93,346.70 | 24,847.28 | 179,729.70 | 2,368,601.16 |
| Total liability | 817,950.67 | 895,622.78 | 63,868.48 | 8,108.28 | 34,746.02 | 1,750,804.19 |
| Supplementary information | ||||||
| Depreciation and amortization expenses | 11,034.18 | 7,494.00 | 166.73 | 403.22 | -10.50 | 19,108.63 |
| Capital expenditure | 8,716.57 | 13,691.99 | 0.91 | 372.20 | 30.88 | 22,750.79 |
Total assets do not include deferred income tax assets, and total liabilities exclude deferred income taxliabilities.
7. Other major transactions and events shows impact on investor’s decision-making: N/AXVIII. Notes to main items of financial statement of parent company
1.Account receivable
(1) By account age
| Account age | Ending balance | Beginning balance |
| Within 1 year（Including 1 year） | 1,245,715,775.86 | 1,455,451,760.05 |
| Including： | ||
| Within 3 months (3 months included) | 1,223,841,022.59 | 1,405,485,686.08 |
| More than 3 months and less than 6 months (6 months included) | 12,901,775.29 | 40,372,699.21 |
| Over 6 months and within one year (One year included) | 8,972,977.98 | 9,593,374.76 |
| Over one year - within 2 years (2 years included) | 5,229,426.83 | 13,012,239.58 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Account age | Ending balance | Beginning balance |
| Over 2 years - within 3 years (3 years included) | 15,633,879.27 | 26,677,206.61 |
| Over 3 years | 39,535,366.46 | 24,592,353.91 |
| Total | 1,306,114,448.42 | 1,519,733,560.15 |
(2) Category of account receivable by bad debt accrual
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| Account receivable that withdrawal bad debt provision by single item | 812,379,874.29 | 62.20 | 55,210,546.98 | 6.80 | 757,169,327.31 |
| Including: current payment with related party | 733,464,745.39 | 56.16 | 39,882,592.06 | 5.44 | 693,582,153.33 |
| Account receivable with letter of credit | 59,479,316.90 | 4.55 | 59,479,316.90 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 19,435,812.00 | 1.49 | 15,327,954.92 | 78.86 | 4,107,857.08 |
| Account receivable withdrawal bad debt provision by portfolio | 493,734,574.13 | 37.80 | 12,895,779.72 | 2.61 | 480,838,794.41 |
| Including: account receivable of engineering customers | |||||
| Receivables other than engineering customers | 493,734,574.13 | 37.80 | 12,895,779.72 | 2.61 | 480,838,794.41 |
| Total | 1,306,114,448.42 | 100.00 | 68,106,326.70 | 5.21 | 1,238,008,121.72 |
Continued
| Category | Beginning balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio(%) | Amount | Ratio(%) | ||
| Account receivable that withdrawal bad debt provision by single item | 876,212,956.55 | 57.66 | 53,914,896.27 | 6.15 | 822,298,060.28 |
| Including: current payment with related party | 803,660,757.46 | 52.88 | 39,553,880.21 | 4.92 | 764,106,877.25 |
| Account receivable with letter of credit | 52,483,325.93 | 3.46 | 52,483,325.93 | ||
| Account receivable with single minor amount but withdrawal single item bad debt provision | 20,068,873.16 | 1.32 | 14,361,016.06 | 71.56 | 5,707,857.10 |
| Account receivable withdrawal bad debt provision by portfolio | 643,520,603.60 | 42.34 | 14,023,130.16 | 2.18 | 629,497,473.44 |
| Including: account receivable of engineering customers | |||||
| Receivables other than engineering customers | 643,520,603.60 | 42.34 | 14,023,130.16 | 2.18 | 629,497,473.44 |
| Total | 1,519,733,560.15 | 100.00 | 67,938,026.43 | 4.47 | 1,451,795,533.72 |
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 theminor single receivables, and withdrawal bad debt provision by combination shows no risk
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
characteristic of the receivables, Involving 10 customers.
2) Account receivable withdrawal bad debt provision by portfolio
A. Account receivable of engineering customers
| Account age | Ending balance | ||
| Book balance | Bad debt | Accrual ratio (%) | |
| Within 3 months(3 months included) | 474,441,406.17 | 4,744,414.06 | 1.00 |
| Over 3 months and within 6 months (6 months included) | 2,945,228.31 | 294,522.83 | 10.00 |
| Over 6 months and within one year (One year included) | 7,340,804.83 | 1,468,160.97 | 20.00 |
| over one year-within two years (2 years included) | 4,227,645.87 | 2,113,822.94 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 2,523,150.14 | 2,018,520.11 | 80.00 |
| Over 3 years | 2,256,338.81 | 2,256,338.81 | 100.00 |
| Total | 493,734,574.13 | 12,895,779.72 | — |
(Continued)
| Account age | Beginning balance | ||
| Book balance | Bad debt | Accrual ratio (%) | |
| Within 3 months(3 months included) | 616,484,217.92 | 6,164,842.18 | 1.00 |
| Over 3 months and within 6 months (6 months included) | 10,991,345.13 | 1,099,134.51 | 10.00 |
| Over 6 months and within one year (One year included) | 9,190,814.21 | 1,838,162.84 | 20.00 |
| over one year-within two years (2 years included) | 2,053,806.51 | 1,026,903.26 | 50.00 |
| Over 2 years - within 3 years (3 years included) | 4,531,662.28 | 3,625,329.82 | 80.00 |
| Over 3 years | 268,757.55 | 268,757.55 | 100.00 |
| Total | 643,520,603.60 | 14,023,130.16 | — |
(3) Bad debt reserves of the account receivable
| Category | Beginning balance | Amount change in the period | Ending balance | ||
| Accrual | Collected or switch back | Resale or write-off | |||
| Bad debt provision | 67,938,026.43 | 168,300.27 | 68,106,326.70 | ||
| Total | 67,938,026.43 | 168,300.27 | 68,106,326.70 | ||
(4) Top 5 balance of account receivable aggregated by the debtor at end of the period amountedto794,668,513.11 yuan, accounted for60.84% of the receivables at balance of current period-end, thebad debt provision amounted as2,213,597.52yuan.
2. Other account receivable
| Item | Ending balance | Beginning balance |
| Other account receivable | 67,480,000.95 | 61,841,221.91 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Ending balance | Beginning balance |
| Total | 67,480,000.95 | 61,841,221.91 |
(1) By nature
| Nature | Ending book balance | Beginning book balance |
| Export tax refund | 49,174,580.49 | 41,179,511.61 |
| Cash deposit | 4,501,770.32 | 4,109,987.09 |
| Loans of employee’s pretty cash | 10,249,628.26 | 10,727,346.46 |
| Related party not in consolidation statement | 3,687,015.36 | 5,957,370.23 |
| Other | 456,265.42 | 456,265.42 |
| Total | 68,069,259.85 | 62,430,480.81 |
(2) By account age
| Account age | Ending balance | Beginning balance |
| Within 1 year（1 year included） | 63,012,902.21 | 57,173,854.18 |
| Including： | ||
| Within 3 months (3 months included) | 57,173,080.91 | 53,994,269.35 |
| Over 3 months and within 6 months (6 months included) | 2,694,293.37 | 1,161,881.37 |
| Over 6 months and within one year (One year included) | 3,145,527.93 | 2,017,703.46 |
| over one year-within two years (2 years included) | 1,272,860.98 | 1,206,412.81 |
| Over 2 years - within 3 years (3 years included) | 1,088,660.68 | 1,288,721.92 |
| Over 3 years | 2,694,835.98 | 2,761,491.90 |
| Total | 68,069,259.85 | 62,430,480.81 |
(3) Category of Other account receivable bad debt reserves
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 68,069,259.85 | 100.00 | 589,258.90 | 0.87 | 67,480,000.95 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 15,207,664.00 | 22.34 | 589,258.90 | 3.87 | 14,618,405.10 |
| Export tax refund | 49,174,580.49 | 72.24 | 49,174,580.49 | ||
| Related party funds | 3,687,015.36 | 5.42 | 3,687,015.36 | ||
| Bad debt provision accrued by portfolio | |||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| In which: other receivables accrued by aging portfolio | |||||
| Total | 68,069,259.85 | 100.00 | 589,258.90 | 0.87 | 67,480,000.95 |
Continued
| Category | Beginning balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Ratio (%) | ||
| That withdrawal bad debt provision by single item | 62,430,480.81 | 100.00 | 589,258.90 | 0.94 | 61,841,221.91 |
| In which: other receivables with no major individual amount but bad debt provision accrued individually | 15,293,598.97 | 24.50 | 589,258.90 | 3.85 | 14,704,340.07 |
| Export tax refund | 41,179,511.61 | 65.96 | 41,179,511.61 | ||
| Related party funds | 5,957,370.23 | 9.54 | 5,957,370.23 | ||
| Bad debt provision accrued by portfolio | |||||
| In which: other receivables accrued by aging portfolio | |||||
| Total | 62,430,480.81 | 100.00 | 589,258.90 | 0.94 | 61,841,221.91 |
1) Accrual of bad debt provision for other receivables
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss in next 12 months | Expected credit loss for the whole duration (no credit impairment) | Expected credit loss for the whole duration (credit impairment has occurred) | ||
| Balance as at 1 Jan. 2024 | 589,258.90 | 589,258.90 | ||
| Book balance of other account receivable in Current Year as at 1 Jan. 2024 | — | — | — | — |
| --Transfer to the second stage | ||||
| -- Transfer to the third stage | ||||
| -- Reversal to the second stage | ||||
| -- Reversal to the first stage | ||||
| Provision in Current Year | ||||
| Reversal in Current Year | ||||
| Conversion in Current Year | ||||
| Write off in Current Year | ||||
| Other change | ||||
| Balance as at 30 June. 2024 | 589,258.90 | 589,258.90 |
(4)Bad debt provision for other receivables accrued, recovered or reversed this year
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Category | Beginning balance | Amount change in the period | Ending balance | |||
| Accrual | Recovery or reversal | Write-off or cancellation | Other | |||
| Bad debt provision | 589,258.90 | 589,258.90 | ||||
| Total | 589,258.90 | 589,258.90 | ||||
(5)Other account receivable actually written-off in Current period: N/A
(6) Top 5 other receivables collected by arrears party at balance of period-end
| Name of the unit | Nature | Ending balance | Account age | Proportion of the total period-end balance of other receivable (%) | Ending balance of bad debt reserve |
| Unit I | Export rebates | 49,174,580.49 | Within 1 year | 72.24 | |
| Unit II | Related party payment | 3,037,629.38 | Within 1 year,,1-2 years | 4.46 | |
| Unit III | Petty cash | 1,368,000.00 | Within 1 year | 2.01 | |
| Unit IV | Petty cash | 2,730,438.36 | Within 1 year， 1-2 years，2-3 years | 4.01 | |
| Unit V | Petty cash | 884,183.55 | Within 1 year | 1.30 | |
| Total | 57,194,831.78 | 84.02 |
(7)There is no other receivables reported due to the centralized management of funds.
3. Long-term equity investments
(1) Classification of long-term equity investments
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment loss | Book value | Book balance | Impairment loss | Book value | |
| Investment in subsidiaries: | 1,756,435,120.88 | 1,756,435,120.88 | 1,756,435,120.88 | 1,756,435,120.88 | ||
| Investment in associates: | 102,101,317.86 | 102,101,317.86 | 101,040,690.02 | 101,040,690.02 | ||
| Total | 1,858,536,438.74 | 1,858,536,438.74 | 1,857,475,810.90 | 1,857,475,810.90 | ||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
(2) Investment in subsidiaries
| Invested enterprise | Beginning balance | Increased in Current Period | Decreased in Current Period | Ending balance | Provision for impairment losses in the Period | Ending balance of impairment |
| Zhongke Meiling Cryogenic Technology Co., Ltd | 42,652,000.00 | 42,652,000.00 | ||||
| Mianyang Meiling Refrigeration Co., Ltd. | 95,000,000.00 | 95,000,000.00 | ||||
| Zhongshan Changhong Electric Co., Ltd | 304,856,419.37 | 304,856,419.37 | ||||
| Sichuan Changhong Air-conditioner Co., Ltd | 955,600,437.79 | 955,600,437.79 | ||||
| Hefei Meiling Group Holdings Limited | 113,630,000.00 | 113,630,000.00 | ||||
| Jiangxi Meiling Electric Appliance Co., Ltd. | 79,000,000.00 | 79,000,000.00 | ||||
| Changhong Meiling Ridian Technology Co., Ltd. | 91,082,111.12 | 91,082,111.12 | ||||
| Hefei Meiling Wulian Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | ||||
| CH-Meiling.International (Philippines) Inc. | 6,889,100.00 | 6,889,100.00 | ||||
| Hefei Changhong Meiling Life Appliances Co., Ltd. | 35,000,000.00 | 35,000,000.00 | ||||
| Sichuan Hongmei Intellgence Technology Co., Ltd. | 22,725,052.60 | 22,725,052.60 | ||||
| Total | 1,756,435,120.88 | 1,756,435,120.88 |
(3) Investment in associates
| Invested enterprise | Beginning balance | Changes in Current Period | Ending balance | Ending balance of impairment | |||||||
| Additional Investment | Negative Investment | Investment income recognized under equity | Adjustment for other comprehensive income | Other equity change | Cash dividend or profit announced to issued | Provision for impairment loss | Other | ||||
| Hefei Xingmei Assets Management Co., Ltd. | 14,139,256.78 | 45,466.71 | 14,184,723.49 | ||||||||
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Sichuan Zhiyijia Network Technology Co., Ltd. | 68,854,162.70 | 5,998,850.59 | 5,097,740.91 | 69,755,272.38 | |||||||
| Sichuan Hongyuan Venture Investment Partnership(LP) | 18,047,270.54 | 114,051.45 | 18,161,321.99 | ||||||||
| Total | 101,040,690.02 | 6,158,368.75 | 5,097,740.91 | 102,101,317.86 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
4. Operation income, operation cost
(1) Operation income and operation cost
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main business | 4,736,689,610.11 | 4,312,082,040.29 | 4,122,655,653.51 | 3,763,651,668.97 |
| Other business | 233,213,037.21 | 213,049,683.92 | 216,043,888.41 | 191,302,905.28 |
| Total | 4,969,902,647.32 | 4,525,131,724.21 | 4,338,699,541.92 | 3,954,954,574.25 |
(2)The decomposition information of operation income and operation cost
| Item | Current Period | Last Period | ||
| Income | Cost | Income | Cost | |
| Product | ||||
| Including：Refrigerator, Freezer | 3,855,961,141.78 | 3,531,389,024.77 | 3,480,438,269.96 | 3,192,961,299.81 |
| Air-conditioning | 3,193,017.71 | 3,193,033.03 | 5,672,858.41 | 5,668,106.85 |
| Washing machine | 765,993,263.60 | 683,377,373.67 | 527,176,164.12 | 463,485,427.18 |
| Small household appliances and kitchen and bathroom | 111,542,187.02 | 94,122,608.82 | 109,368,361.02 | 101,536,835.13 |
| Other business | 233,213,037.21 | 213,049,683.92 | 216,043,888.41 | 191,302,905.28 |
| Area | ||||
| Domestic | 2,731,861,997.32 | 2,565,162,644.05 | 2,515,463,495.27 | 2,388,825,421.64 |
| Overseas | 2,238,040,650.00 | 1,959,969,080.16 | 1,823,236,046.65 | 1,566,129,152.61 |
| Total | 4,969,902,647.32 | 4,525,131,724.21 | 4,338,699,541.92 | 3,954,954,574.25 |
5. Investment income
| Item | Current Period | Last Period |
| Long-term equity investment income by cost method | 4,590,000.00 | 50,826,032.53 |
| Long-term equity investment income by equity method | 6,158,368.75 | 11,539,929.52 |
| Investment income obtained from disposal of Trading financial assets | -2,695,895.63 | -8,577,708.50 |
| Investment income of other current financial assets during holding period | 1,394,444.44 | |
| Investment income of other non-current financial assets during holding period | 12,912,196.37 | 11,409,029.33 |
| The termination of income recognition for financial assets measured by amortized cost | -2,635,478.39 | -4,223,097.22 |
| Interest income from debt investment during the holding period | 6,946,457.96 | 7,402,220.09 |
| Total | 26,670,093.50 | 68,376,405.75 |
XIX. Supplementary information for financial statement
1. Non-recurring gains and losses for this period
| Item | Current amount | Note |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | 36,334.95 |
Annotations of Financial Statements of Changhong Meiling Co., Ltd.
From 1 January 2024 to 30 June 2024(Unless other wise specified, RMB for record in the Statement)
| Item | Current amount | Note |
| Government subsidies recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 25,786,292.09 | |
| 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 assets,trading financial liability and financial assets available-for-sale, excluded effective hedging business relevant with normal operations of the Company | -65,274,314.20 | |
| Reversal of the account receivable depreciation reserves subject to separate impairment test | 20,809,004.37 | |
| Other non-operating income and expenses other than the above | -1,926,547.40 | |
| Subtotal | -20,569,230.19 | |
| Less: impact on income tax | -7,066,269.14 | |
| Impact on minority shareholders’ equity (post-tax) | 3,968,079.44 | |
| Total | -17,471,040.49 | — |
2. Return on equity and earnings per share
| Profit during the report period | Weighted average return on equity | Earnings per share/EPS (RMB/Share) | ||
| Basic EPS | Diluted EPS | |||
| Net profit attributable to ordinary shareholders of the parent company | 6.88% | 0.4030 | 0.4030 | |
| Net profit attributable to ordinary shareholders of the parent company after deduction of the non-recurring gains/losses | 7.17% | 0.4199 | 0.4199 | |
Chairman: Wu DinggangChanghong Meiling Co., Ltd.
August 17, 2024