CHANGHONG MEILING CO., LTD.
THE THIRD QUARTERLY REPORT FOR 2019
October 2019
Section I. Important Notes
Board of Directors and the Supervisory Committee of Changhong Meiling Co., Ltd. (hereinafter referred toas the Company) and its directors, supervisors and senior executives hereby confirm that there are no anyfictitious statements, misleading statements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.Principal of the Company Mr. Wu Dinggang, Person in Charge of Accounting Works Mr. Pang Haitao andPerson in Charge of Accounting Organ (Accounting Officer) Mr. Yang Jun hereby confirm that the FinancialReport of the Third Quarterly Report is authentic, accurate and complete.Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Third quarterly report of 2019 has not been audited.
All directors of the Company are attended the Meeting for quarterly report deliberation.
Section II Basic information of Company
I. Main accounting data and indexWhether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
End of this period End of last period
Changes of this period-endover same period-end of last
yearTotal assets(RMB) 14,817,745,280.38
15,561,810,184.54
-4.78%
Net assets attributable toshareholders of listed company(RMB)
5,028,249,585.27
5,015,730,486.57
0.25%
Current period
Increase/decrease incomparison with sameperiod of last year
Year-begin to end of
the Period
Increase/decrease incomparison withyear-begin toPeriod-
end of last year |
Operating revenue (RMB) 3,907,875,881.65
-1.74%
13,041,038,562.59
-1.57%
Net profit attributable toshareholders of the listed company(RMB)
26,417,996.84
76.66%
80,752,019.41
23.03% |
Net profit attributable toshareholders of the listed companyafter deducting non-
and losses(RMB)
8,955,796.33
recurring gains |
274.85%
13,431,193.18
214.58%
Net cash flow arising fromoperating activities(RMB)
-- -- 201,226,091.90
-
Basic earnings per share(RMB/Share)
0.0253
16.58% | ||
76.66%
0.0773
23.03% |
Diluted earnings per share(RMB/Share)
0.0253
76.66%
0.0773
23.03% |
Weighted average ROE 0.53%
0.23
percentage points |
up
1.60%
0.30
percentage points |
up
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Amount from year-begin to
Item | Note |
Gains/losses from the disposal of non-current asset (including thewrite-off that accrued for impairment of assets)
-4,436,536.97
end of the Period |
Found more in “Income from assetsdisposal”Governmental subsidy reckoned into current gains/losses (notincluding the subsidy enjoyed in quota or ration according tonational standards, which are closely relevant to enterprise’sbusiness)
77,124,210.10
Found more in “Other income” and“Non-operation income”Except for the effective hedging business relevant with normaloperations of the Company, gains/losses from change of the fairvalue for holding the trading financial assets, derivative financialassets, trading financial liabilities and derivative financialliability, as well as the investment income from disposing thetrading financial assets, derivative financial assets, tradingfinancial liabilities, derivative financial liability and othercreditors’ investment
4,464,614.42
Found more in “Gain/loss of changesin fair value”, “investment income”
Switch-back of the receivables for separate impairment tests andprovision for impairment of contract assets
662,652.68
--Other non-operation income and expenditure except for theaforementioned items
1,763,043.66
Found more in “non-
and expenditure”Less: impact on income tax 11,543,274.56
operation income | |
-- Impact on minority shareholders’ equity (post-tax) 713,883.10
--Total 67,320,826.23
--
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosurefor Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined asrecurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 onInformation Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss,explain reasons
□Applicable √Not applicable
The Company has no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit(gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to thePublic --- Extraordinary Profit/loss, in the periodII. Total number of shareholders at the end of this report period and top ten shareholders
1. Number of common shareholders and preference shareholders with voting rights recovered and top ten
common shareholders
In shares
Total number of common shareholdersat the end of report period
64,377
Total preference shareholders
with voting rights recovered at |
end of reporting period (ifapplicable)
Top ten shareholdersShareholder’s name
Nature ofshareholder
Pro
portion
of sharesheld
Amount ofshares held
Amount ofrestricted sharesheld
Number of sharepledged/frozenState ofshare
AmountSichuan Changhong Electric Co., Ltd.
State-owned legalperson
23.79%
portion |
248,457,724
69,877,638
- -Hefei Industrial Investment Holding(Group) Co., Ltd.
State-owned legalperson
4.58%
47,823,401
-
- -CHANGHONG (HK) TRADINGLIMITED
Foreign legal person
2.59%
27,077,797
-
- -CAO SHENGCHUN
Foreign naturalperson
1.41%
14,765,386
-
- -Caitong Fund- Ningbo Bank-HaitongXingtai (Anhui) Emerging IndustryInvestment Fund (Limited Partnership)
Domesticnon-state-ownedlegal person
1.03%
10,733,452
-
- -China Construction Bank -HuaxiaZhongzheng Sichuan SOE reform ETF
Domesticnon-state-ownedlegal person
0.67%
6,996,400
-
- -Phillip Securities (Hong Kong) Limited Foreign legal person
0.60%
6,296,913
-
- -Ma Guobin
Domestic naturalperson
0.56%
5,874,969
-
- -Zheng Huiru
Domestic naturalperson
0.45%
4,680,000
-
- -China Securities Finance CorporationLimited
Domestic generallegal person
0.42%
4,362,500
-
- -Particular about top ten shareholders with un-restrict shares heldShareholders’ name
Amount of unrestricted shares
held
Type of sharesType AmountSichuan Changhong Electric Co., Ltd. 178,580,086
RMB ordinary shares
178,580,086 |
Hefei Industrial Investment Holding(Group) Co., Ltd.
47,823,401
RMB ordinary shares
47,823,401 |
CHANGHONG (HK) TRADINGLIMITED
27,077,797
Domestically listed foreign shares
27,077,797 |
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)CAO SHENGCHUN 14,765,386
Domestically listed foreign shares
14,765,386 |
Caitong Fund- Ningbo Bank-HaitongXingtai (Anhui) Emerging IndustryInvestment Fund (Limited Partnership)
10,733,452
RMB ordinary shares
10,733,452 |
China Construction Bank -HuaxiaZhongzheng Sichuan SOE reform ETF
6,996,400
RMB ordinary shares
6,996,400 |
Phillip Securities (Hong Kong) Limited 6,296,913
Domestically listed foreign shares
6,296,913 |
Ma Guobin 5,874,969
RMB ordinary shares
5,874,969 |
Zheng Huiru 4,680,000
RMB ordinary shares
4,680,000 |
China Securities Finance CorporationLimited
4,362,500
RMB ordinary shares
4,362,500 |
Explanation on associated relationshipor consistent actors among the aforesaidshareholders
referred to as Hong Kong Changhong) is the wholly-
owned subsidiary of Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as Sichuan Changhong); except the shares of the Company directly held by Hong Kong Changhong, 6,296,913 shares of |
B-stock are also held through
Information Disclosur
e of Shareholder Equity Changes of Listed Companies among Sichuan Changhong, Hong Kong Changhong and other top 7 shareholders; “Caitong |
Fund- Ningbo Bank-
(Limited Partnership) ” refers to the produc
ts of Caitong Fund Management Company subscribe for privately placement of 2016; The company neither knows whether there is any association among other shareholders, nor knows whether other shareholders belong |
to the persons acting in concert that is stipu
Information Disclosure of Changes in Shareholding of Listed Companies”.Explanation on top ten commonshareholders involving margin business(if applicable)
As of 30
th
September 2019, among the top 10 common share
lated in the “Administrative Measures on |
holders, Ma Guobin holds 5,874,969 shares of the Company through customer credit trading secured account of Founder Securities Co., Ltd., and 0 shares hold through common securities account, thus |
5,874,969 shares of the Company are held in totalWhether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-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.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
Section III. Important events
I. Particular about major changes from items of main accounting statements and financialindexes as well as reasons
√ Applicable □Not applicable
(i) Changes of items of balance sheet and cause analysis
In RMBItem Closing balance Opening balance
Changes ReasonsTradable financialassets
18,609,751.92 9,253,635.59 101.11%
Change of the fair value of forward foreignexchange contract in the periodAccountreceivable
2,206,388,200.30 1,673,362,136.29 31.85%
The account receivable from subsidiaryChanghong Air-conditioner and ZhongshanChanghong increased in the periodAccount paid in
advance
55,225,984.20 86,180,459.26 -35.92%
The account of equipment relocation are paid inadvance from subsidiary ChanghongAir-conditioner in the periodOther accountreceivable
130,723,288.12 63,192,740.93 106.86%
Cash deposit for the engineering projects are paidin the periodInvestment realestate
97,231,072.87 46,846,507.41 107.55%
The investment real estate from subsidiaryChanghong Air-conditioner increased in the period
Tradable financialliability
18,131,337.32 55,586,666.70 -67.38%
Change of the fair value of forward foreignexchange contract in the periodAccount received
in advance
240,271,809.66 354,551,354.80 -32.23%
The account received in advance from subsidiaryMeiling Group declined in the periodTaxes Payable 65,314,443.39 109,753,432.17 -40.49%
VAT are paid by subsidiary ChanghongAir-conditioner and Meiling Group in the periodNon-currentliability duewithin one year
300,000.00 273,682,737.85 -99.89%
The long-term loans due within one year are paidby parent company in the periodLong-term loans 301,280,000.00 1,920,000.00 15,591.67%
The long-term loans from parent companyincreased in the periodDeferred income
tax liability
5,996,351.53 3,098,699.11 93.51%
The deferred income tax liability recognize bysubsidiary Changhong Air-conditioner increased inthe period
(ii) Changes of items of profit statement and cause analysis
In RMBItemCurrent Period
Same period of
last year
Changes ReasonsFinancial expenses -9,844,161.99 -33,207,231.05 70.36%
The exchange loss increased on a y-o-y basis inthe period
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Income from fairvalue changes
43,185,470.53 -25,833,772.85 267.17%
Change of the fair value of forward foreignexchange contract in the periodInvestment income -38,327,115.65 20,726,039.38 -284.92%
The loss of forward exchange contract deliveryincreased from a year earlierIncome from theinvestment forassociated enterpriseand joint venture
1,251,855.70 -12,056,138.08 110.38%
The income from investment for associatedenterprise increased on a y-o-y basis in the periodCredit impairmentloss
1,082,468.11 - -
The financial assets impairment are listed underthe item of “Credit impairment loss” for change ofthe accounting policy in the periodIncome from assetsdisposal
-4,436,536.97 3,476,687.51 -227.61% Losses of the assets disposal in the periodNon-operationexpenditure
3,776,106.23 60,249.87 6,167.41%
Relocation expenditure from subsidiaryChanghong Air-conditioner increased from a yearearlierIncome tax expenses
36,397,055.33 25,015,797.92 45.50%
Income tax expenses increased on a y-o-y basis inthe periodGains/losses ofminorityshareholders
-11,984,976.39 196,132.62 -6,210.65%
Mainly due to the year-on-year increase in lossesof some non-wholly-owned subsidiaries of thecompany.
(iii) Changes of items of cash flow statement and cause analysis
In RMBItem Current Period
Same period oflast year
Changes ReasonsRefunds of taxes 280,384,080.90 455,080,647.00 -38.39%
The export rebates received in the perioddeclined on a y-o-y basisOther cash receivedconcerning operatingactivities
125,280,221.18 234,806,474.37 -46.65%
The reversal of the restricted money declined inthe periodTaxes paid 448,423,347.16 297,025,746.90 50.97% VAT paying increased on a y-o-y basisCash paid forpurchasing fixedassets, intangibleassets and otherlong-term assets
266,302,834.52 436,847,276.96 -39.04%
Fixed assets purchased in the period declined ona y-o-y basisCash paid forinvestment
1,981,000,000.00 3,020,000,001.00 -34.40%
The entrusted financial principal paid in theperiod declined on a y-o-y basisOther cash paidconcerning investmentactivities
76,709,995.61 255,500.00 29,923.48%
The loss of forward exchange contract deliveryincreased from a year earlierCash received forabsorbing investment
- 24,865,000.00 -100.00%
Investment from minority shares are received atsame period last year while no such amount
occurred in the periodCash received byborrowing
1,308,256,908.10 2,021,566,261.86 -35.28%
Borrowings received in the period declined on a
y-o-y basisOther cash paidconcerning financingactivities
32,764,857.16 2,050,458.19 1,497.93%
The restriction for utilization of the financing
guarantee increased on a y-o-y basisInfluence on cash andcash equivalents dueto fluctuation inexchange rate
12,976,331.25 3,791,101.79 242.28%
Changes in foreign currency exchange rate in the
periodII. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable
(i) Particular about the process of the fund raised and investment of fund raisedIn 2016, the Company carried out private placement of A-share with 1,569,999,998.84 Yuan raise in total. Netamount raise as 1,540,732,722.76 Yuan after vary issuance costs (tax included) 29,267,276.08 Yuan deducted.As approved at the 16
th
session of the 9
th
BOD, the 8
th
session of 9
th supervisory committee and the 3
rd
extraordinary meeting of the shareholder general meeting for 2018, being agreed by independent directors as wellas the no objection verification opinion required from sponsor institution, the Company was approved to invest insuch break-even financing products that are highly safe, in good liquidity and with a term of not more than oneyear for a single product with the available raised proceeds under the maximum limit of 940 million Yuan. Thisauthorization shall be effective for a year since being approved at the general meeting of the Company.
The resolutions of the 20
th session of 9
th Board of Directors, the 11
th session of 9
thSupervisory Committee, and the2018 Annual General Meeting of Shareholders passed and agreed the company to postpone the date of reachingthe expected usable status of the “Intelligent Manufacturing Construction Project” and the "Intelligent R&DCapacity Building and Smart Appliance Technology New Product Development Project" in the 2016 non-publicoffering to raise funds for investment projects to the end of December 2021.
The resolutions of the 24
th session of 9
th
Board of Directors, the 13
th session of the 9
thSupervisory Committee,andthe 2
nd
Extraordinary General Meeting of 2019 passed and agreed the company to invest 120 million Yuan of theunused raised funds of the sub-project “intelligent production line construction project for newly increasing600,000 medium- and large-volume environmental protection and energy-saving freezer per year” of the“Intelligent Manufacturing Construction Project”, which was the 2016 non-public offering to raise funds forinvestment projects, into the “production base project (Phase II) for annual production capacity of 2 millionwashing machines”, and agreed the company to terminate the implementation of the “Smart Life Project” and usethe project's remaining raised funds and the interest and other proceeds from wealth management to permanentlyreplenish the working capital. Up to now, the Company are strictly comply with the resolution of the shareholdergeneral meeting and relevant regulations in using the fund raised.
Ended as 30 September 2019, actually fund of raised used accumulative amounted as 1,107,781,648.76 Yuan intotal, balance of the account for fund raised counted as 544,831,331.56 Yuan (including interest income
accumulative amounted as 7,679,296.60 Yuan and income from financial product at expiration 73,238,685.81Yuan, and the bank financial products of 517,000,000.00 Yuan purchased by the idle fund of raised)
Up to 30
thSeptember 2019, the Company accumulative used the fund raised in specific account amounted as1,107,781,648.76 Yuan, the use of purpose including:
1. The intelligent construction (Hefei) has 133,425,464.48 Yuan in used;
2. The production base project (Phase II) for annual production capacity of 2 million washing machines have
1,761,561.00 Yuan paid actually with the self-owned funds, but not transfer out from the specific account of fundraised, thus the fund raised for the project in specific fund raised account amounted as 0 Yuan.
3. Intelligent R & D capacity building and intelligent home appliances technology development project invested
352,661,186.36 Yuan accumulated;
4. The intelligent life project have 350,814,934.15 Yuan fund raised used in total (including the permanent
replenishment of working capital) (financial income 27,146,472.44 Yuan and interest income 3,668,461.71 Yuanincluded), at the same time, on 26 July 2019 and 19 August, the rest fund raised and interest income of305,813,334.15 Yuan in account for “ intelligent life project” have been withdrawal for supplementing theworking capital permanently. On 11 October 2019, the rest interest income of 29,712.17 Yuan in specific accountof the project have withdrawal by the Company and the account has been closed. Furthermore, the project’scarrier for implementation - Changmei Technology Co., Ltd. has in the progress of liquidation.
5. Supplementation of the working capital amounted as 270,880,063.77 Yuan (including saving interest
147,341.01 Yuan)(ii) Progress of shares buy-back
□ Applicable √ Not applicable
(iii) Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
(IV) progress of the annual performance incentive fundThe “Implementation Plan of Annual Performance Incentive Fund” has been deliberated and approved by the
th session of 7
th Board and 2
nd
extraordinary general meeting 2012 on 9 August 2012 and 28 August 2012.Details of the aforesaid event can be found in the announcement (No.: 2012-028 and No.: 2012-035) released onappointed media Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website(www.cninfo.com.cn) dated 10 August 2012 and 29 August 2012.
1. Implementation about 2012, 2013, 2014 and 2016 performance incentive fund provision and distribution
plan
See details in "Implementation of the company's annual incentive fund" in "XI Implementation of the company's
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)stock incentive plan, employee stock ownership plan, or other employee incentive measures" in "Section VSignificant Events" of the company's "2018 Annual Report" disclosed on March 29, 2019.
Up to the end of this reporting period, the company's stock purchased by some annual performance incentiveobjects (non-directors, supervisors and senior management) for year of 2012, 2013 and 2014 with their grantedincentive funds and self-own funds have been fully open for trading; the company's stock purchased by some2016 annual performance incentive objects (non-directors, supervisors and senior management) with their granted2016 incentive funds and self-own funds has been desterilized by 50% for term of holding for two years; seebelow for the overall reducing holding-shares of some above-mentioned incentive objects. During the reportingperiod, among the incentive objects, the incumbent director and deputy president Mr. Zhong Ming reducing78,725 shares ( takes 0.0075% of the total shares of the Company) on 22 August 2019 via centralized biddingsystem in Shenzhen Stock Exchange; other incumbent directors, supervisors and senior managements in incentiveobjects are not reducing the shares for implementing the performance incentive plan of 2012, 2013, 2014 and2016.
2. Share holding and reduction of the company’s performance incentive objects
As of September 30, 2019, all incentive objects held a total of 11,323,917 shares, accounting for 1.0841% of thecompany’s general capital, of which 9,634,024 shares of A share, accounting for approximately 0.9223% of thecompany’s general capital, 1,689,893 shares of B share, and accounting for about 0.1618% of the company’sgeneral capital. Some 2012, 2013, 2014 and 2016 annual performance incentive objects (not directors, supervisorsor senior management) have totally reduced share of 5,189,898 shares from September 2014 to the end of the thisreporting period, accounting for approximately 0.4968% of the company’s general capital, and reduced holding of352,563 shares from July to September 2019.
(V) Transaction with Sichuan Changhong Group Finance Co., Ltd.The resolution of the 34
th session of 8
th
board of directors on August 9, 2017 and the second extraordinary generalmeeting of 2017 on September 12, 2017 approved and agreed the company to continue carry out the financialservice cooperation with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred to as “ChanghongFinance Company”) and sign a triennial Financial Service Agreement, It is agreed that the maximum depositbalance (including accrued interest and handling fees) and the highest principal and interest of outstanding loanthe Company in any finance company within the three-year validity period from the effective date of the newagreement shall be adjusted to not exceed RMB 3.8 billion per day. In accordance with the agreement, ChanghongFinance Company shall provide a series of financial services such as deposit and loan in its business scopeaccording to the requirements of the Company and its subsidiaries.
On 10 December 2018 and 27 December 2018, deliberated and approved by the 17
th session of 9
th BOD and 4
th
Extraordinary shareholders general meeting of 2018, the related transactions of financial service with ChanghongFinance between the Company and controlling subsidiary for year of 2019 including: the maximum balance inChanghong Finance Company (including accrual interest and handling charges) will not be over 3.8 billion Yuaneveryday, the maximum outstanding loan principal and interest shall not exceed 3.8 billion Yuan; the line of creditto the Company and subordinate subsidiary from Changhong Finance will not exceed 6 billion Yuan; the upperlimit of notes for business shall not exceed 3 billion Yuan and the upper limit of bill discount business shall not
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)exceed 3 billion Yuan. The related transaction with Changhong Finance Company from beginning of the year toend of the period including:
Up to 30 September 2019, the Company and its subsidiaries have opened financial business as savings, notedrawing and notes discounted with Changhong Finance Company. The Company and its subordinate companyowns 2,580,645,538.16 Yuan savings in Changhong Finance Company, takes 23.16% of the deposit taking balancein Changhong Finance Company without 30% occupied, balance of notes drawing at period-end was1,129,785,016.07 Yuan and balance of notes discounted outstanding as 749,980,883.61 Yuan. More details are:
CNY/ RMBItem Opening balance Current increased Current decreased Ending balance
Interest andhandling charge
received/paid
Changhong GroupFinance Company
3,119,117,207.91 25,096,857,470.56 25,635,329,140.31 2,580,645,538.16 77,721,913.52
I. Savings in |
II. Borrowings from Changhong Group Finance |
Company
1.Short-term loans
2.Long-term loans
III. Other
financial business
1.notes drawing
819,806,514.07 1,620,131,958.33 1,310,153,456.33 1,129,785,016.07 647,336.38
2.notes discounted
772,233,395.98 1,097,863,492.58 1,120,116,004.95 749,980,883.61 14,376,818.54(VI) Other significant events
Overview
Date fordisclosure
Information index for temporary report
disclosure
III. OtherMr. Wu Dinggang, the former president of the company, applied forresignation as the president of the company due to changes in his personal
work, but he continues to serve as the vice-
president of the company, a |
member of the strateg
the remuneration and appraisal committee.
2019-1-12
Juchao Website: http://www.cninfo.com.cn(No.: 2019-001)
y committee of the board of directors, and a member of |
After the resolution of the board of directors of the company, it’s agreed to |
authorize Mr.
engages a new president.
2019-1-12
Juchao Website: http://www.cninfo.com.cn(No.: 2019-002)
Plan of Changhong Meiling Co., Ltd. from Caitong
Fund Management Co., Ltd. (hereinafter referred to as “Caitong Fund”) that held more than 5% of the company’s shares, Caitong Fund reduced its holdings of the company’s shares of 12,160,298 shares in total by centralized bidding transactions or block |
tradi
of the company's total share capital.
2019-1-15
Juchao Website: http://www.cninfo.com.cn(No.: 2019-003)
The resolutions of Board of Directors, the Board of Supervisors and GeneralMeeting of passed and agreed the company to provide credit guarantees of
2.98 billion yuan in total for its wholly-owned and controlled subsidiaries in
2019, the guarantee period is one year for the newly increased guaranteeamount for the current year and the amount of renewal insurance during theyear.
2019-1-302019-2-142019-2-23
Juchao Website: http://www.cninfo.com.cn(No.: 2019-004, No.: 2019-005, No.:
2019-006, No.: 2019-008, No.: 2019-010 andNo.: 2019-012)The resolution of the Board of Directors of the Company passed and agreedthe company to apply for a special credit line of up to 300 million yuan in thebank notes pool to Hefei Branch of China Everbright Bank Co., Ltd.
2019-1-30
Juchao Website: http://www.cninfo.com.cn(No.: 2019-004, No.: 2019-007)On F
ng from October 18, 2018 to January 13, 2019, accounting for 1.1641%
ebruary 13, 2019, the company received the “Short Form Report onChanges in Equity of Changhong Meiling Co., Ltd.” from Caitong Fund,Caitong Fund and its subordinate assets management plan reduced its holdings
of the shares of Changhong Meiling of
2,600,729 shares in total by centralized bidding transactions from January 14, 2019 to February 12, 2019, totally 8,115,894.30 Yuan reduced, accounting for 0.25% of the company's total share |
capital. After this equity change, Caitong Fund(presenting the as
accounting for 4.999995% of Changhong Meiling's total share capital.
2019-2-14
Juchao Website: http://www.cninfo.com.cn(No.: 2019-011)
On February 25, 2019, the company receive
sets management plan on behalf) holds 52,229,844 shares of Changhong Meiling, |
d the Notice of Sichuan Changhong Electric Co., Ltd. and its Concerted Action Person CHANGHONG (HK) TRADING LIMITED, Ltd. to Increase the Shareholding of Changhong Meiling Co., Ltd. and the Equity Changes |
(hereinafter referred to as “Notice”). Sichuan Chan
Changhong Meiling A shares and 2,479,268 share
s of Changhong Meiling B shares) by bidding transaction method through the secondary market from November 12, 2018 to February 25, 2019, accounting for 1.55% of Changhong Meiling’s total share capital, consequently, the equity ratio of |
Changhong
accumulatively increased by 5% from September 2009 to February 2019.
2019-2-262019-2-28
Juchao Website: http://www.cninfo.com.cn(No.: 2019-013)
In late March 2019, the Company received the "N
Meiling held by Sichuan Changhong and concerted action person |
otice of Civil Penalty" issued by U.S Department of Energy ("DOE", i.e. the US Department of |
2019-3-26
Juchao Website: http://www.cninfo.com.cn(No.: 2019-014)
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Energy).
Annual Ge
neral Meeting of Shareholders passed and agreed the company to change the corresponding accounting policies according to the relevant regulations and requirements of the Ministry of Finance so as to apply to the |
new regulations.
2019-3-29、2019-4-272019-5-22
Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-018, No.:
2019-031 and No.: 2019-035)
Shareholders passed and agreed the company and its subsidiaries to car
ry out forward foreign exchange fund trading business from July 1, 2019 to June 30, 2020, the balance of the business transaction does not exceed US$650 million (mainly including US dollar, Australian dollar, Euro, and other foreign |
exchanges are all conve
single-business delivery period is no more than one year.
2019-3-292019-4-272019-5-22
Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-020, No.:
2019-031 and No.: 2019-035)
In accordance with the
rted into US dollars), and the maximum |
resolutions of the Board and the Annual General Meeting, it’s agreed to revise some of the provisions of the "Articles of Association", "Rules of Procedure of the General Meeting of Shareholders", |
and “Rules of Procedure of the Board of Directors".
2019-3-292019-4-272019-5-22
Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-022, No.:
2019-031 and No.: 2019-035)
company's subsidiaries, Zhongshan Changhong Elect
ric Appliance Co., Ltd., Guangdong Changhong Technology Co., Ltd. and Hongyuan Geothermal Heat Pump Technology (Zhongshan) Co., Ltd. to donate a total of 130,000 yuan to Nantou Town People's Government of Zhongshan City to expand the Nantou |
Town Central Primary School.
2019-3-29
Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-023)
Plan of Changhong Meiling Co., Ltd. from Caitong Fund.
Caitong Fund |
reduced holding of 7,430,612
0.7113% of the total share capital of the Company. A
fter the reduction, |
Caitong Fund
4.2887% of the company's total equity.
2019-4-16
Juchao Website: http://www.cninfo.com.cn(No.: 2019-024)
The resolutions of the Board of Directors passed and ag
still holds 44,799,232 shares of the company, accounting for |
reed the company to implement the new financial instrument standards and change the relevant accounting policies in accordance with the relevant regulations and |
requirements of the Ministry of Finance.
2019-4-20
Juchao Website: http://www.cninfo.com.cn(No.: 2019-025, No.: 2019-028)
set up a wholly-
owned subsidiary to engage in refrigeration engineering |
equipment sales, design and other services.
2019-4-20
Juchao Website: http://www.cninfo.com.cn(No.: 2019-025)
withdraw some of the investment under the “Soochow-
China Merchants |
Bank-
Donghui 135 Directional Asset Management Plan” issued by SoochowSecurities Co., Ltd. in advance, which was subscribed by the company at an
earlier stage, that is, withdraw the princip
yuan and the one-
year investment income corresponding to the asset management plan of about 16 million yuan (after deducting management fees, |
custody fees and value-added tax) for the daily operation of the company.
2019-4-20
Juchao Website: http://www.cninfo.com.cn(No.: 2019-025)
member of the nomination committee of the
board of directors of the company |
for work reasons.
chairman of the ninth board of directors for a term of office consis
tent with the |
term of the current board of directors.
2019-4-27
Juchao Website: http://www.cninfo.com.cn(No.: 2019-029, No.: 2019-030)
Shareholders of the company passed and agreed the by-
election of Mr. Zhong |
Ming as a non-
Directors.
2019-4-272019-5-22
Juchao Website: http://www.cninfo.com.cn(No.: 2019-030, No.: 2019-031 and No.:
2019-035)
independent director of the Ninth Board of Directors of the Company, and his term of office is the same as that of the Ninth Board of |
Subordinate controlling subsidiary of the Company, have accumulated received various kinds of government subsidies as 72,467,598.96 Yuan from 1 |
Jan. 2019 to 13 August 2019.
2019-6-122019-8-13
Juchao Website: http://www.cninfo.com.cn(No.: 2019-036, No.: 2019-048)
1,044,597,881 shares on December 31, 2018 as th
e base, and distribute a cash dividend of 0.6 yuan (including tax) per every 10 shares to all shareholders, who distributed cash dividends of 62,675,872.86 yuan (including tax) in total, |
the above mentioned profit distribution plan has been completed.
2019-3-292019-5-222019-6-18
Juchao Website: http://www.cninfo.com.cn(No.: 2019-015, No.: 2019-035 and No.:
2019-037)
from Mr. Zhong Ming, the company's director and vice president,
Mr. Zhong Ming planned to reduce his holdings of the Company’s shares of no more than 78,725 shares (not exceeding 0.0075% of the company's total share capital) by centralized bidding transactions of the stock exchanges within six months after |
15 trading d
Mr. Zhong Ming. Up to 22 August 2019, Mr. Zhong M
ing reduced 78,725 |
shares via centralized bidding system in Shenzhen Stock Exchange.
2019-6-292019-8-24
Juchao Website: http://www.cninfo.com.cn(No.: 2019-039, No.: 2019-055)
12,60
4,521.25 Yuan that unable to collected by the Company and its |
subsidiaries are being verified
2019-8-16
Juchao Website: http://www.cninfo.com.cn(No.: 2019-049, No.: 2019-052)
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)In order to further utilize the mature intelligent trading platform of
Company’s and controlling share
holder Sichuan Changhong’s collaborative advantages in home appliance marketing, make it better to adapt to the market |
competition and consumer behavior.
Board and shareholders general meeting, self-owned capital 29,0
87,040 Yuan of the Company (including: 20 million Yuan for registered capital and 9,087,040 Yuan reckoned into capital reserves) is agreed to increase the capital for Zhiyijia Company. After capital increased, the shareholding ratio by the |
Company and Sich
controlling companies with Zhiyijia Company in aspect of g
ood sales and accepting services; it is estimated that the amount from related trading as good |
sales and accepting services for year of 2020 was 8526 million Yuan in total.
2019-8-312019-9-62019-9-102019-9-27
(No.: 2019-057, No.: 2019-
058, No.: |
2019-059 and No.: 2019-067)
its shareholders, through friendly consultation with the shareholder-
Italy Candy Hoover Group S.r.l., the subordinate controlling subsidiary Meiling |
CANDY was agreed to be liquidated and canceled.
2019-8-31
(No.: 2019-057)Being approved by the resolution of the Boar
Juchao Website: http://www.cninfo.com.cn | ||
d and shareholders general meeting, it is agreed to increased the capital to Changhong Finance Company |
with 500 million Yuan each with self-
Total
capital comes to 1000 million Yuan. Based on the capital increase has involvement in the assessment results of shareholders’ equity, among the 500 million Yuan, 402,998,300 Yuan will reckon into registered capital while |
97,001,700 Yuan reckon into capital reserves.
2019-9-102019-9-27
(No.: 2019-060, No.: 2019-
061, No.: |
2019-063 and No.: 2019-067)
Meiling agreed to implemented the initial of
fering of shares for year of 2019. The issuing target will subscribes in cash. It is agreed that the Company waives the rights of preferential subscription under the same conditions for the |
issuance of shares.
2019-9-10
Juchao Website: http://www.cninfo.c
(No.: 2019-060, No.: 2019-062)
om.cn | ||
Being approved by resolution of the Board, it is agreed to withdrawal parts of |
the investment pre-
issued by Soochow Securities in advance, that is, principal 50
million Yuan and investment income approximately as 1,501,300 Yuan for holding the principal (about more than 4 months) are collected in advance for routine |
operation of the Company
2019-9-10
(No.: 2019-060)
III. Commitments that the company, shareholders, actual controller, offeror, directors,
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)supervisors, senior management or other related parties have fulfilled during the reportingperiod and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, seniormanagement or other related parties have fulfilled during the reporting period and have not yet fulfilled by the endof reporting period.IV. Forecast of operation performance of 2019Estimation on accumulative net profit from the beginning of the year to the end of next report period to be lossprobably or the warning of its material change compared with the corresponding period of the last year andexplanation on reason
□ Applicable √ Not applicable
V. Securities Investment
□ Applicable √ Not applicable
No security investment in Period.VI. Trust financing
√ Applicable □Not applicable
In 10 thousand YuanType Capital resources Amount for entrust Balance un-expired Overdue amountBank financing product
Idle raised funds 90,400
51,700
Own funds 30,000
30,000
Financial products of the |
broker
Own funds 20,000
10,000
Total 140,400
91,700
Details of the single major amount, or high-risk trust investment with low security, poor fluidity andnon-guaranteed:
√ Applicable □Not applicable
In 10 thousand Yuan
Trusteeinstitution rname
Trustee
type
Type Amount
Sour
fund
sStartdate
End date
ce of |
Capital investment purpose
Criteria
forfixingreward
Refere
nce
annual rate of |
return
Anticipatedincome (ifapplicable)
Actualgains/losses in period
Actualcollectedgains/losses in period
Amount
ofreserve
fordevaluat
ion ofwithdra
wing
(ifapplicab
le)
Wheth
erapproved bylegalproced
ure(Y/N)
Whether |
hasentrustfinanceplan inthefuture
Summary of the items
and related query index |
(if applicable)
SOOCHOWSecuritiesCo., Ltd.
Broker
Assetsmanage
mentplan
20,000
5,000
Self-
funds2018-4
-12
own | Collected | |
in
advance | Investment for the second phase debt financing plan for year of |
2018 that issued on CFAE
Holding Co., Ltd.
Expiryliquidation
8.28%
under the name of Jinshiqi International |
3,345.61 1,756.64
1,756.64
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2018-014, No.:
2018-015 , No.:
2019-025 and No.:
2019-060)5,000
Collected |
in
10,000
advance | ||
2021-4-1
ChengduBranch ofChina BohaiBank
Bank
income
type
48,000
Floating |
Idle
fund
s2018-1
2-212019-6-1
raise | Structured deposit products, the structured derivatives link up with |
3M Libor
4.20%
annualyield
4.20%
944.48
944.48
944.48
N/A Y
Notapplicable
Juchao Website
(www.cninfo.com.cn)
(No.: 2018-078)
Hefei Branch of SPD Bank |
Bank
Break-e
ven &incomeprotectio
n
23,000
Idle
raise |
fund
s
2018-1
2-26
2019-1-3
in bank market, treasury bond,corporate bonds, short-termfinancing, medium-term bills,inter-bank borrowing, inter-bank
3.95%
annual
yield
3.95%
Investment of the central bank bill |
87.12
85.80
85.80
N/A Y
Notapplicable
Juchao Website
(www.cninfo.com.cn)
(No.: 2018-080)
etc.
deposits, bills or bill repurchase | ||
Hefei Branch |
of CGB
Bank
incometype
10,000
Floating |
Idle
fund
s
2018-12-272019-1-2
raise | The principal of funds raised by this structured deposit is included in the unified operations management of the funds of China |
Guangfa Bank. The pro
inter-bank lending, buy-
back, etc.) ranges from 20% to 100%, and the proportion of bonds (including but not limited to national debt, |
central bank bills, financi
short-
term financing bonds, |
enterprise bonds, medium-
dollar against the
Hong Kong |
dollar.
3.90%
annualyield
3.90%
34.19
34.19
34.19
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2018-080)
MianyangBranch ofChinaEverbrightBank
Bank
Break-e
ven &incomeprotectio
n
10,000
Idle
fund
s2018-1
2-28
2019-1-2
raise | The product is mainly composed |
of risk-
3.75%
annualyield
3.75%
free assets investment and option trading. The product principal is invested in bank fixed time deposits, and the corresponding application of |
31.85
31.25
31.25
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2018-081)
to the bank
’s comprehensive |
liability cost.
AnhuiBranch ofBank ofCommunication Co., Ltd.
Bank
Floating |
incometype
22,400
Idle
raise |
funds2019-1
-312019-5-2
Takes the money collect by structured deposit sales as notional principal, and conducted investment income and financial derivatives with the benchmark comparison value of 3Mshibor linked with the counter party by |
using the cost of above mention
principal
4.25%
annualyield
4.25%
ed |
237.35
242.57
242.57
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-009)
Bank
Break-e
ven &incomeprotectio
n
10,000
Hefei Branch of SPD Bank |
Idle
fund
s2019-1
-30
2019-5-2
raise | Investment of the central bank bill |
in bank market, treasury bond,corporate bonds, short-termfinancing, medium-term bills,inter-bank borrowing, inter-bankdeposits, bills or bill repurchaseetc.
4.20%
annualyield
4.20%
105.86
110.83
110.83
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-009)
Hefei Branch |
of CGB
Bank
income
type
10,000
Floating |
Idle
fund
s2019-1
-30
2019-5-2
raise | The principal of funds raised by this structured deposit is included in the unified operations |
management of the funds of
4.25%
annual
yield
4.25%
China Guangfa Bank. The proportion of investment in money market |
107.12
107.12
107.12
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-009)
inter-bank lending, buy-
back, etc.) ranges from 20% to 100%, and the proportion of bonds (including but not limited to national debt, central bank bills, financial bonds, |
short-
enterprise bonds, medium-
term notes, corporate bonds) and other financial assets ranges from 0% to 80%, and the income is invested in the financial derivatives linking |
to the exchange rate of
dollar.AnhuiBranch ofBank ofCommunication Co., Ltd.
the US dollar against the Hong Kong | ||
Bank
income
type
17,000
Floating |
Idlerais
fund
s
2019-5
-17
2019-7-1
Structured deposit products, the
e | structured derivatives link up with |
3M Libor
4.10%
annualyield
4.10%
114.58
114.58
114.58
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-033)
ChengduBranch ofIndustrialBank Co.,Ltd.
Bank
Floating |
income
type
20,000
Idle
raise |
fund
s2019-5
-17
2019-8-1
The corporate financial structural
deposit under the Industrial Bank,
its annual fixed income rate is
2.01%, the floating earnings are
linked to the fluctuation of
Shanghai Jingshangwu
3.80%
annualyield
3.80%
195.73
195.73
195.73
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-034)
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)benchmark price of the ShanghaiGold ExchangeChengduBranch ofChina BohaiBank
Bank
incometype
20,000
Floating |
Idlerais
fund
s
2019-6-20
2019-7-2
e | Structured deposit products, the structured derivatives link up with |
3M Libor
3.55%
annualyield
3.55%
62.25
62.25
62.25
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-038)ChengduBranch ofChina BohaiBank
Bank
Floating |
incometype
26,000
Idle
raise |
fund
s
2019-6
-20
2019-12-
3M Libor
3.85%
annualyield
3.85%
Structured deposit products, the structured derivatives link up with |
496.38
-
-
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-038)Huining
of HefeiScience &TechnologyRuralCommercialBank Co.,Ltd.
Bank
Road Branch | Floating |
income
type
5,000
Idle
raise |
funds2019-7
-172019-9-1
Structured deposit products, the
futures: au1912
3.80%
annualyield
3.80%
contract code for investing in gold |
32.27
32.27
32.27
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-046)
Hefei Branch
of ShanghaiPudongDevelopment Bank Co.,Ltd.
Bank
Floating |
incometype
5,000
Idle
raise |
funds2019-7
-182019-9-2
Structured deposit products,mainly invested in inter-bankcentral bills, treasury bonds,corporate bonds, short-termfinancing, medium-term bills,inter-bank lending, inter-bank
3.80%
annual
yield
3.80%
35.39
34.83
34.83
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-046)
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)deposits, bonds or bill repurchaseetc., and option products withlinked interest rate.
of Hua XiaBank Co.,Ltd.
Bank
Hefei Branch | Floating |
incometype
7,000
Idle
raise |
fund
s
2019-7-192019-9-1
Structured deposit products, all orpart of the interest on deposits islinked to the gold futures price
3.90%
annualyield
3.90%
46.37
46.37
46.37
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-046)
ChengduBranch ofIndustrialBank Co.,Ltd.
Bank
Floating |
income
type
8,700
Idle
raise |
fund
s
2019-8
-23
2019-11-
Structured deposit products, thestructural deposit refers to abusiness products that enables the
on basis of assuming certain risksby linking with fluctuations ininterest rates, exchange rates,indices or with the credit situationof an entity.
3.80%
annualyield
3.80%
depositors to obtain higher returns |
85.14
-
-
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-054)
ChengduWuyangDadaoBranch ofCITIC BankCo., Ltd.
Bank
income
type
30,000
Floating |
Self-
fund
s
2019-8
-26
2019-11-
Structured deposit products,invest through structured interestrate swaps
3.90%
annualyield
3.90%
own |
291.69
-
-
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-056)ChengduBank
12,000
Floating |
Idle 2019-92019-12-
3.95%
3.95%
Structured deposit products, the |
118.75
-
-
N/A Y
Not Juchao Website
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Branch ofChina BohaiBank
incometype
fund
s-23 23
raise | structured derivatives link up with |
3M Libor
annualyield
applicable
(www.cninfo.com.cn)(No.: 2019-065)ChengduBranch ofChina BohaiBank
Bank
incometype
5,000
Floating |
Idle
fund
s
2019-9
-26
2019-12-
raise | Structured deposit products, the structured derivatives link up with |
3M Libor
3.95%
annualyield
3.95%
47.61
-
-
N/A Y
Notapplicable
Juchao Website(www.cninfo.com.cn)(No.: 2019-066)Total309,100
-- -- -- -- -- -- 6,419.74
3,798.91
-- --
-- -- --
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
VII. Particulars about derivatives investment
√ Applicable □Not applicable
In 10 thousand Yuan
Operator
Relatedrelationsh
ip
Whether |
relatedtrade or
not
Type
Initial
Start date
investment |
End date
Investmentamount atperiod-begin
Amountpurchasedduring thereporting
period
Amount sold
during thereporting
period
for devaluation ofwithdrawing (if
applicable)
Investmentamount atperiod-end
Ratio ofinvestmentamount atperiod-end innet assets of the
Company atperiod-end
Actualgains/losses
in period
Financialinstitutions
N/A No
Forwardforeignexchangecontract
200,656.30
Amount of reserve | ||
2017-9-29 2020-5-26 149,739.86
168,156.14
194,857.95
--
130,709.04
25.49%
-7,671.00
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total 200,656.30
-- -- 149,739.86
168,156.14
194,857.95
--
130,709.04
25.49%
-7,671.00
Capital resource Self-owned capitalLawsuits (if applicable) Not applicableDisclosure date for approval from theBoard for investment of derivatives (ifapplicable)
2019-3-29Disclosure date for approval from boardof shareholders for investment ofderivatives (if applicable)
2019-5-22
Venture analysis and explanation oncontrol measures for derivatives holdingin Period (including but not limited tomarket risk, liquidity risk, credit risks,operational risk and legal risk etc.)
1. Market risk: the changes in domestic and foreign economic situation may create a major volatility in exchange rate, future exchange bus
certain market risks. Forward exchange transaction business of the Company aims at lock-up the price in sale and purcha
se of foreign exchange, and |
lowers the impact on profit from exchange fluctuations. The Company will closely following the changes in exchange rate, base
by business, with the research and judgment in aspect of the trend in foreign
exchange rate, determine the signature planning of agreement for forward |
exchange transaction combine with prediction on receipt and payment as well as the tolerance capacity of changing price arisi
implement dynamic management on the business to guarantee a reasonable profit standards for the Company.
2. Liquidity risk: all of the foreign exchange funds trading are depend on reasonably estimated of the import-
export business in future, satisfy the |
requirement of trading truth. In
Company.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the ori
ginal foreign exchange |
contracts with contract price, which leads the risk of income uncertainty. So the Company chose the five major state-owned banks, joint –
funded banks as Everbright and Industrial Bank, as well as the foreign funded bank
s as UOB, Overseas Chinese Bank and Bank of East Asia to conduct |
the trading of foreign exchange capital. These banks share a solid strength and management whose failure and the risk of loss
is very low.
4. Operational risk: the money trading in forward exchange might causes relevant risks due to the incorrect operations by handling personnel, relevant
management mechanism has formulated by the Company, well-defined the operation procedure and duty officer in favor of preventing r
control.
5. Legal risk: legal disputes may arise from the un-clear trading agreement signed between the Company and banks in aspect of money trading in
forward exchange. The Company strengthens the review on relevant contracts in way of law, and chooses banks for cooperation with good credit status
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)in order to control the risk.Particular about the changes of marketprice or product’s fair value of investedderivatives in Period; as for analysis ofthe fair value of derivatives, disclosedspecific treatment methods and relevanthypothesis and parameter setting
In accordance with the Article 7 “Recognition of Fair Value” of “The Accounting Standards for Enterprises No. 22—Recognition and Measurement ofFinancial Instruments”, the Company determined and measure the fair value basically in line with the price provided or obtained from pricing servicessuch as banks. As for the calculation of fair value for derivatives, it mainly refers to the un-matured contract of forward exchange facilities that signedwith the banks in reporting period, and recognized as tradable financial assets or liabilities based on the difference of forward exchange facilities’contract quotation at period-end and forward rate. In the reporting period, the gains/losses of forward foreign exchange contract amounting to-7,671,000,000 Yuan
principle of accounting policy andaccounting calculation for derivatives inPeriod, by comparing with last period
Not applicable
Specific opinions from independentdirects on derivative investment and riskcontrolling
Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out
Explanation on major changes on specific | |
its foreign exchange |
forward deals in strict compliance
Exchange, the Articles of Association, Authorization Management of the Company, Management System in relating to Foreign Exchange Forward De
als |
of Changhong Meiling Co., Ltd., and these deals were conducted within the authorization scope under general meeting and board meeting.
Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward forei
gn exchange transactions are operates |
based on normal operating and production, which is relying on specific business operations with purpose of avoiding the preve
exchange rate. The forward foreign exchange transactions of the Company are
beneficial to prevent the exchange risks exposed by import and export |
business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rul
relevant business was conducted under corresponding decision-
making procedures. Interests of the Company and entire shareholders, especially |
minority shareholders, were not prejudiced.
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)VIII. Registration form for receiving research, communication and interview in the reportperiod
√ Applicable □Not applicable
Time Way Type Basic situation index of investigation2019-2-26 Field research Institute
http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stockCode=000521#2019-7-2 Field research Institute
http://www.cninfo.com.cn/new/disclosure/stock?orgId=gssz0000521&stockCode=000521#IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company had no guarantee outside against the regulation in the reporting period.X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party.
Section IV. Financial StatementI. Financial statement
1. Consolidate balance sheet
Prepared by Changhong Meiling Co., Ltd.
In RMBItem 2019-9-30 2018-12-31Current assets:
Monetary funds 4,075,740,120.45
4,596,077,557.40
Settlement provisions
Capital lent
Tradable financial assets 18,609,751.92
Financial assets measured by fair valueand with variation reckoned into currentgains/losses
9,253,635.59
Derivative financial assets
Note receivable 2,024,194,132.60
2,387,830,887.74
Account receivable 2,206,388,200.30
1,670,988,644.76
Receivable financing
Accounts paid in advance 55,225,984.20
86,180,459.26
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 130,723,288.12
62,129,574.17
Including: Interest receivable 7,207,229.14
2,653,712.36
Dividend receivable
Buying back the sale of financial assets
Inventories 1,724,779,445.29
2,174,436,573.67
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 993,583,134.61
1,184,686,956.96
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total current assets 11,229,244,057.49
12,171,584,289.55
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales
45,000,000.00
Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 67,054,112.07
61,869,440.55
Investment in other equity instrument
Other non-current financial assets 45,000,000.00
Investment real estate 97,231,072.87
46,846,507.41
Fixed assets 2,030,130,808.74
1,733,957,012.14
Construction in progress 343,617,526.44
464,558,352.60
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 829,624,319.88
817,579,958.94
Expense on Research and Development 82,477,256.77
108,210,966.60
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 93,366,126.12
112,203,656.75
Other non-current asset
Total non-current asset 3,588,501,222.89
3,390,225,894.99
Total assets 14,817,745,280.38
15,561,810,184.54
Current liabilities:
Short-term loans 1,684,437,250.66
2,336,373,929.62
Loan from central bank
Capital borrowed
Tradable financial liability 18,131,337.32
Financial liability measured by fair valueand with variation reckoned into currentgains/losses
55,586,666.70
Derivative financial liability
Note payable 3,739,952,714.58
3,727,754,399.60
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Account payable 2,297,568,758.71
2,282,174,981.38
Accounts received in advance 240,271,809.66
354,551,354.80
Contractual liability
Selling financial asset of repurchase
Absorbing deposit and inter-bank deposit
Security trading of agency
Security sales of agency
Wage payable 140,009,283.08
163,638,627.79
Taxes payable 65,314,443.39
109,753,432.17
Other account payable 788,933,166.42
660,320,360.26
Including: Interest payable 24,590,642.71
7,519,756.26
Dividend payable 3,579,491.94
17,317,286.45
Commission charge and commissionpayable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 300,000.00
273,682,737.85
Other current liabilities
Total current liabilities 8,974,918,763.82
9,963,836,490.17
Non-current liabilities:
Insurance contract reserve
Long-term loans 301,280,000.00
1,920,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 5,362,034.17
5,017,208.00
Long-term wages payable 14,353,019.26
19,073,101.29
Accrual liability 209,105,962.59
273,063,677.21
Deferred income 178,674,326.23
160,250,963.60
Deferred income tax liabilities 5,996,351.53
3,098,699.11
Other non-current liabilities
Total non-current liabilities 714,771,693.78
462,423,649.21
Total liabilities 9,689,690,457.60
10,426,260,139.38
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Owner’s equity:
Share capital 1,044,597,881.00
1,044,597,881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,684,369,598.46
2,684,369,598.46
Less: Inventory shares
Other comprehensive income -19,943,038.08
-18,143,569.26
Reasonable reserve
Surplus public reserve 399,650,743.38
400,673,993.50
Provision of general risk
Retained profit 919,574,400.51
904,232,582.87
Total owner’ s equity attributable to parentcompany
5,028,249,585.27
5,015,730,486.57
Minority interests 99,805,237.51
119,819,558.59
Total owner’ s equity 5,128,054,822.78
5,135,550,045.16
Total liabilities and owner’ s equity 14,817,745,280.38
15,561,810,184.54
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 RMBItem 2019-9-30 2018-12-31Current assets:
Monetary funds 2,533,546,477.86
2,897,004,041.87
Tradable financial assets 18,609,751.92
Financial assets measured by fair valueand with variation reckoned into currentgains/losses
9,253,635.59
Derivative financial assets
Note receivable 1,859,464,078.52
2,433,243,946.64
Account receivable 1,591,344,853.71
1,050,282,023.37
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Receivable financing
Accounts paid in advance 70,902,531.74
58,710,427.38
Other account receivable 120,202,355.79
182,744,033.52
Including: Interest receivable 4,375,967.13
2,653,712.36
Dividend receivable
Inventories 508,513,344.71
911,130,106.30
Contractual assets
Assets held for sale
Non-current assets maturing within oneyear
Other current assets 932,869,684.42
1,113,987,528.70
Total current assets 7,635,453,078.67
8,656,355,743.37
Non-current assets:
Debt investment
Available-for-sale financial assets
45,000,000.00
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 1,673,298,342.35
1,731,109,903.70
Investment in other equity instrument
Other non-current financial assets 45,000,000.00
Investment real estate 7,401,135.77
7,618,550.16
Fixed assets 1,107,406,361.27
1,082,915,540.08
Construction in progress 119,090,090.55
125,064,106.10
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 490,249,642.28
462,425,105.64
Research and development costs 50,073,095.15
57,383,653.72
Goodwill
Long-term deferred expenses
Deferred income tax assets 69,879,472.55
78,357,299.17
Other non-current assets
Total non-current assets 3,562,398,139.92
3,589,874,158.57
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total assets 11,197,851,218.59
12,246,229,901.94
Current liabilities:
Short-term borrowings 1,490,939,946.14
1,911,719,726.13
Tradable financial liability 15,587,041.20
Financial liability measured by fair valueand with variation reckoned into currentgains/losses
19,893,875.00
Derivative financial liability
Notes payable 1,914,046,194.51
2,001,442,110.63
Account payable1,463,334,535.04
2,011,821,519.82
Accounts received in advance 136,130,911.42
105,815,140.88
Contractual liability
Wage payable 10,403,330.27
31,271,182.48
Taxes payable 15,279,477.06
21,992,129.58
Other accounts payable 405,280,969.94
427,293,961.56
Including: Interest payable 21,406,060.48
5,801,215.14
Dividend payable 3,579,491.94
17,317,286.45
Liability held for sale
Non-current liabilities due within one year 300,000.00
258,588,504.48
Other current liabilities
Total current liabilities 5,451,302,405.58
6,789,838,150.56
Non-current liabilities:
Long-term loans 301,280,000.00
1,920,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensationpayable
14,353,019.26
19,073,101.29
Accrued liabilities 201,749,137.83
266,641,323.73
Deferred income 65,485,095.39
53,118,676.50
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 582,867,252.48
340,753,101.52
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Total liabilities 6,034,169,658.06
7,130,591,252.08
Owners’ equity:
Share capital 1,044,597,881.00
1,044,597,881.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 2,753,017,007.10
2,753,017,007.10
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 399,432,577.70
400,455,827.82
Retained profit 966,634,094.73
917,567,933.94
Total owner’s equity 5,163,681,560.53
5,115,638,649.86
Total liabilities and owner’s equity 11,197,851,218.59
12,246,229,901.94
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
3. Consolidated Profit Statement (the period)
In RMBItem Current Period Last PeriodI. Total operating income 3,907,875,881.65
3,977,110,177.70
Including: Operating income 3,907,875,881.65
3,977,110,177.70
Interest income
Insurance gained
Commission charge and commissionincome
II. Total operating cost 3,877,092,843.63
3,959,824,308.46
Including: Operating cost 3,120,899,900.24
3,205,017,999.93
Interest expense
Commission charge and commissionexpense
Cash surrender value
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Net amount of expense of compensation
Net amount of withdrawal of insurance contractreserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 37,337,949.44
37,835,191.90
Sales expense 596,324,632.05
597,903,240.88
Administrative expense 75,991,835.54
79,376,133.44
R&D expense 74,045,366.13
59,438,945.43
Financial expense -27,506,839.77
-19,747,203.12
Including: Interest expenses 15,687,265.39
9,955,079.26
Interest income 38,289,853.37
24,694,760.73
Add: other income 44,877,387.39
19,485,556.40
Investment income (Loss is listed with “-”) -49,991,079.10
5,976,620.29
Including: Investment income on affiliatedcompany and joint venture
10,073,856.02
3,618,239.73
The termination of income recognitionfor financial assets measured by amortized cost(Loss islisted with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listedwith “-”)
Income from change of fair value (Loss islisted with “-”)
39,820,680.29
-7,042,861.74
Loss of credit impairment (Loss is listed with“-”)
-8,463,027.84
Losses of devaluation of asset (Loss is listedwith “-”)
-14,086,299.07
-9,548,787.87
Income from assets disposal (Loss is listedwith “-”)
-3,498,765.23
192,920.94
III. Operating profit (Loss is listed with “-”) 39,441,934.46
26,349,317.26
Add: Non-operating income 3,218,452.87
1,361,065.01
Less: Non-operating expense 1,413,579.86
19,458.62
IV. Total profit (Loss is listed with “-”) 41,246,807.47
27,690,923.65
Less: Income tax expense 18,695,794.99
14,864,849.63
V. Net profit (Net loss is listed with “-”) 22,551,012.48
12,826,074.02
(i) Classify by business continuity
1.continuous operating net profit (net loss listed
with ‘-”)
22,551,012.48
12,826,074.02
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent
company
26,417,996.84
14,954,274.39
2.Minority shareholders’ gains and losses -3,866,984.36
-2,128,200.37
VI. Net after-tax of other comprehensive income 3,855,002.26
2,472,400.15
Net after-tax of other comprehensive incomeattributable to owners of parent company
2,611,878.24
1,782,853.09
(I) Other comprehensive income items which willnot 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 whichwill be reclassified subsequently to profit or loss
2,611,878.24
1,782,853.09
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-
that re-classify to available-for-sale financial asset
maturity investments |
6.Credit impairment provision for other
debt investment
7.Cash flow hedging reserve
8.Translation differences arising on
translation of foreign currency financial statements
2,611,878.24
1,782,853.09
9.Other
Net after-tax of other comprehensive incomeattributable to minority shareholders
1,243,124.02
689,547.06
VII. Total comprehensive income 26,406,014.74
15,298,474.17
Total comprehensive income attributable to owners |
of parent Company
29,029,875.08
16,737,127.48
Total comprehensive income attributable tominority shareholders
-2,623,860.34
-1,438,653.31
VIII. Earnings per share:
(i) Basic earnings per share 0.0253
0.0143
(ii) Diluted earnings per share 0.0253
0.0143
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
4. Profit Statement of Parent Company (the period)
In RMBItem Current Period Last PeriodI. Operating income 2,664,004,704.29
2,490,700,722.60
Less: Operating cost 2,406,427,108.32
2,148,535,254.62
Taxes and surcharge 21,743,329.48
14,469,596.73
Sales expenses 138,981,640.75
201,139,184.30
Administration expenses 32,418,153.86
36,055,056.31
R&D expenses 29,405,298.29
23,407,166.72
Financial expenses -6,393,797.98
-3,565,651.74
Including: interest expenses 11,934,462.19
13,724,471.67
Interest income 28,622,977.37
16,389,944.68
Add: other income 38,236,515.77
13,689,025.64
Investment income (Loss is listed with “-”) -3,964,727.76
19,003,123.97
Including: Investment income on affiliatedCompany and joint venture
5,794,277.12
1,686,779.58
The termination of income recognition
listed with “-”)Net exposure hedging income (Loss is listedwith “-”)
for financial assets measured by amortized cost (Loss is | ||
Changing income of fair value (Loss is listedwith “-”)
6,592,242.68
-11,287,554.36
Loss of credit impairment (Loss is listed with“-”)
-2,371,132.58
Losses of devaluation of asset (Loss is listedwith “-”)
-3,585,011.06
-10,616,799.13
Income on disposal of assets (Loss is listedwith “-”)
132,203.39
-3,617.48
II. Operating profit (Loss is listed with “-”) 76,463,062.01
81,444,294.30
Add: Non-operating income 23,930.00
128,162.00
Less: Non-operating expense 248,133.83
III. Total Profit (Loss is listed with “-”) 76,238,858.18
81,572,456.30
Less: Income tax 7,419,865.03
10,250,540.26
IV. Net profit (Net loss is listed with “-”) 68,818,993.15
71,321,916.04
(i)continuous operating net profit (net loss listedwith ‘-”)
68,818,993.15
71,321,916.04
(ii) termination of net profit (net loss listed with‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which willnot 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 whichwill 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.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-
that re-classify to available-for-sale financial asset
maturity investments |
6.Credit impairment provision for other
debt investment
7.Cash flow hedging reserve
8.Translation differences arising on
translation of foreign currency financial statements
9.Other
VI. Total comprehensive income 68,818,993.15
71,321,916.04
VII. Earnings per share:
(i) Basic earnings per share 0.0659
0.0683
(ii) Diluted earnings per share 0.0659
0.0683
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMBItem Current Period Last PeriodI. Total operating income 13,041,038,562.59
13,248,619,747.37
Including: Operating income 13,041,038,562.59
13,248,619,747.37
Interest income
Insurance gained
Commission charge and commissionincome
II. Total operating cost 12,994,783,658.83
13,201,080,887.97
Including: Operating cost 10,611,455,437.49
10,963,171,561.02
Interest expense
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Commission charge and commissionexpense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance contractreserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 117,977,709.18
102,882,052.60
Sales expense 1,840,716,388.92
1,787,644,342.20
Administrative expense 240,384,878.24
228,370,924.33
R&D expense 194,093,406.99
152,219,238.87
Financial expense -9,844,161.99
-33,207,231.05
Including: Interest expenses 73,580,264.70
70,110,789.68
Interest income 97,691,279.74
88,992,292.78
Add: other income 80,188,595.99
68,046,614.02
Investment income (Loss is listed with “-”) -38,327,115.65
20,726,039.38
Including: Investment income on affiliatedcompany and joint venture
1,251,855.70
-12,056,138.08
The termination of income recognitionfor financial assets measured by amortized cost(Loss islisted with “-”)
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is listedwith “-”)
Income from change of fair value (Loss islisted with “-”)
43,185,470.53
-25,833,772.85
Loss of credit impairment (Loss is listed with“-”)
1,082,468.11
Losses of devaluation of asset (Loss is listedwith “-”)
-24,702,231.08
-28,486,908.52
Income from assets disposal (Loss is listedwith “-”)
-4,436,536.97
3,476,687.51
III. Operating profit (Loss is listed with “-”) 103,245,554.69
85,467,518.94
Add: Non-operating income 5,694,649.89
5,443,167.59
Less: Non-operating expense 3,776,106.23
60,249.87
IV. Total profit (Loss is listed with “-”) 105,164,098.35
90,850,436.66
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text) Less: Income tax expense 36,397,055.33
25,015,797.92
V. Net profit (Net loss is listed with “-”) 68,767,043.02
65,834,638.74
(i) Classify by business continuity
1.continuous operating net profit (net loss listed
with ‘-”)
68,767,043.02
65,834,638.74
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent
company
80,752,019.41
65,638,506.12
2.Minority shareholders’ gains and losses -11,984,976.39
196,132.62
VI. Net after-tax of other comprehensive income -3,102,378.92
-6,466,960.36
Net after-tax of other comprehensive incomeattributable to owners of parent company
-1,799,468.82
-5,210,496.62
(I) Other comprehensive income items which willnot 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 whichwill be reclassified subsequently to profit or loss
-1,799,468.82
-5,210,496.62
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
3.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-ma
that re-classify to available-for-sale financial asset
turity investments |
6.Credit impairment provision for other
debt investment
7.Cash flow hedging reserve
8.Translation differences arising on
translation of foreign currency financial statements
-1,799,468.82
-5,210,496.62
9.Other
Net after-tax of other comprehensive incomeattributable to minority shareholders
-1,302,910.10
-1,256,463.74
VII. Total comprehensive income 65,664,664.10
59,367,678.38
Total comprehensive
of parent Company
78,952,550.59
income attributable to owners |
60,428,009.50
Total comprehensive income attributable tominority shareholders
-13,287,886.49
-1,060,331.12
VIII. Earnings per share:
(i) Basic earnings per share 0.0773
0.0628
(ii) Diluted earnings per share 0.0773
0.0628
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last periodLegal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMBItem Current Period Last PeriodI. Operating income 7,198,760,931.63
6,883,945,824.65
Less: Operating cost 6,438,821,213.52
6,102,437,941.57
Taxes and surcharge 59,372,381.91
44,193,309.99
Sales expenses 477,587,775.78
501,143,891.03
Administration expenses 100,853,326.37
94,252,573.07
R&D expenses 80,879,626.58
69,052,600.75
Financial expenses 2,111,585.97
9,606,238.12
Including: interest expenses 54,418,469.14
55,250,636.77
Interest income 68,936,401.63
57,329,240.66
Add: other income 56,735,800.59
49,742,843.47
Investment income (Loss is listed with “-”) 20,154,143.04
42,953,713.52
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Including: Investment income on affiliatedCompany and joint venture
2,961,957.42
3,776,002.08
The termination of income recognitionfor financial assets measured by am
listed with “-”)
ortized cost (Loss is |
Net exposure hedging income (Loss is listedwith “-”)
Changing income of fair value (Loss is listedwith “-”)
10,027,189.27
-14,687,912.73
Loss of credit impairment (Loss is listed with“-”)
10,417,545.43
Losses of devaluation of asset (Loss is listedwith “-”)
-6,377,866.03
-14,834,202.44
Income on disposal of assets (Loss is listedwith “-”)
-659,108.67
-880,921.32
II. Operating profit (Loss is listed with “-”) 129,432,725.13
125,552,790.62
Add: Non-operating income 244,520.00
3,874,754.46
Less: Non-operating expense 248,133.83
III. Total Profit (Loss is listed with “-”) 129,429,111.30
129,427,545.08
Less: Income tax 8,477,826.62
7,816,660.55
IV. Net profit (Net loss is listed with “-”) 120,951,284.68
121,610,884.53
(i)continuous operating net profit (net loss listedwith ‘-”)
120,951,284.68
121,610,884.53
(ii) termination of net profit (net loss listed with‘-”)
V. Net after-tax of other comprehensive income
(I) Other comprehensive income items which willnot 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
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)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.gain/loss of fair value changes for
available-for-sale financial assets
4.Amount of financial assets re-classify to
other comprehensive income
5.Gain/loss of held-to-
that re-classify to available-for-sale financial asset
maturity investments |
6.Credit impairment provision for other
debt investment
7.Cash flow hedging reserve
8.Translation differences arising on
translation of foreign currency financial statements
9.Other
VI. Total comprehensive income 120,951,284.68
121,610,884.53
VII. Earnings per share:
(i) Basic earnings per share 0.1158
0.1164
(ii) Diluted earnings per share 0.1158
0.1164
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang HaitaoPerson in charge of accounting institute: Yang Jun
7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMBItem Current Period Last PeriodI. Cash flows arising from operating activities:
Cash received from selling commodities andproviding labor services
12,688,809,148.13
12,294,447,275.35
Net increase of customer deposit and inter-bankdeposit
Net increase of loan from central bank
Net increase of capital borrowed from other
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)financial institutionCash received from original insurance contract fee
Net cash received from reinsurance business
Net increase of insured savings and investment
Cash received from interest, commission chargeand commission
Net increase of capital borrowed
Net increase of returned business capital
Net cash received by agents in sale and purchaseof securities
Write-back of tax received 280,384,080.90
455,080,647.00
Other cash received concerning operating activities
125,280,221.18
234,806,474.37
Subtotal of cash inflow arising from operating activities
13,094,473,450.21
12,984,334,396.72
Cash paid for purchasing commodities andreceiving labor service
10,506,147,051.44
10,544,503,046.16
Net increase of customer loans and advances
Net increase of deposits in central bank andinter-bank
Cash paid for original insurance contractcompensation
Net increase of capital lent
Cash paid for interest, commission charge andcommission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 1,153,887,410.73
1,233,337,030.56
Taxes paid 448,423,347.16
297,025,746.90
Other cash paid concerning operating activities 784,789,548.98
668,241,202.55
Subtotal of cash outflow arising from operatingactivities
12,893,247,358.31
12,743,107,026.17
Net cash flows arising from operating activities 201,226,091.90
241,227,370.55
II. Cash flows arising from investing activities:
Cash received from recovering investment 2,174,000,000.00
1,900,000,000.00
Cash received from investment income 37,989,139.50
39,313,892.16
Net cash received from disposal of fixed,intangible and other long-term assets
19,483,459.24
17,944,967.00
Net cash received from disposal of subsidiaries
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)and other units Other cash received concerning investing activities
94,129,473.53
95,944,328.41
Subtotal of cash inflow from investing activities 2,325,602,072.27
2,053,203,187.57
Cash paid for purchasing fixed, intangible andother long-term assets
266,302,834.52
436,847,276.96
Cash paid for investment 1,981,000,000.00
3,020,000,001.00
Net increase of mortgaged loans
Net cash received from subsi
obtained
diaries and other units |
Other cash paid concerning investing activities 76,709,995.61
255,500.00
Subtotal of cash outflow from investing activities 2,324,012,830.13
3,457,102,777.96
Net cash flows arising from investing activities 1,589,242.14
-1,403,899,590.39
III. Cash flows arising from financing activitiesCash received from absorbing investment
24,865,000.00
Including: Cash received from absorbingminority shareholders’ investment by subsidiaries
24,865,000.00
Cash received from loans 1,308,256,908.10
2,021,566,261.86
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 1,308,256,908.10
2,046,431,261.86
Cash paid for settling debts 1,925,202,449.42
2,133,854,035.14
Cash paid for dividend and profit distributing orinterest paying
127,772,072.70
109,269,826.49
Including: Dividend and profit of minorityshareholder paid by subsidiaries
2,274,030.00
Other cash paid concerning financing activities 32,764,857.16
2,050,458.19
Subtotal of cash outflow from financing activities 2,085,739,379.28
2,245,174,319.82
Net cash flows arising from financing activities -777,482,471.18
-198,743,057.96
IV. Influence on cash and cash equivalents due tofluctuation in exchange rate
12,976,331.25
3,791,101.79
V. Net increase of cash and cash equivalents -561,690,805.89
-1,357,624,176.01
Add: Balance of cash and cash equivalents at theperiod -begin
4,484,643,187.93
5,089,765,770.39
VI. Balance of cash and cash equivalents at the period-end
3,922,952,382.04
3,732,141,594.38
Legal Representative: Wu DinggangPerson in charge of accounting works: Pang Haitao
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Person in charge of accounting institute: Yang Jun
8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMBItem Current Period Last PeriodI. Cash flows arising from operating activities:
Cash received from selling commodities andproviding labor services
6,358,153,483.13
5,886,537,353.55
Write-back of tax received 135,160,922.67
214,262,771.43
Other cash received concerning operating activities
66,198,821.85
51,985,080.37
Subtotal of cash inflow arising from operating activities
6,559,513,227.65
6,152,785,205.35
Cash paid for purchasing commodities andreceiving labor service
5,874,686,994.43
5,200,208,904.42
Cash paid to/for staff and workers 327,130,629.38
382,116,598.39
Taxes paid 156,564,790.86
59,998,461.89
Other cash paid concerning operating activities 330,317,153.84
280,528,778.03
Subtotal of cash outflow arising from operatingactivities
6,688,699,568.51
5,922,852,742.73
Net cash flows arising from operating activities -129,186,340.86
229,932,462.62
II. Cash flows arising from investing activities:
Cash received from recovering investment 2,174,000,000.00
1,860,000,000.00
Cash received from investment income 42,579,139.50
41,935,522.31
Net cash received from disposal of fixed,intangible and other long-term assets
6,708,283.94
220,903.00
Net cash received from disposal of subsidiariesand other units
Other cash received concerning investing activities
309,067,175.10
89,093,823.56
Subtotal of cash inflow from investing activities 2,532,354,598.54
1,991,250,248.87
Cash paid for purchasing fixed, intangible andother long-term assets
139,125,420.63
144,003,295.22
Cash paid for investment 1,987,000,000.00
3,030,704,000.00
Net cash received from subsidiaries and other units |
obtained
Other cash paid concerning investing activities 75,426,953.88
30,000,000.00
Subtotal of cash outflow from investing activities 2,201,552,374.51
3,204,707,295.22
Net cash flows arising from investing activities 330,802,224.03
-1,213,457,046.35
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)III. Cash flows arising from financing activities:
Cash received from absorbing investment
Cash received from loans 1,064,409,999.44
1,549,720,995.00
Other cash received concerning financing activities
28,609,663.72
7,594,599.50
Subtotal of cash inflow from financing activities 1,093,019,663.16
1,557,315,594.50
Cash paid for settling debts 1,451,985,025.00
1,468,595,600.00
Cash paid for dividend and profit distributing orinterest paying
114,912,675.86
99,520,906.42
Other cash paid concerning financing activities 121,717,485.21
279,276,931.43
Subtotal of cash outflow from financing activities 1,688,615,186.07
1,847,393,437.85
Net cash flows arising from financing activities -595,595,522.91
-290,077,843.35
IV. Influence on cash and cash equivalents due tofluctuation in exchange rate
8,391,306.55
6,180,497.06
V. Net increase of cash and cash equivalents -385,588,333.19
-1,267,421,930.02
Add: Balance of cash and cash equivalents at theperiod -begin
2,894,384,811.05
3,410,029,424.54
VI. Balance of cash and cash equivalents at the period-end
2,508,796,477.86
2,142,607,494.52
II. Financial statement adjustment
1.Relevant items of the financial statement at beginning of the year when implementing the new financial
instrument standards, new revenue standards or new leasing standards since 2019
√ Applicable □ Not applicable
Consolidated Balance Sheet
In RMBItem 2018-12-31 2019-01-01 AdjustmentCurrent assets:
Monetary funds 4,596,077,557.40
4,596,077,557.40
Settlement provisions
Capital lent
Tradable financial assets
9,253,635.59
9,253,635.59
Financial assets measured by fair value andwith variation reckoned into current gains/losses
9,253,635.59
-9,253,635.59
Derivative financial assets
Note receivable 2,387,830,887.74
2,370,568,253.64
-17,262,634.10
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text) Account receivable 1,670,988,644.76
1,673,362,136.29
2,373,491.53
Receivable financing
Accounts paid in advance 86,180,459.26
86,180,459.26
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 62,129,574.17
63,192,740.93
1,063,166.76
Including: Interest receivable 2,653,712.36
2,653,712.36
Dividend receivable
Buying back the sale of financial assets
Inventories 2,174,436,573.67
2,174,436,573.67
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 1,184,686,956.96
1,184,686,956.96
Total current assets 12,171,584,289.55
12,157,758,313.74
-13,825,975.81
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales 45,000,000.00
-45,000,000.00
Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 61,869,440.55
67,552,541.78
5,683,101.23
Investment in other equity instrument
Other non-current financial assets
45,000,000.00
45,000,000.00
Investment real estate 46,846,507.41
46,846,507.41
Fixed assets 1,733,957,012.14
1,733,957,012.14
Construction in progress 464,558,352.60
464,558,352.60
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 817,579,958.94
817,579,958.94
Expense on Research and Development 108,210,966.60
108,210,966.60
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 112,203,656.75
112,203,656.75
Other non-current asset
Total non-current asset 3,390,225,894.99
3,395,908,996.22
5,683,101.23
Total assets 15,561,810,184.54
15,553,667,309.96
-8,142,874.58
Current liabilities:
Short-term loans 2,336,373,929.62
2,336,373,929.62
Loan from central bank
Capital borrowed
Tradable financial liability
55,586,666.70
55,586,666.70
Financial liability measured by fair value and |
with variation reckoned into current gains/losses
55,586,666.70
-55,586,666.70
Derivative financial liability
Note payable3,727,754,399.60
3,727,754,399.60
Account payable 2,282,174,981.38
2,282,174,981.38
Accounts received in advance 354,551,354.80
354,551,354.80
Contractual liability
Selling financial asset of repurchase
Absorbing deposit and inter-bank deposit
Security trading of agency
Security sales of agency
Wage payable 163,638,627.79
163,638,627.79
Taxes payable 109,753,432.17
109,753,432.17
Other account payable 660,320,360.26
660,320,360.26
Including: Interest payable 7,519,756.26
7,519,756.26
Dividend payable 17,317,286.45
17,317,286.45
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 273,682,737.85
273,682,737.85
Other current liabilities
Total current liabilities 9,963,836,490.17
9,963,836,490.17
Non-current liabilities:
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Insurance contract reserve
Long-term loans 1,920,000.00
1,920,000.00
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable 5,017,208.00
5,017,208.00
Long-term wages payable 19,073,101.29
19,073,101.29
Accrual liability 273,063,677.21
273,063,677.21
Deferred income 160,250,963.60
160,250,963.60
Deferred income tax liabilities 3,098,699.11
3,098,699.11
Other non-current liabilities
Total non-current liabilities 462,423,649.21
462,423,649.21
Total liabilities 10,426,260,139.38
10,426,260,139.38
Owner’s equity:
Share capital 1,044,597,881.00
1,044,597,881.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 2,684,369,598.46
2,684,369,598.46
Less: Inventory shares
Other comprehensive income -18,143,569.26
-18,143,569.26
Reasonable reserve
Surplus public reserve 400,673,993.50
399,650,743.38
-1,023,250.12
Provision of general risk
Retained profit 904,232,582.87
901,498,253.96
-2,734,328.91
Total owner’ s equity attributable to parentcompany
5,015,730,486.57
5,011,972,907.54
-3,757,579.03
Minority interests 119,819,558.59
115,434,263.04
-4,385,295.55
Total owner’ s equity 5,135,550,045.16
5,127,407,170.58
-8,142,874.58
Total liabilities and owner’ s equity 15,561,810,184.54
15,553,667,309.96
-8,142,874.58
Explanation:
The Company implemented the new financial instrument standards since 1 Jan. 2019, the “Financial assetsmeasured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable financialassets”, the “Financial assets available for sale” adjusted to “Other non-current financial assets”, the “Financial
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)liabilities measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradablefinancial liabilities”.Under the convergence provisions of the new financial instrument standards, the Company need not restateprior comparability, there is no need to adjust the information presented in the comparative financial statementsthat is inconsistent with the requirements of the new standards. The difference between original book value of afinancial instrument and the new book value at the date of implementation of these standards, will reckon into theretained income for period-begin of 2019.The joint venture-Sichuan Zhiyijia Network Technology Co., Ltd implemented the new financial instrumentstandards since 2019, and adjusted the owners equity at year-beginning, the Company synchronized adjustmentaccording to the shareholding ratio, and reckoned into the long-term equity investment of year-beginning for year2019 and retained income for year-begin.
Balance Sheet of Parent Company
In RMBItem 2018-12-31 2019-01-01 AdjustmentCurrent assets:
Monetary funds 2,897,004,041.87
2,897,004,041.87
Tradable financial assets
9,253,635.59
9,253,635.59
Financial assets measured by fair value and withvariation reckoned into current gains/losses
9,253,635.59
-9,253,635.59
Derivative financial assets
Note receivable 2,433,243,946.64
2,419,743,946.64
-13,500,000.00
Account receivable 1,050,282,023.37
1,047,769,123.31
-2,512,900.06
Receivable financing
Accounts paid in advance 58,710,427.38
58,710,427.38
Other account receivable 182,744,033.52
182,841,331.20
97,297.68
Including: Interest receivable 2,653,712.36
2,653,712.36
Dividend receivable
Inventories 911,130,106.30
911,130,106.30
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 1,113,987,528.70
1,113,987,528.70
Total current assets 8,656,355,743.37
8,640,440,140.99
-15,915,602.38
Non-current assets:
Debt investment
Available-for-sale financial assets 45,000,000.00
-45,000,000.00
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 1,731,109,903.70
1,736,793,004.93
5,683,101.23
Investment in other equity instrument
Other non-current financial assets
45,000,000.00
45,000,000.00
Investment real estate 7,618,550.16
7,618,550.16
Fixed assets 1,082,915,540.08
1,082,915,540.08
Construction in progress 125,064,106.10
125,064,106.10
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 462,425,105.64
462,425,105.64
Research and development costs 57,383,653.72
57,383,653.72
Goodwill
Long-term deferred expenses
Deferred income tax assets 78,357,299.17
78,357,299.17
Other non-current assets
Total non-current assets 3,589,874,158.57
3,595,557,259.80
5,683,101.23
Total assets 12,246,229,901.94
12,235,997,400.79
-10,232,501.15
Current liabilities:
Short-term borrowings 1,911,719,726.13
1,911,719,726.13
Tradable financial liability
19,893,875.00
19,893,875.00
Financial liability measured by fair value andwith variation reckoned into current gains/losses
19,893,875.00
-19,893,875.00
Derivative financial liability
Notes payable2,001,442,110.63
2,001,442,110.63
Account payable 2,011,821,519.82
2,011,821,519.82
Accounts received in advance 105,815,140.88
105,815,140.88
Contractual liability
Wage payable 31,271,182.48
31,271,182.48
Taxes payable 21,992,129.58
21,992,129.58
Other accounts payable 427,293,961.56
427,293,961.56
Including: Interest payable 5,801,215.14
5,801,215.14
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)Dividend payable 17,317,286.45
17,317,286.45
Liability held for sale
Non-current liabilities due within one year 258,588,504.48
258,588,504.48
Other current liabilities
Total current liabilities 6,789,838,150.56
6,789,838,150.56
Non-current liabilities:
Long-term loans 1,920,000.00
1,920,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long term employee compensation payable 19,073,101.29
19,073,101.29
Accrued liabilities 266,641,323.73
266,641,323.73
Deferred income 53,118,676.50
53,118,676.50
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 340,753,101.52
340,753,101.52
Total liabilities 7,130,591,252.08
7,130,591,252.08
Owners’ equity:
Share capital 1,044,597,881.00
1,044,597,881.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 2,753,017,007.10
2,753,017,007.10
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 400,455,827.82
399,432,577.70
-1,023,250.12
Retained profit 917,567,933.94
908,358,682.91
-9,209,251.03
Total owner’s equity 5,115,638,649.86
5,105,406,148.71
-10,232,501.15
Total liabilities and owner’s equity 12,246,229,901.94
12,235,997,400.79
-10,232,501.15
Explanation:
The Company implemented the new financial instrument standards since 1 Jan. 2019, the “Financial assetsmeasured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradable financial
CHANGHONG MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2019(Full Text)assets”, the “Financial assets available for sale” adjusted to “Other non-current financial assets”, the “Financialliabilities measured by fair value and with its variation reckoned into current gains/losses” adjusted to “Tradablefinancial liabilities”.
Under the convergence provisions of the new financial instrument standards, the Company need not restateprior comparability, there is no need to adjust the information presented in the comparative financial statementsthat is inconsistent with the requirements of the new standards. The difference between original book value of afinancial instrument and the new book value at the date of implementation of these standards, will reckon into theretained income for period-begin of 2019.The joint venture-Sichuan Zhiyijia Network Technology Co., Ltd implemented the new financial instrumentstandards since 2019, and adjusted the owners equity at year-beginning, the Company synchronized adjustmentaccording to the shareholding ratio, and reckoned into the long-term equity investment of year-beginning for year2019 and retained income for year-begin.
2. Explanation on comparative data in the early stage of retroactive adjustment while implemented the new
financial instrument standards or new leasing standards since 2019
□ Applicable √ Not applicable
III. Audit reportWhether the 3
rdquarterly report has been audited or not
□Yes √ No
The 3rdquarterly report of the Company has not been audited.
Changhong Meiling Co., Ltd.Chairman: Wu Dinggang18 October 2019