合肥美菱股份有限公司
HEFEI MEILING CO., LTD.
二〇一七年年度报告
Annual Report 2017
HEFEI MEILING CO., LTD. Annual Report 2017
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Hefei Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no
any fictitious statements, misleading statements, or important omissions carried in this report, and
shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the
whole contents.
Mr. Li Wei, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work
and Mr. Luo Bo, person in charge of accounting organ (accountant in charge) hereby confirm that
the Financial Report of 2017 Annual Report is authentic, accurate and complete.
The Company did not have directors, supervisors and senior executives of the Company could
not guarantee the reality, accuracy and completion of the whole contents or have objections.
All the directors attended the board meeting on deliberating the Report on site and by
communication.
Modified audit opinions notes
□ Applicable √ Not applicable
Shine Wing Certified Public Accountants Co., Ltd. (LLP) issued standard unqualified Auditors’
Report for the Company’s Financial Report of 2017.
Major defects in internal control
□ Applicable √ Not applicable
The Company had no major defects in internal control in the reporting period.
Risk warning of concerning the forward-looking statements with future planning involved in
annual report
√ Applicable □Not applicable
Concerning the forward-looking statements with future planning involved in the Report, they
do not constitute a substantial commitment for investors, investors and the person concerned should
maintain adequate risk awareness, furthermore, differences between the plans, forecast and
commitments should be comprehended. Investors are advised to exercise caution of investment
risks.
Investors are advised to read the full text of annual report, and pay particular attention to the
following risk factors.
More details about the possible risks and countermeasures in the operation of the Company are
described in the report “IX. Prospects for the future development of the company” of “Section IV.
Analysis and discussion of the operation”, investors are advised to read the relevant content.
Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website
HEFEI MEILING CO., LTD. Annual Report 2017
(www.cninfo.com.cn) are the media for information disclosure for year of 2018 that appointed by
the Company. All public information under the name of the Company disclosed on the above said
media and website shall prevail, and investors are advised to exercise caution.
Does the Company need to comply with disclosure requirements of the special industry: No
Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the
Board in the reporting period
√ Applicable □Not applicable
Whether has capitalizing of common reserves carried out
□Yes √ No
The profit distribution plan for year of 2017, that deliberated and approved by 7th session of
the 9th BOD was: take total shares of 1,044,597,881 shares as base dated 31 December 2017,
distributed 0.6 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, no
share bonus issued and no capitalizing of common reserves carried out.
Directors and senior executives of the Company respectively signed Written Confirmation
Opinions for 2017 Annual Report.
Supervisory Committee of the Company formed Written Examination Opinions for 2017
Annual Report.
HEFEI MEILING CO., LTD. Annual Report 2017
Contents
Section I. Important Notice, Contents and Paraphrase ................................................................. 1
Section II. Company Profile and Main Financial Indexes ............................................................. 5
Section III. Summary of Company Business ................................................................................. 12
Section IV. Discussion and Analysis of the Operation .................................................................. 19
Section V. Important Events............................................................................................................ 72
Section VI. Changes in Shares and Particulars about Shareholders ........................................ 175
Section VII. Preferred Stock ......................................................................................................... 196
Section VIII. Particular about Directors, Supervisors, Senior Executives and Employees .... 197
Section IX. Corporate Governance .............................................................................................. 219
Section X. Corporate Bond ........................................................................................................... 238
Section XI. Financial Report ......................................................................................................... 239
Section XII. Documents available for Reference ......................................................................... 392
HEFEI MEILING CO., LTD. Annual Report 2017
Paraphrase
Items Refers to Contents
Company, the Company or Meiling
Refers to HEFEI MEILING CO., LTD
Electric
Sichuan Changhong or controlling
Refers to Sichuan Changhong Electric Co., Ltd.
shareholder
Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd.
Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED
Meiling Group Refers to Hefei Meiling Group Holdings Limited
Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co., Ltd.
Shine Wing Refers to Shine Wing Certified Public Accountants (LLP)
Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd.
Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd.
Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd.
Changhong Ridian Refers to Guangdong Changhong Ridian Technology Co., Ltd.
Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., LTD
Changmei Technology Refers to Changmei Technology Co., Ltd.
Huayi Compressor Refers to Huayi Compressor Co., Ltd.
Meiling CANDY Refers to Meiling CANDY Washing Machine Co., Ltd.
Candy Group Refers to Candy Hoover Group S.r.l.
CSRC Refers to China Securities Regulatory Commission
China Securities Regulatory Commission, Anhui Province
Anhui Securities Bureau Refers to
Securities Regulatory Bureau
SSE Refers to Shenzhen Stock Exchange
HEFEI MEILING CO., LTD. Annual Report 2017
Section II. Company Profile and Main Financial Indexes
I. Company information
MEILINGDIANQI,
Short form of the stock Stock code 000521, 200521
WANMEILING-B
Short form of the Stock after
——
changed (if applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
合肥美菱股份有限公司
Chinese)
Short form of the Company (in
美菱电器
Chinese)
Foreign name of the Company
HEFEI MEILING CO.,LTD.
(if applicable)
Abbr. of English name of the
——
Company (if applicable)
Legal representative Li Wei
Registrations add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Code for registrations add
Offices add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei
Codes for office add.
Website http://www.meiling.com
E-mail info@meiling.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Xia Zhu Wenjie
No. 2163, Lianhua Road, Economic and No. 2163, Lianhua Road, Economic and
Contact add.
Technology Development Zone, Hefei Technology Development Zone, Hefei
Tel. 0551-62219021 0551-62219021
Fax. 0551-62219021 0551-62219021
e-mail lixia@meiling.com wenjie.zhu@meiling.com
III. Information disclosure and preparation place
Newspaper appointed for information Securities Times, China Securities Journal, Hong Kong
HEFEI MEILING CO., LTD. Annual Report 2017
disclosure Commercial Daily
Website for annual report publish appointed by
Juchao website: http://www.cninfo.com.cn
CSRC
Room of secretary of the Board, 2/F , administrative center,
Preparation place for annual report
Office building of the Company
IV. Registration changes of the Company
Organization code Uniform social credit code: 9134000014918555XK
Changes of main business since listing No changes
1. In October 1993, after initial listing, controlling shareholder of the
Company-- Hefei Meiling Industrial Corp. (named Hefei Meiling Group
Co., dated 23 May 1994), executing controlling rights of the Company
and management right of the state-owned assets on behalf of Hefei
State-owned Assets Management Office, named at that time;
2. From November 1997 to May 2003, controlling shareholder of the
Company was Hefei Meiling Group Holding Co., Ltd. (established base
on former Meiling Group Co.,, “Meiling Group” for short), an
enterprise solely owned by the State; mainly operating the state-owned
capital in authorized from State-owned Assets Management
Commission of Hefei City, ensuring the maintenance and appreciation
of state-owned assets;
3. On 29 May 2003, Meiling Group entered into “Equity Transfer
Agreement” with Shunde GreenKel Enterprise Development Co., ltd.
(“GreenKel”), the 82,852,683 state-owned shares held by the Company
was transfer to GreenKel. After transferring, GreenKel comes to the first
Previous changes for controlling
largest shareholder of the Company.
shareholders
4. According to the spirit of “Bulletin of Treatment Opinions on
GreenKel Company purchasing State-owned Assets Shares of Listed
Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and
Ministry of Finance in April 2006, Meiling Group took back the Meiling
Electric 82,852,683 shares from GreenKel by procedures, which has
been transferred. In September 2006, relevant equity transfer agreement
signed between the Meiling Group and GreenKel is invalid, which was
confirmed by the “Award” ((2006) HZZ No.: 104) issued from
arbitration commission of Hefei; the state-owned legal person’s
82,852,683 shares, held by GreenKel, should return to Meiling Electric,
and relevant equity consideration will pay to GreenKel by Meiling
Group . On 29 December 2006, the 82,852,683 shares of Meiling
Electric were transfer to Meiling Group by GreenKel, and Meiling
Group becomes the controlling shareholder of Meiling Electric again.
5. On 18 May 2006 and 11 January 2007, Meiling Group entered into
“Equity Transfer Agreement of Meiling Electric” and “Supplementary
HEFEI MEILING CO., LTD. Annual Report 2017
Agreement of Equity Transfer of Meiling Electric” respectively with
Sichuan Changhong and Changhong Group, among the 123,396,375
shares held by Meiling Group, 82,852,683 shares were transferred
respectively to Sichuan Changhong and Changhong Group according to
the transfer way regulated in agreement; of this transferring, 45,000,000
shares (10.88% of total share capital of the Company) were transferred
to Sichuan Changhong, the first largest shareholder of the Company
while 37,852,683 shares (9.15% of total share capital of the Company)
were transferred to Changhong Group, the third largest shareholder of
the Company.
6. On 29 October 2008, Changhong Group and Sichuan Changhong
entered into “Equity Transfer Agreement of Hefei Meiling Co., Ltd.”,
the 32,078,846 restricted circulations A shares of Meiling Electric held
by Changhong Group were transferred by agreement to Sichuan
Changhong. On 23 December 2008, the aforesaid equity transfer was
approved by “Reply on Matters of Equity held by State-owned
Shareholders of Hefei Meiling Co., Ltd.” (GZCQ(2008) No.: 1413)
from SASAC; on 21 January 2009, the aforesaid transfer was registered
for ownership transfer in Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited.
7. Ended as 31 December 2017, Sichuan Changhong and its concerted
action Changhong HK totally holds 265,601,410 shares of the
Company, a 25.43% in total share capital of the Company; Sichuan
Changhong directly holds 234,705,968 A-share of the Company, a
22.47% in total share capital of the Company while Changhong HK
holds circulation B-share of the Company amounting as 30,895,442
shares, a 2.96% in total share capital of the Company.
V. Other relevant information
(I) CPA engaged by the Company
Name of CPA Shine Wing Certified Public Accountants (LLP)
8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng
Offices add. for CPA
District, Beijing, P.R.C
Signing Accountants Li Xifu, Xia Cuiqiong
(II) Sponsor engaged by the Company for performing continuous supervision duties in
reporting period
√Applicable □Not applicable
Duration of continuous
Sponsor institution Office address Sponsor representative
supervision
Shenwan HongYuan No. 239 Changshu Rd. 14 October 2016 to 31
Qin Mingzheng, Qiu Feng
Securities Underwriting Shanghai December 2017
HEFEI MEILING CO., LTD. Annual Report 2017
Sponsor Co., Ltd.
(III) Financial consultant engaged by the Company for performing continuous supervision
duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Changes over
2017 2016
last year
Operating income (RMB) 16,797,436,757.36 12,526,710,867.49 34.09% 10,754,200,188.12
Net profit attributable to shareholders of the
32,473,204.92 220,216,680.96 -85.25% 27,104,893.56
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting -97,705,959.02 158,461,015.10 -161.66% 93,951,365.12
non-recurring gains and losses (RMB)
Net cash flow arising from operating
-551,501,994.74 985,390,895.63 -155.97% 229,371,185.23
activities (RMB)
Basic earnings per share (RMB/Share) 0.0311 0.2717 -88.55% 0.0355
Diluted earnings per share (RMB/Share) 0.0311 0.2717 -88.55% 0.0355
Weighted average ROE Reduce 5.13 pe
0.64% 5.77% 0.77%
rcentage points
Changes over
End of 2017 End of 2016 End of 2015
end of last year
Total assets (RMB) 15,961,511,966.81 12,507,567,310.84 27.61% 9,237,288,359.74
Net assets attributable to shareholder of
5,051,066,095.31 5,095,160,291.91 -0.87% 3,475,377,055.14
listed company (RMB)
The cause of the accounting policy change and accounting error correction
□ Applicable √ Not applicable
Whether have corporate bonds or not
□Yes √ No
VII. Accounting data difference under domestic and foreign accounting standards
HEFEI MEILING CO., LTD. Annual Report 2017
(I) Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report,
under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted
Accounting Principles) in reporting period.
(II) Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable □Not applicable
In RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of
listed company listed company
Amount in last Amount at Amount at
Amount in this period
period period-end period-begin
Chinese GAAP 32,473,204.92 220,216,680.96 5,051,066,095.31 509,516,0291.91
Items and amount adjusted by foreign accounting rules
Foreign accounting rules 32,473,204.92 220,216,680.96 5,051,066,095.31 509,516,0291.91
The Company had no difference of the net profit or net assets disclosed in financial report,
under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles)
in the period.
(III) Reasons for the differences of accounting data under accounting rules in and out of China
√ Applicable □Not applicable
The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares
Offering” was issued from CSRC dated 12 September 2007, since the day issuing, cancel the
previous “dual audit” requirement for companies who offering domestically listed foreign shares
(B-share enterprise) while engaging securities practice qualification CPA for auditing. The
Company did not compile financial report under foreign accounting rules since 2007, the financial
report of the Company is complying on the “Accounting Standard for Business Enterprise” in China,
and therefore, there are no differences of accounting data under accounting rules in and out of
China at period-end.
VIII. Quarterly main financial index
HEFEI MEILING CO., LTD. Annual Report 2017
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 3,666,603,957.50 4,851,190,235.60 4,661,344,340.71 3,618,298,223.55
Net profit attributable to
shareholders of the listed 61,303,717.56 30,771,322.21 28,147,276.19 -87,749,111.04
company
Net profit attributable to
shareholders of the listed
41,625,189.75 25,280,149.23 15,681,839.2 -180,293,137.20
company after deducting
non-recurring gains and losses
Net cash flow arising from
551,271,013.44 -67,040,315.53 -615,028,782.00 -420,703,910.65
operating activities
Whether there are significant differences between the above-mentioned financial index or its
total number and the relevant financial index disclosed in the company’s quarterly report and
semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □Not applicable
In RMB
Item Amount in 2017 Amount in 2016 Amount in 2015 Note
Found more in “income
Gains/losses from the disposal of
from assets disposal” and
non-current asset (including the write-off -8,203,782.90 9,265,320.01 -4,315,502.74
“investment income” in
that accrued for impairment of assets)
Note of financial report
Governmental subsidy reckoned into current
Found more in
gains/losses (not including the subsidy
“non-operating income”
enjoyed in quota or ration according to 68,403,702.36 41,152,549.66 29,285,357.05
and “other income” in
national standards, which are closely
Note of financial report
relevant to enterprise’s business)
Changhong Ridian-merger
Current net gain/losses of the subsidiary
under the same control,
merger under the same control from -- -- 615,594.18
restate the statement of
beginning of the period to combination date
comparative financial data
Held transaction financial asset, gains/losses Found more in
of changes of fair values from transaction 92,846,391.02 11,500,963.72 2,313,967.35 “investment income” and
financial liabilities, and investment gains “gain/loss of income from
HEFEI MEILING CO., LTD. Annual Report 2017
from disposal of transaction financial asset, fair value changes” in
transaction financial liabilities and financial Note of financial report
asset available for sales, exclude the
effective hedging business relevant with
normal operations of the Company
Found more in
Other non-operating income and expenditure “non-operating
2,680,908.22 4,948,619.55 -103,646,326.02
except for the aforementioned ones expenditure” in Note of
financial report
Found more in
Gain/losses items qualified definition of the
-- 3,798,660.03 -- “investment income” in
non-recurring gains/losses
Note of financial report
155,727,218.70 70,666,112.97 -75,746,910.18 --
Less: impact on income tax 24,087,520.95 8,534,266.32 -9,078,920.45 --
Impact on minority shareholders’ equity
1,460,533.81 376,180.79 178,481.83 --
(post-tax)
Total 130,179,163.94 61,755,665.86 -66,846,471.56 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items
defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---
Extraordinary Profit/loss, 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
the Public --- Extraordinary Profit/loss, in the period.
HEFEI MEILING CO., LTD. Annual Report 2017
Section III. Summary of Company Business
I. Main businesses of the company in the reporting period
Does the Company need to comply with disclosure requirements of the special industry?
□Yes √ No
(I) Main businesses of the Company
The company is one of China's major electric appliance manufacturers, possesses four major
domestic manufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas
manufacturing bases in Indonesia and Pakistan, currently, we have completed the industry layout of
white electricity basically, covering the full product line including ice, washing, air, kitchen and
bath, small household appliances and others, at the same time, the company enters into the fresh
e-business, bio-medical and other new industrial fields.
Over the past 30 years, the Company has always been adhering to the \"independent innovation,
created in China\", and always focus on refrigeration industry without stop, elaborately building the
core competitiveness of enterprises by technological innovation and product innovation. The
company has set up the first RoHS public testing center in Anhui Province, the state-level enterprise
technology center and the top-end R & D team, so that Meiling can continue to achieve
breakthrough results in the variable frequency, intelligence, retain freshness, energy-saving, forced
air cooling, deep cooling and other fields. In recent years, the Company has been awarded three
national honorary titles, i.e. “Smart Refrigerator Intelligent Manufacturing Pilot Demonstration
Project”, “National Green Factory” and “National Industrial Design Center”. At the same time, a
variety of Meiling products have entered the national green product list and won a number of
domestic and international innovation awards, which once again demonstrated the capabilities and
strengths of intelligent innovation technologies of Meiling intelligent manufacturing and Meiling
brand.
In recent years, driven by the industry transformation and upgrades and consumption upgrades,
the Company has adhered to the strategy of smart and variable frequency products, promoted the
Company’s products to transform and upgrade to become intelligent and high-end and
comprehensively enhanced the competitiveness of products in the industry by grasping the
opportunities of “fresh-keeping” and energy efficiency upgrades and effectively resolving the pain
points of customers. Under the guidance of the “intelligent” strategy, as early as 2014, the Company
has released the industry-leading CHiQ series of smart refrigerators and air-conditioning products;
in 2016, the Company took the lead in launching the industry’s “Smart Home Eco-system Project”
and launched the world’s first free-to-order internet of things refrigerator in the temperature zone
(CHiQ’s second-generation “Space Smart” refrigerator) and the world's first user-customized
intelligent air housekeeper (CHiQ smart air housekeeper), and realized the continuous
HEFEI MEILING CO., LTD. Annual Report 2017
implementation of the Company's smart strategy. At the same time, in order to seize the opportunity
of energy efficiency upgrades and consumption upgrades, since the Company launched the “All
People Change for Variable Frequency” campaign in 2015, the share of variable frequency products
has continued to increase due to its advantages in the application of variable frequency technology.
In addition, in order to return to the nature of the “fresh-keeping” of refrigerators and effectively
solve the pain points of users, the Company launched its “M Fresh Life” series of refrigerators
equipped with water molecule activation and preservation technology in 2017 for the first time in
the world. “M Fresh Life” has become not only a new starting point for the Company to transform
to the high-end consumer market, but also a concrete measure for the Company’s continuous
improvement of product quality, taste and brand.
During the reporting period, under the background of stagflation in the industry and sharp
rising costs of raw materials, labor and transportation and exchange rate fluctuations, through the
efforts of all employees, the Company’s sales revenue increased significantly, and the market
position of major product lines was promoted. At the same time, the Company signed the Strategic
Cooperation Framework Agreement with Candy Group, a world-renowned Italian professional
electrical appliance manufacturer, and formally established a strategic partnership between two
parties in the refrigerator (freezer) and washing machine business areas to further enhance the
competitiveness of the Company’s washing machine products. In the future, both parties will
continue to use their respective advantages to carry out in-depth strategic cooperation, jointly
develop the market, promote the brand, and maximize the commercial value and social value. In
addition, during the reporting period, the good development momentum of the Company’s kitchen
and baths, small household appliances, bio-medicine, and ifoodtube e-commerce platform indicated
that the Company has basically completed the industrial layout of integrated white goods.
Facing the future, the Company will further improve the home internet layout, accelerate the
intelligentization of home appliances, form a dual-growth engine of “hardware + services”, drive
the transformation and upgrading of the Company’s profitability model, investigate the new
value-added service models for home appliance enterprises, meet new competition pattern in the
industry, and achieve its own sustainable and stable development under the guidance of the core
values of “professionalism and shared development”.
In reporting period, main income of the Company coming from refrigerator (freezer), air
conditioner, washing machine, kitchen & toilet and small home appliances products, total
amounting to 16,013.3276 million Yuan, a 95.33% of the operating income.
(II) Conditions of the industry the company involved
In 2017, under the influence of supply-side reform of the country and industrial restructuring,
household appliance industry faces with severe challenges and development opportunity. Mainly
show as:
1. The home appliance industry has entered from the rapid growth period into the gradually
stable replacement period and from the broader market growth into the aggressive growth, industry
competition intensified and brand concentration gets further improve.
2. With the upgrading of consumption structure and ideas, the high-end and intelligent
transformation and upgrading of household appliances have become the main theme of the industry.
HEFEI MEILING CO., LTD. Annual Report 2017
On the one hand, the full implementation of new energy efficiency standards further raised the
threshold for industrial competition and accelerated the upgrading of product structure. On the other
hand, the sharp rise in the raw material prices not only brought business pressure to enterprises, but
also promoted the upgrading of home appliance product structure, got rid of the low-end and
abnormal price competition, and returned to the rational value competition. The competition among
home appliance enterprises in high end and intelligentization would become increasingly fierce, and
higher requirements would be put forward for enterprises in product development, brand status,
terminal promotion, and channel capabilities.
3. With the development of urbanization and the improvement of living standards, the age of
quality consumption has coming, the new consumer groups pay more attention to high-quality,
intelligent and healthy environmental protection products. The product homogenization of
traditional home appliance industry is serious, aiming at the needs of consumers, each home
appliance manufacturer focuses on the technological innovations of smart, variable frequency,
fresh-keeping, and air-cooling and other high-end products for quality promotion so as to improve
the competitive advantage of personalized products. .Furthermore, with the further development of
smart home and continuous improvement of the artificial intelligence technology, the cross-border
cooperation among household appliance enterprise and internet enterprise are promote at an
accelerated rate, so actively exploring business model innovation and enhancing the user
experience have become an important engine for a new round of rapid growth of household
electrical appliance enterprises.
On the whole, in the context of the weak recovery of the world economy and the fact that
China’s economic development has entered a new normal, China’s economic situation in 2017 was
generally smooth and steady. While the household appliance industry was in a state of stagflation,
under the influence of the further strengthening of brand concentration of the industry, the rise in
cost of raw materials and logistics, the upgrading of consumer demand structure, and the
cross-border impact of internet enterprises, the industry faced the accelerated reshuffle, oligopolistic
competition, transformation and upgrading of product and business model and other challenges.
Therefore, quality consumption era, high end and intelligence have become the inevitable choices
for the development of the home appliance industry.
II. Major changes in main assets
(I) Major changes in main assets
Major assets Note of major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
Construction in progress Project of construction in progress increased in the period
2. Main overseas assets
HEFEI MEILING CO., LTD. Annual Report 2017
√ Applicable □Not applicable
Whether
Foreign assets
Operati exist
Reason for Control measure to ensure the security accounted for
Content of assets Asset size Location on Income (RMB) significant
the formation of assets net assets of
mode impairment
the Company
risk
Details of risks control measures have
been disclosed by the Company by way
of announcement on appointed media
60% equity of (No. 2011-028, No. 2011-032, No.
Investment US$ 7.803
Changhong Ruba Pakistan Sales 2014-023, No. 2014-026, No. 2016-027, -1,173,136.24 0.81% No
establishment million
Trading Company No. 2016-032, No. 2017-053 and No.
2017-059) on 28 May 2011, 19 April
2014, 25 March 2016 and 10 August
Details of risks control measures have
40% equity of been disclosed by the Company by way
Changhong Ruba of announcement on appointed media
Investment US$ 6.976 Manufa
Electric Pakistan (No. 2011-028, No. 2011-032, No. -400,790.01 0.55% No
establishment 1 million cture
Company(Private)L 2014-023, No. 2014-026, No. 2017-053
td. and No. 2017-059) on 28 May 2011, 19
April 2014 and 10 August 2017
100% equity of Details of risks control measures have
KELAPA
CHANGHONG been disclosed by the Company by way
Investment US$ 6 GADING,
MEILING Sales of announcement on appointed media -6,242,827.39 0.62% No
establishment million JKT,
ELECTRIC (No. 2016-027 and No. 2016-033) on 25
Indonesia
INDONESIA. PT March 2016
Other notes N/A
III. Core Competitiveness Analysis
Does the Company need to comply with disclosure requirements of the special industry?
□Yes √ No
(I) Brand capacity
The Company is one of the famous home appliances manufacturers in the PRC, owns several
product lines such as refrigerator, freezing box and air conditioner. Meiling trademark is listed as
one of the most valuable brands in the PRC, well-known trademark in China; the trademark
“Athena” in refrigerator, freezer (services) of the Company was recognized as the famous mark in
HEFEI MEILING CO., LTD. Annual Report 2017
Anhui Province. The Company released CHiQ intelligent first and second generation refrigerator,
AC and intelligent air steward in succession. And creating a high-end intelligent brand image
around the plan of “Wisdom Home Ecosystem” for opening a white intelligence era. While in order
to enhance the brand image and further expand the market influence of the brand, the company held
a conference for \"New LOGO release and offline of the 10th million set of frequency conversion
products\" in October 2015, comprehensively updated LOGO \" \", and launched the
new brand proposition of \"Meiling, let the good come\". Along with the release of new LOGO,
Meiling will also implement a brand strategy of \"Good Trilogy\", including the direct sensory
experience of “experience the good\", the spirit soul enjoyment of “enjoy the good”, and the lifestyle
faith of “believe in the good”. Moreover, under the boost of consumption upgrades, in November
2017, the Company launches a “M -Fresh” refrigeration with the “water molecules activating
technology”, return to essence of the refrigerator and set off the revolution of fresh-keeping in
industry.
Reshaping brand ability through continuous upgrading of products, Meiling will realize a
young, international and professional brand image. Through gradual construction of the ideas of
Wonderful Start Point, Wonderful Life Circle and Wonderful Ecology Circle, Meiling has become a
people-oriented artist specializing in white appliances, a smarter scientific expert and a more
reliable house keeper.
(II) Product capacity
In more than 30 years, the Company has been focusing on the refrigeration industry, has
developed a variety of different types of refrigerator products, including three serial produces as
“MELNG 美菱, CHiQ and Athena”. Mainly include the “M Fresh Life” series fresh-keeping
refrigerators equipped with water molecule activation and fresh-keeping technology, Jingdong
smart large-screen 570 series refrigerators, CHiQ series high-end intelligent refrigerators and air
conditioners, 0.1-degree double-precision variable frequency refrigerators, European 540-wide
series air-cooled products, 106DTB series freezer with new appearance and thin door, YC-365L
low-temperature & medical refrigerator and so on; in particular, the “M-Fresh Life” series
fresh-keeping refrigerators that the Company has latest released return to the essence of the
refrigerator, by virtue of the Company’s water molecule activation fresh-keeping technology,
change passive fresh-keeping to active fresh-controlling, change from variable frequency
temperature control and intelligent interaction to intelligent fresh-controlling, activate water
molecules, generate resonance force, fission force, and penetrating power so as to thoroughly solve
the problems of traditional refrigerators such as short preservation time, much thawed water, and
poor preservation in bags.
The Company owned advanced development and quality assurance systems, and received
certification of ISO9001, ISO140001 and OHSAS18001 from domestic and overseas authorities.
HEFEI MEILING CO., LTD. Annual Report 2017
The products of the Company have good quality and reliable capacities. As for technology
development, the Company owned national technology centers, and advanced core technologies in
energy-saving, intelligence, air cooling, fresh-keeping, frequency conversion and copious cooling.
As for product development, combine the R&D results and consumption upgrading demand, the
Company renewal its outline of product planning and development for the year, products structure
is escalating. Putting more efforts on the middle & high-end products in field of air patenting,
large-size, frequency conversion, intelligence and fresh-keeping, developing core products with
competitive, the product has obvious upgrade in structures.
As for the air conditioning products, the company adheres to the technical strategy by taking
intelligence and variable frequency as the core, intensively studies the human state perception
technology and intelligent interactive technology, focuses on completing the research and
development of intelligent voice recognition technology and productization, successively releases
the first generation of CHiQ air conditioner based on \"human state perception\" technology and
CHiQ intelligent air steward that can automatically change air.
In terms of washing machine, the Company has actively developed the core technology of
Meiling washing machines, upgraded its product lineup, continuously laid out the large-scale
washing and drying integration, and innovated the era of drum-type healthy washing. The Company
has developed and launched a series of drum-type washing machines, including Meiling520
Zhenrui washing and drying series front loading washing machines and Meiling vortex
full-automatic drum-type washing machine series with light luxury gold appearance, large capacity
and high efficient washing and drying technology, a number of patented technologies, and high
efficient and environmental protection and energy saving configuration, especially the
XQB80-19BPLQ1 and MB80-19PZLGX series variable frequency washing machines use DD
(direct drive) variable frequency motor which provides more precise control, less energy loss, less
noise, and longer life.
In terms of kitchen appliance products, the Company has taken the concept of “smart kitchen”
as the mainline, focused on the core business to create competitive industries, and achieved a full
coverage of kitchen and bath and household appliances. Under the guidance of the Company’s
intelligence and variable frequency product strategy, the Company has developed and released
EQ21 series intelligent kitchen ventilator with integration of intelligent control, smoke and stove
linkage, and large air volume, tankless integrated water purifier, cloud intelligent remote control
series intelligent electric water heaters and intelligent gas water heaters, as well as the kitchen
ventilator with DC inverter technology. In addition, with the advent of the Company's
independently developed plasma-disinfected dishwasher, the dishwasher category has enjoyed core
technologies in the segmented industries.
In terms of cryogenic products, the Company has continued to increase R&D investment and
promote the upgrading of technologies and products. The Company’s existing ultra low freezer,
HEFEI MEILING CO., LTD. Annual Report 2017
plasma blaster freezer, blood bank refrigerator, medical refrigerator, combined refrigerator &
freezer and medical freezer and other biomedical products have been widely used in medical and
health, disease control and epidemic prevention, blood systems, research institutes,
bio-pharmaceutical, genetic engineering and life sciences and other fields. Especially in ultra low
products, the Company has the -40 °C ~ -164 °C ultra-low freezer storage tank with the largest
volume, the widest temperature zone, and mute design in the world.
The Company insisting on the two products strategy as intelligence and frequency conversion,
with follow-up R&D of the intelligence and frequency conversion, promoting products of the
Company leading in high-end and technology innovation; meanwhile, the company improves the
manufacturing efficiency and product quality and enhances product competitiveness by
comprehensively implementing intelligent upgrading and rebuilding to all production lines. In
addition, the company has initially completed the layout for integrated white goods. Meanwhile,
based on \"Intelligent Home Eco-circle\" plan and taking the existing products as the core, the
company will enhance the development, manufacturing, sales and collaboration capabilities of
integrated white goods, and provide users with a set of intelligent white goods system solutions.
(III) Operation capacity
The Company conducted benchmark management to improve its basic management level. In
specific, efficiency enhancement has been made in areas of personnel, money and materials, trying
to continuously enhance the internal management. A performance review and sharing system has
been established with clear target and quantity index based on performance and layered incentive
sharing system, thus to inspire the internal production capacity. Under the mainline of value chain
management, the Company continued to carry out value creation and improve its competitiveness.
Its ability to prevent risks has been also strengthened through continuous improvement of internal
control system.
(IV) Marketing ability
The company has established a relatively complete sales network and service system, of which,
the domestic sales channels emphasizing online and offline collaboration and integration, through
the business operation mode system construction (target management, value chain management,
sales promotion, product mix and channel strategy, etc.) and promotion, the pace of business this
year constantly tends to be benign, has a balanced development in chain, wholesale, e-commerce
and other channels, and the product competitiveness has been improved; the overseas market has
been strengthened by increasing the investments in overseas marketing organizations, research and
development bases and production bases, cooperate with internationally-known home appliance
brand business and dealer, optimized the client structure and improve product structure, the
company has been actively develop the overseas market, and the products have been exported to
more than 130 countries and regions.
HEFEI MEILING CO., LTD. Annual Report 2017
Section IV. Discussion and Analysis of the Operation
I. Introduction
2017 was the second year of the Company’s “13th Five-Year” plan and was also a year in
which all Meiling people were making strides. Under the guidance of the “Meiling Dream” and
“Double Three One Core” strategy, the Company adhered to the operating principles of
“Product Leading, Manufacturing Breakthrough, Marketing Force, and Mechanism Guarantee”,
overcame the unfavorable factors including stagflation of industry, the rise of raw material costs,
labor costs, and transportation costs, and achieved significant growth in sales revenue through the
innovation of mechanism management, activation of internal teams, benchmarking learning from
industry-leading competitors, and the re-establishment of key capabilities. Among them, in terms of
product leading, the Company’s refrigerator (freezer) products significantly increased the ratio in
air-cooling, variable-frequency, intelligent, fresh-keeping, and large-volume, accelerated the
upgrading of products, firstly launched the “M Fresh Life” series refrigerator with water
molecule activation and preservation technology in the worldwide, and further enhanced the
product differentiation competitiveness. In terms of manufacturing breakthroughs, the high-speed
production line of its subsidiary Jiangxi Meiling was successfully put into operation, the efficiency
of the large-scale refrigerators’ smart manufacturing production was outstanding, and
breakthroughs were made in the “less labor project”. In terms of marketing force, the sales
revenue of the Company’s refrigerators (freezers) and air conditioners at home and abroad, and
the washing machines and small household electrical appliances had a growth trend shoulder to
shoulder, and the steady development of biomedical and fresh e-commerce further consolidated the
Company’s industry position. In the aspect of mechanism guarantee, the team has been greatly
activated and the supporting responsibility mechanism has been gradually improved by signing
medium and long term incentive plans with major business units. In addition, the Company has
firmly grasped the mainstream of consumption upgrading, adhered to technological innovation, and
significantly improved the Company’s product structure transformation and upgrading.
II. Main Business Analysis
(I) Overview
Shows no difference with the summary disclosed in Report of the Board of Director
□Yes √No
1. Introduction
During the reporting period, the Company achieved a year-on-year growth in both online and
offline sales. In the case of stagflation in the refrigerator industry, the domestic sale of the
HEFEI MEILING CO., LTD. Annual Report 2017
Company’s refrigerators outperformed the market and achieved a steady increase in market share
and average price, the air conditioner achieved a rapid and substantial growth, the export sales of
refrigerators (freezers), air conditioners maintained a momentum of rapid growth, the sales of main
products all outperformed the broader market; the washing machines maintained a growth in
business, and also reached an agreement with Candy Group in Italy to set up a washing machine
joint venture, which enhanced the competitiveness of the Company’s washing machine products;
the small home appliances, biomedical and fresh e-commerce businesses rose abruptly based on
their accumulated strengths with a rapid growth in business synchronization.
In 2017, refrigerator and freezer business achieved revenue of approximately RMB 7.465
billion, 11.77% increased on a y-o-y basis; air-conditioning business achieved revenue of
approximately RMB 7.005 billion, 68.47% up y-o-y; washing machine business achieve revenue
around RMB 0.706 billion, with year-on-year growth of 38.92%; other business of kitchen & toilet
products and small home appliance have revenue approximately as RMB 0.838 billion with 23.16%
up y-o-y. At the same time, revenue from exportation gains RMB 3.841 billion, a y-o-y growth of
31.69%.
(1)The domestic sale of the Company’s refrigerators and washing machines outperformed the
market, the product structure of freezers and air conditioners was optimized and upgraded, and the
market position was further consolidated and improved. From the offline market sales, CMM’s
data showed that the retail sales of refrigerator industry slightly rose by 0.62% on a year-on-year
basis, but the retail sales of the Company’s refrigerator rose by 2.63% on a year-on-year basis; the
retail sales of freezer industry declined by 11.20% on a year-on-year basis, and the retail sales of the
Company’s freezer declined by 15.24% on a year-on-year basis; the retail sales of air-conditioner
industry rose by 12.55% on a year-on-year basis, but the retail sales of the Company’s air
conditioner rose by 7.01% on a year-on-year basis; the retail sales of washing machine industry
slightly rose by 0.57% on a year-on-year basis, but the retail sales of the Company’s washing
machine rose by 2.71% on a year-on-year basis. At the same time, CMM’s data also showed that
the market share of the Company’s refrigerator retail sales reached 8.82%, rising by 0.12% on a
year-on-year basis; the market share of the Company’s freezer retail sales reached 9.29%, an
increase of 0.43% on a year-on-year basis; and the market shares of air conditioner and washing
machine basically held the line compared with the same period of last year.
From the online sales, the company’s online refrigerator and air conditioning sales have
further enlarged the results. AVC (All View Cloud) data show that the retail sales of refrigerator
industry rose by 57.85% on a year-on-year basis; the retail sales of the company’s refrigerator rose
by 85.84% on a year-on-year basis; the retail sales of air-conditioning industry rose by 114.77% on
a year-on-year basis; the retail sales of the company’s air-conditioning rose by 95.94% on a
year-on-year basis. At the same time, as for the online markets, AVC data show that the market
share of the company’s refrigerator retail sales reached 8.25%, an increase of 1.24% on a
year-on-year basis; the market share of the company’s freezer retail sales reached 6.63%, an
decrease of 3.85% on a year-on-year basis; and the market shares of air conditioning, and washing
machine retail sales also increased on a year-on-year basis.
(2) As for the export business, the company's refrigerator and air-conditioning product lines
have continued to maintain a rapid growth like a few years ago. According to the customs data and
HEFEI MEILING CO., LTD. Annual Report 2017
statistics, the amount of exports of refrigerator industry rose by 17.59% on a year-on-year basis, the
company's amount of exports rose by 16.11% on a year-on-year basis; the amount of exports of air
conditioning industry rose by 5.06% on a year-on-year basis, the amount of exports of the
company's air conditioning rose by 56.14% on a year-on-year basis, the export growth of the
company’s refrigerator and air conditioning exceeded the industry. In terms of the market shares,
according to the customs data and statistics, the market share of the company’s refrigerator
exports reached 5.81%, basically the same as last year; the market share of freezer exports reached
2.74%, an decrease of 0.23% on a year-on-year basis; the market share of air conditioning exports
reached 1.96%, an increase of 0.64% on a year-on-year basis;
2. Progress of the company's development strategy and business plan during the
reporting period
During the reporting period, in accordance with the development strategy and operating
principles of “product leading, marketing force, manufacturing breakthrough, and mechanism
protection” in 2017, the company has deployed the annual business plan, arranged the production
and management, and carried out the following activities:
(1) Product leading
The Company carried out the product upgrades based on the intelligent and variable frequency
product strategy, took energy efficiency upgrades and preservation as breakthroughs so as to
comprehensively increase the competitiveness of products and further strengthen the advantages of
variable frequency differentiation. During the reporting period, the proportions of the Company’s
intelligent & variable frequency refrigerators, and variable frequency air conditioners all achieved
significant growth, and the product upgrades achieved the expected goals. At the same time, the
competition for new energy efficiency in the industry became normalized, and the Company firmly
grasped the market opportunities for energy efficiency upgrades and improved the product
competitiveness.
In terms of technology research, the Company insisted on the upgrades of basic research on
core technology, maintained the existing technological advantages, expanded the innovation and
upgrades in technology field, achieved differentiated breakthroughs, and launched high-end
products to lead the industry. In November 2017, the Company released the “M Fresh Life”
series refrigerators equipped with the “water molecule activation and preservation technology”,
which adopted the original water molecule activation and preservation technology to activate the
water molecules by vibrating the moisture in the food, and then the activated water molecules
generated resonance force, fission force and penetration force to have a long-acting and deep-level
control to the freshness and completely solve the existing problems of traditional refrigerators in
single space, short fresh-keeping time, nutrition loss and much bloody water in frozen and thawed
process, slow cooling speed, and poor fresh-keeping in bags, and so on, fully satisfied the high-end
needs of maximumly guaranteeing the food material quality and no loss of nutrition, increasingly
favored by high-end user groups, and once again raised the preservation revolution in the
refrigerator industry. At present, the Company’s original water molecule activation and
preservation technology has passed the national-level technology certification and is at the
international advanced level. In addition, the “M Fresh Life” refrigerator has won two world
HEFEI MEILING CO., LTD. Annual Report 2017
record awards, “the domestic refrigerator with the longest preservation time in the world” and
“the domestic refrigerator with the minimum nutrition loss rate in the world”.
(2) Marketing force
In terms of domestic sales, the Company focused on the marketing culture concept of
“integrity, service, profession, and passion”, changed concepts and strengthened service
awareness; motivated by the slogan of “the most active brand at terminal, and the most diligent
marketer in the market”, the Company’s marketing ability was significantly improved, all
product lines achieved a healthy and continuous growth. Among them, the increase in refrigerators
was higher than that of the industry, the air-conditioning products had an outbreak of increase, the
freezers achieved an upgrade and reversed the downward trend, the washing machines achieved
cooperation with Candy Group, small home appliances had a significant growth, and the biomedical
and fresh e-commerce business developed steadily.
In overseas markets, the sales volume and average price of products also made new
breakthroughs, and the export business continued to maintain a growth trend.
(3) Manufacturing breakthrough
In December 2017, the intelligent production line for annually producing 1 million sets of
environmental protection and energy-saving refrigerators of the subsidiary company Jiangxi
Meiling was put into production. The project is a major move and layout for Meiling to achieve
transformation and upgrade and realize strategic goals. The production line is also a representative
of the high level, high efficiency, and high production quality in the domestic industry, and is a solid
move for Meiling to transform from traditional manufacturing to intelligent manufacturing. .
During the reporting period, the five major projects of Jiangxi Meiling, including Intelligent
Production Line Construction Project, Large Refrigerator Efficiency Improvement Project,
Recruitment Workers Improvement Project, 300L+ Large Refrigerator Replacement Key Project,
and Smart Production Project were implemented in an orderly manner. At the same time, the
Company’s intelligent manufacturing capacity enhancement project was progressing smoothly, the
completion of the benchmarking line project pilot construction of phase I and the benchmarking
automation project duplication and generic benchmarking project of phase II pulled the entire
promotion of the Company’s manufacturing efficiency, the order delivery rate of refrigerators and
freezers in domestic sales and the delivery satisfaction rate of overseas customers in 2017 have
increased on a year-on-year basis.
(4) Mechanism guarantee
With respect to mechanism guarantee, the Company further implemented the incentive
mechanism, activated the team, designed multi-level and multi-form incentive mechanisms for
different industries and units, continued to explore team potential, and improved the Company’s
competitiveness; in the talent mechanism, the Company continued to promote the 100 people
echelon project to select and train all kinds of key employees; in the innovation mechanism, the
Company brought the innovative spirit and fault-tolerant mechanism into the relevant management
system; in the accountability mechanism, the Company combined with the accountability system
and further defined the boundary of departmental functional responsibilities, and embedded ARCI
HEFEI MEILING CO., LTD. Annual Report 2017
rule into the system documents; in the benchmarking mechanism, the Company confirmed the
benchmarking projects and actively promoted by the establishment of working mechanism.
In addition, with the advent of intelligent internet, sharing economy and personalized
consumption, the traditional retail model was unable to meet new consumer demands. Under the
background of the transformation and upgrading of intelligent manufacturing, the Company actively
explored the future development road, in January 2018, the Company signed a strategic cooperation
agreement with the artificial intelligence leading enterprise Deep Blue Technology (Shanghai) Co.,
Ltd. to jointly build a new intelligent ecology. Two parties cooperated and released the smart retail
unmanned refrigerators, through the artificial intelligence, machine vision, biometric identification,
bio-payment, settlement systems, and other solutions for shared devices, the consumer can purchase
and fetch the goods and close the door only by palm print identification after the registration for the
first time, which greatly improved the user experience and shopping efficiency.
This strategic cooperation was based on the strong support of the Company’s intelligent
manufacturing. Through the rapid blocking out of smart retail, Meiling shall achieve the further
implementation and layout of fresh e-commerce, establish a new nationwide smart terminal
platform, and build a new intelligent ecosystem for the rapid energy storage of the industry chain. In
the future, the Company will promote the rapid application and popularization of artificial
intelligence new retail technologies, allow the Company’s “Smart Home Ecosystem Project” to
quickly take root, and provide consumers with more personalized services by relying on smart big
data analysis technology.
On the whole, in 2017, the industry launched a vigorous wave of product upgrades in the face
of intensified competition, consumption upgrades, and quality consumption brought by update
demand. Through the joint efforts of all Meiling people, on the one hand, the Company
outperformed the market in product sales, the product structure upgraded significantly, the
proportion of variable frequency and intelligent products had a continuous increase, especially the
release of “M Fresh Life” series refrigerators raised a wave of preservation technology in the
industry and led a preservation revolution in the industry, and it is also an important product for the
Company to transform to the high-end consumer market. On the other hand, the Company
continued to focus on the “Smart Home Ecosystem Project”, and actively explored a new path
for the transformation and upgrading of home appliance enterprises under the further development
of internet technology, taking its own hardware products as the terminal, and focusing on food, air,
water and other requirements for the exploration of new business models.
(II) Revenue and cost
1. Constitute of operation revenue
In RMB
2017
Increase/decrea
Ratio in operation Ratio in operation
Amount Amount se y-o-y
revenue revenue
Total of operation
16,797,436,757.36 100% 12,526,710,867.49 100% 34.09%
revenue
HEFEI MEILING CO., LTD. Annual Report 2017
According to industries
Manufacture of 33.17%
household 16,013,327,582.28 95.33% 12,025,103,352.55 96.00%
appliances
Other business 784,109,175.08 4.67% 501,607,514.94 4.00% 56.32%
According to products
Refrigerator, freezer 7,464,503,149.31 44.44% 6,678,568,374.39 53.32% 11.77%
Air-conditioning 7,005,144,650.67 41.70% 4,158,164,312.32 33.19% 68.47%
Washing machine 705,875,802.77 4.20% 508,133,090.63 4.06% 38.92%
Small appliance and 26.73%
536,291,620.64 3.19% 423,162,351.81 3.38%
kitchen
Other products 301,512,358.89 1.80% 257,075,223.40 2.05% 17.29%
Other business 784,109,175.08 4.67% 501,607,514.94 4.00% 56.32%
According to region
Domestic 12,941,622,221.55 77.05% 9,603,142,676.83 76.66% 34.76%
Foreign 3,855,814,535.81 22.95% 2,923,568,190.66 23.34% 31.89%
2. About the industries, products, or regions accounting for over 10% of the company’s
operating income or operating profit
√ Applicable □Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
□ Yes √ No
In RMB
Increase/decrea
Increase/decrea Increase/decrea
Operating Gross profit se of gross
Operating cost se of operating se of operating
revenue ratio profit ratio
revenue y-o-y cost y-o-y
y-o-y
According to industries
Manufacture of
household 16,013,327,582.28 13,092,373,731.24 18.24% 33.17% 36.52% -2.01%
appliances
According to products
Refrigerator,
7,464,503,149.31 6,042,215,238.91 19.05% 11.77% 15.40% -2.55%
freezer
Air-conditioning 7,005,144,650.67 5,766,992,639.83 17.67% 68.47% 71.90% -1.65%
Small appliance 536,291,620.64 456,677,143.84 14.85% 26.73% 20.24% 4.61%
HEFEI MEILING CO., LTD. Annual Report 2017
and kitchen
According to region
Domestic 12,172,421,690.59 9,465,251,585.24 22.24% 33.64% 35.67% -1.16%
Foreign 3,840,905,891.69 3,627,122,146.00 5.57% 31.69% 38.78% -4.82%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year’s scope of period-end
□ Applicable √ Not applicable
3. Income from physical sales larger than income from labors
√ Yes □ No
Increase/decrease
Industries Item Unit 2017
y-o-y (%)
10 thousand
Sales volume 1,508.66 1,237.08 21.95%
pieces/set
Manufacture of
household 10 thousand
Production 1,547.89 1,253.24 23.51%
appliances pieces/set
industry
10 thousand
Inventory 169.85 130.62 30.03%
pieces/set
Reasons for y-o-y relevant data with over 30% changes
√ Applicable □ Not applicable
Subordinate wholly-owned subsidiary – Sichuan Changhong Air Conditioner Co., Ltd. (hereinafter referred to as
Changhong AC) have a certain reserve for the upcoming relocation, thus the inventory goes up from a year earlier.
4. Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
5. Constitute of operation cost
Industry classification
In RMB
2017
Increase/de
Ratio in
Industries Item Ratio in crease
Amount operation Amount
operation cost y-o-y
cost
Manufacture of
Raw material 12,170,622,123.33 92.96% 8,760,386,320.44 91.58% 1.38%
household appliances
HEFEI MEILING CO., LTD. Annual Report 2017
6. Whether the changes in the scope of consolidation in Reporting Period
√ Yes □ No
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII. Interests in other
entities” of “Section XI Financial Report”
7. Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
8. Major sales and main suppliers
(1) Major sales client of the Company
Total top five clients in sales (RMB) 5,993,839,490.34
Proportion in total annual sales volume for top five
35.68%
clients
Proportion of the related parties’ sales in total annual
23.18%
sales volume for top five clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client I 2,256,203,510.44 13.43%
2 Client II 1,407,238,139.85 8.38%
3 Client III 1,272,889,729.08 7.58%
4 Client IV 692,253,111.98 4.12%
5 Client V 365,254,998.99 2.17%
Total -- 5,993,839,490.34 35.68%
Other situation of main clients
□ Applicable √ Not applicable
(2) Main suppliers of the Company
Total purchase amount from top five suppliers
2,849,858,364.95
(RMB)
Proportion in total annual purchase amount for top
18.09%
five suppliers
Proportion of related party’s purchase in total annual
10.29%
purchase amount for top five suppliers
Information of top five suppliers of the Company
HEFEI MEILING CO., LTD. Annual Report 2017
Serial Name Sales (RMB) Proportion in total annual purchase
1 Supplier I 783,669,187.79 4.97%
2 Supplier II 690,886,554.31 4.39%
3 Supplier III 557,786,009.24 3.54%
4 Supplier IV 445,228,789.57 2.83%
5 Supplier V 372,287,824.04 2.36%
Total -- 2,849,858,364.95 18.09%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
(III) Expenses
In RMB
Increase/decr
2017 2016 Note of major changes
ease y-o-y
Sales expenses increased due to the
Sales expense 2,434,337,059.85 1,855,396,448.81 31.20%
increase of sales scale in the period
Management expense 496,931,743.04 472,146,980.73 5.25% --
Interest cost increased from a year
Financial expense -33,648,833.18 -139,879,189.92 75.94% earlier and change of the gains/losses
from exchange
Income tax expenses 20,520,373.53 29,044,015.72 -29.35% --
(IV) Investment in R&D
√ Applicable □Not applicable
In 2017, the Company insisted on the upgrade of fundamental research on core technology in
technical research, maintained its existing technological advantages, expanded the innovation and
upgrade in the technological field, made breakthroughs in differentiation, continued to promote
product upgrades, and led the development orientation in the industry.
In terms of the refrigerator, the Company focused on its technology planning and core
technology for technology development, and carried out the research on intelligent interaction
technology, food fresh keeping technology, energy saving and mute technology, wide rotation speed
variable frequency technology, air duct design technology, and vacuum insulation technology, etc.
The advent of “M Fresh Life” series refrigerator with the Company’s original “water
molecules activation and preservation technology” once again lifted a preservation revolution in
refrigerator industry, greatly promoted the Company’s brand influence and reputation, and became
a new start to Meiling’s transformation to high-end consumer market; in addition, in order to
realize the high-end transformation, technological innovation and industry leading by advancing the
follow-up research, popularization, and technology updates of intelligent and variable frequency
HEFEI MEILING CO., LTD. Annual Report 2017
products, the Company intensified the advance of research and development of a new generation of
CHiQ products, continued to vigorously promote 0.1 ℃ variable frequency series refrigerator and
realize the continuous increase in proportion of intelligent and variable frequency refrigerators and
variable frequency freezer, accelerated the popularization of medium and small air cooling
refrigerator, and realized the fast rise in proportion of air cooling refrigerator.
In air conditioning, according to the strategic planning of holistic intelligent air ecosphere, the
Company core with the technical strategic as intelligence and frequency conversion, carrying out
variable frequency control in depth, CFD&CAE simulation, intelligent voice, and basic core ability
construction as recognition and interaction etc. Focused on breakthroughs in user perception and
user experience, the Company completed the research on the fourth-generation intelligent and
comfortable precise temperature control technology platform and single-board and single-chip and
dual-drive technology platform, and the transformation applications on the product, mastered the
industry-leading control technology represented by PMV comfort control and natural wind control,
created super-energy-saving, super-comfortable, ultra-quiet and healthy air conditioner; the
Company carried out reliability and performance simulation for simulation technology by focusing
on compressor and system piping vibration, outdoor unit shutters and other harsh working
conditions to optimize the system and air duct of outdoor unit, reached the advanced level of
benchmarking industry, realized the product upgrades, and promoted the brand competitiveness.
The intelligent voice technology was successfully applied in the “slim waist” series air
conditioners represented by Q2F, resulting in the hot selling Changhong smart high-end products in
2017 and the great promotion of product image.
In terms of biopharmaceutical, the Company’s subsidiary Zhongke Meiling, a three board
listed company, greatly expanded the mobile and cryogenic application area with its own
advantages, and pioneered the compressor-free DW-HL1.8TL cryogenic storage tank. As the
world’s smallest portable ultra-low temperature product, it has achieved the rapid cooling and
adapted to a variety of power supplies, which refreshed the world’s perception and protected the
precious sample in the whole process of low-temperature storage. At the same time, through the use
of new technologies, Zhongke Meiling further developed energy-saving and noise-reducing variable
frequency ultra-low temperature series products and thoroughly implemented the green design
green corporate philosophy. In addition, the Company’s new refrigerator series products achieved
all-round uniform cooling which protected the long-term storage safety of the last link of the cold
chain storage system, and the products were sold all over the country. At present, all the products of
Zhongke Meiling are matched with remote monitoring systems, real-timely display the status of the
items in the box, achieved full-time and real-time monitoring to ensure the safety of the items in the
box.
R&D investment of the Company
2017 2016 Change ratio
Number of R&D (people) 1570 1204 30.40%
Ratio of number of R&D 14.29% 10.85% 3.44 percentage points up
R&D investment (Yuan) 761,572,843.03 680,286,093.75 11.95%
HEFEI MEILING CO., LTD. Annual Report 2017
R&D investment accounted
4.53% 5.43% 0.90 percent points down
for R&D income
R&D investment
116,704,686.42 62,282,986.30 87.38%
capitalization (Yuan)
Capitalization R&D
investment accounted for 15.32% 9.16% 6.16 percentage points up
R&D investment
The reason of great changes in the proportion of total R&D investment accounted for operation income than last
year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
√ Applicable □ Not applicable
The Company carried out the product upgrades based on the strategy of intelligent and variable frequency
products, and accelerated the distribution of new products, which further consolidated and improved its market
position. During the reporting period, the Company increased its investment in the technology research and the
development of refrigerator (freezer) and air conditioner and high value-added new products, especially the
development of intelligent product technology, variable frequency technology, and long-term preservation
technology (water molecule activation and preservation technology, etc.), resulting in a large increase in
capitalization amount of R&D input during the reporting period over the previous year.
(V) Cash flow
In RMB
Item 2017 2016 Y-o-y changes
Subtotal of cash in-flow
14,940,892,460.66 12,094,822,197.35 23.53%
from operation activity
Subtotal of cash out-flow
15,492,394,455.40 11,109,431,301.72 39.45%
from operation activity
Net cash flow from
-551,501,994.74 985,390,895.63 -155.97%
operation activity
Subtotal of cash in-flow
5,451,591,320.85 694,384,009.64 685.10%
from investment activity
Subtotal of cash out-flow
4,960,940,585.00 1,629,560,848.76 204.43%
from investment activity
Net cash flow from
490,650,735.85 -935,176,839.12 -152.47%
investment activity
Subtotal of cash in-flow
2,880,194,862.03 3,184,640,052.87 -9.56%
from financing activity
Subtotal of cash out-flow 1,673,559,914.76 1,418,900,313.83 17.95%
HEFEI MEILING CO., LTD. Annual Report 2017
from financing activity
Net cash flow from
1,206,634,947.27 1,765,739,739.04 -31.66%
financing activity
Net increased amount of
1,103,667,350.63 1,864,937,181.75 -40.82%
cash and cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
√ Applicable □Not applicable
Net cash flow from operation activity has major changes mainly because: the cash paid for
purchasing goods and receiving labor service I the period are over than that of cash received from
good sales and providing labor services.
Net cash flow from investment activity has major changes mainly because: cash from entrusted
financing collected in the period increased over that of last period.
Net cash flow from financing activity has major changes mainly because: cash received from
privately placement last period, while no such money occurred in the period.
Reasons of major difference between the cash flow of operation activity in report period and
net profit of the Company
√ Applicable □Not applicable
Operational receivable at period-end increased and Stock over that of period-beginning.
III. Analysis of the non-main business
√ Applicable □Not applicable
In RMB
Ratio in Whether be
Amount Note
total profit sustainable
The financing income and disposal of Hefei
Investment income 102,766,412.15 181.52% No
Wanmei Property in the period
Gains/losses from Loss of fair value changes in forward foreign
-11,888,232.24 -21.00% No
fair value changes exchange contract in the period
Accrual of the inventory falling price reserves
Asset impairment 50,913,972.56 89.93% No
in the period increased
Non-operating
5,671,791.04 10.02% Government subsidy received in the period No
income
Non-operating
222,977.82 0.39% The fines and arrears paid in the period No
expense
IV. Assets and liability
(I) Major changes of assets composition
HEFEI MEILING CO., LTD. Annual Report 2017
In RMB
End of 2017 End of 2016
Ratio
Ratio in Ratio in Notes of major changes
Amount Amount changes
total assets total assets
The entrusted financing collected
at expiration in the period and
Monetary fund 5,283,081,788.04 33.10% 4,058,869,234.63 32.45% 0.65%
collection of sales return for
goods increased
Sale scale increased in the period
Account receivable 1,780,416,509.02 11.15% 1,118,960,552.49 8.95% 2.20% and more ratio of credit customer
in sales
Inventory increased from a year
Inventory 2,918,100,650.27 18.28% 1,974,526,734.86 15.79% 2.49% earlier for the growth of sales in
the period
Part of the investment real estate
Investment real
9,569,711.72 0.06% 13,275,631.40 0.11% -0.05% are disposed by parent company
estate
in the period
Long-term equity No major changes
90,534,671.92 0.57% 81,643,631.37 0.65% -0.08%
investment
Fix assets 1,439,427,226.50 9.02% 1,204,093,169.72 9.63% -0.61% No major changes
Construction in Project of construction in
174,857,717.15 1.10% 107,037,409.95 0.86% 0.24%
progress progress increased in the period
Short-term loans from parent
Short-term loans 1,631,206,000.00 10.22% 288,343,724.73 2.31% 7.91%
company increased in the period
Long-term loans from parent
Long-term loans 253,160,000.00 1.59% 38,908,788.00 0.31% 1.28%
company increased in the period
(II) Assets and liability measured by fair value
√ Applicable □Not applicable
In RMB
Changes of fair Accumulative Devaluation
Amount at the Amount of Amount
value changes of fair of Amount in the
Items beginning purchase in of sale in
gains/losses in value reckoned withdrawing end of period
period the period the period
this period into equity in the period
Financial assets
1. Financial assets
measured by fair value
and whose change is 12,060,213.30 3,586,518.18 15,646,731.48
recorded in current gains
and losses (excluding
HEFEI MEILING CO., LTD. Annual Report 2017
derivative financial assets)
Subtotal of financial assets 12,060,213.30 3,586,518.18
15,646,731.48
Total 12,060,213.30 3,586,518.18 15,646,731.48
Financial liabilities 559,249.58 15,474,750.42 16,034,000.00
Whether there have major changes on measurement attributes for main assets of the Company in report period or
not
□Yes √ No
(III) Assets right restricted ended as reporting period
Ended as the reporting period, the Company has no major assets been closed down, detain, freeze or pledge and
guarantee
V. Investment
(I) Overall situation
√ Applicable □Not applicable
Investment in the same period of last
Investment in the reporting (RMB) Changes
year ( RMB)
992,441,301.50 202,350,000 390.46%
(II) The major equity investment obtained in the reporting period
√ Applicable □Not applicable
HEFEI MEILING CO., LTD. Annual Report 2017
In RMB
Date of
Name Metho Term Current Index of
Status as of Expect disclosure
of d of Amount of Sharehol Capital of Type of investment Whether disclosure (if
Principal business Partners the balance ed (if
invest invest investment ding sources invest products profit and litigation
sheet date return applicable
ee ment ment loss applicable
)
)
Meili
ng
CAN
Juchao
DY R&D, sales and after-sale services of Invested
Newly Self-o Candy Washing Not Website:
Washi washing machines; own and operate all 20 RMB 45 -1,252,23
establis 90,000,000 60% wned Hoover machine, applica No 2017-3-30 http://www.cni
ng types of goods and technology import years million in 0.18
hed capital Group S.r.l etc. ble nfo.com.cn(No
Machi & export business the Period
.: 2017-010)
ne
Co.,
Ltd.
Development, production and sales of In reporting
Juchao
computer hardware & software, period,
Chan Capital Website:
technology development, production Manageme invested 2nd
gmei invest http://www.cni
and sales of internet of Things Self-o nt team of Fresh phase Not 2016-1-8、
Techn ment, 20 -12,625,8 nfo.com.cn(No
equipment, development and 48,128,000 96.256% wned Changmei online capital and applica No 2016-11-26、
ology acquisi years 74.56 .: 2016-002,
maintenance of E-commerce software, capital Technolog retailers purchased ble 2017-11-10
Co., tion No.: 2016-068
information service, technical transfer y 14.424
Ltd. and No.:
and services of the internet, domestic million
2017-088)
AD designing, production, agencies Yuan equity
HEFEI MEILING CO., LTD. Annual Report 2017
and release, sales of prepackaged food, from natural
dairy products, general merchandise, persons,
alcohol, beverage and agricultural totally
products, crop planting, self-support 32.424
goods and technology import and million
export business(Except for items Yuan
prohibited or restricted by laws and contributed
regulations) accumulate.
Researching, development, 1. In
manufacturing sales and service of Zhongke reporting
cryogenic refrigeration equipment and Xianxing period,
products; development, production, (Beijing) transferee of
sales and service of medical device Assets the equity
class-II as 6858 medical treatment, Manageme (Zhongke
Zhon
low-temperature & cold-storage nt Co., Meiling) in
gke
equipment and instrument; computer Ltd.; Qu part of the Juchao
Meili Cryogeni
network system integration; intelligent Yaohui, staffs are Website:
ng c
product system integration; software Self-o Fang priced at Not http://www.cni
Cryog Acquis 66.8703 Long-t refrigerat 8,342,581. 2017-8-10、
development and technology 45,900,000 wned Rongxin, 1.63 applica No nfo.com.cn(No
enic ition % erm ion 41 8-22
information services; development, capital Xu Yuan/Share ble .: 2017-053
Techn equipme
production, sales and service of Shengchao (652,000 and No.:
ology nt
electronic products and automation , Hu Yuan in 2017-067)
Co.,
equipment; installation of refrigeration Xiaozong, total), 0.4
Ltd.
engineering equipment and their Yang million
debugging, maintenance and sales; Guangzha shares
sales service of cold chain transport o, Tao Yu transferred.
vehicle and refrigerated car; and Wang After
development, production, sales and Dongyong transferred,
service of cold chain incubator; shareholdin
HEFEI MEILING CO., LTD. Annual Report 2017
development, production, sales and g ratio of
service of cold storage and commercial Zhongke
cold chain products; development, Meiling by
production, sales and service of liquid the
nitrogen biological containers and Company
accessories; development, production, goes to
sales and service of household health 67.3514%
products, medical consumables, lab from
consumable and CCTV products; 66.7645%.
self-management and agency for 2. In
variety commerce and technology reporting
import and export business period,
Zhongke
Meiling has
additional
stock issue
tailed for
management
s, and the
Company
gives up the
right of
preemption,
shareholdin
g ratio of
Zhongke
Meiling by
the
Company
HEFEI MEILING CO., LTD. Annual Report 2017
downs to
66.8703%
from
67.3514%.
Construction of mechanical &
Sichu electrical installation of building,
an research, production, sales, installation Juchao
Chan and service of household appliance, Website:
Air Invested
ghong refrigeration & AC equipment, air Capital Self-o Not http://www.cni
20 condition RMB 650 140,358,9
Air source heat pump (cold water) unit, increm 850,000,000 100% wned N/A applica No 2017-8-10 nfo.com.cn(No
years ing million in 46.98
Condi water (ground) source heat pump unit ent capital ble .: 2017-053
products the Period
tionin & related accessories; equipment and No.:
g Co., leasing, spare parts processing and 2017-061)
Ltd. sales of metal materials (excluding
gold and silver)
Sichuan
Sichu Hongyun
an Venture
Venture business: act on behalf of Invested
Hong Equity
institution or individuals as other RMB 14
yun Investment
venture firms in a venture business; million in Juchao
New Manageme
investment advisory business; Capital Self-o Not the Period, Not Website:
–G nt Co.,
providing venture management increm 40,000,000 16% wned 8 years applicabl and applica -- No 2015-08-12 http://www.cni
IT Ltd., State
services for venture; participate in ent capital e cumulative ble nfo.com.cn(No
Ventu Developm
establishing a venture business and contributed .: 2017-035)
re ent &
management consulting organ for the RMB 26
Capit Investment
venture million
al Corp.,
Fund Sichuan
Technolog
HEFEI MEILING CO., LTD. Annual Report 2017
y Transfer
Center,
Sichuan
Changhon
g Electric
Co., Ltd.,
Chengdu
Tianfu
Innovation
Equity
Investment
Fund
Center
(Limited
Partner),
Sichuan
Changhon
g Jiahua
Digital
Technolog
y Co., Ltd.
Chen R&D, manufacture, sales, installation Chengdu
gdu and after-sale service of indoor air Dongyu Indoor
Guigu environment control system, air Yihao air Invested
Newly Self-o Not
Envir handling equipment, air-condition, Enterprise Long-t environ RMB 12.5 -882,354.
contrib 12,500,000 25% wned applica No - -
onme negative ion products, new air purifier Manageme erm ment million in
ution capital ble
ntal and accessories; sales of household nt control the Period
Tech. appliance, air source water heater, solar Consultant system
Co., photovoltaic power generation Partnershi
HEFEI MEILING CO., LTD. Annual Report 2017
Ltd. equipment, electro-mechanical p (LP),
equipment, electronic products and Chengdu
refrigeration plant; sales service of Jiaoda
system integration and installment; Real
equipment leasing, spare parts external Estate
processing service and sales of metal Developm
materials (less-common metals ent Co.,
excluded); development and sales of Ltd.,
software and technical service; Chengdu
consulting and service of enterprise Southwest
management. Jiaotong
University
Industry
(Group)
Co., Ltd.,
Sichuan
Shuye
Jiachen
Real
Estate
Developm
ent Co.,
Ltd.,
Shanghai
Zhongche
ng
Xindaya
Financial
Informatio
HEFEI MEILING CO., LTD. Annual Report 2017
n Service
Co., Ltd.
and
Mianyang
Ke
Chuang
Yuan
Investment
Holding
Co., Ltd
During the
reporting
period, the
Manufacturing and sales of the Company
following: air-conditioner, air cooler, invested
air purifier, heat pump, new wind RMB
Zhon
system equipment, electric heater, million in
gshan Zhuhai Home
electric fan, refrigerators and freezers, the first Juchao
Hong Samyou applianc
water heating, water filter, humidifier, Newly Self-o period, as Not Website:
you Environme Long-t es as
clothes dryer, dehumidifier, air water establis 24,000,000 60% wned the applica 1,798.64 No 2017-3-14 http://www.cni
Electr ntal erm air-condi
machine, electric fireplace, kitchen hed capital significant ble nfo.com.cn(No
ic Technolog tioner
appliance and tools as well as changes in .: 2017-006)
Co., y Co., Ltd. etc.
refrigerating unit and home appliances; the expected
Ltd.
sales of electric raw/auxiliary customers of
materials, electrical parts; goods and the joint
technology import & export business venture
company,
the future
business
HEFEI MEILING CO., LTD. Annual Report 2017
volume of
the joint
venture
company
may be
substantially
lower than
the
expectation.
In order to
avoid the
follow-up
investment
risk, the two
parties
agreed to
cancel the
joint venture
company
through
friendly
negotiations
, And start
the
cancellation
procedures
at beginning
of 2018.At
present, the
40
HEFEI MEILING CO., LTD. Annual Report 2017
industrial
and
commercial
cancellation
procedures
are being
performed.
Guan
gzhou Commodity wholesale trading (except Juchao
Invested
Chan for the licensed commodities); goods Newly Self-o Not Not Website:
Long-t RMB 1 -215,101.
ghong import & export business (exclusive establis 1,000,000 100% wned N/A applicabl applica No 2016-11-26 http://www.cni
erm million in
Trade monopoly commodities); technology hed capital e ble nfo.com.cn(No
the Period
Co., import & export .: 2016-068)
Ltd.
Chan
ghong Increasing Juchao
Refrigera
Ruba the capital Website:
Ruba tors, air
Electr Capital Self-o of 3,001,600 Not http://www.cni
Household appliances processing & $ 6.9761 mil General Long-t condition -400,790
ic increm 40% wned Yuan applica No 2017-8-10 nfo.com.cn(No
assembling lion Trading erm ers and .01
Comp ent capital ($0.4521mil ble .: 2017-053
FZE other
any(P lion ) in the and No.:
products
rivate period 2017-059)
)Ltd.
Chan Increasing Juchao
ghong Capital Self-o Not the capital Not Website:
Import trading, sales and service etc. of Long-t -6,242,82
Meili increm $ 6 million 100% wned N/A applicabl of19.9167 applica No 2016-3-25 http://www.cni
the household appliance erm 7.39
ng ent capital e million ble nfo.com.cn(No
Electr Yuan in the .: 2016-027
HEFEI MEILING CO., LTD. Annual Report 2017
ic period, and No.:
Indon completed 2016-033)
esia,P all capital
T investment
Zhon
gshan Juchao
Invested
Hongl Newly Self-o Not Not Website:
Domestic trading; goods and Long-t RMB 1 378,304.6
ing establis 1,000,000 100% wned N/A applicabl applica No 2016-11-26 http://www.cni
technology import & export erm million in
Trade hed capital e ble nfo.com.cn(No
the Period
Co.,Lt .: 2016-068)
d.
R&D, manufacture and sales of
Hebei household electrical apparatus,
Hong non-electric household appliances
mao (including gas heating water heater),
House furniture for kitchens and toilets, audio Househo Juchao
Invested
hold visual, radio and television equipment, Newly Self-o ld Not Website:
20 RMB 5 -2,277,38
Appli computer, communications and other establis 5,000,000 100% wned N/A Electric applica No 2017-7-22 http://www.cni
years million in 3.23
ance electronic devices, indoor hardware hed capital Applianc ble nfo.com.cn(No
the Period
Techn fitting (paint excluded), air and water es .: 2017-050)
ology purification equipment and weighing
Co., apparatus products; software and IT
Ltd. services; enterprise management
consulting services etc.
125,185,0
Total -- -- -- -- -- -- -- -- -- -- -- -- --
70.47
HEFEI MEILING CO., LTD. Annual Report 2017
(III) The major non-equity investment doing in the reporting period
√ Applicable □Not applicable
HEFEI MEILING CO., LTD. Annual Report 2017
In RMB
Industr Reasons for
y Accrued not
Accrued Actual
Inves Fixed involve Capit Realized Reaching
Investment Investment
tment Invest d in al Anticipated Income up to the Planned Disclosed Disclosed
Project Name Amount in this Amount up to the Project Schedule
Meth ments Invest Sourc Income the End of Schedule Date (if any) Index (if any)
Reporting Period End of Reporting
od or not ment e Reporting and
Period
Project Period Anticipated
s Income
The
intelligent
production
line for one
1 million sets of
Home million sets of Project is Juchao
environmental and
applian environmental under Website：
energy saving Self-
ce and planning www.cninfo.
refrigerator Self- owne Complete 40.27% of Not
Yes manufa 84,411,016.48 84,411,016.48 energy-saving during the 2017-3-14 com.cn
intelligent built d total investment Applicable
cturing refrigerators reporting ( Announcem
production line Fund
industr shall be period, no ent No.
construction project s
y formed after income yet. 2017-006)
(Note 1)
this project
being put into
operation
2 million sets of Home The company The Project is Juchao
Not
automatic washing Self- applian Self- successfully bade for production under 2017-3-30、 Website：
Yes 139,535,900 139,535,900 applicable
machines built ce owne the plant, office capacity of 2 planning 2017-4-14 www.cninfo.
production base manufa d building and land use million sets of during the com.cn
HEFEI MEILING CO., LTD. Annual Report 2017
project (Note 2) cturing Fund rights under the name automatic reporting (Announcem
industr s of Anhui Dongwei washing period, no ent No.
y Solar Technology Co., machine shall income yet. 2017-010,
Ltd. from the judicial be formed No.
sale with its own after this 2017-024)
funds of RMB134, project being
585,900; it will be the put into
implementation place operation
for washing machine
production base,
construction of the
project are in
processing recently
Total -- -- -- 223,946,916.48 223,946,916.48 -- -- -- -- -- -- --
Note 1: In order to meet the increasing market demands, make up for the insufficient capacity, enhance the operating efficiency of the company's production line, and
further promote the company's intelligent manufacturing process, the 28th meeting of the company's 8th Board of Directors approved and agreed the company’s
subsidiary Jiangxi Meiling Electric Appliance Co., Ltd. (Hereinafter referred to as “Jiangxi Meiling”) to invest RMB 209,600,000 to build 1 million sets of
environmental and energy saving refrigerator intelligent production line construction project, meanwhile, in order to ensure the smooth implementation of this
investment and construction project, agreed the company to increase capital of RMB 200 million to Jiangxi Meiling for investing in this project. See details on
“Securities Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the company disclosed in the form of announcement
(Announcement No. 2017-006) on March 14, 2017. Currently, the project has been completed on 20 December 2017 and put into production at end of 2017
Note 2: According to the company's strategic development plan, combined with the company's business needs, and in order to make up for the insufficient research
and manufacturing capacity of washing machine industry so as to meet the market demands, the 29th meeting of the company's 8th Board of Directors approved and
agreed the company’s to invest no more than RMB 371,210,000 in the construction of the 2 million sets of automatic washing machines production base project. In
addition, the 29th meeting of the company's 8th Board of Directors approved and agreed the company to successfully bid for the plant and office building (covering an
area of 86,087.65 square meters) and land use rights (covering an area of 116,233.61 square meters) under the name of Anhui Dongwei by public auction organized
by the court with its own funds of RMB134, 585,900, and use the plant and land as the washing machine production base for construction. See details on “Securities
HEFEI MEILING CO., LTD. Annual Report 2017
Times”, “China Securities Journal”, “Hong Kong Commercial Daily” and www.cninfo.com.cn that the company disclosed in the form of announcement
(Announcement No. 2017-010, No. 2017-024) on March 30, 2017 and April 14, 2017. The project construction is still under planning at present. Meanwhile,
according to the “Adjudication” issued by People’s Court of Shushan District, Hefei City the Company will proactively handling relevant procedures of ownership
transfer in aspect of lands and house assets
HEFEI MEILING CO., LTD. Annual Report 2017
(IV) Financial assets investment
1. Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
HEFEI MEILING CO., LTD. Annual Report 2017
2. Derivative investment
√ Applicable □Not applicable
In 10 thousand Yuan
Ratio of
Relat Whethe Amount Amount of investment
Investment Amount
ed r purchased in reserve for Investment amount at Actual
Initial amount at sales in the
Operator relati related Type Start date End date the devaluation of amount at period-end in gains/losses
investment period-begi reporting
onshi trade or reporting withdrawing period-end net assets of the in period
n period
p not period (if applicable) Company at
period-end
Forward
Financial foreign
N/A No 63,230.44 8 June 2016 26 June 2018 37,890.69 348,059.87 176,729.68 - 210,705.91 40.86% -2,222.26
institution exchange
contract
Total 63,230.44 -- -- 37,890.69 348,059.87 176,729.68 - 210,705.91 40.86% -2,222.26
Capital resource(if applicable) Self-owned capital
Lawsuit involved (if applicable) Not applicable
Disclosure date for approval from the
Board for investment of derivatives (if 30 March 2017
applicable)
Disclosure date for approval from
board of shareholders for investment 4 May 2017
of derivatives (if applicable)
Risk analysis and controlling measures 1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange
for derivatives holdings in the Period transactions are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign
(including but not limited to market exchange settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target
HEFEI MEILING CO., LTD. Annual Report 2017
risk, liquidity risk, credit risks, rate determined from the business, relying on the research of the foreign currency exchange rates, combined with prediction of consignments,
operation risk and law risks etc.) and burdening ability to price variations due to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and
make dynamic management to the business, to ensure reasonable profit level.
2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future import and export business, to meet the
requirements of the trade authenticity. In addition, forward foreign exchange transactions are processed with bank credit, will not affect
liquidity of company funds.
3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not be able to transact the original foreign
exchange contracts with contract price, which leads the risk of income uncertainty. So the Company chose Bank of China, Agricultural Bank
of China, Industrial and Commercial Bank of China, China Construction Bank and other Chinese Banks and part of the larger foreign Banks
(such as Deutsche Bank, UOB, Overseas Chinese Bank, HSBC, etc.) to conduct the trading of foreign exchange capital. These banks share a
solid strength and management whose failure and the risk of loss may bring to the Company is very low.
4. Operational risk: improper operation of the person in charge of forward foreign exchange transactions may cause related risk also. The
Company has formulated related management system which defines the operation process and responsibility to prevent and control risks.
5. The legal risks: unclear terms based in contract signed with banks for related transactions may lead legal risks when forward foreign
exchange transactions are processing. The Company will strengthen legal review, and choose good bank to carry out this kind of business as
to risk control.
Invested derivative products have The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards
changes in market price or fair value in for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices
the Period, as for analysis of the fair offered by bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given
value of derivatives, disclosed specific by outstanding contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as
applied methods and correlation trading financial assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is RMB
assumption and parameter setting -22,222,600 yuan.
Specific principle of the accounting
policy and calculation for derivatives
Not applicable
in the Period compared with last period
in aspect of major changes
Special opinion on derivative Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out its foreign
investment and risk control by exchange forward deals in strict compliance with the standardized operation guidelines for listed issuer on main board (2015 amended) issued
HEFEI MEILING CO., LTD. Annual Report 2017
independent directors by Shenzhen Stock Exchange, the Articles of Association, Authorization Management of the Company, Management System in relating to
Foreign Exchange Forward Deals of Hefei Meiling Co., Ltd., and these deals were conducted within the authorization scope under general
meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward
foreign exchange transactions are operates based on normal operating and production, which is relying on specific business operations with
purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange fund transaction has close concerned with daily
operation needs of the Company, and it benefit a lot in avoiding the exchange rate risks in import and exports business, and thus met its
requirement for operation development. There was no speculative operation, no break of relevant rules and regulations and relevant business
was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially minority
shareholders, were not prejudiced.
HEFEI MEILING CO., LTD. Annual Report 2017
(V) Application of raised proceeds
√ Applicable □Not applicable
1. Overall application of raised proceeds
√ Applicable □Not applicable
HEFEI MEILING CO., LTD. Annual Report 2017
In 10 thousand Yuan
Cumulative
Ratio of
Total raised raised
Total cumulative Total Usage of the retained
Total raised capital has capitals has Raised capitals
Total raised accumulative raised capitals accumulative raised capitals and what is
Year Way capital used purpose of purpose of idle for more
capitals raised capitals has purpose raised capitals expected to invested with
in Period uses changed uses than two years
used of uses unused those capitals
in Period changed in
changed
total
The raised funds that the
Company has not run out
will continue to complete
the corresponding
investment as planned. At
the same time, according
to the planning for equity
investment projects, it’s
agreed the Company to use
Non-public
the idle raised funds of no
2016 offering of 154,073.272276 17,051.635693 50,802.138752 0 0 0% 108,002.557762
more than RMB 1.06
A-shares
billion (The amount can be
rolled over) to invest in the
principal-protected
financial products after
being approved by the
Company’s board of
directors, board of
supervisors, and the
resolutions of
HEFEI MEILING CO., LTD. Annual Report 2017
shareholders’ meeting, and
after the independent
directors issuing
consentient independent
opinions and sponsor
agencies issuing
unanimous verification
opinions. The remaining
funds are deposited in the
designated raised capital
account.
Total -- 154,073.272276 17,051.635693 50,802.138752 0 0 0% 108,002.557762 --
Explanation on General usage of raised capital
Being deliberated and approved by 1st extraordinary shareholders meeting of 2016 and 17th session of 8th BOD, and verified by the Reply on Private Placement of Hefei Meiling Co.,
Ltd. (CSRC XK [2016] No.1396) issued from CSRC, the Company successfully offering 280,858,676 shares (A-stock) to 7 qualified investors, including Sichuan Changhong Electric
Co., Ltd. (hereinafter referred as to Sichuan Changhong), with price of 5.59 Yuan/Share and face value of 1.00 Yuan. According to the Verification Report XYZH/2016CDA40272
issued by Shine Wing Certified Public Accountants (LLP), total raised fund amounting to 1,569,999,998.84 Yuan, less vary issuance changes (tax included) 29,267,276.08 Yuan, raised
fund amounts to 1,540,732,722.76 Yuan.
Ended as 31 December 2017, actually fund of raised used accumulative amounted as 508,021,387.52 Yuan in total, balance of the account for fund raised counted as 1,080,025,577.62
Yuan (including interest income accumulative amounted as 9,115,551.55 Yuan and income from financial product at expiration 38,051,349.82 Yuan)
The Company accumulative used the fund raised amounted as 508,021,387.52 Yuan, the use of purpose including: intelligent construction has 82,689,804.44 Yuan in used; R&D
ability for intelligence and new products for intelligent household appliance has 122,950,679.31 Yuan in used; smart life project totally used 31,500,840.00 Yuan; used in current fund
supplementary counted as 270,880,063.77 Yuan (including saving interest of 147,341.01 Yuan)
2. Situation of committed project of raised proceed
√ Applicable □Not applicable
In 10 thousand Yuan
HEFEI MEILING CO., LTD. Annual Report 2017
Change the Cumulative Major
Investment Benefit Achieved
Committed investment project (Y/N) investment Date of reach a changes of
Total raised-fund Investment after Invested in the progress till end achieved expected
projects and over-raised fund (including amount till end predetermined state of project
commitment adjustment (1) period of period-end in the benefits
investment partially of Period-end use feasibility
(3)＝(2)/(1) Period (Y/N)
changed) (2) (Y/N)
Committed investment project
Intelligent
manufacturing
(Hefei) project:
Construction of intelligent end of 2018, Not
No 39,100.00 39,100.00 5,611.653743 8,268.980444 21.15% -- No
manufacturing project construction applicable
project of freezer
intelligent : end
of June 2018
Construction of intelligent
R&D capability and new
Not
products development of the No 55,900.00 55,900.00 10,089.917950 12,295.067931 21.99% End of 2018 -- No
applicable
intelligent appliance
technology
Not
Intelligent life project No 32,000.00 32,000.00 1,350.064000 3,150.084000 9.84% April 2021 -- No
applicable
Supplementary the floating Not
No 27,073.272276 27,073.272276 0 27,088.006377 100.05% -- -- No
capital applicable
Subtotal of committed
-- 154,073.272276 154,073.272276 17,051.635693 50,802.138752 32.97% -- -- -- --
investment project
Investment of the over-raised fund
HEFEI MEILING CO., LTD. Annual Report 2017
No over-raised fund in the Period
Payment of bank loans (if
-- -- -- -- -- -- -- -- -- --
applicable)
Supplementary the floating
-- -- -- -- -- -- -- -- -- --
capital (if applicable)
Subtotal of over-raised fund
-- -- -- -- -- -- -- -- -- --
investment
Total -- 154,073.272276 154,073.272276 17,051.635693 50,802.138752 32.97% -- -- -- --
1. In the \"intelligent manufacturing construction project\": the planning construction period of \"intelligent manufacturing (Hefei)
project\" is 3 years, during the reporting period, phase I and phase II has completed in construction, phase III till in process. The
planning and construction period of the “intelligent production line construction project for an annual increase of 600,000 sets
of medium and large volume environmental protection energy-saving freezers” is one year. During the reporting period,
because the Company’s No. 9 plant in freezer plant area where the project construction site locates has been used by the
subsidiary Zhongke Meiling Cryogenics Company Limited, the implementation of the project was influenced, and the project is
still in the stage of factory planning.
2. “Intelligent R&D ability building projects and new product development projects for intelligent home appliances”: the
planning and construction period of the “intelligent R&D ability building projects and new product development projects for
Conditions and reasons of failure to meet schedule or predicted
intelligent home appliances” is three years. During the reporting period, the construction of Inspection & Testing Center
income (by specific projects)
Building was underway, the project had a smooth progress as planned, it’s expected to be put into use in June 2018; completed
the development and marketing of intelligent second-generation products, and the research and development of intelligent
third-generation products has also completed the trial production in small batches and is planned to come into the market in the
second half of 2018; other projects are being implemented smoothly.
3. As the implementation subject of the Company’s “Intelligent Life Project”, Changmei Technology was established in April
2016. At present, Changmei Technology has three subordinate operating units in Mianyang, Hefei, and Chengdu, has arranged
more than 120 groups of offline intelligent terminal cold chain devices in more than 100 communities through the investment in
hardware facilities in Mianyang, Hefei, and Chengdu, and has established sorting and processing center and warehouses and
other supporting facilities. At the moment, Changmei Technology is investing in the grading hardware facilities of Chengdu and
HEFEI MEILING CO., LTD. Annual Report 2017
Hefei markets, and is actively exploring and cultivating market. The Company has the self-owned fresh e-commerce brand
“ifoodtube”, and the platform has more than 160,000 registered members; continue to develop, improve, and upgrade the online
software for intelligent life service platform. The Company will further strengthen the platform promotion, market
development, consumer experience, and city and community operations, and enhance the consumer stickiness and collective
orders from community consumers. It is the second year for the project construction in the period, Changmei Technology
achieved a revenue of 17.8102 million Yuan for the year, profit after tax amounted as -13.495 million Yuan.
4. Up to end of the period, investment in “Supplementary the floating capital” has over 100%, mainly due to the saving interest
in fund raised used in the project
Presentation on the major changes in project feasibility
Not applicable
Use progress of the raised-fund and purpose
Not applicable
Changes of the site for raised-fund investment projects
Not applicable
Adjustment of the raised-fund investment projects
Not applicable
Ended as 31 October 2016, the Company contributed self-raised fund 63,984,738.91 Yuan for the raised-fund investment
project, the money has replaced as 63,984,738.91 Yuan. Shine Wing CPA (LLP) made a special audit for pre-investment and
carried out an Assurance Report on Invested Self-raised fund to the Raised-fund Investment Before Hand
(XYZH/2016CD40285) (hereinafter referred as to Assurance Report). Replacement are as:
Up-front cost and replace of the raised-fund investment In 10 thousand Yuan
projects Commitment Investment of
Raised-fund Total capital for self-raised fund Amount
investment project investment raised-fund invested till end of 31 replaced
project October 2016
Construction of
intelligent
39,870.65 39,100.00 2,545.41 2,545.41
manufacturing
project
HEFEI MEILING CO., LTD. Annual Report 2017
Construction of
intelligent R&D
capability and new
products 55,900.00 55,900.00 2,053.06 2,053.06
development of the
intelligent appliance
technology
Intelligent life
32,076.00 32,000.00 1,800.00 1,800.00
project
Total 127,846.65 127,000.00 6,398.47 6,398.47
th th th
The replacement has been deliberated and approved by the 27 session of 8 BOD and 14 session of 8th supervisory
committee, independent directors are proposed an agreeable independent opinion, and sponsor institution carried out a
verification opinion without objection.
Supplement working capital temporary with idle raised-fund
Not applicable
Balance and reasons of the implementation of raised-fund
Not applicable
The raised-fund have not been used will continues to invested on the raised-fund projects in above mentioned table. Meanwhile,
according to the raised-fund investment plan, and been approved by the Board, the Board of supervisors and shareholder
general meeting, agreeable independent opinion from independent directors and with the verification opinion without objection
Use of funds and fund allocation for un-used raised-fund issued by sponsor institution, it’s agreed the Company to use the idle raised fund of no more than 1060 million Yuan (the
amount can be rolled over) to invest in principal-protected financial products, the remaining funds are deposit in the designated
raised capital account.
Use of the raised-fund has no changes till recently.
As for the relevant information of raised-fund disclosed, there is no any disclosure information that released without timely,
Use of raised-fund and problems or other condition in
true-ness, accurate and complete. The savings, usage, management and disclosure of the raised-fund have no violation
disclosure
conditions been found.
HEFEI MEILING CO., LTD. Annual Report 2017
3. The changed project of raised proceeds
□ Applicable √ Not applicable
No changes of raised proceeds in the Period.
VI. Sales of major assets and equity
(I) Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
(II) Sales of major equity
□ Applicable √ Not applicable
HEFEI MEILING CO., LTD. Annual Report 2017
VII. Analysis of main holding company and stock-jointly companies
√ Applicable □Not applicable
(I) Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name Type Main business Register capital Total assets Net Assets Operating revenue Operating profit Net profit
Research and development,
Zhongke Meiling Cryogenic manufacturing and sales of
Subsidiary 68,640,300 267,581,540.42 125,981,368.86 143,090,796.12 14,006,755.07 12,482,579.70
Technology Co., Ltd. ultra-low temperature
freezer
Jiangxi Meiling Electric Co., Manufacturing of
Subsidiary 50,000,000 302,652,075.40 91,097,257.64 650,405,956.72 4,483,610.83 4,485,610.83
Ltd. refrigeration and freezer
Mianyang Meiling Manufacturing of
Subsidiary 100,000,000 133,153,091.24 112,524,474.84 258,278,364.39 18,006,960.01 14,526,818.51
Refrigeration Co., Ltd. refrigeration and freezer
R&D, manufacturing and
Sichuan Changhong
Subsidiary domestic sales of 850,000,000 3,826,160,227.60 1,324,776,535.97 5,231,954,432.68 139,754,271.84 134,372,688.08
Air-conditioner Co., Ltd.
air-conditioner
R&D, manufacturing and
Zhongshan Changhong Electric
Subsidiary foreign sales of 184,000,000 1,553,869,205.95 164,256,327.28 2,438,254,177.62 -69,559,325.89 -73,032,392.20
Co., LTD
air-conditioner
Hefei Meiling Electronic
Subsidiary Sales of white goods 55,000,000 177,607,306.59 -213,787,648.75 1,292,408,149.65 95,065,629.48 95,050,334.75
Appliance Marketing Co., Ltd.
Hefei Meiling Group Holdings
Subsidiary Sales of white goods 80,000,000 846,963,391.93 -53,316,027.64 3,272,250,841.88 -125,482,336.11 -136,212,271.69
Limited
E-business of agricultural
Changmei Technology Co., Ltd. Subsidiary 50,000,000 21,504,575.03 13,218,093.00 17,810,174.84 -13,505,502.51 -13,495,001.36
products and fresh
Guangdong Changhong Ridian Subsidiary R&D, manufacturing and 83,000,000 317,391,106.28 120,644,345.85 475,756,667.69 15,039,984.08 11,526,478.55
HEFEI MEILING CO., LTD. Annual Report 2017
Technology Co., Ltd. sales of kitchen and toilet
products, small home
appliances and water
purifier
Research and development,
Meiling Candy Washing
Subsidiary and sales of Washing 150,000,000 186,922,762.75 72,912,949.70 277,854,553.21 -1,626,780.33 -2,087,050.30
machine Co., Ltd.
machine
HEFEI MEILING CO., LTD. Annual Report 2017
(II) Notes of holding and shareholding companies
√ Applicable □Not applicable
The method of
obtaining and
handling
Company Name The influence to the whole production and performance
subsidiaries
during the report
period
Controlling subsidiary of the Company, and established
jointly by the Company and Candy Group with registered
capital of 150 million Yuan. By making full use of the
production capacity, product development capabilities,
sales channels, manufacturing scale and quality control
Meiling CANDY Washing Machine
Investment and other advantages that the company and Candy Group
Co., Ltd.
have in washing machine so as to rapidly lay out the
washing machine market, expand the product market
shares of Meiling brand and Candy brand, and enhance the
company's profitability and comprehensive
competitiveness.
The Company’s holding subsidiary was jointly invested
and established by the subsidiary Zhongshan Changhong
Zhongshan Hongyou Electric Co.,
Investment and Zhuhai Samyou Environmental Technology Co., Ltd.
Ltd.
(hereinafter referred to as “Samyou Environmental”), with
registered capital of 40 million Yuan.
Wholly-owned subsidiary of the Company, established by
Zhongshan Changhong –subsidiary of the Company, with
Guangzhou Changhong Trade Co.,
Investment one million Yuan contribution. The enterprise will enlarge
Ltd.
the foreign sales for the Company in aspect of air
conditioner products
Wholly-owned subsidiary of the Company, established by
Zhongshan Hongling Trade Co., Changhong Ridian Company –subsidiary of the Company,
Investment
Ltd. with one million Yuan contribution. The enterprise will
enlarge the sales of small household appliance aboard
The Company’s subsidiary was invested and established
by the subsidiary Changhong Ridian Company, with
registered capital of 5 million Yuan. The establishment of
Hebei Hongmao Household this company is conducive to the Company seizing the
Investment
Appliance Technology Co., Ltd. national “coal to gas” policy dividend and gas heating
water heater market opportunities to build a gas heating
water heater product line and further expand the
Company’s kitchen and bath industry.
Xi’an Meizhilai Electric Appliance A little effect on the overall production and operation and
Clearing off
Marketing Co., Ltd. performance of the company
HEFEI MEILING CO., LTD. Annual Report 2017
Hefei Meiling White Appliance Marketing Co., A little effect on the overall production and operation and
Clearing off
Ltd. performance of the company
Hohhot Xiangyou Electric A little effect on the overall production and operation and
Clearing off
Appliance Marketing Co., Ltd. performance of the company
Urumchi Meiling Electric A little effect on the overall production and operation and
Clearing off
Appliance Marketing Co., Ltd. performance of the company
Lanzhou Meizhilai Electric A little effect on the overall production and operation and
Clearing off
Appliance Marketing Co., Ltd. performance of the company
Mianyang Meiling Electric A little effect on the overall production and operation and
Clearing off
Appliance Marketing Co., Ltd. performance of the company
(III) Notes of holding and shareholding companies: Nil
The Company has no major holding and stock-jointly enterprise should be disclosed in the period
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
(I) Competition pattern and development trend
1. Competitive landscape: oligopoly seeks hegemony, reshuffle continues
The current all walks of life have entered a period of mega competition: first is overspeed, the product
development and new business models have very fast update speed; second is breaking bounds, different
industries penetrate and compete among each other; third is ultrahigh, the demographic dividend and raw material
dividends disappear, bulk raw material prices rise, and costs raise; fourth is super change, subversive changes may
occur at any time.
The home appliance industry has shifted from large-scale growth to aggressive growth. The competition trend of
household appliance oligopoly is more and more obvious; the shuffle among the giants is inevitable. The market
competition pattern will be more intense; the shuffle will spread bi-directionally from the home appliance retail
channel and home appliance manufacturing system, and show the new situation of oligopoly and tycoon
competition. At the same time, influenced by the national supply side reform and industrial restructuring, the raw
materials begin to sharply rise in price, the logistics industry would raise costs because of \"governing ultra\", and
transport costs of home appliances significantly increase. At the same time, with the introduction of national
inclusive policy, home appliance industry will bid farewell to low price competition and gradually return to the
rational value competition.
2. Technical variables: artificial intelligence, market detonation
Internet of Things, artificial intelligence, and life technology are the several major directions for the future
development of human society. In the home appliance industry, technological innovation has become the leading,
HEFEI MEILING CO., LTD. Annual Report 2017
as the drive capability of technological innovation becomes more and more important in the home appliance
industry competition, especially the guide of new technologies and new concepts in the first-line terminal market
will be favored by more and more enterprises. In addition, as the popularity of intelligence has suffered
homogeneous dilemma in the market and the development of the Internet has stepped into the depth, artificial
intelligence has become a new engine to accelerate the landing of smart home appliances and will give
differentiation advantages to different enterprises in the terminal market, thereby becoming an important engine to
pull the middle and high-end market consumption, it is expected to usher in a centralized detonation.
3. Product iteration: competitive and new products break through the bottleneck
Influenced by low price competition in the market, the function of many white products is not substantially
improved, but with the rise of middle and high-end consumer groups, especially the full release of quality,
high-end and fashion technology needs, the home appliances industry will usher in a new round of consumer
upgrades, the arrival of quality consumption era will promote the industry to transform and upgrade to high end
and intelligence.
Under the background of industrial restructuring and upgrading and products entering into the upgrading, the
home appliance market that takes competitive and new products as the principle thing tends to have more distinct
and clearer competition, but the competitiveness of many home appliance products is facing a new round of
bottleneck and homogenization challenge. So the competitiveness of home appliance products in the next stage
has to face a major breakthrough, and carry through the system innovations in quality, function, appearance,
technology and other aspects, not only pursuing the product pragmatism but also giving the product a sense of
science and technology, which will be the direction for whole market product iterations.
4. Channel integration: online and offline, scene services
The Internet has entered the deep water area; the user growth rate has slowed down significantly. Pure online price
war and other strategies have begun to fail, and it is more and more difficult to obtain incremental users. The
integration of online and offline channels has become the development direction of household appliance
enterprises, its core is that the household appliance enterprises must have the ability to service users. How to make
full use of and integrate resources and advantages from different online and offline channels, complete the
integration of enterprise marketing, product promotion and user needs, reinforce and strengthen its own ability to
enhance customer service capabilities, and thus really jump out of the channel dispute and return to the rapid
landing of products and the strong activation of user demands becomes the must choice for enterprises.
5. Internationalization: global mergers and acquisitions, capital driving
Internationalization is the need adapt to the times, the internationalization of white goods industry will be
particularly prominent, especially the global capital mergers and acquisitions can not only quickly enhance the
enterprises’ brand influence and industry status in the global market, but also promote the growth in overseas
markets by the domestic and overseas resources integration and market development. In addition, the global
capital mergers and acquisitions has not only become a new driving force for the enterprises’ growth, but also can
HEFEI MEILING CO., LTD. Annual Report 2017
give attention and influence to enterprises in the new competitive track.
(II) Development strategy
1. Vision
Be a leading brand in China, World Class and respectable household appliance enterprise.
2. Strategic thought
In 2011, the board of directors of the company proposed the strategic guiding thoughts of \"Meiling Dream\" and
\"Double Three Strategy\", and upgraded the original \"Double Three Strategy\" to \"Double Three One Core
Strategy\", Double Three refers to three core strategies which are product strategy, talent strategy, and cost
leadership strategy and three significant strategies which are market strategy, brand strategy, and
internationalization strategy, One Core refers to intelligentization.
In the next few years, the company will stand correctly, accurately and firmly in the draughts of industry, market
and reformation, continue to promote the six innovations so that the company shall step forward to the direction of
\"Meiling Dream\", and strive to create another Meiling by 2020.
3. Strategic thinking and targets
By \"two insists\", \"two adheres\" and \"two transformations\" (i.e. insist on product doctrine and technology driven,
insist on cultural development and institutional innovation; adhere to domestic and overseas markets, adhere to
talent and brand strategy; transform from single to diversification, transform from B2C to 020 and C2B), the
company has strived to create another Meiling in scale, production line and organization flow by 2020. Details
include: the first is to create another Meiling in scale, i.e. to achieve the annual sales revenue of 20 billion Yuan,
and double the net assets; the second is to create another Meiling in production line, i.e. to enlarge the market
share of main products of refrigeration, freezer and air conditioner, the washing machine, kitchen and toilet
products and small home appliances comes to new main products of the Company, driven the profit mode
upgrading and transform by laying out new business of fresh E-business and bio-medical; and thirdly, create
another Meiling in organization procedures.
(III) Business plan
1. Business objective
With macro economy entering the new normal, fierce competition from various brands in the household
appliances industry and rising raw material prices, in 2018, under the leadership of the board of directors,
the Company will strive to achieve an annual growth of more than 10% in operating income over the
previous year, and an increase of more than 800% in net profit attributable to the parent company over the
previous year. In 2017, the Company’s operating income has reached 167.97 hundred million Yuan. In 2018,
the Company will focus on improving profitability while ensuring a proper increase in revenue scale.
HEFEI MEILING CO., LTD. Annual Report 2017
2. Operating principles
The Company’s operating principles in 2018 are ”product leading, marketing transformation, efficiency promotion
and team activation\"
Product leading: The Company satisfied the needs of product upgrades, consumption upgrades, and high-end
breakthroughs through the promotion of quality, taste, and brand. Meanwhile, the Company achieved the
products’ easy manufacturing and easy maintenance through the product platformization, serialization; parts
standardization, generalization, and modularization, that is “five -ization and two easy”. The Company continued
to adhere to intelligent and variable frequency strategies, and firmly grasp the “fresh-keeping” leading technology.
In 2018, the Company will continue to promote the development of smart products and variable frequency, M
fresh life refrigerator and freezer, and large-capacity refrigerators, increase cost control, enhanced product
appearance competitiveness, and achieve product serialization, make breakthroughs in the market and business
models, and continue to increase the proportion of variable frequency, intelligence, and preservation, and the
differentiated competition.
Marketing transformation: Digitalization is the core of the traditional marketing business transformation,
reconstruct the three major systems by digitalization, namely, establishing a marketing management system with
terminal retail as the core, establishing a value management system with retail price as the core, and establishing
an operation management system with customer’s business inventory as the core. At the same time, in the
domestic market, on the one hand, achieve value transformation by adjusting the structure, raising the average
price, and increasing the share, on the other hand, promote channel transformation by boosting and implementing
O2O business and implementing O2O collaboration from product and value chain access, benefit sharing, and
organizational guarantee.
In addition, in the overseas market, further increase the product development and planning of mid- and high-end
refrigerators, promote the sales structure, improve the average sales price, and increase the profitability; transform
from the single pursuit of scale to the pursuit of both scale and profit, and from the order driving to market driving;
gradually increase the team and product investments in brand, and promote the construction of overseas own
brands.
Efficiency promotion: Fully promote the intelligent manufacturing project, take the promotion of inventory
turnover as the core goal, optimize the process, implement the process reengineering, form the solutions, and
implement by means of technology, informatization, tools, etc., constantly optimize the operating system, and
promote the overall operational efficiency. Meanwhile, the Company will further enhance the organizational
efficiency through organization model innovation (product management body + business synergy), accountability
culture development and process improvement, and enhance the operational efficiency through continuous
management benchmarking promotion. In addition, the Company will also further streamline the existing business
processes through the marketing business information platform construction, and get through to the marketing
transactions, retail and customer inventory and internal inventory management so as to lay the foundation for the
establishment of new business models and the promotion of follow-up supply chain management level of the
HEFEI MEILING CO., LTD. Annual Report 2017
Company.
Team activation: Inspire the team’s vitality through the innovative incentive mechanism design; promote the
organizational atmosphere through the continuous corporate culture publicizing, training, propagation and
guidance.
3. Market strategy
(1) Refrigerator (freezer)
Continue to adhere to the intelligence and frequency two core product strategy, speed up the development and
upgrading of a new generation of intelligent product, implement the company's intelligent strategy, and enhance
the proportion of inverter products. Vigorously invest in basic technology research and product upgrading,
continue to carry out intelligence, frequency, forced air cooling, fresh-keeping and other technical researches,
maintain technology-leading in the industry, promote the company's product structure to upgrade to high end and
intelligence, and drive the company's industrial transformation and upgrading; At the same time, implement the
“five -ization and two easy”, “quality, taste and brand”, “intelligent production”, comprehensively improve the
efficiency and quality, reduce the product costs and enhance the product competitiveness. In domestic and
overseas market, realize the transformation of marketing around value, strengthen the domestic sales channel
capacity building, strengthen the online and offline synergy, and increase the competitiveness.
The domestic market takes frequency leading, intelligent pilot, multi-door becoming stronger, back to back getting
bigger, air-cooling jump start as the thinking, makes reasonable planning, promote the products’ combination
ability, and enhance the domestic sales capacity by adjusting the product structure. Regarding the channel,
enhance the offline terminal sales ability through the price management, promotion management, user experience
management and other means, at the same time, enhance the online sales ability by creating e-commerce hot
products, enhancing after-sales service experience, and collaborative operations among all product lines and other
means.
In overseas markets, on the one hand, strengthen the market research, market planning and market promotion
capabilities; continuously adjust the product mix, transform from low end, low cost, low value to middle end,
middle price, and middle value; while also pull through the overseas factories, R&D, sales and the
full-value-chain, reduce the manufacturing costs, reduce the logistics costs, improve the human performance and
material efficiency and enhance the overall competitiveness of overseas products; export the semi-knocked down
business through technology and process, and achieve the local production in overseas. On the other hand,
gradually increase the team and product investments in brand, and promote the construction of overseas own
brands, realize the local marketing of self-owned brands in overseas, and increase the brand added value.
HEFEI MEILING CO., LTD. Annual Report 2017
(2) Air conditioning
Based on the company's intelligent development strategy, the company’s air-conditioning business will seize class
A frequency, energy saving, intelligence, health and other industrial bright spots, focus on the company’s
\"Intelligent Home Eco-circle\" plan, develop intelligent terminals, provide healthy and intelligent air solutions,
gradually build the triune business development model of intelligent equipment + application scenarios + social
sharing, based on the product, strengthen the transformation of basic research and application, take user
experience as the core, promote the “quality, taste and brand”, grasp the industry trends, create the quality
products, and form the comprehensive competitiveness of the industry by quickly creating the central
air-conditioning capacity. In addition, the air conditioning industry will seize the opportunities of coal to
electricity and home appliances energy-saving leader policy, improve product layout, and promote enterprise
transformation.
(3) Washing machine
On the one hand, focus on the industrial trend-oriented products and take the differentiated products as
breakthroughs to comprehensively improve the product quality and increase the product competitiveness; steadily
open up channels, take the cross-product line target assessment as a means and link, promote the synergy among
various product line business teams, and achieve the channel synergy, terminal synergy, team synergy, promotion
synergy, and promotion synergy.
On the other hand, the Company and Candy Group has co-founded a joint venture company to engage in the R&D
and sales of washing machines and complete the product differentiation by making use of the respective R&D and
business advantages of both parties; expand channels, serve customers, give full play to synergistic advantages,
achieve rapid promotion of product image and sales volume, expand the Company’s product market share,
enhance the Company’s core competitiveness and brand influence, and promote the Company’s profitability and
overall competitiveness. The Company is striving to be ranked in the top 8 of the washing machine’s market
rankings in the next three to five years, be ranked 5th in domestic brands, and become a mid- and high-end
washing machine brand with the first-class quality.
(4) Kitchen and bath, small household appliances
Based on kitchen and bath, develop purified water business and build core business. Take the concept of “smart
kitchen” as the main line, respectively focus on the core business to create competitive industries, achieve the
linkage development of multi-product lines, and highlight the leading advantages of intelligent products. Adhere
to the road of brand, products, and terminal image, build the smart kitchen, take the intelligent and wall-hung
stove as the entry point, and achieve the rapid growth of kitchen and bath and small household appliances
business.
(5) Bio-medical care
Under the guidance of the development strategy of “relevant diversification based on biomedical field”, the
Company continues to focus on life sciences, smart cold chain, and family health businesses. On the one hand, the
HEFEI MEILING CO., LTD. Annual Report 2017
Company will base on the technology and brand advantages of the existing ultra-low equipment, take the market
demand as the leader, and further strengthen the research on core technologies and the upgrading of core products.
On the other hand, combined with the development trend of cold chain logistics industry and the current situation
of the aging of the domestic population and the market demand for the integration of family prevention, treatment
and recovery, the Company will give full play to its brand, technology, and channel advantages in the biomedical
field, steadily and rapidly expand the business to cold chain warehousing and home health services, and actively
promote the construction of intelligent terminal equipment so as to provide the society with more efficient and
convenient public services.
(6) Intelligent life new business model
Fresh E-commerce: relying on cold-chain smart devices to carry out the fresh direct sales demonstration, and
guide the city operators to join; cold chain intelligentization: relying on fresh direct sales demonstration to
develop cold-chain smart devices and create business solutions, and achieve the multi-city expansion;
E-commerce platform: relying on the intelligent expansion of cold chain to build a national urban life service
platform.
The above business plan and business objectives do not represent the listed company’s profit forecast of 2018,
whether it can be achieved depends on the changes in market condition, the efforts of management team and other
factors, there are a lot of uncertainties, investors should pay special attention to it.
(IV) Possible risks and countermeasures
In 2018, the competition in the home appliance market will become more intense, and the survival environment
for enterprises will be even worse. In the future, the Company will face serious risks such as the severe industrial
situation, the intensified competition, the labor shortage, and the rise of raw material prices, transportation costs
and human resource costs, the new business models and the impact of internet age.
1. Impact of intensifying industry competition and declining broader market
China's home appliance industry is a complete competing industry, there are many domestic and foreign-funded
household appliances manufacturers providing products with a higher degree of homogenization and fierce
competition. With the withdrawal of national preferential policy, the industry broader market continues to decline,
the industry enters into aggressive growth from large-scale growth, the industry brand concentration further
strengthens, and the competition among the brands shows a new situation of oligarchy and giant competition. In
recent years, the transformation and upgrading of the industry have been speeding up, and the competition for new
energy efficiency in the industry has been normalized. Whoever can faster and more accurately grasp the
opportunity of new energy efficiency switching will be able to enhance the competitiveness of products to a
greater extent. If you can't accurately judge and follow the market dynamics of the industry, you may be
eliminated.
HEFEI MEILING CO., LTD. Annual Report 2017
2. Impact of cross-border Internet industry and challenges of new business model
With the arrival of Internet era and artificial intelligence era, the Internet enterprises continue to cross boarder and
swarm into intelligent home fields, which intensifies competition in the industry, subversive changes may occur at
any time, and traditional household appliance enterprises are facing serious challenges. At the same time, under
the impact of Internet economy and new business model, the home appliance manufacturers are actively
promoting the transformation, new business model and new products emerge one after another in the home
appliance industry, the development of intelligent home appliances changes quickly, if unable to make rapid
response or catch up with the development trend, it may be easily replaced or even completely subverted. New
rules of the game bring strong sense of crisis and sense of urgency to the enterprises.
3. Pressure of raw material price rising and transportation costs rising
In 2017, influence by the supply-side reform and product structure adjustment, price of raw materials goes up
dramatically; at the same time, the transportation costs greatly rise due to logistics industry’s governance to “three
excesses”. It is expected that the raw material price and logistics transportation costs will continue to run at high
prices in 2018, but the end product selling price will be unchanged or will be difficult to digest the impact of
rising raw materials prices, logistics costs and other key resource costs, which will bring greater operating
pressure to the company and further affect the company's profitability.
4. Human resources risk
Household appliance industry is an industry with relatively intensive capital, technology, and labor. With the
gradual expansion of the company's business scope and scale, and the arrival of intelligent home appliances and
the impact of Internet, the company will greatly increase the demands for high-level management personnel,
technical personnel, and innovative talents, talent introduction becomes one of the key points for human resources
management, if it cannot effectively enhance the company's attraction to high-quality talents from various aspects,
the company's future development will be subject to constraints. At the same time, in its intelligent manufacturing
transformation period, the company needs higher requirements to the technical capacity and professional quality
of workers at the production line, the improvement for the company's product quality will be influenced if the
comprehensive quality of workers at the production line can not be enhanced. In addition, with the increase in
orders, the demand for workers at the production line is increasing, but affected by the supply and demand in labor
market and the continuous rising labor costs, the company's cost pressure will be further enlarged.
Faced with the above risks, the Company will raise awareness of risk prevention, and make overall arrangements
in the product, technology, and market in advance, focus on the smooth implementation of the Company's
intelligent manufacturing, intelligent research and development, and smart life projects, capture the consumers’
demands, accurately grasp the product development, strengthen the innovation and drive of the Company’s
intelligent, variable frequency, fresh-keeping and deep cooling technologies, accelerated the implementation of the
Company’s intelligent strategy, promote the Company’s transformation and upgrading from front-end
manufacturing and back-end products to intelligence, advance the Company’s transformation and upgrading, meet
HEFEI MEILING CO., LTD. Annual Report 2017
the new pattern of competition in the industry, and enhance the Company’s core competitiveness. At present, the
Company has completed the industrial layout for integrated white goods, and will further strengthen the synergy
among each production line, and create a comprehensive household appliance enterprise with strong
competitiveness. At the same time, the Company has focused on the “Smart Home Ecosystem” plan, actively
explored the new paths for the transformation and upgrading of home appliance enterprises under the in-depth
development of internet technology, taken its own hardware products as the terminal, focused on food, air, water
and other needs to explore the new business model, seized the consumers’ needs, and provided users with a
complete set of solutions for smart white goods system, and ultimately achieved the leap from “Meiling
manufacturing” to “Meiling intelligent manufacturing” and driven the transformation and upgrade of the
Company’s profit model.
On the other hand, the company will implement the business policy of \"product leading, marketing transformation,
efficiency upgrading and team activation \" under the leadership of the board of directors and under the guidance
of \"Meiling Dream\": take globalization as a platform, and intelligent and frequency transformation as a
breakthrough, adhere to the intelligent and variable frequency product strategy unswervingly, promote
technological innovation, strengthen the research and development to intelligence, frequency, fresh-keeping,
forced air cooling, create intelligent, high-end products and personalized products, and enhance the company's
product competitiveness from quality, high end and fashion technology. Speed up the integration between online
and offline channels; under the help of digital marketing transformation, and intelligence manufacturing, improve
the turnover of inventory rapidly; pay attention to the development of overseas market, actively exploit
construction of the self-owned brand aboard, and speed up the pace of overseas mergers and acquisition; through
the comprehensive boosting of intelligent manufacturing projects, the promotion of “five -ization and two easy”,
and the continuous industry benchmarking activities, the overall operational efficiency of the Company will be
fully enhanced; the internal organizational changes and management mechanism innovation will be fully utilized
to activate the team’s independent innovation capabilities, provide institutional guarantees for the Company’s
sustainable and healthy development, and realize a sound and sustainable development of the Company.
X. Reception of research, communication and interview
(I) In the report period, reception of research, communication and interview
√ Applicable □Not applicable
Time Way Type Basic situation index of investigation
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-1-12 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-1-18 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-2-15 Institute
research e=000521
HEFEI MEILING CO., LTD. Annual Report 2017
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-2-24 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-4-20 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-5-11 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-5-25 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-6-14 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-7-6 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-11-28 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-11-29 Institute
research e=000521
Field http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcod
2017-12-14 Institute
research e=000521
Reception (times)
Number of hospitality
Number of individual reception
Number of other reception N/A
Disclosed, released or let out major undisclosed
No
information
HEFEI MEILING CO., LTD. Annual Report 2017
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
(I) Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash
Dividend policy during the Reporting Period
√ Applicable □Not applicable
During the reporting period, the company has strictly executed the profit distribution policy in accordance with
the \" Articles of Association\", the formulation and implementation of the company's cash dividend policy are in
line with the provisions of \"Articles of Association\" and the requirements of the resolutions of shareholders'
meeting, the dividends standards and proportion have been definite and clear, relevant decision-making
procedures and mechanisms have been complete, the responsibilities of independent directors have been clear and
have played its due role, minority shareholders have had the opportunities to fully express their views and
aspirations, and the legitimate interests of minority shareholders have been maintained.
In the reporting period, the Company implemented Profit distribution plan for year of 2016, that is, distribute 0.6
Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on total share
capital 1,044,597,881 shares dated 31 December 2016 (including 881,733,881 shares of A-share and 162,864,000
shares of B-share), cash dividend of 62,675,872.86 Yuan was distributed in total.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement
Y
of Article of Association (Y/N):
Well-defined and clearly dividend standards and
Y
proportion (Y/N):
Completed relevant decision-making process and
Y
mechanism (Y/N):
Independent directors perform duties completely and
Y
play a proper role (Y/N):
Minority shareholders have opportunity to express
opinions and demands totally and their legal rights are Y
fully protected (Y/N):
Condition and procedures are compliance and
transparent while the cash bonus policy adjusted or Y
changed (Y/N):
(II) Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan
(pre-plan) in latest three years (including the reporting period)
HEFEI MEILING CO., LTD. Annual Report 2017
1. Profit distribution plan for year of 2015
Distribute 0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on
total share capital 763,739,205 shares dated 31 December 2015, cash dividend of 45,824,352.27 Yuan was
distributed in total.
2. Profit distribution plan for year of 2016
Distribute 0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on
total share capital 1,044,597,881 shares dated 31 December 2016, cash dividend of 62,675,872.86 Yuan was
distributed in total.
3. Profit distribution plan for year of 2017
Distribute 0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on
total share capital 1,044,597,881 shares dated 31 December 2017, cash dividend of 62,675,872.86 Yuan was
distributed in total.
The pre-plan had been deliberated and approved by the board of directors, and it need to be submitted the annual
shareholders’ general meeting of 2017 for its consideration.
(III) Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Net profit Ratio in net profit
attributable to attributable to
common stock common stock
Amount for cash Amount for cash Proportion for
Year for bonus shareholders of shareholders of
bonus (tax bonus by other cash bonus by
shares listed company in listed company
included) ways other ways
consolidation contained in
statement for consolidation
bonus year statement
2017 62,675,872.86 32,473,204.92 193.01% - -
2016 62,675,872.86 220,216,680.96 28.46% - -
2015 45,824,352.27 27,104,893.56 169.06% - -
(IV) The Company gains profits in reporting period and the retained profit of common stock shareholders
provided by parent company is positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □Not applicable
Bonus shares for every 10-share (Share)
Dividends for every 10-share (RMB) (Tax
0.6
included)
Shares added for every 10-share base
HEFEI MEILING CO., LTD. Annual Report 2017
(Share)
Equity base of distribution plan (Share) 1,044,597,881
Total cash dividend (RMB) (Tax included) 62,675,872.86
Distributable profits (RMB) 893,442,648.28
Ratio of cash dividend in total profit
100%
distribution
Cash dividend:
Distribute 0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders of the Company based on
total share capital 1,044,597,881 shares dated 31 December 2017, cash dividend of 62,675,872.86 Yuan was
distributed in total.
Detail explanation on profit distribution or capitalization from capital public reserve
After auditing by Shinewing Certified Public Accountants (LLP), in the year of 2017, net profit of the parent
company in individual statement amounted as RMB -220,729.76 Yuan. According to relevant regulations,
retained profit for the year ended counted as RMB 956,339,194.01 Yuan, after deducted the RMB
62,675,815.97 Yuan distributed for year of 2016, and minor change of the net profit for the year RMB
220,729.76 Yuan, the retained profit in individual statement of the parent company counted as RMB
893,442,648.28 Yuan accumulatively. In 2017, the net profit attributable to owners of parent company in
consolidate statement amounted as RMB 32,473,204.92 Yuan. In line with relevant regulations, the profit
achieved for the year of 2017 which is available for distribution amounted as RMB 32,473,204.92 Yuan,
deducted the RMB 62,675,815.97 Yuan distributed for year of 2016 and plus retained profit RMB
968,097,382.98 Yuan at beginning of the year, the retained profit ended as 2017 in consolidate statement
amounted as RMB 937,894,771.93 Yuan accumulatively.
According to the relevant laws and regulations and the provisions of \"Articles of Association\" and considering
the interests of the shareholders and the company's long-term development needs, the board of directors
approved the company to distribute the cash bonus of 0.6 Yuan per 10 stocks (including tax) to all shareholders
on the basis of the general capital of 1,044,597,881 stocks of December 31, 2017, totally the cash bonus
62,675,872.86 Yuan has been distributed (Including tax). After the distribution, the total share capital of the
company keeps the same, accumulates the remaining undistributed profits of 830,766,775.42 Yuan which is to
be distributed annually after carry-over.
This plan has been considered and passed by the board of directors, and needs to be submitted to 2017 annual
general meeting of the company for deliberation.
III. Implementation of commitment
(I) Commitments that the company, shareholders, actual controller, offeror, directors,
supervisors, senior management or other related parties have fulfilled during the reporting
period and have not yet fulfilled by the end of reporting period
√ Applicable □Not applicable
HEFEI MEILING CO., LTD. Annual Report 2017
Implemen
Commitment Acceptor Content Date Term
tation
1. The acquirer shall not engage in refrigerator business or
activity which competes or will compete with business of Strictly
Valid for long
Meiling Electrical Appliances Co., Ltd. (hereinafter referred implemen
term
to as the “Meiling Electrical Appliances”),or that which has ted
interest conflict with Meiling Electrical Appliances.
2. The acquirer promises to apply shareholders’ right on a
Sichuan About committed and Strictly
legal and reasonable manner and shall not take any action to Valid for long
Commitments Changhong promised in order to implemen
limit or affect the normal operation of Meiling Electrical term
made in Electric Co., prevent horizontal ted
Appliances.
acquisition Ltd. competition in the
2007-6-12
report or (hereinafter Acquisition Report of 3. For any opportunity to engage in competing business, the
equity change referred to as Hefei Meiling Co., acquirer will advise Meiling Electrical Appliances in written
report the “Sichuan Ltd. for engaging such business or not. If Meiling Electrical
Changhong”) Appliances gives no clear written reply as to whether
Strictly
engaging the competing business or not within 20 days after Valid for long
implemen
receipt of the aforesaid letter, it shall be deemed that it will term
ted
not engage in such business. The acquirer will only engage in
non-competing business provided that Meiling Electrical
Appliances confirms not to or is deemed to not engage in
such non-competing business.
1. It will not engage in such business or activity that
Commitment
Commitment competes with or has interest conflict with that of Meiling
regarding to reducing
made during Electrical Appliances except for the action taken for sake of Strictly
Sichuan and preventing Valid for long
the Meiling Electrical Appliances as required by Meiling 2010-6-24 implemen
Changhong competition with term
non-public Electrical Appliances. ted
Meiling Electrical
offer of 2010 2. The Company promises to apply shareholders’ right on a
Appliances
legal and reasonable manner and shall not take any action to
HEFEI MEILING CO., LTD. Annual Report 2017
limit or affect the normal operation of Meiling Electrical
Appliances.
3. In case that Meiling Electrical Appliances expects, on the
basis of its existing business, to expand its operation scope
into the business which the Company has already operated,
the Company agrees to grant pre emptive right to Meiling
Electrical Appliances regarding such business if the same
conditions are met, provided that the Company is still the
controlling shareholder or actual controller of Meiling
Electrical Appliances.
1. Measures will be adopted to prevent continued related
transaction with Meiling Electrical Appliances: as to the
related transaction that can not be prevented, it will sign
related transaction agreement with Meiling Electrical
Appliances under the market principles of “equally paid and
Commitment mutual benefit”, and fairly determined the transaction price
regarding to reducing according to the market prevailing standards.
Strictly
and standardizing Valid for long
2. Perform the necessary obligations to make related 2010-6-24 implemen
related transaction term
directors and related shareholder abstain from voting ted
with Meiling
according to relevant regulation, and observe legal procedure
Electrical Appliances
for approving related transaction and information disclosure
obligations.
3. Promise not to hurt legal interests of Meiling Electrical
Appliances and other shareholders through related
transaction.
HEFEI MEILING CO., LTD. Annual Report 2017
Commit to authorized Changhong Air Conditioning and Zhongshan Air Conditioning Strictly
Valid for long
Co., Ltd. (hereinafter referred to as the “Zhongshan Air Conditioning”) to use 2010-11-6 implemen
term
“Changhong” trademark and relevant patents for free. ted
1. Commit to disclose periodic reports on a truthful, accurate, complete, fair and
prompt manner, to disclose all the information that have important influences over
investors, to accept supervision under the CSRC and Shenzhen Stock Exchange.
2. Commit to make public clarification in respect of such information that is released
from any public media and may result in misleading influences on stock price once
the Company is aware of such information. Strictly
Valid for long
The Company 3. The directors, supervisors, senior management and core technicians of the 2011-1-7 implemen
term
Company will accept opinions and criticism from the social publics, and they will ted
not trade the Company’s securities, directly or indirectly, with any inside information
and other illegal methods. The Company promises that the documents submitted to
Shenzhen Stock Exchange exist no false statement or material omission, and no
relevant information will be disclosed during the application for listing without prior
content from Shenzhen Stock Exchange.
1. Since the property transfer didn’t involve the buildings and land currently used by
Strictly
Changhong Air Conditioning, Sichuan Changhong commits, upon the completion of Valid for long
implemen
equity transfer, to continue to lease such assets to Changhong Air Conditioning at term
Commitment ted
market price.
made in
2. After completion of this property transfer, Sichuan Changhong commits to manage
transfer of air Sichuan
to prevent new related transaction with Meiling Electrical Appliances. For those 2009-12-10
conditioning Changhong
which can not be prevented, Sichuan Changhong commits to determine the Strictly
assets Valid for long
transaction price based on market accepted methods, so as to ensure fairness of implemen
property term
related transaction and protection of the interest of Meiling Electrical Appliances. ted
3. Sichuan Changhong commits that it will not engage in air conditioning and
refrigerator business or activity which competes or will compete with business of
HEFEI MEILING CO., LTD. Annual Report 2017
Meiling Electrical Appliances, or that which has interest conflict with Meiling
Electrical Appliances.
1. Make promise not to reduce the shares of Meiling bought in every year during 2013-8-15;
Commitments
implementation of the performance incentive fund via any market ways in the later Three years after
by Annual 2014-7-3; Implemen
first year, which was allowed to be reduced by 50% according to the laws and current shares
performance 2015-7-21; ting
regulations in the second year, and the remaining 50% was allowed to be reduced in purchased
incentive Some of the 2017-6-20
the third year in accordance with the laws and regulations.
fund, Directors,
From the date
incentive supervisors and 2. The directors, supervisors and senior management promised to manage in
when annual
objects while senior accordance with the relevant management approaches in accordance with the
incentive fund
purchasing executives of \"Company Law\", \"Securities Law\" and \"The Company’s shares held by the
plan deliberated
stock of the the Company as directors, supervisors and senior management of the listed company and its change 2013-8-15;
and approved by
Company well as other management rules\", as objects of annual performance incentive fund of Meiling, 2014-7-3; Implemen
general meeting
with incentive including but not limited to: during his tenure, the shares transferred each year shall 2015-7-21; ting
to 6 moths after
performance objects not exceed 25% of the total number of shares held of the Company; shall not sell the 2017-6-20
director,
incentive shares of the Company within six months after bought it or purchase again six
supervisor and
funds and months after sold it; shall not transfer the shares held within six months after
senior executives
owned fund Dismission.
resigned
Sichuan 1. Based on market conditions and as allowed by laws and rules, multiple measures
Changhong were adopted adequately to increase shareholding of Meiling Appliances, so as to
Electric Co., demonstrate its firm confidence on the PRC economy and Meiling Appliances with
Commitments LTD and its actual actions, maintain sound development of capital market and promote
Strictly
of not to persons acting recovery of healthy market; Valid for long
2015-7-9 implemen
reducing the in concert term
ted
shares Changhong
2. The Company continued to support operation and development of listed company.
(Hong Kong)
It is committed to bringing steady and real return to investors.
Trading
Company
HEFEI MEILING CO., LTD. Annual Report 2017
Limited
14 October 2016
Sichuan Shares are not transfer within thirty-six (36) months since end of the private Implemen
2016-3-6 to 14 October
Changhong placement ting
1. I hereby undertake not to deliver interests to other entities
or individuals without consideration or at unfair conditions,
nor to prejudice the Company’s interests by other means.
2. I hereby undertake to restrain my role related consumption
behaviors.
3. I hereby undertake not to conduct any investment and
consumption which is not related to performance of duties
Commitment
with utilization of any company assets. Till the
made during
the Commitment on 4. I hereby undertake that the remuneration system completion of
Directors and compensation of determined by the board of directors or the remuneration and projects invested
non-public
senior immediate dilution of examination committee be linked to implementation of the with the proceeds Implemen
offer in 2016 2016-2-23
executives of return arising from compensation of return measures. from this ting
the Company non-public issuance of non-public
5. In case that the Company adopts share based incentive
shares issuance of
plan in future, I hereby undertake that the exercise conditions
shares
of the incentive plan to be announced by the Company be
linked to implementation of the compensation of return
measures.
6. For the period from the date of this commitment to the
date of completion of this non-public issuance of shares, if
the CSRC makes other new regulatory requirements on
compensation of return measures and the commitment
thereof, and in case that the above commitments cannot
HEFEI MEILING CO., LTD. Annual Report 2017
satisfy these new requirements from the CSRC, I hereby
undertake to issue supplementary commitment in compliance
with the latest CSRC requirements.
As one of the principals responsible for compensation of
return measures, I, in case of break of the above
commitments or refuse to perform the above commitments,
agree to receive relevant punishment or to adopt relevant
administration measures according to the systems, rules and
regulations of the CSRC and Shenzhen Stock Exchange.
1. Promise to truly, accurately, completely, fairly and timely publish periodic reports,
disclose all information that has significant impacts on the investors, and accept the
supervision and management of China Securities Regulatory Commission and the
Shenzhen Stock Exchange.
2. Make commitments that the Company will publicly clarify in time after knowing
Strictly
any information on any public communications media that may cause misleading Valid for long
The Company 2016-10-12 implemen
influence on the stock price term
ted
3. The Company’s directors, supervisors and senior executives will listen carefully to
the opinions and criticisms of the public and never use any acquired inside
information and other improper means to directly or indirectly engage in the trading
activities of the Company's stock.
Six issuing
Promise that the restricted period of 2016 non-public offering of A shares of Meiling
object except 2016-10-14 to Implemen
subscribed this time is 12 months. 2016-9-9
Sichuan 2017-10-14 ting
Changhong
Perform the commitment promptly or
√ Yes □ No
not
HEFEI MEILING CO., LTD. Annual Report 2017
If the commitments is not fulfilled on
time, shall explain the specify reason Non-applicable
and the next work plan
Note: for the commitments completed and exemption for implementing in above mentioned table, the Company will not disclose in next ordinary report
HEFEI MEILING CO., LTD. Annual Report 2017
(II) Concerning assts or project of the Company, which has profit forecast, and reporting
period still in forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in
period.
Disclosure date for specific
approval opinion on fund 2018-3-30
occupation from CPA
Disclosure index for specific Juchao website: www.cninfo.com.cn-- Specific Explanation on
approval opinion on fund Non-operational fund occupation from controlling shareholders and its related
occupation from CPA party for year of 2017 of Hefei Meiling Co., Ltd.
V. Explanation from Board of Directors, Supervisory Committee and Independent
Directors (if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and
calculation method compared with the financial report of last year
√ Applicable □ Not applicable
Found more in 35. Change of significant account policies and accounting estimates in IV.
Significant Accounting Policy and Accounting Estimation carried out in Section XI. Financial
Report.
VII. Major accounting errors within reporting period that needs retrospective
restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the
Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation
statement’s scope
√ Applicable □Not applicable
In the reporting period, the consolidated financial statements of the Company cover 53
subsidiaries, including Sichuan Changhong Air Conditioning Co., Ltd., Zhongshan Changhong
Electric Co., Ltd. and Zhongke Meiling Cryogenic Technology Co., Ltd. Compared with the
previous year, during the reporting period, five subsidiaries are newly included in the consolidated
financial statements, thereinto, including the wholly-owned subsidiary “Zhongshan Hongling
HEFEI MEILING CO., LTD. Annual Report 2017
Trading Co., Ltd.” and “Hebei Hongmao Household Appliance Technology Co., Ltd. ” invested by
subsidiary Ridian Company; the “Guangzhou Changhong Trading Co., Ltd.” invested by subsidiary
Zhongshan Changhong; the “Zhongshan Hongyou Appliance Co., Ltd.” jointly invested by
subsidiary Zhongsan Changhong and Zhuhai Samyou Environment Tech. Co., Ltd.; the Meiling
CANDY Washing Machine Co., Ltd. invested jointly by the Company Candy Group; ”the
wholly-owned subsidiary “HongYuan Ground Energy Heat Pump Technology (Zhongshan) Co.,
Ltd.” invested by subsidiary HongYuan Ground Energy Heat Pump Technology Co., Ltd.
In addition, during the reporting period, six subsidiaries Xi'an Meizhilai Appliance Marketing
Co., Ltd., Hefei Meiling White Appliance Marketing Co., Ltd.., Hohhot Xiangyou Appliance
Marketing Co., Ltd., Urumchi Meiling Appliance Marketing Co., Ltd.., Lanzhou Meizhilai
Appliance Marketing Co., Ltd. and Mian Yang Appliance Marketing Co., Ltd. were no longer
included in the consolidated financial statements due to the liquidation.
More details can be seen in the report “VII. Changes in the scope of the merger” and “VIII.
Interests in other entities” of “Section XI Financial Report”
IX. Appointment and non-reappointment (dismissal) of CPA
(I) Accounting firm appointed
Name of domestic accounting firm Shine Wing Certified Public Accountants (LLP)
Remuneration for domestic accounting firm
(in 10 thousand Yuan)
Continuous life of auditing service for
9-year
domestic accounting firm
Name of domestic CPA Li Xifu, Xia Cuiqiong
Name of foreign accounting firm (if
N/A
applicable)
Remuneration for foreign accounting firm
N/A
(10 thousand Yuan) (if applicable)
Continuous life of auditing service for
N/A
foreign accounting firm (if applicable)
Name of foreign CPA (if applicable) N/A
(II) Re-appointed accounting firms in this period
□Yes √ No
(III) Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □Not applicable
In reporting period, Shine wing Certified Public Accountants (LLP) was appointed as audit
institute of internal control for the Company, auditing charge for internal control amounting as
RMB 250,000.
HEFEI MEILING CO., LTD. Annual Report 2017
As the sponsor and principal underwriter, Shen Wan HongYuan Securities Underwriting
Sponsor Co., Ltd. plays a continues supervision role in the period
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period
XII. Significant lawsuits and arbitrations of the Company
□ Applicable √ Not applicable
(I) No significant lawsuits or arbitrations occurred in the reporting period.
(II) Some other significant lawsuits and arbitrations in the reporting period.
To maintain the independence and integrity of \"Meiling\" trademark and trade name, the
Company carried out serials of lawsuits, attribution and administration suits with “Meiling”
trademark and corporate name concerned, please found more in 2014 first quarter report, 2014
semi-annual report, the 2014 annual report disclosed respectively on April 19, 2014, August 12,
2014, and March 26, 2014 for the relevant progress. Up till now, enterprises that have no
relationship with our Company are inapplicable to “Meiling” trade name, for example, the
company name of Hefei Meiling Small Home Appliance Co., Ltd. and Anhui Meiling Home
Appliances Import & Export Co., Ltd. have been covered by the unified social credit code, and the
company name of Hefei Meiling Environmental Protection Equipment Technology Co., Ltd., Hefei
Meiling Purifying Equipment Technology Co., Ltd., Hefei Meiling Cabinet Electronics Co., Ltd.,
Hefei Meiling Vehicle Industry Co., Ltd., and Hefei Meiling Intelligent Technology Co., Ltd.
(formerly Hefei Meiling Communication Technology Co., Ltd., this enterprise changed the trade
name to “Hefei Meiling Intelligent Technology Co., Ltd.” without authorization) have been
changed and “Meiling” has been removed. However, Hefei Meiling Daily Electric Appliances
Co., Ltd. illegally used the trade name of “Meiling”, the Company is solving the issue by lawsuit
according to law, and the above enterprises no longer have right to use the “Meiling” trademark.
At present, only the kitchen ventilator, cooker, water heater, water purifiers and household
electrical appliances manufactured and sold by the Company and its wholly-owned subsidiary -
Hefei Meiling Group Holding Co., Ltd. and Guangdong Changhong Ridian Technology Co., Ltd.
are the company's regular products, any other small household appliances using same or similar
trademark as our company or using the trade name similar to the Company’s name are the
Company’s products. In view of the infringement to the Company’s trademark and trade name,
false propaganda and unfair competition in the market, the Company has carried out many ways
including administrative reports, criminal investigation and civil litigation to fight against
infringement and counterfeiting behavior in the whole country.
XIII. Penalty and rectification
HEFEI MEILING CO., LTD. Annual Report 2017
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
During the reporting period, the Company and the controlling shareholders and the actual
controllers have had good reputation, and there is no large amount due unliquidated debt sentenced
by the court.
XV. Implementation of the company’s stock incentive plan, employee stock ownership
plan or other employee incentives
√ Applicable □Not applicable
Implementation for annual performance incentive fund
On August 9, 2012 and August 28, 2012, the Company considers the adoption of \"Hefei
Meiling annual performance incentive fund implementation plan\" (hereinafter referred to as \"\"
stimulus \"\") on the 16th meeting of the 7th board of directors and the 2012-second provisional
shareholders meeting. Details were disclosed on information disclosure media appointed by the
Company as \"Securities Times\", \"Chinese Securities Daily\", \"Hong Kong Commercial Daily\" and
the Juchao network (www.cninfo.com.cn) on August 10, 2012 and August 29th in the form of
announcement (No.: 2012-028, No.:2012-035).
1. Implementation about 2012, 2013 and 2014 performance incentive fund provision and
distribution plan
See details in \"Implementation of the company's annual incentive fund\" in \"XV
Implementation of the company's stock incentive plan, employee stock ownership plan, or other
employee incentive measures\" in \"Section V Significant Events\" of the company's \"2016 Annual
Report\" disclosed on March 30, 2017.
Up to the end of this reporting period, the company's stock purchased by some 2012 annual
performance incentive objects (non-directors, supervisors and senior management) and 2013 annual
performance incentive objects (non-directors, supervisors and senior management) with their
granted 2012 annual performance incentive funds and own funds and 2013 annual performance
incentive funds and own funds have been fully desterilized, the company's stock purchased by some
2014 annual performance incentive objects (non-directors, supervisors and senior management)
with their granted 2014 annual performance incentive funds and own funds has been desterilized by
50% for term of holding for two years, see below for the overall reducing holding-shares of some
above-mentioned incentive objects; Among the incentive objects, the current directors, supervisors
and senior management have not reduced the Company’s shares purchased by implementing 2012,
2013, and 2014 annual performance incentive plans.
2. The implementation of provision and allocation program of 2016 annual performance
incentive funds
HEFEI MEILING CO., LTD. Annual Report 2017
According to the “Incentive Plan” approved by the company, the audited operating results
and actual operation of the company in 2016 have met the requirements for awarding the annual
performance incentive funds. The company held the 29th meeting of the 8the Board of Directors
and the 15th meeting of the 8th Board of Supervisors and the Annual General Meeting of
Shareholders of 2016 on March 28, 2017 and May 4, 2017, the independent directors made
independent opinions, and the benefited directors abstained from voting, the meetings considered
and approved the “Proposal on the Provision for the Company's 2016 Annual Performance
Incentive Funds”. In addition, the company held the 32nd meeting of the 8th Board of Directors,
the 17th meeting of the 8th Board of Supervisors, and the first extraordinary general meeting of
shareholders in 2017 on June 2, 2017 and June 20, 2017, the independent directors made
independent opinions, and the benefited directors abstained from voting, the meetings considered
and approved the “Allocation Plan for the Company's 2016 Annual Performance Incentive
Funds”, the details are as follows:
(1) Incentive range and number of people: 39 eligible objects (senior management, middle
management, core technical staff and the core backbone staff).
(2) Source of funds: withdraw performance incentive funds of RMB 24,182,200 by 10% of the
audited net profits attributable to shareholders of listed companies in 2016, and allocate RMB 23.63
million of the withdrawn incentive funds to 39 incentive objects (senior management, middle
management, core technical staff and the core backbone staff) whom conform to national laws and
regulations and the requirements of “Incentive Plan”. The incentive objects purchase the
Company’s stock by their received performance incentive funds (after paying the relevant tax)
plus no less than 30% of their annual total remuneration (annual total remuneration except for the
performance incentive funds and after paying the corresponding income tax and five social
insurances and housing fund) through the open market.
(3) Shareholding situation: According to the provisions of “Incentive Plan” approved by the
company, in the premise of conforming to the listing rules of the Shenzhen Stock Exchange and
other applicable Chinese laws and regulation, the incentive objects promise to purchase the
Company’s stock through the open market within 60 working days (The time shall be postponed
in case of a period that the regulator requires the Company’s stock cannot be trade) after receiving
the performance incentive funds. As of the disclosure date of this report, this incentive plan is still
in progress.
(4) Changes in equity interests arising from disposal shares due to incentive objects: aim at
shares purchased by incentive objects without disposal during the reporting period.
(5) Commitment on restricted holding shares: according to the regulations of “Incentive
Plan” and the commitment of all incentive objects, the Company’ shares purchased by them shall
not be reduced by any market approach in the next year from the date of purchase, but the holding
shares can be reduced by 50% after the second year according to the laws and regulations, and the
remaining 50% can be reduced after the third year according to the laws and regulations. In addition,
some directors, supervisors and senior executives among the incentive objects promise to handle the
shares in accordance with the relevant management methods of the Company Law, the Securities
Law, and the Company’s Shares Held by the Directors, Supervisors and Senior Management of
List Company and the Shares’ Change Management Rules, including but not limited to: during the
HEFEI MEILING CO., LTD. Annual Report 2017
term of office, the annual transfer of shares shall not exceed 25% of the Company’s shares held by
oneself; cannot sell the Company’s share within 6 months after the purchase or repurchase within
six months after the sale; cannot transfer the company’s shares within six months after dimission.
See details on “Securities Times”, “China Securities Journal”, “Hong Kong Commercial
Daily” and www.cninfo.com.cn that the company disclosed in the form of announcement
(Announcement No. 2017-010, No. 2017-011, No. 2017-015, No. 2017-031, No. 2017-035, No.
2017-036, No. 2017-037, No. 2017-041, No. 2017-062, No. 2017-064, No. 2017-070, No.
2017-087, No. 2017-090, No. 2017-091, No. 2017-092, 2017 Semi Annual Report, Full text of the
third quarter 2017 Report) on 30 March 2017, 5 May 2017, 3 June 2017, 21 June 21 2017, 10
August 2017, 18 August 2017, 19 August 2017, 26 August 2017, 18 October 2017, 8 November
2017, 10 November 2017, 14 November 2017 and 17 November 2017
3. Shareholding and reducing of performance incentive objects of the Company
Ended as 31 December 2017, shares hold by all incentive objects amounting to 12,379,807
shares, a 1.1851 % in total share capital of the Company, including 10,689,914 A-share, a 1.0233%
in total share capital and 1,689,893 B-share, a 0.1618% in total share capital of the Company. Other
grantees of the 2012, 2013 and 2014 incentive plan (not being directors, supervisors and senior
management) have reduced holding of 4,134,008 in aggregate, accounting for about 0.3956% of the
total share capital, since September 2014 to the end of the reporting period, including reduced
holding of 571,431 in the reporting period.
XVI. Major related transaction
(I) Related transaction with routine operation concerned
√ Applicable □Not applicable
(1) Related transaction with routine operation concerned
HEFEI MEILING CO., LTD. Annual Report 2017
Trading
Whether
Related Proport limit Available
Related
Type of transaction ion in over the Clearing
Content of Pricing transaction approve similar Date of
Related Relationshi related amount similar form for
Serial related principl price (in 10 approved Index of disclosure
party p transact (in 10 transact d (in 10 related market disclosure
transaction e thousand
ion thousand ions limited or transaction
Yuan) thousan price
Yuan) (%)
not (Y/N)
d Yuan)
Electric
melting,
Controlling 2017-3-30; Juchao
Sichuan Commo resistors, Spot
shareholder 2017-5-5; Website(www.cninfo.com.c
Changhon dity integrated Marketi exchange,
1 and 35,306.58 35,306.58 2.53% 39,800 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g Electric purchas circuit ng price Bank
ultimate 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. ed accessory, acceptance
controller 2017-12-23 2017-096,2017-100
color
masterbatch
Sichuan
Changhon Controlling 2017-3-30; Juchao
Commo
g shareholder 2017-5-5; Website(www.cninfo.com.c
dity Sunstroke Marketi Spot
2 Electronic and 0.49 0.49 0.00% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
purchas supplies ng price exchange
s Holding ultimate 2017-9-13; 017-065,2017-066,2017-73,
ed
Group controller 2017-12-23 2017-096,2017-100
Co., Ltd.
Other
2017-3-30; Juchao
Huayi enterprise Commo Spot
2017-5-5; Website(www.cninfo.com.c
Compress control dity Compressor Marketi exchange,
3 37,169.68 37,169.68 2.67% 60,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
or Co., under the purchas etc. ng price Bank
2017-9-13; 017-065,2017-066,2017-73,
Ltd. same ed acceptance
2017-12-23 2017-096,2017-100
controlling
HEFEI MEILING CO., LTD. Annual Report 2017
shareholder
and ultimate
controller
Other
enterprise
Sichuan
control Spot 2017-3-30; Juchao
Changhon Commo
under the Plastic exchange, 2017-5-5; Website(www.cninfo.com.c
g Mold dity Marketi
4 same products 69,088.66 69,088.66 4.96% 71,500 No Bank and -- 2017-8-22; n)No.:2017-013,2017-031,2
Plastic purchas ng price
controlling etc. commercial 2017-9-13; 017-065,2017-066,2017-73,
Tech. Co., ed
shareholder acceptance 2017-12-23 2017-096,2017-100
Ltd.
and ultimate
controller
Other
enterprise
Sichuan control Spot 2017-3-30; Juchao
Commo Door shell,
Changhon under the exchange, 2017-5-5; Website(www.cninfo.com.c
dity baseboard, Marketi
5 g Jijia same 36,871.44 36,871.44 2.65% 39,600 No Bank and -- 2017-8-22; n)No.:2017-013,2017-031,2
purchas Sheet metal ng price
Fine Co., controlling commercial 2017-9-13; 017-065,2017-066,2017-73,
ed parts
Ltd. shareholder acceptance 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan enterprise Spot 2017-3-30; Juchao
Commo
Changhon control exchange, 2017-5-5; Website(www.cninfo.com.c
dity Packing Marketi
6 g Package under the case, printed 11,148.32 11,148.32 0.80% 11,900 No Bank and -- 2017-8-22; n)No.:2017-013,2017-031,2
purchas matter etc. ng price
Printing same commercial 2017-9-13; 017-065,2017-066,2017-73,
ed
Co., Ltd. controlling acceptance 2017-12-23 2017-096,2017-100
shareholder
HEFEI MEILING CO., LTD. Annual Report 2017
and ultimate
controller
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
Commo Printed
g under the 2017-5-5; Website(www.cninfo.com.c
dity board Marketi Bank
7 Precision same 5,904.39 5,904.39 0.42% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
purchas components ng price acceptance
Electronic controlling 2017-9-13; 017-065,2017-066,2017-73,
ed etc.
s Tech. shareholder 2017-12-23 2017-096,2017-100
Co., Ltd. and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Commo
under the Power 2017-5-5; Website(www.cninfo.com.c
g New dity Marketi Spot
8 same supply, 3.09 3.09 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Energy purchas ng price exchange
controlling battery 2017-9-13; 017-065,2017-066,2017-73,
Technolog ed
shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd.
and ultimate
controller
Other
enterprise
2017-3-30; Juchao
control Commo Spot
081 2017-5-5; Website(www.cninfo.com.c
under the dity Transformer Marketi exchange,
9 Electronic 334.84 334.84 0.02% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
same purchas etc. ng price Bank
Group 2017-9-13; 017-065,2017-066,2017-73,
controlling ed acceptance
2017-12-23 2017-096,2017-100
shareholder
and ultimate
HEFEI MEILING CO., LTD. Annual Report 2017
controller
Other
enterprise
Guangdon
control 2017-3-30; Juchao
g Commo Spot
under the 2017-5-5; Website(www.cninfo.com.c
Changhon dity Foam pieces Marketi exchange,
10 same 1,460.11 1,460.11 0.10% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g purchas etc. ng price Bank
controlling 2017-9-13; 017-065,2017-066,2017-73,
Electronic ed acceptance
shareholder 2017-12-23 2017-096,2017-100
s Co., Ltd.
and ultimate
controller
Other
Sichuan
enterprise
Changhon
control 2017-3-30; Juchao
g Commo Spot
under the 2017-5-5; Website(www.cninfo.com.c
Intelligent dity Marketi exchange,
11 same Hand piece 253.85 253.85 0.02% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Manufact purchas ng price Bank
controlling 2017-9-13; 017-065,2017-066,2017-73,
uring ed acceptance
shareholder 2017-12-23 2017-096,2017-100
Technolog
and ultimate
y Co., Ltd.
controller
Other
enterprise
Sichuan 2017-3-30; Juchao
control Commo Spot
Changhon Sheet metal 2017-5-5; Website(www.cninfo.com.c
under the dity Marketi exchange,
12 g Xinrui parts, plastic 4,902.37 4,902.37 0.35% 12,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
same purchas ng price Bank
Technolog parts etc. 2017-9-13; 017-065,2017-066,2017-73,
controlling ed acceptance
y Co., Ltd 2017-12-23 2017-096,2017-100
shareholder
and ultimate
HEFEI MEILING CO., LTD. Annual Report 2017
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Commo
Zhiyijia under the 2017-5-5; Website(www.cninfo.com.c
dity Electronic Marketi Spot
13 Network same 0.92 0.92 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
purchas products ng price exchange
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
ed
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan Commo
under the 2017-5-5; Website(www.cninfo.com.c
Huafeng dity electric Marketi Spot
14 same 1.40 1.4 0.00% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Corp. purchas device ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Group ed
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan enterprise
PCB, 2017-3-30; Juchao
Changhon control Commo Spot
remote 2017-5-5; Website(www.cninfo.com.c
g under the dity Marketi exchange,
15 control, 4,112.64 4,112.64 0.30% 4,100 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Electronic same purchas ng price Bank
transformer, 2017-9-13; 017-065,2017-066,2017-73,
Products controlling ed acceptance
etc 2017-12-23 2017-096,2017-100
Co., Ltd. shareholder
and ultimate
HEFEI MEILING CO., LTD. Annual Report 2017
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Commo
Changhon under the 2017-5-5; Website(www.cninfo.com.c
dity Marketi Spot
16 g Property same bonsai 0.04 0.04 0.00% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
purchas ng price exchange
Service controlling 2017-9-13; 017-065,2017-066,2017-73,
ed
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control Spot 2017-3-30; Juchao
Commo
Ailian under the exchange, 2017-5-5; Website(www.cninfo.com.c
dity Internet Marketi
17 Science & same 677.33 677.33 0.05% 6,000 No Bank and -- 2017-8-22; n)No.:2017-013,2017-031,2
purchas module ng price
Technolog controlling commercial 2017-9-13; 017-065,2017-066,2017-73,
ed
y Co., Ltd. shareholder acceptance 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan enterprise
2017-3-30; Juchao
Changhon control Commo Digital
2017-5-5; Website(www.cninfo.com.c
g under the dity module Marketi Spot
18 5.03 5.03 0.00% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Education same purchas components, ng price exchange
2017-9-13; 017-065,2017-066,2017-73,
Technolog controlling ed etc.
2017-12-23 2017-096,2017-100
y Co., Ltd. shareholder
and ultimate
HEFEI MEILING CO., LTD. Annual Report 2017
controller
Sichuan
Changhon Controlling 2017-3-30; Juchao
g shareholder Accept 2017-5-5; Website(www.cninfo.com.c
Regular bus Marketi Spot
19 Electronic and the 19.72 19.72 0.01% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
fee ng price exchange
s Holding ultimate services 2017-9-13; 017-065,2017-066,2017-73,
Group controller 2017-12-23 2017-096,2017-100
Co., Ltd.
Information
Controlling 2017-3-30; Juchao
Sichuan system Spot
shareholder Accept 2017-5-5; Website(www.cninfo.com.c
Changhon services, Marketi exchange,
20 and the 1,983.75 1,983.75 1.11% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g Electric repair fees, ng price Bank
ultimate services 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. shared acceptance
controller 2017-12-23 2017-096,2017-100
service fees
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Transportati Spot
under the Accept 2017-5-5; Website(www.cninfo.com.c
g on, storage, Marketi exchange,
21 same the 55,778.60 55,778.60 31.13% 58,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Minsheng loading and ng price Bank
controlling services 2017-9-13; 017-065,2017-066,2017-73,
Logistics unloading acceptance
shareholder 2017-12-23 2017-096,2017-100
Co., LTD
and ultimate
controller
Sichuan Other 2017-3-30; Juchao
Accept after-sale Spot
Service enterprise Marketi 2017-5-5; Website(www.cninfo.com.c
22 the maintenance 13,596.57 13,596.57 7.59% 20,000 No exchange, --
Exp. control ng price 2017-8-22; n)No.:2017-013,2017-031,2
services ,Installation Bank
Appliance under the 2017-9-13; 017-065,2017-066,2017-73,
HEFEI MEILING CO., LTD. Annual Report 2017
Service same , etc. acceptance 2017-12-23 2017-096,2017-100
Chain Co., controlling
Ltd. shareholder
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the Accept 2017-5-5; Website(www.cninfo.com.c
Hongxin Software Marketi Spot
23 same the 133.53 133.53 0.07% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Software usage fee ng price exchange
controlling services 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Guangdon
control 2017-3-30; Juchao
g
under the Accept Security 2017-5-5; Website(www.cninfo.com.c
Changhon Marketi Spot
24 same the service 85.48 85.48 0.05% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g ng price exchange
controlling services charge 2017-9-13; 017-065,2017-066,2017-73,
Electronic
shareholder 2017-12-23 2017-096,2017-100
s Co., Ltd.
and ultimate
controller
Other 2017-3-30; Juchao
Sichuan maintenance
enterprise Accept 2017-5-5; Website(www.cninfo.com.c
Jiahong fee ,Busines Marketi Spot
25 control the 51.76 51.76 0.03% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Industrial s activity ng price exchange
under the services 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. fee
same 2017-12-23 2017-096,2017-100
HEFEI MEILING CO., LTD. Annual Report 2017
controlling
shareholder
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the Accept 2017-5-5; Website(www.cninfo.com.c
g Business Marketi Spot
26 same the 34.94 34.94 0.02% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Internatio activity fee ng price exchange
controlling services 2017-9-13; 017-065,2017-066,2017-73,
nal Hotel
shareholder 2017-12-23 2017-096,2017-100
Co., Ltd.
and ultimate
controller
Other
enterprise
CHANGH control 2017-3-30; Juchao
ONG(HK) under the Accept 2017-5-5; Website(www.cninfo.com.c
Sales Marketi Spot
27 TRADIN same the 23.75 23.75 0.01% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
expense ng price exchange
GLIMITE controlling services 2017-9-13; 017-065,2017-066,2017-73,
D shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Sichuan Other
2017-3-30; Juchao
Changhon enterprise
Accept 2017-5-5; Website(www.cninfo.com.c
g control Marketi Spot
28 the Ticket fees 22.60 22.6 0.01% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Internatio under the ng price exchange
services 2017-9-13; 017-065,2017-066,2017-73,
nal Travel same
2017-12-23 2017-096,2017-100
Service controlling
HEFEI MEILING CO., LTD. Annual Report 2017
Co., Ltd. shareholder
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Managemen
Changhon under the Accept 2017-5-5; Website(www.cninfo.com.c
t fee and Marketi Spot
29 g Property same the 94.50 94.5 0.05% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
maintenance ng price exchange
Service controlling services 2017-9-13; 017-065,2017-066,2017-73,
fee
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the Accept Laboratory 2017-5-5; Website(www.cninfo.com.c
Hongwei Marketi Spot
30 same the technical 49.72 49.72 0.03% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Technolog ng price exchange
controlling services service fee 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan enterprise 2017-3-30; Juchao
Zhiyijia control Accept 2017-5-5; Website(www.cninfo.com.c
Platform Marketi Spot
31 Network under the the 397.37 397.37 0.22% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
cost ng price exchange
Technolog same services 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd. controlling 2017-12-23 2017-096,2017-100
shareholder
HEFEI MEILING CO., LTD. Annual Report 2017
and ultimate
controller
Other
enterprise
Lejiayi control 2017-3-30; Juchao
Chain under the Accept 2017-5-5; Website(www.cninfo.com.c
Advertising Marketi Spot
32 Managem same the 2.26 2.26 0.00% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
fee ng price exchange
ent Co., controlling services 2017-9-13; 017-065,2017-066,2017-73,
Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Changhon under the Accept 2017-5-5; Website(www.cninfo.com.c
Communica Marketi Spot
33 g Network same the 5.08 5.08 0.00% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
tion fee ng price exchange
Technolog controlling services 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Sichuan Other
Changhon enterprise
2017-3-30; Juchao
g control
Accept Engineering 2017-5-5; Website(www.cninfo.com.c
Intelligent under the Marketi Spot
34 the maintenance 19.66 19.66 0.01% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Manufact same ng price exchange
services fee 2017-9-13; 017-065,2017-066,2017-73,
uring controlling
2017-12-23 2017-096,2017-100
Technolog shareholder
y Co., Ltd. and ultimate
HEFEI MEILING CO., LTD. Annual Report 2017
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Plastic
Changhon under the Accept 2017-5-5; Website(www.cninfo.com.c
removal Marketi Spot
35 g Jijia same the 0.18 0.18 0.00% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
processing ng price exchange
Fine Co., controlling services 2017-9-13; 017-065,2017-066,2017-73,
fee
Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
g Gerun under the Accept 2017-5-5; Website(www.cninfo.com.c
Waste Marketi Spot
36 Renewabl same the 7.32 7.32 0.00% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
disposal fee ng price exchange
e controlling services 2017-9-13; 017-065,2017-066,2017-73,
Resources shareholder 2017-12-23 2017-096,2017-100
Co., Ltd. and ultimate
controller
Other
enterprise
2017-3-30; Juchao
Shenzhen control
Accept 2017-5-5; Website(www.cninfo.com.c
Yijia’en under the software Marketi Spot
37 the 21.02 21.02 0.01% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Technolog same R & D cost ng price exchange
services 2017-9-13; 017-065,2017-066,2017-73,
y Co. Ltd. controlling
2017-12-23 2017-096,2017-100
shareholder
and ultimate
HEFEI MEILING CO., LTD. Annual Report 2017
controller
Controlling 2017-3-30; Juchao
Sichuan Purchas Spot
shareholder Water, 2017-5-5; Website(www.cninfo.com.c
Changhon e fuel Marketi exchange,
38 and electricity 1,987.99 1,987.99 0.14% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g Electric and ng price Bank
ultimate and gas 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. power acceptance
controller 2017-12-23 2017-096,2017-100
Other
enterprise
control 2017-3-30; Juchao
Huayi Purchas Spot
under the 2017-5-5; Website(www.cninfo.com.c
Compress e fuel Compressed Marketi exchange,
39 same 59.10 59.10 0.00% 65 No -- 2017-8-22; n)No.:2017-013,2017-031,2
or Co., and air ng price Bank
controlling 2017-9-13; 017-065,2017-066,2017-73,
Ltd. power acceptance
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Guangdon
control Water, 2017-3-30; Juchao
g Purchas
under the electricity 2017-5-5; Website(www.cninfo.com.c
Changhon e fuel Marketi Spot
40 same and 130.57 130.57 0.01% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g and ng price exchange
controlling compressed 2017-9-13; 017-065,2017-066,2017-73,
Electronic power
shareholder air 2017-12-23 2017-096,2017-100
s Co., Ltd.
and ultimate
controller
Sichuan Other Purchas Water and Marketi Spot 2017-3-30; Juchao
41 0.48 0.48 0.00% 6,000 No --
Jiahong enterprise e fuel electricity ng price exchange 2017-5-5; Website(www.cninfo.com.c
HEFEI MEILING CO., LTD. Annual Report 2017
Industrial control and fee 2017-8-22; n)No.:2017-013,2017-031,2
Co., Ltd. under the power 2017-9-13; 017-065,2017-066,2017-73,
same 2017-12-23 2017-096,2017-100
controlling
shareholder
and ultimate
controller
Other
Hefei enterprise
Changhon control 2017-3-30; Juchao
Purchas
g New under the 2017-5-5; Website(www.cninfo.com.c
e fuel Electricity Marketi Spot
42 Energy same 39.55 39.55 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
and fee ng price exchange
Science & controlling 2017-9-13; 017-065,2017-066,2017-73,
power
Technolog shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd. and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Purchas
Changhon under the Water and 2017-5-5; Website(www.cninfo.com.c
e fuel Marketi Spot
43 g Property same electricity 3.76 3.76 0.00% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
and ng price exchange
Service controlling fee 2017-9-13; 017-065,2017-066,2017-73,
power
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Sichuan Controlling Air Spot 2017-3-30; Juchao
Sales of Marketi
44 Changhon shareholder conditioner, 127,288.97 127,288.97 7.58% 141,000 No exchange, -- 2017-5-5; Website(www.cninfo.com.c
goods ng price
g Electric and air purifier, Bank 2017-8-22; n)No.:2017-013,2017-031,2
HEFEI MEILING CO., LTD. Annual Report 2017
Co., Ltd. ultimate etc. acceptance 2017-9-13; 017-065,2017-066,2017-73,
controller 2017-12-23 2017-096,2017-100
Sichuan
Changhon Controlling 2017-3-30; Juchao
g shareholder 2017-5-5; Website(www.cninfo.com.c
Sales of Food and air Marketi Spot
45 Electronic and 102.53 102.53 0.01% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioning ng price exchange
s Holding ultimate 2017-9-13; 017-065,2017-066,2017-73,
Group controller 2017-12-23 2017-096,2017-100
Co., Ltd.
Other
enterprise
Sichuan control 2017-3-30; Juchao
Color board,
Changhon under the Bank and 2017-5-5; Website(www.cninfo.com.c
Sales of door shell Marketi
46 g Jijia same 6,714.31 6,714.31 0.40% 7,000 No commercial -- 2017-8-22; n)No.:2017-013,2017-031,2
goods and other ng price
Fine Co., controlling acceptance 2017-9-13; 017-065,2017-066,2017-73,
components
Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Color
under the 2017-5-5; Website(www.cninfo.com.c
g Mold Sales of Masterbatch Marketi Bank
47 same 11,200.34 11,200.34 0.67% 17,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Plastic goods , plastic ng price acceptance
controlling 2017-9-13; 017-065,2017-066,2017-73,
Tech. Co., particle
shareholder 2017-12-23 2017-096,2017-100
Ltd.
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Lejiayi control Refrigerator 2017-3-30; Juchao
Spot
Chain under the , washing 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi exchange,
48 Managem same machine ,air 744.44 744.44 0.04% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price Bank
ent Co., controlling conditioners 2017-9-13; 017-065,2017-066,2017-73,
acceptance
Ltd. shareholder , etc. 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
PT.CHAN control 2017-3-30; Juchao
refrigerators
GHONGE under the 2017-5-5; Website(www.cninfo.com.c
Sales of ,and air Marketi Spot
49 LECTRIC same 2.62 2.62 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioning ng price exchange
INDONE controlling 2017-9-13; 017-065,2017-066,2017-73,
spare parts
SIA shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
CHANGH control 2017-3-30; Juchao
Refrigerator
ONG(HK) under the 2017-5-5; Website(www.cninfo.com.c
Sales of , freezers, Marketi Spot
50 TRADIN same 36,525.50 36,525.50 2.17% 45,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods air ng price exchange
GLIMITE controlling 2017-9-13; 017-065,2017-066,2017-73,
conditioner
D shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
CHANGH control 2017-3-30; Juchao
ONGELE under the 2017-5-5; Website(www.cninfo.com.c
Sales of Refrigerator Marketi Spot
51 CTRIC(A same 1,946.83 1,946.83 0.12% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods , freezer ng price exchange
USTRALI controlling 2017-9-13; 017-065,2017-066,2017-73,
A) shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the 2017-5-5; Website(www.cninfo.com.c
Hongwei Sales of Food and air Marketi Spot
52 same 13.50 13.5 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Technolog goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Changhon under the 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Spot
53 g Devices same Food 1.81 1.81 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price exchange
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Spot
under the Refrigerator 2017-5-5; Website(www.cninfo.com.c
g Sales of Marketi exchange,
54 same , air 285.09 285.09 0.02% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Minsheng goods ng price Bank
controlling conditioner 2017-9-13; 017-065,2017-066,2017-73,
Logistics acceptance
shareholder 2017-12-23 2017-096,2017-100
Co., LTD
and ultimate
controller
Other
Sichuan enterprise
Service control 2017-3-30; Juchao
Spot
Exp. under the 2017-5-5; Website(www.cninfo.com.c
Sales of Maintenanc Marketi exchange,
55 Appliance same 1,780.47 1,780.47 0.11% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods e parts ng price Bank
Service controlling 2017-9-13; 017-065,2017-066,2017-73,
acceptance
Chain Co., shareholder 2017-12-23 2017-096,2017-100
Ltd. and ultimate
controller
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
g Gerun under the 2017-5-5; Website(www.cninfo.com.c
Sales of Waste Marketi Bank
56 Renewabl same 1,579.82 1,579.82 0.09% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods materials ng price acceptance
e controlling 2017-9-13; 017-065,2017-066,2017-73,
Resources shareholder 2017-12-23 2017-096,2017-100
Co., Ltd. and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Hefei control Air 2017-3-30; Juchao
Changhon under the conditioners 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Bank
57 g same , 70.56 70.56 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price acceptance
Industrial controlling refrigerators 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. shareholder , etc 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the 2017-5-5; Website(www.cninfo.com.c
Huafeng Sales of Food and air Marketi Spot
58 same 18.34 18.34 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Corp. goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Group
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Refrigerator
Sichuan control Spot 2017-3-30; Juchao
, freezers,
Zhiyijia under the exchange, 2017-5-5; Website(www.cninfo.com.c
Sales of air Marketi
59 Network same 225,620.35 225,620.35 13.43% 250,000 No Bank and -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioner, ng price
Technolog controlling commercial 2017-9-13; 017-065,2017-066,2017-73,
washing
y Co., Ltd. shareholder acceptance 2017-12-23 2017-096,2017-100
machine
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the 2017-5-5; Website(www.cninfo.com.c
Changhon Sales of Air-conditio Marketi Spot
60 same 322.07 322.07 0.02% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g Property goods ner ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Changhon under the 2017-5-5; Website(www.cninfo.com.c
Sales of Food and air Marketi Spot
61 g Network same 20.30 20.3 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioning ng price exchange
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
g under the 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Spot
62 Intelligent same Food 0.75 0.75 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price exchange
Health controlling 2017-9-13; 017-065,2017-066,2017-73,
Technolog shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd. and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan control 2017-3-30; Juchao
Changhon under the 2017-5-5; Website(www.cninfo.com.c
Sales of Food and air Marketi Spot
63 g Property same 5.17 5.17 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioning ng price exchange
Service controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the 2017-5-5; Website(www.cninfo.com.c
Huanyu Sales of Air-conditio Marketi Spot
64 same 12.10 12.1 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Industrial goods ner ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Co. Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Spot
Changhon under the 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi exchange,
65 g Xinrui same Food 2.97 2.97 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price Bank
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
acceptance
y Co., Ltd shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
Sichuan
enterprise
Changhon
control 2017-3-30; Juchao
g
under the 2017-5-5; Website(www.cninfo.com.c
Intelligent Sales of Marketi Spot
66 same Food 2.76 2.76 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Manufact goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
uring
shareholder 2017-12-23 2017-096,2017-100
Technolog
and ultimate
y Co., Ltd.
controller
Other
enterprise
Mianyang
control 2017-3-30; Juchao
Technolog
under the 2017-5-5; Website(www.cninfo.com.c
y Town Sales of Marketi Spot
67 same Food 0.37 0.37 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Big Data goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Technolog
shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd.
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
BVCH
under the 2017-5-5; Website(www.cninfo.com.c
Optronics Sales of Marketi Spot
68 same Food 3.13 3.13 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
(Sichuan) goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the 2017-5-5; Website(www.cninfo.com.c
g Sales of Food and air Marketi Spot
69 same 26.32 26.32 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Electronic goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Products
shareholder 2017-12-23 2017-096,2017-100
Co., Ltd.
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Changhon under the 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Spot
70 g Group same Food 4.05 4.05 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price exchange
Finance controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Changhon under the 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Bank
71 g Package same Food 5.80 5.8 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price acceptance
Printing controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan control 2017-3-30; Juchao
Changhon under the 2017-5-5; Website(www.cninfo.com.c
Sales of Food and air Marketi Spot
72 g Power same 36.02 36.02 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioning ng price exchange
Source controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the 2017-5-5; Website(www.cninfo.com.c
g Sales of Food and air Marketi Spot
73 same 330.36 330.36 0.02% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Education goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Technolog
shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd.
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
081 under the 2017-5-5; Website(www.cninfo.com.c
Sales of Air-conditio Marketi Spot
74 Electronic same 12.78 12.78 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ner ng price exchange
Group controlling 2017-9-13; 017-065,2017-066,2017-73,
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
GuangYu enterprise
an control Air 2017-3-30; Juchao
Changhon under the conditioners 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Spot
75 g same , 122.00 122 0.01% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price exchange
Electronic controlling refrigerators 2017-9-13; 017-065,2017-066,2017-73,
Technolog shareholder , etc 2017-12-23 2017-096,2017-100
y Co., Ltd. and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Ailian under the 2017-5-5; Website(www.cninfo.com.c
Sales of Food and air Marketi Spot
76 Science & same 33.97 33.97 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioning ng price exchange
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
g under the 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Spot
77 Innovatio same Food 0.06 0.06 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price exchange
n controlling 2017-9-13; 017-065,2017-066,2017-73,
Investmen shareholder 2017-12-23 2017-096,2017-100
t Co., Ltd. and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
GuangYu
control 2017-3-30; Juchao
an
under the 2017-5-5; Website(www.cninfo.com.c
Hongchen Sales of Marketi Spot
78 same Food 0.10 0.1 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Industrial
shareholder 2017-12-23 2017-096,2017-100
Co., Ltd.
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the 2017-5-5; Website(www.cninfo.com.c
g Energy Sales of Food and air Marketi Spot
79 same 1.45 1.45 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Sunshine goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Technolog
shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd.
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the 2017-5-5; Website(www.cninfo.com.c
g Sales of Marketi Spot
80 same Food 1.18 1.18 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Electronic goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Technolog
shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd.
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the 2017-5-5; Website(www.cninfo.com.c
Hongxin Sales of Marketi Spot
81 same Food 2.35 2.35 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Software goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Hongchen under the 2017-5-5; Website(www.cninfo.com.c
Sales of Food and air Marketi Spot
82 g Real same 13.34 13.34 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods conditioning ng price exchange
Estate controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan
under the 2017-5-5; Website(www.cninfo.com.c
Jiahong Sales of Food and air Marketi Spot
83 same 11.50 11.5 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Industrial goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd.
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the 2017-5-5; Website(www.cninfo.com.c
g New Sales of Food and air Marketi Spot
84 same 147.86 147.86 0.01% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Energy goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Technolog
shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd.
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the 2017-5-5; Website(www.cninfo.com.c
g Sales of Air Marketi Spot
85 same 24.24 24.24 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Internatio goods conditioning ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
nal Hotel
shareholder 2017-12-23 2017-096,2017-100
Co., Ltd.
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon
under the 2017-5-5; Website(www.cninfo.com.c
g Sales of Marketi Spot
86 same Food 3.23 3.23 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Electronic goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
System
shareholder 2017-12-23 2017-096,2017-100
Co., Ltd.
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
g under the 2017-5-5; Website(www.cninfo.com.c
Sales of Marketi Spot
87 Precision same Food 12.09 12.09 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
goods ng price exchange
Electronic controlling 2017-9-13; 017-065,2017-066,2017-73,
s Tech. shareholder 2017-12-23 2017-096,2017-100
Co., Ltd. and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
under the 2017-5-5; Website(www.cninfo.com.c
Orion.PD Sales of Marketi Spot
88 same Refrigerator 1,785.99 1,785.99 0.11% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
P.Co.,ltd goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Changhon
enterprise
g
control 2017-3-30; Juchao
Internatio
under the 2017-5-5; Website(www.cninfo.com.c
nal Sales of Marketi Spot
89 same Food 0.24 0.24 0.00% 15,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Holdings goods ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
(Hong
shareholder 2017-12-23 2017-096,2017-100
Kong)
and ultimate
Co., Ltd.
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Guangdon
control 2017-3-30; Juchao
g Providin
under the Water and 2017-5-5; Website(www.cninfo.com.c
Changhon g fuel Marketi Spot
90 same electricity 102.61 102.61 0.01% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g and ng price exchange
controlling fee 2017-9-13; 017-065,2017-066,2017-73,
Electronic power
shareholder 2017-12-23 2017-096,2017-100
s Co., Ltd.
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Providin Spot
under the Water and 2017-5-5; Website(www.cninfo.com.c
g g fuel Marketi exchange,
91 same electricity 10.37 10.37 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Minsheng and ng price Bank
controlling fee 2017-9-13; 017-065,2017-066,2017-73,
Logistics power acceptance
shareholder 2017-12-23 2017-096,2017-100
Co., LTD
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Providin
Changhon under the Water and 2017-5-5; Website(www.cninfo.com.c
g fuel Marketi Bank
92 g Jijia same electricity 11.24 11.24 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
and ng price acceptance
Fine Co., controlling fee 2017-9-13; 017-065,2017-066,2017-73,
power
Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Providin
under the Water and 2017-5-5; Website(www.cninfo.com.c
g Mold g fuel Marketi Bank
93 same electricity 694.10 694.1 0.04% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Plastic and ng price acceptance
controlling fee 2017-9-13; 017-065,2017-066,2017-73,
Tech. Co., power
shareholder 2017-12-23 2017-096,2017-100
Ltd.
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan Providin
under the Water and 2017-5-5; Website(www.cninfo.com.c
Hongwei g fuel Marketi Spot
94 same electricity 0.85 0.85 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Technolog and ng price exchange
controlling fee 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd. power
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Providin
Changhon under the Water and 2017-5-5; Website(www.cninfo.com.c
g fuel Marketi Bank
95 g Devices same electricity 83.27 83.27 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
and ng price acceptance
Technolog controlling fee 2017-9-13; 017-065,2017-066,2017-73,
power
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan control 2017-3-30; Juchao
Rent to
Changhon under the Workshop, 2017-5-5; Website(www.cninfo.com.c
the Marketi Bank
96 g Jijia same warehouse, 64.15 64.15 0.27% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related ng price acceptance
Fine Co., controlling forklift, etc 2017-9-13; 017-065,2017-066,2017-73,
party
Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Rent to
under the 2017-5-5; Website(www.cninfo.com.c
g Mold the warehouse, Marketi Bank
97 same 272.74 272.74 1.17% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Plastic related workshop ng price acceptance
controlling 2017-9-13; 017-065,2017-066,2017-73,
Tech. Co., party
shareholder 2017-12-23 2017-096,2017-100
Ltd.
and ultimate
controller
Other
enterprise
Sichuan Part of
control 2017-3-30; Juchao
Changhon Rent to office Spot
under the 2017-5-5; Website(www.cninfo.com.c
g the building Marketi exchange,
98 same 108.54 108.54 0.47% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Minsheng related rent, ng price Bank
controlling 2017-9-13; 017-065,2017-066,2017-73,
Logistics party workshop, acceptance
shareholder 2017-12-23 2017-096,2017-100
Co., LTD etc.
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
Sichuan enterprise
Service control 2017-3-30; Juchao
Rent to
Exp. under the 2017-5-5; Website(www.cninfo.com.c
the Apartment, Marketi Spot
99 Appliance same 24.25 24.25 0.10% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related office ng price exchange
Service controlling 2017-9-13; 017-065,2017-066,2017-73,
party
Chain Co., shareholder 2017-12-23 2017-096,2017-100
Ltd. and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Rent to Spot
Changhon under the 2017-5-5; Website(www.cninfo.com.c
the warehouse, Marketi exchange,
100 g Xinrui same 1.69 1.69 0.01% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related forklift ng price Bank
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
party acceptance
y Co., Ltd shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Hefei control 2017-3-30; Juchao
Rent to
Changhon under the 2017-5-5; Website(www.cninfo.com.c
the Marketi Spot
101 g same Apartment 32.15 32.15 0.14% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related ng price exchange
Industrial controlling 2017-9-13; 017-065,2017-066,2017-73,
party
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Controlling 2017-3-30; Juchao
Sichuan Rent to Spot
shareholder 2017-5-5; Website(www.cninfo.com.c
Changhon the Marketi exchange,
102 and Apartment 6.97 6.97 0.03% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g Electric related ng price Bank
ultimate 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. party acceptance
controller 2017-12-23 2017-096,2017-100
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
Rent to
g under the Forklift, 2017-5-5; Website(www.cninfo.com.c
the Marketi Bank
103 Precision same warehouse, 11.54 11.54 0.05% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related ng price acceptance
Electronic controlling apartment 2017-9-13; 017-065,2017-066,2017-73,
party
s Tech. shareholder 2017-12-23 2017-096,2017-100
Co., Ltd. and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Rent to
Ailian under the 2017-5-5; Website(www.cninfo.com.c
the Marketi Spot
104 Science & same Warehouse 0.01 0.01 0.00% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related ng price exchange
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
party
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other 2017-3-30; Juchao
BVCH Rent to
enterprise 2017-5-5; Website(www.cninfo.com.c
Optronics the Cargo Marketi Spot
105 control 5.25 5.25 0.02% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
(Sichuan) related elevator ng price exchange
under the 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. party
same 2017-12-23 2017-096,2017-100
HEFEI MEILING CO., LTD. Annual Report 2017
controlling
shareholder
and ultimate
controller
Other
enterprise
Guangdon
control 2017-3-30; Juchao
g Rent to
under the 2017-5-5; Website(www.cninfo.com.c
Changhon the Office Marketi Spot
106 same 196.86 196.86 0.84% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g related building ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Electronic party
shareholder 2017-12-23 2017-096,2017-100
s Co., Ltd.
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Shenzhen Rent to
under the 2017-5-5; Website(www.cninfo.com.c
Yijia’en the Two living Marketi Spot
107 same 2.54 2.54 0.01% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Technolog related area ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
y Co. Ltd. party
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan 2017-3-30; Juchao
enterprise Rent to
Changhon 2017-5-5; Website(www.cninfo.com.c
control the Marketi Spot
108 g Devices workshop 95.74 95.74 0.41% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
under the related ng price exchange
Technolog 2017-9-13; 017-065,2017-066,2017-73,
same party
y Co., Ltd. 2017-12-23 2017-096,2017-100
controlling
HEFEI MEILING CO., LTD. Annual Report 2017
shareholder
and ultimate
controller
Other
enterprise
control 2017-3-30; Juchao
Sichuan Rent to
under the 2017-5-5; Website(www.cninfo.com.c
Hongwei the Two living Marketi Spot
109 same 3.52 3.52 0.02% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Technolog related area ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
y Co., Ltd. party
shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Changhon
enterprise
g
control 2017-3-30; Juchao
Internatio Rent to
under the 2017-5-5; Website(www.cninfo.com.c
nal the Marketi Spot
110 same Office 10.59 10.59 0.05% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Holdings related ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
(Hong party
shareholder 2017-12-23 2017-096,2017-100
Kong)
and ultimate
Co., Ltd.
controller
Sichuan
Changhon Controlling 2017-3-30; Juchao
Rent
g shareholder workshop, 2017-5-5; Website(www.cninfo.com.c
from the Marketi Spot
111 Electronic and staff 16.53 16.53 0.07% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related ng price exchange
s Holding ultimate dormitories 2017-9-13; 017-065,2017-066,2017-73,
party
Group controller 2017-12-23 2017-096,2017-100
Co., Ltd.
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan control 2017-3-30; Juchao
Rent
Changhon under the 2017-5-5; Website(www.cninfo.com.c
from the workshop, Marketi Spot
112 g Property same 198.46 198.46 0.85% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related offices, etc ng price exchange
Service controlling 2017-9-13; 017-065,2017-066,2017-73,
party
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Controlling 2017-3-30; Juchao
Sichuan Rent Spot
shareholder 2017-5-5; Website(www.cninfo.com.c
Changhon from the workshop, Marketi exchange,
113 and 1,374.69 1,374.69 5.89% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g Electric related offices, etc ng price Bank
ultimate 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. party acceptance
controller 2017-12-23 2017-096,2017-100
Other
enterprise
Chengdu
control 2017-3-30; Juchao
Changhon Rent
under the 2017-5-5; Website(www.cninfo.com.c
g from the workshop, Marketi Spot
114 same 35.26 35.26 0.15% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Electronic related offices, etc ng price exchange
controlling 2017-9-13; 017-065,2017-066,2017-73,
Technolog party
shareholder 2017-12-23 2017-096,2017-100
y Co., Ltd.
and ultimate
controller
Guangdon Other 2017-3-30; Juchao
Rent
g enterprise 2017-5-5; Website(www.cninfo.com.c
from the Employee Marketi Spot
115 Changhon control 43.08 43.08 0.18% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related dorm ng price exchange
g under the 2017-9-13; 017-065,2017-066,2017-73,
party
Electronic same 2017-12-23 2017-096,2017-100
HEFEI MEILING CO., LTD. Annual Report 2017
s Co., Ltd. controlling
shareholder
and ultimate
controller
Other
enterprise
Beijing control 2017-3-30; Juchao
Rent
Changhon under the 2017-5-5; Website(www.cninfo.com.c
from the Marketi Spot
116 g same Office 36.47 36.47 0.16% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
related ng price exchange
Technolog controlling 2017-9-13; 017-065,2017-066,2017-73,
party
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
Sichuan
enterprise
Changhon
control 2017-3-30; Juchao
g Purchas Spot
under the 2017-5-5; Website(www.cninfo.com.c
Intelligent e of Equipment Marketi exchange,
117 same 2,659.10 2,659.10 3.93% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Manufact fixed etc ng price Bank
controlling 2017-9-13; 017-065,2017-066,2017-73,
uring assets acceptance
shareholder 2017-12-23 2017-096,2017-100
Technolog
and ultimate
y Co., Ltd.
controller
Sichuan Other
2017-3-30; Juchao
Hongchen enterprise Purchas
2017-5-5; Website(www.cninfo.com.c
g control e of Building Marketi Spot
118 426.18 426.18 0.63% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Constructi under the fixed construction ng price exchange
2017-9-13; 017-065,2017-066,2017-73,
on same assets
2017-12-23 2017-096,2017-100
Engineeri controlling
HEFEI MEILING CO., LTD. Annual Report 2017
ng Co., shareholder
Ltd. and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Purchas
Hongchen under the 2017-5-5; Website(www.cninfo.com.c
e of Building Marketi Spot
119 g Real same 50.94 50.94 0.08% 6,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
fixed construction ng price exchange
Estate controlling 2017-9-13; 017-065,2017-066,2017-73,
assets
Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Controlling 2017-3-30; Juchao
Sichuan Purchas Spot
shareholder 2017-5-5; Website(www.cninfo.com.c
Changhon e of Information Marketi exchange,
120 and 15.47 15.47 0.02% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
g Electric fixed system, etc ng price Bank
ultimate 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd. assets acceptance
controller 2017-12-23 2017-096,2017-100
Other
enterprise
control Purchas 2017-3-30; Juchao
Sichuan
under the e of 2017-5-5; Website(www.cninfo.com.c
Hongxin Information Marketi Spot
121 same fixed, 641.04 641.04 0.95% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Software systems, etc. ng price exchange
controlling intangib 2017-9-13; 017-065,2017-066,2017-73,
Co., Ltd.
shareholder le assets 2017-12-23 2017-096,2017-100
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
enterprise
Sichuan control 2017-3-30; Juchao
Purchas
Changhon under the 2017-5-5; Website(www.cninfo.com.c
e of Control Marketi Bank
122 g Jijia same 11.97 11.97 0.02% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
fixed cabinet ng price acceptance
Fine Co., controlling 2017-9-13; 017-065,2017-066,2017-73,
assets
Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan control 2017-3-30; Juchao
Purchas
Changhon under the wireless 2017-5-5; Website(www.cninfo.com.c
e of Marketi Spot
123 g Network same networking 22.17 22.17 0.03% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
fixed ng price exchange
Technolog controlling equipment 2017-9-13; 017-065,2017-066,2017-73,
assets
y Co., Ltd. shareholder 2017-12-23 2017-096,2017-100
and ultimate
controller
Other
enterprise
Sichuan
control 2017-3-30; Juchao
Changhon Purchas
under the Security 2017-5-5; Website(www.cninfo.com.c
g e of Marketi Spot
124 same monitoring 9.79 9.79 0.01% 5,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
Electronic fixed ng price exchange
controlling equipment 2017-9-13; 017-065,2017-066,2017-73,
System assets
shareholder 2017-12-23 2017-096,2017-100
Co., Ltd.
and ultimate
controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other
Sichuan enterprise
Changhon control 2017-3-30; Juchao
g Gerun under the Sale of 2017-5-5; Website(www.cninfo.com.c
Marketi Spot
125 Renewabl same fixed waste assets 4.48 4.48 0.20% 8,000 No -- 2017-8-22; n)No.:2017-013,2017-031,2
ng price exchange
e controlling assets 2017-9-13; 017-065,2017-066,2017-73,
Resources shareholder 2017-12-23 2017-096,2017-100
Co., Ltd. and ultimate
controller
Total -- -- 705,915.08 -- -- -- -- -- -- --
Detail of sales return with major amount
Not applicable
involved
1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) and accepting fuel and power from
Sichuan Changhong and its subsidiary by the Company for year of 2017 was RMB 1,749 million at most (tax-excluded), actually RMB 1,660,542,600 occurred in
reporting period (tax-excluded).
2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased etc.) from Huayi Compressor and its subsidiary by the
Company for year of 2017 was RMB 600 million at most (tax-excluded), actually RMB 371,696,800 occurred in reporting period (tax-excluded).
3. It is estimated that the related transaction amount resulted by purchasing or selling equipment, software, maintenance and spare parts and molds etc. from Sichuan
Report the actual implementation of the daily Changhong and its subsidiary by the Company for year of 2017 was RMB 50 million at most (tax-excluded), actually RMB 7,004,400 occurred in reporting period
related transactions which were projected about (tax-excluded).
their total amount by types during the reporting
4. It is estimated that the related transaction amount resulted by purchasing goods from and providing fuel and power to Sichuan Changhong and its subsidiary by the
period (if applicable)
Company for year of 2017 was RMB 4,830 million at most (tax-excluded), actually RMB 4,138,012,700 occurred in reporting period (tax-excluded).
5. It is estimated that the related transaction amount resulted by purchasing compressed air, accepting energy, power and service from Huayi Compressor and its
subsidiary by the Company for year of 2017 was RMB 0.65 million at most (tax-excluded), actually RMB 591,000 occurred in reporting period (tax-excluded).
6. It is estimated that the related transaction amount resulted by leasing business from Sichuan Changhong and its subsidiary by the Company for year of 2017 was RMB
50 million at most (tax-excluded), actually RMB 23,243,400 occurred in reporting period (tax-excluded).
7. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan Changhong Minsheng Logistic Co., Ltd. by the
HEFEI MEILING CO., LTD. Annual Report 2017
Company for year of 2017 was RMB 580 million at most (tax-excluded), actually RMB 557,786,000 occurred in reporting period (tax-excluded).
8. It is estimated that the related transaction amount from after sales service of domestic goods outsourcing to Sichuan Service Exp. Appliance Service Chain Co., Ltd. by
the Company for year of 2017 was RMB 200 million at most (tax-excluded), actually RMB 135,965,700 occurred in reporting period.
9. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other service and labor service etc. to Sichuan
Changhong and its subsidiary by the Company for year of 2017 was RMB 50 million at most (tax-excluded), actually RMB 27,021,400 occurred in reporting period
(tax-excluded).
10. It is estimated that the related transaction amount resulted by selling goods from Sichuan Changhong Electronics Group and its subsidiary by the Company for year of
2017 was RMB 80 million at most (tax-excluded), actually RMB 39,473,800 occurred in reporting period.
11. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services, fuel power, leasing and purchasing equipment etc. from
Sichuan Changhong Electronics Group and its subsidiary by the Company for year of 2017 was RMB 180 million at most (tax-excluded), actually RMB 97,813,000
occurred in reporting period.
Reasons for major differences between trading
Not applicable
price and market reference price
HEFEI MEILING CO., LTD. Annual Report 2017
(2) Related transactions with Finance Company
The resolution of the 34th meeting of the 8th board of directors on August 9, 2017 and the second extraordinary
general meeting of 2017 on September 12, 2017 approved and agreed the company to continue carry out the
financial service cooperation with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred to as
“Changhong Finance Company”) and sign a triennial Financial Service Agreement, It is agreed that the maximum
deposit balance (including accrued interest and handling fees) and the highest principal and interest of outstanding
loan the Company in any finance company within the three-year validity period from the effective date of the new
agreement shall be adjusted to not exceed RMB 3.8 billion per day. In accordance with the agreement, Changhong
Finance Company shall provide a series of financial services such as deposit and loan in its business scope
according to the requirements of the Company and its subsidiaries. The related transactions between the company
and its subsidiaries and Changhong Finance Company from the beginning of the year to the end of the reporting
period are as follows:
Up to 31 December 2017, the Company and its subsidiaries has opened financial business as savings, note
drawing and notes discounted with Changhong Finance Company. The Company and its subordinate company
owns 2,762,513,703.88 Yuan savings in Changhong Finance Company, takes 26.44% of the deposit taking balance
in Changhong Finance Company without 30% occupied, balance of notes drawing was 721,645,627.87 Yuan and
balance of notes discounted as 699,356,853.98 Yuan. More details are:
In RMB
Interest and
Balance at Increase in the Decrease in the Balance at
Name commission charge
year-begin year year year-end received or paid
I. Savings in
Changhong Group 1,908,842,163.20 32,513,784,867.73 31,660,113,327.05 2,762,513,703.88 75,786,692.80
Finance Company
II. Borrowings
from Changhong
Group Finance
Company
1. Short-term loans - - - - -
2. Long-term loans - - - - -
III. Other financial
business
1. Notes drawing 544,374,441.19 1,962,529,562.09 1,785,258,375.41 721,645,627.87 611,255.32
2. Notes discounted 565,252,574.29 2,037,226,639.09 1,903,122,359.40 699,356,853.98 18,319,048.47
According to the regulations of \"Information Disclosure Memorandum No. 2 - Transactions and Connected
Transactions\" of Shenzhen Stock Exchange, the Company provided \" the Risk Continuous Assessment Report
HEFEI MEILING CO., LTD. Annual Report 2017
About Sichuan Changhong Group Finance Co., Ltd.\" to state the deposits, loans, and other financial business that
the company developed with Changhong Finance Company during the reporting period, and disclosed at
www.cninfo.com.cn on March 30, 2018.
(II) Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
The Company has no related transactions by assets acquisition and sold occurred in reporting
period-end.
(III) Material related transaction of jointly foreign investment
□ Applicable √ Not applicable
The Company has no material related transaction of jointly foreign investment occurred in reporting
period-end.
(IV) Connect of related liability and debt
√ Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
□Yes √ No
No non-operational contact of related liability or debts in Period.
HEFEI MEILING CO., LTD. Annual Report 2017
1. Claim receivable from related party
Whether has Balance at Current Balance at
Current Current
non-business period-begi interest period-end
Seria newly added recovery Interes
Related party Relationship Causes capital n (10 (10 (10
l (10 thousand (10 thousand t rate
occupying or thousand thousand thousand
Yuan) Yuan)
not Yuan) Yuan) Yuan)
Operational
Sichuan Changhong Controlling shareholder
1 contact of No 161.58 127,295.94 127,276.06 - - 181.46
Electric Co., Ltd. and ultimate controller
related credit
Sichuan Changhong Operational
Controlling shareholder
2 Electronics Holding contact of No 37.62 102.53 130.09 - - 10.06
and ultimate controller
Group Co., Ltd. related credit
Other enterprise control
Sichuan Changhong Operational
under the same
3 International Hotel contact of No 133.47 24.24 157.71 - - -
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Other enterprise control
Anhui Xinhao Operational
under the same
4 Plasma Display contact of No 6.30 - - - - 6.30
controlling shareholder
Panel Co., Ltd. related credit
and ultimate controller
Other enterprise control
Operational
Yibing Hongxing under the same
5 contact of No 14.72 - 14.72 - - -
Electronics Co., Ltd. controlling shareholder
related credit
and ultimate controller
Sichuan Changhong Other enterprise control Operational
6 No - 4.66 4.66 - - -
Xinrui Technology under the same contact of
HEFEI MEILING CO., LTD. Annual Report 2017
Co., Ltd controlling shareholder related credit
and ultimate controller
Other enterprise control
Operational
Sichuan Huafeng under the same
7 contact of No - 18.34 18.34 - - -
Corp. Group controlling shareholder
related credit
and ultimate controller
Other enterprise control
Operational
Sichuan Huanyu under the same
8 contact of No - 12.10 12.10 - - -
Industrial Co. Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
9 Group Finance Co., contact of No - 4.05 3.12 - - 0.93
controlling shareholder
Ltd. related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
10 Mold Plastic Tech. contact of No 96.52 12,167.18 12,246.86 - - 16.84
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Other enterprise control
Lejiayi Chain Operational
under the same
11 Management Co., contact of No - 744.44 657.73 - - 86.71
controlling shareholder
Ltd. related credit
and ultimate controller
Other enterprise control
Operational
Hefei Changhong under the same
12 contact of No - 102.71 102.71 - - -
Industrial Co., Ltd. controlling shareholder
related credit
and ultimate controller
13 Huayi Compressor Other enterprise control Operational No 33.48 - 31.50 - - 1.98
HEFEI MEILING CO., LTD. Annual Report 2017
Co., Ltd. under the same contact of
controlling shareholder related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
14 Package Printing contact of No 0.44 5.80 6.24 - - -
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Other enterprise control
Operational
Sichuan Changhong under the same
15 contact of No - 6,789.70 6,590.72 - - 198.98
Jijia Fine Co., Ltd. controlling shareholder
related credit
and ultimate controller
Sichuan Changhong Other enterprise control
Operational
Network under the same
16 contact of No - 20.30 20.30 - - -
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Sichuan Hongwei Operational
under the same
17 Technology Co., contact of No 27.15 17.87 8.63 - - 36.39
controlling shareholder
Ltd. related credit
and ultimate controller
Other enterprise control
PT.CHANGHONG Operational
under the same
18 ELECTRICINDON contact of No 2.70 2.62 2.76 - - 2.56
controlling shareholder
ESIA related credit
and ultimate controller
Other enterprise control
CHANGHONG(HK Operational
under the same
19 )TRADINGLIMITE contact of No 6,054.16 36,525.50 33,375.54 - - 9,204.12
controlling shareholder
D related credit
and ultimate controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other enterprise control
CHANGHONGELE Operational
under the same
20 CTRIC(AUSTRALI contact of No 14.48 1,946.83 1,064.71 - - 896.60
controlling shareholder
A) related credit
and ultimate controller
Other enterprise control
Operational
Sichuan Changhong under the same
21 contact of No - 322.07 302.20 - - 19.87
Property Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
22 Gerun Renewable contact of No 0.00 1,584.29 1,584.29 - - -
controlling shareholder
Resources Co., Ltd. related credit
and ultimate controller
Sichuan Service Other enterprise control
Operational
Exp. Appliance under the same
23 contact of No 20.00 1,804.72 1,759.37 - - 65.35
Service Chain Co., controlling shareholder
related credit
Ltd. and ultimate controller
Chengdu
Other enterprise control
Changhong Operational
under the same
24 Electronic contact of No 43.45 - - - - 43.45
controlling shareholder
Technology Co., related credit
and ultimate controller
Ltd.
Sichuan Zhiyijia Other enterprise control
Operational
Network under the same
25 contact of No 17,404.72 225,620.35 213,768.07 - - 29,257.00
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Guangdong Other enterprise control Operational
26 No - 299.47 298.41 - - 1.06
Changhong under the same contact of
HEFEI MEILING CO., LTD. Annual Report 2017
Electronics Co., Ltd. controlling shareholder related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
27 Power Source Co., contact of No - 36.02 32.98 - - 3.04
controlling shareholder
Ltd. related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
28 Minsheng Logistics contact of No - 404.00 404.00 - - -
controlling shareholder
Co., LTD related credit
and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
29 Devices Technology contact of No - 207.15 207.15 - - -
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Sichuan Changhong Other enterprise control
Operational
Intelligent Health under the same
30 contact of No - 0.75 0.75 - - -
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Sichuan Changhong
Other enterprise control
Intelligent Operational
under the same
31 Manufacturing contact of No 25.47 27.32 - - - 52.79
controlling shareholder
Technology Co., related credit
and ultimate controller
Ltd.
Mianyang Other enterprise control
Operational
Technology Town under the same
32 contact of No - 0.37 0.37 - - -
Big Data controlling shareholder
related credit
Technology Co., and ultimate controller
HEFEI MEILING CO., LTD. Annual Report 2017
Ltd.
Other enterprise control
Operational
BVCH Optronics under the same
33 contact of No - 8.38 8.38 - - -
(Sichuan) Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Operational
Shenzhen Yijia’en under the same
34 contact of No - 2.54 2.37 - - 0.18
Technology Co. Ltd. controlling shareholder
related credit
and ultimate controller
Sichuan Changhong Other enterprise control
Operational
Precision under the same
35 contact of No - 23.63 22.13 - - 1.50
Electronics Tech. controlling shareholder
related credit
Co., Ltd. and ultimate controller
Sichuan Changhong Other enterprise control
Operational
Education under the same
36 contact of No - 330.36 330.36 - - -
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
37 Property Service contact of No 1.25 5.17 5.65 - - 0.77
controlling shareholder
Co., Ltd. related credit
and ultimate controller
Other enterprise control
Operational
081 Electronic under the same
38 contact of No - 12.78 12.78 - - -
Group controlling shareholder
related credit
and ultimate controller
GuangYuan Other enterprise control Operational
39 No - 122.00 122.00 - - -
Changhong under the same contact of
HEFEI MEILING CO., LTD. Annual Report 2017
Electronic controlling shareholder related credit
Technology Co., and ultimate controller
Ltd.
Sichuan Ailian Other enterprise control
Operational
Science & under the same
40 contact of No - 33.97 33.97 - - -
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Sichuan Changhong Operational
under the same
41 Innovation contact of No - 0.06 0.06 - - -
controlling shareholder
Investment Co., Ltd. related credit
and ultimate controller
Other enterprise control
GuangYuan Operational
under the same
42 Hongcheng contact of No - 0.10 0.10 - - -
controlling shareholder
Industrial Co., Ltd. related credit
and ultimate controller
Sichuan Changhong Other enterprise control
Operational
Energy Sunshine under the same
43 contact of No - 1.45 1.45 - - -
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Sichuan Changhong Other enterprise control
Operational
Electronic under the same
44 contact of No - 1.18 1.18 - - -
Technology Co., controlling shareholder
related credit
Ltd. and ultimate controller
Other enterprise control
Operational
Sichuan Hongxin under the same
45 contact of No - 4.50 - - - 4.50
Software Co., Ltd. controlling shareholder
related credit
and ultimate controller
HEFEI MEILING CO., LTD. Annual Report 2017
Other enterprise control
Operational
Sichuan Hongcheng under the same
46 contact of No - 14.74 - - - 14.74
Real Estate Co., Ltd. controlling shareholder
related credit
and ultimate controller
Other enterprise control
Operational
Sichuan Jiahong under the same
47
