Hefei Meiling Co., Ltd.The First Quarterly Report of 2017俄
Hefei Meiling Co., Ltd.
The First Quarterly Report of 2017
April 2017
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 Section I. Important Notes
Board of Directors and the Supervisory Committee of Hefei Meiling Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
Mr. Liu Tibin, person in charge of the Company, Mr. Zhang Xiaolong, person in charger of accounting works and Mr. Luo Bo, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete.
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
The First Quarterly Report of 2017 has not been audited.
All Directors are attended the Board Meeting for Quarterly Report deliberation.
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 Section II. Basic situation of the Company
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||
|-|-|-|-|
||||Changes of this period|
||This Period|Same period of last year|over same period of last|
||||year|
|Operating income (RMB)|3,666,603,957.50|2,926,400,488.89|25.29%|
|Net profit attributable to shareholders of|61,303,717.56|53,709,680.24||
|the listed company(RMB)|||14.14%|
|Net profit attributable to shareholders of||||
|the listed company after deducting|41,625,189.75|41,338,292.32|0.69%|
|non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating|551,271,013.44|139,597,747.12||
|activities(RMB)|||294.90%|
|Basic earnings per share (RMB/Share)|0.0587|0.0703|-16.55%|
|Diluted earnings per share (RMB/Share)|0.0587|0.0703|-16.55%|
||||0.33 percentage points|
|Weighted average ROE|1.20%|1.53%||
||||down|
||||Changes of this|
||End of this period|End of last period|period-end over same|
||||period-end of last year|
|Total assets (RMB)|14,635,416,631.04|12,507,567,310.84|17.01%|
|Net assets attributable to shareholder of|5,156,130,270.26|5,095,160,291.91||
||||1.20%|
|listed company (RMB)||||

Note: the number of EPS calculated for last period was based on the total stock of 763,739,205 shares. Private placement of the Company was completed in October 2016, totally 280,858,676 ordinary RMB shares (A share) issued, total share capital of the Company up to 1,044,597,881 shares. Therefore, the number of EPS for this period was based on the total stock of 1,044,597,881 shares.
Items of non-recurring gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||period-end||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|||Found in “Non-operating income|
|Gains/losses from the disposal of non-current asset (including the|||
||-10,585,821.73|and expenditure”, “Investment|
|write-off that accrued for impairment of assets)|||
|||income”|
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||15,544,848.47|Found in “Non-operating income”|
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Held transaction financial asset, gains/losses of changes of fair|||
|values from transaction financial liabilities, and investment gains|||
|from disposal of transaction financial asset, transaction financial||Found in “Changing income of fair|
||1,507,583.23||
|liabilities and financial asset available for sales, exclude the||value”|
|effective hedging business relevant with normal operations of the|||
|Company|||
|Other non-operating income and expenditure except for the||Found in “Non-operating income|
||700,118.93||
|aforementioned items||and expenditure”|
|Gain/losses items qualified definition of the non-recurring|||
||13,895,258.54|Found in “Investment income”|
|gains/losses|||
|Less : impact on income tax|1,302,388.92|--|
|Impact on minority shareholders’ equity (post-tax)|81,070.71|--|
|Total|19,678,527.81|--|

Concerning the extraordinary profit (gain)/loss defined byQ&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 inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
√ Applicable□Not applicable
||||
|-|-|-|
|Item|Involved amount (RMB)|Reason|
|||During the reporting period, the wholly owned subsidiary - Mianyang|
|||Meiling Software Technology Co., Ltd. has received VAT refunds of|
|||software products according to "Notice about VAT policy of software|
|||products by Ministry of Finance & State Administration of Taxation"|
|||CS No. [2011] 100 document, and adequately disclosed the company's|
|||business situation, in accordance with relevant provisions in the third|
|Non-operating income|364,301.04|article of the second item of CSRC "No. 1 explanatory announcement|
|||about information disclosure of the company publicly issues securities|
|||- non-recurring profit and loss (2008)", the public subsidies which are|
|||closely related to the company's business, conform to the national|
|||policies and regulations and continue to be enjoyed according to a|
|||certain standard rating or quantity should be included in the company's|
|||recurring gains and losses.|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 II. Total number of shareholders at the end of this report period and top ten shareholders
1. Total number of common shareholders and preference shareholders with voting rights recovered and top ten common shareholders
In shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Total preference shareholders with voting rights|||||||
|Total number of common shareholders|61,973||||||N/A|||
|at the end of report period|||recovered at end of reporting period (if applicable)|||||||
|Top ten shareholders||||||||||
|||||||||Number of share||
|||||||Amount of||||
|||||Proportion|Amount of shares|||pledged/frozen||
|Shareholder’s name||Nature of||of shares||restricted shares||||
|||shareholder|||held|||State of||
|||||held||held|||Amount|
|||||||||share||
|Sichuan Changhong Electric Co., Ltd.||State-owned legalperson||22.47%|234,705,968|69,877,638||||
|||||||||--|--|
|Hefei Industrial Investment Holding (Group)Co., Ltd.||State-owned legalperson||4.58%|47,823,401|0||||
|||||||||--|--|
|Changhong (Hong Kong) Trade Co., Ltd.||Foreign legalperson||2.41%|25,165,823|0||||
|||||||||--|--|
|Ping An Annuity Insurance Company ofChina, Ltd. – Ping An Pension Ruifu privateplacement No.1 Assets Management Products||Domesticnon-State-ownedlegal person||2.26%|23,613,595|23,613,595||||
|||||||||--|--|
|Golden Eagle- SPD-U Trust-U Trust JinYueNo.4 Collected Asset Trust Plan||Domesticnon-State-ownedlegal person||2.26%|23,613,595|23,613,595||||
|||||||||--|--|
|CAO SHENGCHUN||Foreign natureperson||1.30%|13,542,207|0||||
|||||||||--|--|
|Ping An UOB-Ping An Bank-GuohaiSecurities Co., Ltd.||Domesticnon-State-ownedlegal person||1.20%|12,522,361|12,522,361||||
|||||||||--|--|
|Ping An Bank – Ping An UOB DingtaiFlexible Mix Stock Investment Fund||Domesticnon-State-ownedlegal person||1.20%|12,522,361|12,522,361||||
|||||||||--|--|
|Caitong Fund- Ningbo Bank-Haitong Xingtai(Anhui) Emerging Industry Investment Fund(Limited Partnership)||Domesticnon-State-ownedlegal person||1.03%|10,733,452|10,733,452||||
|||||||||--|--|
|National Social Security Funds-504||Domesticnon-State-ownedlegal person||0.94%|9,838,998|9,838,998||||
|||||||||--|--|
|Harvest Fund- Ping An Bank- Huaxia AssetManagement Co., Ltd.||Domesticnon-State-owned||0.94%|9,838,998|9,838,998||||
|||||||||--|--|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
|||||||
|-|-|-|-|-|-|
|||legal person||||
|Top ten shareholders with unrestricted shares held||||||
||||Amount of unrestricted|Type of shares||
|Shareholder’s name||||||
||||shares held|Type|Amount|
|Sichuan Changhong Electric Co., Ltd.|||164,828,330|RMB ordinary||
||||||164,828,330|
|||||shares||
|Hefei Industrial Investment Holding (Group) Co., Ltd.|||47,823,401|RMB ordinary||
||||||47,823,401|
|||||shares||
|Changhong (Hong Kong) Trade Co., Ltd.|||25,165,823|Domestically listed||
||||||25,165,823|
|||||foreign shares||
|CAO SHENGCHUN|||13,542,207|Domestically listed||
||||||13,542,207|
|||||foreign shares||
|Bank of Communications Co., Ltd. – Guotai Golden Eagle Growth FlexibleMix Stock Fund|||7,998,817|RMB ordinary||
||||||7,998,817|
|||||shares||
|China Construction Bank – Guotai Value Classic Mix Stock Fund (LOF)|||5,998,360|RMB ordinary||
||||||5,998,360|
|||||shares||
|Guotai Fund – ICBC – Guotai Xinyi No.1 Asset Management Plan|||5,214,500|RMB ordinary||
||||||5,214,500|
|||||shares||
|NORGES BANK|||4,546,432|Domestically listed||
||||||4,546,432|
|||||foreign shares||
|China Securities Finance Corporation Limited|||4,362,500|RMB ordinary||
||||||4,362,500|
|||||shares||
|Long Qinfang|||3,294,937|Domestically listed||
||||||3,294,937|
|||||foreign shares||
||Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the wholly-owned subsidiary of|||||
||Sichuan Changhong Electronic Co., Ltd.; there existed no associated relationship or belong to the concerted|||||
||actors as specified in the Measures for the Administration of Information Disclosure of Shareholder Equity|||||
||Changes of Listed Companies among Sichuan Changhong Electronic Co., Ltd., Changhong (Hong Kong) Trade|||||
||Co., Ltd. and other top 8 shareholders; Ping An –UOB Fund –Ping An Bank- Guohai Securities Co., Ltd. and|||||
|Explanation on associated||||||
||Ping An Bank Limited - Ping An –UOB Dingtailing Flex Mix Stock Fund is the products managed by Ping An|||||
|relationship among the||||||
||–UOB Fund, the company subscribe stock from private placement of 2016; national Social Security Fund -054|||||
|aforesaid shareholders||||||
||and Harvest Fund – Ping An Bank- China Capital Management Limited is the products managed by Harvest|||||
||Fund Management Co., Ltd., the company subscribe stock from private placement of 2016. As the Company has|||||
||not known whether there exists any business relationship among the other shareholders with unrestricted|||||
||subscription or they belong to the concerted actors as specified in the Measures for the Administration of|||||
||Information Disclosure of Shareholder Equity Changes of Listed Companies.|||||
|Explanation on top ten||||||
|common shareholders||||||
||N/A|||||
|involving margin business||||||
|(if applicable)||||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 Note: In the above table, " the top ten shareholders" is subject to the data on stock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch, during the reporting period, 7 issuing objects including Sichuan Changhong Electric Co., Ltd. , Ping An Dahua Fund Management Co., Ltd., Golden Eagle Fund Management Co., Ltd., Harvest Fund Management Co., Ltd., Ping An Endowment Insurance Co., Ltd., Rongtong Fund Management Co., Ltd., and Caitong Fund Management Co., Ltd. have subscribed thecompany’s non-public offering of shares in 2016, and these shares are all restricted shares. For the number of subscribed shares of the above-mentioned 7 issuing objects and the allocated products of other 6 issuing objects except for Sichuan Changhong, see details on the “Issuing report and listing announcement summary on the non-public offering of shares of Hefei Meiling Co., Ltd.” (Announcement No. 2016-057) which the company has disclosed on the designated information disclosure media "Securities Times", "China Securities Journal", "Hong Kong Commercial Daily" and www.cninfo.com.cn on October 13, 2016.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons
√ Applicable□Not applicable
(I) Changes and reasons of items in balance sheet
In RMB
||||||
|-|-|-|-|-|
|Item|Balance atperiod-end|Balance atyear-begin|Changesratio|Reasons of changes|
|Accounts paid in advance|192,418,144.94|134,706,488.38|42.84%|The money prepaid for suppliers increased at end of the period|
|Other receivable|67,095,307.03|39,553,919.44|69.63%|The export tax rebate increased without being collectedtemporary in the period|
|Inventories|2,580,866,215.12|1,974,526,734.86|30.71%|Inventory increase with the soaring sales on a y-o-y basis|
|Non-current asset duewithin one year|46,984,233.00|12,625,340.00|272.14%|The long-term deposit of subsidiary Zhongshang ChanghongElectric Co., Ltd. (Zhongshan Changhong) was re-classified tonon-current assets due within one year at period-end|
|Long-term expenses to beapportioned|1,526,586.33|1,132,075.48|34.85%|Long-term deferred expenses from subsidiary SichuanChanghong Air-Conditioner Co., Ltd increased in the period|
|Other non-current asset|-|34,615,630.00|-100.00%|Same reasons as “non-current asset due within one year”|
|Short-term loans|564,267,373.25|288,343,724.73|95.69%|Short-term loans from parent company increased in the period|
|Financial liabilitymeasured by fair valueand with variationreckoned into currentgains/losses|308,452.50|559,249.58|-44.85%|Change of the fair value of forward foreign exchange contract|
|Notes payable|3,618,196,887.91|2,635,051,740.30|37.31%|Payable note without expired temporary increased atperiod-end|
|Accounts payable|3,119,782,224.32|2,331,899,310.82|33.79%|Material purchasement increased with the soaring purchase inthe period|
|Wage payable|129,841,677.10|189,592,039.00|-31.52%|The salary and year-end bonus accrual last year was distributedin the period|
|Interest payable|249,686.32|1,617,352.01|-84.56%|Interest of payable loans are paid by parent company in theperiod|
|Long-term loans|4,751,000.00|38,908,788.00|-87.79%|The long-term loans of subsidiary Zhongshan Changhong wasre-classified to non-current liability due within one year atperiod-end|
|Special accounts payable|980,000.00|1,400,000.00|-30.00%|The government specific money for project, not yet accepted,are paid by Zhongshan Changhong in line with the JDA|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 (II) Changes and reasons of items in profit statement
In RMB
||||||
|-|-|-|-|-|
|Item|Amount at theperiod|Amount at thesame period oflast year|Changesratio|Reasons of changes|
|Financial expenses|-17,885,269.18|-5,371,504.22|-232.97%|Interest income and exchange gains or loss has a y-o-y increased inthe period|
|Add: Changing income offair value(Loss is listedwith “-”)|1,507,583.23|-|100.00%|Gains from fair value changes for forward foreign exchangecontract increased while no such amount occurred at same period oflast year|
|Investment income (loss islisted with “-“)|12,860,815.50|358,659.99|3485.80%|Income from financing increased in the period and losses fromassociated enterprise has declined from a year earlier|
|Including: income frominvestment for associatedenterprise and joint venture|-1,036,950.02|-4,627,641.38|77.59%|Losses from associated enterprise has declined from a year earlier|
|Add: non-operation income|16,629,279.66|10,126,101.23|64.22%|The deferred income- relocation subsidy are transfer-in, fromsubsidiary Mianyang Meiling Refrigeration Co., Ltd. in the period|
|Including: income fromdisposal of non-currentassets|16,683.33|137,329.94|-87.85%|Income from fixed assets disposal declined on a y-o-y basis|
|Less: Non-operatingexpense|10,608,339.93|590,032.72|1697.92%|Loss of disposal on relocation assets from subsidiary MianyangRefrigeration|
|Including: Disposal loss ofnon-current asset|10,605,012.04|324,113.57|3172.00%|Same reason as “Non-operation expense”|
|Less: income tax expenses|10,357,138.93|6,528,778.06|58.64%|Taxable income increased from a year earlier|
|Minority interest|1,011,054.00|-1,050,229.32|196.27%|Earnings from some of the non-wholly-owned subsidiariesincreased in the period|

(III) Changes and reasons of items in cash flow statement
In RMB
||||||
|-|-|-|-|-|
|Item|Amount at theperiod|Amount at the sameperiod of last year|Changesratio|Reasons of changes|
|Cash received from sellingcommodities and providing laborservices|3,620,133,971.51|2,763,169,371.62|31.01%|Money with sales concerned increased in the period|
|Cash received related with otheroperating activities|184,970,402.42|135,505,177.34|36.50%|The restricted monetary fund increased from a yearearlier|
|Cash received related with otherinvestment activities|24,352,099.28|11,813,596.67|106.14%|Interest income from parent company increased from ayear earlier|
|Net cash received from disposalof fixed assets, intangible assetsand other long-term assets|66,731,962.61|36,348,248.79|83.59%|Purchasing fixed assets increased from a year earlier|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 The principal paid for entrust financing increased in Cash paid for investment 850,000,000.00 95,983,860.00 785.57%
the period
||||||
|-|-|-|-|-|
|Cash received from absorbinginvestment|-|16,661,794.74|-100.00%|Subsidiary absolve investment from minority at sameperiod of last year while no such money in the period|
|Cash received related with otherfinancing activities|-|3,451.80|-100.00%|Parent company received fractional dividend at sameperiod of last year while no such money in the period|
|Cash paid for debt settlement|261,250,000.00|48,119,369.00|442.92%|Short-term loans paid by parent company increasedfrom a year earlier|
|Cash paid for dividend/profitdistribution or interest expenses|2,890,153.13|2,013,571.61|43.53%|Loan interest paid in the period increased from a yearearlier|
|IV. Influence on cash and cashequivalents due to fluctuation inexchange rate|9,570,512.21|-5,770,988.16|265.84%|Variation of the rate in foreign money currency|

II. Analysis and explanation of significant events and their influence and solutions
√ Applicable□Not applicable
(I) Particular about process of the fund raised and investment of fund raised in the report period The Company implemented a private placement of A-share in year of 2016, totally 1,569,999,998.84 Yuan raised, net money raised amounting to 1,540,732,722.76 Yuan after deducted vary issuance costs (tax included) 29,267,276.08 Yuan.
To improved the efficiency of use of raised funds, and in spirit of maximized the interest for shareholders, reducing financial costs, and on the premise of normal utilization of the raised-funds for raised-fund investments, the idle raised-fund (900 million Yuan at most and can be scroll to use) was allowed to invested in guaranteed financial products ( the products are highly security and better in liquidity) with investment term of one year (since the date obtained approval from shareholders general meeting), that is from 13 December 2016 to 13 December 2017. The above mentioned event has been deliberated and approved by
27th
session of
8th BOD of 2016, the
14th
session of
8th
Supervisory Committee and Second Extraordinary Shareholders General Meeting 2016, agreed by independent directors and also has an agreement from the sponsor institution after review. Till recently, raised fund are use in a standard way under relevant decision and regulations.
Ended as 31 March 2017, actual raised fund was accumulated amounting to 344,513,672.66 Yuan for used, total balance of fund raised amounting to1,205,829,867.32 Yuan (including interest 9,610,817.22 Yuan, and the 900 million Yuan financial products, purchased with the idle raised-fund).
Accumulated 344,513,672.66 Yuan raised-fund are used for the follow as: accumulated 27,659,226.96 Yuan used for intelligent manufacturing construction; accumulated 27,973,781.93 Yuan used for intelligentR&D capacity building and new product development for the intelligence appliance; 18,000,600.00 Yuan used for Smart Life projects and accumulated 270,880,063.77 Yuan used for supplemented the current capital (including interest
147,341.01 Yuan).
Ended as 31 March 2017, among the project of intelligent manufacturing construction: the phase I
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 construction for “intelligent manufacturing (Hefei)” has been completed in the main content, and proactively promotes the Phase II construction. The “intelligent production line construction project of increasing 600000 green energy-saving freezers with medium volume size annually” (freezer intelligent construction project for short), is in the process of plant planning and will complete at end of June 2018, for the construction site is the place where Zhongke Meiling Cryogenic Technology Co., Ltd. locates, new factory for Zhongke Cryogenic Technology are in construction. IntelligentR&D capacity building and new product development for the intelligence appliance is on promotion process step by step; Smart Life projects have the implementing subject of Changmei Technology Co., Ltd. (Changmei Technology for short), in reporting period, Changmei Technology proactively exploit markets and promoted normal business.
(II) 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
Please see the details in "The implementation of the company's annual incentive funds "of "XV-Implementation of thecompany’s stock incentive plan, employee stock ownership plan or other employee incentives " at "Section Five-Important matters" in "2015 Annual Report" of the company disclosed on Mar. 25, 2016.
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) with their granted 2012 annual performance incentive funds and own funds has been fully desterilized, the company's stock purchased by some 2013 annual performance incentive objects (non-directors, supervisors and senior management) with their granted 2013 annual performance incentive funds and own funds has been desterilized by50% for term of holding for two years, see below for the overall reducing holding-shares of some above-mentioned incentive objects; if the stock holding period of the company's stock purchased by 2014 annual performance incentive objects with their granted 2014 annual performance incentive funds and own funds is less than two years, the purchased stock of all incentive objects should be locked according to the commitments. Among the incentive objects, the current directors, supervisors and senior management have not reduced theCompany’s shares purchased by implementing 2012, 2013, and 2014 annual performance incentive plans.
2. Implementation about 2016 performance incentive fund provision and distribution plan
According to the approved “Incentive Plan”, the 2016 operation performance and actual business condition (audited) have came to the granted condition of annual performance incentive fund. The “proposal of accrual 2016
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 annual performance incentive fund of the Company” was deliberated and approved by
29th
session of
8th
BOD and 15th
session of
8th
supervisory committee held on 28 March 2017, and independent directors express independent opinions, interested directors are avoid the voting. The Company agreed to withdraw 24,182,150.92 Yuan as incentive fund(10% of the audited net profit for year of 2016), the event still needs deliberation and approval from the AGM of 2016. the distribution plan for 2016 performance incentive fund will implemented after deliberation procedures done by BOD and Shareholders General meeting.
Found more in Notices (No. 2017-010, No.2017-011 and No.2017-015) released on appointed media Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) dated 30 March 2017.
3. Shareholding and reducing of performance incentive objects of the Company
Up to March 31, 2017, the total number of thecompany’s stock held by incentive objects is 10,161,379 shares, accounting for0.973% of thecompany’s total share capital, of which A stock is 8,828,247 shares, accounting for about0.845% of thecompany’s total share capital, B stock is 1,333,132 shares, accounting for about0.128% of thecompany’s total share capital. Up to March 31, 2017, some 2012& 2013 annual performance incentive objects (non directors, supervisors or senior management) have cumulatively reduced holding of 3,244,577 shares from September 2014 to the end of this reporting period, accounting for0.31% of thecompany’s total share capital, and no shares reduced in the Period
(III) Transaction with Sichuan Changhong Group Finance Co., Ltd
Being deliberated and approved by
18th
session of
8th
BOD and First Extraordinary Shareholders General Meeting held respectively on 18 March 2016 and 6 April 2016, the Company agreed to sign an Agreement on Financial Services with Sichuan Changhong Group Finance Co., Ltd. (Changhong Finance for short) for continues financial services with term of three years. In line with the Agreement, Changhong Finance Company will provide serial financial services as savings and loans, in business scope, according to the requirement of the Company and its subordinate subsidiaries. Related transactions from beginning of the year to end of the Period are as:
Subject to approval from the board of directors and general meeting of the Company, it is agreed for the Company to enter into Financial Service Agreement with Sichuan Changhong Group Finance Co., Ltd. (“Changhong Finance Company”) for a term of three years. Pursuant to the agreement, Changhong Finance Company will provide a series of financial services including savings and loans within its operating scope according to requirements of the Company and its subsidiaries. From the beginning of this year to the end of reporting period, the connected transactions occurred between the Company and Changhong Finance Company are set out below:
In RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increased duringthe Year|Decreasedduring the Year|Ending balance|Interest,handlingcharge paidor received|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increased duringthe Year|Decreasedduring the Year|Ending balance|Interest,handlingcharge paidor received|
|I. Savings in ChanghongGroup Finance Company|1,908,842,163.20|5,986,846,966.68|5,990,227,712.11|1,905,461,417.77|8,822,574.43|
|II. Borrowings fromChanghong GroupFinance Company||||||
|1.Short-term loans||||||
|2.Long-term loans||||||
|III. Other financialbusiness||||||
|1.notes drawing|544,374,441.19|556,671,928.74|447,053,929.82|653,992,440.11|143,335.97|
|2.notes discounted|565,252,574.29|785,255,397.88|242,460,789.18|1,108,047,182.99|6,661,980.44|

 (IV) Other significant events
||||
|-|-|-|
|||Information index for temporary|
|Overview|Date for disclosure||
|||report disclosure|
|Controlling shareholder-Sichuan Changhong Electric Co., Ltd. (SichuanChanghong for short) plans to take some A-stock of the Company and theirfruits (including capital surplus, allotment, bonus and dividend etc.) as thetarget of exchangeable bonds for the private placement|||
|||Juchao Website:|
||2017-2-28|http://www.cninfo.com.cn|
|||(No.: 2017-004)|
|Former staff supervisor Mr. Shang Wen resigned the job as staff supervisor for8th supervisory committee of the Company for individual reason. For normaloperation of the supervisory, the Company holding a worker’s congress on 28Feb. 2017, and Mr. Deng Li approved to supplement as staff supervisor of 8thsupervisory committee of the Company by democratic election, office term issame as the term of 8th supervisory committee.|||
|||Juchao Website:|
||2017-3-2|http://www.cninfo.com.cn|
|||(No.: 2017-005)|
|Approved by the Board Meeting, subordinate subsidiary Jiangxi MeilingElectric Co,., Ltd. (Jiangxi Meiling for short) was agreed to contributed 209.6million Yuan for construction of intelligent production line for the one millionenvironment protection energy-saving refrigerators. Meanwhile, the Companywill increase 200 million Yuan for the construction to Jiangxi Meiling forpurpose of ensuring the smooth implementation of the construction.|||
|||Juchao Website:|
||2017-3-14|http://www.cninfo.com.cn|
|||(No.: 2017-006)|
|Approved by the Board Meeting, subordinate subsidiary ZhongshanChanghong Electric Co,., Ltd. (Zhongshan Changhong for short) was agreed toestablished a Zhongshan Hongyou HVAC Equipment Co., Ltd. (Tentativename, name verify by Industrial & Commerce Bureau should prevail) togetherwith Zhuhai Sanyou Environment Technology Co., Ltd. (Sanyou Environment|||
|||Juchao Website:|
||2017-3-14|http://www.cninfo.com.cn|
|||(No.: 2017-006)|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|for short), the enterprise with superior resources in industry of research anddevelopment, technology, channel and foreign clients. Register capital was 40Million Yuan, including 24 million Yuan contributed by ZhongshanChanghong, the self-owned fund, and 16 million Yuan invested by SanyouEnvironment.|||
|On 21 March 2017, the Company entered into a Strategy Co-operation FrameAgreement with Italy Candy Hoover Group S.r.l. and Candy S.p.A.. Inprinciple of strategic mutual win and playing a synergistic effect in full role inrespect of products and resources, the two parties plans, by friendlynegotiation, to establish strategic partnership in field of refrigerator(ice box)and washing machine, for expanding the market jointly and promotion thebrand for maximizing business value and social value together.|||
|||Juchao Website:|
||2017-3-21|http://www.cninfo.com.cn|
|||(No.: 2017-007)|
|Approved by the Board Meeting, the Company and its subsidiaries were agreedto carry out forward foreign exchange fund transaction from 1 July 2017 to 30June 2018, with transaction balance of $550 million at most. The single servicedelivery period will not over one year. The event should deliberate andapproved by AGM of 2016.|||
|||Juchao Website:|
||2017-3-30|http://www.cninfo.com.cn|
|||(No.: 2017-010; 2017-017)|
|Approved by the Board Meeting, the Company was agreed to invested 371.21million Yuan at most for the production base construction for producing 2million fully-automatic washing machine||Juchao Website:|
||2017-3-30|http://www.cninfo.com.cn|
|||(No.: 2017-010)|
|Approved by the Board Meeting, the Company was agreed to participate in thejudicial sale of plant office building and lands, under the name of AnhuiDongwei, with owned fund in bid price range.On 30 March 2017, the Company involved in the bidding in accordance withrelevant provisions and procedures, and finally successful bidding the plantoffice building under the name of Anhui Dongwei, with covered areaamounting to 86,087.65 M2 and land use right for the 116,233.61 M2. On 12April 2017, the Company accepted a Letter of Affirmation of Auction issuedfrom Shushan People’s Court of Hefei, Anhui Province. Relevant proceduresfor assets transfer is in process in line with relevant regulations recently.|||
|||Juchao Website:|
||2017-3-30,||
|||http://www.cninfo.com.cn|
||2017-4-14||
|||(No.: 2017-010; 2017-024)|
|Approved by the Board Meeting, subsidiary Hefei Meiling Non-Ferrous MetalProducts Co., Ltd. (Meiling Non-Ferrous Metal for short) was agreed tocooperate with Hefei Vanke Real Estate Co., Ltd., in respect of the land held byMeiling Non-Ferrous Metal locates on Liaoyuan Road East, Feidong County,Hefei City. And two parties are signed the Cooperative Contract of Lands ofFeidong Meiling Non-Ferrous Metal|||
|||Juchao Website:|
||2017-3-30|http://www.cninfo.com.cn|
|||(No.: 2017-010; 2017-018)|
|Approved by the Board Meeting, the Company was agreed to establish MeilingKadi Washing Machine Co., Ltd. jointly invested with Candy Hoover GroupS.r.l. (Candy Group for short). Registered capital was 150 million Yuan,including 90 million Yuan cash contributed by the Company, and 60 millionYuan or equivalent US dollar invested by Candy Group in cash.|||
|||Juchao Website:|
||2017-3-30|http://www.cninfo.com.cn|
|||(No.: 2017-010)|
|The resolution of the 19th meeting of the Board of Directors of the company|2017-3-30|Juchao Website:|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|passed and agreed the company to apply for a special credit line of bank notespool with a maximum of 300 million Yuan to China Merchants Bank Co., Ltd.Hefei Branch, and the credit term was one year, the credit variety was mainlyused in bank notes pool special business, and adopted bill pledge.||http://www.cninfo.com.cn|
|||(No.: 2017-010; 2017-019)|
|In reporting period, the Company purchased bank products and trust financialproducts with owned capital of 477 million Yuan, purchased guaranteedfinancial products with idle raised-fund of 400 million Yuan (ended as thePeriod, accumulated 900 million Yuan guaranteed financial products arepurchased by the Company with idle raised fund)|2017-1-24,||
|||Juchao Website:|
||2017-2-16,||
|||http://www.cninfo.com.cn|
||2017-3-23,||
|||(No.: 2017-002; 2017-003;|
||2017-3-25,||
|||2017-008; 2017-009; 2017-020;|
||2017-4-1,||
|||2017-021)|
||2017-4-8||

III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies
IV. Forecast of operation performance from Jan.– June of 2017
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
V. Securities Investment
□ Applicable√ Not applicable
No security investment in Period.
VI. Derivative investment
√ Applicable□Not applicable
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 In 10 thousand Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Ratio of||
|||||||||||Amount of||||
|||Whether|||||||Amount sales||Investmen|investment amount||
||Related||||||Investment|Amount||reserve for|||Actual|
|||related||Initial|||||in the||t amount|at period-end in||
|Operator|relations||Type||Start date|End date|amount at|purchased in the||devaluation of|||gains/losses|
|||trade or||investment|||||reporting||at|net assets of the||
||hip||||||period-begin|reporting period||withdrawing|||in period|
|||not|||||||period||period-end|Company at||
|||||||||||(if applicable)||||
|||||||||||||period-end||
||||Forward foreign|||||||||||
|Financial||||||||||||||
||N/A|No|exchange|63,230.44|2016-6-8|2018-1-24|37,890.69|56,274.11|30,764.62|N/A|63,230.44|12.09%|169.74|
|institution||||||||||||||
||||contract|||||||||||
|Total||||63,230.44|--|--|37,890.69|56,274.11|30,764.62|N/A|63,230.44|12.09%|169.74|
|Capital resource(if applicable)||||Self-owned capital||||||||||
|Lawsuit involved (if applicable)||||Not applicable||||||||||
|Disclosure date for approval from the Board for||||||||||||||
|||||2016-3-19||||||||||
|investment of derivatives (if applicable)||||||||||||||
|Disclosure date for approval from board of||||||||||||||
|shareholders for investment of derivatives (if||||2016-4-7||||||||||
|applicable)||||||||||||||
|||||Risk analysis:||||||||||
|||||1. Market risk: domestic and international economic situation changes may lead to exchange rate fluctuations, forward foreign exchange transactions||||||||||
|||||are under certain market risk. Forward foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange settlement and||||||||||
|Risk analysis and controlling measures for||||||||||||||
|||||sale prices, exchange rate fluctuations. The Company will follow up the exchange fluctuation, on the basis of target rate determined from the business,||||||||||
|derivatives holdings in the Period (including but not||||||||||||||
|||||relying on the research of the foreign currency exchange rates, combined with prediction of consignments, and burdening ability to price variations due||||||||||
|limited to market risk, liquidity risk, credit risks,||||||||||||||
|||||to exchange rate fluctuations, then determine the plan of forward foreign exchange contracts, and make dynamic management to the business, to ensure||||||||||
|operation risk and law risks etc.)||||||||||||||
|||||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||||||||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
|||
|-|-|
||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 changes in market|The Company determines fair value in accordance with the Chapter VII “Determination of Fair Value” carried in the Accounting Standards for|
|price or fair value in the Period, as for analysis of|Business Enterprises No.22 - Recognition and Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered by|
|the fair value of derivatives, disclosed specific|bank and other pricing services. While fair-value of derivatives is mainly obtained according to the balance between prices given by outstanding|
|applied methods and correlation assumption and|contracts and forward prices given by contracts signed during the reporting period with bank. The differences are identified as trading financial assets|
|parameter setting|and liabilities. During the reporting period, forward foreign exchange contracts and losses of the Company is RMB 1,697,400.|
|Specific principle of the accounting policy and||
|calculation for derivatives in the Period compared|Not applicable|
|with last period in aspect of major changes||
||Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out its foreign exchange|
||forward deals in strict compliance with the standardized operation guidelines for listed issuer on main board (2015 amended) issued 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|
|Special opinion on derivative investment and risk|Company conducts no foreign exchange transactions on the purpose of getting profit only, all of the forward foreign exchange transactions are operates|
|control by independent directors|based on normal operating and production, which is relying on specific business operations with purpose of avoiding the preventing the risks in|
||exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the exchange risks exposed by import and export|
||business and thus met its requirement for operation development. There was no speculative operation, no break of relevant rules and regulations and|
||relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders, especially|
||minority shareholders, were not prejudiced.|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 VII. Registration form for receiving research, communication and interview in the report period
√ Applicable□Not applicable
|||||
|-|-|-|-|
|Time|Way|Type|Basic situation index of investigation|
|2017-1-12|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-1-18|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-2-15|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-2-24|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|

VIII. Guarantee outside against the regulation
□Applicable√Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
IX. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable√ Not applicable
The Company had no non-operational fund occupation from controlling shareholders or its related party in the reporting period.
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Hefei Meiling Co., Ltd.
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|4,387,264,191.76|4,058,869,234.63|
|Settlement provisions|||
|Capital lent|||
|Financial liability measured by fair|||
|value and with variation reckoned into|13,876,249.03|12,060,213.30|
|current gains/losses|||
|Derivative financial liability|||
||1,846,882,354.71|1,421,429,723.73|
|Notes receivable|||
||1,366,799,283.25|1,118,960,552.49|
|Accounts receivable|||
|Accounts paid in advance|192,418,144.94|134,706,488.38|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|2,960,006.68|2,645,494.32|
|Dividend receivable|||
|Other receivables|67,095,307.03|39,553,919.44|
|Purchase restituted finance asset|||
|Inventories|2,580,866,215.12|1,974,526,734.86|
|Divided into assets held for sale|||
|Non-current asset due within one|46,984,233.00|12,625,340.00|
|year|||
|Other current assets|1,869,704,048.05|1,454,346,297.42|
|Total current assets|12,374,850,033.57|10,229,723,998.57|
|Non-current assets:|||
|Loans and payments on behalf|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Finance asset available for sales|17,000,000.00|17,000,000.00|
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|93,207,751.18|81,643,631.37|
|Investment property|13,073,485.86|13,275,631.40|
|Fixed assets|1,179,381,188.63|1,204,093,169.72|
|Construction in progress|137,454,259.37|107,037,409.95|
|Engineering material|||
|Disposal of fixed asset|75,834,950.69|75,788,138.47|
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|602,076,289.14|613,969,271.63|
|Expense on Research and|57,494,500.45|45,023,750.60|
|Development|||
|Goodwill|||
|Long-term expenses to be|1,526,586.33|1,132,075.48|
|apportioned|||
|Deferred income tax asset|83,517,585.82|84,264,603.65|
|Other non-current asset|-|34,615,630.00|
|Total non-current asset|2,260,566,597.47|2,277,843,312.27|
|Total assets|14,635,416,631.04|12,507,567,310.84|
|Current liabilities:|||
|Short-term loans|564,267,373.25|288,343,724.73|
|Loan from central bank|||
|Absorbing deposit and interbank|||
|deposit|||
|Capital borrowed|||
|Financial liability measured by fair|||
|value and with variation reckoned into|308,452.50|559,249.58|
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|3,618,196,887.91|2,635,051,740.30|
|Accounts payable|3,119,782,224.32|2,331,899,310.82|
|Accounts received in advance|436,542,611.75|390,935,440.46|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||
|commission payable|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Wage payable|129,841,677.10|189,592,039.00|
|Taxes payable|51,947,328.80|59,849,032.13|
|Interest payable|249,686.32|1,617,352.01|
|Dividend payable|2,545,801.23|2,545,801.23|
|Other accounts payable|681,930,681.87|622,580,323.43|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due within 1|309,908,018.01|272,202,590.10|
|year|||
|Other current liabilities|||
|Total current liabilities|8,915,520,743.06|6,795,176,603.79|
|Non-current liabilities:|||
|Long-term loans|4,751,000.00|38,908,788.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|28,061,416.36|29,696,403.85|
|Special accounts payable|980,000.00|1,400,000.00|
|Projected liabilities|330,050,549.13|331,575,430.79|
|Deferred income|126,091,425.29|142,919,562.49|
|Deferred income tax liabilities|2,081,437.35|1,809,032.00|
|Other non-current liabilities|||
|Total non-current liabilities|492,015,828.13|546,309,217.13|
|Total liabilities|9,407,536,571.19|7,341,485,820.92|
|Owner’s equity:|||
|Share capital|1,044,597,881.00|1,044,597,881.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|2,687,961,060.65|2,687,961,060.65|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Less: Inventory shares|||
|Other comprehensive income|3,140,807.74|3,474,546.95|
|Reasonable reserve|||
|Surplus public reserve|391,029,420.33|391,029,420.33|
|Provision of general risk|||
|Retained profit|1,029,401,100.54|968,097,382.98|
|Total owner’s equity attributable to|5,156,130,270.26|5,095,160,291.91|
|parent company|||
|Minority interests|71,749,789.59|70,921,198.01|
|Total owner’s equity|5,227,880,059.85|5,166,081,489.92|
|Total liabilities and owner’s equity|14,635,416,631.04|12,507,567,310.84|

 Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||3,086,421,708.08|3,071,362,771.31|
|Monetary funds|||
|Financial liability measured by fair|||
|value and with variation reckoned into|13,876,249.03|12,060,213.30|
|current gains/losses|||
|Derivative financial liability|||
||1,280,648,402.63|1,053,598,721.93|
|Notes receivable|||
|Accounts receivable|874,487,724.04|1,006,701,894.37|
|Account paid in advance|285,675,175.03|106,947,474.25|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|64,216,815.48|26,742,423.95|
|Inventories|1,235,796,884.57|1,017,090,374.81|
|Divided into assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|1,829,573,853.91|1,427,283,451.40|
|Total current assets|8,670,696,812.77|7,721,787,325.32|
|Non-current assets:|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Available-for-sale financial assets|17,000,000.00|17,000,000.00|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|994,626,656.75|992,282,289.21|
|Investment property|11,213,543.14|11,332,015.32|
|Fixed assets|844,189,349.75|861,163,999.99|
|Construction in progress|23,062,026.10|19,478,121.20|
|Project materials|||
|Disposal of fixed assets|43,528,935.29|43,494,954.71|
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|426,021,982.94|430,435,091.82|
|Research and development costs|13,504,119.22|12,797,092.26|
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|68,237,610.29|69,138,686.26|
|Other non-current assets|||
|Total non-current assets|2,441,384,223.48|2,457,122,250.77|
|Total assets|11,112,081,036.25|10,178,909,576.09|
|Current liabilities:|||
|Short-term borrowings|497,220,823.25|261,843,724.73|
|Financial liability measured by fair|||
|value and with variation reckoned into|308,452.50|-|
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|2,234,654,075.59|1,734,774,950.13|
|Accounts payable|1,745,414,096.74|1,521,019,717.86|
|Accounts received in advance|94,657,012.35|104,205,506.34|
|Wage payable|40,963,246.24|57,714,577.87|
|Taxes payable|19,533,040.38|25,677,906.64|
|Interest payable|249,686.32|1,617,352.01|
|Dividend payable|2,545,801.23|2,545,801.23|
|Other accounts payable|610,185,989.34|634,561,307.52|
|Divided into liability held for sale|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Non-current liabilities due within 1|||
||257,734,651.20|257,750,238.18|
|year|||
|Other current liabilities|||
|Total current liabilities|5,503,466,875.14|4,601,711,082.51|
|Non-current liabilities:|||
|Long-term loans|4,751,000.00|4,751,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|28,061,416.36|29,696,403.85|
|Special accounts payable|||
|Projected liabilities|330,050,549.13|331,575,430.79|
|Deferred income|62,683,214.36|64,601,290.18|
|Deferred income tax liabilities|2,081,437.35|1,809,032.00|
|Other non-current liabilities|||
|Total non-current liabilities|427,627,617.20|432,433,156.82|
|Total liabilities|5,931,094,492.34|5,034,144,239.33|
|Owners’ equity:|||
|Share capita|1,044,597,881.00|1,044,597,881.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|2,753,017,007.10|2,753,017,007.10|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|390,811,254.65|390,811,254.65|
|Retained profit|992,560,401.16|956,339,194.01|
|Total owner’s equity|5,180,986,543.91|5,144,765,336.76|
|Total liabilities and owner’s equity|11,112,081,036.25|10,178,909,576.09|

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
Hefei Meiling Co., Ltd.The First Quarterly Report of 2017 3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|3,666,603,957.50|2,926,400,488.89|
|Including: Operating income|3,666,603,957.50|2,926,400,488.89|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|3,614,321,385.47|2,877,106,988.41|
|Including: Operating cost|2,934,581,098.67|2,286,732,134.67|
|Interest expense|||
|Commission charge and commission|||
|expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|28,783,478.79|27,786,160.01|
|Sales expenses|541,328,415.48|451,951,041.92|
|Administration expenses|112,056,183.22|97,624,683.46|
|Financial expenses|-17,885,269.18|-5,371,504.22|
|Losses of devaluation of asset|15,457,478.49|18,384,472.57|
|Add: Changing income of fair|||
||1,507,583.23|-|
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||12,860,815.50|358,659.99|
|with “-”)|||
|Including: Investment income on|||
||-1,036,950.02|-4,627,641.38|
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|III. Operating profit (Loss is listed with|||
||66,650,970.76|49,652,160.47|
|“-”)|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Add: Non-operating income|16,629,279.66|10,126,101.23|
|Including: Disposal gains of|||
||16,683.33|137,329.94|
|non-current asset|||
|Less: Non-operating expense|10,608,339.93|590,032.72|
|Including: Disposal loss of|||
||10,605,012.04|324,113.57|
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|72,671,910.49|59,188,228.98|
|Less: Income tax expense|10,357,138.93|6,528,778.06|
|V. Net profit (Net loss is listed with “-”)|62,314,771.56|52,659,450.92|
|Net profit attributable to owner’s of|||
||61,303,717.56|53,709,680.24|
|parent company|||
|Minority shareholders’ gains and|||
||1,011,054.00|-1,050,229.32|
|losses|||
|VI. Net after-tax of other comprehensive|||
||-513,283.80|-401,296.49|
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|-333,739.21|-282,910.76|
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will not be reclassified subsequently to|||
|profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|-333,739.21|-282,910.76|
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will be reclassified subsequently to profit|||
|or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale financial|||
|assets|||
|4. The effect hedging portion|||
|of gains or losses arising from cash flow|||
|hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign currency|-333,739.21|-282,910.76|
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|-179,544.59|-118,385.73|
|shareholders|||
|VII. Total comprehensive income|61,801,487.76|52,258,154.43|
|Total comprehensive income|||
||60,969,978.35|53,426,769.48|
|attributable to owners of parent Company|||
|Total comprehensive income|||
||831,509.41|-1,168,615.05|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.0587|0.0703|
|(ii) Diluted earnings per share|0.0587|0.0703|

 Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|1,934,766,853.38|1,550,458,365.77|
|Less: Operating cost|1,767,844,331.87|1,305,236,415.06|
|Operating tax and extras|14,808,515.57|12,227,268.52|
|Sales expenses|91,268,818.65|163,483,635.62|
|Administration expenses|54,006,692.81|46,061,487.37|
|Financial expenses|-15,115,474.14|-7,456,125.90|
|Losses of devaluation of asset|-1,527,203.79|-140,138.17|
|Add: Changing income of fairvalue(Loss is listed with “-”)|||
||1,507,583.23|-|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Investment income (Loss is|||
||15,714,133.06|5,760,147.93|
|listed with “-”)|||
|Including: Investment income|||
||1,816,367.54|773,846.56|
|on affiliated company and joint venture|||
|II. Operating profit (Loss is listed|||
||40,702,888.70|36,805,971.20|
|with “-”)|||
|Add: Non-operating income|3,746,138.59|7,031,366.56|
|Including: Disposal gains of|||
||-|92,759.42|
|non-current asset|||
|Less: Non-operating expense|906,200.26|310,277.05|
|Including: Disposal loss of|||
||902,891.26|244,077.48|
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||43,542,827.03|43,527,060.71|
|“-”)|||
|Less: Income tax expense|7,321,619.88|6,541,602.43|
|IV. Net profit (Net loss is listed with|||
||36,221,207.15|36,985,458.28|
|“-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|36,221,207.15|36,985,458.28|
|VII. Earnings per share:|||
|(i) Basic earnings per share|0.0347|0.0484|
|(ii) Diluted earnings per share|0.0347|0.0484|

 Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|3,620,133,971.51|2,763,169,371.62|
|services|||
|Net increase of customer deposit|||
|and interbank deposit|||
|Net increase of loan from central|||
|bank|||
|Net increase of capital borrowed|||
|from other financial institution|||
|Cash received from original|||
|insurance contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings and|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|investment|||
|Net increase of amount from|||
|disposal financial assets that measured|||
|by fair value and with variation|||
|reckoned into current gains/losses|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Write-back of tax received|58,851,023.20|73,998,123.72|
|Other cash received concerning|||
||10,074,167.07|10,898,715.23|
|operating activities|||
|Subtotal of cash inflow arising from|||
||3,689,059,161.78|2,848,066,210.57|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|2,524,208,265.91|2,164,889,172.42|
|service|||
|Net increase of customer loans|||
|and advances|||
|Net increase of deposits in central|||
|bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee|||
|slip|||
|Cash paid to/for staff and workers|332,772,781.98|329,027,920.11|
|Taxes paid|95,836,698.03|79,046,193.58|
|Other cash paid concerning|||
||184,970,402.42|135,505,177.34|
|operating activities|||
|Subtotal of cash outflow arising from|||
||3,137,788,148.34|2,708,468,463.45|
|operating activities|||
|Net cash flows arising from operating|||
||551,271,013.44|139,597,747.12|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|430,000,000.00|500,000,000.00|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|investment|||
|Cash received from investment|||
||5,688,957.18|4,986,301.37|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|679,858.84|216,587.52|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||24,352,099.28|11,813,596.67|
|investing activities|||
|Subtotal of cash inflow from investing|||
||460,720,915.30|517,016,485.56|
|activities|||
|Cash paid for purchasing fixed,|||
||66,731,962.61|36,348,248.79|
|intangible and other long-term assets|||
|Cash paid for investment|850,000,000.00|95,983,860.00|
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||916,731,962.61|132,332,108.79|
|activities|||
|Net cash flows arising from investing|||
||-456,011,047.31|384,684,376.77|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
||-|16,661,794.74|
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|436,482,592.50|384,191,670.80|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||-|3,451.80|
|financing activities|||
|Subtotal of cash inflow from financing|||
||436,482,592.50|400,856,917.34|
|activities|||
|Cash paid for settling debts|261,250,000.00|48,119,369.00|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|Cash paid for dividend and profit|||
||2,890,153.13|2,013,571.61|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from|||
||264,140,153.13|50,132,940.61|
|financing activities|||
|Net cash flows arising from financing|||
||172,342,439.37|350,723,976.73|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|9,570,512.21|-5,770,988.16|
|exchange rate|||
|V. Net increase of cash and cash|||
||277,172,917.71|869,235,112.46|
|equivalents|||
|Add: Balance of cash and cash|||
||3,986,098,419.76|2,121,161,238.01|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||4,263,271,337.47|2,990,396,350.47|
|equivalents at the period -end|||

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
6. Cash Flow Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|2,104,461,575.79|1,459,425,734.39|
|services|||
|Write-back of tax received|17,767,311.59|42,807,549.95|
|Other cash received concerning|||
||5,428,029.20|5,404,054.78|
|operating activities|||
|Subtotal of cash inflow arising from|||
||2,127,656,916.58|1,507,637,339.12|
|operating activities|||
|Cash paid for purchasing|||
||1,752,073,860.12|1,197,030,174.41|
|commodities and receiving labor|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|service|||
|Cash paid to/for staff and workers|146,858,607.87|134,305,529.47|
|Taxes paid|26,420,881.15|21,297,508.43|
|Other cash paid concerning|||
||54,920,570.75|60,265,931.74|
|operating activities|||
|Subtotal of cash outflow arising from|||
||1,980,273,919.89|1,412,899,144.05|
|operating activities|||
|Net cash flows arising from operating|||
||147,382,996.69|94,738,195.07|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
||430,000,000.00|500,000,000.00|
|investment|||
|Cash received from investment|||
||5,688,957.18|4,986,301.37|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|566,647.40|205,587.52|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||18,500,025.97|7,772,259.09|
|investing activities|||
|Subtotal of cash inflow from investing|||
||454,755,630.55|512,964,147.98|
|activities|||
|Cash paid for purchasing fixed,|||
||32,845,762.65|24,183,155.13|
|intangible and other long-term assets|||
|Cash paid for investment|850,528,000.00|95,650,000.00|
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||883,373,762.65|119,833,155.13|
|activities|||
|Net cash flows arising from investing|||
||-428,618,132.10|393,130,992.85|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2017
||||
|-|-|-|
|investment|||
|Cash received from loans|396,526,192.50|380,831,650.44|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||158,844,058.57|9,427,786.43|
|financing activities|||
|Subtotal of cash inflow from financing|||
||555,370,251.07|390,259,436.87|
|activities|||
|Cash paid for settling debts|261,250,000.00|35,028,969.00|
|Cash paid for dividend and profit|||
||2,309,091.67|1,601,868.57|
|distributing or interest paying|||
|Other cash paid concerning|||
||1,788,556.49|96,569.57|
|financing activities|||
|Subtotal of cash outflow from|||
||265,347,648.16|36,727,407.14|
|financing activities|||
|Net cash flows arising from financing|||
||290,022,602.91|353,532,029.73|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|8,527,359.66|-5,237,628.13|
|exchange rate|||
|V. Net increase of cash and cash|||
||17,314,827.16|836,163,589.52|
|equivalents|||
|Add: Balance of cash and cash|||
||3,067,671,385.08|1,654,499,494.28|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||3,084,986,212.24|2,490,663,083.80|
|equivalents at the period -end|||

II. Audit report
Whether the
1st
quarterly report has been audited or not
□Yes√ No
The
1st
quarterly report of the Company has not been audited
Hefei Meiling Co., Ltd.
Chairman: Liu Tibin
18 April 2017