HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 HEFEI MEILING CO., LTD.
SEMI-ANNUAL REPORT 2015
August 2015
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 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 the Semi-Annual Report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
There are no 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 discussing the Semi-Annual Report in both ways of site and communication.
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either.
Chairman of the Company Mr. Liu Tibin, President Mr. Li Wei, Vice President and chief financial officer Mr. Zhang Xiaolong and Mr.Luo Bo, person in charge of accounting organ (accounting supervisor) hereby confirm that the Financial Report of Semi-Annual Report 2015 is authentic, accurate and complete.
The Financial Report of Semi-Annual Report 2015 of the Company had not been audited by CPAs.
Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a
Substantial commitment for investors. Investors are advised to exercise caution of investment risks.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Content
Section I. Important Notice, Contents and Paraphrase .......................................................... 1 Section II. Company Profile ...................................................................................................... 4 Section III. Accounting data and summary of financial indexes ........................................... 6 Section IV. Report of the Board of Directors ........................................................................... 9 Section V. Important Events .................................................................................................... 32 Section VI. Changes in Shares and Particulars about Shareholders ................................... 99 Section VII. Preferred Stock .................................................................................................. 104 Section VIII Particular about Directors, Supervisors, Senior Executives and Employees105 Section IX. Financial Report ................................................................................................. 106 Section X. Documents Available for Reference ................................................................. 240
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 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 Group Co., Ltd.|
|Hong Kong Changhong|Refers to|Changhong (Hong Kong) Trading Company Limited|
|Meiling Group|Refers to|Hefei Meiling Group Holdings Limited|
|Xingtai Holding|Refers to|Hefei Xingtai Holding Group Co., Ltd.|
|Shine Wing|Refers to|Shine Wing Certified Public Accountants Co., Ltd. (LLP.)|
|Changhong Air-conditioner|Refers to|Sichuan Changhong Air-conditioner Co., Ltd.|
|Jiangxi Meiling Electric|Refers to|Jiangxi Meiling Electrical Co., Ltd.|
|Mianyang Meiling|Refers to|Mianyang Meiling Refrigeration Co., Ltd.|
|Zhongshan Changhong|Refers to|Zhongshan Changhong Electric Co., LTD|
|Mianyang Meiling Software|Refers to|Mianyang Meiling Software Technology Co., Ltd.|
|Zhiyijia|Refers to|Sichuan Zhiyijia Network Technology Co., Ltd.|
|Changhong Finance Company|Refers to|Sichuan Changhong Group Finance Co., Ltd.|
|Tianyou Guigu|Refers to|Sichuan Tianyou Guigu Technology Co., Ltd.|
|Huayi Compressor|Refers to|Huayi Compressor Co., Ltd.|
|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 SEMI-ANNUAL REPORT 2015 Section II. Company Profile
I. Company information
|||||
|-|-|-|-|
||MEILINGDIANQI,|||
|Short form of the Stock||Stock code|000521, 200521|
||WANMEILING-B|||
|Short form of the Stock after||||
||N/A|||
|changed (if applicable)||||
|Listing stock exchange|Shenzhen Stock Exchange|||
|Chinese name of the Company|合肥美菱股份有限公司|||
|Short form of the Company (in||||
||美菱电器|||
|Chinese)||||
|Foreign name of the Company(if||||
||HEFEI MEILING CO.,LTD.|||
|applicable)||||
|Abbr. of English name of the||||
||HFML|||
|Company(if applicable)||||
|Legal representative|Liu Tibin|||

II. Contact person and ways
||||
|-|-|-|
||Secretary of the Board|Representative of Securities affairs|
|Name|Li Xia|Zhu Wenjie|
||No. 2163, Lian Hua Road, Economic and|No. 2163, Lian Hua Road, Economic andTechnology Development Zone, Hefei|
|Contact adds.|||
||Technology Development Zone, Hefei||
|Tel.|0551-62219021|0551-62219021|
|Fax.|0551-62219021|0551-62219021|
|E-mail|lixia@meiling.com|wenjie.zhu@meiling.com|

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company
has no change in reporting period, found more details in Annual Report 2014.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation place for semi-annual report have no change in reporting period, found more details in Annual Report 2014.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and organization code have no change in reporting period, found more details in Annual Report 2014.
4. Other relevant information
Whether other relevant information has changed in reporting period or not
□ Applicable √ Not applicable
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section III. Accounting data and summary of financial indexes 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
|||||||
|-|-|-|-|-|-|
|||||Same period of last|Increase/decrease in|
|||Current period||||
|||||year|this report y-o-y|
|Operating revenue (RMB)|6,426,917,289.25||6,344,389,052.17||1.30%|
|Net profit attributable to shareholders of|158,369,766.68||159,106,275.83|||
||||||-0.46%|
|the listed company(RMB)||||||
|Net profit attributable to shareholders of||||||
|the listed company after deducting||148,569,574.10||143,657,925.11|3.42%|
|non-recurring gains and losses(RMB)||||||
|Net cash flow arising from operating|343,410,987.03||-272,408,725.76|||
||||||226.06%|
|activities(RMB)||||||
|Basic earnings per share (RMB/Share)|0.2074||0.2083||-0.46%|
|Diluted earnings per share (RMB/Share)|0.2074||0.2083||-0.46%|
||||||0.12 percent point|
|Weighted average ROE (%)||4.52%||4.64%||
||||||down|
||||||Increase/decrease in|
||||||this report-end over|
|||End of current period||End of last period||
||||||that of last|
||||||period-end|
|Total assets (RMB)|10,467,292,489.73||9,009,014,201.70||16.19%|
|Net assets attributable to shareholder of|3,526,953,220.26||3,422,746,664.67|||
||||||3.04%|
|listed company(RMB)||||||

Total share capital of the Company up to a trading day before disclosure:
|||
|-|-|
|Total share capital of the Company up to a trading||
||763,739,205|
|day before disclosure (Share)||

Whether share capital of the Company, from period-end to the disclosure date of semi-annual report, has changed and has influenced on amount ofowners’ equity due to the new shares issuing, increase issues in stocks,
allotment, stock ownership incentive exercise and buy-back etc. or not
□Yes√No
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of||Net assets attributable to shareholders of||
||listed company||listed company||
||Amount in this||Amount at||
|||Amount in last period||Amount at period-begin|
||period||period-end||
|Chinese GAAP|158,369,766.68|159,106,275.83|3,526,953,220.26|3,422,746,664.67|
|Items and amount adjusted by foreign accounting rules|||||
|Foreign accounting rules|158,369,766.68|159,106,275.83|3,526,953,220.26|3,422,746,664.67|

 The Company has no difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period.
3. Reasons for the differences of accounting data under accounting rules in and out of China√ Applicable□Not applicable
The―Notice of Relevant Issues of Audit for Company with Domestically Foreign SharesOffering‖ was issued from CSRC dated 12 September 2007, since the day issuing, cancel the previous―dualaudit‖ 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 BusinessEnterprise‖ in China,
and therefore, there are no differences of accounting data under accounting rules in and out of
China at period-end.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable□Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset|-5,682,027.31|Found in ―Non-operatingexpenditure‖|
|(including the write-off that accrued for impairment of|||
|assets)|||
|Governmental subsidy reckoned into current|12,344,884.49|Found in ―Non-operatingexpenditure‖|
|gains/losses (not including the subsidy enjoyed in quota|||
|or ration according to national standards, which are|||
|closely relevant to enterprise’s business)|||
||517,808.22|Found in ―Investmentincome‖|
|Gain/loss from commissioned investment or assets|||
|Held transaction financial asset, gains/losses of changes|4,133,602.00|Found in ―Investmentincome‖ and ―Changes infair value gains/losses‖|
|of fair values from transaction financial liabilities, and|||
|investment gains from disposal of transaction financial|||
|asset, transaction financial liabilities and financial asset|||
|available for sales, exclude the effective hedging|||
|business relevant with normal operations of the|||
|Company|||
|Other non-operating income and expenditure except for|-1,122,350.47|Found in ―Non-operatingexpenditure‖|
|the aforementioned items|||
|Impact on income tax|503,618.35|——|
|Impact on minority shareholders’ equity (post-tax)|-111,894.00|——|
|Total|9,800,192.58|--|

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
In reporting period, the Company has no particular about 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
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section IV. Report of the Board of Directors
I. Summary
For the first half of 2015, the overall domestic economy presented to be stable with steady growth, especially the distinct warming-back of real estate market. However, declining pressure and difficulties also existed in economics. For the first half year, our GDP experienced a year-on-year increase of7.0%; the three pillar demands decreased simultaneously; the aggregate import and export volume decreased by6.9%; investments to fixed assets recorded nominal increase of11.4%, representing a drop of 2.1 percentage points as compared to the first quarter; the aggregate retail sales amount of consumptives recorded a year-on-year increase of10.4%, representing a drop of 0.2 percentage points as compared to the first quarter.
In the first half year, competition was getting more furious for home appliance industry, remarking deteriorating market conditions. During the early period, as driven by the advantageous policies relating to home appliances sent to countryside and energy saving, this industry was able to enter into high speed development phrase. However, as those policies gradually faded out, home appliance industry of China began to fluctuate under the―NewNormal‖ economic conditions, in particular, the overall performance of both domestic and export refrigerators and air conditioners continued to shrink in 2015. According to China Market Monitor, retail volume of the domestic refrigerators sector for the period between January to June 2015 recorded a year-on-year decrease of2.12%, and9.03% for air conditioner sector. As illustrated by custom data, export sales of refrigerators sector for the period between January to June 2015 recorded a year-on-year decrease of1.18%, and8.01% for air conditioner sector. During the reporting period, the Company continued to promote its strategy of―Double Three Strategies and OneCenter‖ and practically carry out the operating policy of―leading products, sales transformation and improvedmanagement‖ as determined at the beginning of the year, so as to actively respond to all the external negative effects and in turn enhance its comprehensive competitiveness, under the guideline of Meiling Dream. During the reporting period, the Company realized operating income of RMB 6.427 billion, representing a year-on-year increase of1.30%; and it also realized RMB 158.3698 million net profit attributable to shareholders of listed issuer, representing a year-on-year decrease of0.46%.
II. Analysis on major operations
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 (I) Summary
Shows no difference with the summary disclosed in Report of the Board of Director
□Yes√No
For the period from January to June 2015, business segment of refrigerator and freezing box realized operating revenue of RMB 3.511 billion approximately, with a decrease of1.11% y-o-y. According to CMM, Meiling refrigerators occupied market share of7.85% in domestic market in terms of retail sales for the period from January to June 2015, increasing0.29% of the same period of last year; Meiling refrigerators accounted for9.42% of the market share for the period from January to June 2015, increasing1.14% of the same period of last year.
For the period from January to June 2015, business segment of air conditioner realized operating income of RMB 2.442 billion approximately, with an increase of4.25% y-o-y. For the period from January to June 2015, business segment of washing machine realized income of RMB 0.117 billion approximately, with an increase of34.17% y-o-y.
(II) Year-on-year changes of main financial data
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Same period of last|Y-o-y||
|||Current period||||Reasons for changes|
|||||year|increase/decrease||
|Operation revenue|6,426,917,289.25||6,344,389,052.17||1.30%|——|
|Operation cost|5,084,245,127.90||4,780,495,721.56||6.35%|——|
|Sales expenses|945,446,083.20||1,156,472,220.52||-18.25%|——|
|Administrative|192,562,243.42||194,547,455.17||||
||||||-1.02%|——|
|expenses|||||||
|Financial cost|-45,802,594.42||-43,840,298.90||-4.48%|——|
||14,512,173.60||36,794,783.31|||Mainly because subsidiary|
|||||||Mianyang Meiling Software|
|||||||enjoys the income tax|
|Income tax||||||preferential policy and part|
||||||-60.56%||
|expense||||||of the subsidiaries made up|
|||||||the annual losses of|
|||||||previous years by pre-tax|
|||||||profit|
|R&D expenses||206,928,659.96||215,494,155.61|-3.97%|——|
|Net cash flow|343,410,987.03||-272,408,725.76|||Mainly because the sales|
||||||226.06%||
|arising from||||||received in the Period|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||
|-|-|-|-|-|-|-|
|operation activities||||||increased on a y-o-y base|
||-65,011,572.46||33,272,248.97|||Mainly because new|
|Net cash flow|||||||
|||||||associated enterprise|
|arising from|||||||
||||||-295.39%|invested in the Period and|
|investment|||||||
|||||||increasing capital for part of|
|activities|||||||
|||||||the associated enterprise|
||-164,640,005.09||718,848,755.01|||Mainly because the|
|Net cash flow|||||||
|||||||short-term loans paid by|
|arising from|||||-122.90%||
|||||||parent company in the|
|financing activities|||||||
|||||||Period increased y-o-y|
|Net increase of|123,472,277.33||477,017,942.02|||The same as ―Net cash flow|
|cash and cash|||||-74.12%|arising from financing|
|equivalent||||||activities‖|
|Financial assets|||||||
|||||||Mainly due to the fair value|
|measured by fair|||||||
|||||||change of forward foreign|
|value and whose|||||||
|||3,572,100.00||-|100%|exchange contract carried|
|change is recorded|||||||
|||||||out by the Company in the|
|in current gains|||||||
|||||||Period|
|and losses|||||||
|||||||Mainly due to the notes|
|Notes receivable||1,786,165,001.95||1,223,468,044.05|45.99%|received increased in the|
|||||||Period|
|||||||Mainly because the|
|Account||||||proportion of sales from|
|||1,993,308,900.76||1,160,192,277.00|71.81%||
|receivables||||||credit customer increased|
|||||||y-o-y in the Period|
|||||||Mainly because the accrued|
|||||||interest of the time deposit|
|||||||of subsidiary Zhongshan|
|Interest receivable||582,870.63||-|100%||
|||||||Changhong was recognized,|
|||||||and there no such item in|
|||||||last year|
|||||||Mainly because the export|
|Other account||||||drawback increased in the|
|||39,765,529.55||28,729,328.80|38.41%||
|receivable||||||Period without received|
|||||||temporary|
|||||||Mainly because new|
|||||||associated enterprise|
|Long-term equity|||||||
|||78,096,234.75||14,211,004.21|449.55%|invested in the Period and|
|investment|||||||
|||||||increasing capital for part of|
|||||||the associated enterprise|
|Construction in|||||||
|||28,235,524.90||62,766,707.57|-55.02%|Mainly due to the|
|progress|||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||
|-|-|-|-|-|
|||||construction in process are|
|||||transfer to capital by parent|
|||||company in the Period|
|||||Mainly because the R&D|
|||||investment increased by|
|Expense on|||||
|Research and|38,620,703.41|25,194,157.09|53.29%|parent company, which are|
|Development||||not transfer to capital|
|||||temporary|
|||||Mainly because new time|
|Other non-current||||deposit increased by|
||41,633,616.00|-|100%||
|asset||||subsidiary Zhongshan|
|||||Changhong in the Year|
|Financial liabilities|||||
|||||The same as ―Financial|
|measured by fair|||||
|||||assets measured by fair|
|value and whose|||||
||-|81,170.00|-100.00%|value and whose change is|
|change is recorded|||||
|||||recorded in current gains|
|in current gains|||||
|||||and losses‖|
|and losses|||||
|||||Mainly due to the|
|||||un-matured note payable|
|Notes payable|2,638,130,242.78|1,553,110,292.55|69.86%||
|||||increased at end of the|
|||||Period|
|||||Mainly because the salary,|
|||||bonus and subsidy for last|
|Wage payable|105,447,267.73|156,537,212.29|-32.64%||
|||||year which are accrued are|
|||||paid in the Period|
|||||Mainly because payable|
|||||VAT increased over that of|
|Taxes payable|134,142,270.74|51,153,350.18|162.24%||
|||||year-begin for sale peak|
|||||season during the Period|
|||||Mainly because the|
|||||Company has bonus carried|
|Dividend payable|12,592,208.16|2,237,640.91|462.74%|out in the Peirod, and part of|
|||||the shareholders are not|
|||||withdrawal their bonus|
|||||Mainly because the|
|||||long-term loans from|
|Long-term loans|48,400,646.40|18,947,000.00|155.45%|subsidiary Zhongshan|
|||||Changhong increased in the|
|||||Period|
|||||Mainly because part of the|
|Minority interests|23,989,945.95|15,634,189.83|53.45%|subsidiaries get a profit and|
|||||buy the Minority|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||
|-|-|-|-|-|
|||||shareholders' equity of|
|||||subsidiaries in the Period|
|||||The same as ―Financial|
|||||assets measured by fair|
|Changing income|||||
|of fair value(Loss|3,653,270.00|-|100.00%|value and whose change is|
|is listed with ―-‖)||||recorded in current gains|
|||||and losses‖|
|||||Mainly because the|
|Investment income|||||
|(Loss is listed with|-5,484,432.72|-784,297.22|-599.28%|associated enterprise losses|
|―-‖)||||y-o-y|
|Including:|||||
|Investment income||||Follow ―investment|
|on affiliated|-6,482,572.94|-784,297.22|-726.55%||
|||||income‖|
|company and joint|||||
|venture|||||
|Including:||||Mainly because the earnings|
|Disposal income|||||
||14,776.00|1,469,461.36|-98.99%|from fixed assets disposal|
|of non-current|||||
|||||decreased y-o-y|
|asset|||||
|||||Mainly because the losses|
|Non-operating|||||
||9,264,613.15|2,812,927.92|229.36%|from fixed assets disposal|
|expense|||||
|||||increased y-o-y|
|Including:|||||
|||||Follow ―Non-operating|
|Disposal loss of|5,696,803.31|554,394.53|927.57%||
|||||expense‖|
|non-current asset|||||
|||||Mainly because part of the|
|Minority|||||
|||||subsidiaries get a profit|
|shareholders’ gains|673,108.14|1,890,652.45|-64.40%||
|||||declined on a y-o-y basis in|
|and losses|||||
|||||the Period|

(III)Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period (IV)The future development and planning extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize statement□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure
documents as prospectus, private placing memorandum and recapitalize statement
(V)Summary on the progress of the operation plan as disclosed previously by the
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Company during the reporting period
During the Period, the Company formulated an operation plan for year of 2015 by closely around the established development strategy and business plan for year of 2015, main works are as: (1)Leading Products
Brand competition was more intensified in 2015. Since industrial scale would not continue to expand, brand upgrade remained as the key point for development. Adhering to its two major products-oriented strategy (namely smart and frequency conversion series), the Company made leading position in smart and frequency conversion products, and promoted―high-end differentiation, middle-end serialization and low-endgeneralization‖ in relation to product research and development. According to the experiment and reflect from users of CHiQ series I products, and taking into account the smart development trend of this industry, the Company is in the process of developing new CHiQ series products. In addition, the Company increased coordination with upstream compressor manufacturers in connection with developing frequency conversion integrated products. On 9 March 2015, the Company announced that it begun to cease production of fixed frequency refrigerators with capacity of 260L or above at the opening ceremony of―change for frequency conversionproducts‖ campaign across the nation, which improved its brand and product image. For the period from January to June, sales of frequency conversion refrigerators accounted for more than20%, laying foundation for its future development.
(2)Switch of sales model
As for domestic market, the Company changed its sales model to end-driven model from the original policy-supported-driven model, aiming to continuously enhancing the operating capability of its marketing entities and end sales capability. The Company raised ranking in domestic refrigerator market, with continuous growth in freezer and washing machine segment. As affected by the overall decline of the refrigerator industry, the Company maintained substantially the same revenue as last year. As for overseas market, the Company remained focused on establishment of core customers, and sales to those core customers increased relatively high. Meanwhile, through adjustment to refrigerator products structure, sales contribution and scale of large and middle sized refrigerators were increased, realizing overall growth of refrigerators, freezers and air conditioners. Besides, the Company received preliminary effect in building its own brands in overseas market. (3)Management enhancement
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 The Company emphasized performance-related culture and established performance-based assessment system with clear target, quantitative index and performance orientation. In order to perfect staff construction system, the Company established talents base comprising of excellent university students and potential leaders. In order to further arouse enthusiasm of itsR&D staff, the Company completed occupation development planning for them. By continuously carrying out works to improve human, substance and money efficiency, the Company was able to strengthen risk control, optimize internal procedure system, carry out value creation activities thoroughly and raise its comprehensive competitiveness.
III. Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of|
||||Gross||||
|||||operating|operating cost|gross profit|
||Operating revenue|Operating cost|profit||||
|||||revenue over|over same|ratio over|
||||ratio||||
|||||same period of|period of last|same period|
|||||last year|year|of last year|
|According to industries|||||||
|Manufacture of|||||||
|household|6,160,055,353.93|4,849,322,744.97|21.28%|1.56%|7.31%|-4.21%|
|appliances|||||||
|According to products|||||||
|Refrigerators,|||||||
||3,510,601,243.62|2,707,916,216.04|22.86%|-1.11%|2.42%|-2.66%|
|freezers|||||||
|Air|||||||
||2,441,545,800.41|1,973,497,153.25|19.17%|4.25%|13.36%|-6.50%|
|conditioning|||||||
|Washing|||||||
||117,350,072.10|94,819,325.89|19.20%|34.17%|35.74%|-0.93%|
|machine|||||||
|Others|90,558,237.80|73,090,049.79|19.29%|5.61%|13.62%|-5.69%|
|According to region|||||||
|Domestic|4,848,200,937.56|3,657,366,355.08|24.56%|-4.55%|0.88%|-4.07%|
|Foreign|1,311,854,416.37|1,191,956,389.89|9.14%|33.09%|33.36%|-0.18%|

 IV. Core competence analysis
(I)Company strength
1. Brand capacity
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Hefei Meiling Co., Ltd., one of the famous home appliances manufacturers in the PRC, owns several product lines such as refrigerator, freezing box and air conditioner. Meiling refrigerator, the leading products of the Company falls within the national inspection-free products and the first batch of national famous products, Meiling trademark is listed as one of the most valuable brands in the PRC. The trademark―Athena‖ in refrigerator, freezer (services) of the Company was recognized as the famous mark in Anhui Province. Targeting to further improve its brand image so as to satisfy the need for product transformation and upgrade, the Company designed new LOGO in the first half year, and intended to launch the new LOGO in the later half year. In particular, the latest version of new LOGO will be put in products, terminal display and internal propaganda products, new LOGO release conference will be convened as appropriate to release the latest LOGO image and brand proposition, so as to improve the new brand image in general.
2. Product capacity
The Company has been focusing on refrigerator industry for 30 years, launching many refrigerator products of different types, including Athena series superior refrigerators, the coldest refrigerator across the world with the record of-192℃ and top superior energy-saving refrigerator with daily electricity consumption of 0.23 degree and other products which represented the industrial development trend. As for product quality, the Company owned advanced development and quality assurance systems, and received certification of ISO9001 and ISO14000 from domestic and overseas authorities. 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, air cooling, intelligence and copious cooling. As for product development, combine with technology development trend and characteristics of demand from upgrades in consumers, the Company, in 2015, will focus on development of CHiQ intelligent products and frequency conversion products with obvious upgrading in product structure.
3. Operation capacity
The Company actively carried out superior management activity and enhanced its fundamental management. The Company established healthy internal control system, strengthened management control, promoted standardized management through information and prevented operation risks. In 2015, the Company carried out enhancements in personnel, capital and materials; continues to hoisting capacity of internal management, and enhance the competitiveness of enterprises.
4. Marketing capacity
The Company established healthy sales network and service system. Meanwhile, it established its business marketing model by means of joint ventures. The Company continued to intensify
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 construction of marketing team, and realized balanced development in various channels including chain, wholesale and e-business, etc. There are 250 new Changhong-Meiling exclusive shops open in first half of the Year; also, construction of Changhong-Meiling outlet is being progressed well. Meanwhile, the Company expanded into overseas markets with products exported to more than 100 countries and regions around the world.
(II) Potential risks and countermeasures
||
|-|
|The Company will face a grim situation of macroeconomic growth, cold industry, increased|
|competition, labor tension, human resources costs rising sharply, and crashes from new business|
|models and internet.|

1. Cross-boundary impact from internet
With the arrival of the Internet era and the smart times, the new business models and new product form emerge in endlessly, the Internet era pursues the user experience and rapid response, the traditional industries and even the emerging industries which cannot keep up with the trend of times may easily be replaced or even to be overturned. The new game rules have brought strong senses of crisis and urgency.
2. Industry competition further aggravates, impact by the cline of whole industry
In recent years, the brand pattern of both the domestic and abroad appliances industry has been undergoing major upheaval and adjustment, the brands and enterprises do not take the initiative to keep up with the changing situations would be eliminated. The era of rapid growth in the whole industry has gone, and now it has entered the era of micro-growth or decline, the industry has entered a phase of aggressive growth. The severe industry competition may result in the irrational market competition and bring business risks to the enterprises. The overall market capacity turns declined in
1st
half of the 2015, and show no signs of recovery, varybrand’s competition is more vehemence.
3. Labor shortage in workman, soaring labor cost
The demographic advantage of China is gradually weakening, the shortage of labor resources becomes more and more severe, and the insufficient front-line operatives has brought great challenges to the labor-intensive enterprises like the home appliance industry, increased the difficulty of production organization, increased the manufacturing costs, and reduced the Company's profit margins. The labor resources are becoming a major bottleneck to restrict the
development of the industry.
Faced with the above risks, on the one hand, the Company will improve the risk awareness,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 overall arrange the products, technologies, corresponding the upgrade of market competition and markets in advance, transform the products to be high-end and intelligent, adhere to two product strategies - intelligence and frequency conversion, enrich the product line, and create a comprehensive white enterprise; promote the technological innovation, strengthen the research and development to intelligence, frequency conversion, air-cooling and copious cooling technologies; attach importance to the development of overseas markets which have great potential for the future development, and actively explore the construction of own brand in overseas markets; improve the human resource planning. Matching the labor resources in order to respond the soaring labor costs. On the other hand, the company will carry out the management principle of "product leader, sales transformation, management efficiency" under the leadership of the Board and the guidelines of "Meiling Dream", take globalization as a platform, take intelligence and frequency transformation as a breakthrough, constantly improve the management and technological innovation, and strengthen the cooperation with others to achieve the healthy and sustainable development of the Company.
(III) Operating countermeasures for the second half year
1. Operating policy
For the later half year, the Company will continue to implement the operating policy relating to―leading products, sales transformation and managementenhancement‖. In order to respond effectively to the deteriorating macro economy and industrial conditions, the Company will focus on maintaining targets and steady growth. Besides, its comprehensive competitiveness will be strengthened through enhancement in human, substance and money efficiency. Resources are also allocated to promote upgrade in its capability of technical innovation and management innovation, so as to realize sustainable development.
2. Market strategy
As for domestic market, the policies of―intensified promotion, accelerated transformation, highlighted terminal and emphasizedtraining‖ continued. In addition to strengthening channel coordination and consolidation of traditional channel, the Company also turned to E-business, thus to improve its overall operation capacity. As for overseas market, progress in products, customers and operation was made as scheduled, seeking for more development in international market. 3. Product strategy
In respect of research and development, the Company speeded up research and development for new generation of smart products and continued implementing the strategy of―high-end differentiation, middle-end series and low-endgeneration‖. Terminal decoration project continued,
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 display of smart and frequency conversion products was improved and promotion sales of smart and frequency conversion products were intensified, in order to raise sales proportion of these products. 4. Staff construction
Talents base with potential leaders and competition& elimination system in respect of overseas talents were all constructed, with technical experts elected into such base to establish a high-efficient team. For the later half year, the Company will conduct the routine leader campaign again as hold once a year, aiming to find and elect talents through leader campaign, thus to further emphasize its human resource system featuring with―leave those who can and eliminate those who cannot‖ to inspire their best potentials.
V. Investment analysis
(I). Situation of equity investment outside
1. Situation of investment outside
√ Applicable□Not applicable
||||||
|-|-|-|-|-|
|Investment outside|||||
|||Investment in the same period of|||
|Investment in the reporting (RMB)|||Changes||
|||last year’s (RMB)|||
|40,000,000||40,950,000|-2.32%||
|Invested company|||||
|||||Equity|
|||||proportion in|
|Name|Main business|||invested company|
|||||for Listed|
|||||company|
||Computer software and hardware development, computer networking||||
||sales and undertakes, import and export of cargo and technology||||
||(projects are prohibited by law and regulations excluded, restrained items||||
||should run with the permit), advertisement design and production,||||
|Sichuan Zhiyijia|design, production and sales of pattern, development and sales of||||
|Network|household products, use the internet to sell general merchandise, cloth,||||
|||||30%|
|Technology Co.,|leatherwear, shoes and hats, washing products, cosmetics, photographic||||
|Ltd.|equipment, toys, stereo system and equipment, household appliances,||||
||electronics, communication equipment and device, instrument, lamps,||||
||electro-mechanical equipments and accessories, machinery equipment||||
||and accessories, prepackaged food, stationery, sports goods, hotel||||
||facilities, travel and cultural goods, gold and silver, jewelry, value-added||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
||telecom service (entrusted operation), chemical materials and products||
||(hazardous chemical substance excluded), solar equipment and class-I||
||medical devices.||
||Development, manufacture, sales, installation and after-sales services of||
||the control system for indoor air environment, AHU, air-conditioner,||
||negative ion products, air purifier and spare part; sales of the house||
|Sichuan Tianyou|||
||appliance, water heater of air, solar photovoltaic equipment, mechanical||
|Guigu Technology||25%|
||and electrical equipment, electronics and refrigeration plant, SI and||
|Co., Ltd.|||
||installation and after-sale services; equipment leasing and spare part laser||
||job shop; sales of mental materials, development, sales and software||
||services||

2. Holding equity of financial enterprise
√ Applicable□Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Proportio||Proportio|||||
|||||||||Gains/loss|||
||||Shares held|n of|Shares held|n of|||||
|||Initial|||||Book value at|es in|||
||||at|shares|at|shares|||Accountin|Resource|
|Name|Type|investment|||||period-end|report|||
||||period-begin|held at|period-end|held at|||g items|s|
|||capital (RMB)|||||(RMB)|period|||
||||(Share)|period-b|(Share)|period-e|||||
|||||||||(RMB)|||
|||||egin||nd|||||
||||||||||Available||
|||||||||||Initial|
|Huishang Bank|Commer||||||||for sale||
|||5,000,000.00|10,737,573|0.0972%|10,737,573|0.0972%|5,000,000.00|0||investme|
|Co., Ltd.|cial bank||||||||financial||
|||||||||||nt|
||||||||||assets||
|Total||5,000,000.00|10,737,573|--|10,737,573|--|5,000,000.00|0|--|--|

 3. Security investment
□ Applicable√ Not applicable
No security investment in Period.
Explanation on equity of other listed company held
□ Applicable√ Not applicable
The Company had no equity of other listed company held in Period.
4. Explanation on equity of other listed company held
□ Applicable√ Not applicable
The Company had no equity of other listed company held in Period.
(II) Trust financing, derivative investment and trust loans
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 1. Trust financing
√ Applicable□Not applicable
In 10 thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Amount|||
||||||||||of|||
||||||||||reserve|||
|||||||||Principa||||
||||||||||for|||
|||Whether||Trust|||Criteria|l|||Actual|
||Related||||||||devaluat|Anticipa||
|||related||financi|||for|actually|||gains/lo|
|Name|relations||Type||Start date|End date|||ion of|ted||
|||trade or||ng|||fixing|collecte|||sses in|
||hip||||||||withdra|income||
|||not||amount|||reward|d in the|||period|
||||||||||wing|||
|||||||||Period||||
||||||||||(if|||
||||||||||applicab|||
||||||||||le)|||
|Anhui|||Floatin|||||||||
|Province|||g|||||||||
||||||||5.4%|||||
|branch of|||procee|||2015-6-2||||||
||N/A|No||10,000|2015-5-22||annual|10,000|0|51.78|51.78|
|Bank of|||ds|||6||||||
||||||||yield|||||
|Communicati|||produ|||||||||
|ons|||cts|||||||||
|Total||||10,000|--|--|--|10,000|0|51.78|51.78|
|Capital resource||||Self-owned capital||||||||
|Principal uncollected for overdue and||||||||||||
|||||N/A||||||||
|accumulated earnings||||||||||||
|Lawsuit involved (if applicable)||||Not applicable||||||||
|Disclosure date for approval from the||||||||||||
|||||2015-3-26||||||||
|Board for trust financing (if applicable)||||||||||||
|Disclosure date for approval from board||||||||||||
|of shareholders for trust financing (if||||2015-4-18||||||||
|applicable)||||||||||||

2. Derivative investment
√ Applicable□ Not applicable
In 10 thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Relat|Whet||||||Amoun||Ratio of||
||||||||||||Actual|
||ed|her|||||Investment|t of|Investment|investmen||
|||||Initial|||||||gains/lo|
|Operator|relati|relate|Type||||amount at|reserve|amount at|t amount||
|||||investment|S tart date|End date|||||sses in|
||onshi|d|||||period-begin|for|period-end|at||
||||||||||||period|
||p|trade||||||devalua||period-en||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||or not|||||||tion of||d in net||
||||||||||withdra||assets of||
||||||||||wing||the||
||||||||||(if||Company||
||||||||||applica||at||
||||||||||ble)||period-en||
||||||||||||d||
||||Forward||||||||||
|Financial|||foreign||||||||||
||N/A|No|||25,584.61|2014-7-1|2016-12-31|13,319.93|0|25,584.61|7.25%|365.33|
|institution|||exchange||||||||||
||||contract||||||||||
|Total|||||25,584.61|--|--|13,319.93|0|25,584.61|7.25%|365.33|
|Capital resource(if applicable)||||Self-owned capital|||||||||
|Lawsuit involved (if|||||||||||||
|||||Not applicable|||||||||
|applicable)|||||||||||||
|Disclosure date for approval|||||||||||||
|from the Board for investment||||2014-4-19 and 2015-3-26|||||||||
|of derivatives (if applicable)|||||||||||||
|Disclosure date for approval|||||||||||||
|from board of shareholders for|||||||||||||
|||||2014-6-6 and 2015-4-18|||||||||
|investment of derivatives (if|||||||||||||
|applicable)|||||||||||||
|||||Risk analysis:|||||||||
|||||1. Market risk: domestic and international economic situation changes may lead to exchange rate|||||||||
|||||fluctuations, forward foreign exchange transactions are under certain market risk. Forward|||||||||
|||||foreign exchange business is aiming to reducing impact on corporate profits by foreign exchange|||||||||
|||||settlement and sale prices, exchange rate fluctuations. The Company will follow up the exchange|||||||||
|||||fluctuation, on the basis of target rate determined from the business, relying on the research of|||||||||
|||||the foreign currency exchange rates, combined with prediction of consignments, and burdening|||||||||
|Risk analysis and controlling|||||||||||||
|||||ability to price variations due to exchange rate fluctuations, then determine the plan of forward|||||||||
|measures for derivatives|||||||||||||
|||||foreign exchange contracts, and make dynamic management to the business, to ensure|||||||||
|holdings in the Period|||||||||||||
|||||reasonable profit level.|||||||||
|(including but not limited to|||||||||||||
|||||2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the|||||||||
|market risk, liquidity risk,|||||||||||||
|||||future import and export business, to meet the requirements of the trade authenticity. In addition,|||||||||
|credit risks, operation risk and|||||||||||||
|||||forward foreign exchange transactions are processed with bank credit, will not affect liquidity of|||||||||
|law risks etc.)|||||||||||||
|||||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|||||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||
|-|-|
||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|The Company determines fair value in accordance with the Chapter VII ―Determination of Fair|
|have changes in market price|Value‖ carried in the Accounting Standards for Business Enterprises No.22 - Recognition and|
|or fair value in the Period, as|Measurement of Financial Instruments. Fair-value is basically obtained according to prices|
|for analysis of the fair value of|offered by bank and other pricing services. While fair-value of derivatives is mainly obtained|
|derivatives, disclosed specific|according to the balance between prices given by outstanding contracts and forward prices given|
|applied methods and|by contracts signed during the reporting period with bank. The differences are identified as|
|correlation assumption and|trading financial assets and liabilities. During the reporting period, forward foreign exchange|
|parameter setting|contracts and losses of the Company is RMB 3.6533 million|
|Specific principle of the||
|accounting policy and||
|calculation for derivatives in||
||Not applicable|
|the Period compared 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|
|Special opinion on derivative||
||and board meeting. The Company was able to lock revenue and costs against its actual business,|
|investment and risk control by||
||thus to avoid and prevent from exchange risks and maintain steady operation. The foreign|
|independent directors||
||exchange forward deals conducted by the Company were closely related to its normal operation|
||needs, which was 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.|

3. Trust loans
□ Applicable√ Not applicable
No trust loans in Period.
(III) Actual usage of raised capitals
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 1. General usage of raised capital
√ Applicable□Not applicable
In 10 thousand Yuan
|||
|-|-|
|Total raised capitals|117,795.43|
|Total raised capital invested in reporting period|230.88|
|Total accumulative raised capital invested|87,941.96|
|Total raised fund for changes its usage area in||
||0|
|report period||
|Total accumulative raised fund for changes its||
||0|
|usage area||
|Proportion of total accumulative raised fund for||
||0.00%|
|changes its usage area||
|Explanation on general usage of raised capital||
|In 2010, the Company implemented private placement of A-share, fund-raising amounting as 1199.99982||
|million Yuan in total, net amount of fund-raising was 1177.95432 million Yuan after issuance cost 22.0455||
|million Yuan (underwriting and sponsor fee 20.5 million Yuan included) deducted.||
|In 2013, the three construction projects with fund-raising investment have completed and reaching the design||
|capacity, that is ―Athena Luxury refrigerator production base‖, ―Freezer expansion project‖ and ―Expansion||
|project of environmental and energy-saving refrigerators‖, meanwhile, ―working capital supplementation‖||
|project implemented and recently, the Company has no other projects that suitable for investment by||
|fund-raising. According to the operation requirement of the Company, approved by the board of directors, board||
|of supervisors and general meeting of shareholders , balance of raising funds 284.440959 million Yuan||
|(including interest 34.832977 million Yuan) up to 30 September 2013 and later interest are supplying the||
|working capital of the Company permanently. The Company actually withdrawal 291.354985 million Yuan for||
|working capital supplementation permanently up to 30 June 2015.||
|Up to the 30th of June 2015, the Company actually used 879.419564 million Yuan accumulatively in||
|fund-raising, balance of fund-raising accounting as 50.887720 million Yuan (including 1,856,122 Yuan undrawn||
|used for working capital supplementation, and totally 49,031,598 Yuan ready for contract payment and quality||
|assurance). More details are:||
|Athena Luxury refrigerator production base project: total investment amounting to 528,508,471 Yuan in total||
|after savings deducted. Up to 30th of June 2015, the project accumulatively invested 503,396,607 Yuan, balance||
|of fund-raising was 25,118,127 Yuan, including 25,111,864 Yuan ready for contract payment and quality||
|assurance and 6,263 Yuan undrawn used for working capital supplementation permanently.||
|Capacity expansion project for freezer: the project owns total investment of 251,883,547 Yuan after savings||
|deducted. Up to 30 June 2015, the project have accumulative investment of 227,963,813 Yuan, balance at||
|fund-raising account was 25,769,593 Yuan, including amount ready for payment and quality assurance||
|23,919,734 Yuan and 1,849,859 Yuan without extract used for supply current capital permanently.||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 2. Commitments of raised capital
□ Applicable√ Not applicable
3. Changes of raise capital projects
□ Applicable√ Not applicable
No change of raise capital projects in Period.
4. Project with fund raised
□ Applicable√ Not applicable
(IV) Main subsidiary of the Company and stock jointly company analysis
√ Applicable□Not applicable
1. Subsidiary and stock jointly enterprise of the Company
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Register||||||
|||||ed||||||
||||Main products or|capital|||Operation revenue|Operation profit||
|Name|Type|Industry|||Total assets (RMB)|Net assets (RMB)|||Net profit (RMB)|
||||service|(10|||(RMB)|(RMB)||
|||||thousan||||||
|||||d Yuan)||||||
|Zhongke Meiling|||Product and sale of|||||||
|Low-temperature|Subsidi|Manufac|deep-freeze|||||||
|||||6,000|132,273,754.26|96,544,688.05|42,750,432.40|2,460,549.93|2,433,399.68|
|Technology Co.,|ary|turing|refrigerator and|||||||
|Ltd.|||icebox|||||||
|Jiangxi Meiling|||Sales and|||||||
||Subsidi|Manufac||||||||
|Refrigeration|||production of|5,000|187,345,608.87|86,770,112.43|199,516,676.80|-424,997.02|836,342.08|
||ary|turing||||||||
|Co., Ltd.|||refrigerator|||||||
|Mianyang|||Sales and|||||||
|Meiling|Subsidi|Manufac|production of|||||||
|||||10,000|270,343,064.35|98,458,324.75|130,609,659.99|410,137.29|362,409.58|
|Refrigeration|ary|turing|refrigerator|||||||
|Co., Ltd.||||||||||
|Sichuan|||Sales and|||||||
|Changchun|Subsidi|Manufac|production of|||||||
|||||20,000|2,132,336,867.64|597,959,950.75|1,882,758,269.22|24,929,242.85|26,114,016.49|
|Air-conditioner|ary|turing|air-conditioner|||||||
|Co., Ltd.||||||||||
|Zhongshan|||Sales and|||||||
||Subsidi|Manufac||||||||
|Changhong|||production of|12,000|875,751,482.10|161,707,969.54|726,792,234.85|8,486,428.75|9,336,506.38|
||ary|turing||||||||
|Electric Co., LTD|||air-conditioner|||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Sales of|||||||
|Hefei Meiling|||refrigeration|||||||
|Electronic|||appliance,|||||||
||Subsidi|Manufac||||||||
|Appliance|||air-conditioner,|5,500|834,600,891.35|-227,157,645.94|1,955,979,288.71|10,567,584.59|9,048,426.24|
||ary|turing||||||||
|Marketing Co.,|||washing machine|||||||
|Ltd.|||and general|||||||
||||merchandise|||||||
||||Manufacture of|||||||
||||washing machine,|||||||
||||plastic products,|||||||
||||fine welded pipe,|||||||
||||cooling parts,|||||||
||||package products|||||||
||||and decoration;|||||||
|Hefei Meiling||||||||||
||Subsidi|Manufac|sales of|||||||
|Group Holdings||||8,000|521,959,595.29|61,554,818.82|194,157,868.56|6,263,461.63|6,318,834.52|
||ary|turing|self-production|||||||
|Limited||||||||||
||||products and raw|||||||
||||materials,|||||||
||||machinery|||||||
||||equipment,|||||||
||||instruments and|||||||
||||general|||||||
||||merchandise|||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Air-conditioner,|||||||
||||washing machine,|||||||
|Mianyang|||refrigerator,|||||||
|||Software||||||||
|Meiling Software|Subsidi||freezer etc.|||||||
|||R&D||500|65,053,225.52|58,916,563.06|36,240,483.22|31,051,376.55|35,085,072.86|
|Technology Co.,|ary||household|||||||
|||sales||||||||
|Ltd.|||appliances control,|||||||
||||intelligent software|||||||
||||R&D sales|||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 (V) Major project with non raised fund
□ Applicable√ Not applicable
The company had no major projects invested by non-raised fund in the reporting period. VI. Prediction of business performance from January– September 2015
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
VII. Explanation on “Qualified Opinion” from CPA by the Board and Supervisory Committee
□ Applicable√ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of lastyear’s
□ Applicable√ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital reserve in particular
√Applicable □Not applicable
On 24 March 2015 and 17 April 2015, the―Profit Distribution Plan for year of2014‖ was deliberated and approved by
6th
meeting of
8th
session of the Board,
4th
meeting of
8th
session of supervisory committee and annualshareholders’ general meeting of 2014. Independent directors also express independent acceptance opinion for the proposal. The Company agreed to 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 2014, took shareholders equity and long-term development requirement of the Company into consideration overall. Cash dividend of 45,824,352.30 Yuan (tax included, cash dividend representing23.19% of the distributable profit for that year) was distributed in total. Total share capital of the Company remain unchanged after distribution, the remaining retained profit 721,612,718.56 Yuan accumulated will carry forward for distribution in later years. The Company disclosed the profit distribution plan for year of 2014 on 3 June 2015 and implemented the above said plans.
Found more details in Notice: No.2015-003, No.2015-004, No.2015-015 and No.2015-021 published respectively dated 26 March 2015, 18 April 2015 and 3 June 2015 on appointed website.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||
|-|-|
|Special explanation on cash dividend policy||
|Satisfy regulations of General Meeting or requirement of Article of||
||Y|
|Association (Y/N):||
|Well-defined and clearly dividend standards and proportion (Y/N):|Y|
|Completed relevant decision-making process and mechanism||
||Y|
|(Y/N):||
|Independent directors perform duties completely and play a proper||
||Y|
|role (Y/N):||
|Minority shareholders have opportunity to express opinions and||
||Y|
|demands totally and their legal rights are fully protected (Y/N):||
|Condition and procedures are compliance and transparent while the||
||Y|
|cash bonus policy adjusted or changed (Y/N):||

X. Profit distribution plan and capitalizing of common reserve plan for the Period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the semi-annual year.
XI. Registration of research, communication and interview in reporting period
√Applicable □Not applicable
|||||||
|-|-|-|-|-|-|
||||||Main information|
|Date|Place|Way|Type|objects|discussed and|
||||||material provided|
||||||Operation of the|
||Conference room|Field|Institu|Essences Securities, Zhong||
|2015-1-20|||||Company, no|
||of the Company|research|te|Ou Asset Management||
||||||materials provided|
||||||Operation of the|
||Conference room|Field|Institu|||
|2015-1-30||||Founder Securities|Company, no|
||of the Company|research|te|||
||||||materials provided|
||||||Operation of the|
||Conference room|Field|Institu|||
|2015-2-5||||Great Wall Securities|Company, no|
||of the Company|research|te|||
||||||materials provided|
||||||Operation of the|
||Conference room|Field|Institu|||
|2015-2-11||||Sinolink Securities|Company, no|
||of the Company|research|te|||
||||||materials provided|
||||||Operation of the|
||Conference room|Field|Institu|||
|2015-4-2||||Minsheng Securities|Company, no|
||of the Company|research|te|||
||||||materials provided|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|||||UBS Securities, Broad|Operation of the|
||Conference room|Field|Institu|||
|2015-5-6||||Peak Investment Advisers|Company, no|
||of the Company|research|te|||
|||||Pte Ltd|materials provided|
|||||CITIC Securities, CITIC||
|||||Securities, Sun Life||
|||||Everbright Life, Haitong||
|||||Securities, Hong Fund|Operation of the|
||Conference room|Field|Institu|||
|2015-5-7||||Management Co., Ltd.,|Company, no|
||of the Company|research|te|||
|||||Fudun Investment and|materials provided|
|||||Consulting Co., Ltd. Bank||
|||||of China Investment||
|||||Management||
||||||Operation of the|
||Conference room|Field|Institu|Essences Securities, Huaan||
|2015-5-8|||||Company, no|
||of the Company|research|te|Securities||
||||||materials provided|
||||||Operation of the|
||Conference room|Field|Institu|Huatai Securities, Industrial||
|2015-5-13|||||Company, no|
||of the Company|research|te|Asset Management||
||||||materials provided|
|||||Founder Securities,|Operation of the|
||Conference room|Field|Institu|||
|2015-5-14||||Huangshang Fund|Company, no|
||of the Company|research|te|||
|||||Management, Mirae Asset|materials provided|
||||||Operation of the|
||Conference room|Field|Institu|||
|2015-5-19||||GF Securities|Company, no|
||of the Company|research|te|||
||||||materials provided|
||||||Operation of the|
||Conference room|Field|Institu|||
|2015-6-5||||Bohai Securities|Company, no|
||of the Company|research|te|||
||||||materials provided|
||||||Operation of the|
||Conference room|Field|Institu|Kingsmead Asset||
|2015-7-2|||||Company, no|
||of the Company|research|te|Management Pte.Ltd.||
||||||materials provided|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section V. Important Events
I. Corporate governance
Actual corporate governance of the Company shows no difference with the Company Law and requirement of relevant regulations from CSRC.
II. Lawsuits
（I）Material lawsuits and arbitration
□ Applicable√ Not applicable
No material lawsuits and arbitration in the reporting
(II) Other lawsuits
The Company and Meiling Group discharge the Trademark Use Right License Agreement signed with Hefei Meiling Environmental Equipment Technology Co., Ltd., Hefei Meiling Cleaning Equipment Technology Co., Ltd., Hefei Meiling Electrical Appliances Co., Ltd., Hefei Meiling Cabinets and Electrical Co., Ltd., Hefei Meiling Auto Industry Co., Ltd., Hefei Meiling Security and Protection Products Co., Ltd. and Hefei Meiling Information and Communication Technology Co., Ltd. respectively by litigation and arbitration, no the above mentioned enterprise have the right to use a trademark of―Meiling‖. At the same time, the Company corresponding the action of―Meiling‖ usage by the above mentioned enterprise who violating laws and rules, by means of industry and commerce complaints, civil action and report to the police. More details are found in the 1Q report of 2014, semi-annual report of 2014, clarification announcement on failure to pass such qualityinspection-―Meiling‖ Smoke Exhauster, and annual report 2014 published on 19 April 2014, 12 August, and 16 March 2015, 26 March and 18 April respectively.
III. Questions by media
√ Applicable□Not applicable
||||
|-|-|-|
|Questions by media|Date of disclosure|Index of disclosure|
|As reported on 15 March CCTV Banquet, kitchen ventilator|||
|products produced by Zhongshan Branch of Hefei Meiling Small|||
|Home Appliances Co., Ltd. didn’t pass the national quality||Juchao Website:|
|random inspection. The Company paid high attention to the||http://www.cninfo.com.cn|
||2015-3-16||
|aforesaid report and made verification promptly. Later, it|||
|||No.: 2015-002|
|published the clarification announcement on failure to pass such|||
|quality inspection via the designated information disclosure|||
|media, the major contents of which included: Hefei Meiling|||
|Small Home Appliances Co., Ltd. and its Zhongshan Branch are|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||
|-|
|not our subsidiaries without any relation involving assets, equity|
|interests and operation management. The Company has already|
|required Meiling Group to discharge the Trademark Use Right|
|License Agreement signed with Hefei Meiling Small Home|
|Appliances Co., Ltd immediately, required Small Home|
|Appliances Company to seal up all the inventories with quality|
|defects and returned back for rectification, and arranged return,|
|exchange and free maintenance for those products which were|
|sold out with quality defects.|

IV. Bankruptcy reorganization
□Applicable√ Not applicable
No bankruptcy reorganization in Period.
V. Assets transaction
(I) Acquisition of assets
□Applicable√ Not applicable
No acquisition of assets in Period.
(II) Assets sold
□Applicable√ Not applicable
No assets sold in Period.
(III) Enterprise combination
□Applicable√ Not applicable
No enterprise combination in Period.
VI. Implementation and its influence of equity incentive plan
□Applicable√ Not applicable
No implementation of equity incentive plan in Period.
VII. Material related transaction
(I) Related transaction with daily operation concerned
√ Applicable□Not applicable
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||||||Propo||Trading||||Cleari|||||||
||||||||||||||Related||Related||||||Whether|||||||||
||||||||Type||||||||||rtion||limit||||ng||Availabl|||||
||Se||||||||||||transactio||transaction||||||over the|||||||||
||||Relate||Relations||of||Content of||Pricing||n price (in||amount||in||approve||||form||e similar||Date of|||
||ria||||||related||related||principl||||||similar||||approved||for||||||Index of disclosure|
||||d party||hip||||||||10||(in 10||||d (in 10||||||market||disclosure|||
||l||||||transa||transaction||e||||||transa||||limited or||related|||||||
||||||||ction||||||thousand||thousand||ctions||thousan||||transa||price|||||
||||||||||||||Yuan)||Yuan)||||||not (Y/N)|||||||||
||||||||||||||||||(%)||d Yuan)||||ction|||||||
|1||SichuanChanghongElectricCo.,LTD||Controllingshareholder andultimatecontroller||Commoditypurchased||Electricmelting,resistors,integratedcircuitaccessory,colormasterbatch||Marketing price||7,272.32||7,272.32||0.02||100,000||No||Spotexchange,Bankacceptance||-||2015-3-26,2015-4-18||JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015||
|2||HuayiCompressorCo.,Ltd.||Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller||Commoditypurchased||Compressoretc.||Marketing price||28,354.30||28,354.30||6.59%||80,000||No||settlement byacceptance||-||2015-3-26,2015-4-18||JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3|SichuanChanghongMoldPlasticTech.Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Plasticproductsetc.|Marketing price|17,951.28|17,951.28|4.17%|100,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|4|SichuanChanghongJijiaFineCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Door shell,baseboardetc.|Marketing price|10,254.28|10,254.28|2.38%|100,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|5|SichuanChanghongPackagePrintingCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollin|Commoditypurchased|Packingcase,printedmatter etc.|Marketing price|2,634.77|2,634.77|0.61%|100,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||gshareholder andultimatecontroller|||||||||||||
|6|SichuanChanghongPrecisionElectronicsTech.Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|PCB etc.|Marketing price|346.07|346.07|0.08%|100,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|7|SichuanChanghongNewEnergyTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Battery|Marketing price|37.89|37.89|0.01%|100,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|8|SichuanLiyuanElectronic Co.,Ltd. of081ElectronicGroup|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Transformerand filter|Marketing price|163.70|163.70|0.04%|15,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|9|MianyangHongrunElectronic Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Conductorline etc.|Marketing price|471.38|471.38|0.11%|100,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|10|GuangdongChanghongElectronicsCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollin|Commoditypurchased|Foam piecesetc.|Marketing price|305.37|305.37|0.07%|100,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||gshareholder andultimatecontroller|||||||||||||
|11|ZhongshanGuanghongMoldTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Plastic parts|Marketing price|99.22|99.22|0.02%|100,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|12|SichuanHongyuMetalManufactureCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Radiator|Marketing price|34.77|34.77|0.01%|100,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|13|GuangdongChanghongDigitalTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Hand piece|Marketing price|49.27|49.27|0.01%|100,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|14|GuangdongChanghongElectricTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Rice cookeretc.|Marketing price|97.94|97.94|0.02%|100,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|15|SichuanChanghongElectronicDevices|Otherenterprisecontrolunder thesamecontrollin|Commoditypurchased|Printedboard,remotecontrol andtransformer|Marketing price|2,111.91|2,111.91|0.49%|100,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Co.,Ltd.|gshareholder andultimatecontroller|||||||||||||
|16|SichuanChanghongXinruiTechnologyCo.,Ltd|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Airconditioningcomponents|Marketing price|4,355.12|4,355.12|1.01%|15,000|No|Spotexchange ,Commercialacceptancesettlement|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|17|SichuanHongweiTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Commoditypurchased|Air-conditionercomponents|Marketing price|17.75|17.75|0.00%|100,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|18|SichuanChanghongElectricCo.,LTD|Controllingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|54,224.47|54,224.47|8.44%|350,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|19|SichuanChanghongJijiaFineCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Color plate|Marketing price|1,697.64|1,697.64|0.26%|350,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|20|SichuanChanghongMoldPlasticTech.Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner, colormasterbatch|Marketing price|5,206.48|5,206.48|0.81%|350,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|21|Mianyang LJYCommerce-TradingChainCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner,refrigerator,freezer andwashingmachine|Marketing price|104.48|104.48|0.02%|350,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|22|HongKong(Changhong)TradingCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Refrigerator,Air-conditioner|Marketing price|27,291.35|27,291.35|4.25%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|23|SichuanChanghongXinruiTechnology|Otherenterprisecontrolunder thesamecontrollin|Salesofgoods|Commission processingmaterial|Marketing price|2,216.58|2,216.58|0.34%|10,000|No|Commercialacceptancesettlement|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Co.,Ltd|gshareholder andultimatecontroller|||||||||||||
|24|SichuanChanghongInternationalHotelCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Sales andreturns ofair-conditioner|Marketing price|-2.56|-2.56|0.00%|10,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|25|SichuanHongweiTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|2.44|2.44|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|26|LejiayiChainManagementCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Refrigerator, washingmachine|Marketing price|178.30|178.30|0.03%|350,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|27|ZhongshanGuanghongMoldTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner、Refrigerator|Marketing price|75.79|75.79|0.01%|350,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|28|SichuanChanghongDevicesTechnology|Otherenterprisecontrolunder thesamecontrollin|Salesofgoods|Air-conditioner|Marketing price|14.70|14.70|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Co.,Ltd.|gshareholder andultimatecontroller|||||||||||||
|29|GuangdongChanghongElectricTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Refrigerator, freezer|Marketing price|478.27|478.27|0.07%|350,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|30|SichuanChanghongPackagePrintingCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|21.16|21.16|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|31|SichuanChanghongPrecisionElectronicsTech.Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Watt-hourmeter|Marketing price|14.92|14.92|0.00%|350,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|32|SichuanChanghongMinshengLogistic Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|0.08|0.08|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|33|SichuanLiyuanElectronic Co.,Ltd. of081|Otherenterprisecontrolunder thesamecontrollin|Salesofgoods|Air-conditioner bracket|Marketing price|2.45|2.45|0.00%|10,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||ElectronicGroup|gshareholder andultimatecontroller|||||||||||||
|34|081ElectronicGroupCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Sales andreturns ofair-conditioner|Marketing price|-8.49|-8.49|0.00%|10,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|35|SichuanServiceExp.ApplianceServiceChainCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|286.92|286.92|0.04%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|36|SichuanChanghongGerunRenewableResources Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Wastematerials|Marketing price|445.82|445.82|0.07%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|37|HefeiChanghongIndustrial Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Packing box|Marketing price|209.32|209.32|0.03%|350,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|38|SichuanHuafeng Corp.Group|Otherenterprisecontrolunder thesamecontrollin|Salesofgoods|Air-conditioner|Marketing price|3.13|3.13|0.00%|10,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||gshareholder andultimatecontroller|||||||||||||
|39|ChanghongEuropeElectrics.r.o|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Refrigerator|Marketing price|92.42|92.42|0.01%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|40|SichuanChanghongElectronicDevicesCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|22.76|22.76|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|41|ChengduChanghongMinshengLogistic Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|4.20|4.20|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|42|GuangyuanHongchengIndustrial Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditionercomponents|Marketing price|0.03|0.03|0.00%|10,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|43|GuangyuanChanghongMoldTechno|Otherenterprisecontrolunder thesamecontrollin|Salesofgoods|Air-conditioner|Marketing price|2.99|2.99|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||logyCo.,Ltd.|gshareholder andultimatecontroller|||||||||||||
|44|SichuanZhiyijiaNetworkTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|27,806.61|27,806.61|4.33%|350,000|No|Commercialacceptancesettlement|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|45|ChengduChanghongProperty Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|1.38|1.38|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|46|AnhuiXinghaoPlasmaDisplayPanelsCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesofgoods|Air-conditioner|Marketing price|53.85|53.85|0.01%|10,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|47|SichuanChanghongJijiaFineCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Workshoprental,forklift,equipment|Marketing price|35.01|35.01|0.44%|3,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|48|SichuanChanghongMoldPlasticTech.|Otherenterprisecontrolunder thesamecontrollin|Rent totherelatedparty|Workshoprental,warehouserental|Marketing price|90.61|90.61|1.13%|3,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Co.,Ltd.|gshareholder andultimatecontroller|||||||||||||
|49|SichuanChanghongXinruiTechnologyCo.,Ltd|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Forklift|Marketing price|0.04|0.04|0.00%|10,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|50|BVCHOptronics(Sichuan) Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Freightelevatorrental|Marketing price|6.37|6.37|0.08%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|51|GuangdongChanghongElectronicsCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Part ofofficebuilding forrent, livingquarters IIrental|Marketing price|63.61|63.61|0.79%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|52|GuangdongChanghongElectricTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Meilingtrademarkrights|Marketing price|0|0|0|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|53|GuangdongChanghongElectricTechno|Otherenterprisecontrolunder thesamecontrollin|Rent totherelatedparty|Livingquarters IIrental|Marketing price|1.45|1.45|0.02%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||logyCo.,Ltd.|gshareholder andultimatecontroller|||||||||||||
|54|SichuanHongweiTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Livingquarters IIrental|Marketing price|0.34|0.34|0.00%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|55|SichuanChanghongMinshengLogistic Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Part ofofficebuilding forrent, livingquarters II|Marketing price|2.81|2.81|0.03%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|56|ZhongshanGuanghongMoldTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Livingquartersrental|Marketing price|0.58|0.58|0.01%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|57|SichuanChanghongPackagePrintingCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rent totherelatedparty|Warehouserental|Marketing price|0.23|0.23|0.00%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|58|SichuanChanghongElectricCo.,LTD|Controllingshareholder andultimatecontroller|Rentfromtherelatedparty|Buildingand officerental|Marketing price|393.26|393.26|4.89%|3,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|59|GuangdongChanghongElectricTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Rentfromtherelatedparty|Warehouserental|Marketing price|28.00|28|0.35%|3,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|60|SichuanChanghongElectronicsGroupCo.,Ltd.|Controllingshareholder andultimatecontroller|Rentfromtherelatedparty|Staffdormitoryrental|Marketing price|0.28|0.28|0.00%|15,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|61|SichuanChanghongElectricCo.,LTD|Controllingshareholder andultimatecontroller|Purchase offixedassets|Line bodytransformation, projectdevelopment|Marketing price|246.42|246.42|3.62%|5,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|62|SichuanHongxin|Otherenterprisecontrol|Purchase offixed|Softwaredevelopment, system|Marketing price|49.53|49.53|0.73%|5,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Software Co.,Ltd.|under thesamecontrollingshareholder andultimatecontroller|assets|optimization||||||||||-004,2015-006,2015-015|
|63|SichuanChanghongElectronicSystemCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Purchase offixedassets|Purchase ofvideomonitoringsystem|Marketing price|32.91|32.91|0.48%|5,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|64|SichuanLiyuanElectronic Co.,Ltd. of081ElectronicGroup|Otherenterprisecontrolunder thesamecontrollingshareholder and|Purchase offixedassets|Line bodytransformation|Marketing price|5.98|5.98|0.09%|15,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||ultimatecontroller|||||||||||||
|65|SichuanChanghongNewEnergyTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Salesoffixedassets|Disposal ofwaste assets|Marketing price|1.50|1.5|0.89%|5,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|66|SichuanChanghongElectricCo.,LTD|Controllingshareholder andultimatecontroller|Receivinglaborservices|Informationsystemservices,marketingfee,installationfee|Marketing price|442.23|442.23|0.56%|5,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|67|SichuanChanghongMinsheng|Otherenterprisecontrolunder thesame|Receivinglaborservices|Transportation, storage,loading andunloading|Marketing price|17,417.32|17,417.32|22.20%|50,000|No|Spotexchange,Bankaccepta|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Logistic Co.,Ltd.|controllingshareholder andultimatecontroller|||||||||nce||||
|68|SichuanServiceExp.ApplianceServiceChainCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Receivinglaborservices|After-salesmaintenance fee etc.|Marketing price|5,735.41|5,735.41|7.31%|20,000|No|Spotexchange,Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|69|SichuanHongweiTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Receivinglaborservices|Projectcooperationdevelopment|Marketing price|58.12|58.12|0.07%|5,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|70|GuangdongChanghongElectronicsCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Receivinglaborservices|Otherservice fees|Marketing price|2.64|2.64|0.00%|5,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|71|SichuanChanghongMoldPlasticTech.Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Receivinglaborservices|Processingfee|Marketing price|1.23|1.23|0.00%|5,000|No|Bankacceptance|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|72|SichuanChanghongJijiaFineCo.,|Otherenterprisecontrolunder thesamecontrollin|Receivinglaborservices|Equipmentrepair|Marketing price|0.43|0.43|0.00%|5,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Ltd.|gshareholder andultimatecontroller|||||||||||||
|73|SichuanJiahongIndustrial Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Receivinglaborservices|Advertisingfees|Marketing price|1.44|1.44|0.00%|15,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|74|Changhong(HongKong)TradingCompanyLimited|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Receivinglaborservices|Other fees|Marketing price|0.88|0.88|0.00%|5,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|75|GuangdongChanghongElectronicsCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Providing fuelandpower|Water andelectricityfee|Marketing price|31.52|31.52|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|76|SichuanChanghongMinshengLogistic Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Providing fuelandpower|Water andelectricityfee|Marketing price|1.20|1.2|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|77|SichuanServiceExp.ApplianceService|Otherenterprisecontrolunder thesamecontrollin|Providing fuelandpower|Water andelectricityfee|Marketing price|0.01|0.01|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||ChainCo.,Ltd.|gshareholder andultimatecontroller|||||||||||||
|78|ZhongshanGuanghongMoldTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Providing fuelandpower|Water andelectricityfee|Marketing price|0.08|0.08|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|79|SichuanChanghongJijiaFineCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Providing fuelandpower|Water,electricityand gas fee|Marketing price|21.18|21.18|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|80|SichuanChanghongMoldPlasticTech.Co.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Providing fuelandpower|Water,electricityand gas fee|Marketing price|325.59|325.59|0.05%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|81|SichuanHongweiTechnologyCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Providing fuelandpower|Water andelectricityfee|Marketing price|0.02|0.02|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|82|GuangdongChanghongElectricTechno|Otherenterprisecontrolunder thesamecontrollin|Providing fuelandpower|Water andelectricityfee|Marketing price|0.12|0.12|0.00%|350,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||logyCo.,Ltd.|gshareholder andultimatecontroller|||||||||||||
|83|SichuanChanghongElectricCo.,LTD|Controllingshareholder andultimatecontroller|Acceptingfuelandpower|Water,electricityand gas fee|Marketing price|532.15|532.15|0.12%|100,000|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|84|HuayiCompressorCo.,Ltd.|Otherenterprisecontrolunder thesamecontrollingshareholder andultimatecontroller|Acceptingfuelandpower|Compressedair,electricityfees|Marketing price|19.30|19.3|0.00%|100|No|Spotexchange|-|2015-3-26,2015-4-18|JuchaoWebsite(www.cninfo.com.cn)No.:2015-003,2015-004,2015-006,2015-015|
|Total|||||--|-|220,554.63|-|-|-|--|--|--|--|
|Detail of sales return with major amount involved|||||-||||||||||
|Report the actual implementation of the daily relatedtransactions which were projected about their totalamount by types during the reporting period(ifapplicable)|||||Being deliberated and approved by annual shareholders general meeting of 2014, the daily related transaction amount for year of 2015was estimated as:||||||||||
||||||1. It is estimated that the related transaction amount resulted by purchasing goods (including door shell and plastic products etc.) andaccepting fuel and power from Sichuan Changhong and its subsidiary by the Company for year of 2015 was RMB 1000 million at most||||||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||
|-|
|(tax-excluded), actually RMB 422.1637 million occurred in reporting period (tax-excluded).|
|2. It is estimated that the related transaction amount resulted by purchasing goods (including compressor purchased etc.) from HuayiCompressor and its subsidiary by the Company for year of 2015 was RMB 800 million at most (tax-excluded), actually RMB 283.5430million 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 partsand molds etc. from Sichuan Changhong and its subsidiary by the Company for year of 2015 was RMB 50 million at most (tax-excluded),actually RMB 3.3036 million occurred in reporting period (tax-excluded).|
|4. It is estimated that the related transaction amount resulted by purchasing goods from and providing fuel and power to SichuanChanghong and its subsidiary by the Company for year of 2015 was RMB 3500 million at most (tax-excluded), actually RMB 1185.6222million occurred in reporting period (tax-excluded).|
|5. It is estimated that the related transaction amount resulted by purchasing compressed air, leasing facilities of automatic fire protectionsystem etc. and accepting logistic service from Huayi Compressor and its subsidiary by the Company for year of 2015 was RMB 1 millionat most (tax-excluded), actually RMB 193,000 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 theCompany for year of 2015 was RMB 30 million at most (tax-excluded), actually RMB 6.2227 million occurred in reporting period(tax-excluded).|
|7. It is estimated that the related transaction amount from domestic finished goods logistic business outsourcing to Sichuan ChanghongMinsheng Logistic Co., Ltd. by the Company for year of 2015 was RMB 500 million at most (tax-excluded), actually RMB 174.1732million 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 2015 was RMB 200 million at most (tax-excluded), actually RMB 57.3541million occurred in reporting period (tax-excluded).|
|9. It is estimated that the related transaction amount resulted by accepting other service and labor service etc. or providing other serviceand labor service etc. to Sichuan Changhong and its subsidiary by the Company for year of 2015 was RMB 50 million at most(tax-excluded), actually RMB 5.0553 million 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 itssubsidiary by the Company for year of 2015 was RMB 100 million at most (tax-excluded), actually RMB 22.6503 million occurred in|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||
|-|-|
||reporting period.|
||11. It is estimated that the related transaction amount resulted by purchasing goods and receiving labor services etc. from SichuanChanghong Electronics Group and its subsidiary by the Company for year of 2015 was RMB 150 million at most (tax-excluded), actuallyRMB 45.2652 million occurred in reporting period.|
|Reasons for major differences between trading priceand market reference price|Not applicable|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 (II) Related transactions between the Company and Changhong Finance Company According to the three-year Financial Services Agreement that the Company signed with Changhong Finance Company, Changhong Finance Company should provide a range of financial services within its business scope in accordance with the requirements of the Company and its subsidiaries, including but not limited to deposit services, settlement services, loan services, bill discounting services, guarantees and other businesses approved by the China Banking Regulatory Commission. Related transactions between the Company and Changhong Finance Company in the half year of 2015 are as follows:
Up to
30th
of June 2015, the Company and its subsidiary have opened financial business as savings, note drawing and notes discounted with Changhong Finance Company. The Company and its subordinate company owns 986,230,115.61 Yuan savings in Changhong Finance Company, takes16.66% of the deposit taking balance in Changhong Finance Company without30% occupied, notes drawing was 698,739,353.69 Yuan and notes discounted as 687,109,110.90 Yuan. More details are: In RMB
|||||||
|-|-|-|-|-|-|
|Name|Balance atperiod-begin|Increase in theyear|Decrease in theyear|Balance atperiod-end|Interest andcommissioncharge receivedor paid|
|I. Savings inChanghong GroupFinance Company|1,040,209,426.68|4,753,894,052.61|4,807,873,363.68|986,230,115.61|14,865,885.04|
|II. Borrowingsfrom ChanghongGroup FinanceCompany|-|-|-|-|-|
|1.Short-term loans|-|-|-|-|-|
|2.Long-term loans|-|-|-|-|-|
|III. Other financialbusiness|-|-|-|-|-|
|1. notesdrawing|258,631,647.68|707,767,370.55|267,659,664.54|698,739,353.69|-|
|2. notesdiscounted|210,940,218.46|690,307,526.33|214,138,633.89|687,109,110.90|7,476,718.96|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|3. Other|-|-|-|-|-|

 (III) Related transaction arising from assets acquisition and sold
□ Applicable√ Not applicable
No Related transaction arising from assets acquisition and sold in reporting period.
(IV) 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.
(V) 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 SEMI-ANNUAL REPORT 2015
1. Claim receivable from related party:
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Whether has||Balance at||||Current||||Current||Balance at|
||||||||||||||Current|||||||||
||||||||||non-busines||period-beg||||recovery||||interest||period-end|
||Seria||||||||||||newly added||||Intere|||||
||||Related party||Relationship||Causes||s capital||in (10||||(10||||(10||(10|
||l||||||||||||(10 thousand||||st rate|||||
||||||||||occupying||thousand||||thousand||||thousan||thousand|
||||||||||||||Yuan)|||||||||
||||||||||or not||Yuan)||||Yuan)||||d Yuan)||Yuan)|
|1||Sichuan ChanghongElectric Co., LTD||Controlling shareholderand ultimate controller||Operationalcontact ofrelated credit||No||1,454.50||63,442.63||61,409.05||-||-||3,488.08||
|2||Sichuan ChanghongElectronics GroupCo., Ltd.||Controlling shareholderand ultimate controller||Operationalcontact ofrelated credit||No||227.51||-||-||-||-||227.51||
|3||Changhong (HongKong) TradingCompany Limited||Other enterprise controlunder the samecontrolling shareholderand ultimate controller||Operationalcontact ofrelated credit||No||11,097.59||27,291.35||20,446.52||-||-||17,942.43||
|4||Chengdu ChanghongElectronicTechnology Co.,Ltd.||Other enterprise controlunder the samecontrolling shareholderand ultimate controller||Operationalcontact ofrelated credit||No||530.90||-||347.38||-||-||183.52||
|5||Sichuan ChanghongMinsheng LogisticCo., Ltd.||Other enterprise controlunder the samecontrolling shareholderand ultimate controller||Operationalcontact ofrelated credit||No||4.20||9.22||4.21||-||-||9.21||
|6||GuangdongChanghong ElectricTechnology Co.,||Other enterprise controlunder the samecontrolling shareholder||Operationalcontact ofrelated credit||No||12.00||561.17||561.17||-||-||12.00||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Ltd.|and ultimate controller|||||||||
|7|Hefei ChanghongIndustrial Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|216.17|244.91|260.38|-|-|200.70|
|8|Huayi CompressorCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|106.34|-|79.96|-|-|26.38|
|9|081 ElectronicGroup Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|208.60|-9.94|-|-|-|198.66|
|10|Mianyang HongfaTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|49.80|-|-8.53|-|-|58.33|
|11|Sichuan ServiceExp. ApplianceService Chain Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|37.76|335.70|253.47|-|-|119.99|
|12|Sichuan ChanghongDevices TechnologyCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|6.49|43.83|5.18|-|-|45.14|
|13|Sichuan ChanghongGerun RenewableResources Co., Ltd.|Other enterprise controlunder the samecontrolling shareholder|Operationalcontact ofrelated credit|No|0.19|521.61|521.80|-|-|0.00|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||and ultimate controller|||||||||
|14|Sichuan ChanghongInternational HotelCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|405.00|-3.00|68.00|-|-|334.00|
|15|Sichuan ChanghongJijia Fine Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|29.72|2,047.60|1,432.25|-|-|645.07|
|16|Sichuan ChanghongPrecision ElectronicsTech. Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|6.10|17.46|-|-|-|23.56|
|17|Sichuan ChanghongMold Plastic Tech.Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|37.93|6,569.57|6,588.43|-|-|19.07|
|18|Sichuan ChanghongXinrui TechnologyCo., Ltd|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|0.21|2,594.07|2,351.79|-|-|242.48|
|19|Yibing HongxingElectronics Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|105.80|-|-|-|-|105.80|
|20|Mianyang LejiayiTrading Chain Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholder|Operationalcontact ofrelated credit|No|-|122.25|122.25|-|-|-|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||and ultimate controller|||||||||
|21|Lejiayi ChainManagement Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|208.61|208.61|-|-|-|
|22|GuangdongChanghongElectronics Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|100.49|100.49|-|-|-|
|23|Sichuan ChanghongPackage PrintingCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|25.00|24.76|-|-|0.24|
|24|GuangyuanHongchengIndustrial Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|0.03|0.03|-|-|-|
|25|Sichuan ChanghongNew EnergyTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|1.53|1.53|-|-|-|
|26|Sichuan HongweiTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|3.24|2.94|-|-|0.30|
|27|ZhongshanGuanghong MoldTechnology Co.,|Other enterprise controlunder the samecontrolling shareholder|Operationalcontact ofrelated credit|No|-|88.68|35.21|-|-|53.47|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Ltd.|and ultimate controller|||||||||
|28|ChanghongEuropeElectrics.r.o|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|92.42|22.49|-|-|69.93|
|29|Sichuan ZhiyijiaNetworkTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|32,533.74|26,989.77|-|-|5,543.96|
|30|Chengdu ChanghongProperty Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|1.62|1.54|-|-|0.08|
|31|BVCH Optronics(Sichuan) Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|7.46|7.46|-|-|-|
|32|Sichuan LiyuanElectronic Co., Ltd.of 081 ElectronicGroup|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|2.87|2.87|-|-|-|
|33|Anhui XinghaoPlasma DisplayPanels Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated credit|No|-|63.00|-|-|-|63.00|
|34|Sichuan HuafengCorp. Group|Other enterprise controlunder the samecontrolling shareholder|Operationalcontact ofrelated credit|No|-|3.66|3.66|-|-|-|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||and ultimate controller||||||||||
|-||-|-|-||-|14,536.81|136,920.77|121,844.64|-|-|29,612.93|
||Influence on business performance and financial status of||||||||||||
||||||——||||||||
||the Company from related liabilities||||||||||||

2. Debts payable to related party:
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Balance at||||||||Current||Balance at|
||||||||||||Current||Current|||||||
||||||||||period-begin||||||||interest||period-end|
||||||||||||newly added||recovery||Interest|||||
||Serial||Related party||Relationship||Causes||(10||||||||(10||(10|
||||||||||||(10 thousand||(10 thousand||rate|||||
||||||||||thousand||||||||thousand||thousand|
||||||||||||Yuan)||Yuan)|||||||
||||||||||Yuan)||||||||Yuan)||Yuan)|
|1||SichuanChanghongElectric Co., LTD||Controlling shareholderand ultimate controller||Operationalcontact ofrelated debt||2,956.40||10,282.66||9,313.19||-||-||3,925.87||
|2||SichuanChanghongElectronics GroupCo., Ltd.||Controlling shareholderand ultimate controller||Operationalcontact ofrelated debt||6.06||0.28||-0.13||-||-||6.47||
|3||GuangdongChanghongElectronics Co.,Ltd.||Other enterprise controlunder the samecontrolling shareholderand ultimate controller||Operationalcontact ofrelated debt||38.17||360.07||93.79||-||-||304.45||
|4||GuangdongChanghongElectricTechnology Co.,Ltd.||Other enterprise controlunder the samecontrolling shareholderand ultimate controller||Operationalcontact ofrelated debt||51.25||142.60||144.62||-||-||49.23||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|5|GuangyuanHongchengIndustrial Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|0.03|-|0.03|-|-|-|
|6|HuayiCompressor Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|10,943.32|33,197.11|32,261.89|-|-|11,878.54|
|7|Lejiayi ChainManagement Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|0.08|-|-0.28|-|-|0.36|
|8|Sichuan LiyuanElectronic Co.,Ltd. of 081Electronic Group|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|16.88|198.52|166.48|-|-|48.93|
|9|Mianyang HongfaTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|11.30|57.65|57.65|-|-|11.30|
|10|MianyangHongrunElectronic Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|95.86|551.52|462.96|-|-|184.42|
|11|Mianyang LejiayiTrading ChainCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|12.35|-|12.26|-|-|0.09|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|12|Sichuan CCODisplay DeviceCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|7.46|-|-|-|-|7.46|
|13|Sichuan HongweiTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|17.75|82.36|79.35|-|-|20.76|
|14|Sichuan HongyuMetalManufacture Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|13.27|40.68|9.60|-|-|44.35|
|15|Sichuan ServiceExp. ApplianceService ChainCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|1.10|6,712.81|5,355.82|-|-|1,358.09|
|16|SichuanChanghongPackage PrintingCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|1,101.66|3,082.68|2,491.38|-|-|1,692.96|
|17|SichuanChanghong PowerCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|3.64|-|-0.22|-|-|3.86|
|18|SichuanChanghongDevicesTechnology Co.,|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|892.89|2,470.94|1,445.09|-|-|1,918.73|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Ltd.|||||||||
|19|SichuanChanghong GerunRenewableResources Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|26.07|-|19.04|-|-|7.03|
|20|SichuanChanghongInternationalHotel Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|0.76|-|-0.20|-|-|0.96|
|21|SichuanChanghongInternationalTravel AgencyCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|5.68|-|-6.63|-|-|12.31|
|22|SichuanChanghong JijiaFine Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|5,378.32|11,998.01|5,480.46|-|-|11,895.87|
|23|SichuanChanghongPrecisionElectronics Tech.Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|142.29|404.91|231.50|-|-|315.70|
|24|SichuanChanghongMinshengLogistic Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|4,401.22|19,075.74|20,090.08|-|-|3,386.88|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|25|SichuanChanghong MoldPlastic Tech. Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|6,947.48|21,120.53|15,759.59|-|-|12,308.42|
|26|SichuanChanghongXinruiTechnology Co.,Ltd|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|1,371.02|5,095.49|6,223.15|-|-|243.36|
|27|SichuanChanghong NewEnergyTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|11.42|44.33|37.83|-|-|17.91|
|28|SichuanChanghongLightingTechnologyCo.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|3.01|-|0.62|-|-|2.39|
|29|ChanghongElectric(Australian) Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|0.55|-|-0.17|-|-|0.72|
|30|ZhongshanGuanghong MoldTechnology Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|0.24|-|0.24|-|-|-|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|31||Changhong (HongKong) TradingCompany Limited|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|-|1.04|-7.11|-|-|8.15|
|32||SichuanChanghongElectronic SystemCo., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|-|38.50|38.50|-|-|-|
|33||Sichuan JiahongIndustrial Co.,Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|-|1.68|1.68|-|-|-|
|34||Sichuan HongxinSoftware Co., Ltd.|Other enterprise controlunder the samecontrolling shareholderand ultimate controller|Operationalcontact ofrelated debt|-|52.50|52.50|-|-|-|
|-||-|-|-|34,457.53|115,012.60|99,814.57|-|-|49,655.56|
||Influence on business performance and financial status|||——|||||||
||of the Company from related debts||||||||||

For the above-mentioned statement, up to the Period-end, debts payable to related party from the Company and subordinate are amounting as 496.5556 million Yuan in total, the claim receivable from related party for the Company and subordinate amounting as 296.1293 million Yuan.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 (VI) Other related transactions
□ Applicable √ Not applicable
1. The company had no other related transactions in reporting period.
2. Other related transactions from the reporting period to the disclosed date
Disclosure information for related transaction temporary disclosed
||||
|-|-|-|
|Temporary notice|Dated disclosed|Website for disclosure|
|2015-032: Resolution notice of 9th meeting of 8thsession of the Board2015-033: Resolution notice of 7th meeting of 8thsession of the Board2015-035: Subscribe the Sichuan Hongyun New ITVenture Capital Fund and Related Transaction|||
|||Juchao Website:|
||2015-8-12||
|||http://www.cninfo.com.cn|

VIII. Non-business capital occupying by controlling shareholders and its related parties□ Applicable√ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period. IX. Significant contract and implementations
(I) Entrust, contract and leasing
1. Entrust
□ Applicable√ Not applicable
(1) Explanation on entrust
No entrust in Period.
(2) Gains/losses to the Company from projects that reached over10% in total profit of the Company in reporting period
□Applicable√ Not applicable
No gains or losses to the Company from projects that reached over10% in total profit of the Company in reporting period.
2. Contract
□ Applicable√ Not applicable
(1) Explanation on contract
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 No contract in Period.
(2) Gains/losses to the Company from projects that reached over10% in total profit of the Company in reporting period
□Applicable√ Not applicable
No gains or losses to the Company from projects that reached over10% in total profit of the Company in reporting period.
3. Leasing
(1) Explanation on leasing
√ Applicable□Not applicable
Operational leasing of the Company please found more details in―investment realestate‖,―fixedassets‖,―Lease of relatedparty‖ and―Rent of relatedparty‖ in Note of Financial Statement. (2) Gains/losses to the Company from projects that reached over10% in total profit of the Company in reporting period
□Applicable√ Not applicable
No gains or losses to the Company from projects that reached over10% in total profit of the Company in reporting period.
(II) Guarantee
√ Applicable□Not applicable
In reporting period, the Company has no guarantee for any legal person or nature person except wholly-owned and holding subsidiary, guarantee for wholly-owned and holding subsidiary all exercise for loans or provide other credit supporting operation needs with assurance guarantee offered. As of 30 June 2015, the Company offered credit granting to part of wholly-owned and holding subsidiary. Except for wholly-owned subsidiary Zhongshan Changhong, other subsidiary has no guarantee occurred actually. External guarantee and guarantee for subsidiary are as:
In 10 thousand Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)|||||||||||
||Related|||Actual date||||Complet|||
||Announce|||of happening|Actual|||e||Guarantee for|
|Name of the Company||Guarantee||||Guarantee|Guarantee||||
||ment|||(Date of|guarantee|||impleme||related party (Yes|
|guaranteed||limit||||type|term||||
||disclosure|||signing|limit|||ntation||or no)|
||date|||agreement)||||or not|||
|N/A|-|-||-|-|-|-|-||-|
|Total approving external guarantee in report|||||Total actual occurred external guarantee in||||||
||||-||||||-||
|period (A1)|||||report period (A2)||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Total approved external guarantee at the end|||||Total actual balance of external guarantee at|||||||
||||-|||||||-||
|of report period ( A3)|||||the end of report period (A4)|||||||
|Guarantee of the Company for the subsidiaries||||||||||||
||||||||||Complet|||
|Name of the|Related|||Actual date of||Actual|||e||Guarantee for|
|||Guarantee|||||Guarante|Guarantee||||
|Company|Announcement|||happening (Date of||guarantee|||impleme||related party|
|||limit|||||e type|term||||
|guaranteed|disclosure date|||signing agreement)||limit|||ntation||(Yes or no)|
||||||||||or not|||
||2015-3-26,|||||||||||
|Zhongke Meiling||||||||||||
||2015-4-18,||||||Joint|||||
|Cryogenic||||||||||||
||No.: 2015-003,|2,000.00||-||0.00|liability|-|-||-|
|Technology Co.,||||||||||||
||No.: 2015-007,||||||guaranty|||||
|Ltd.||||||||||||
||No.: 2015-015|||||||||||
||2013-3-22,|||||||||||
||2013-6-7,|||||||||||
||2013-10-18,|||||||||||
||||||||Joint|||||
||2013-11-8,|||||||||||
|||35,000.00||2013-12-4||8,000|liability|1-year|Yes||No|
||No.: 2013-012,|||||||||||
||||||||guaranty|||||
||No.: 2013-021,|||||||||||
||No.: 2013-050,|||||||||||
|Zhongshan|No.: 2013-053|||||||||||
|Changhong|2014-3-28,|||||||||||
|Electric Co.,|2014-6-6,|||||||||||
|LTD||||2014-12-3||12,000.00||||||
||No.: 2014-015,|||||||||||
||No.: 2014-019,|||||||||||
||||||||Joint|||||
||No.: 2014-034;|||||||||||
|||55,000.00|||||liability|1-year|No||No|
||2015-3-26,|||||||||||
|||||2014-12-30||10,000.00||||||
||||||||guaranty|||||
||2015-4-18,|||||||||||
||No.: 2015-003,|||||||||||
||No.: 2015-007,|||2015-3-30||8,000.00||||||
||No.: 2015-015|||||||||||
||2015-3-26,|||||||||||
|Hefei Meiling||||||||||||
||2015-4-18,||||||Joint|||||
|Nonferrous||||||||||||
||No.: 2015-003,|4,000.00||-||0.00|liability|-|-||-|
|Metals Products||||||||||||
||No.: 2015-007,||||||guaranty|||||
|Co., Ltd.||||||||||||
||No.: 2015-015|||||||||||
|Hefei Meiling|2015-3-26,|||||||||||
||||||||Joint|||||
|Package|2015-4-18,|||||||||||
|||2,000.00||-||0.00|liability|-|-||-|
|Products Co.,|No.: 2015-003,|||||||||||
||||||||guaranty|||||
|Ltd.|No.: 2015-007,|||||||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||No.: 2015-015|||||||||||||
|Total amount of approving guarantee for|||||||Total amount of actual occurred guarantee for|||||||
|||||63,000.00|||||||||38,000.00|
|subsidiaries in report period (B1)|||||||subsidiaries in report period (B2)|||||||
|Total amount of approved guarantee for|||||||Total balance of actual guarantee for subsidiaries|||||||
|||||63,000.00|||||||||30,000.00|
|subsidiaries at the end of reporting period (B3)|||||||at the end of reporting period (B4)|||||||
|Guarantee of the subsidiaries Company for the subsidiaries||||||||||||||
||||||||||||Comple|||
|||||Actual date of||||||||||
|Name of the|Related||||||Actual||||te|Guarantee for||
|||Guarantee||happening (Date||||Guarantee||Guarantee||||
|Company|Announcement||||||guarantee||||implem|related party||
|||limit||of signing||||type||term||||
|guaranteed|disclosure date||||||limit||||entation|(Yes or no)||
|||||agreement)||||||||||
||||||||||||or not|||
|N/A|-|-||-|||-|-||-|-||-|
|Total amount of approving guarantee for|||||||Total amount of actual occurred guarantee for|||||||
||||||-||||||||-|
|subsidiaries in report period(C1)|||||||subsidiaries in report period (C2)|||||||
|Total amount of approved guarantee for subsidiaries|||||||Total balance of actual guarantee for subsidiaries|||||||
||||||-||||||||-|
|at the end of reporting period (C3)|||||||at the end of reporting period (C4)|||||||
|Total amount of guarantee of the Company( total of three abovementioned guarantee)||||||||||||||
|||||||Total amount of actual||||||||
|Total amount of approving guarantee||||||occurred guarantee in||||||||
||||63,000.00||||||38,000.00|||||
|in report period (A1+B1+C1)||||||report period||||||||
|||||||(A2+B2+C2)||||||||
|||||||Total balance of actual||||||||
|Total amount of approved guarantee at||||||guarantee at the end of||||||||
||||63,000.00||||||30,000.00|||||
|the end of report period (A3+B3+C3)||||||report period||||||||
|||||||(A4+B4+C4)||||||||
|The proportion of the total amount of actually guarantee in the||||||||||||||
|||||||8.51%||||||||
|net assets of the Company (that is A4+ B4+C4)(%)||||||||||||||
|Including:||||||||||||||
|Amount of guarantee for shareholders, actual controller and its||||||||||||||
|||||||0||||||||
|related parties(D)||||||||||||||
|The debts guarantee amount provided for the guaranteed parties||||||||||||||
|||||||30,000.00||||||||
|whose assets-liability ratio exceed 70% directly or indirectly (E)||||||||||||||
|Proportion of total amount of guarantee in net assets of the||||||||||||||
|||||||0||||||||
|Company exceed 50%(F)||||||||||||||
|Total amount of the aforesaid three guarantees(D+E+F)||||||30,000.00||||||||
|Explanations on possibly bearing joint and several liquidating||||||||||||||
|||||||——||||||||
|responsibilities for undue guarantees (if applicable)||||||||||||||
|Explanations on external guarantee against regulated procedures||||||||||||||
|||||||——||||||||
|(if applicable)||||||||||||||

The above guarantees are all wholly-owned and holding subsidiaries of the Company.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Production and operation of these wholly-owned and holding subsidiaries was normal with no overdue unpaid loans and guarantee risk is controllable. During the reporting period, the highest level of security the Company provided amounted to 630,000,000 Yuan; the actual amount of guarantee is 380,000,000 Yuan. At the end of the reporting period, the practical guarantee amounted to 300,000,000 Yuan, accounting for theCompany’s latest net assets ratio of8.51%,
Explanation on guarantee with composite way
□ Applicable√ Not applicable
Guarantee outside against the regulation
□ Applicable√ Not applicable
No guarantee outside against the regulation in Period.
(III) Other significant contract
□Applicable√ Not applicable
No other significant contract in Period.
(IV) Other significant transaction
□Applicable√ Not applicable
No other significant transaction in Period.
X. Commitments from the Company or shareholder with over5% share held in reporting period or occurred in prior period but continues to reporting period
√ Applicable□Not applicable
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||||
|-|-|-|-|-|-|-|
|||||||Impleme|
|Commitment|Acceptor|Content||Date|Term||
|||||||ntation|
|Commitments made inacquisition report orequity change report|||1. The acquirer shall not engage in refrigerator business or activity||||
||||which competes or will compete with business of Meiling|||Strictly|
||||||Valid for long||
||||Electrical Appliances Co., Ltd. (hereinafter referred to as the|||implemen|
||||||term||
||||―Meiling Electrical Appliances‖),or that which has interest conflict|||ted|
||||with Meiling Electrical Appliances.||||
|||About committed and|||||
||Sichuan||2. The acquirer promises to apply shareholders’ right on a legal and|||Strictly|
|||promised in order to|||Valid for long||
||Changhong||reasonable manner and shall not take any action to limit or affect|||implemen|
|||prevent horizontal|||term||
||Electric Co.,||the normal operation of Meiling Electrical Appliances.|||ted|
|||competition in the|||||
||LTD (hereinafter||3. For any opportunity to engage in competing business, the|2007-6-12|||
|||Acquisition Report of|||||
||referred to as the|Hefei Meiling Co.,|acquirer will advise Meiling Electrical Appliances in written for||||
||―Sichuan||||||
|||Ltd.|engaging such business or not. If Meiling Electrical Appliances||||
||Changhong‖)||gives no clear written reply as to whether engaging the competing|||Strictly|
||||||Valid for long||
||||business or not within 20 days after receipt of the aforesaid letter, it|||implemen|
||||||term||
||||shall be deemed that it will not engage in such business. The|||ted|
||||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.||||
|Commitment madeduring the non-publicoffer||Commitment|1. It will not engage in such business or activity that competes with||||
|||||||Strictly|
||Sichuan|regarding to reducing|or has interest conflict with that of Meiling Electrical Appliances||Valid for long||
|||||2010-6-24||implemen|
||Changhong|and preventing|except for the action taken for sake of Meiling Electrical||term||
|||||||ted|
|||competition with|Appliances as required by Meiling Electrical Appliances.||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||
|-|-|-|-|-|
|Meiling Electrical|2. The Company promises to apply shareholders’ right on a legal||||
|Appliances|and reasonable manner and shall not take any action to 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||||
|Commitment|||||
||principles of ―equally paid and mutual benefit‖, and fairly||||
|regarding to reducing|||||
||determined the transaction price according to the market prevailing|||Strictly|
|and standardizing|||Valid for long||
||standards.|2010-6-24||implemen|
|related transaction|||term||
||2. Perform the necessary obligations to make related directors and|||ted|
|with Meiling|||||
||related shareholder abstain from voting according to relevant||||
|Electrical Appliances|||||
||regulation, and observe legal procedure 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 SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|||Commit to authorized Changhong Air Conditioning and Zhongshan Air Conditioning Co.,|||Strictly|
|||||Valid for long||
|||Ltd. (hereinafter referred to as the ―Zhongshan Air Conditioning‖) to use ―Changhong‖|2010-11-6||implemen|
|||||term||
|||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 Company|2011-1-7||implemen|
|||||term||
|||will accept opinions and criticism from the social publics, and they will not trade the|||ted|
|||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.||||
|Commitment made intransfer of airconditioning assetsproperty||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|
||Sichuan|equity transfer, to continue to lease such assets to Changhong Air Conditioning at market||term||
||||2009-12-10||ted|
||Changhong|price.||||
|||2. After completion of this property transfer, Sichuan Changhong commits to manage to|||Strictly|
|||||Valid for long||
|||prevent new related transaction with Meiling Electrical Appliances. For those which can|||implemen|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|||not be prevented, Sichuan Changhong commits to determine the transaction price based||term|ted|
|||on market accepted methods, so as to ensure fairness of related transaction and protection||||
|||of the interest of Meiling Electrical Appliances.||||
|||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 Meiling Electrical||||
|||Appliances, or that which has interest conflict with Meiling Electrical Appliances.||||
|Commitments byAnnual performanceincentive fund,incentive objectswhile purchasingstock of the Companywith performanceincentive funds andowned fund||1. Make promise not to reduce the shares of Meiling bought in every year during||||
|||implementation of the performance incentive fund via any market ways in the later first||Three years after||
||||2013-8-152||Impleme|
|||year, which was allowed to be reduced by 50% according to the laws and regulations in||current shares||
||||014-7-3||nting|
|||the second year, and the remaining 50% was allowed to be reduced in the third year in||purchased||
||Some of the|accordance with the laws and regulations.||||
||Directors,|||From the date||
||supervisors and|2. The directors, supervisors and senior management promised to manage in accordance||when annual||
||senior|with the relevant management approaches in accordance with the "Company Law",||incentive fund||
||executives of the|"Securities Law" and "The Company’s shares held by the directors, supervisors and senior||plan deliberated||
||Company as|management of the listed company and its change management rules", as objects of||and approved by||
||||2013-8-15||Impleme|
||well as other|annual performance incentive fund of Meiling, including but not limited to: during his||general meeting to||
||||2014-7-3||nting|
||incentive objects|t enure, the shares transferred each year shall not exceed 25% of the total number of shares||6 moths after||
|||held of the Company; shall not sell the shares of the Company within six months after||director,||
|||bought it or purchase again six months after sold it; shall not transfer the shares held||supervisor and||
|||within six months after Dismission.||senior executives||
|||||resigned||
|Commitments of notto reducing the shares|Sichuan|1. Sichuan Changhong and its concert party Changhong (Hong Kong) Trade Co., Ltd.||||
||||||Impleme|
||Changhong|undertook not to reduce holding shares of ―Meiling Appliances‖ and ―Wanmeiling B‖|2015-7-9|2016-1-9||
||||||nting|
||Electric Co.,|during the future six months commencing from the date on which Meiling Appliances||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
||LTD and persons|released relevant announcement (9 July 2015-9 January 2016), so as to maintain stable|
||acting in concert|market and protect investors’ interest with their actual activities;|
||Changhong||
||(Hong Kong)|2. Based on market conditions and as allowed by laws and rules, multiple measures were|
||Trading|adopted adequately to increase shareholding of Meiling Appliances, so as to demonstrate|
||Company|its firm confidence on the PRC economy and Meiling Appliances with its actual actions,|
||Limited|maintain sound development of capital market and promote recovery of healthy market;|
|||3. The Company continued to support operation and development of listed company. It iscommitted to bringing steady and real return to investors.|
|Perform the commitment promptly ornot||√ Yes □ No|
|Specific reason|||
|for non-performance and the next||Non-applicable|
|plan|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 XI. Appointment and non-reappointment (dismissal) of CPA
Whether the semi-annual financial report had been audited
□Yes√ No
The semi-annual report was not audited
XII. Penalty and rectification
□ Applicable√ Not applicable
No penalty or rectification in Period.
XIII. Risk disclosure of delisting with laws and rules violated
□Applicable√ Not applicable
The Company has no delisting risks with laws and rules violated in Period.
XIV. Other significant issues
√ Applicable□Not applicable
(I)the Company received the Notice from the second largest shareholder Hefei Xingtai Holdings Group Co., Ltd. (hereinafter referred to as―XingtaiHoldings‖) on 6 March 2015. According to the overall arrangement for state-owned enterprises reform of Hefei province, adjustments were made to Hefei state-participated operating organs. It is planned to transfer the 49,477,513 state-owned shares of the Company held by Xingtai Holdings to Hefei Industrial Investment Holdings Group CO., Ltd. to be established for free. Till now, the above equity adjustment is in the process of performing relevant approval procedure. Details have been disclosed by the Company by way of announcement (No. 2015-001) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 7 March 2015.
(II) As approved by resolutions at the
6th
meeting of the
8th
session of the Board held on 24 March 2015, Zhongke Meiling is approved to carry out the relocation and capacity expansion with investment of approximately RMB 156.3219 million, after completion, Zhongke Meiling will has the capacity ability of 26,000 cryogenic refrigerators in one year. Details have been disclosed by the Company by way of announcements (No. 2015-003) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 26 March 2015.
(III) As approved by resolutions at the
6th
meeting of the
8th
session of the Board held on 24 March 2015, Mr. Wu Dinggang and Mr. Zhang Xiaolong are approved to appoint as the deputy president and deputy president as well as the CFO of the Company respectively. Details have been
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 disclosed by the Company by way of announcements (No. 2015-003) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 26 March 2015.
(IV) In light of the serial accounting rules that have revised and issued by ministry of finance in 2014, as approved by resolutions at the
6th
meeting of the
8th
session of the Board held on 24 March 2015 and 17 April, according to relevant regulations and requriement, the Company is approved to carried out the new enterprise accounting rules for corresponding accounting policy changed in line with the relevant regulations and rules. Details have been disclosed by the Company by way of announcements (No. 2015-003, No.2015-008, No.2015-015) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 26 March 2015 and 18 April 2015 respectively.
(V)As approved by resolutions at the
6th
meeting of the
8th
session of the Board and 2014 annual general meeting held on 24 March and 17 April 2015 respectively, the Company is approved to make foreign exchange forward deals from 1 January 2015 to 30 June 2016, with deal balance not exceeding USD350 million and the maximum settlement period for single deal not exceeding two years. Details have been disclosed by the Company by way of announcements (No. 2015-003, 2015-010, 2015-015) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 26 March 2015 and 18 April 2015.
(VI) As approved by resolutions at the
6th
meeting of the
8th
session of the Board and 2014 annual general meeting held on 24 March and 17 April 2015 respectively, the Company is authorized to invest in low-risk guaranteed floating income banking financing products featuring with high level of safety, liquidity, matured within one year, guaranteed with agreement and due repayment and payment of principal and interests with its own unoccupied capital not more than RMB1 billion, provided that such investment would not affect capital needs for normal operation and investment risks are under effective control. And the investment period shall be one year. Meanwhile, the Company has established Financing Products Investment Management Policy. Details have been disclosed by the Company by way of announcements (No. 2015-003, 2015-011, 2015-015) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 26 March 2015 and 18 April 2015.
(VII) As democratic elections in the congress of workers and staff held on 8 April 2015, Mr. Zhu Wenjie is approved to increased in the
8th
session of the supervisory committee as staff supervisor, and servers as the term as
8th
session of the supervisory committee. Details have been disclosed by the Company by way of announcements (No. 2015-014) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 10 April 2015.
(VIII)On 17 April 2015, the
8th
session of the Board held its
7th
meeting to consider and
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 approve the proposal on joint venture incorporation by its subsidiary Sichuan Changhong Air Conditioner Company Limited and Hengyouyuan Science and Technology Development Group Company Limited. Taking into account the operation needs of its subsidiary Sichuan Changhong Air Conditioner Company Limited (hereinafter referred to as―Changhong AirConditioner‖), it is agreed for Changhong Air Conditioner to incorporate manufacture joint venture and sales joint venture with Hengyouyuan Science and Technology Development Group Company Limited (hereinafter referred to as―HengyouyuanGroup‖, a subsidiary of China Ground Source Energy Industry Group Limited (stock code: 8128.HK)) with its own capital of RMB50 million, aiming to cooperation for the―ground source cold and heat integrityproject‖ and promote industrialization of this project and carry out research, development, production and sales of related products.
The joint venture manufacturing enterprise Hongyuan Dineng Heat Pump Technology Co., Ltd. has the registered capital of RMB 50 million, including RMB 25.5 million contributed by Changhong AC in cash, representing51% of the register capital; Ever Source Technology Development contribute RMB 24.5 million in cash, representing49% of the registered capital. The joint venture sales enterprise Hongyuan Dineng Rebao Technology Co., LTd. has registered capital of RMB 50 million, including RMB 25.5 million invested by Ever Source Technology Development, a51% in registered capital while RMB 24.5 million contributed by Changhong AC, a49% in registered capital.
Details have been disclosed by the Company by way of announcement (No. 2015-016) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 18 April 2015.
(IX)On 20 May 2015, the Company entered into a collection financing plan agreement named―Fortune. Stable Profit―with Anhui province branch of Bank of Communications, pursuant to which, the Company subscribed the―Fortune. Stable Profit―financing products featuring with guaranteed floating income launched by Anhui province branch of Bank of Communications with its own unoccupied capital of RMB100 million. Details have been disclosed by the Company by way of announcement (No. 2015-019) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 22 May 2015.
(X)Three shareholders of the Company holding lock-up shares including Hefei Mingzhu branch of China Agriculture Bank, Tan Zuzheng and Xiong Xueqin have respectively entrusted the Board to apply to Shenzhen Stock Exchange and China Securities Depository Clearing Company Shenzhen Branch for advancement of consideration repayment, which has been completed on 29 May 2015. The three shareholders repaid in aggregate 375,295 shares to Meiling Group as consideration shares and their interest allocation, accounting for0.0491% of the total share capital
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 of the Company. On 31 July 2015, the lock-up shares held by the three shareholders will be released for sale and total to 2,085,091 shares, accounting for0.2730% of the total share capital of the Company. Details have been disclosed by the Company by way of announcements (No. 2015-020, 2015-030) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 22 May 2015 and 29 July 2015.
(XI)Considering its operation and production needs and in order to cater to development trend of refrigerator products and satisfy its capacity requirement for large-sized refrigerator products in future years, as approved by resolutions at the
8th
meeting of the
8th
session of the Board held on 3 July 2015, the Company was approved to make technical reform on refrigerator production line with its own capital of RMB28 million, so as to improve its production capacity and efficiency in terms of large sized refrigerators and satisfy quality requirements. Details have been disclosed by the Company by way of announcement (No. 2015-022) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 4 July 2015.
(XII) The Company held the
8th
meeting of
8th
session of the Board on 3 July 2015, and deliberated and approved the proposal of securities affairs representative engagement, Mr. Zhu Wenjie is approved to serves as the securities affairs representative of the Company and assist the secretary of the board for performance implementation, the terms are from the date when the deliberation approved to the end of the board session. Details have been disclosed by the Company by way of announcement (No. 2015-022, No.2015-024) on the designated information disclosure media including Securities Times, China Securities, Hong Kong Commercial Daily and Juchao Information Website (www.cninfo.com.cn) on 4 July 2015.
(XIII) 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 (2012-028, 2012-035).
1. Implementation about 2012 performance incentive fund provision and distribution plan Found more in―1. Accrual of the Performance incentive fund for year of 2012 and distribution planimplementation‖ of―(XII) implementation of the annual performance incentivefund‖ carried in―XIV.Other Importantevents‖ of the Section V. Important Events in the Annual Report of 2014
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 published on 26 March 2015
During the reporting period, the directors, supervisors and senior management as grantees of the 2012 incentive plan did not reduce holding of their shares bought by them with 2012 performance incentive funds and own capital. Other grantees of the 2012 incentive plan (not being directors, supervisors and senior management) have reduced holding of 1,438,754 in aggregate, accounting for0.1884% of the total share capital, since September 2014 to the end of the reporting period.
2. Implementation of 2013 annual performance incentive provision and distribution program For details, please refer to the 2014 annual report disclosed by the Company on 26 March 2015 under section V―SignificantIssues‖ under―XIV Explanation for other significantissues‖ under―(XII) Implementation of annual performance incentivefunds‖ under 2.―Provision for and allocation plan for 2013 annual performance incentivefunds‖.
According to the stipulation under Incentive Plan and their commitments, the grantees shall not reduce holding of shares within one year upon acquisition of their shares with 2013 performance incentive funds and own capital, and are allowed to reduce holding of50% under laws and rules in the second year, and the remaining50% in the third year. As at the end of the reporting period, the aforesaid holding lasts for less than one year. In addition, as for such grantees under 2013 performance incentive plan serving as directors, supervisors and senior management, their holding and movement thereof shall comply with Company Law, Securities Law and Management Rules on Holding Shares of the Company and Movement thereof by Directors, Supervisors and Senior Management of Listed Issuer. Certain directors, supervisors and senior management acquired our Shares with 2013 performance incentive funds granted to them and their own capital. According to relevant laws and regulations, shares of the Company held by them are not allowed to sell within six months upon acquisition. Any gains arising from illegal sale will be vested to the Company. Therefore, shares bought by the grantees successively during August to November 2014 have been held for less than one year till disclosure date of this report, and all the shares acquired by the grantees are locked up according to their commitments, and acquisition of shares by certain directors, supervisors and senior management has been disclosed on the designated information disclosure media between 19 August to 15 November 2014.
3. Ended as 30 June 2015, shares hold by all incentive objects amounting to 8,416,428 shares, a1.1020% in total share capital of the Company, including 7,530,436 A-share, a0.9860% in total share capital and 885,992 B-share, a 0.1160 in total share capital of the Company.
4. Implementation of 2014 annual performance incentive provision and distribution program According to the "incentive plan" the Company has approved, the operating results (audited in
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 2014) and the actual operation situation, the annual performance incentive fund has reached the awarded conditions. Being recognized by the Board, benefited directors and supervisors withdraw from voting, the "2014 Annual Performance Incentive FundProvision‖ was deliberated and approved in
6th
meeting of the
8th
session of the board,
4th
meeting of
8th
session of supervisory committee and general meeting of 2015 dated March 24, 2015 and April 28. And, being recognized by the Board, benefited directors and supervisors withdraw from voting, the "2014 Annual Performance Incentive Fund AllocationScheme‖ was deliberated and approved in
8th
meeting of the 8th
session of the board,
6th
meeting of
8th
session of supervisory committee and first extraordinary general meeting of 2015 dated July 3, 2015 and July 21. More details are:
(1) Incentive range and number: 44 people compliance with the conditions of the incentive objects (senior management, middle management, and core technology and business personnel). (2) Capital resources: in line with the RMB 32.1867 million for incentive fund from10% of net profit attributable to shareholder of listed company that audited for year of 2014; RMB 24.78 million has been distributed to 44 incentive objects (senior managers, middle management, and core technology and business personnel) that satisfied the laws, regulations and―IncentivePlan‖. All the incentive objects will, purchase stock of the Company in open market with all incentive funds (income tax excluded) obtained plus no less favorable than 30 percent of the total annual
remuneration (except for performance fund; total annual remuneration after relevant tax cut and five-insurance payment paid).
(3) Share holding: According to the "incentive plan" the company have approved, and under the premise of the Listing Rules of Shenzhen Stock Exchange and other applicable Chinese laws and regulations, incentive target promised within 60 working days as of receipt of the performance incentive funds (In case of regulatory ruled the trading of shares shall not be specified, the time extended), to purchase the Company's shares through the open market. The incentive plan was in the implementation up to the disclosure date.
(4) As for change of shareholding arising from disposal of shares by the grantees: The
incentive plan was in the implementation up to the disclosure date, and with the foregoing.
(5)Commitment for restricted sales:
According to the Implementation Program of the Annual Performance Incentive Capital of Hefei Meiling Co., Ltd and the commitment made by all the grantees, grantees can not reduce shareholding by any market means in respect of theCompany’s shares purchased by them within one year upon the date of purchase;50% of the shares can be reduced for holding in the second year
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 according to applicable laws and rules; and the remaining50% can be reduced for holding in the third year according to applicable laws and rules. In addition, certain grantees who are also directors, supervisors or senior management of the Company undertook that they would watch out their behaviors in compliance with relevant requirements of the Company Law, Securities Law and Management Rules on Holding Shares of the Company or Change thereof by Director, Supervisor and Senior Management of Listed Issuer, including but not limited to: shares transferred annually by them shall not exceed25% of the total shares held in the Company during their terms of office; they are not allowed to sell the shares held in the Company within six month upon purchase or to buy back the shares within six month upon disposal; they are not allowed to transfer the shares held in the Company within a half year upon their resignation.
Details were disclosed on information disclosure media appointed by the Company as "Securities Times", "Chinese Securities Daily", "Hong Kong Commercial Daily" and the Juchao website (www.cninfo.com.cn) respectively dated 17 June2012, 4 July 2014, 12 August 2014, 19 August 2014, 27 August 2014, 28 August 2014, 17 September 2014, 18 October 2014, 24 October 2014, 4 November 2014, 6 November 2014, 8 November 2014, 12 November 2014, 15 November 2014, 26 March 2015, 18 April 2015, 4 July 2015 and 22 July 2015 in the form of announcement (No.: 2014-036, No.: 2014-037, No.: 2014-040, No.: 2014-046, No.: 2014-055, No.: 2014-056, No.: 2014-057, No.: 2014-060, No.: 2014-063, No.: 2014-066, No.: 2014-068, No.: 2014-069, No.: 2014-070, No.: 2014-072 and No.: 2014-073) as well as the Semi-annual report of 2014 and 3Q report of 2014, Annual 2014, No.:2015-003, No.:2015-004, No.:2015-009, No.:2015-015, No.:2015-022, No.:2015-023, No.:2015-025, No.:2015-029.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section VI. Changes in Shares and Particulars about Shareholders I. Changes in Share Capital
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||||Capital|||||
||||New||ization|||||
|||Proporti||Bonus|||||Proporti|
||Amount||shares||of|Others|Subtotal|Amount||
|||on (%)||shares|||||on (%)|
||||issued||public|||||
||||||reserve|||||
|I. Restricted shares|10,658,357|1.40%|-|-|-|-1|-1|10,658,356|1.40%|
|1. State-owned shares|-|-|-|-|-|-|-|-|-|
|2. State-owned legal||||||||||
||540,692|0.07%|-|-|-|+375,295|+375,295|915,987|0.12%|
|person’s shares||||||||||
|3. Other domestic||||||||||
||9,453,171|1.24%|-|-|-|-375,296|-375,296|9,077,875|1.19%|
|shares||||||||||
|Including: domestic||||||||||
||7,052,279|0.92%|-|-|-|-337,596|-337,596|6,714,683|0.88%|
|legal person’s shares||||||||||
|Domestic natural||||||||||
||2,400,892|0.32%|-|-|-|-37,700|-37,700|2,363,192|0.31%|
|person’s shares||||||||||
|4. Foreign shares|664,494|0.09%|-|-|-|-|-|664,494|0.09%|
|Including: Foreign||||||||||
||-|-|-|-|-|-||||
|legal person’s shares||||||||||
|Foreign natural||||||||||
||664,494|0.09%|-|-|-|-|-|664,494|0.09%|
|person’s shares||||||||||
|II. Unrestricted shares|753,080,848|98.60%|-|-|-|+1|+1|753,080,849|98.60%|
|1. RMB Ordinary||||||||||
||590,881,342|77.36%|-|-|-|+1|+1|590,881,343|77.36%|
|shares||||||||||
|2. Domestically listed||||||||||
||162,199,506|21.24%|-|-|-|-|-|162,199,506|21.24%|
|foreign shares||||||||||
|3. Overseas listed||||||||||
||-|-|-|-|-|-|-|-|-|
|foreign shares||||||||||
|4. Others|-|-|-|-|-|-|-|-|-|
|III. Total shares|763,739,205|100.00%|-|-|-|-|-|763,739,205|100.00%|

Note: data of the ratios have rounded up to two digits after the decimal point, increased/decreased―1share‖
refers to the difference, data is provided by the Shenzhen Branch of China Securities Depository and Clearing Co.,
Ltd.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 (I) Reasons for share changed
√ Applicable□Not applicable
On 29 May 2015, the price of shares and distribution equity paid in advance by Meiling Group on behalf of the three restricted shareholders in the stock rights splitting reform have been paid by the three restricted shareholders, shares amounting to 375,295 shares, a0.0491% in total share capital of the Company
(II) Approval of share changed
□ Applicable√ Not applicable
(III) Ownership transfer of share changed
□ Applicable√ Not applicable
(IV) Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
(V) Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable√ Not applicable
(VI) Explanation on changes of total shares, shareholders structure and assets& liability structures
□ Applicable√ Not applicable
II. Amount of shareholders of the Company and particulars about shares holding
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Total preference shareholders with|||||
|Total common shareholders in reporting||||||||||
|||65,613|||voting rights recovered at end of|||N/A||
|period-end||||||||||
||||||reporting period (if applicable)|||||
|Particulars about shares held above 5% by common shareholders or top 10 common shares holding||||||||||
|||||||||Number of||
|||||||Amount of||share||
||||Total common||||Amount of|||
|||||||restricted||pledged/froz||
||Nature of|Proportion|shareholders|Changes in|||un-restricted|||
|Full name of Shareholders||of shares||||common||en||
||shareholder||at the end of|report period|||common|||
|||held (%)||||shares||State||
||||report period||||shares held||Amou|
|||||||held||of||
||||||||||nt|
|||||||||share||
|Sichuan Changhong ElectricCo., LTD|State-ownedlegal person|21.58%|164,828,330|0||0|164,828,330|||
|||||||||-|-|
|Hefei Xingtai Holding GroupCo., Ltd.|State-ownedlegal person|6.26%|47,823,401|0||0|47,823,401|||
|||||||||-|-|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Changhong (Hong Kong)Trading Company Limited|Foreign legalperson|3.30%||25,165,823|0||0|25,165,823||||
|||||||||||-|-|
|Zhengde life insurance Co.,LTD-universal insuranceproducts|Domestic nonstate-ownedcorporate|3.15%||24,021,690|0||0|24,021,690||||
|||||||||||-|-|
|CAO SHENGCHUN|Foreign naturalperson|1.75%||13,349,015|136,459||0|13,349,015||||
|||||||||||-|-|
|UBS AG|Foreign legalperson|0.98%||7,469,912|7,469,912||0|7,469,912||||
|||||||||||-|-|
|DEUTSCHE BANKAKTIENGESELLSCHAFT|Foreign legalperson|0.89%||6,765,136|6,765,136||0|6,765,136||||
|||||||||||-|-|
|NORGES BANK|Foreign legalperson|0.55%||4,216,432|0||0|4,216,432||||
|||||||||||-|-|
|Long Qinfang|Foreign naturalperson|0.42%||3,232,597|32,000||0|3,232,597||||
|||||||||||-|-|
|DRAGON BILLION CHINAMASTER FUND|Foreign legalperson|0.39%||3,002,517|-2,326,972||0|3,002,517||||
|||||||||||-|-|
|Strategy investors or general legal person||||||||||||
|becomes top 10 shareholders due to rights issued||Not applicable||||||||||
|(if applicable)||||||||||||
|||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.,||||||||||
|Explanation on associated relationship among the||||||||||||
|||Ltd., Changhong (Hong Kong) Trade Co., Ltd. and other top 8 shareholders; and||||||||||
|aforesaid shareholders||||||||||||
|||top ten shareholders with unrestricted subscription; 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.||||||||||
|Particular about top ten common shareholders with un-restrict shares held||||||||||||
||||Amount of unrestricted|||Type of shares||||||
|Shareholders’ name|||common shares held at|||||||||
|||||||Type|||Amount|||
||||reporting period-end|||||||||
|Sichuan Changhong Electric Co., LTD|||164,828,330|||RMB ordinary shares|||164,828,330|||
|Hefei Xingtai Holding Group Co., Ltd.|||47,823,401|||RMB ordinary shares|||47,823,401|||
|Changhong (Hong Kong) Trading Company Limited|||25,165,823|||Domestically listed foreign||||||
||||||||||25,165,823|||
|||||||shares||||||
|Zhengde life insurance Co., LTD-universal insurance|||24,021,690|||RMB ordinary shares|||24,021,690|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||
|-|-|-|-|-|
|products|||||
|CAO SHENGCHUN||13,349,015|RMB ordinary shares|13,349,015|
|UBS AG||7,469,912|Domestically listed foreign||
|||||7,469,912|
||||shares||
|DEUTSCHE BANK AKTIENGESELLSCHAFT||6,765,136|Domestically listed foreign||
|||||6,765,136|
||||shares||
|NORGES BANK||4,216,432|RMB ordinary shares|4,216,432|
|Long Qinfang||3,232,597|Domestically listed foreign||
|||||3,232,597|
||||shares||
|DRAGON BILLION CHINA MASTER FUND||3,002,517|Domestically listed foreign||
|||||3,002,517|
||||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||||
|Expiation on associated relationship or consistent|the Measures for the Administration of Information Disclosure of Shareholder||||
|actors within the top 10 un-restrict common|Equity Changes of Listed Companies among Sichuan Changhong Electronic Co.,||||
|shareholders and between top 10 un-restrict|Ltd., Changhong (Hong Kong) and other top 8 shareholders; and top ten||||
|common shareholders and top 10 common|shareholders with unrestricted subscription; as the Company has not known||||
|shareholders|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 shareholders involving margin|||||
|business among the top ten shareholder (if|-||||
|applicable)|||||

Agree to buy-back dealings occurred in Period by top 10 common shareholders and top 10 common shareholders with shares restricted for sale
□Yes √No
No agree to buy-back dealings occurred in Period by top 10 common shareholders and top 10 common shareholders with shares restricted for sale
III. Shareholder and actual controller
(I)Changes of controlling shareholder in reporting period
□Applicable√Not applicable
No change of controlling shareholder in reporting period.
(II)Changes of actual controller in reporting period
□Applicable√Not applicable
No changes of actual controller in reporting period
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Pursuant to the document relating to furthering reform and accelerating transformation of Sichuan Changhong Electronics Group Company as principally approved bypeople’s government of Sichuan, Sichuan Changhong Electronics Group Company is in the process of propelling reforms. Pursuant to the document relating to approval of the articles of association of Sichuan Changhong Electronics Holding Group Company issued by SASAC office in Mianyang, on 2 June 2015, as approved by Mianyang Industry and Commercial Administration, Sichuan Changhong Electronics Group Company (the parent company of Sichuan Changhong which is our controlling shareholder) changed its name to―Sichuan Changhong Electronics Holding Group CompanyLimited‖ from―Sichuan Changhong Electronics Group CompanyLimited‖.
IV. Share holding increasing plan proposed or implemented in reporting period from shareholder of the Company and its concerted action person
√ Applicable□ Not applicable
According to the notice relating to increasing holding shares of the Company by the substantial shareholder and directors, supervisors and senior management(ZJF[2015]51) issued by the CSRC, the Company received the letter from its largest shareholder Sichuan Changhong dated 8 July 2015 on commitment on not reducing shareholdings in Meiling Appliances for the future six months, the major contents of which are set below:
Recently, securities market experienced irrational fluctuation, which negatively affectedinvestors’ interests and development of the listed company. Listed issuer, controlling shareholders and investors bear not merely interests, but also responsibilities together. Based on its solid confidence on future performance of Meiling Appliances, Sichuan Changhong commits as follows to maintain market expectation andshareholders’ interests:
1. Sichuan Changhong and its concert party Changhong (Hong Kong) Trade Co., Ltd. undertook not to reduce holding shares of―MeilingAppliances‖ and―WanmeilingB‖ during the future six months commencing from the date on which Meiling Appliances released relevant announcement (9 July 2015-9 January 2016), so as to maintain stable market and protectinvestors’ interest with their actual activities;
2. Based on market conditions and as allowed by laws and rules, multiple measures were adopted adequately to increase shareholding of Meiling Appliances, so as to demonstrate its firm confidence on the PRC economy and Meiling Appliances with its actual actions, maintain sound development of capital market and promote recovery of healthy market;
3. The Company continued to support operation and development of listed company. It is committed to bringing steady and real return to investors.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section VII. Preferred Stock
□ Applicable√ Not applicable
The Company had no preferred stock in the reporting.
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section VIII Particular about Directors, Supervisors, Senior Executives and Employees
I. Changes of shares held by directors, supervisors and senior executive
□Applicable√Not applicable
Shares held by directors, supervisors and senior executive of the Company had no changes, more details can be seen in Annual Report 2014.
II. Changes of directors, supervisors and senior executive
√ Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reasons|
|||||Agreed to appointed Mr. Wu Dinggang as the deputy president|
|Wu|Deputy||||
|||Engaged|2015-3-24|of the Company by approved in 6th meeting of 8th session of the|
|Dinggang|president||||
|||||Board|
||Deputy||||
|||||Agreed to appointed Mr. Zhang Xiaolong as the deputy president|
|Zhang|president and||||
|||Engaged|2015-3-24|and CFO of the Company by approved in 6th meeting of 8th|
|Xiaolong|Finance||||
|||||session of the Board|
||Manager||||
|Zhang||Office||Resign the staff supervisor of the 8th session of supervisory|
||Supervisor||2015-4-8||
|Ruhe||leaving||committee due to personal reasons|
|||||Agreed to appointed Mr. Zhu Wenjie as the staff supervisor of 8th|
|Zhu|||||
||Supervisor|Be elected|2015-4-8|session of supervisory committee by democratic election in|
|Wenjie|||||
|||||congress of workers and staff|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Hefei Meiling Co., Ltd.
2015-06-30
In RMB
||||
|-|-|-|
|Items|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|2,797,826,595.72|2,665,219,013.80|
|Settlement provisions|||
|Capital lent|||
|Financial liability measured by|||
|fair value and with variation|3,572,100.00||
|reckoned into current gains/losses|||
|Derivative financial liability|||
||1,786,165,001.95|1,223,468,044.05|
|Notes receivable|||
||1,993,308,900.76|1,160,192,277.00|
|Accounts receivable|||
|Accounts paid in advance|102,516,378.74|92,501,704.06|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of|||
|reinsurance receivable|||
|Interest receivable|582,870.63||
|Dividend receivable|||
|Other receivables|39,765,529.55|28,729,328.80|
|Purchase restituted finance|||
|asset|||
|Inventories|1,547,574,776.02|1,765,761,407.86|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Divided into assets held for sale|||
|Non-current asset due within|||
|one year|||
|Other current assets|||
|Total current assets|8,271,312,153.37|6,935,871,775.57|
|Non-current assets:|||
|Loans and payments on behalf|||
|Finance asset available for|||
||5,000,000.00|5,500,000.00|
|sales|||
|Held-to-maturity investment|||
|Long-term account|||
|receivable|||
|Long-term equity investment|78,096,234.75|14,211,004.21|
|Investment property|14,488,504.55|14,892,795.62|
|Fixed assets|1,250,954,494.88|1,223,763,920.86|
|Construction in progress|28,235,524.90|62,766,707.57|
|Engineering material|||
|Disposal of fixed asset|75,734,875.15|75,808,843.84|
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|570,803,265.21|561,864,209.63|
|Expense on Research and|||
||38,620,703.41|25,194,157.09|
|Development|||
|Goodwill|5,313,913.50|5,313,913.50|
|Long-term expenses to be|||
|apportioned|||
|Deferred income tax asset|87,099,204.01|83,826,873.81|
|Other non-current asset|41,633,616.00||
|Total non-current asset|2,195,980,336.36|2,073,142,426.13|
|Total assets|10,467,292,489.73|9,009,014,201.70|
|Current liabilities:|||
|Short-term loans|356,634,892.65|407,508,739.07|
|Loan from central bank|||
|Absorbing deposit and|||
|interbank deposit|||
|Capital borrowed|||
|Financial liability measured by|||
|||81,170.00|
|fair value and with variation|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|reckoned into current gains/losses|||
|Derivative financial liability|||
|Notes payable|2,638,130,242.78|1,553,110,292.55|
|Accounts payable|1,921,548,794.47|1,681,116,965.38|
|Accounts received in|||
||250,150,216.76|296,641,377.09|
|advance|||
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||
|commission payable|||
|Wage payable|105,447,267.73|156,537,212.29|
|Taxes payable|134,142,270.74|51,153,350.18|
|Interest payable|||
|Dividend payable|12,592,208.16|2,237,640.91|
|Other accounts payable|925,616,443.93|872,725,707.68|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due|||
||11,153,513.56|11,153,512.52|
|within 1 year|||
|Other current liabilities|||
|Total current liabilities|6,355,415,850.78|5,032,265,967.67|
|Non-current liabilities:|||
|Long-term loans|48,400,646.40|18,947,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|40,426,920.51|40,317,465.61|
|Special accounts payable|||
|Projected liabilities|342,633,453.84|347,107,686.15|
|Deferred income|129,472,451.99|131,995,227.77|
|Deferred income tax|||
|liabilities|||
|Other non-current liabilities|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Total non-current liabilities|560,933,472.74|538,367,379.53|
|Total liabilities|6,916,349,323.52|5,570,633,347.20|
|Owner’s equity:|||
|Share capital|763,739,205.00|763,739,205.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|1,459,001,004.62|1,466,959,939.03|
|Less: Inventory shares|||
|Other comprehensive income|-3,642,823.37|-3,262,898.99|
|Reasonable reserve|||
|Surplus public reserve|359,857,106.14|359,857,106.14|
|Provision of general risk|||
|Retained profit|947,998,727.87|835,453,313.49|
|Total owner’s equity attributable|||
||3,526,953,220.26|3,422,746,664.67|
|to parent company|||
|Minority interests|23,989,945.95|15,634,189.83|
|Total owner’s equity|3,550,943,166.21|3,438,380,854.50|
|Total liabilities and owner’s|||
||10,467,292,489.73|9,009,014,201.70|
|equity|||

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:|||
||2,228,647,696.34|2,392,059,424.25|
|Monetary funds|||
|Financial liability measured by|||
|fair value and with variation|3,572,100.00||
|reckoned into current gains/losses|||
|Derivative financial liability|||
||1,164,696,587.55|828,127,854.78|
|Notes receivable|||
|Accounts receivable|1,120,726,579.73|809,847,584.71|
|Account paid in advance|318,432,248.06|176,658,393.90|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|43,155,289.53|54,910,749.80|
|Inventories|743,707,793.30|795,329,785.95|
|Divided into assets held for sale|||
|Non-current assets maturing|||
|within one year|||
|Other current assets|||
|Total current assets|5,622,938,294.51|5,056,933,793.39|
|Non-current assets:|||
|Available-for-sale financial assets|5,000,000.00|5,000,000.00|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|841,792,186.92|833,369,872.61|
|Investment property|12,042,848.31|12,279,792.66|
|Fixed assets|915,003,097.35|885,435,282.76|
|Construction in progress|12,512,586.05|48,527,533.03|
|Project materials|||
|Disposal of fixed assets|43,439,954.71|43,404,954.71|
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|428,667,291.66|434,092,342.78|
|Research and development costs|8,153,264.51|509,879.01|
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|74,393,893.35|76,189,511.02|
|Other non-current assets|||
|Total non-current assets|2,341,005,122.86|2,338,809,168.58|
|Total assets|7,963,943,417.37|7,395,742,961.97|
|Current liabilities:|||
|Short-term borrowings|255,602,650.78|373,242,339.07|
|Financial liability measured by|||
|fair value and with variation||81,170.00|
|reckoned into current gains/losses|||
|Derivative financial liability|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Notes payable|1,432,169,529.16|1,036,334,282.38|
|Accounts payable|1,043,677,846.55|1,151,471,839.41|
|Accounts received in advance|455,391,963.14|152,745,865.71|
|Wage payable|40,262,081.12|77,090,385.79|
|Taxes payable|56,491,216.59|23,323,462.51|
|Interest payable|||
|Dividend payable|12,592,208.16|2,237,640.91|
|Other accounts payable|785,837,406.46|712,029,942.44|
|Divided into liability held for sale|||
|Non-current liabilities due within|||
||7,487,761.64|7,487,760.60|
|1 year|||
|Other current liabilities|||
|Total current liabilities|4,089,512,663.60|3,536,044,688.82|
|Non-current liabilities:|||
|Long-term loans|7,292,800.00|7,932,800.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|40,426,920.51|40,317,465.61|
|Special accounts payable|||
|Projected liabilities|342,633,453.84|347,107,686.15|
|Deferred income|71,794,163.54|75,538,045.61|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|462,147,337.89|470,895,997.37|
|Total liabilities|4,551,660,001.49|4,006,940,686.19|
|Owners’ equity:|||
|Share capita|763,739,205.00|763,739,205.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|1,497,987,059.46|1,497,987,059.46|
|Less: Inventory shares|||
|Other comprehensive income|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Reasonable reserve|||
|Surplus reserve|359,638,940.46|359,638,940.46|
|Retained profit|790,918,210.96|767,437,070.86|
|Total owner’s equity|3,412,283,415.88|3,388,802,275.78|
|Total liabilities and owner’sequity|||
||7,963,943,417.37|7,395,742,961.97|

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|6,426,917,289.25|6,344,389,052.17|
|Including: Operating income|6,426,917,289.25|6,344,389,052.17|
|Interest income|||
|Insurance gained|||
|Commission charge and|||
|commission income|||
|II. Total operating cost|6,257,071,584.82|6,163,398,022.60|
|Including: Operating cost|5,084,245,127.90|4,780,495,721.56|
|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|45,299,593.62|45,651,000.27|
|Sales expenses|945,446,083.20|1,156,472,220.52|
|Administration expenses|192,562,243.42|194,547,455.17|
|Financial expenses|-45,802,594.42|-43,840,298.90|
|Losses of devaluation of asset|35,321,131.10|30,071,923.98|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Add: Changing income of fair|||
||3,653,270.00||
|value(Loss is listed with ―-‖)|||
|Investment income (Loss is|||
||-5,484,432.72|-784,297.22|
|listed with ―-‖)|||
|Including: Investment income|||
|on affiliated company and joint|-6,482,572.94|-784,297.22|
|venture|||
|Exchange income (Loss is|||
|listed with ―-‖)|||
|III. Operating profit (Loss is|||
||168,014,541.71|180,206,732.35|
|listed with ―-‖)|||
|Add: Non-operating income|14,805,119.86|20,397,907.16|
|Including: Disposal gains of|||
||14,776.00|1,469,461.36|
|non-current asset|||
|Less: Non-operating expense|9,264,613.15|2,812,927.92|
|Including: Disposal loss of|||
||5,696,803.31|554,394.53|
|non-current asset|||
|IV. Total Profit (Loss is listed|||
||173,555,048.42|197,791,711.59|
|with ―-‖)|||
|Less: Income tax expense|14,512,173.60|36,794,783.31|
|V. Net profit (Net loss is listed with|||
||159,042,874.82|160,996,928.28|
|―-‖)|||
|Net profit attributable to|||
||158,369,766.68|159,106,275.83|
|owner’s of parent company|||
|Minority shareholders’ gains and|||
||673,108.14|1,890,652.45|
|losses|||
|VI. Net after-tax of other|||
||-506,008.36|986,062.81|
|comprehensive income|||
|Net after-tax of other|||
|comprehensive income attributable|-379,924.38|591,637.68|
|to owners of parent 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|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|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|-379,924.38|591,637.68|
|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|||
|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|-379,924.38|591,637.68|
|financial statements|||
|6. Other|||
|Net after-tax of other|||
|comprehensive income attributable|-126,083.98|394,425.13|
|to minority shareholders|||
|VII. Total comprehensive income|158,536,866.46|161,982,991.09|
|Total comprehensive income|||
|attributable to owners of parent|157,989,842.30|159,697,913.51|
|Company|||
|Total comprehensive income|||
|attributable to minority|547,024.16|2,285,077.58|
|shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.2074|0.2083|
|(ii) Diluted earnings per share|0.2074|0.2083|

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|3,723,644,751.94|3,591,569,260.21|
|Less: Operating cost|3,185,022,932.49|3,035,452,754.85|
|Operating tax and extras|21,593,618.43|19,339,352.66|
|Sales expenses|366,740,764.98|356,762,344.86|
|Administration|||
||92,172,562.14|93,218,907.10|
|expenses|||
|Financial expenses|-38,448,636.98|-33,830,360.73|
|Losses of devaluation of|||
||9,251,853.73|42,129,575.68|
|asset|||
|Add: Changing income of fair|||
||3,653,270.00||
|value(Loss is listed with ―-‖)|||
|Investment income (Loss|||
||-6,059,877.47|-95,120.70|
|is listed with ―-‖)|||
|Including: Investment|||
|income on affiliated company and|-6,577,685.69|-95,120.70|
|joint venture|||
|II. Operating profit (Loss is|||
||84,905,049.68|78,401,565.09|
|listed with ―-‖)|||
|Add: Non-operating income|5,794,628.12|16,903,310.48|
|Including: Disposal gains of|||
|||680,315.07|
|non-current asset|||
|Less: Non-operating expense|7,706,718.05|2,583,405.56|
|Including: Disposal loss of|||
||5,679,902.32|428,397.72|
|non-current asset|||
|III. Total Profit (Loss is listed|||
||82,992,959.75|92,721,470.01|
|with ―-‖)|||
|Less: Income tax expense|13,687,467.35|26,965,441.73|
|IV. Net profit (Net loss is listed|||
||69,305,492.40|65,756,028.28|
|with ―-‖)|||
|V. Net after-tax of other|||
|comprehensive income|||
|(I) Other comprehensive income|||
|items which will not be|||
|reclassified subsequently to profit|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|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|||
|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|69,305,492.40|65,756,028.28|
|VII. Earnings per share:|||
|(i) Basic earnings per share|0.0907|0.0861|
|(ii) Diluted earnings per share|0.0907|0.0861|

 Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 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|4,715,209,084.80|3,626,062,256.05|
|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 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|108,433,705.43|65,296,987.56|
|Other cash received|||
||12,191,213.81|8,804,431.58|
|concerning operating activities|||
|Subtotal of cash inflow arising|||
||4,835,834,004.04|3,700,163,675.19|
|from operating activities|||
|Cash paid for purchasing|3,401,696,411.29|2,964,018,786.37|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|commodities and receiving labor|||
|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|||
||560,891,490.11|478,549,438.13|
|workers|||
|Taxes paid|194,638,169.71|196,573,266.91|
|Other cash paid concerning|||
||335,196,945.90|333,430,909.54|
|operating activities|||
|Subtotal of cash outflow arising|||
||4,492,423,017.01|3,972,572,400.95|
|from operating activities|||
|Net cash flows arising from|||
||343,410,987.03|-272,408,725.76|
|operating activities|||
|II. Cash flows arising from|||
|investing activities:|||
|Cash received from|||
||100,500,000.00|606,076.88|
|recovering investment|||
|Cash received from|||
||998,140.22||
|investment income|||
|Net cash received from|||
|disposal of fixed, intangible and|4,188,632.00|41,112,847.21|
|other long-term assets|||
|Net cash received from|||
|disposal of subsidiaries and other|||
|units|||
|Other cash received|||
||53,250,686.61|40,975,072.99|
|concerning investing activities|||
|Subtotal of cash inflow from|||
||158,937,458.83|82,693,997.08|
|investing activities|||
|Cash paid for purchasing|53,371,320.52|46,469,287.11|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|fixed, intangible and other|||
|long-term assets|||
|Cash paid for investment|170,149,995.00|1,097,791.00|
|Net increase of mortgaged|||
|loans|||
|Net cash received from|||
|subsidiaries and other units|||
|obtained|||
|Other cash paid concerning|||
||427,715.77|1,854,670.00|
|investing activities|||
|Subtotal of cash outflow from|||
||223,949,031.29|49,421,748.11|
|investing activities|||
|Net cash flows arising from|||
||-65,011,572.46|33,272,248.97|
|investing activities|||
|III. Cash flows arising from|||
|financing activities|||
|Cash received from|||
|absorbing investment|||
|Including: Cash received|||
|from absorbing minority|||
|shareholders’ investment by|||
|subsidiaries|||
|Cash received from loans|899,641,581.00|1,059,138,910.42|
|Cash received from issuing|||
|bonds|||
|Other cash received|||
|concerning financing activities|||
|Subtotal of cash inflow from|||
||899,641,581.00|1,059,138,910.42|
|financing activities|||
|Cash paid for settling debts|1,022,938,903.44|332,556,137.54|
|Cash paid for dividend and|||
|profit distributing or interest|41,118,662.30|4,760,549.52|
|paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
||224,020.35|2,973,468.35|
|financing activities|||
|Subtotal of cash outflow from|1,064,281,586.09|340,290,155.41|

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|financing activities|||
|Net cash flows arising from|||
||-164,640,005.09|718,848,755.01|
|financing activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|9,712,867.85|-2,694,336.20|
|exchange rate|||
|V. Net increase of cash and cash|||
||123,472,277.33|477,017,942.02|
|equivalents|||
|Add: Balance of cash and|||
|cash equivalents at the period|2,645,879,017.88|2,238,884,137.50|
|-begin|||
|VI. Balance of cash and cash|||
||2,769,351,295.21|2,715,902,079.52|
|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|2,587,323,791.86|2,251,654,436.67|
|services|||
|Write-back of tax received|50,835,256.44|34,967,339.65|
|Other cash received concerning|||
||5,957,421.13|780,338.96|
|operating activities|||
|Subtotal of cash inflow arising|||
||2,644,116,469.43|2,287,402,115.28|
|from operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|2,301,440,737.17|2,158,154,167.87|
|service|||
|Cash paid to/for staff and workers|196,459,026.37|202,313,338.91|
|Taxes paid|62,883,474.12|58,947,750.93|
|Other cash paid concerning|||
||144,418,281.65|105,638,364.68|
|operating activities|||
|Subtotal of cash outflow arising|||
||2,705,201,519.31|2,525,053,622.39|
|from operating activities|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Net cash flows arising from|||
||-61,085,049.88|-237,651,507.11|
|operating activities|||
|II. Cash flows arising from|||
|investing activities:|||
|Cash received from|||
||100,000,000.00||
|recovering investment|||
|Cash received from|||
||517,808.22||
|investment income|||
|Net cash received from|||
|disposal of fixed, intangible and|969,312.00|814,238.81|
|other long-term assets|||
|Net cash received from|||
|disposal of subsidiaries and other|||
|units|||
|Other cash received|||
||38,798,411.37|38,216,769.95|
|concerning investing activities|||
|Subtotal of cash inflow from|||
||140,285,531.59|39,031,008.76|
|investing activities|||
|Cash paid for purchasing|||
|fixed, intangible and other|23,752,926.57|31,531,065.37|
|long-term assets|||
|Cash paid for investment|115,000,000.00|40,950,000.00|
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
||427,715.77|1,854,670.00|
|investing activities|||
|Subtotal of cash outflow from|||
||139,180,642.34|74,335,735.37|
|investing activities|||
|Net cash flows arising from|||
||1,104,889.25|-35,304,726.61|
|investing activities|||
|III. Cash flows arising from|||
|financing activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|811,087,023.59|904,950,576.65|
|Cash received from issuing bonds|||
|Other cash received|||
||186,369,209.14|35,933,925.12|
|concerning financing activities|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|Subtotal of cash inflow from|||
||997,456,232.73|940,884,501.77|
|financing activities|||
|Cash paid for settling debts|970,217,403.44|221,905,837.54|
|Cash paid for dividend and|||
|profit distributing or interest|39,915,654.04|3,261,327.22|
|paying|||
|Other cash paid concerning|||
||96,136,206.56|3,759,390.71|
|financing activities|||
|Subtotal of cash outflow from|||
||1,106,269,264.04|228,926,555.47|
|financing activities|||
|Net cash flows arising from|||
||-108,813,031.31|711,957,946.30|
|financing activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|6,994,571.70|-4,144,705.53|
|exchange rate|||
|V. Net increase of cash and cash|||
||-161,798,620.24|434,857,007.05|
|equivalents|||
|Add: Balance of cash and|||
|cash equivalents at the period|2,390,446,316.58|1,996,577,625.49|
|-begin|||
|VI. Balance of cash and cash|||
||2,228,647,696.34|2,431,434,632.54|
|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
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
7. Statement of Changes inOwners’ Equity (Consolidated)
This Period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||This Period|||||||||||||
||Owners’ equity attributable to parent company|||||||||||||
|||Other||||||||||||
|Item||||||||||Provision||||
|||equity instrument||||Less:|Other|||||Minority|Total owners’|
|||||||||Reasonable||of||||
||Share capital||Perpetual||Capital reserve|Inventory|comprehensive||Surplus reserve||Retained profit|interests|equity|
|||Preferred|capital|Other||shares|income|reserve||general||||
|||stock||||||||risk||||
||||securities|||||||||||
|I. Balance at||||||||||||||
|the end of the|763,739,205.00||||1,466,959,939.03||-3,262,898.99||359,857,106.14||835,453,313.49|15,634,189.83|3,438,380,854.50|
|last year||||||||||||||
|Add: Changes||||||||||||||
|of accounting||||||||||||||
|policy||||||||||||||
|Error||||||||||||||
|correction of||||||||||||||
|the last period||||||||||||||
|Enterprise||||||||||||||
|combine||||||||||||||
|under the||||||||||||||
|same control||||||||||||||
|Other||||||||||||||
|II. Balance at||||||||||||||
|the beginning|763,739,205.00||||1,466,959,939.03||-3,262,898.99||359,857,106.14||835,453,313.49|15,634,189.83|3,438,380,854.50|
|of this year||||||||||||||
|III. Increase/||||||||||||||
|Decrease in||||||||||||||
||||||-7,958,934.41||-379,924.38||||112,545,414.38|8,355,756.12|112,562,311.71|
|this year||||||||||||||
|(Decrease is||||||||||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|listed with ―-‖)||||||
|(i) Total||||||
|comprehensive||-379,924.38|158,369,766.68|547,024.16|158,536,866.46|
|income||||||
|(ii) Owners’||||||
|devoted and||||||
||-7,958,934.41|||7,808,731.96|-150,202.45|
|decreased||||||
|capital||||||
|1.Common||||||
|shares invested||||||
|by||||||
|shareholders||||||
|2. Capital||||||
|invested by||||||
|holders of||||||
|other equity||||||
|instruments||||||
|3. Amount||||||
|reckoned into||||||
|owners equity||||||
|with||||||
|share-based||||||
|payment||||||
|4. Other|-7,958,934.41|||7,808,731.96|-150,202.45|
|(III) Profit||||||
||||-45,824,352.30||-45,824,352.30|
|distribution||||||
|1. Withdrawal||||||
|of surplus||||||
|reserves||||||
|2. Withdrawal||||||
|of general risk||||||
|provisions||||||
|3. Distribution||||||
||||-45,824,352.30||-45,824,352.30|
|for owners (or||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||
|-|-|-|-|-|-|-|-|
|shareholders)||||||||
|4. Other||||||||
|(IV) Carrying||||||||
|forward||||||||
|internal||||||||
|owners’ equity||||||||
|1. Capital||||||||
|reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|2. Surplus||||||||
|reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|3. Remedying||||||||
|loss with||||||||
|surplus reserve||||||||
|4. Other||||||||
|(V)||||||||
|Reasonable||||||||
|reserve||||||||
|1. Withdrawal||||||||
|in the report||||||||
|period||||||||
|2. Usage in the||||||||
|report period||||||||
|(VI)Others||||||||
|IV. Balance at|||||||3,550,943,166.21|
|the end of the|763,739,205.00|1,459,001,004.62|-3,642,823.37|359,857,106.14|947,998,727.87|23,989,945.95||
|report period||||||||

Last Period
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Last Period|||||||||||||
||Owners’ equity attributable to the parent Company|||||||||||||
|||Other||||||||||||
|Item||||||||||Provision||||
|||equity instrument||||Less:|Other|||||Minority|Total owners’|
|||||||||Reasonable||of||||
||Share capital||Perpetual||Capital reserve|Inventory|comprehensive||Surplus reserve||Retained profit|interests|equity|
|||Preferred|capital|Other||shares|income|reserve||general||||
|||stock||||||||risk||||
||||securities|||||||||||
|I. Balance at||||||||||||||
|the end of the|763,739,205.00||||1,478,904,455.90||-1,939,397.56||337,902,735.75||608,723,517.81|20,399,491.82|3,207,730,008.72|
|last year||||||||||||||
|Add: Changes||||||||||||||
|of accounting||||||||||||||
|policy||||||||||||||
|Error||||||||||||||
|correction of||||||||||||||
|the last period||||||||||||||
|Enterprise||||||||||||||
|combine under||||||||||||||
|the same||||||||||||||
|control||||||||||||||
|Other||||||||||||||
|II. Balance at||||||||||||||
|the beginning|763,739,205.00||||1,478,904,455.90||-1,939,397.56||337,902,735.75||608,723,517.81|20,399,491.82|3,207,730,008.72|
|of this year||||||||||||||
|III. Increase/||||||||||||||
|Decrease in||||||||||||||
|this year|||||-11,944,516.87||-1,323,501.43||21,954,370.39||226,729,795.68|-4,765,301.99|230,650,845.78|
|(Decrease is||||||||||||||
|listed with ―-‖)||||||||||||||
|(i) Total||||||||||||||
|comprehensive|||||||-1,323,501.43||||294,508,518.37|-13,859,467.55|279,325,549.39|
|income||||||||||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|(ii) Owners’||||||
|devoted and||||||
||-11,944,516.87|||7,308,772.91|-4,635,743.96|
|decreased||||||
|capital||||||
|1.Common||||||
|shares||||||
|||||7,308,772.91|7,308,772.91|
|invested by||||||
|shareholders||||||
|2. Capital||||||
|invested by||||||
|holders of||||||
|other equity||||||
|instruments||||||
|3. Amount||||||
|reckoned into||||||
|owners equity||||||
|with||||||
|share-based||||||
|payment||||||
|4 Other|-11,944,516.87||||-11,944,516.87|
|(III) Profit||||||
|||21,954,370.39|-67,778,722.69|1,785,392.65|-44,038,959.65|
|distribution||||||
|1. Withdrawal||||||
|of surplus||21,954,370.39|-21,954,370.39|||
|reserves||||||
|2. Withdrawal||||||
|of general risk||||||
|provisions||||||
|3. Distribution||||||
|for owners (or|||-45,824,352.30|1,785,392.65|-44,038,959.65|
|shareholders)||||||
|4. Other||||||
|(IV) Carrying||||||
|forward||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||||
|-|-|-|-|-|-|-|-|
|internal||||||||
|owners’ equity||||||||
|1. Capital||||||||
|reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|2. Surplus||||||||
|reserves||||||||
|conversed to||||||||
|capital (share||||||||
|capital)||||||||
|3. Remedying||||||||
|loss with||||||||
|surplus reserve||||||||
|4. Other||||||||
|(V)||||||||
|Reasonable||||||||
|reserve||||||||
|1. Withdrawal||||||||
|in the report||||||||
|period||||||||
|2. Usage in the||||||||
|report period||||||||
|(VI)Others||||||||
|IV. Balance at||||||||
|the end of the|763,739,205.00|1,466,959,939.03|-3,262,898.99|359,857,106.14|835,453,313.49|15,634,189.83|3,438,380,854.50|
|report period||||||||

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
8. Statement of Changes inOwners’ Equity (Parent Company)
This Period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||This Period|||||||||||
|||Other||||||||||
|||equity instrument||||Less:|Other|||||
|Item||||||||Reasonable|||Total owners’|
||Share capital||Perpetual||Capital reserve|Inventory|comprehensive||Surplus reserve|Retained profit||
|||Preferred||||||reserve|||equity|
||||capital|Other||shares|income|||||
|||stock||||||||||
||||securities|||||||||
|I. Balance at the||||||||||||
|end of the last|763,739,205.00||||1,497,987,059.46||||359,638,940.46|767,437,070.86|3,388,802,275.78|
|year||||||||||||
|Add: Changes of||||||||||||
|accounting policy||||||||||||
|Error correction||||||||||||
|of the last period||||||||||||
|Other||||||||||||
|II. Balance at the||||||||||||
|beginning of this|763,739,205.00||||1,497,987,059.46||||359,638,940.46|767,437,070.86|3,388,802,275.78|
|year||||||||||||
|III. Increase/||||||||||||
|Decrease in this||||||||||||
|||||||||||23,481,140.10|23,481,140.10|
|year (Decrease is||||||||||||
|listed with ―-‖)||||||||||||
|(i) Total||||||||||||
|comprehensive||||||||||69,305,492.40|69,305,492.40|
|income||||||||||||
|(ii) Owners’||||||||||||
|devoted and||||||||||||
|decreased capital||||||||||||
|1.Common||||||||||||
|shares invested||||||||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||
|-|-|-|
|by shareholders|||
|2. Capital|||
|invested by|||
|holders of other|||
|equity|||
|instruments|||
|3. Amount|||
|reckoned into|||
|owners equity|||
|with share-based|||
|payment|||
|4. Other|||
|(III) Profit|||
||-45,824,352.30|-45,824,352.30|
|distribution|||
|1. Withdrawal of|||
|surplus reserves|||
|2. Distribution|||
|for owners (or|-45,824,352.30|-45,824,352.30|
|shareholders)|||
|3. Other|||
|(IV) Carrying|||
|forward internal|||
|owners’ equity|||
|1. Capital|||
|reserves|||
|conversed to|||
|capital (share|||
|capital)|||
|2. Surplus|||
|reserves|||
|conversed to|||
|capital (share|||
|capital)|||
|3. Remedying|||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|loss with surplus||||||
|reserve||||||
|4. Other||||||
|(V) Reasonable||||||
|reserve||||||
|1. Withdrawal in||||||
|the report period||||||
|2. Usage in the||||||
|report period||||||
|(VI)Others||||||
|IV. Balance at the|||||3,412,283,415.88|
|end of the report|763,739,205.00|1,497,987,059.46|359,638,940.46|790,918,210.96||
|period||||||

Last period
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Last period|||||||||||
|||Other||||||||||
|||equity instrument||||Less:|Other|||||
|Item||||||||Reasonable|||Total owners’|
||Share capital||Perpetual||Capital reserve|Inventory|comprehensive||Surplus reserve|Retained profit||
|||Preferred||||||reserve|||equity|
||||capital|Other||shares|income|||||
|||stock||||||||||
||||securities|||||||||
|I. Balance at the||||||||||||
|end of the last|763,739,205.00||||1,497,898,194.51||||337,684,570.07|615,672,089.65|3,214,994,059.23|
|year||||||||||||
|Add: Changes of||||||||||||
|accounting policy||||||||||||
|Error correction||||||||||||
|of the last period||||||||||||
|Other||||||||||||
|II. Balance at the||||||||||||
|beginning of this|763,739,205.00||||1,497,898,194.51||||337,684,570.07|615,672,089.65|3,214,994,059.23|
|year||||||||||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
||||||
|-|-|-|-|-|
|III. Increase/|||||
|Decrease in this|||||
||88,864.95|21,954,370.39|151,764,981.21|173,808,216.55|
|year (Decrease is|||||
|listed with ―-‖)|||||
|(i) Total|||||
|comprehensive|||219,543,703.90|219,543,703.90|
|income|||||
|(ii) Owners’|||||
|devoted and|88,864.95|||88,864.95|
|decreased capital|||||
|1.Common|||||
|shares invested|||||
|by shareholders|||||
|2. Capital|||||
|invested by|||||
|holders of other|||||
|equity|||||
|instruments|||||
|3. Amount|||||
|reckoned into|||||
|owners equity|||||
|with share-based|||||
|payment|||||
|4. Other|88,864.95|||88,864.95|
|(III) Profit|||||
|||21,954,370.39|-67,778,722.69|-45,824,352.30|
|distribution|||||
|1. Withdrawal of|||||
|||21,954,370.39|-21,954,370.39||
|surplus reserves|||||
|2. Distribution|||||
|for owners (or|||-45,824,352.30|-45,824,352.30|
|shareholders)|||||
|3. Other|||||
|(IV) Carrying|||||
|forward internal|||||

HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015
|||||||
|-|-|-|-|-|-|
|owners’ equity||||||
|1. Capital||||||
|reserves||||||
|conversed to||||||
|capital (share||||||
|capital)||||||
|2. Surplus||||||
|reserves||||||
|conversed to||||||
|capital (share||||||
|capital)||||||
|3. Remedying||||||
|loss with surplus||||||
|reserve||||||
|4. Other||||||
|(V) Reasonable||||||
|reserve||||||
|1. Withdrawal in||||||
|the report period||||||
|2. Usage in the||||||
|report period||||||
|(VI)Others||||||
|IV. Balance at the||||||
|end of the report|763,739,205.00|1,497,987,059.46|359,638,940.46|767,437,070.86|3,388,802,275.78|
|period||||||

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
I. Company profile
(I) Historical Origin
Hefei Meiling Co., Ltd (hereinafter referred to as―theCompany‖) is an incorporated Company established and reorganized by Hefei Meiling Refrigerator General Factory and approved on June
12th 1992 through[WanTiGaiHanZi (1992)No.039] issued by original Mechanism Reform Committee of Anhui Province. On August
30th
1993, through Anhui Provincial Government[Wanzhenmin (1993)No.166] and re-examination of China Securities Regulatory Commission, the Company made first public issue for 30 million A shares and the Company was listed on Oct.
18th,
1993 in Shenzhen Stock Exchange. On August 13th,
1996, the Company was approved to issue 100 million B shares to investors abroad through[ZhengWeiFa(1996)No.26] issued by China Securities Regulatory Commission. The Company went public in Shenzhen Stock Exchange on 28 August 1996.
State-owned Assets Supervision& Administration Commission of the State Council approved such transfers with Document Guozi Chanquan No.253 in 2007 Reply on Matters of Hefei Meiling Group Holdings Company Limited Transferring Partial State-owned Ownership, Hefei Meiling Group Holdings Company Limited (hereinafter abbreviated as Meiling Group) transferred its holding 37,852,683 shares in 82,852,683 state-owned shares of the Company to Sichuan Changhong Electronic Group Co., Ltd (hereinafter abbreviated as Changhong Group), other 45,000,000 shares to Sichuan Changhong Electric Co. Ltd (hereinafter abbreviated as Sichuan Changhong). On 15 August 2007, the above ownerships were transferred and Cleaning Corporation Limited.
On 27 August 2007, State-owned Assets Supervision& Administration Commission of Anhui Provincial Government replied with Document[WGZCQH(2007)No.309] Reply on―Related Matters of Share Merger Reform of Meiling Co.,Ltd.‖, agreed theCompany’s ownership split reform plan. The Company made consideration that non-tradable share holders deliver 1.5 shares to A share holders per 10 shares, and original Meiling Group made prepayment 3,360,329 shares for some non-tradable share holders as consideration for split reform plan.
On 29 May 2008, concerning 34,359,384 state-owned shares (including 3,360,329 shares paid for other non-tradable shareholders by original Meiling Group in share reform) held by original Meiling Group, the―Notice of Freely Transfer of Meiling Electrics Equity held by MeilingGroup‖[HGZCQ(2008) No.59] issued from State-owned Assets Supervision& Administration Commission of Hefei Municipal, agrees to transfer the above said shares to Hefei Xingtai Holding Group Co.,Ltd.(―Xingtai HoldingCo.,‖) for free. On 7 August 2008, the―Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by State-ownedshareholders‖[GZCQ(2007) No.750] issued by SASAC, agrees the above said transferring. On 29 October 2008, Changhong Group Company signed Agreement on Equity Transfer of Hefei Meiling Co., Ltd with Sichuan Changhong, in which 32,078,846 tradable A-shares with conditional subscription of the Company (accounting for7.76% in total shares) held by Changhong Group Company. On 23 December 2008,―Reply of Transfer Freely of Part of the Shares of Hefei Meiling Co., Ltd. held by
State-ownedshareholders‖[GZCQ(2008) No.1412] issued by SASAC agrees the above said share
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
transferring.
On 24 December 2010, being deliberated and approved in
32nd
Meeting of
6th
Session of the Board and 2nd
ExtraordinaryShareholders’ General Meeting of 2010 as well as approval of document[ZJXP(2010) No.1715] from CSRC, totally 116,731,500 RMB ordinary shares (A stock) were offering privately to target investors with issue price of RMB 10.28/share. Capital collecting amounting to RMB 1,199,999,820 after issuing expenses RMB 22,045,500 deducted, net capital collected amounting to RMB 1,177,954,320, and paid-in capital(share capital) increased RMB 116,731,500 with capital reserve(share premium) RMB 1,061,106,088.5 increased. The increasing capital has been verified by Capital Verification Report No.:［XYZH2010CDA6021］issued from Shinwing CPA Co., Ltd.
On 20 June 2011, the general meeting of the Company considered and approved the 2010 profit distribution plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares held by shareholders to all shareholders, based on the total share capital of 530,374,449 shares as of 31 December 2010. The total share capital of the Company upon profit distribution increased to 636,449,338 shares. The capital increase was verified by Anhui Huashen Zhengda Accounting Firm with the verification report WHSZDKYZ(2011)No.141.
On 26 June 2012, the general meeting of the Company considered and approved the 2011 profit distribution and capitalization of capital reserve plan, namely to distribute cash dividends of RMB0.5 (tax included) plus two shares for every ten shares to all shareholders capitalized from capital reserve, based on the total share capital of 636,449,338 shares as of 31 December 2011. The total share capital of the Company upon implementation of capitalization of capital reserve increased to 763,739,205 shares from 636,449,338 shares, and was verified by Anhui Anlian Xinda Accounting Firm with the verification report WALXDYZ(2012)No.093.
Ended as 30 June 2015, total share capital of the Company amounting to 763,739,205shares with ordinary shares in full. Among which, 600,875,205 shares of A-share accounting78.68% in total shares while B-share with 162,864,000 shares accounting21.32% in total shares. Detail share capital as:
||||
|-|-|-|
||Quantity|Proportion|
|10,658,356.00|||
|-|||
|915,987.00|||
|9,077,875.00|||
|6,714,683.00|||
|2,363,192.00|||
|664,494.00|||
|753,080,849.00|||
|590,881,343.00|||
|162,199,506.00|||

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|-|
|-|
|763,739,205.00|

 (2) Business nature and its business activities
The Company belongs to the manufacture of light industry, and engaged in the production and sale of refrigerator, freezer and air-conditioner. Registration No. of the Business License of Corporation Legal Person: 340000400001278; Address: No.2163, Lianhua Road, Economy and Technology Development Zone, Hefei City; Legal Representative: Liu Tibin; register capital(paid-in capital): RMB 763,739,205; type of company: limited liability company(joint venture and listed of Taiwan, Hong Kong and Macau) Business Scope: Manufacture of cooling apparatus, air-conditioner, washing machine, injection plastic machine of computer controlling, computer heater, plastic products, packaging products and decorations. Business of self-produced products, technology export andimport&export of theraw&auxilary materials, machinery equipment, instrument and technology; department sales and transportation
(3) Name of the parent Company and final actual controller of the Group
Ended as 30 June 2015, Sichuan Changhong and its accord actionist totally held24.88% shares of the Company and is the first largest shareholder; Changhong Group held23.20% shares of Sichuan Changhong accounting and is the first largest shareholder of Sichuan Changhong; State-owned Assets Supervision& Administration Commission of Mianyang Municipality held100% equities of Changhong Group and is the final actual controller of the Company.
II. Scope of consolidated financial statement
TheCompany’s consolidated financial statement have 47 subsidiaries and sub-subsidiaries including Sichuan Changhong Air Conditioner CO., Ltd, Zhongshan Changhong Appliances Company Limited and Zhongke Meiling Cryogenic Technology Co., Ltd. etc. During the period, Neijiang Meiling Appliance Marketing Co., Ltd excluded in the consolidated statement due to liquidation.
More detail can be seen in―VII. Changes of consolidatedscope‖ and―VIII. Rights and interest in othersubjects‖ in the Note
III. Basis for preparation of financial statement
1. Basis for preparation
The financial statements of the Company were prepared in accordance with the actual transactions and proceedings, and relevant regulation of Accounting Standards for Enterprise released by the Ministry of Finance, and was on the basis of sustainable operation, and the accounting policy and estimation stated in the―IV. Significant Accounting Policy and AccountingEstimation‖.
2. Continuous operation
The Company recently has a history of profitability operation and has financial resources supporting,
and prepared the financial statement on basis of going concern
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
IV. Significant Accounting Policy, Accounting Estimation
1. Statement on observation of accounting standards for enterprise
The financial statement prepared by the Company applies with the requirements of Accounting Standard for Enterprise, and reflects the financial condition, operational achievements and cash flow of the Company effectively and completely.
2. Accounting period
The accounting period of the Company is the calendar date from 1 January to 31 December.
3. Standard currency for accounting
The Company takes RMB as the standard currency for accounting.
4. Accountant arrangement method of business combination under common control and not under common control
As acquirer, the Company measures the assets and liabilities acquired through business combination under common control at their carrying values as reflected in the consolidated financial statement of the ultimate controller as of the combination date. Capital reserve shall be adjusted in respect of any difference between carrying value of the net assets acquired and carrying value of the combination consideration paid. In case that capital reserve is insufficient to offset, the Company would adjust retained earnings.
Theacquiree’s net identifiable assets, liabilities or contingent liabilities acquired through business combination not under common control shall be measured at fair value as of the acquisition date. The cost of combination represents the fair value of the cash or non-cash assets paid, liabilities issued or committed and equity securities issued by the Company as at the date of combination in consideration for acquiring the controlling power in the acquiree, together with the sum of any directly related expenses occurred during business combination(in case of such business combination as gradually realized through various transactions, the combination cost refers to the sum of each cost of respective separate transaction). Where the cost of the combination exceeds theacquirer’s interest in the fair value of theacquirer’s identifiable net assets acquired, the difference is recognized as goodwill; where the cost of combination is lower than theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the Company shall firstly make further review on the fair values of the net identifiable assets, liabilities or contingent liabilities acquired as well as the fair value of the non-cash assets portion of combination consideration or the equity securities issued by the Company. In case that the Company finds the cost of combination is still lower than theacquirer’s interest in the fair value of theacquiree’s identifiable net assets after such further review, the difference is recognized in non-operating income for the current period when combination occurs.
5. Measures on Preparation of Consolidated Financial Statements
The Company shall put all the subsidiaries controlled and main body structured into consolidated
financial statements.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Any difference arising from the inconformity of accounting year or accounting policies between the subsidiaries and the Company shall be adjusted in the consolidated financial statements.
All the material inter-company transactions, non-extraordinary items and unrealized profit within the combination scope are written-off when preparing consolidated financial statement.Owners’ equity of subsidiary not attributable to parent company and current net gains and losses, other comprehensive income and total comprehensive income attributable to minority shareholders are recognized as non-controlling interests, minority interests, other comprehensive income attributable to minority shareholders and total comprehensive income attributable to minority shareholders in consolidated financial statement respectively. As for subsidiary acquired through business combination under common control, its operating results and cash flow will be included in consolidated financial statement since the beginning of the period when combination occurs. When preparing comparative consolidated financial statement, the relevant items in previousyear’s financial statement shall be adjusted as if the reporting entity formed upon combination has been existing since the ultimate controller commenced relevant control.
As for equity interests of the investee under common control acquired through various transactions which eventually formed business combination, the Company shall supplement disclosure of the accounting treatment in consolidated financial statement in the reporting period when controlling power is obtained. For example, as for equity interests of the investee under common control acquired through various transactions which eventually formed business combination, adjustments shall be made as if the current status had been existing when the ultimate controller commenced control in connection of preparing consolidated financial statement; in connection with preparing comparative statement, the Company shall consolidate the relevant assets and liabilities of the acquiree into theCompany’s comparative consolidated financial statement to the extent not earlier than the timing when the Company and the acquiree are all under control of the ultimate controller, and the net assets increased due to combination shall be used to adjust relevant items underowners’ equity in comparative statement. In order to prevent double computation of the value of theacquiree’s net assets, the relevant profits and losses, other comprehensive income and change of other net assets recognized during the period from the date when the Company acquires original equity interests and the date when the Company and the acquiree are all under ultimate control of the same party (whichever is later) to the date of combination in respect of the long-term equity investment held by the Company before satisfaction of combination shall be utilized to offset the beginning retained earnings and current gains and losses in the period as the comparative financial statement involves, respectively.
As for subsidiary acquired through business combination not under common control, its operating results and cash flow will be included in consolidated financial statement since the Company obtains controlling power. When preparing consolidated financial statement, the Company shall adjust thesubsidiary’s financial statement based on the fair value of the various identifiable assets, liabilities or contingent liabilities recognized as of the acquisition date.
As for equity interests of the investee not under common control acquired through various transactions which eventually formed business combination, the Company shall supplement disclosure of the accounting
treatment in consolidated financial statement in the reporting period when controlling power is obtained. For
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
example, as for equity interests of the investee not under common control acquired through various transactions which eventually formed business combination, when preparing consolidated financial statement, the Company would re-measure the equity interests held in the acquiree before acquisition date at their fair value as of the acquisition date, and any difference between the fair value and carrying value is included in current investment income. in case that the equity interests in acquiree held by the Company before the relevant acquisition date involves other comprehensive income at equity method and change of otherowners’ equity (other than net gains and losses, other comprehensive income and profit distribution), then the equity interests would transfer to investment gains and losses for the period which the acquisition date falls upon. The other comprehensive income arising from change of the net liabilities or net assets under established benefit scheme asacquiree’s re-measured such scheme is excluded.
The transaction with non-controlling interest to dispose long-term equity investment in a subsidiary without losing control rights over the subsidiary, the difference between the proceeds from disposal of interests and the decrease of the shared net assets of the subsidiary is adjusted to capital premium (share premium). In case capital reserve is not sufficient to offset the difference, retained earnings will be adjusted. As for disposal of part equity investment which leads to losing control over the investee, the Company would re-measure the remaining equity interests at their fair value as of the date when the Company loses control over the investee when preparing consolidated financial statement. The sum of consideration received from disposal of equity interest and fair value of the remaining equity interest, less the net assets of the original subsidiary attributable to the Company calculated based on the original shareholding proportion since the acquisition date or the date then consolidation commences, is included in investment gains and losses for the period when control is lost, meanwhile to offset goodwill. Other comprehensive income related to equity interest investment in original subsidiaries is transferred into current investment gains and losses upon lost of control.
If the disposal of the equity investment of a subsidiary is realized through multiple transactions until loss of control and is a package deal, the accounting treatment of these transactions should be dealt with as one transaction of disposal of the subsidiary until loss of control. However, before the Company loses total control of the subsidiary, the differences between the actual disposal price and the share of the net assets of the subsidiary disposed of in every transaction should be recognized as other comprehensive income in the consolidated financial statements, and transferred to profit or loss when losing control. 6. Accounting treatment for joint venture arrangement and joint controlled entity
The joint venture arrangement of the Company consists of joint controlled entity and joint venture. As for jointly controlled entity, the Company determines the assets held and liabilities assumed separately as a party to the jointly controlled entity, recognizes such assets and liabilities according to its proportion, and recognizes relevant income and expense separately under relevant agreement or according to its proportion. As for asset transaction relating to purchase and sales with the jointly controlled entity which does not constitute business activity, part of the gains and losses arising from such transaction attributable to other participators of the jointly controlled entity is only recognized.
7. Cash and cash equivalents
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Cash in the cash flow statement comprises theGroup’s cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, including but not limited to the followings which meet the aforesaid conditions: debt investment matured within three months upon the acquisition date, bank time deposit which can be early withdrew by serving a notice and transferrable deposit receipt, etc. for time deposit which can not be used for payment at any time, it would be note recognized as cash; while if can be used for such purpose, it would be recognized as cash. Guarantee deposit over three months in other monetary capital shall not be recognized as cash equivalents, and those less than three months are recognized as cash equivalents.
8. Foreign currency business and foreign currency financial statement conversion
(1) Foreign currency business
As for the foreign currency business, the Company converts the foreign currency amount into RMB amount pursuant to the spot exchange rate as of the business day. As at the balance sheet date, monetary items expressed by foreign currency are converted into RMB pursuant to the spot exchange rate as of the balance sheet date. The conversion difference occurred is recorded into prevailing gains and losses, other than the disclosure which is made according to capitalization rules for the exchange difference occurred from the special foreign currency borrowings borrowed for constructing and producing the assets satisfying condition of capitalization. As for the foreign currency non-monetary items measured by fair value, the amount is then converted into RMB according to the spot exchange rate as of the confirmation day for fair value. And the conversion difference occurred during the procedure is recorded into prevailing gains and losses directly as change of fair value. As for the foreign currency non-monetary items measured by historical cost, conversion is made with the spot exchange rate as of the business day, with no change in RMB amount.
(2) Conversion of foreign currency financial statement
Spot exchange rate as of the balance sheet date is adopted for conversion of assets and liabilities in foreign currency balance sheet; as for the items in statement ofowners’ equity except for―Undistributedprofit‖, conversion is made pursuant to the spot exchange rate of business day; income and expense items in income statement then are also converted pursuant to the spot exchange rate of transaction day. Difference arising from the aforementioned conversions shall be listed separately in items ofowners’ equity. Spot exchange rate as of the occurrence date of cash flow is adopted for conversion of foreign currency cash flow. The amount of cash affected by exchange rate movement shall be listed separately in cash flow statement. 9. Financial assets and financial liabilities
(1) Financial assets
1) Classification of financial assets
In consideration of investment targets and economic essence, the Company groups the financial assets
owned by it as four categories, namely financial assets measured by fair value and whose movement is
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
recorded into prevailing gains and losses, held-to-maturity investment, loans and accounts receivables, as well as financial assets available-for-sale.
Financial assets measured by fair value and whose movement is recorded into prevailing gains and losses represent the financial assets which are held mainly for disposal in a short time and listed as tradable financial assets in the balance sheet.
Held-to-maturity investment represents the non-derivative financial assets which has fixed maturity day, fixed or available-for-confirmation recovered amount and for which the management has definite intention and ability to hold till maturity.
Loans and accounts receivables represent the non-derivative financial assets which have no quotation in an active market and fixed or available-for-confirmation recovered amount.
Financial assets available-for-sale including the non-derivative financial assets available-for-sale and the financial assets which have not been grouped as others at the initial confirmation
2) Recognition and measurement for financial assts
Financial assets, while become party of the contract of financial instrument in the Company, recognized in balance sheet by fair value. For the financial assets which are measured by fair value and whose fair value change is recorded into prevailing gains and losses, the relevant transaction expense arising from acquisition is recorded into prevailing gains and losses directly, while the relevant transaction expense of other financial assets is recorded into initial recognition amount.
Financial assets which are measured by fair value and whose fair value change is recorded into prevailing gains and losses, together with financial assets available-for-sale, would have follow-up measurement according to fair value; effective interest method is adopted for loans and accounts receivables and held-to-maturity investment which are shown in amortized cost.
Fair value change of financial assets which are measured by fair value and whose fair value change is recorded into prevailing gains and losses is recorded into gains and losses of fair value change; interests or cash dividend acquired from holding assets are recognized as investment income; when disposing such assets, the difference between their fair value and initial accounting amount is recognized as investment gains and losses. Meanwhile, gains and losses of fair value shall be adjusted.
Except impairment losses and exchange gains/loss from financial assets with foreign currency, variation of the fair value for financial assets available for sale should reckon intoshareholders’ equity. The variation of fair value accumulative reckon into equity previously should transfer into current gains/losses while recognition of this financial asset terminated. For the interest during period of holding for instrument investment of liability available for sale based on real interest rate, and cash dividend related with instrument investment of equity available for sale that announced by invested enterprises should reckon into current gains/losses as investment incomes.
3) Impairment of financial assets
Except for the financial assets which are measured by fair value and whose fair value change is recorded
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
into prevailing gains and losses, the Company will make check in the carrying value of other financial assets as at the balance sheet date. If there is objective evidence proving impairment of certain financial assets, the Company then makes provision for impairment.
When the financial assets calculated by amortized cost decrease in value, count and draw the provision for impairment according to the balance between present value and book value of predicted future cash flows (Excluding future credit losses thathaven’t occurred yet.). If there is any objective evidence to indicate that the financial assets has recovered and is objectively connected with matters occurred after confirming the losses, the formerly confirmed impairment losses will be reversed and reckoned in current profits and losses. When the fair value of financial assets available for sale goes down substantially or non- transiently, the accumulating losses previously and directly reckoned in shareholder's equity and formed due to shrinkage of fair value will be transferred and reckoned in impairment losses. As for the debt instrument investment available for sale with confirmed impairment losses, if its fair value rises after and it is objectively connected with matters occurred after confirming the primary impairment losses, the formerly confirmed impairment losses will be reversed and reckoned in current profits and losses. And the debt instrument investment available for sale with confirmed impairment losses shall be directly reckoned in stockholder's equity if its fair value rises after.
4) Transfer of financial assets
The financial assets meet one of following requirements will be terminated recognition:① The contract rights of collecting cash flow of the financial assets is terminated;②The financial assets has already been transferred, and the Company has transferred almost all risks and remunerations of financial assets ownership to the transferee;③The financial assets has been transferred, even though the Company has neither transferred nor kept almost all risks and remunerations of financial assets ownership, the Company has given up controlling the financial assets.
If the enterprise has neither transferred or kept almost all risks and remunerations of financial assets ownership, nor given up controlling the financial assets, then confirm the relevant financial assets according to how it continues to involve into the transferred financial assets and confirm the relevant liabilities accordingly. The degree of keeping involving into the transferred financial assets refers to the risk level with which the fluctuation of this financial asset value makes the enterprise face.
If the entire transfer of financial assets satisfies the demand for derecognition, reckon the balance between the book value of the transferred financial assets and the sum of consideration received from transfer and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income in the current profits and losses.
If part transfer of financial assets satisfies the demand for derecognition, apportion the integral book value of the transferred financial assets between the derecognized parts and the parts not yet derecognized according to each relative fair value, and reckon the balance between the sum of consideration received from transfer and fluctuation accumulated amount of fair value formerly reckoned in other consolidated income
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
that should be apportioned to the derecognized parts and the apportioned aforementioned carrying amounts in the current profits and losses.
(2) Financial liabilities
When making the initial recognition for financial liabilities, the Company classifies the financial liabilities into ones which are measured by fair value and whose change is recorded into prevailing gains and losses, and other financial liabilities.
Financial liabilities which are measured by fair value and whose change is recorded into prevailing gains and losses include tradable financial liabilities and financial liabilities which are measured by fair value and whose change is recorded into prevailing gains and losses at the initial recognition day. Follow-up measurements are made by fair value. Recorded into prevailing gains and losses are the gains or losses formed through fair value change and dividend and interest expenditure regarding to the financial liabilities. As for other financial liabilities, effective interest rate method is adopted and follow-up measurement is made according to amortized cost.
1- Method for recognition of fair value of financial assets and liabilities
For those financial instruments existing in active markets, market quotation in the active market is used to confirm their fair values. In active market, the Company takes the present bid price of already-held financial assets or plan-to-undertake financial liabilities as the fair values of relevant assets and liabilities; the Company takes the present offer price of plan-to-buy financial assets and–already-undertaken liabilities as the fair values of relevant assets and liabilities. In the situation that there are no present bid and offer price for financial assets and liabilities, while there is no material change in economic environment after the latest business day, then fair value of the financial assets and liabilities is to confirm pursuant to the latest business market quotation.
Fair value of the financial instruments which have no active market is confirmed by adoption of estimation technology. Estimation technology includes reference to the price applied by parties which know well situation and are willing to make deals in the latest market business, reference to the current fair value of other financial assets which are the same in principle, reference to discounted cash flow method and option pricing model.
10. Bad debt provision for accounts receivable
Allowance method is adopted for the bad debt losses which are likely to happen. And conducting impairment test independently or by combination at period-end, withdrawn bad debt provision and then recorded into current gains and losses. As for the accounts receivable which are not able to call back through definite evidence, they shall be treated as bad debt losses after approval of the Group according to regulated procedures to offset withdrawn bad debt provision.
The following situation as standards for confirmation of bad debt losses of accounts receivable: revoke, bankruptcy, insolvency, serious insufficiency of cash flow of its debit units, or the debit units have to stop
production due to serious natural disaster and are not able to settle the debts or in predicted time, or other
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
definite evidence showing that the debt is not available to call back or the possibility of calling back is tiny. Account receivables were divided as follow categories at period-end, which was performed impairment test in way of individual or group, and withdrawal bad debt provision:
(1) Account receivable with single significant amount:
Determine basis or If totally amount takes over80% of the total for over5% occupied, than5% of amount standards for single amount in total amounts recognized as single significant amount; if single significant totally amount takes less than80% of the total for over5% occupied, than lower amount recognition standards till qualified80% in total
Method of bad debt
provision accrual for Withdrawal bad debt provision according to difference between the current account receivable with value of future cash flow and book values; if there has no impairment been single major amount found in individual test, withdrawal bad debt provision while testing by group (2) Account receivable withdrawal bad debt provision based on combination:
Basis for combination recognized
Combination 1 Account receivable except combination 2
Employee reserve fund, foreign investment amount, contact with related party in consolidated statement Combination 2 of Changhong Group, export tax refund receivable, account receivable with L/C or insurance, government subsidy etc.
Methods on withdrawal of bad debt provision based on combination
Combination 1 Withdrawal bad debt provision by proportion in different age group
Combination 2 Risks are under control without bad debt provision accrual
In combination 1, withdrawal proportion of bad debt provision for account receivable based on age analysis:
||
|-|
|Withdrawal proportion of accountreceivable (%)|
|5|
|15|
|35|
|55|
|85|
|100|

(3) Account receivable with single minor amount but withdrawal single item bad debt provision:
Reasons for withdrawal
Account with minor amount but have significant inflow risk on predicted future single item bad debt
cash flow
provision
Withdrawal method for Impairment test on the current value of predicted future cash flow, bad debt bad debt provision provision withdrawal.
11. Inventories
Inventories of the Company principally include raw materials, stock goods; work in
process, self-made semi-finished product, materials consigned to precede, low-value
consumption goods, goods in transit, goods in process and mould etc.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Perpetual inventory system is applicable to inventories. For daily calculation, standard price is adopted for raw materials, low-value consumption goods and stock goods. Switch-back cost of the current month is adjusted by distribution price difference at the end of the month, the dispatched goods will share the cost differences of inventory while in settlement the business income; and low-value consumption goods is carried forward at once when being applied for use; the mould expenses will evenly deferred share based on balance at period-begin plus increase amount in this period divided by 12 months.
Inventory at period-end valued by the Lower-of-value between the cost and net realizable value. For those individual stock, suffering damage, totally or partly out of fashion or has lower sales price than cost, predicted recoverable parts in cost, and withdrawal provision of inventory depreciation single. For those raw materials, stock commodities and goods in transit, withdrawal provision of inventory depreciation by follow methods:
(1) Determined the net realizable value of raw materials on the higher amount between the final prices of estimated sale-price deducted cost (about to happen till products finished), estimated sales expense and relevant taxes, and the fair value of external disposal.
(2) Withdrawal obsolete provision for commodity stocks and goods in transit by the follow proportion:
(1) Refrigerator, freezer and washing machine
||
|-|
|Stock duration|
|Within 3 months|
|4-6 months|
|7-12 months|
|1-2 years|
|2-3 years|
|Over 3 years|

Qualified 40%
Grade-B 50%
Grade-C 60%
Unqualified
60%
Disposal
65%
Sample machine
30%
Special user type that exceed the order quantity
50%
(2) Air-conditioner
Location level Withdrawal proportion for obsolete
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
provision
Repair
50%
Awaiting repair
70%
Store return
70%
De-stocking
70%
Overstock
100%
The Company re-checks the above mentioned proportion at every end of the year. Calculated the net realizable value by difference between the estimated sale price less the estimated sales expense and relevant taxation; after comparison with the book value of commodity stocks and goods in transit, determined whether adjusted the proportion or not. Mould expense will amortize in installment in usual times. Once the use-life of mould being terminated, than transfer its remaining cost into gains/losses, and no withdrawal of obsolete provision at period-end.
12. Long-term equity investment
Long-term equity investment of the Company is mainly about investment in subsidiary, investment in associates and investment in joint-ventures.
For long-term equity investments acquired through business combination under common control, the initial investment cost shall be theacquirer’s share of the carrying amount of net assets of the acquiree as of the combination date as reflected in the consolidated financial statement of the ultimate controller. If the carrying amount of net assets of the acquiree as of the combination date is negative, the investment cost of long-term equity investment shall be zero. For long-term equity investment acquired through business combination not under common control, the initial investment cost shall be the combination cost.
Excluding the long-term equity investment acquired through business combination, there is also a king of long-term equity investment acquired through cash payment, for which the actual payment for the purchase shall be investment cost; If Long-term equity investments are acquired by issuing equity securities, fair value of issuing equity investment shall be investment cost; for Long-term equity investments which are invested by investors, the agreed price in investment contract or agreement shall be investment cost; and for long-term equity investment which is acquired through debt reorganization and non-monetary assets exchange, regulations of relevant accounting standards shall be referred to for confirming investment cost.
The Company adopts cost method for investment in subsidiaries, makes calculation for investments in joint-ventures and associates by equity method.
When calculated by cost method, long-term equity investment is priced according to its
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
investment cost, and cost of the investment is adjusted when making additional investment or writing off investment; When calculated by equity method, current investment gains and losses represent the proportion of the net gains and losses realized by the invested unit in current year attributable to or undertaken by the investor. When the Company is believed to enjoy proportion of net gains and losses of invested unit, gains and losses attributable to the Company according to its shareholding ratio is to computer out according to the accounting policy and accounting period of the Company, on the basis of the fair value of various recognizable assets of the invested unit as at the date of obtaining of the investment, after offset of gains and losses arising from internal transactions with associates and joint-ventures, and finally to make confirmation after adjustment of net profit of the invested unit. Confirmation on gains and losses from the long-term equity investment in associates and joint-ventures held by the Company prior to the first execution day, could only stand up with the precedent condition that debit balance of equity investment straightly amortized according to its original remaining term has already been deducted, if the aforementioned balance relating to the investment do exist. In case that investor loses joint control or significant influence over investee due to disposal of part equity interest investment, the remaining equity interest shall be calculated according to Enterprise Accounting Principles No.22-Recognition and Measurement of Financial Instrument. Difference between the fair value of the remaining equity interest as of the date when lose of joint control or significant influence and the carrying value is included in current gains and losses. Other comprehensive income recognized in respect of the original equity interest investment under equity method should be treated according to the same basis which the investee adopts to directly dispose the relevant assets or liabilities when ceasing adoption of equity method calculation; and also switches to cost method for calculating the long-term equity investments which entitles the Company to have conduct control over the invested units due to its additional investments; and switches to equity method for calculating the long-term equity investments which entitles the Company to conduct common control or significant influence, while no control over the invested units due to its additional investments, or the long-term equity investments which entitles the Company with no control over the invested units any longer while with common control or significant influence.
When disposing long-term equity investment, the balance between its carrying value and effective price for obtaining shall be recorded into current investment income. When disposing long-term equity investments which are calculated by equity method, the proportion originally recorded inowners’ equity shall be transferred to current investment income according to
relevant ratio, except for that other movements ofowners’ equity excluding net gains and
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
losses of the invested units shall be recorded intoowners’ equity.
13. Investment real estate
The investment real estate of the Company includes leased houses and buildings, and is accounted value by its cost. Cost of purchased-in investment real estate consists of payment for purchase, relevant taxes and other expenditure which is attributable to the assets directly; while cost of self-built investment real estate is formed with all necessary expenditures occurred before construction completion of the assets arriving at the estimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation is provided with average service life method pursuant to the predicted service life and net rate of salvage value. The predicted service life and net rate of salvage value and annual depreciation are listed as follows:
|||
|-|-|
|Depreciation term|Predicted rate of salvagevalue|
|30-40 years|4%-5%|

 When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or additional capital, the fixed assets or intangible assets shall switch to investment real estate commencing from the date of such turning. In situation of switch, the carrying value before the switch shall be deemed as the credit value after the switch. When investment is disposed, or out of utilization forever and no economic benefit would be predicted to obtain through the disposal, the Company shall terminate recognition of such investment real estate. The amount of income from disposal, transfer, discarding as scrap or damage of investment real estate after deducting theasset’ s carrying value and relevant taxation shall be written into current gains and losses.
14. Fixed assets
Fixed assets of the Company represent the tangible assets and assets package: held by the Company for purpose of producing commodities, providing labor service, leasing or operational management, service life exceeds one year, and unit price exceeds RMB 2,000. Including four categories of houses and buildings, machinery equipments, transportation equipments and other equipments
Their credit value is determined on the basis of the cost taken for obtaining them. Of
which, cost of purchased-in fixed assets include bidding price and import duty and relevant
taxes, and other expenditure which occurs before the fixed assets arrive at the state of predicted
utilization and which could be directly attributable to the assets; while cost of self-built fixed
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
asset is formed with all necessary expenditures occurred before construction completion of the assets arriving at the estimated utilization state; credit value of the fixed assets injected by investors is determined based on the agreed value of investment contracts or agreements, while as for the agreed value of investment contracts or agreements which is not fair, it shall take its fair value as credit value; and for fixed assets which are leased in through finance leasing, credit value is the lower of fair value of leased assets and present value of minimized leasing payment as at the commencing date of leasing.
Consequent expenditure related to fixed assets consists of expenditures for repair and update reform. For those meeting requirements for recognization of fixed assets, they would be accounted as fixed asset cost; and for the part which is replaced, recognization of its carrying value shall cease; for those not meeting requirements for recognization of fixed assets, they shall be accounted in current gains and losses as long as they occur. When fixed asset is disposed, or no economic benefit would be predicted to obtain through utilization or disposal of the asset, the Company shall terminate recognization of such fixed asset. The amount of income from disposal, transfer, discarding as scrap or damage of fixed asset after deducting theasset’ s carrying value and relevant taxation shall be written into current gains and losses.
The Company withdraws depreciation for all fixed assets except for those which have been fully depreciated while continuing to use. It adopts average service life method for withdrawing depreciation which is treated respectively as cost or current expense of relevant assets according to purpose of use. The depreciation term, predicted rate of salvage value and depreciation rate applied to fixed assets of the Company are as follows:
||||
|-|-|-|
|Type|Depreciation term|Predicted rate of salvagevalue|
|Houses and buildings|30-40 years|4%-5%|
|Machinery equipments|10-14 years|4%-5%|
|Transport equipment|5-12 years|4%-5%|
|Other equipments|8-12 years|4%-5%|

 The Company makes re-examination on predicted service life, predicted rate of salvage value and depreciation method at each year-end. Any change will be treated as accounting estimation change.
15. Construction in process
Construction in process is measured with effective cost. Self-operated constructions
projects are measured with direct materials, direct salaries and direct construction expense;
construction projects undertaken by external are measured with the engineering payment
payable; and engineering cost (income abatement) of equipment-installation projects is
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
confirmed with consideration of value of the equipments, installation fee, and expenditure arising from trial operation of the projects. Borrowing expense and exchange gains and losses which should be capitalized are also included in cost of construction in process.
16. Borrowing expense
Borrowing expenses include interest expense, amortization of discount or premium, auxiliary expenses and exchange difference due to borrowing in foreign currency. The borrowing expense which could be directly attributable to purchase or production of assets satisfying capitalization condition, starts capitalization when capital expenditure and borrowing expense occur and when necessary purchase or production conducted for promoting assets to reach the predicted available-for-use or available-for-sale state; and capitalization shall cease when purchased or produced assets satisfying capitalization condition have reached the predicted available-for-use or available-for-sale state. Other borrowing expense is recognized as expense during the occurrence period.
Capitalization shall be exercised for interest expense actually occurred from special borrowings in current period after deduction of the interest income arising from unutilized borrowing capital which is saved in banks or deduction of investment income obtained from temporary investment; For recognization of capitalized amount of common borrowing, it equals to the weighted average of the assets whose accumulated expense or capital disburse is more than common borrowing times capitalization rate of occupied common borrowing. Capitalization rate is determined according to weighted average interest rate of common borrowing.
Assets satisfying capitalization principle generally refer to fixed assets, investment real estate and inventories which can only arrive at predicted available-for-use and available-for-sale state after quite a long time (generally over one year) in purchase or production activities.
If abnormal interruption happens during purchase or production of assets satisfying capitalization principle and the interruption lasts over 3 months, the capitalization for the borrowing expense shall pause until the purchase or production restarts.
17. Intangible assets
The Company holds intangible assets including land use right, trademark, patent technology and non-patent technology. Intangible assets are measured according to the effective costs paid for obtaining the assets. For those intangible assets purchased in by the Company, their effective cost consist of actual payment and relevant other expenditure; for the intangible assets input by investors, effective cost is determined according to the value agreed
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
in investment contracts and agreements, while if the agreed value is not fair, then effective value is confirmed according to fair value.
Land use right is averagely amortized according to its transfer term commencing from the sate of transfer; trademark use-rights averagely amortized by 10 years; patent technology, non-patent technology and other intangible assets is averagely amortized according to the shortest of their predicted service life, beneficial term concluded by contract and effective term regulated by laws. Amortization amount is recorded in assets cost and current gains and losses relevant to beneficial objectives.
Re-examination on predicted service life and amortization method of the intangible assets which have limited service life shall be conducted at the end of each year. If changed, it would be treated as change of accounting estimation. Re-examination on predicted service life of intangible assets which have uncertain service life shall be conducted. For any evidence proving that service life of intangible assets is limited, then the service life shall be estimated and the Company shall make amortization within the predicted service life period.
18. Research and development
As for expenditure for research and development, the Company classifies it into expenditure on research phase and development phase, based on nature of the expenditure and that whether the final intangible assets formed by research& development is of great uncertainty. Expenditure arising during research should be recorded in current gains and losses upon occurrence; expenditure arising during development is confirmed as intangible assets when satisfying the following conditions:
(1) Completions of the intangible assets make it available for application or sell in technology;
(2) Equipped with plan to complete the intangible asset and apply or sell it;
(3) There is market for products produced with this intangible assets or the intangible asset itself;
(4) Have sufficient technology, financial resource and other resources to support development of the intangible assets, and have ability to apply or sell the assets;
(5) Expenditure attributable to development of the intangible assets could be reliable measured.
Expenditure arising during development not satisfying the above conditions shall be recorded in current gains and losses upon occurrence. Development expenditure which had been recorded in gains and losses in previous period would not be recognized as assets in later
period. Expenditure arising during development phase which has been starting capitalization is
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
listed in balance sheet as development expenditure, and transferred to intangible assets since the project reaches at predicted utilization state.
19. Impairment of non-financial long-term assets
As at each balance sheet date, the Company has inspection on long-term equity investment, fixed assets, construction in process and intangible assets with limited service life. When the following indications appear, assets may be impaired, and the Company would have impairment test. As for goodwill and intangible assets which have uncertain service life, no matter there is impairment or not, impairment test shall be conducted at the end of every year. If it is hard to make test on recoverable amount of single asset, test is expected to make on the basis of the assets group or assets group portfolio where such asset belongs to.
After impairment test, if the carrying value exceeds the recoverable amount of the asset, the balance is recognized as impairment loss. As long as impairment loss of the aforementioned assets is recognized, itcouldn’t be switched back in later accounting periods. Recoverable amount of assets refers to the higher of fair value of assets net disposal expense and present value of predicted cash flow of the asset.
Indications for impairment are as follows:
(1) Market value of asset drops a lot in current period, the drop scope is obviously greater than the predicted drop due to move-on of times or normal utilization;
(2) Economy, technology or law environment where enterprise operates or market where asset is located will have significant change in current or recent periods, which brings negative influence to enterprise;
(3) Market interest rate or returning rate of other market investments have risen in current period, which brings influence in calculating discount rate of present value of predicted future cash flow of assets, which leads to a great drop in recoverable amount of such assets;
(4) Evidence proving that asset is obsolete and out of time or its entity has been damaged; (5) Asset has been or will be keep aside, terminating utilization or disposed advance; (6) Internal report of enterprise shows that economic performance of asset has been or will be lower than prediction, such as that net cash flow created by asset or operation profit (or loss) realized by asset is greatly lower (or higher) than the predicted amount;
(7) Other indications showing possible impairment of assets
20. Goodwill
Goodwill represents balance between equity investment cost or business combination cost under no common control exceeding the attributable part or fair value of recognizable net assets of party invested or purchased (obtained through business combination) as of acquisition day or
purchase day.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Goodwill relating to subsidiaries is separately listed in consolidated financial statement. And goodwill relating to associates and joint-ventures is included in carrying value of long-term equity investment.
21. Long-term deferred expenses
Long-term deferred expenses of the Company refer to the expense which has been paid out while should be amortized from the current period and periods thereafter, with amortization term over 1 year (excluding 1 year). Such expense is averagely amortized during the beneficial period. If such long-term deferred expense could not bring benefit to following accounting periods, the unamortized value of the item shall be fully transferred to current gains and losses. 22. Staff remuneration
Employee benefits mainly include all kinds of remuneration incurred in exchange for services rendered by employees or compensation to the termination of employment relationship such as short-term wages, post-employment benefits, compensation for the termination of employment relationship and other long-term employee welfare.
Short-term remuneration includes: staff salary, bonus, allowances and subsidies, staff benefits, social insurances like medical insurance, work-related injury insurance and maternity insurance, housing fund, labor union funds and staff education funds, short-term paid absence of duty, short-term profit sharing scheme, non-monetary benefits as well as other short-term remuneration. During the accounting period when staff provides services, the short-term remuneration actually occurred is recognized as liabilities and shall be included in current gains and losses or related asset costs according to the beneficial items.
Retirement benefits mainly consist of basic pension insurance, unemployment insurance and early-retirement benefits, etc. retirement benefit scheme represents the agreement reached by the Company and its employees in respect of retirement benefits, or the rules or regulations established by the Company for providing retirement benefits to employees. In particular, defined contribution plan means a retirement benefit plan, pursuant to which, the Company makes fixed contribution to independent fund, upon which, it is not obliged to make further payment. Defined benefit plan refers to retirement benefit scheme other than defined contribution plan.
The early retirement policy for staff and workers of the Company is the compensation for encouraging staff and workers to accept the reduction voluntarily. The employees make applications voluntarily, the two parties sign the compensation agreement after approved by the Company and calculate the compensation amount according to the compensation standard passed by the staff representative conference, and the Company confirms it as dismiss welfare
and reckons it in current profits and losses. As the Company promises to adjust the treatment
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
for early retiring staff and workers with the increase of social basic cost of living allowances, the discount elements will not be considered for calculating the dismiss welfare.
23. Estimated liabilities
If the business in connection with such contingencies as a security involving a foreign party, commercial acceptance bill discount, pending litigation or arbitration, product quality assurance, etc. meets all of the following conditions, the Company will confirm the aforesaid as liabilities: the obligation is an existing obligation of the Company; performance of the obligation is likely to cause economic benefits to flow out of the enterprise; the amount of the obligation is reliably measurable.
24. Principle of recognition of revenue and measurement method
TheCompany’s sales revenue is mainly comprised of revenue from sale of goods, labor providing income and revenue from assignment of asset use rights. The principle of recognition of such revenue is as follows:
(1) Revenue from the sale of goods shall be recognized when the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow into the Company; and the associated costs incurred or to be incurred can be measured reliably. Air-conditioner OEM/ODM will recognize revenue while notes issued after commodity transfer to the shipping space that appointed by the client.
(2) The Company confirms the realization of service income when the gross income and total cost of labor service cab be unfailingly calculated, the economic benefits related to labor service are likely to flow into the Group, and the progress of labor service can be confirmed reliably. On balance sheet date, with regard to those with results provided for labor service transactions can be estimated reliably, confirm the relevant service income according to percentage of completion method and determine the percentage-of-completion method by the proportion of the occurred cost in the estimated total cost; as for those with results provided for labor service transactionscan’t be estimated reliably and with occurred labor cost predicted to be able to get compensation, confirm to provide service income according to labor cost amount occurred and capable of getting compensation, and carry over the occurred labor costs; for those with results provided for labor service transactionscan’t be estimated reliably and with occurred labor cost predicted to be not able to get compensation, reckon the occurred labor
cost in the current profits and losses, but not confirm to provide service income.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(3) The economy benefit of use-right of transfer assets probably wills inflow to the Company, if the income can be measure accountability, than use-right income of transfer assets recognized.
25. Government subsidies
Government subsidy at the Company be able to meet its attached conditions, and can be confirmed when received. Government grants for monetary assets, in accordance with the measurement of the amount actually received, according to a fixed quota for the allocation of the grant criteria, in accordance with the amount of accounts receivable measurement; government subsidies for non-monetary assets, in accordance with the fair value, fair value should not reliably achieved, in accordance with the notional amount (RMB 1.00) measurement.
Asset-related government grants recognized as deferred income, and average life of related assets included in the current profit and loss distribution. With the proceeds of the relevant government subsidies to compensate for the period after the relevant costs or losses recognized as deferred income and, while recognizing the associated costs included in current period profit and loss; for compensation related costs that have occurred or loss, directly gains and losses included in the current period.
26. Deferred Income Tax Assets and Deferred Income Tax Liabilities
A deferred tax asset and deferred tax liability shall be determined by a difference (temporary difference) between the carrying amount of an asset or liability and its tax base. The deferred tax asset shall be recognized for the carry forward of unused deductible losses that it is probable that future taxable profits will be available against which the deductible losses can be utilized. For temporary difference arising from initial recognition of goodwill, no corresponding deferred income tax liabilities will be recognized. For temporary difference arising from initial recognition of assets and liabilities occurred in the transaction related to non business combination which neither affect accounting profit nor assessable income (or deductable losses), no corresponding deferred income tax assets and deferred income tax liabilities will be recognized. As of the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the effective tax rate applicable to the period when recovery of assets or settlement of liabilities occur.
The Company recognizes deferred income tax assets to the extent of future assessable income tax which is likely to be obtained to offset deductable temporary difference, deductable losses and tax credits.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
27. Lease
The Company categorizes the lease into the financial lease and the operating lease.
The financial lease is the lease in which all risks and returns related to the ownership of assets are transferred in substance. The Company as a lease holder, on the date of lease, the financial lease is recognized as the fixed asset at lower cost of fair value of the rental asset and the NPV of minimum payment of leasing. The minimum payment of leasing is recognized as long-term payable and the difference is accounted into unrecognized financing expense.
The operating lease is the lease apart from the financial lease. The Company, as a lease holder, accounts the rents into current period by straight line method during the term of the lease. The Company, as a leaser, accounts the rental income into current period by straight line method during the term of the lease.
28. Income tax accounting
The Company accounted the income tax in a method of debit in balance sheet. The income tax expenses include income tax in the current year and deferred income tax. The income tax associated with the events and transactions directly included in theowners’ equity shall be included in theowners’ equity; and the deferred income tax derived from business combination shall be included in the carrying amount of goodwill, except for that above, the income tax expense shall be included in the profit or loss in the current period.
The income tax expense in the current year refers to the tax payable, which is calculated according to the tax laws on the events and transactions incurred in the current period. The deferred income tax refers to the difference between the carrying amount and the deferred tax assets and deferred tax liabilities at the year-end recognized in the method of debit in the balance sheet.
29. Segment information
Business segment was the major reporting form of the Company, which divided into 4 parts: air-conditioner, refrigerator and freezer, marketing and others. The transfer price among the segments will recognize based on the market price, common costs will allocated by income proportion between segments except for the parts that without reasonable allocation. 30. Explanation on significant accounting estimation
The management of the Company needs to apply estimation and assumption when preparing financial statement which will affect the application of accounting policy and amounts of assets, liabilities, income and expense. The actual condition may differ from the estimation. Constant evaluation is conducted by the management in respect of the key
assumption involved in the estimation and judgment of uncertainties. Effect resulting from
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
change of accounting estimation is recognized in the period the change occurs and future periods.
The following accounting estimation and key assumption may result in material adjustment to the book value of assets and liabilities in future period.
(1) Inventory impairment provision
The Company provides impairment provision according to the type of finished products and goods delivered under fixed proportion, and estimates the realizable net value of inventories by reference to the projected selling price of similar inventories less sales expenses and related taxes on a regular basis, so as to evaluate the rationality of the provision proportion. If the actual selling price or expense differs from the previous estimation, the management will make corresponding adjustment to the proportion. The estimation results based on existing experiences may differ from the latter actual results, which may result in adjustment to the book value of inventories in the balance sheet and affect over the gains and losses of the period when the estimation changes.
(2) Accounting estimation on long-term assets impairment provision
The Company makes impairment test on fixed assets such as buildings, machine and equipments which have impairment indication and long-term assets such as goodwill as at the balance sheet date. The recoverable amount of relevant assets and assets group shall be the present value of the projected future cash flow which shall be calculated with accounting estimation.
If the management amends the gross profit margin and discount rate adopted in calculation of future cash flow of assets and assets group and the amended gross profit margin is lower than the currently adopted one or the amended discount rate is higher than the currently adopted one, the Company needs to increase provision of impairment provision. If the actual gross profit margin is higher (or the discount rate is lower) than the estimation of management, the Company can not transfer back the long term assets impairment provision provided already. (3) Accounting estimation on realization of deferred income tax assets
Estimation on deferred income tax assets needs estimation on the taxable income and applicable tax rate for each future year. Realization of deferred income tax assets depends on whether a company is able to obtain sufficient taxable income in future. Change of future tax rate and switch back of temporary difference could affect the balance of income tax expense (gains) and deferred income tax. Change of the aforesaid estimation may result in material adjustment to deferred income tax.
(4) Usable term and residual value rate of fixed assets and intangible assets
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
The Company, at least at the end of each accounting year, reviews the projected usable life and residual value rate of fixed assets and intangible assets. The projected usable life and residual value rate are determined by the management based on the historical experiences of similar assets by reference to the estimation generally used by the same industry with consideration on projected technical upgrade. If material change occurs to previous estimation, the Company shall accordingly adjust the depreciation expenses and amortization expenses for future period.
(5) Projected liabilities arising from product quality guarantee
The Company commits to repair the major spare parts of refrigerators sold through go-to-countryside promotion activity for free for ten years. As to the maintenance expenses that may be increased arising from such commitment, the Company has provided projected liabilities.
Taking into account the various uncertainties during the ten years, the Company considers no discount factor of such projected liabilities. In stead, the Company reviews the parameters (probility, proportion, maintenance expense per single set) based on the actual occurrence of maintenance expenses as of each balance sheet date. If obvious change is found, the Company will adjust the projected liabilities according to the latest parameters so as to reflect the best estimation.
31. Other comprehensive income
Other comprehensive income represents various gains and losses not recognized in current gains and losses according to other accounting rules.
Other comprehensive income items shall be reported in the following two classes under other relevant accounting rules:
(1) Other comprehensive income items that can not be reclassified into gains and losses in future accounting periods, mainly including changes arising from re-measurement of net liabilities or net assets under defined benefit plan and interest ininvestee’s other comprehensive income which are measured under equity method and which can not be reclassified into gains and losses in future accounting periods;
(2) Other comprehensive income items that will be reclassified into gains and losses in future accounting periods upon satisfaction of required conditions, mainly including interest ininvestee’s other comprehensive income which are measured under equity method and which will be reclassified into gains and losses in future accounting periods upon satisfaction of required conditions, gains or losses arising from change of fair value of available-for-sale
financial assets, gains or losses arising from reclassification of held-to-maturity investment into
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
available-for-sale financial assets, gains or losses occurred by cash flow hedging instruments attributable to effective hedge, foreign currency financial statement translation difference, etc. V. Taxation
(I) Major taxes (expenses) and tax rates
||
|-|
|Tax base|
|Income from sales of goods and fromprocessing|
|Rental income and off-price expense|
|Turnover tax|
|Turnover tax|
|Turnover tax|
|Taxable income|
|Original Book value of houseproperty×(1-30%)or annual rent income|
|Actual land area used|

 (II) Preferential tax and approval documents
The Company and its subsidiary Zhongke Meiling Cryogenics Technology Limited Company were recognized as second Hi-Tech Enterprise for year of 2014 in Anhui Province with term of three years. Therefore, the Company and its subsidiary Zhongke Meiling Cryogenics Technology Co., Ltd. enjoys15% rate for the income tax for State Hi-Tech Enterprise. On 22 January 2015, being recognized by―Name Lists of First Hi-Tech Enterprise for year of 2014 in AnhuiProvince‖[WGQR(2014) No.37] from Anhui Science& Technology Department, the Company and Zhongke Meiling Cryogenics Technology Co., Ltd. continuous to enjoy15% rate for the income tax for State Hi-Tech Enterprise for three years term.
Subsidiary Zhongshan Changhong Electric Co., LTD. was recognized as First Hi-Tech Enterprise for year of 2008 in Guangdong Province with15% rate for the income tax for State Hi-Tech Enterprise enjoys for term of three years. On 10 October 2014, being recognized by Guangdong Science& Technology Department (identified No.: GR201444000246) , Zhongshan Changhong Appliance Co., Ltd. continuous to enjoy15% rate for the income tax for State Hi-Tech Enterprise for three years term.
Subsidiary Sichuan Changhong Air Conditioner Co., Ltd. approved the re-examination of
high-tech enterprise dated 25 December 2013, and was granted the―Certificate of High-tech
Enterprise‖ (certificate No.: GR201051000154) with a maturity of three years. Being
approved and file by First Branch of Local Tax Bureau of Mianyang City, Sichuan Changhong
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Air Conditioner Co., Ltd. was subject to enterprise income tax at a rate of15%.
||
|-|
|Subsidiary Mianyang Meiling Software Technology Co., Ltd. pass the software enterprise|
|certificate on 27 June 2014, and obtained the Software Enterprise Certification [Chuan|
|No.:R-2014-0072]. Calculating the promotion period since the year of profit-making, the 1st|
|year to 2nd year, the income tax shall be exempted, levy income tax based on half of the|
|statutory rates from the 3rd year to 5th year, and enjoy the preferential till expired|

Subsidiary Mianyang Meiling Refrigeration Co., Ltd. passes the review approval from Economic and Information Commission of Sichuan dated 9 May 2014,[Chuan Jing Xin Industry Han (2014) No.408], and recognized as industries to encourage regulated in―Catalogue for Guiding IndustryRestructuring‖ (2011 version) Amendment (National Development and Reform Commission No. 21); Mianyang Meiling Refrigeration enjoys the preferential tax policies of corporate income tax for West Development, being approved and file by taxation bureau, Mianyang Meiling Refrigeration was subject to corporate income tax at a rate of15% in 7 years since 2014.
VI. Notes to the major items in the consolidated financial statements
With respect to the financial statements figures disclosed below, unless otherwise specified,―period-beginning‖ refers to Jan. 1, 2015;―period-end‖ refers to 30 June 2015;―thePeriod‖ refers to Jan. 1 to June 30, 2015;―the lastPeriod‖ refers to refers to Jan. 1 to June 30, 2014; the currency is RMB.
1. Monetary fund
||
|-|
|Ending balance|
|12,917.09|
|2,729,498,557.95|
|68,315,120.68|
|2,797,826,595.72|
|7,572,563.96|

 Other monetary fund:
Item Ending amount
Bank acceptance deposits 41,315,336.85 Foreign currency for verification 18,650,880.83 Bank ofdeposit—pledge ticket for booking 13,244.51
Union Pay online 2,621,553.00
Taobao account 5,714,105.49
Total 68,315,120.68
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Among other monetary funds, those not consider as the cash and cash equivalent refers to the RMB 28,475,300.51 bank acceptance margin over 3-month
2. Financial assets measured by fair value and reckoned into current gains/losses with their changes
||
|-|
|Ending amount|
|3,572,100.00|
|3,572,100.00|
|-|
|-|
|-|
|3,572,100.00|

 Derivative financial assets:
||
|-|
|Fair value atperiod-end|
|3,572,100.00|

3. Notes receivable
(1) Category of notes receivable
||
|-|
|Ending balance|
|1,516,111,268.51|
|270,053,733.44|
|1,786,165,001.95|

 (2) Notes receivable mortgaged by end of the period
Item Amount mortgaged by end of the period
Bank acceptance 234,375,733.20 (3) Note receivables endorsement or discount at year-end and are not expired on balance sheet date
||
|-|
|Termination confirmationamount at year-end|
|2,976,011,490.55|

 (4)Notes transfer to account receivable due to the failure implementation from drawer at period-end: Nil
4. Account receivable
(1) Account receivable by category
Category Ending amount
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Percentage(%)|Amount|Percentage (%)|
|-|-|-|-|
|-|-|-|-|
|1,698,673,047.09|81.47|91,365,726.45|5.38|
|386,001,580.12|18.51|-|-|
|2,084,674,627.21|99.98|91,365,726.45|5.38|
|370,951.71|0.02|370,951.71|100.00|
|2,085,045,578.92|100.00|91,736,678.16|4.40|

 (Continued)
Opening amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Percentage(%)|Amount|Percentage (%)|
|-|-|-|-|
|-|-|-|-|
|1,001,798,140.69|82.31|56,282,407.74|5.62|
|211,449,366.71|17.37|||
|1,213,247,507.40|99.68|56,282,407.74|4.64|
|3,878,543.12|0.32|651,365.78|16.79|
|1,217,126,050.52|100.00|56,933,773.52|4.68|

 (2) No account receivable with single significant amount and withdrawal single item bad debt provision at period-end
(3) Account receivable with withdrawal bad debt provision for combination 1 by aging account
||||||
|-|-|-|-|-|
|Ending amount|||||
|Amount|Provisionproportion|Bad debtprovision|Amount|Provisionproportion|
|1,680,460,984.19|5%|84,023,049.21|987,327,112.39|5%|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||||
|-|-|-|-|-|
|Ending amount|||||
|Amount|Provisionproportion|Bad debtprovision|Amount|Provisionproportion|
|10,461,750.27|15%|1,569,262.54|8,222,166.64|15%|
|2,824,557.60|35%|988,595.16|251,693.39|35%|
|284,233.63|55%|156,328.50|479,555.01|55%|
|86,869.05|85%|73,838.69|1,244,893.93|85%|
|4,554,652.35|100%|4,554,652.35|4,272,719.33|100%|
|1,698,673,047.09||91,365,726.45|1,001,798,140.69||

 (4) Account receivable with no withdrawal bad debt provision for combination 2
Combination Book balance
Account connect with related parties 327,583,048.73 Letter of Credit 58,418,531.39 Total 386,001,580.12 (5) Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minor single receivables, and withdrawal bad debt provision by combination shows no risk characteristic of the receivables, three clients involved:
(6) No reversal of reserve for bad debts in the Period.
(7) No account receivable actually written-off in the Period.
(8) In the Year, top five receivables collected by arrears party amounting to RMB 1,039,269,871.68 in total, accounted for49.84% of the receivables at balance of the year-end, the bad debt provision accrual correspondingly amounting to RMB 40,228,098.14 at period-end balance
(9) Details of account receivable from related parties found in XI(3)
5. Accounts paid in advance
(1) Age of account paid in advance
||||
|-|-|-|
|Ending amount|||
|Amount|Percentage(%)|Amount|
|95,315,648.00|92.98|90,498,929.82|
|6,218,014.43|6.07|1,080,459.71|
|179,349.17|0.17|367,366.72|
|803,367.14|0.78|554,947.81|
|102,516,378.74|100.00|92,501,704.06|

Top 5 accounts paid in advance in balance at year-end amounting to RMB 49,899,330.04,
accounted for48.67% of the account
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(2) Account paid in advance for related party found in XI (III)
6. Interest payable
|||
|-|-|
|Ending balance||
||582,870.63|
|-||
|-||
|582,870.63||

 7. Other account receivable
(1) Category of other account receivable
Ending amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Percentage (%)|Amount|Percentage(%)|
|-|-|-|-|
|-|-|-|-|
|8,743,186.20|20.49|2,848,213.59|32.58|
|33,870,556.94|79.38||-|
|42,613,743.14|99.87|2,848,213.59|6.68|
|56,178.00|0.13|56,178.00|100.00|
|42,669,921.14|100.00|2,904,391.59|6.81|

 (Continued)
Opening amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Percentage (%)|Amount|Percentage (%)|
|-|-|-|-|
|-|-|-|-|
|9,411,515.36|29.25|3,211,084.50|34.12|
|22,528,897.94|70.02|-|-|
|31,940,413.30|99.27|3,211,084.50|10.05|
|234,079.31|0.73|234,079.31|100|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Opening amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Percentage (%)|Amount|Percentage (%)|
|32,174,492.61|100|3,445,163.81|10.71|

 (2)No significant other account receivable and no withdrawal bad debt provision single at period-end.
(3)Other account receivable with withdrawal bad debt provision for combination 1 by aging account
||||||
|-|-|-|-|-|
|Ending amount|||||
|Amount|Provisionproportion|Bad debtprovision|Amount|Provisionproportion|
|2,017,744.85|5%|100,887.24|2,351,526.09|5%|
|1,237,874.17|15%|185,681.13|847,086.25|15%|
|4,018,962.50|35%|1,406,636.88|4,107,832.50|35%|
|656,980.00|55%|361,339.00|1,224,148.09|55%|
|119,702.25|85%|101,746.91|170,000.00|85%|
|691,922.43|100%|691,922.43|710,922.43|100%|
|8,743,186.20||2,848,213.59|9,411,515.36||

 (4) Other account receivable with no withdrawal bad debt provision for combination 2 Combination Book balance
Contact with related party 156,000.00Employee’s reserve loans 13,712,878.53 Export tax rebate receivable 20,001,678.41 Total 33,870,556.94 (5) Account receivable with single minor amount but withdrawal bad debt provision singly, refers to the minor single receivables, and withdrawal bad debt provision by combination shows no risk characteristic of the receivables, three clients involved:
(6)No reversal (or withdraw) of reserve for bad debts in the Year.
(7) Classification of other accounts receivable according to the nature of account
||
|-|
|Book balance at year-end|
|156,000.00|
|13,712,878.53|
|7,481,406.21|
|699,768.91|
|221,209.08|
|20,001,678.41|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|396,980.00|
|42,669,921.14|

 (8) Top 5 other receivables collected by arrears party at balance of year-end
|||||
|-|-|-|-|
|Nature of account|Ending balance|Book age|Proportion in totalother receivablesat year-end|
|Export rebates|12,932,140.17|Within 1year|30.31%|
|Export rebates|7,069,538.24|Within 1year|16.57%|
|Reserve fund|998,842.97|Within 1year|2.34%|
|Reserve fund|830,000.00|Within 1year|1.95%|
|Reserve fund|830,000.00|Within 1year|1.95%|
||22,660,521.38||53.11%|

(9) Other account receivable involved government subsidies: Nil
(10) Other receivables terminated recognization due to the transfer of financial assets: nil (11) Assets and liability transfer other receivables and continues to involve: nil
8. Inventories
(1)Classification of inventories
Ending amount
|||
|-|-|
|Book balance|Impairmentprovision|
|91,676,762.72|196,251.67|
|1,352,477,521.37|70,469,651.70|
|9,370,400.02|-|
|106,402,837.38|809,714.18|
|27,423,907.80|-|
|31,698,964.28|-|
|1,619,050,393.57|71,475,617.55|

 (Cont.)
Opening amount
|||
|-|-|
|Book balance|Impairmentprovision|
|107,161,337.95|271,868.17|
|1,540,132,511.00|73,008,115.56|
|18,346,189.76|-|
|107,492,452.70|1,934,302.89|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Opening amount
|||
|-|-|
|Book balance|Impairmentprovision|
|33,074,721.00|-|
|34,768,482.07|-|
|1,840,975,694.48|75,214,286.62|

 (2)Inventory falling price reserves
|||||
|-|-|-|-|
|Opening amount|Increased|Decreased||
|||Switch-back|Other switch-out|
|271,868.17|2,771.00|-|78,387.50|
|73,008,115.56|974,759.76|-|3,513,223.62|
|1,934,302.89|49,184.31|-|1,173,773.02|
|75,214,286.62|1,026,715.07|-|4,765,384.14|

 9. Finance asset available for sales
(1)Finance asset available for sales
||||||
|-|-|-|-|-|
|Ending balance|||||
|Book balance|Impairment loss|Book value|Book balance|Impairment loss|
|5,000,000.00||5,000,000.00|5,500,000.00|-|
|-||-|-|-|
|5,000,000.00||5,000,000.00|5,500,000.00|-|
|5,000,000.00||5,000,000.00|5,500,000.00|-|

 (2)Finance asset available for sales measured by cost at year-end
||||||
|-|-|-|-|-|
|Period-begin|Increasein theyear|Decrease inthe year|Period -end|Holdingproportion ininvested unit|
|5,000,000.00|-|-|5,000,000.00|0.097%|
|500,000.00|-|500,000.00|-|-|
|5,500,000.00|-|500,000.00|5,000,000.00||

In reporting period, Fuyang Weiao Meiling Appliance Marketing Co., Ltd. changed its name to Fuyang Weiao Meiling Appliance Marketing Co., Ltd. and completed the registration change of Industry& Commerce
(3)Impairment reserve of finance asset available for sales: Nil
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
10. Long-term equity investment
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Openingbalance|Change in the period||||||||Ending balance|
||Additionalinvestment|Disinvestment|Investmentprofit and lossconfirmed byequity method|Othercomprehensive incomeadjustment|Otherchanges ofequity|Declaration ofcash dividendsor profits|Provisionforimpairment|Other||
|1,139,219.28|30,129,956.00|-|915,477.85|-190,798.40|-|-|-|-|31,993,854.73|
|13,071,784.93|-|-|-161,530.37|-|-|-|-|-|12,910,254.56|
|-|15,000,000.00|-|-6,416,155.32|-|-|-|-|-|8,583,844.68|
|-|25,000,000.00|-|-391,719.22|-|-|-|-|-|24,608,280.78|
|14,211,004.21|70,129,956.00|-|-6,053,927.06|-190,798.40|-|-|-|-|78,096,234.75|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
11. Investment properties
(1)Investment properties measured at costs
|||
|-|-|
|Houses andbuildings|Land userights|
|23,142,172.83|916,691.38|
|-|-|
|-|-|
|-|-|
|-|-|
|-|-|
|-|-|
|-|-|
|23,142,172.83|916,691.38|
|8,788,007.66|378,060.93|
|385,106.79|19,184.28|
|385,106.79|19,184.28|
|9,173,114.45|397,245.21|
|-|-|
|-|-|
|-|-|
|-|-|
|-|-|
|-|-|
|-|-|
|13,969,058.38|519,446.17|
|14,354,165.17|538,630.45|

 (2)Investment real estate measured by fair value: Nil
(3)Particular about mortgage of investment property: Nil
(4) Investment real estate has not completed the property right certificate: Nil
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
12. Fixed assets
(1)Details of fixed assets
|||||
|-|-|-|-|
|Houses andbuildings|Mechanicalequipment|Transportequipment|Othersequipment|
|836,740,766.13|958,392,783.27|25,263,127.02|146,276,936.85|
|36,939,101.68|57,364,194.63|1,161,675.19|7,622,553.73|
|645,666.05|1,823,382.42|873,982.90|758,091.11|
|36,293,435.63|55,540,812.21|287,692.29|6,559,138.52|
|-|-|-|-|
|-|-|-|305,324.10|
|-|-|-|-|
|-|74,620,183.72|814,569.04|1,271,985.53|
|-|74,097,696.32|814,569.04|1,271,985.53|
|-|522,487.40|-|-|
|-|-|-|-|
|-|-|-|-|
|873,679,867.81|941,136,794.18|25,610,233.17|152,627,505.05|
|-|-|-|-|
|123,227,113.01|542,609,362.47|16,447,345.32|56,052,690.94|
|15,022,679.82|45,196,565.20|950,859.74|8,077,911.37|
|15,022,679.82|45,196,565.20|950,859.74|8,077,911.37|
|-|-|-|-|
|-|-|-|-|
|-|67,150,737.39|588,599.80|1,151,148.17|
|-|67,147,276.54|588,599.80|1,151,148.17|
|-|3,460.85|-|-|
|-|-|-|-|
|138,249,792.83|520,655,190.28|16,809,605.26|62,979,454.14|
|-|-|-|-|
|1,240,639.77|3,114,942.24|15,166.17|202,432.49|
|-|-|-|-|
|-|-|-|-|
|-|1,164,573.06|-|2,744.79|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||||
|-|-|-|-|
|Houses andbuildings|Mechanicalequipment|Transportequipment|Othersequipment|
|-|1,164,573.06|-|2,744.79|
|1,240,639.77|1,950,369.18|15,166.17|199,687.70|
|734,189,435.21|418,531,234.72|8,785,461.74|89,448,363.21|
|712,273,013.35|412,668,478.56|8,800,615.53|90,021,813.42|

 (2) Fixed assts temporary idle: Nil
(3) Fixed assets for collateral: Nil.
(4) Fixed assets leased through operating lease: Nil
(5) Fixed assets leased through operating lease
||||
|-|-|-|
|Original bookvalue|Accumulateddepreciation|Impairment loss|
|37,905.00|28,810.87|-|
|197,640.00|187,758.00|-|
|37,424,967.04|5,374,815.25|-|
|37,660,512.04|5,591,384.12|-|

 (6)Fixed assts without property certificate (House and buildings)
Assets Original value
7#Freezer Plant 34,752,958.498#Freezer Plant 31,939,378.099#Freezer Plant 36,896,570.193#Big refrigerator Plant 91,724,056.073#Big refrigerator finished-goods Plant 49,997,543.01 Canteen 2,415,806.733# makeshift shelter 5,689,907.184# makeshift shelter 6,651,069.975# makeshift shelter 5,140,247.606# building for cadremen 8,936,534.607# building for cadremen 8,221,302.208# makeshift shelter 5,178,824.74 Phase II canteen in living quarters 25,928,794.67 Total 313,472,993.54
For individual acceptance procedure not done for the above house and buildings, no
property certificate has been done temporary.
(7)Fixed assets ready for sale at year-end: Nil
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
13. Construction in progress
(1)Details of construction in progress
||||||
|-|-|-|-|-|
|Ending amount|||||
|Bookbalance|Impairmentprovision|Book value|Bookbalance|Impairmentprovision|
|1,325,050.00||1,325,050.00|18,466,267.38|-|
|-|-|-|1,092,770.90|-|
|2,838,270.04|-|2,838,270.04|15,222,608.26|-|
|1,238,654.41||1,238,654.41|24,578.48||
|390,874.60|-|390,874.60|564,428.79|-|
|12,065,564.79|-|12,065,564.79|11,249,312.19|-|
|292,802.31|-|292,802.31|2,400,855.08|-|
|10,084,308.75|-|10,084,308.75|13,745,886.49|-|
|28,235,524.90|-|28,235,524.90|62,766,707.57|-|

 (2) Depreciation reserves for construction in process: Nil
14. Disposal of fixed assets
|||
|-|-|
|Ending amount|Opening amount|
|75,734,875.15|75,808,843.84|

Pursuant to the urban planning requirements of thePeople’s Government of Hefei city, Hefei Land Reserve Center plans to purchase and store the land use right of an integrated economic development zone of the Company located at Longgang of Hefei with an area of 103,978.9 sq.m. (Approximately 155.9684 mu, Land Use Right Certificate No.: Dong Guo Yong (2004) Zi No. 0200, the stated use of the land is for industrial purpose). The estimated consideration for purchasing and storage is RMB74.48 million. The land is mainly used for theCompany’s warehouse, product finishing workshop and the factory of Zhongke Meiling.
Pursuant to the purchasing and storage requirements of land use right, the land will be
purchased and stored with vacant possession. In April 2013, the Company completed the
relocation of occupants of the premises, and the net fixed assets in relation to the land will
transfer as disposal, accounting treatment will be conduct in line with relevant rules upon
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
receiving of the relocation compensation.
Pursuant to the urban planning requirements of Hefei Municipal Government and the Government of Feidong county, the land reserve center of Feidong county will purchase and store the land use right of an economic development zone located at Feidong county, Hefei city, which is owned by theCompany’s subordinate companies, Equator Electric and Equator Home Appliance, respectively, with an area of 19,245.09 sq.m. (Approximately 28.87 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0366, the stated use of the land is for industrial purpose) and an area of 46,161.9 sq.m. (Approximately 69.24 mu, Land Use Right Certificate No.: Dong Guo Yong (2008) No. 0367, the stated use of the land is for industrial purpose). The total consideration for purchasing and storage is approximately RMB36 million, of which the consideration for the land use right owned by Equator Electric and Equator Home Appliance is approximately RMB10.59 million and RMB25.41 million, respectively. The Company has completed the relocation of occupants of the premises, and the net fixed assets in relation to the land will transfer as disposal, accounting treatment will be conduct in line with relevant rules upon receiving of the relocation compensation.
15. Intangible assets
(1) According to intangible assets item
||||
|-|-|-|
|Land use right|Trademark specialright|Non-patenttechnology|
|593,245,146.16|283,292,439.34|87,563,002.33|
|13,056,121.02|-|12,197,907.57|
|13,056,121.02|-|-|
|-|-|12,197,907.57|
|-|-|-|
|-|-|-|
|606,301,267.18|283,292,439.34|99,760,909.90|
|90,563,381.46|263,193,530.64|48,479,466.10|
|6,318,793.46|2,435,320.14|7,560,859.41|
|6,318,793.46|2,435,320.14|7,560,859.41|
|-|-|-|
|-|-|-|
|96,882,174.92|265,628,850.78|56,040,325.51|
|-|-|-|
|-|-|-|
|-|-|-|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||
|-|-|-|
|Land use right|Trademark specialright|Non-patenttechnology|
|-|-|-|
|-|-|-|
|-|-|-|
|509,419,092.26|17,663,588.56|43,720,584.39|
|502,681,764.70|20,098,908.70|39,083,536.23|

 (2) As of the end of 2015, mortgage of intangible assets is as follows:
||||||||
|-|-|-|-|-|-|-|
|Name|Property certificate serials||Area(M2)||Net book value|Note|
||HGYJCZi No.: 0121|27,120.22||21,052,438.69||See Note VI .30|

16. Development expense
|||||||
|-|-|-|-|-|-|
|Openingbalance|Increase during the year||Decrease during the year|||
||Internaldevelopmentexpenditure|other|Included incurrentprofits andlosses|Confirmed asintangible assets|Other|
|24,684,278.08|17,981,068.39|-|-|12,197,907.57|-|
|509,879.01|7,643,385.50|-|-|-|-|
|25,194,157.09|25,624,453.89|-|-|12,197,907.57|-|

 17. Goodwill
(1) Original value of goodwill
|||
|-|-|
|Goodwill|Impairment loss|
|10,922,803.73|10,922,803.73|
|5,313,913.50|-|
|16,236,717.23|10,922,803.73|

 (2) Impairment provision of goodwill
||||
|-|-|-|
|Openingbalance|Increaseduring theperiod|Decreaseduringtheperiod|
|10,922,803.73|-|-|

18. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets
Item Ending balance Opening balance
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||
|-|-|-|
|Deductibletemporarydifference|Deferredincome taxassets|Deductibletemporarydifference|
|129,192,898.46|19,666,140.58|107,473,949.07|
|342,633,453.84|51,395,018.08|347,107,686.15|
|47,518,488.66|7,127,773.30|47,406,511.04|
|38,193,913.68|5,729,087.05|23,778,399.30|
|24,780,000.00|3,717,000.00|32,186,723.32|
|-3,572,100.00|-535,815.00|81,170.00|
|578,746,654.64|87,099,204.01|558,034,438.88|

 (2) Set-off details
||||
|-|-|-|
|Ending balance|||
|Deductibletemporarydifferences|Deferred incometax assets|Deductibletemporarydifferences|
|-3,572,100.00|-535,815.00|81,170.00|

 (3) Details of unrecognized deferred income tax assets
||
|-|
|Ending balance|
|37,958,555.66|
|251,488,670.25|
|289,447,225.91|

 19.Other non-current assets
|||
|-|-|
|Ending balance||
||41,633,616.00|

 20.Short-term loans
(1)Types of short-term loans
||
|-|
|Ending balance|
|40,032,241.87|
|316,602,650.78|
|356,634,892.65|

 (2) New loans in the Year:
1) The Company entered into the Import Trade Financing Contract with international
department of Anhui Branch of BOCOM, loans period from April 2015 to July 2015; balance at
period-end amounting to$ 198,860.70
2) The Company entered into the Import Trade Financing Contract with international
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
department of Anhui Branch of BOCOM, loans period from 24 April 2015 to 21 August 2015; balance at period-end amounting to$ 6,000,000.00
3) The Company entered into the TF Comprehensive Credit Agreement with Hefei Branch of CEB, loans period from January 2015 to July 2015, from March 2015 to July 2015, from April 2015 to July 2015 and from April 2015 to August 2015, the total balance at period-end accounting to$ 19,110,000.00.
4) The Company entered into the―O/A CooperationAgreement‖ with Hefei Luyang Branch of China Construction Bank, loans period from April 2015 to July 2015, the total balance at period-end accounting to$ 12,000,000.00.
5) The Company entered into the―O/A CooperationAgreement‖ with Hefei Luyang Branch of China Construction Bank, loans period from April 2015 to August 2015, the total balance at period-end accounting to$ 4,500,000.00.
6) subsidiary of the Company Zhongshan Changhong entered into the Account Receivables Secured Borrowings Contract with Zhongshan Nantou Branch of ICBC, loans period from 13 January 2015 to 2 July 2015 with 6 months terms; borrowing amounting to$ 2.9 million, equivalence RMB 17,729,440.000; secured receivables have book value of$2,966,639.20, equivalence RMB 18,136,845.4; the borrowings have paid due on 2 July 2015. 7) subsidiary of the Company Zhongshan Changhong entered into the Account Receivables Secured Borrowings Contract with Zhongshan Nantou Branch of ICBC, loans period from 12 June 2015 to 12 December 2015 with 6 months terms; borrowing amounting to$ 3,648,063.64, equivalence RMB 22,302,801.87; secured receivables have book value of$ 3,802,422.40, equivalence RMB 23,246,489.58
8) Subsidiary Hefei Meiling Group Holding Co., Ltd. open a domestic letter of credit in Anhui Branch of Bank of Communications dated 25 March 2015, the RMB amount was 61 million Yuan with 6-month period, and expired on 21 September 2015.
21. Financial liabilities at fair value through gains and losses
||
|-|
|Ending balance|
|-|
|-|
|-|
|-|
|-|
|-|

22. Notes payable
||
|-|
|Ending balance|
|2,334,117,842.78|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Ending balance|
|304,012,400.00|
|2,638,130,242.78|

 There are no notes expired without paid in above mentioned ending balance
23. Account payable
(1) Age of account payable
||
|-|
|Ending balance|
|1,921,548,794.47|
|36,417,335.93|

 (2) Account payable with over one year book age
||
|-|
|Ending balance|
|1,720,500.00|
|1,178,871.58|
|2,899,371.58|

(3) Account payable for related parties found in XI(III)
24. Account received in advance
(1) Age of account received in advance
||
|-|
|Ending amount|
|250,150,216.76|
|41,722,525.58|

 (2) Account received in advance with over one year book age
||
|-|
|Balance at year-end|
|2,180,000.00|
|1,057,783.00|
|3,237,783.00|

(3) Account receivable from related parties found in XI(III)
25. Wages payable
(1) Types of wages payable
||||
|-|-|-|
|Opening balance|Increase in thisperiod|Decrease in thisperiod|
|133,622,710.39|429,569,633.35|470,132,636.58|
|15,825,456.47|36,891,638.49|47,421,102.54|
|7,089,045.43|4,059,202.49|4,056,679.77|
|-|-|-|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||
|-|-|-|
|Opening balance|Increase in thisperiod|Decrease in thisperiod|
|156,537,212.29|470,520,474.33|521,610,418.89|

 (2) Short-term compensation
||||
|-|-|-|
|Opening balance|Increase in thisperiod|Decrease in thisperiod|
|91,313,294.35|375,395,782.44|411,220,005.18|
|98,695.00|18,674,473.32|18,424,530.32|
|3,015,479.67|15,532,746.51|14,834,409.72|
|2,756,406.75|13,447,236.32|12,694,434.36|
|113,865.97|1,213,896.25|1,219,518.17|
|145,206.95|871,613.94|920,457.19|
|5,856,388.08|20,047,867.43|17,320,736.42|
|1,152,129.97|-81,236.35|926,231.62|
|-|-|-|
|32,186,723.32|-|7,406,723.32|
|-|-|-|
|133,622,710.39|429,569,633.35|470,132,636.58|

 In the Period, the incentive amount has been adjusted correspondingly in line with the―Distribution plan of the Performance incentive fund for year of2014‖ that deliberated and approved in first extraordinary general meeting of 2015
The Company withdrew the outstanding salary, bonus and subsidy from the closing balance of staff salary payables which were granted in the Period
(3) Defined contribution plans
||||
|-|-|-|
|Opening balance|Increase in thisperiod|Decrease in thisperiod|
|14,922,593.36|34,292,620.68|44,848,854.60|
|902,863.11|2,599,017.81|2,572,247.94|
|15,825,456.47|36,891,638.49|47,421,102.54|

 26. Tax payable
||
|-|
|Ending balance|
|87,477,896.12|
|103,067.15|
|9,934,621.57|
|4,375,557.94|
|2,594,208.97|
|4,675,933.15|
|4,436,568.34|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Ending balance|
|1,871,187.49|
|692,402.21|
|441,137.89|
|15,599,335.00|
|1,940,354.91|
|134,142,270.74|

 Tax payable at period-end has major growth over beginning of the year mainly because during the peak season, payable VAT increased over that of year-begin
27 Dividends payable
||
|-|
|Ending balance|
|9,889,699.80|
|462,138.81|
|302,954.85|
|153,697.50|
|103,333.85|
|92,088.75|
|1,588,294.60|
|12,592,208.16|

 Payable dividend at year-end refers to the common dividends that not receiving by shareholders
a) refers to the dividend not withdrawal by Sichuan Changhong Appliance at period-end, and the Company has paid the dividend on 3 July 2015
b) The court ruled that the stock rights held by original Entrust Hefei Office of Provincial ABC are share by Hefei Minzhu Branch of Agricultural Bank of China, and the ownership has completed on 14 January 2015
28. Other account payable
(1) Classification of other payable according to nature of account
||
|-|
|Ending balance|
|803,924,138.90|
|41,952,127.00|
|47,450,567.61|
|23,005,053.48|
|9,284,556.94|
|925,616,443.93|

(2) Large other payable with over one year age
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Ending balance|
|1,110,000.00|
|527,934.86|
|1,637,934.86|

29. Non-current liability due within one year
(1) Classification of non-current liability due within one year
||
|-|
|Ending balance|
|-|
|11,153,513.56|
|11,153,513.56|

 (2) Deferred income transfer into profit and loss within 1 year
||||||
|-|-|-|-|-|
|Openingamount|Subsidyincreaseduringthisperiod|Amountreckoned intonon-operationrevenue in thePeriod|Otherchanges|Ending amount|
|1,797,880.32|-|898,940.16|898,940.16|1,797,880.32|
|2,467,448.08|-|1,233,724.77|1,233,725.81|2,467,449.12|
|4,286,250.00|-|2,143,125.00|2,143,125.00|4,286,250.00|
|734,062.52|-|367,031.26|367,031.26|734,062.52|
|1,700,000.00|-|-|-|1,700,000.00|
|167,871.60|-|83,935.80|83,935.80|167,871.60|
|-|-|146,017.75|146,017.75|-|
|11,153,512.52|-|4,872,774.74|4,872,775.78|11,153,513.56|

The deferred income transfer to gains/losses in the Year refers to the deferred income transfer to the non-current liability due within one year, which will expected to amortized next year
30. Long-term loans
(1)Classification of long-term loans
||
|-|
|Ending amount|
|41,107,846.40|
|3,840,000.00|
|-|
|3,452,800.00|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Ending amount|
|48,400,646.40|

 (2) Details of long-term loans at period–end
||||||
|-|-|-|-|-|
|Borrowingday|Returningday|Foreigncurrency|Interestrate|Ending amount(RMB)|
|2014-12-24|2017-12-24|USD|3.20%|11,004,480.00|
|2015-01-06|2018-01-06|USD|3.20%|30,103,366.40|
|2002-11-21|2017-11-20|RMB|3.05%|1,952,800.00|
|2004-12-10|2019-12-10|RMB|3.05%|1,500,000.00|
|2006-11-9|2021-11-8|RMB|3.30%|3,840,000.00|
|||||48,400,646.40|

 Note1: On 24 December 2014, the Company entered into Foreign Currency Mid-Long-term Loan Contract with Zhongshan Branch of Guangdong Development Bank, agreed that issuing foreign currency USD1, 800,000.00 to the Company with loans term of 3 years, and annual interest rate of3.2%. The pledge refers to the USD 1.82 million deposit for a long time; interest of the loans calculated from 24 December 2014, the 20th of end of the quarterly is the expiry date for interest, 21st is the payment date. The loans are contribute for the joint venture project in Pakistan, that is Zhongshan Changhong Electrics and RUBA GENERAL TRADING FZE
Note 2: On 6 January 2015, subsidiary Zhongshan Changhong entered into the―Mid-long term loans agree with foreigncurrency‖ with Zhongshan Branch of Guangdong Development Bank, and agreed that the Zhongshan Branch of Guangdong Development Bank issued foreign currency loans USD 4,924,000.00 to Zhongshan Changhong, with loan period of 3 years and3.2% annual interest rate, the pledge refers to the USD 4.99 million deposit for a long time; interest of the loans calculated from 6 January 2015, the 20th of end of the quarterly is the expiry date for interest, 21st is the payment date. The loans are use for the joint-venture project by Zhongshan Changhong Appliance Co., Ltd and United Arab Emirates RUBA GENERAL TRADING FZE in Pakistan.
Note 3: on 1 November 2002, the Company entered into the Agreement Relating to Implementing Construction Projects through Lending Treasury Bond Funds with the finance office of Hefei, pursuant to which, the finance office of Hefei lent the treasure bonds or
RMB7.16 million related to our―Technology Reform Project in relation to Nanometer
Materials for RetainingFreshness‖ to our Company, with a terms of 15 years. The lent funds
have begun to carry interest commencing from the date of appropriation of funds by the finance
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
office of Hefei (namely 21 November 2002), and the Company shall pay the interests to the finance office of Hefei annually on an average basis during the lending period. The first four years of the loan is grace period. The interest rate per annum applicable to the lent funds is floating interest rate since 1999 (for interest rate per annum in respect of each batch of Treasury bond lending capital, it is determined by reference to one-year time deposit rate per annum on value date of the prevailing year as published by the PBOC, plus 0.3 percentage points). Note 4: It was the special Treasury bond capital appropriated by Ministry of Finance of Hefei forenterprises’ information reform, received on Dec. 10th, 2004.
Note 5: In August of 2006, the Company signed Asset Mortgage Agreement with Ministry of Finance of Hefei. It takes five industry crusher chambers which cover an area of 2,322.98 square meters as mortgage for the Company to get the lending of treasury bond fund which has 15-year term and worthy of RMB 7,040,000 from the Ministry of Finance of Hefei. The capital on-lending began to bear interest from the appropriate date (November 9, 2006), which would be paid by stages in the loan period to Ministry of Finance of Hefei by the Company. The first four years were grace period, during which the annual interest rate was subject to floating interest rate (the annual interest rate was the annual interest rate of one year fixed deposit plus0.3%). On 1 March 2013, according to the Letter Relating to Ceasing Process of Other Securities in respect of the Properties in Feidong Longgang Industrial Park of Hefei Meiling Co., Ltd. (HCJ(2006)No.85) issued by the finance office of Hefei, Meiling commenced the national purchase of its land parcels in Longgang in compliance with the land planning of Hefei municipal government, which required its properties in Longgang land parcel to be unrestricted. Four property ownership certificates (No.: 028277, 028282, 028283, 028284) obtained by Meiling in 2006 were exchanged for the property with registration No. HGYJCZ No.0121 which was used as the security for treasury bonds lending capital (details were set out in Note VI.15). The Company repaid principal of RMB640, 000.00 and interest of RMB147, 800.00 in this year.
(3) Renewal long-term loans at year-end: nil
31. long-tern wage payable
||
|-|
|Ending balance|
|-|
|40,426,920.51|
|-|
|40,426,920.51|

 32. Projected liability
|||
|-|-|
|Ending balance|Opening balance|
|11,030,437.10|11,030,437.10|
|331,603,016.74|336,077,249.05|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Ending balance|Opening balance|
|342,633,453.84|347,107,686.15|

Product quality deposit is the maintenance expense provided by the Company under the national policy, while quality service special guarantee capital is the warranty costs provided for product quality in addition to such policy.
33. Deferred income
(1) Classification of deferred income
||
|-|
|Ending amount|
|46,975,300.50|
|82,497,151.49|
|129,472,451.99|

 (2)Government subsidy
||||||
|-|-|-|-|-|
|Openingamount|Newsubsidy inthe Year|Amountreckoned intonon-operating income|Otherchanges|Ending amount|
|49,844,920.65|-|-|1,233,725.81|48,611,194.84|
|22,022,812.50|-|-|2,143,125.00|19,879,687.50|
|3,670,312.46|-|-|367,031.26|3,303,281.20|
|23,778,399.30|-|-|146,017.75|23,632,381.55|
|10,100,000.00|-|-|-|10,100,000.00|
|7,426,267.60|-|-|83,935.80|7,342,331.80|
|4,000,000.00|-|-|-|4,000,000.00|
|11,152,515.26|-|-|898,940.16|10,253,575.10|
|-|2,350,000.00||-|2,350,000.00|
|131,995,227.77|2,350,000.00|-|4,872,775.78|129,472,451.99|

34. Share capital
|||||||
|-|-|-|-|-|-|
|Opening balance|Change during the year (+,-)|||||
||Newsharesissued|Bonusshare|Sharestransferredfromcapitalreserve|Other|Subtotal|
|10,658,357.00|-|-|-|-1|-1|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||||||
|-|-|-|-|-|-|
|Opening balance|Change during the year (+,-)|||||
||Newsharesissued|Bonusshare|Sharestransferredfromcapitalreserve|Other|Subtotal|
|540,692.00|-|-|-|375,295|375,295|
|7,052,279.00|-|-|-|-337,596|-337,596|
|753,080,848.00|-|-|-|1|1|
|763,739,205.00|-|-|-|-|-|

 35. Capital reserve
||||
|-|-|-|
|Opening amount|Increase during theyear|Decrease duringthe year|
|1,418,790,515.26|-|7,958,934.41|
|48,169,423.77||-|
|1,466,959,939.03|-|7,958,934.41|

 Share premium refers to the difference by purchasing minority equity from subsidiaries.
36. Other comprehensive income
|||||||
|-|-|-|-|-|-|
|Openingbalance|Account in the period|||||
||Accountbeforeincome tax inthe year|Less: written inothercomprehensiveincome inprevious periodand carriedforward togains and lossesin currentperiod|Less :income taxexpense|Belong toparentcompanyafter tax|Belong tominorityshareholdersafter tax|

Other comprehensive income re-divided into gains/losses
|||||||
|-|-|-|-|-|-|
|-3,262,898.99|-506,008.36|-|-|-379,924.38|-126,083.98|

37. Surplus reserves
||||
|-|-|-|
|Opening amount|Increase during theyear|Decrease duringthe year|
|244,249,403.98|-|-|
|115,607,702.16|-|-|
|359,857,106.14|-|-|

38. Retained profit
||
|-|
|Current Period|
|835,453,313.49|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Current Period|
|-|
|-|
|-|
|-|
|-|
|-|
|835,453,313.49|
|158,369,766.68|
|-|
|-|
|-|
|45,824,352.30|
|-|
|947,998,727.87|

 39. Operating income and operating cost
(1)Operating income and operating cost
||
|-|
|Current Period|
|6,160,055,353.93|
|266,861,935.32|
|6,426,917,289.25|
|4,849,322,744.97|
|234,922,382.93|
|5,084,245,127.90|

 (2)Main business classified according to product
||||
|-|-|-|
|Current Period|||
|Operation income|Operation cost|Operation income|
|3,510,601,243.62|2,707,916,216.04|3,549,885,533.16|
|2,441,545,800.41|1,973,497,153.25|2,342,096,863.45|
|117,350,072.10|94,819,325.89|87,465,352.71|
|90,558,237.80|73,090,049.79|85,743,771.01|
|6,160,055,353.93|4,849,322,744.97|6,065,191,520.33|

 (3)Main business classified according to sales region
||||
|-|-|-|
|Current Period|||
|Operation income|Operation cost|Operation income|
|4,848,200,937.56|3,657,366,355.08|5,079,538,600.53|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||
|-|-|-|
|Current Period|||
|Operation income|Operation cost|Operation income|
|1,311,854,416.37|1,191,956,389.89|985,652,919.80|
|6,160,055,353.93|4,849,322,744.97|6,065,191,520.33|

 Top five clients have income in sales of RMB 2,369,221,163.93 yuan in total, a36.86% in total operation income.
40. Business tax and extra charges
||
|-|
|Current Period|
|381,847.10|
|10,533,067.88|
|7,683,109.90|
|26,557,501.00|
|144,067.74|
|45,299,593.62|

 41. Sales expense
||
|-|
|Current Period|
|223,819,971.74|
|210,021,178.41|
|172,759,290.28|
|108,043,860.00|
|87,206,103.13|
|56,060,213.85|
|22,028,522.55|
|14,994,407.32|
|8,302,343.46|
|4,856,614.75|
|4,164,534.55|
|3,102,783.32|
|2,595,286.52|
|2,553,186.50|
|1,384,286.00|
|-4,474,232.31|
|28,027,733.13|
|945,446,083.20|

 42. Administration expense
||
|-|
|Current Period|
|77,059,652.05|
|16,369,184.00|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Current Period|
|17,059,309.54|
|19,099,473.69|
|8,825,154.54|
|5,871,943.87|
|4,009,588.95|
|4,213,270.81|
|2,607,185.47|
|1,639,216.72|
|3,025,392.72|
|32,782,871.06|
|192,562,243.42|

 43. Financial expense
||
|-|
|Current Period|
|10,417,535.47|
|51,219,711.99|
|-5,825,811.85|
|1,963,953.58|
|-1,149,949.37|
|11,389.74|
|-45,802,594.42|

 44. Loss from Assets depreciation
||
|-|
|Current Period|
|34,294,416.03|
|1,026,715.07|
|35,321,131.10|

 45. Changes in fair value gains/losses
||
|-|
|Current Period|
|3,572,100.00|
|3,572,100.00|
|81,170.00|
|81,170.00|
|3,653,270.00|

46. Investment income
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(1)Sources of investment income
||
|-|
|Current Period|
|-6,482,572.94|
|-|
|-|
|480,332.00|
|517,808.22|
|-5,484,432.72|

 (2)Long-term equity investment income by equity method
|||
|-|-|
|Current Period|A year earlier|
|-|-1,084,195.80|
|-161,530.37|-95,120.70|
|486,831.97|395,019.28|
|-6,416,155.32|-|
|-391,719.22|-|
|-6,482,572.94|-784,297.22|

(3) Investment income obtained from financial assets available for sales: nil
(4)Investment income obtained from disposal of transaction finance asset is the income from NDF trade: nil
(5) Investment income obtained from disposal of finance asset available for sales:
||
|-|
|Current Period|
|480,332.00|
|480,332.00|

 (6) Other investment income
||
|-|
|Current Period|
|517,808.22|
|517,808.22|

 47. Non-operation revenue
(1)Non-operation revenue
|||
|-|-|
|Current Period|A year earlier|
|14,776.00|1,469,461.36|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Current Period|A year earlier|
|14,776.00|1,469,461.36|
|12,344,884.49|9,753,687.37|
|175,210.49|547,560.89|
|2,270,248.88|8,627,197.54|
|14,805,119.86|20,397,907.16|

(2)Government subsidy
||||
|-|-|-|
|Current Period|A year earlier|Resource and basis|
|-|759,029.00|He Zheng【2013】No.: 68|
|-|200,000.00|Cai Qi【2013】No.:1162|
|87,500.00|272,000.00|He Ren She Mi (2013)No.:139|
|-|1,720,100.00|He Zheng Mi 【2013】No.:115|
|-|100,000.00|He Zheng (2013)No.:68|
|-|200,000.00|Mian Cai Jian【2014】No.:28|
|4,028,798.75|196,847.82|Drawback policy of VAT forsoftware product|
|2,000,000.00|-|Yue Shangwu Cai Han [2014]No.:143|
|1,355,811.00|1,126,525.05|-|
|4,872,774.74|5,179,185.50|Deferred income transfer-in|
|12,344,884.49|9,753,687.37||

48. Non-operating expenditure
|||
|-|-|
|Current Year|A year earlier|
|5,696,803.31|554,394.53|
|5,696,803.31|554,394.53|
|-|14,142.00|
|2,207,106.34|2,204,391.39|
|1,360,703.50|40,000.00|
|9,264,613.15|2,812,927.92|

49. Income tax expenses
Item Current Period A year earlier
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Current Period|
|17,784,503.80|
|-3,272,330.20|
|14,512,173.60|

 50. Other comprehensive income
Found more in―6- 36. Other comprehensiveincome‖ in the Note
51. Items to cash flow statement
(1) Cash received (paid) from (for) other activities relating to operation/investment/financing 1) Cash received from other activities relating to operation
||
|-|
|Current Period|
|3,355,811.00|
|2,144,303.05|
|2,533,392.99|
|633,835.83|
|3,523,870.94|
|12,191,213.81|

 2) Cash paid for other activities relating to operation
||
|-|
|Current Period|
|79,572,503.61|
|27,446,706.38|
|21,369,206.46|
|11,814,200.36|
|11,835,472.37|
|7,214,366.15|
|5,334,604.14|
|4,991,269.00|
|3,684,382.29|
|3,012,365.60|
|2,582,838.57|
|2,753,780.41|
|1,497,432.71|
|2,207,106.34|
|1,916,567.81|
|50,768,920.59|
|97,195,223.11|
|335,196,945.90|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3) Cash received from other activities relating to investment
||
|-|
|Current Period|
|50,612,750.61|
|2,350,000.00|
|287,936.00|
|53,250,686.61|

 4) Cash paid for other activities relating to investment
||
|-|
|Current Period|
|427,715.77|

 5) Cash received from other activities relating to financing: Nil
6) Cash paid for other activities relating to financing
||
|-|
|Current Period|
|130,164.45|
|93,855.90|
|224,020.35|

 (2)Supplementary information about consolidated cash flow statement
||
|-|
|Current Period|
|159,042,874.82|
|35,321,131.10|
|69,652,307.20|
|16,314,973.01|
|-|
|5,682,027.31|
|-|
|-3,653,270.00|
|-40,802,176.52|
|5,484,432.72|
|-3,272,330.20|
|-|
|221,925,300.91|
|-1,496,498,636.71|
|1,374,214,353.39|
|-|
|343,410,987.03|

(3) Net cash paid for subsidiary obtained in the Year: Nil
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(4) Cash received by disposal of subsidiary in the Year: Nil
(5)Cash and cash equivalent
||
|-|
|Current Period|
|2,797,826,595.72|
|12,917.09|
|2,729,498,557.95|
|68,315,120.68|
|28,475,300.51|
|28,475,300.51|
|2,769,351,295.21|

 52. Assets with ownership or the right to use restricted
||
|-|
|Ending Book value|
|28,475,300.51|
|234,375,733.20|
|41,383,334.99|
|21,052,438.69|
|41,633,616.00|
|366,920,423.39|

53. Foreign currency
Foreign currency
|||
|-|-|
|Ending foreign currencybalance|Exchange rate|
|26,683,375.66|6.1136|
|1,078,046.58|6.8699|
|126,149,478.28|0.0600|
|72,266,455.86|6.1136|
|2,562,716.93|6.8699|
|2,363,405.02|4.6993|
|1,270,137,259.04|0.0600|
|41,234.41|6.1136|
|29,726,274.35|0.0600|
|571,111.03|6.1136|
|926,476,704.51|0.0600|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Ending foreign currencybalance|Exchange rate|
|480,443.27|6.1136|
|154,753,051.22|0.0600|
|48,356,924.34|6.1136|
|6,724,000.00|6.1136|

 (2) Foreign operational entity
The foreign operational entity of the Company was Changhong Ruba Trading Company (Private) Limited, mainly operates in Lahore, Pakistan; recording currency is Rupi.
54. Hedging: Nil
55. Other: Nil
7. Changes of consolidation rage
1. Enterprise combined under the different control: Nil
2. Enterprise combined under the same control: Nil
3. Reversed takeover: Nil
4. Disposal of subsidiary: Nil
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
5. Subsidiary liquidated
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Price of theequitydisposed|Ratio of theequitydisposed|Way of theequitydisposed|Time point ofcontrol rightlose|Determinationbasis for the timepoint of controlright lose|Differencebetween thedisposal price andproportion of thesubsidiary’s netassets enjoy inaspect of theconsolidatedfinancialstatement, whichis respond to thedisposalinvestment|Proportion ofthe residualequity on datewhen controlrights lose|Bookvalue of theresidualequity ondate whencontrolrights lose|Fair valueof theresidualequity ondate whencontrolrights lose|Gains or losses ofthe residualequityre-measured byfair value|Determinationmethod and mainhypothesis for theresidual equity’s fairvalue on the datewhen control rightlose|
|-|95%|Liquidation cancelled|2015-5|Liquidationcompleted|-|-|-|-|-|Not applicable|

6. Subsidiary established: Nil
8. Equity in other entity
1. Equity in subsidiary
(1) Composition of the enterprise group
||||||
|-|-|-|-|-|
|Business area|Registrationplace|Businessnature|Share-holding ratio (%)||
||||Directly|Indirectly|
|Hefei|Hefei|Manufactures,sales|70.00|-|
|Mianyang|Mianyang|Softwaredevelopment|99.00|1.00|
|Mianyang|Mianyang|Manufactures,sales|95.00|5.00|
|JDZ|JDZ|Manufactures,sales|98.75|1.25|
|Hefei|Hefei|Sales|99.82|0.18|
|Nanning|Nanning|Sales|-|100.00|
|Luohe|Luohe|Sales|-|100.00|
|Wuhu|Wuhu|Sales|-|98.00|
|Changchun|Changchun|Sales|-|97.00|
|Bengbu|Bengbu|Sales|-|93.50|
|Hengyang|Hengyang|Sales|-|85.00|
|Nanchang|Nanchang|Sales|-|85.00|
|Jingzhou|Jingzhou|Sales|-|81.00|
|Shenyang|Shenyang|Sales|-|94.80|
|Wuhan|Wuhan|Sales|-|91.00|
|Zhengzhou|Zhengzhou|Sales|-|85.00|
|Shijiazhuang|Shijiazhuang|Sales|-|63.33|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||||
|-|-|-|-|-|
|Business area|Registrationplace|Businessnature|Share-holding ratio (%)||
||||Directly|Indirectly|
|Mianyang|Mianyang|Sales|-|85.00|
|Chengdu|Chengdu|Sales|-|85.00|
|Guiyang|Guiyang|Sales|-|86.00|
|Fuzhou|Fuzhou|Sales|-|99.00|
|Nanjing|Nanjing|Sales|-|99.00|
|Hefei|Hefei|Sales|-|95.00|
|Taiyuan|Taiyuan|Sales|-|85.25|
|Changsha|Changsha|Sales|-|86.00|
|Hohhot|Hohhot|Sales|-|83.00|
|Hohhot|Hohhot|Sales|-|95.00|
|Chongqing|Chongqing|Sales|-|85.00|
|Kunming|Kunming|Sales|-|86.50|
|Shanghai|Shanghai|Sales|-|99.00|
|Nantong|Nantong|Sales|-|92.00|
|Tianjin|Tianjin|Sales|-|85.50|
|Urumchi|Urumchi|Sales|-|90.00|
|Harbin|Harbin|Sales|-|77.50|
|Beijing|Beijing|Sales|-|99.00|
|Lanzhou|Lanzhou|Sales|-|51.50|
|Xi’an|Xi’an|Sales|-|85.00|
|Guangzhou|Guangzhou|Sales|-|98.00|
|Jinan|Jinan|Sales|-|36.00|
|Pakistan|Pakistan|Sales|-|60.00|
|Mianyang|Mianyang|Manufactures,sales|100.00|-|
|Zhongshan|Zhongshan|Manufactures,sales|90.00|10.00|
|Hefei|Hefei|Manufactures,sales|100.00|-|
|Hefei|Hefei|Manufactures,sales|-|100.00|
|Hefei|Hefei|Manufactures,sales|-|100.00|
|Hefei|Hefei|Manufactures,sales|-|100.00|
|Hefei|Hefei|Manufactures,sales|48.28|51.72|

1) Zhongke Meiling Cryogenics Technology Limited Company (hereinafter referred to as
Zhongke Meiling Company) was established on Oct. 29, 2002 by Hefei Meiling Co., Ltd. and
CAS’s Technical Institute of Physical& Chemistry, whose registered capital including RMB 60
million material contribution of RMB 35,573,719.70 which accounted for70% of registered
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
capital and cash contribution of RMB 6,426,280.30.CAS’s Physical& Chemical technology Research made contributions by New mixed throttle refrigeration technology and technical License of Application research in super low temperature storage box that was appraised RMB 18,000,000 accounting for30% of registered capital. The actual received of the register capital have been verified by verification report of[Huazheng Yanzi No.(2002)B157] issued by Huazheng CPAs Co., Ltd. In 2014, the30% equity held by theCAS’s Technical Institute of Physical& Chemistry were transferred to its wholly-owned subsidiary Zhongke Xianxing (Beijing) Assets Management Co., Ltd., and completed the registration change of Industry& Commerce in December 2014.
Registration No. of the Business License of Corporation Legal Person: 3401001006416; organization code: 74309835-2; Legal Representative: Li Wei; Address: No. 2163, Lianhua Road, Economy and Technology Development Zone, Hefei City. Business Scope: R& D, exploitation, manufacture, sales and service of cryogenic cooling equipment and products; self-operating and agency for theimport&export business of various commerce and technology. (Excluding the commodity and technology that restricted for operation or import and export prohibit by the State)
2) Mianyang Meiling Software Technology Co., Ltd. (hereinafter referred to as Meiling Software Company) was established on Jan. 24, 2014. It is a limited company jointly invested by Hefei Meiling Co., Ltd. (Meingling Company) and Mianyang Meiling Refrigeration Co., Ltd., being approved by the Industrial and Commerce Bureau of Peicheng District, Mianyang City. The company owes registered capital of RMB 5 million, including RMB 4.95 million contributed by Meiling Company in cash, accounted for99% of the registered capital; Mianyang Meiling Refrigeration Co., Ltd. contributed RMB 50000 in cash with1% of the register capital occupied. The above mentioned register capital have been verified by verification report of Chuanjinlai YanziNo.[2014] B039 issued by Sichuan Jinlai Accounting Firm Co., Ltd..
Registration No. of the Business License of Corporation Legal Person: 510703000059200; Registered capital: RMB 5 million; Address: No. 303, Jiuzhou Revenue, Peicheng District, Mianyang City. Legal Representative: Zhang Xiaolong; Business Scope: Research and sales of the controlling and intelligent software for AC, Washing machine, Refrigerator and freeze and appliance etc.
3) Mianyang Meiling Refrigeration Co., Ltd. (hereinafter referred to as Mianyang Meiling Company), a limited liability company jointly set up by Hefei Meiling Co., Ltd. and Zhongke Meiling Company, was founded on Mar. 6, 2009. Its registered capital and paid-in capital was RMB 50 million upon establishment, of which, Hefei Meiling invested RMB 45 million, accounting for90% of the registered capital; Zhongke Meiling Company invested RMB 5 million, accounting for10% of the registered capital. The capital receipt was verified by the
verification report[CXKY (2009) No.008] of Sichuan Xingrui Certified Public Accountants.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
On 19 January 2011, Hefei Meiling increase RMB 50 million in capital of Mianyang Meiling, of which RMB 95 million invested by the Company, a95% of total register capital while RMB 5 million invested by Zhongke Meiling, a5% of total capital occupied. The paid-in capital has been verified by Capital Verification Report［XYZH/2010CDA6040］from Chengdu Branch of Shinewing CPA CO., Ltd. In 2011, Zhongke Meiling entered into―Equity TransferAgreement‖ with Jiangxi Meiling Refrigeration Co., Ltd. 5 percent equity of Mianyang Meiling held by Zhongke Meiling was transferred to Jiangxi Meiling Refrigerator. In September 2013, Jiangxi Meiling Refrigeration was combined by Jiangxi Meiling Appliance Co., Ld, than 5 percent equity was transfer to Jiangxi Meiling Appliance.
Registration No. of the Business License of Corporation Legal Person: 510706000014939; organization code: 68610561-5; Address: No.35 Mianxing East Road, Gaoxin District, Mianyang City, Sichuan Province; Legal Representative: Liao Tao; Business Scope: R& D, manufacture and sales of cooling apparatus, electronic products and other fittings; import and export of the goods and technology (excluding the items prohibit by the laws and regulations, license required for restriction items)
4) Jiangxi Meiling Appliance Co., Ld.(Jiangxi Meiling Appliance Co.,) was a limited liability company jointly established by the Hefei Meiling Co., Ltd. and Mianyang Meiling on 23 May 2011. Register capital of the company totally as RMB 50 million, RMB 49.375 million invested by Hefei Meiling Co., Ltd,98.75% in total register capital while RMB 0.625 million invested by Mianyang Meiling , a1.25% in total register capital occupied. The initial investment RMB 10.50 million was received dated 13 May 2011 with RMB 10 million from the Company and RMB 0.5 million from Mianyang Meiling. Rest of the capital shall be invested fully within 2 years after the joint ventures established according to capital requirement. The initial investment capital were verified by the Capital Verification Report[JXKYZi(2011) No.090] issued from Jingdezhen Xingci CPA Co., Ltd. Second capital RMB 39.5 million was fully funded on 28 July 2011, Hefei Meiling Co., Ltd contributed RMB 39.375 million while Mianyang Meiling Company invested RMB 125,000, the contributions have been verified by the capital verification report[Jing Xing Kuai Yan Zi (2011) No.:134] issued from JDZ Xingci CPA Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 360200110004455; organization code: 57364516-4; Address: South part of Wutong Revenue, High-Tech Industrial Development District, Jingdezhen; Legal Representative: Liao Tao; Business Scope:R&D, manufacturing and sales of refrigerator and its accessories.
5) Hefei Meiling Appliance Marketing Co., Ltd. (Meiling Marketing Company for short) is the limited company jointly invested by the Meiling Co., Ltd. and Mianyang Meiling Company on 21 Oct. 2009. Registered capital and paid-up capital was RMB 10 million, including RMB 9.9 million invested by Meiling Co., Ltd., a99% of the registered capital;
Mianyang Meiling Company contributed RMB 0.1 million, a1% of the registered capital. The
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
above mentioned paid-up register capital have been verified by verification report of[Wan An Lian Xin Da Yan Zi (2009) No.074] issued by Anhui An Lian Xin Da Accounting Firm Co., Ltd. On 25 Nov. 2010, the Company increased capital RMB 45 million, registered capital amounting to RMB 55 million, including RMB 54.9 million contributed by the Company, a99.82% of the registered capital, while Mianyang Meiling invested RMB 0.1 million, a0.18% of the registered capital. The increased capital have been verified by verification report of[Wan Hua Shen Zheng Da Kuai Yan Zi (2010) No.1514] issued by Anhui Hua Shen Zhengda CPA Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340107000030092; Address: Woyun Road North, Lianhua Road East, Economy and Technology Development Zone, Hefei City; Legal Representative: Deng Xiaohui; Business Scope: refrigeration appliance, air-conditioner, washing machine, computer numerical control injection molding machine, computer water heater, plastic products, packaging and decorations, electronic products and accessories, department store sales.
6) Guangxi Huidian Home Appliance Co., Ltd. (Guangxi Huidian for short) established in March 2010 with registered capital of RMB 5 million. the Company invested RMB 1 million, accounted for20% of the registered capital; In 2014, the Company purchased minority equity of44%; and subsidiary of the Company Hefei Meiling Appliance Marketing Co., Ltd. and Jiangxi Meiling Appliance Co., Ld. entered into equity transferred agreement with minority shareholders respectively in 2015, transferred35.6% and0.4% equity of Guangxi Huidian held by the minority, after equity transferred completed in April 2015, the Company totally holds100% equity of Guangxi Huidian; enterprise type: limited company; address: Room 402, 403, 404 and 407, 4/F, Plant, Central District, No. 9 Huoju Road, Nanning City. Legal Representative: Zhou Wenhui; Business Scope: sales, installment and maintenance of Refrigerator and freezer, Washing machine and AC.
7) Luohe Meiling Appliance Marketing Co., Ltd. (Luohe Meiling for short) was established dated 10 December 2010 with registered capital of RMB 5 million. The Company invested RMB 1.85 million, accounted for37% of the registered capital. In 2013, the Company purchased minority equity of27%; acquired35.6% equity from minorities in 2014; and subsidiary of the Company Jiangxi Meiling Appliance Co., Ld. entered into equity transferred agreement with minority shareholders in 2015, transferred0.4% equity of Luohe Meiling held by the minority, after equity transferred completed in January 2015, the Company totally holds100% equity of the Luohe Meiling; enterprise type: limited company; address and business place: Middle section of the Huanghe Road, Yancheng District, Luohe City. Legal Representative: Liu Xiangyang Business Scope: sales and maintenance of home appliance. 8) Wuhu Meiling Appliance Marketing Co., Ltd. (Wuhu Meiling for short) was established dated 24 December 2010 with registered capital of RMB 6 million; the Company invested
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
RMB 2.16 million, accounted for36% of the registered capital; after the Company acquired62% equity from the minorities in 2014; the Company totally holds98% equity of the Wuhu Meiling; enterprise type: limited company; address and business place: No.1002, Qiaohong International Mall, Jinghu District, Wuhu City. Legal Representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
9) Changchun Meiling Appliance Marketing Co., Ltd. (Changchun Meiling for short) was established dated 22 December 2010 with registered capital of RMB 3million; the Company invested RMB 2.91 million, accounted for97% of the registered capital; enterprise type: limited company; address and business place: South Section 301, No. 21, Xi Minzhu Revenue, Chaoyang District, Changchun City; Legal Representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
10) Bengbu Meiling Appliance Marketing Co., Ltd. (Bengbu Meiling for short) was established dated 27 December 2010 with registered capital of RMB 3 million; the Company invested RMB 2.55 million, accounted for85% of the registered capital. In 2013, the Company purchased2.4% equity from the minority; and after the Company acquired6.1% equity from the minorities in 2014; the Company totally holds93.5% equity of the Bengbu Meiling; enterprise type: other limited company; address and business place: East house, 6/F, Office Building, East 9-18 Floor, New Shiji Sqaure, No. 1028, Huaihe Road, Bengbu City. Legal Representative: Cui Lianbin; Business Scope: sales and maintenance of home appliance.
11) Hengyang Meiling Appliance Marketing Co., Ltd. (Hengyang Meiling for short) was established dated 24 December 2010 with registered capital of RMB 3 million; the Company invested RMB 1.23 million, accounted for41% of the registered capital; after the Company acquired44% equity from the minorities in 2014; the Company totally holds85% equity of the Hengyang Meiling; enterprise type: limited company; address and business place: No.302, Yujia Community,Yujia Team, Jiangdong Village, Zhuhuai District, Hengyang City. Legal Representative: Liu Xiangyang; Business Scope: sales and maintenance of home appliance. 12) Nanchang Meiling Appliance Marketing Co., Ltd. (Nanchang Meiling for short) was established dated 5 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million, accounted for36% of the registered capital; after the Company acquired49% equity from the minorities in 2014; the Company totally holds85% equity of the Nanchang Meiling; enterprise type: limited company; address and business place: No. 192, Gaoxin7# Rd., Gaoxin District, Nanchang City; Legal representative: Liu Xiangyang; Business Scope: wholesales, sales and maintenance of home appliance.
13) Jingzhou Meiling Appliance Marketing Co., Ltd. (Jingzhou Meiling for short) was established dated 10 January 2011 with registered capital of RMB 4 million; Meiling Marketing invested RMB 2.4 million, accounted for60% of the registered capital. In 2013, acquired20%
equity from the minorities; after the Company acquired1% equity from the minorities in 2014;
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
the Company totally holds81% equity of the Jingzhou Meiling; enterprise type: limited company; address and business place: Room 1104, B Tower, (Jun Lin Tian Xia) Yuanlin Road, Shashi District, Jingzhou City; Legal representative: Liu Xiangyang; Business Scope: sales and maintenance of home appliance.
14) Shengyang Meiling Appliance Marketing Co., Ltd. (Shengyang Meiling for short) was established dated 26 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.844 million, accounted for94.8% of the registered capital. Enterprise type: limited company; address and business place: No.30, Renao Rd., Shenhe District, Shenyang City; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
15) Wuhan Meiling Appliance Marketing Co., Ltd. (Wuhan Meiling for short) was established dated 10 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB 4.55 million, accounted for91% of the registered capital. Enterprise type: limited company; Room 4, Room 5, 4/F, Building C, No.50 Jiefang Gongyuan Rd.,Jiang’an District, Wuhan City; Legal representative: Liu Xiangyang; Business Scope: refrigerator machine, air-conditioner, washing machine, electronic products and accessories and sales of general merchandise.
16) Zhengzhou Meiling Appliance Marketing Co., Ltd. (Zhengzhou Meiling for short) was established dated 17 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million, accounted for36% of the registered capital. In 2013, acquired10% equity from the minorities; and entered into equity transferred agreement with minority shareholders in 2015, transferred39% equity of Zhengzhou Meiling held by the minority, after equity transferred completed in April 2015, the Company totally holds85% equity of the Zhengzhou Meiling; enterprise type: limited company; address and business place: No.11, 4/F, No.18 Chengdong Rd. East, Guancheng District, Zhengzhou City; Legal representative: Liu Xiangyang; Business Scope: sales and maintenance of home appliance.
17) Shijiazhuang Meiling Appliance Marketing Co., Ltd. (Shijiazhuang Meiling for short) was established dated 14 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million, accounted for36% of the registered capital; after the Company acquired27.33% equity from the minorities in 2014; the Company totally holds63.33% equity of the Shijiazhuang Meiling; enterprise type: limited company; address and business place: No.669, Chengjiao Street South, Qiaoxi District, Shijiazhuang City; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
18) Mianyang Meiling Appliance Marketing Co., Ltd. (Mianyang Meiling for short) was established dated 27 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB 2.6 million, accounted for52% of the registered capital. In 2013, after the
Company purchased33% equity from minority, the Company totally holds85% equity of the
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Mianyang Meiling; enterprise type: limited company; address and business place: Commercial& Trade Plaza, Gaoxin District, Mianyang; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
19) Chengdu Meiling Appliance Marketing Co., Ltd. (Chengdu Meiling for short) was established dated 26 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB 4.17 million, accounted for83.4% of the registered capital; after the Company acquired1.6% equity from the minorities in 2014; the Company totally holds85% equity of the Chengdu Meiling; enterprise type: limited company; address and business place: No.22, Shuangfeng West Rd., Wuhou District, Chengdu City; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
20) Guiyang Meiling Appliance Marketing Co., Ltd. (Guiyang Meiling for short) was established dated 24 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 0.78 million, accounted for26% of the registered capital; in 2013 the Company acquired18% equity from the minorities; and entered into equity transferred agreement with minority shareholders in 2015, transferred42% equity of Guiyang Meiling held by the minority, after equity transferred completed in June 2015, the Company totally holds86% equity of the Guiyang Meiling; enterprise type: limited company; address and business place: No.16-3, Pubu Business Building, No. 19Yan’an West Rd., Yunyan District, Guiyang City; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
21) Fuzhou Meiling Appliance Marketing Co., Ltd. (Fuzhou Meiling for short) was established dated 25 January 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.97 million, accounted for99% of the registered capital; enterprise type: limited company; address and business place: 05, 22/F,Jin’an Building, Jinyuan Garden, No. 328 Liuyi North Rd.,Ji’an District, Fuzhou City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of home appliance.
22) Nanjing Meiling Appliance Marketing Co., Ltd. (Nanjing Meiling for short) was established dated 14 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.97 million, accounted for99% of the registered capital; enterprise type: limited company; address and business place: 14/F, Dongheng International Business Building, No. 288 Zhongshan South Rd., Baixia District, Nanjing City y; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
23) Hefei Meiling White Appliance Marketing Co., Ltd. (White Appliance for short) was established dated 21 January 2011 with registered capital of RMB 6 million; Meiling Marketing invested RMB 5.1 million, accounted for85% of the registered capital; the Company entered into equity transferred agreement with minority shareholders in 2015, transferred10% equity of White Appliance held by the minority, after equity transferred completed in February 2015, the
Company totally holds95% equity of the White Appliance; enterprise type: limited company;
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
address and business place: A-201, Huayi Science& Technology Park, Gaoxin District, Hefei City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of home appliance.
24) Taiyuan Meiling Appliance Marketing Co., Ltd. (Taiyuan Meiling for short) was established dated 18 January 2011 with registered capital of RMB 4 million; Meiling Marketing invested RMB 1.59 million, accounted for39.75% of the registered capital; In 2013, after the Company purchased45.5% equity from minority, the Company totally holds85.25% equity of the TaiyuanMeiling; enterprise type: limited company; address and business place: 6/F, Hanyuan Building, Qinxian North Street, Xiaodian District, Taiyuan City; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
25) Changsha Meiling Appliance Marketing Co., Ltd. (Changsha Meiling for short) was established dated 26 January 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB 1.8 million, accounted for36% of the registered capital; after acquired50% equity from the minority in 2014, the Company totally holds86% equity of the Changsha Meiling; enterprise type: limited company; address and business place: Room 301, Oriental Ginza, No. 348 Yuanda No.1 Rd., Furong District, Changsha City; Legal representative: Liu Xiangyang; Business Scope: sales and maintenance of home appliance.
26) Hohhot Meiling Appliance Marketing Co., Ltd. (Hohhot Meiling for short) was established dated 21 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.65 million, accounted for55% of the registered capital; In 2013, after the Company purchased28% equity from minority, the Company totally holds83% equity of the Hohhot Meiling; enterprise type: limited company; address and business place: No. 516, 4/F, Comprehensive Building, Jiangjun Garden, No. 139 Dongku Street, Xincheng District, Hohhot City; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
27) Hangzhou Meiling Appliance Marketing Co., Ltd. was established dated 17 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.655 million, accounted for88.5% of the registered capital; entered into the equity transfer agreement with minority shareholders in 2015, transferred6.5% equity of the Hangzhou Meiling Appliance Marketing Co., Ltd. held by minorities, after equity transfer complete in February 2015, the company holds95% equity of Hangzhou Meiling; enterprise type: limited company; address and business place: Room 609,1# building, Nanbei Shangwugang, Gongshu District, Hangzhou City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of home appliance.
28) Chongqing Meiling Appliance Marketing Co., Ltd. (Chongqing Meiling for short) was established dated 1 March 2011 with registered capital of RMB 3 million; Meiling Marketing
invested RMB 2.55 million, accounted for85% of the registered capital; enterprise type:
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
limited company; address and business place: No. 105, No. 106 and No.111, Dayang Gongqiao, Shapingba District, Chongqing City; Legal representative:Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
29) Kunming Meiling Appliance Marketing Co., Ltd. (Kunming Meiling for short) was established dated 28 Feb. 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.395 million, accounted for46.5% of the registered capital; In 2013, after the Company purchased40% equity from minority, the Company totally holds86.5% equity of the Kunming Meiling; enterprise type: limited company; address and business place: 6/F, No. 13 Longquan Rd., Kunming City; Legal representative: Hu Zhaogui; Business Scope: sales of home appliance and general merchandise.
30) Shanghai Meiling Appliance Marketing Co., Ltd. (Shanghai Meiling for short) was established dated 9 March 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.97 million, accounted for99% of the registered capital; enterprise type: limited company; address and business place: Room 201-9, No. 15, 152 Lane, Yanchang Rd., Shanghai City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of home appliance.
31) Nantong Meiling Appliance Marketing Co., Ltd. (Nantong Meiling for short) was established dated 8 March 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.74 million, accounted for58% of the registered capital; In 2013, after the Company purchased34% equity from minority, the Company totally holds92% equity of the Nantong Meiling; enterprise type: limited company; address and business place: Room 201, Funan Building, zhongbei Mansion, No. 351, Gongnong Road, Nantong City; Legal representative: Zhou Wenhui; Business Scope: sales and maintenance of home appliance.
32) Tianjin Meiling Appliance Marketing Co., Ltd. (Tianjin Meiling for short) was established dated 2 March 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.565 million, accounted for85.5% of the registered capital; enterprise type: limited company; address and business place: middle layer, No. 3001-96, economy and development centre, No. 9 Junling Rd., Electronic Industrial Park, North Gate, Jinnan District; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance. 33) Urumchi Meiling Appliance Marketing Co., Ltd. (Urumchi Meiling for short) was established dated 4 March 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.7 million, accounted for90% of the registered capital; enterprise type: limited company; address and business place: Room 505, Yinzuo Centre, No. 196 Tianjin South Rd., Urumchi City; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
34) Harbin Meiling Appliance Marketing Co., Ltd. (Harbin Meiling for short) was
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
established dated 6 April 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million, accounted for36% of the registered capital; the Company entered into equity transferred agreement with minority shareholders in September 2014, after acquired41.5% equity of the minority, the Company totally holds77.5% equity of the Harbin Meiling; enterprise type: limited company; address and business place: No.4, Hengshan Rd., Nangang Centre District, Jinkai Zone, Harbin City; Legal representative: Tang Yiliang; Business Scope: sales and maintenance of home appliance.
35) Beijing Meiling Appliance Marketing Co., Ltd. (Beijing Meiling for short) was established dated 28 March 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 2.97 million, accounted for99% of the registered capital; enterprise type: limited company; address and business place: No.23, Xinhua West Street, Majuqiao Town, Tongzhou District, Beijing; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
36) Lanzhou Meiling Appliance Marketing Co., Ltd. (Lanzhou Meiling for short) was established dated 25 March 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.215 million, accounted for40.50% of the registered capital; In 2013, after the Company purchased11% equity from minority, the Company totally holds51.5% equity of the Lanzhou Meiling; enterprise type: limited company; address and business place: No. 134, Jiayuguan West Rd., Chengguan District, Lanzhou City; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
37)Xi’an Meiling Appliance Marketing Co., Ltd.(Xi’an Meiling for short) was established dated 13 April 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.83 million, accounted for61% of the registered capital; after the Company acquired24% equity from the minority shareholders, the Company totally holds85% equity of theXi’an Meiling Appliance Marketing Co., Ltd.; enterprise type: limited company; address and business place: No.10715, 7/F, 1 Unit,#12 Building, Xinxing Junjin Garden, No. 369 Jinhua Rd., Xincheng District,Xi’an City; Legal representative: Hu Zhaogui; Business Scope: sales and maintenance of home appliance.
38) Guangzhou Meiling Appliance Marketing Co., Ltd. (Guangzhou Meiling for short) was established dated 13 May 2011 with registered capital of RMB 5 million; Meiling Marketing invested RMB 4.3 million, accounted for86% of the registered capital; the Company entered into equity transferred agreement with minority shareholders in 2014, transferred12% equity of Guangzhou Meiling held by the minority, after equity transferred completed in December 2014, the Company totally holds98% equity of the Guangzhou Meiling; enterprise type: limited company; address and business place: 2/F, No. 98 Tanxin Street, Dongheng Rd., Baiyun District, Guangzhou City; Legal representative: Zhou Wenhui; Business Scope: wholesales and
maintenance of home appliance.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
39) Jinan Meiling Appliance Marketing Co., Ltd. (Jinan Meiling for short) was established dated 3 June 2011 with registered capital of RMB 3 million; Meiling Marketing invested RMB 1.08 million, accounted for36% of the registered capital; enterprise type: limited company; address and business place: No.249, Huangqiao Industry Park, Donglihe West Rd., Tianqiao District, Jinan City; Legal representative: Liu Xiangyang; Business Scope: sales and maintenance of home appliance.
40) ChanghongRubaTradingCompany(Private)Limited (ChanghongRuba for short) was approved by―Reply on Review of Jointly Established a Manufacture and Sales Platform Project in Pakistan by Zhongshan Changhong Appliance Co.,Ltd‖[Yue Fa Gai Wai Zi (2011) No.958] issued by Development and Reform Commission of Guangdong Province dated 5 August 2011, and jointly invested by Zhongshan Changhong Appliance Co., Ltd and UAE RUBAGENERALTRADINGFZE (UAE RUBA for short). Register capital amounting to$ 6 million, Zhongshan Changhong Appliance Co., Ltd invested$ 3.6 million in cash, accounted for60% of the shareholding, while UAE RUBA contributes$ 2.4 million in cash with40% of the shares held. Register place located in Lahore, Pakistan; legal representative: Teng Guangsheng; business scope: sales of AC products and other home appliance.
41) Sichuan Changhong Air-conditioners Co., Ltd.(Changhong Air-conditioner for short), a limited liability company jointly set up by Sichuan Changhong and Changhong Chuangtou, was founded on November 28, 2008. Its registered capital was RMB 200 million upon establishment, of which, Sichuan Changhong invested RMB 298 million (RMB 210,088,900 invested by monetary capital while RMB 87,911,100 invested by real material), equivalent to RMB 198 million shares, accounting for99% of the registered capital; and Changhong Chuangtou invested RMB 3 million, accounting for1% of the registered capital with equivalent of RMB 2 million shares. The registered capital receipt was verified by the verification report[CGYYZ (2008) No.177] of Sichuan Guangyuan Certified Public Accountants Co., Ltd. and[HLTHYZ(2008) No.12-006] of Sichuan Henglitai Certified Public Accountants Co., Ltd. In December 2009, the Company obtained100% equity of Changhong Air-conditioner by consolidated under the same control.
Registration No. of the Business License of Corporation Legal Person: 510706000013788; organization code of No. 68236997-1; Address: No.35, Mianxing East Road, Gaoxin District, Mianyang City; Legal Representative: Li Wei; Business Scope:R&D, manufacturing, sales and after-sales services of air conditioners, ASHPWH and parts, equipment rental, external processing services of spare parts, and sales of metal materials (excluding gold and silver), sales, installment and services of mechanical and electrical equipment.
42) Zhongshan Changhong Appliance Co., Ltd.( Zhongshan Changhong), was the original Guangdong Changhong Electric Co., Ltd., and is a limited liability company jointly set up by Sichuan Changhong and China Minmetals on May 22, 2001. Its registered capital was RMB 80
million upon establishment, of which, Sichuan Changhong invested RMB 72 million, including
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
RMB 69.3 million biding for the estate/ non-estate from original Zhongshan Sanrong Air-conditioner Co., Ltd. And its patent use-right of RMB2.7 million, accounting for90% of the registered capital; Chine Minmetals invested RMB 8 million in monetary capital accounting10% of the registered capital. The Company changed its name originally from Guangdong Changhong Electric Co., Ltd in July 2003. In December 2009, the Company obtained90% equity of Zhongshan Changhong by consolidated under same control.10% equity held by China Minmetals has been transferred by Changhong Air-conditioner on April 11, 2010. On 25 May 2014, the Company increased RMB 36 million to Zhongshan Changhong, Changhong AC increased RMB 4 million. After capital increased, registered capital of Zhongshan Changhong turns to RMB 120 million, including RMB 108 million contributed by the Company, accounted for90% of the registered capital, Changhong AC invested RMB 12 million, accounted for10% of the registered capital.
Ended as 31 December 2014, registration No. of the Business License of Corporation Legal Person: 442000000290879; Legal Representative: Du Zhixiao; Address: Central Nantou Avenue, Nantou Town, Zhongshan City; Business Scope: air-conditioner, refrigerator and freezer, heat pump, water heater, air cooler, electric fan, humidifier, electric heater and spare parts of the above mentioned products, sales of products in and out of China. Engaged in import and export business of the self-produced products and raw materials, equipment and technology (excluding the items restricted by the State; no manage products of the state trading involved; pursuit to the procedures of the State for products with quota, license and trade management involved)
43) Hefei Meiling Group Holding Co., Ltd (Meiling Group), was the state-owned company originally approved byPeople’s Government of Hefei Province and established authorized by SASAC of Hefei City. On July 14, 2008,100% state-owned equity of Meiling Group has freely transferred to Xingtai Holding by Hefei SASAC. Agreement by the approval of< State-owned property agreement transfer from MeilingGroup>[ HGZCQ(2010)No.34] of Hefei SASAC on April 9, 2010,100% state-owned property of Meiling Group after partial assets and liabilities separated transferred to the Company from Xingtai Holding as amount of RMB 113.2 million. The re-registration of industrial and commercial procedure for Meiling Group after separated partial assets liability has finished on July 28, 2010. The new Meiling Group has register capital of RMB 80 million, and have been verified by the[AD(2010)YZD No.016] from Anhui Anding CPAs Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340100000010841; address: Main plant of2# South, Tangkou Road, Lianhua Road East,Economy&Technology Development Zone, Hefei; Legal Representative: Li Wei; Business Scope: Manufacture of washing machine, plastic products, fine welded pipe, cooling fittings, package products and decoration products; Self-produced products andraw&auxilary materials, machinery equipment, instrument and
sales of department store, refrigerator, ice box, air conditioner, small appliances and household
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
appliances.
44) Meiling Equator Appliance (Hefei) Co., Ltd.( Equator Appliance for short) was the Sino-foreign joint venture jointly set up by original Meiling Group and EQUATOR INVESTMENTS (USA) INC.( EQUATOR for short), which have been approved by the[SWZWFZZ(2004)No.0103] of Approval Certificate of Foreign Enterprise fromPeople’s Government of Anhui Province. Its registered capital wasUS$ 3 million upon establishment, of which, Sino company investedUS$ 2.25 million in machinery equipment, accounting75% of the registered capital while foreign company investedUS$ 0.5 million in monetary capital andUS$ 0.25 million in intangible assets, amounting toUS$0.75 million, accounting25% of the registered capital. The above mentioned investment verified by the verification report of[WYAYZ (2004) No.135] from Anhui Yongan CPAs Co., Ltd. In July 2007, approved by[HWJ(2007)No.136] from Foreign Trade Economic Cooperation Bureau of Hefei City,25% equity held by EQUATOR transferred to Anhui Meiling Electric Co., Ltd. Totally. TheCompany’s register capital came into RMB 24,793,200 after transference, and was not the joint-venture any more.25% equity owned by Anhui Meiling Electric Co., Ltd has been transferred totally to original Meiling Group in July 2009.
Registration No. of the Business License of Corporation Legal Person: 340100000004040; address: Meiling Industry Zone, Development Zone, Feidong Xinchang, Hefei City; Legal Representative: Huang Danian; Business Scope: Research, manufacture and sales of Roller washing machine, wave automatically washing machine, wave double-tube washing machine and other appliance; Manufactures and sales of the controller and matching line of refrigerator, washing machine, air-conditioner and other household appliance
45) Hefei Equator Appliance Co., Ltd.( Equator Appliance) was jointly set up by original Meiling Group and Yingkaite Appliance on September 26, 2007. Its register capital was RMB 12 million, among which, original Meiling Group invested RMB 8,670,600 in monetary capital, accounting72.255% in registered capital; Equator Appliance invested RMB 3,329,400 in the assessment value of intangible assets (land-use right), accounting27.745% of total registered capital. The investment being verified by[WYAZ(2004) No.135] from Anhui Yongan CPAs Co., Ltd.
Registration No. of the Business License of Corporation Legal Person: 340122000001532; address: (No.15 Jinyang Road) Meiling Industrial Zone, Development Zone, Feidong Xinchang, Hefei City; Legal Representative: Huang Danian; Business Scope: Manufacture and operation on cooling appliance, washing machine and plastic products; operational of the self-produced products onraw&auxilary materials as well asimport&export business (projects limited by the national excluded) 46) Hefei Meiling Nonferrous Metal Products Co., Ltd. (Nonferrous Metal) was the Sino-foreign joint venture jointly set up by original Meiling Group, Hefei Meiling Copper Co., Ltd. And Singapore Kim Shin Development Co., Ltd., which have been originally approved by the
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
[WJMWFZZ(1996)No.349] of Foreign Trade and Economic Committee of Anhui Province. Its registered capital wasUS$ 2.92 million upon establishment, of which, original Meiling Group investedUS$ 1.46 million (monetary capital), accounting50% of the registered capital, Hefei Meiling Copper Co., Ltd investedUS$ 0.584 million (monetary capital of RMB 0.18 million and real assets ofUS$ 0.404 million), accounting20% of registered capital while Singapore Kim Shin Development Co., Ltd investedUS$ 0.876 million (monetary capital), accounting30% of the registered capital. The above mentioned investment verified by the verification report of[HSWZ(1995) No.0737],[HSWZ(1996) No.328] and[HSWZ(1998) No.088] from Anhui CPAs Co., Ltd. In July 2008, approved by[HWS(2008)No.53] from Foreign Trade Economic Cooperation Bureau of Hefei City,30% equity and20% equity held by Singapore Kim Shin Development Co., Ltd and Hefei Meiling Copper Co., Ltd respectively transferred to original Meiling Group Totally. TheCompany’s register capital came into RMB 24,286,808.00 after transference, and was not the joint-venture any more.
Registration No. of the Business License of Corporation Legal Person: 340100000111925; address: Liaoyuan Road West, Xincheng Development Zone, Feidong County; Legal Representative: Huang Danian; Business Scope: Manufacture and sales various copper tube, line materials and other metal products
47) Hefei Meiling Packing Products Co., Ltd. (Packing Products) was the Sino-foreign joint venture jointly set up by Hefei Paper Box Plant, original Meiling Group and Singapore Anda Development Co., Ltd in December 1993, which approved by[HWJZ(1993) No.0444] of Foreign Trade and Economic Committee of Hefei City with its register capital ofUS$ 3.067 million. The register capital while established have been verified by[HKHY(1995) No.5] from original Hefei CPAs Co., Ltd. On December 30, 2002, being approved by[HWJ(2002) No.259] of foreign trade Economic Cooperation Bureau of Hefei City,48.28% equity owned by Hefei Paper Box Plant transferred to the Company. On June 17, 2005,25% equity owned by Singapore Anda Development Co., Ltd transferred to original Meiling Group freely by one-time. The Company turned into domestic-capital enterprise from foreign-capital enterprise with changed registered capital of RMB 18.4 million. The re-register of register capital being verified by[WCQYZ(2005) No.256] from Anhui CHengqin CPAs Co., Ltd. After equity transferred, the Company invested RMB 8.88 million accounting48.28% in register capital while Meiling Group invested RMB9.52 million with51.72% in register capital. Resolution from the 46th meeting of
6th
session of the Board, while purchasing Meiling Group, the assets and liabilities of Meiling Packaging Products Co., Ltd., which are not included in transfer-in assets, will derivate into the Hefei Xingmei Assets Management Co., Ltd., the former Meiling Packaging Products Co. reduced its capital as RMB 17.4 million, and registered changed for industrial and commerce have completed on 27 June 2011.
Registration No. of the Business License of Corporation Legal Person: 3401001007135;
Address: Meiling Industry Zone,Dong twenty bu, Hefei City; Legal Representative: Huang
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Danian; Business Scope: Manufacture and sales of corrugated board, paper boxes, paper element, EPS, foam package materials and aluminium foil sealing tape and housing rental.
(2) Major non-wholly-owned subsidiary
||||
|-|-|-|
|Shareholding ofminority|Gains/lossesattributable tominority in theYear|Dividenddistributed tominorityannounced in theYear|
|30%|730,019.90|-|

(3) Financial information for major non-wholly-owned subsidiary
Ending balance
Subsidiary
||||||
|-|-|-|-|-|
|Current assets|Non-current assets|Total assets|Current liabilities|Non-currentliability|
|112,718,923.57|19,554,830.69|132,273,754.26|35,729,066.21|-|

(Continued)
Opening balance
Subsidiary
||||||
|-|-|-|-|-|
|Current assets|Non-current assets|Total assets|Current liabilities|Non-currentliability|
|128,850,510.99|4,947,756.41|133,798,267.40|39,686,979.03|-|

(Continued)
Current Period
Subsidiary
||||
|-|-|-|
|Operation income|Net profit|Total comprehensiveincome|
|42,750,432.40|2,433,399.68|2,433,399.68|

(Continued)
A year earlier
||||
|-|-|-|
|Operation income|Net profit|Total comprehensiveincome|
|31,239,460.06|3,578,214.86|3,578,214.86|

(4) Major limitation on using enterprisegroup’s assets and liquidate debts of enterprise group: Nil
(5) Offering financial supporting or other supports for structured entity that included in consolidation statement scope: Nil
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
2. Changes ofowner’ equity shares in subsidiary and its impacts
|||||||
|-|-|-|-|-|-|
|Hefei WhiteHousehold Appliances|Hangzhou Meiling|Zhengzhou Meiling|Guangxi Huidian|Guiyang Meiling|Luohe Meiling|
|85.00%|88.50%|46.00%|64.00%|44.00%|99.60%|
|10.00%|6.50%|39.00%|36.00%|42%|0.40%|
|95.00%|95.00%|85%|100.00%|86.00%|100.00%|
|10.00|7.00|5.00|2.00|14.00|20,000.00|
|10.00|7.00|5.00|2.00|14.00|20,000.00|
|-305,138.77|-859,991.18|-2,964,276.36|-2,935,006.60|-895,946.91|21,463.41|
|305,148.77|859,998.18|2,964,281.36|2,935,008.60|895,960.91|-1,463.41|
|-305,148.77|-859,998.18|-2,964,281.36|-2,935,008.60|-895,960.91|1,463.41|
|-|-|-|-|-|-|
|-|-|-|-|-|-|

 Purchasedminority’s equity of marketing subsidiary in the Period, balance between the long-term equity investment newly obtained and the net assets shares enjoy according to the new share-holding proportion since purchasing date amounting to -7,958,934.41 Yuan in total, and reckoned into capital public reserve
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3. Equity in joint venture or affiliated enterprise
(1) Major joint venture or affiliated enterprise
||||||
|-|-|-|-|-|
|Main officeplace|Register place|Businessnature|Share holding(%)||
||||Directly|Indirectly|
|Lahore,Pakistan|Lahore|Manufactures,sales|-|40.00|
|Hefei|Hefei|Rental,agency|48.28|-|
|Mianyang|Mianyang|Sales|30.00|-|

(2) Financial information for major Joint venture: Nil
(3) Financial information for affiliated enterprise
|||||
|-|-|-|-|
|Ending balance / Current Period||||
|ChanghongRubaElectricCompany(Private)Ltd.|Hefei XingmeiAssetsManagementCo., Ltd.|Sichuan EjarNetworkTechnology Co., Ltd.|ChanghongRubaElectricCompany(Private)Ltd|
|80,909,600.18|4,047,926.00|932,327,169.16|61,531,111.48|
|10,140,355.75|941,721.50|128,984,498.65|1,695,264.18|
|46,680,248.17|24,515,216.88|3,162.84|16,469,584.73|
|127,589,848.35|28,563,142.88|932,330,332.00|78,000,696.21|
|32,471,532.63|1,822,764.74|903,717,516.40|58,747,740.71|
|-|-|-|-|
|32,471,532.63|1,822,764.74|903,717,516.40|58,747,740.71|
|95,118,315.72|26,740,378.14|28,612,815.60|19,252,955.50|
|38,047,326.29|12,910,254.56|8,583,844.68|7,701,182.20|
||||-|
||||-|
|6,209,378.89|||6,561,962.92|
|155,907.33|||235,752.83|
|31,993,854.73|12,910,254.56|8,583,844.68|1,139,219.28|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||||
|-|-|-|-|
||||-|
|53,465,851.90|718,954.00|779,965,255.17|43,186,053.61|
|41,481.34|-2,629.60|-31,655.82|20,480.19|
|-|4,755.05|-|-|
|1,017,466.19|-334,569.94|-21,387,184.40|987,548.20|
|-|-|-|-|
|-|-|-|-|
|-|-|-|-|
|-|-|-|-|

(4) Financial summary for non-important Joint venture and affiliate enterprise
||
|-|
|Ending balance / CurrentYear|
|24,608,280.78|
|-2,999,088.58|
|-|

 (5) major limitation on capital transfer ability to the Company from joint venture or affiliates: Nil
(6) excess loss occurred in joint venture or affiliates: Nil
(7) Unconfirmed commitment with joint venture investment concerned: Nil
(8) Intangible liability with joint venture or affiliates investment concerned: Nil
4. Major conduct joint operation: Nil
5. Structured body excluding in consolidate financial statement: Nil
9. Relevant risks related with financial instrument
The major financial instruments of the Company include borrowings, account receivables, account payables, transactional financial assets, transactional financial liabilities, the details of which are set out in Note 6. Risks related to these financial instruments include exchange risks
and interest rate risks. The management of the Company controls and monitors the risk
exposures to ensure the above risks are under control.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
In connection with exchange risks, in order to prevent from exchange risks arising from foreign currency transaction amount, foreign currency dominated loans and interest expenditure, the Company entered into several forward exchange contracts with banks. Fair value of the forward exchange contract which has been recognized as derivative financial instrument as of 31 December 2014 has been included in profits and losses. As export business is increasing, if risks that are out of control of the Company occur such as appreciation of RMB, the Company will mitigate the relevant risks by adjusting its sales policy.
TheCompany’s interest rate risk arises from bank borrowings and interest-bearing debt. Financial liabilities at floating rate expose the Company to cash flow interest rate risk, and financial liabilities at fixed rate expose the Company to fair value interest rate risk. The Company will determine the respective proportion of contracts at fixed and floating rates based on the prevailing market conditions. As of 30 June 2015, the interest-bearing debts mainly referred to borrowing contracts at floating rate denominated in RMB with total amount of 7,292,800.00 and borrowing contracts at fixed rate denominated in USD with total amount of 336,742,739.05. Risks relating to change of fair value of financial instruments arising from movement of interest rate mainly related to bank borrowings at fixed rate. As for borrowings at fixed rate, the Company aims to keep its floating rate. Risks relating to change of cash flow of financial instruments arising from movement of interest rate mainly related to bank borrowings at floating rate. The Company establishes its policy to keep floating rate for these borrowings so as to eliminate fair value risk arising from movement of interest rate.
10. Fair value
1. Assets and liabilities measured by fair value at year-end and level of fair value measurement
Fair value at period-end
Item
||||
|-|-|-|
|1st level|2nd level|3rd level|
||3,572,100.00||
||3,572,100.00||
||3,572,100.00||
||-||

1. Valuation technology adopted in continuous and non-continuous level II fair value
measurement, together with qualitative and quantitative information of major parameters
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Fair value represents the price a market participator can receive or needs to pay for disposing an asset or transferring a liability in an orderly transaction occurred on the measurement date. Our derivative contract is measured based on level II fair value, namely thecontract’s immediate quotation in a foreign exchange market on balance sheet date.
2. Assets and liabilities not measured by fair value but disclosed by fair value: Nil
11. Related parties and related transaction
(I)Relationship of related parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
|||||
|-|-|-|-|
|Type ofentity|Place ofregistration|Nature ofbusiness|Legalrepresentative|
|Stockcompany|Mianyang|Manufactureand sales|Zhao Yong|
|Limitedcompany|Mianyang|Manufactureand sales|Zhao Yong|

(2) Register capital and change thereof of controlling shareholder
||||
|-|-|-|
|Opening balance|Increaseduring theyear|Decreaseduring theyear|
|4,616,244,222|-|-|

 (3)Shares held by the controlling shareholder and its changes on equity
||||
|-|-|-|
|Amount of shares held|||
|Ending balance|Opening balance|Ratio at year-end|
|189,994,153|189,994,153|24.88%|

 2. Subsidiary
Found more in Note―VIII. 1 (1) Enterprise groupcomposition‖
3. Joint venture and Affiliated enterprise
Major Joint venture and affiliated enterprise of the Company found more in Note―VIII. 3 (1) major Joint venture and Affiliatedenterprise‖. Other Joint venture and affiliated enterprise that have related transactions occurred with the Company in the Year or occurred in last period, and with balance results: Joint venture and Affiliated enterprise Relationship
Hefei Meiling Solar Energy Technology Co., Joint venture and Affiliated enterprise of Meiling Group
Joint venture and Affiliated enterprise of subsidiary
Changhong Ruba Electric Company (Private)Ltd.
Zhongshan Changhong
Sichuan Tianyou Guigu Technology Co., Ltd. Joint venture and Affiliated enterprise of subsidiary
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Joint venture and Affiliated enterprise Relationship
Sichuan Air-Conditioner
Sichuan Ejar Network Technology Co., Ltd. Joint venture and Affiliated enterprise of the company Hefei Xingmei Assets Management Co., Ltd. Joint venture and Affiliated enterprise of the company 4. Other related parties
Other related parties Relationship
Control by same controlling shareholder and ultimate PT.ChangHongElectriCinDonesia
controller
Control by same controlling shareholder and ultimate Chengdu Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate Fuzhou Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate Guangdong Changhong Electrics Co., Ltd.
controller
Control by same controlling shareholder and ultimate Guangdong Changhong Ridian Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Hefei Changhong Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate Huayi Compressor Co., Ltd.
controller
Control by same controlling shareholder and ultimate Jinan Lejiayi Trading Co., Ltd.
controller
Jiangxi Changhong Electronic Technology Development Control by same controlling shareholder and ultimate Co., Ltd. controller
Control by same controlling shareholder and ultimate Kunming Yijiahong Trade Co., Ltd.
controller
Control by same controlling shareholder and ultimate Lejiayi Chain Management Co., Ltd.
controller
Control by same controlling shareholder and ultimate Mianyang Hongfa Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Mianyang Lejiayi Trading Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Hongrui Electrics Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan CCO Display Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Hongxin Software Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Packing& Printing Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Power Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Electronic System Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong International Hotel Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Jijia Jinggong Co., Ltd.
controller
Sichuan Changhong Precision Electronic Technology Co., Control by same controlling shareholder and ultimate Ltd. controller
Control by same controlling shareholder and ultimate Sichuan Changhong Minsheng Logistic Co., Ltd.
controller
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Other related parties Relationship
Control by same controlling shareholder and ultimate Sichuan Changhong Mold Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Devices Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Xinrui Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong New Energy Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Taiyuan Lejiayi Trading Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate Tianjin Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate CHANGHONG ELECTRIC (AUSTRALIA)
controller
Control by same controlling shareholder and ultimate Zhongshan Guanghong Mold Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Chongqing Hongshenghuo Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate 081 Electronic Group Co., Ltd.
controller
Control by same controlling shareholder and ultimate 081 Electronic Group Sichuan Liyuan Electronic Co., Ltd.
controller
Control by same controlling shareholder and ultimate Mianyang Hongrun Electronic Co., Ltd.
controller
Control by same controlling shareholder and ultimate Changhong (H.K.) Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Huafeng Corp. Group
controller
Control by same controlling shareholder and ultimate Sichuan Kuaiyidian Appliance Service Chain Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Hongyu Metal Manufacture Co., Ltd.
controller
Control by same controlling shareholder and ultimate Wandao Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate ChangHong Electric Middleeast FZE
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Gerun Renewable Resources Co., Ltd.
controller
Control by same controlling shareholder and ultimateXi’an Lejiayi Trading Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Jiahong Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Power Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Lighting Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Hongwei Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Chengdu Changhong Electric Technology Co., Ltd.
controller
Guangyuan Hongcheng Industrial Co., Ltd. Control by same controlling shareholder and ultimate
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Other related parties Relationship
controller
Control by same controlling shareholder and ultimate Guangyuan Changhong Molding Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate Sichuan Changhong International Travel Agency Ltd,
controller
Control by same controlling shareholder and ultimate Sichuan Ejar Network Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate BVCH Optronics (Sichuan) Co., Ltd.
controller
Affiliate enterprise of controlling shareholder and actual Mianyang Highly Electric Co., Ltd.
controller
Affiliate enterprise of controlling shareholder and actual Sichuan Changhe Technology Co., Ltd.
controller
Affiliate enterprise of controlling shareholder and actual Sichuan Changxin Refrigeration Parts Co., Ltd.
controller
Fuyang Weiao Meiling Appliance Marketing Co., Ltd. A stock-jointly enterprise of the subsidiary before June 2015 (II) related transactions
1. Purchasing commodity
|||||
|-|-|-|-|
||Content|Current Year(10 thousand Yuan)||
||Purchasing commodity|7,272.32||
||Purchasing commodity|28,354.30||
||Purchasing commodity|17,951.28||
||Purchasing commodity|10,254.28||
||Purchasing commodity|2,634.77||
||Purchasing commodity|346.07||
||Purchasing commodity|-||
||Purchasing commodity|37.89||
||Purchasing commodity|163.70||
||Purchasing commodity|471.38||
||Purchasing commodity|305.37||
||Purchasing commodity|99.22||
||Purchasing commodity|34.77||
||Purchasing commodity|2,111.91||
||Purchasing commodity|49.27||
||Purchasing commodity|97.94||
||Purchasing commodity|4,355.12||
||Purchasing commodity|-||
||Purchasing commodity|17.75||
||Purchasing commodity|181.61||
||Purchasing commodity|9,365.67||
||Purchasing commodity|10,254.53||
|Sichuan Jinghong Packaging Products Co., Ltd.|Purchasing commodity|-|1,095.17|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Content|Current Year(10 thousand Yuan)|
||94,359.15|

 2.labor service receive
|||
|-|-|
|Content|Current Year|
|labor service receive|174,173,170.24|
|labor service receive|57,354,122.67|
|labor service receive|4,422,250.09|
|labor service receive|581,150.94|
|labor service receive|26,378.96|
|labor service receive|-|
|labor service receive|12,279.45|
|labor service receive|4,304.00|
|labor service receive|14,390.60|
|labor service receive|8,846.15|
||236,596,893.10|

 3. receive fuels and energy
|||
|-|-|
|Content|Current Year|
|receive fuels and energy|192,958.98|
|receive fuels and energy|5,321,532.77|
||5,514,491.75|

 4. Sales of goods/ labor service providing
||||
|-|-|-|
||Content|Current Year(10 thousand Yuan)|
||Sales of goods|54,224.47|
||Sales of goods|-|
||Sales of goods|1,697.64|
||Sales of goods|5,206.48|
||Sales of goods|-|
|Mianyang Lejiayi Trading Chain Co., Ltd.|Sales of goods|104.48|
|Lejiayi Chain Management Co., Ltd.|Sales of goods|178.30|
||Sales of goods|-8.49|
||Sales of goods|92.42|
||Sales of goods|27,291.35|
||Sales of goods|1.38|
||Sales of goods|53.85|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Content|Current Year(10 thousand Yuan)|
|Sales of goods|2,216.58|
|Sales of goods|-2.56|
|Sales of goods|2.44|
|Sales of goods|-|
|Sales of goods|75.79|
|Sales of goods|14.70|
|Sales of goods|-|
|Sales of goods|-|
|Sales of goods|478.27|
|Sales of goods|21.16|
|Sales of goods|14.92|
|Sales of goods|0.08|
|Sales of goods|2.45|
|Sales of goods|286.92|
|Sales of goods|-|
|Sales of goods|445.82|
|Sales of goods|209.32|
|Sales of goods|-|
|Sales of goods|22.76|
|Sales of goods|4.20|
|Sales of goods|3.13|
|Sales of goods|-|
|Sales of goods|-|
|Sales of goods|-|
|Sales of goods|-|
|Sales of goods|0.03|
|Sales of goods|2.99|
|Sales of goods|27,806.61|
|Sales of goods|0.46|
|Sales of goods|2,630.30|
|Sales of goods|55.73|
|Sales of goods|1,335.98|
|Sales of goods|-|
|Sales of goods|333.75|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Content|Current Year(10 thousand Yuan)|
||124,803.71|

 Businesses between the Company and its connected persons are generally conducted under market operation rules as if they were the same as other business counterparties. For price of sale or purchase and provision of other labor service between the Company and its related parties, the state pricing is applicable if the pricing do exists; in case of absence of such state pricing, price is determined under market price; in case of absence of such market price, price is determined by both parties at actual cost plus reasonable expenses; for some special services, the price of which cannot be determined under the rule of cost plus expense, the price shall be determined by both parties by negotiation.
5 Fuel and energy providing
|||
|-|-|
|Content|Current Year|
|Fuel and energy providing|315,249.10|
|Fuel and energy providing|11,959.67|
|Fuel and energy providing|68.38|
|Fuel and energy providing|751.56|
|Fuel and energy providing|218.23|
|Fuel and energy providing|211,756.53|
|Fuel and energy providing|3,255,867.17|
|Fuel and energy providing|1,173.07|
|Fuel and energy providing|-|
||3,797,043.71|

 6 related rental
(1) Renting
||||
|-|-|-|
|Lessee|Type ofassetsleasing|Leasing incomerecognized inthis year|
|Sichuan Changhong Jijia Jinggong Co., Ltd.|Plant|233,280.00|
|Sichuan Changhong Jijia Jinggong Co., Ltd.|Forklifttruck|23.12|
|Sichuan Changhong Mold Technology Co.,Ltd.|Plant|647,190.00|
|Sichuan Changhong Xinrui Technology Co.,Ltd.|Forklifttruck|389.15|
|BVCH Optronics (Sichuan) Co., Ltd.|Goods lift|63,720.00|
|Guangdong Changhong Electrics Co., Ltd.|Plant|143,924.24|
|Guangdong Changhong Electrics Co., Ltd.|Trade center|492,170.06|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||||||||
|-|-|-|-|-|-|-|-|-|
||Lessee|||Type ofassetsleasing||Leasing incomerecognized inthis year|||
||Guangdong Changhong Ridian TechnologyCo., Ltd.|||2# living area||14,472.57|||
||Sichuan Hongwei Technology Co., Ltd.|||2# living area||3,393.06|||
||Sichuan Changhong Minsheng Logistic Co.,Ltd.|||2# living area||24,690.82|||
||Sichuan Changhong Minsheng Logistic Co.,Ltd.|||Trade center||3,388.28|||
||Zhongshan Guanghong Mold Technology Co.,Ltd.|||2# living area||5,829.64|||
||Sichuan Changhong Packing & Printing Co.,Ltd.|||Rental ofwarehouse||2,264.15|||
||Sichuan Changhong Mold Technology Co.,Ltd.|||Rental ofwarehouse||32,943.40|||
||Sichuan Changhe Technology Co., Ltd.|||Rental ofwarehouse||135.85|||
||Sichuan Changxin Refrigeration Parts Co., Ltd.|||Rental ofwarehouse||452.83|||
|Mianyang|||||Rental of||||
||S|ichuan Jinghong Packaging Products Co., Ltd|.||||-|679.25|
|Refrigeration|||||warehouse||||
||Sichuan Changhong Mold Technology Co.,Ltd.|||Rental of Plant||225,960.00|||
||Sichuan Changhong Jijia Jinggong Co., Ltd.|||Rental of Plant||67,032.00|||
||Sichuan Changhong Jijia Jinggong Co., Ltd.|||Machineryequipment||49,743.59|||
|||||||2,011,002.76|||

 (2) Lessee of related parties
||||
|-|-|-|
|Lessee|Type of assetsleasing|Leasing incomerecognized in thisyear|
|ChanghongAir-Conditioner|Plant|3,711,585.62|
|ZhongshanChanghong|Warehouse|280,000.00|
|MianyangRefrigeration|Staff dormitory|2,800.00|
|Mianyangsoftware|Office room|13,596.00|
|Appliancemarketing|Office room|49,743.59|
|||4,215,422.33|

 7. Related guarantee
|||||
|-|-|-|-|
|Sponsored party|Maximum guaranteeamount|Start|End|
|ZhongshanChanghong|100,000,000.00|2014.11.01|2015.11.01|
|Zhongshan|80,000,000.00|2015.03.30|2016.03.29|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||||
|-|-|-|-|
|Sponsored party|Maximum guaranteeamount|Start|End|
|Changhong||||
|ZhongshanChanghong|120,000,000.00|2014.12.03|2015.12.03|
|Hefei Meiling|100,000,000.00|2014.11.01|2015.11.01|
|Hefei Meiling|80,000,000.00|2015.03.30|2016.03.29|
|Hefei Meiling|120,000,000.00|2014.12.03|2015.12.03|

8. Assets transfer, debt restructuring of related parties
|||
|-|-|
|Type|Current Year|
|Purchasing fixedassets|2,464,230.77|
|Purchasing fixedassets|495,283.02|
|Purchasing fixedassets|329,059.83|
|Purchasing fixedassets|59,829.06|
|Purchasing fixedassets|-|
|Purchasing fixedassets|-|
|Fixed assets sold|15,035.60|
|Fixed assets sold|-|

9. Related transaction with Changhong Finance Company
(1) saving balance
|||
|-|-|
|Opening balance|Ending balance|
|1,040,209,426.68|986,230,115.61|

 (2) notes discounted
|||
|-|-|
|Bank acceptancebook discounted amount|Bank acceptancediscountedamount|
|690,307,526.33|682,830,807.37|

 (3) notes issued
|||
|-|-|
|Issuing unit|Note amount|
|Sichuan Changhong GroupFinance Co., Ltd.|707,767,370.55|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
(III) Come and go balance with related parties
1. Receivables
|||||
|-|-|-|-|
|Related parties|Ending balance|||
||Book balance|Bad debtprovision|Book balance|
|Sichuan Changhong Electric Co., Ltd.|28,089,032.01|-|6,775,359.64|
|Sichuan Changhong Electronics HoldingGroup Co., Ltd.|2,275,111.97|-|2,275,111.97|
|Sichuan Changhong Mold Technology Co.,Ltd.|190,728.60|-|207,551.84|
|Sichuan Changhong Xinrui Technology Co.,Ltd.|2,424,835.04|-|2,078.83|
|ChanghongEuropeElectrics.r.o|699,340.82||-|
|Chongqing Hongshenghuo Trading Co., Ltd.|534,632.00||-|
|Hefei Changhong Industrial Co., Ltd.|2,006,971.17|-|2,161,717.28|
|Huayi Compressor Co., Ltd.|263,800.00|-|1,063,400.00|
|Sichuan Changhong International Hotel Co.,Ltd.|3,340,000.00|-|4,050,000.00|
|Sichuan Changhong Jijia Jinggong Co., Ltd.|6,450,682.20|-|297,217.00|
|Sichuan Changhong Minsheng Logistic Co.,Ltd.|92,104.72|-|-|
|Sichuan Kuaiyidian Appliance Service ChainCo., Ltd.|1,199,935.75|-|200,895.77|
|Sichuan Changhong Precision ElectronicTechnology Co., Ltd.|235,643.84|-|61,041.23|
|Changhong (H.K.) Trading Co., Ltd.|179,424,265.83|-|110,975,853.15|
|Guangdong Changhong Ridian TechnologyCo., Ltd.|120,000.00|-|120,000.00|
|Chengdu Changhong Minsheng Logistic Co.,Ltd.|-|-|42,000.00|
|081 Electronic Group Co., Ltd.|1,986,640.00|-|2,086,000.00|
|Sichuan Changhong Electronic Devices Co.,Ltd.|-|-|64,949.99|
|Chengdu Changhong Electric Technology Co.,Ltd.|1,835,245.20||5,309,045.20|
|Sichuan Changhong Gerun RenewableResources Co., Ltd.|0.60|-|1,855.46|
|Chengdu Changhong Property Co., Ltd.|783.90||-|
|Sichuan Hongwei Technology Co., Ltd.|3,016.00||-|
|Sichuan Changhong Devices Technology Co.,Ltd.|451,369.02||-|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||||
|-|-|-|-|
|Related parties|Ending balance|||
||Book balance|Bad debtprovision|Book balance|
|Yibing Hongxing Electronics Co., Ltd.|1,058,049.10|-|1,058,049.10|
|Sichuan Changhong Packing & Printing Co.,Ltd.|2,400.00|-|-|
|Sichuan Ejar Network Technology Co., Ltd.|55,283,643.00||-|
|Hefei Meiling Solar Energy Technology Co.,|-|-|50,010.80|
|Fuyang Weiao Meiling Appliance MarketingCo., Ltd.|-|-|10,628,035.60|
|CHANGHONGRUBAELECTRICCO.,LTD|32,290,396.00|-|24,626,053.78|
|Anhui Xinhao PDP Co., Ltd.|630,000.00|-|-|
|Mianyang Highly Electric Co., Ltd.|172,800.00|-|172,800.00|
|Sichuan Changxin Refrigeration Parts Co.,Ltd.|6,521,621.96||-|
|Sichuan Changhong Electric Co., Ltd.|6,791,777.04|-|7,756,082.59|
|Sichuan Kuaiyidian Appliance Service ChainCo., Ltd.|-|-|176,653.43|
|Sichuan Changhong Mold Technology Co.,Ltd.|-|-|171,714.91|
|Mianyang Hongfa Technology Co., Ltd.|583,346.50|-|497,968.81|
|Sichuan Changhong Electric Co., Ltd.|-|-|13,500.00|
|Sichuan Ejar Network Technology Co., Ltd.|156,000.00||-|
||335,114,172.27||180,844,946.38|

 2. payables
|||
|-|-|
|Related parties|Ending balance|
|Sichuan Changhong Electronics Holding GroupCo., Ltd.|60,553.56|
|Sichuan Changhong Electric Co., Ltd.|33,591,932.78|
|Sichuan Changhong Mold Technology Co., Ltd.|121,597,507.38|
|Huayi Compressor Co., Ltd.|117,594,656.62|
|Sichuan Changhong Jijia Jinggong Co., Ltd.|118,597,275.01|
|Sichuan Changhong Minsheng Logistic Co., Ltd.|33,267,989.86|
|Sichuan Changhong Packing & Printing Co., Ltd.|16,873,485.63|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Related parties|Ending balance|
|Sichuan Changhong Devices Technology Co., Ltd.|19,187,345.59|
|Mianyang Hongrun Electronic Co., Ltd.|1,844,104.93|
|Sichuan Changhong Precision ElectronicTechnology Co., Ltd.|3,134,554.35|
|081 Electronic Group Sichuan Liyuan ElectronicCo., Ltd.|485,405.85|
|Sichuan Changhong New Energy Technology Co.,Ltd.|179,142.81|
|Sichuan Changhong Lighting Technology Co., Ltd.|23,858.00|
|Sichuan Changhong Power Co., Ltd.|38,594.78|
|Sichuan Hongyu Metal Manufacture Co., Ltd.|443,491.64|
|Sichuan Kuaiyidian Appliance Service Chain Co.,Ltd.|699,618.82|
|Sichuan Changhong Electronic Devices Co., Ltd.|-|
|Sichuan Hongwei Technology Co., Ltd.|207,616.50|
|Sichuan Changhong International Hotel Co., Ltd.|9,648.00|
|Sichuan Changhong Gerun Renewable ResourcesCo., Ltd.|10,503.63|
|Chengdu Changhong Minsheng Logistic Co., Ltd.|-|
|Sichuan Changhong Xinrui Technology Co., Ltd.|2,433,568.92|
|Sichuan Changhong International Travel AgencyLtd,|11,543.00|
|Mianyang Hongfa Technology Co., Ltd.|113,000.00|
|Guangdong Changhong Electrics Co., Ltd.|3,044,517.95|
|Guangdong Changhong Ridian Technology Co.,Ltd.|492,287.22|
|Zhongshan Guanghong Mold Technology Co., Ltd.|-|
|Sichuan Changxin Refrigeration Parts Co., Ltd.|16,355,543.02|
|Mianyang Highly Electric Co., Ltd.|12,584,630.43|
|Sichuan Changhe Technology Co., Ltd.|426,429.27|
|Sichuan Changhong Electric Co., Ltd.|234.16|
|Mianyang Lejiayi Trading Chain Co., Ltd.|-|
|Lejiayi Chain Management Co., Ltd.|3,594.67|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Related parties|Ending balance|
|Sichuan Changhong Mold Technology Co., Ltd.|1.99|
|Chongqing Hongshenghuo Trading Co., Ltd.|-|
|Mianyang Lejiayi Trading Chain Co., Ltd.|882.41|
|Sichuan CCO Display Technology Co., Ltd.|74,587.00|
|081 Electronic Group Sichuan Liyuan ElectronicCo., Ltd.|25.55|
|Sichuan Changhong Gerun Renewable ResourcesCo., Ltd.|49,845.58|
|Guangyuan Changhong Molding Technology Co.,Ltd.|-|
|Guangyuan Hongcheng Industrial Co., Ltd.|-|
|CHANGHONG ELECTRIC (AUSTRALIA)|7,153.58|
|Sichuan Changhong New Energy Technology Co.,Ltd.|0.01|
|Hefei Meiling Solar Energy Technology Co.,|130,400.00|
|Fuyang Weiao Meiling Appliance Marketing Co.,Ltd.|-|
|Sichuan Changhong Electronics Holding GroupCo., Ltd.|4,124.00|
|Sichuan Changhong Electric Co., Ltd.|5,666,571.58|
|081 Electronic Group Sichuan Liyuan ElectronicCo., Ltd.|3,819.59|
|Sichuan Changhong Minsheng Logistic Co., Ltd.|600,801.87|
|Changhong (H.K.) Trading Co., Ltd.|81,450.02|
|Sichuan Changhong Mold Technology Co., Ltd.|1,486,672.97|
|Sichuan Changhong Jijia Jinggong Co., Ltd.|361,466.64|
|Sichuan Changhong Gerun Renewable ResourcesCo., Ltd.|10,000.00|
|Sichuan Changhong Precision ElectronicTechnology Co., Ltd.|22,430.00|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Related parties|Ending balance|
|Sichuan Kuaiyidian Appliance Service Chain Co.,Ltd.|12,881,261.25|
|Sichuan Changhong Xinrui Technology Co., Ltd.|-|
|Huayi Compressor Co., Ltd.|1,190,779.00|
|Sichuan Changhong Packing & Printing Co., Ltd.|56,068.00|
|Sichuan Changhong International Travel AgencyLtd,|111,546.50|
|Mianyang Hongrun Electronic Co., Ltd.|78.00|
|Sichuan Changhe Technology Co., Ltd.|-|
|Mianyang Highly Electric Co., Ltd.|527,934.86|
|Sichuan Changxin Refrigeration Parts Co., Ltd.|49.20|
|Sichuan Changhong Electric Co., Ltd.|9,889,699.80|
||536,470,283.78|

 (IV) Commitments from related parties: Nil
12. share-based payment: nil
13. contingency
1.Pending action or possible liabilities formed from arbitration: Nil
2. Contingency from external guarantee: Nil
3. other contingency:
On 4 June 2013, the Notice of Stop the Promotion Policy of Energy-Saving Appliances Subsidy[CJ (2013) No.210] was issued jointly by Ministry of Finance, NDRC and MIT. The consumers, no longer be favor in the central financial subsidies while purchasing five types energy efficient appliances as AC, FPTV, refrigerator, washing machine and water heater since 1 June 2013. Enterprise with efficient appliances promoted should collected and sorting data of the product manufacture and sales as soon as possible, entered relevant information to the―People-benefit project system of energy-savingproducts‖ on time; at the same time, prepared annual liquidation report of the subsidies, reported to local (place of registration) finance authority, development& reform commission and MIT for approval, reported level by level after approval to Ministry of Finance, NDRC and MIT before 30 June 2013. Ministry of Finance, NDRC and MIT will carry out subsidy liquidation according to the reported data and relevant approval results.
Relevant data has been submit to Ministry of Finance, NDRC and MIT. The ultimate liquidation results
for relevant energy-saving subsidy of AC and refrigerator are not received by the Company up to 30 June
2015. and the results may impact the energy-saving subsidy of the Company, which are required or not yet
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
required.
14. Commitments
15. Events occurring after the balance sheet date
1. important non-adjustment items: nil
2. profit distribution
In line with the Notice of Profit Distribution Implementation for Year of 2014, the Company carried out 0.6 Yuan (tax included) in cash for every 10 shares held by all shareholders, based on the total share capital 763,739,205 shares in the reporting period, and cash 45,824,352.30 Yuan (tax included)are distributed in total.
3. major sales return: nil
4. Other than the above mentioned events, the Company have no other events occurred after balance sheet date.
16. Other significant matters
1. correction of previous perios and influence: nil
2. debt restructuring: nil
3.assets replacement: nil
4.pension plan: nil
5.discontinuing operation: nil
6. branch information
In 10 thousand Yuan
||||||
|-|-|-|-|-|
|Ice cuber|AC|Marketing|Other|Sales in branch|
|418,011.35|263,735.41|195,597.93|12,202.99|246,855.95|
|182,869.15|258,588.07|195,597.93|5,636.57|-|
|235,142.20|5,147.33|-|6,566.42|246,855.95|
|410,779.98|258,224.78|194,714.60|11,822.75|246,876.99|
|7,231.37|5,510.63|883.33|380.24|-|
|831,602.66|298,330.27|83,424.08|18,588.89|193,926.56|
|461,743.09|223,226.07|106,175.85|8,760.91|108,270.99|
|6,642.52|1,733.45|8.69|215.74|3.67|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||||
|-|-|-|-|-|
|Ice cuber|AC|Marketing|Other|Sales in branch|
|6,018.10|4,043.39|7.93|269.95|30.57|
|32,395.69|27,798.33|18,489.24|1,394.44|884.86|

7. other major transactions and events shows impact oninvestor’s decision-making: nil
17. Notes to main items of financial statement of parent company
1. Account receivable
(1) Risk structure of account receivable
Ending amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Ratio(%)|Amount|Ratio(%)|
|-|-|-|-|
|-|-|-|-|
|423,394,985.78|36.94|25,337,881.94|5.98|
|722,669,475.89|63.06|-|-|
|1,146,064,461.67|100.00|25,337,881.94|2.21|
|-|-|-|-|
|1,146,064,461.67|100.00|25,337,881.94|2.21|

 (Continued)
Opening amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Ratio(%)|Amount|Ratio(%)|
|-|-|-|-|
|-|-|-|-|
|258,239,547.96|31.25|16,578,700.15|6.42|
|568,186,736.90|68.75|||
|826,426,284.86|100.00|16,578,700.15|2.01|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Opening amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Ratio(%)|Amount|Ratio(%)|
|826,426,284.86|100.00|16,578,700.15|2.01|

 1) Account receivable with single significant amount and withdrawal bad debt provision single:
2) Account receivable with Withdrawal of bad debt provision by aging account in combination 1
||||||
|-|-|-|-|-|
|Ending amount|||||
|Book balance||Bad debtprovision|Book balance||
|Amount|Ratio||Amount|Ratio|
|413,605,509.07|5%|20,680,275.45|248,400,750.99|5%|
|3,936,413.61|15%|590,462.04|6,522,478.61|15%|
|2,586,755.54|35%|905,364.44|-|35%|
|232,283.45|55%|127,755.90|232,283.45|55%|
|-|85%|-|210,000.00|85%|
|3,034,024.11|100%|3,034,024.11|2,874,034.91|100%|
|423,394,985.78||25,337,881.94|258,239,547.96||

 3) Account receivable without bad debt provision withdrawal in combination 2
Combination Book balance
Connected amount between related parties 664,250,944.50 Account receivable with L/C 58,418,531.39 Total 722,669,475.89 4) No account receivable with single minor amount but withdrawal single item bad debt provision
(2) Reversal of bad debt provision in the Year: Nil
(3) Account receivable actually written-off in the Year: Nil
(4) Arrears of the shareholders holding more than5% (including5%) shares with voting rights of the Company: Nil
(5) The top five account receivable at year-end has RMB 367,381,649.46 in total, a32.06% in total account receivable.
(6) Account receivable from related parties
|||
|-|-|
|Relatedrelationship|Amount|
|Under the|17,861,957.69|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
|||
|-|-|
|Relatedrelationship|Amount|
|same control||
|Subsidiary|6,216,345.13|
|Under thesame control|699,340.82|
|Subsidiary|60,838,541.23|
|Subsidiary|53,091,201.23|
|Subsidiary|43,469,809.41|
|Subsidiary|39,320,707.36|
|Subsidiary|36,688,426.71|
|Subsidiary|35,682,023.97|
|Subsidiary|30,132,738.31|
|Subsidiary|28,439,049.99|
|Subsidiary|28,113,948.91|
|Subsidiary|27,736,393.90|
|Subsidiary|23,604,756.26|
|Subsidiary|21,588,571.29|
|Subsidiary|19,675,222.12|
|Subsidiary|18,859,578.69|
|Subsidiary|18,403,878.42|
|Subsidiary|16,865,714.04|
|Subsidiary|16,218,910.02|
|Subsidiary|15,591,837.76|
|Subsidiary|14,283,750.04|
|Subsidiary|14,150,290.97|
|Subsidiary|13,451,788.87|
|Subsidiary|11,930,284.32|
|Subsidiary|10,019,018.55|
|Subsidiary|9,800,419.73|
|Subsidiary|9,335,659.74|
|Subsidiary|8,649,541.15|
|Subsidiary|7,176,665.43|
|Subsidiary|6,352,938.71|
|Subsidiary|1,633.73|
||664,250,944.50|

(7) Account receivable de-recognized: Nil
2. Other account receivable
(1) Risk structure of other account receivable
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Ending amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Ratio (%)|Amount|Ratio (%)|
|-|-|-|-|
|-|-|-|-|
|3,970,331.08|8.94|1,248,160.31|31.44|
|40,433,118.76|91.06|-|-|
|44,403,449.84|100.00|1,248,160.31|2.81|
|-|-|-|-|
|44,403,449.84|100.00|1,248,160.31|2.81|

 (Continued)
Opening amount
|||||
|-|-|-|-|
|Book balance||Bad debt provision||
|Amount|Ratio (%)|Amount|Ratio (%)|
|-|-|-|-|
|-|-|-|-|
|4,821,810.59|8.52|1,702,368.33|35.30|
|51,791,307.54|91.48|||
|56,613,118.13|100.00|1,702,368.33|3.01|
|2,000.00|-|2,000.00|100.00|
|56,615,118.13|100.00|1,704,368.33|3.01|

 1) Other account receivable with single significant amount and no withdrawal bad debt provision single
2) Other account receivable with withdrawal bad debt provision by aging account for combination 1
||||||
|-|-|-|-|-|
|Ending amount|||||
|Amount|Accrualproportion|Bad debtprovision|Amount|Accrualproportion|
|579,688.58|5%|28,984.43|625,000.00|5%|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||||
|-|-|-|-|-|
|Ending amount|||||
|Amount|Accrualproportion|Bad debtprovision|Amount|Accrualproportion|
|30,000.00|15%|4,500.00|30,000.00|15%|
|3,178,962.50|35%|1,112,636.88|3,178,962.50|35%|
|176,980.00|55%|97,339.00|964,148.09|55%|
|-|85%|-|-|85%|
|4,700.00|100%|4,700.00|23,700.00|100%|
|3,970,331.08||1,248,160.31|4,821,810.59||

 3) Other receivable without bad debt provision withdrawal in combination 2
Combination Book balance
Connected amount between related parties 31,666,839.60 Loans ofemployee’s pretty cash 1,696,740.92 Export rebates 7,069,538.24 Total 40,433,118.76 4) Other account receivable with single minor amount but withdrawal single item bad debt provision at period-end: Nil
(2)Other account receivable of previous years that have been verified recovered in this year: Nil
(3) Switch-back of bad debt provision for other receivable in this year: Nil
(4) Other account receivable charge off in this year: Nil
(5)Areas fromshareholders’ unit with over 5 percent (5 percent included) voting rights held at year-end of the other receivable: Nil
(6) Top 5 other account receivable has RMB 39,781,396.95 in total, a89.59% in total account receivable at year-end
(7) Other receivables classify by nature
||
|-|
|Ending book balance|
|31,666,839.60|
|1,696,740.92|
|3,237,252.77|
|4,700.00|
|7,069,538.24|
|176,980.00|
|551,398.31|
|44,403,449.84|

(8) Other account receivable from related parties
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||
|-|
|Ending amount|
|31,385,488.28|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|-|
|125,351.32|
|156,000.00|
|31,666,839.60|

 (9) Account receivable denominated in foreign currency: Nil
(10) Other receivable de-recognized: Nil
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3. Long-term equity investments
(1)Classification of long-term equity investments
||||||
|-|-|-|-|-|
|Ending balance|||||
|Book balance|Impairment loss|Book value|Book balance|Impairment loss|
|12,961,230.52|-|12,961,230.52|12,961,230.52|-|
|42,000,000.00|-|42,000,000.00|42,000,000.00|-|
|95,000,000.00|-|95,000,000.00|95,000,000.00|-|
|54,900,000.00|-|54,900,000.00|54,900,000.00|-|
|112,256,419.37|-|112,256,419.37|112,256,419.37|-|
|305,600,437.79|-|305,600,437.79|305,600,437.79|-|
|113,630,000.00|-|113,630,000.00|113,630,000.00|-|
|79,000,000.00|-|79,000,000.00|79,000,000.00|-|
|4,950,000.00|-|4,950,000.00|4,950,000.00|-|
|12,910,254.56|-|12,910,254.56|13,071,784.93|-|
|8,583,844.68||8,583,844.68|-||
|841,792,186.92|-|841,792,186.92|833,369,872.61|-|

 (2)Investment in subsidiaries
||||||
|-|-|-|-|-|
|Opening balance|Increase during theperiod|Decrease during theperiod|Ending balance|Provision for impairmentlosses|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
||||||
|-|-|-|-|-|
|Opening balance|Increase during theperiod|Decrease during theperiod|Ending balance|Provision for impairmentlosses|
|12,961,230.52|-|-|12,961,230.52|-|
|42,000,000.00|-|-|42,000,000.00|-|
|95,000,000.00|-|-|95,000,000.00|-|
|54,900,000.00|-|-|54,900,000.00|-|
|112,256,419.37||-|112,256,419.37|-|
|305,600,437.79|-|-|305,600,437.79|-|
|113,630,000.00|-|-|113,630,000.00|-|
|79,000,000.00|-|-|79,000,000.00|-|
|4,950,000.00||-|4,950,000.00|-|
|820,298,087.68||-|820,298,087.68|-|

 (3)Investment in associates
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Opening balance|Changes in the Period||||||||Ending balance|
||AdditionalInvestment|NegativeInvestment|Investment incomerecognized underequity|Adjustmentfor othercomprehensive income|Otherequitychange|Cash dividend orprofit announced toissued|Provision forimpairmentloss|Other||
|13,071,784.93|||-161,530.37||||||12,910,254.56|
|-|15,000,000.00||-6,416,155.32||||||8,583,844.68|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
3. Operation income and operation cost
||||
|-|-|-|
|Current Period|||
|Income|Cost|Income|
|3,273,590,576.99|2,749,342,602.87|3,059,634,817.32|
|450,054,174.95|435,680,329.62|531,934,442.89|
|3,723,644,751.94|3,185,022,932.49|3,591,569,260.21|

 (1) Classified according to product-main operation
||||
|-|-|-|
|Current Period|||
|Operation income|Operation cost|Operation income|
|3,162,550,759.77|2,654,440,336.36|2,987,030,170.25|
|111,033,625.17|94,896,268.57|72,604,647.07|
|6,192.05|5,997.94|-|
|3,273,590,576.99|2,749,342,602.87|3,059,634,817.32|

 (2) Classified according to region-main operation
||||
|-|-|-|
|Current Period|||
|Operation income|Operation cost|Operation income|
|2,501,342,037.25|2,056,276,249.58|2,407,004,655.36|
|772,248,539.74|693,066,353.29|652,630,161.96|
|3,273,590,576.99|2,749,342,602.87|3,059,634,817.32|

 Top five clients of the Company owe income in sales of RMB 888,434,100.66 yuan, a23.86% in total investment income.
4. Investment income
||
|-|
|Current Period|
|-6,577,685.69|
|517,808.22|
|-6,059,877.47|

 (1) Long-term equity investment income by equity method
||
|-|
|Current Period|
|-161,530.37|
|-6,416,155.32|

18. Approval of financial statement
The financial statement has already been approved from the board of directors of the Company for
reporting dated 11 August 2015.
Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
Supplementary information for financial statement
1. Non-operational gains and losses for this year
(1) Non-recurring gains and losses regulated by Explanation Announcement of Information Disclosure on Stock Issuance EnterpriseNo.1—Non-recurring gains/losses (2008) from CSRC:
||
|-|
|CurrentPeriod|
|-5,682,027.31|
|12,344,884.49|
|517,808.22|
|-|
|-|
|-|
|-|
|-|
|-|
|4,133,602.00|
|-1,122,350.47|
|-|
|10,191,916.93|
|503,618.35|
|-111,894.00|
|9,800,192.58|

Annotations of Financial Statements of Hefei Meiling Co., Ltd.
From 1 January 2015 to 30 June 2015
(Unless other wise specified, RMB for record in the Statement)
2.Return on equity and earnings per share
In accordance with requirement of the No. 9 Rule of Information Disclosure Compiling of Public Listed Companies: Calculation and Disclosure of Return on Equity and Earnings per Share (revised in 2010), the weighted average return on equity, basic earnings per share and diluted earnings per share of the Company in first half of 2015 are as follow:
|||
|-|-|
|Weighted averagereturn on equity||
||Basic EPS|
|4.52%|0.2074|
|4.24%|0.1945|

3. Accounting difference under the accounting rules in and out of China : Nil
HEFEI MEILING CO., LTD SEMI-ANNUAL REPORT 2015 Section X. Documents Available for Reference
I. Text of semi-annual report with the signature of the Chairman;
II. Accounting statement carrying the signatures and seals of the Chairman, vice president and financial administrator as well as the person in charge of accounting organ(chief accountants); III. Originals documents of the Company and manuscripts of public notices that disclosed in the newspapers designated by CSRC in the report period;
The aforesaid documents are all available at headquarter of the Company. The Company would provide them timely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to the regulations and Articles of Association.
Chairman: Liu Tibin
Hefei Meiling Co., Ltd.
12 August 2015