Hefei Meiling Co., Ltd.The First Quarterly Report of 2015 Hefei Meiling Co., Ltd.
The First Quarterly Report of 2015
April 2015
Hefei Meiling Co., Ltd.The First Quarterly Report of 2015 Section I. Important Notes
Board of Directors and the Supervisory Committee of Hefei Meiling Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
Mr. Liu Tibin, person in charge of the Company, President Mr. Li Wei, Mr. Zhang Xiaolong, person in charger of accounting works and Mr. Tang Bin, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete.
The First Quarterly Report of 2015 has not been audited.
All Directors are attended the Board Meeting for Quarterly Report deliberation.
Hefei Meiling Co., Ltd.The First Quarterly Report of 2015 Section II. Main financial data and changes of shareholders I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
|||||
|-|-|-|-|
||||Changes of this period over|
||This Period|Same period of last year||
||||same period of last year|
|Operating income (RMB)|2,690,420,998.10|2,613,087,698.42|2.96%|
|Net profit attributable to shareholders of|54,960,953.89|49,511,487.82||
||||11.01%|
|the listed company(RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|54,838,638.93|44,259,236.75|23.90%|
|non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating|-126,760,952.62|-308,282,102.97||
||||58.88%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|0.0720|0.0648|11.01%|
|Diluted earnings per share (RMB/Share)|0.0720|0.0648|11.01%|
|Weighted average ROE|1.59%|1.54%|0.05%|
||||Changes of this period-end|
||End of this period|End of last period|over same period-end of last|
||||year|
|Total assets (RMB)|9,946,292,775.04|9,009,014,201.70|10.40%|
|Net assets attributable to shareholder of|3,476,300,439.44|3,422,746,664.67||
||||1.56%|
|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 day before||
||763,739,205|
|disclosure (Share)||

Whether shares capital changes and owners equity been affected due to new shares issued, additional offering, allotment of shares, equity incentive exercise and buy-back from this period-end to date of quarterly report disclosed or not
□Yes√ No
Items of non-recurring gains and losses
√ Applicable□ Not applicable
In RMB
Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||period-end||
|Gains/losses from the disposal of non-current asset (including the|||
||-5,670,922.09|——|
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||4,881,703.55|——|
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Held transaction financial asset, gains/losses of changes of fair|||
|values from transaction financial liabilities, and investment gains|||
|from disposal of transaction financial asset, transaction financial|||
||81,770.00|——|
|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 the|||
||640,688.49|——|
|aforementioned items|||
|Less : impact on income tax|-214,745.81|——|
|Impact on minority shareholders’ equity (post-tax)|25,670.80|——|
|Total|122,314.96|--|

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
II. Total number of shareholders at the end of this report period and top ten shareholders 1. Total number of common shareholders at the end of this report period and top ten common shareholders In shares
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of common shareholders||||||||
|||56,430||||||
|at the end of report period||||||||
|Top ten common shareholders||||||||
|||||||Number of share||
||||||Amount of|||
||||Proportion|Amount of||pledged/frozen||
|Shareholder’s name|Nature of shareholder||of shares||restricted shares|||
|||||shares held||State of||
||||held||held||Amount|
|||||||share||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Sichuan Changhong Electric Co., LTD|State-owned legalperson||21.58%|164,828,330||0||||
||||||||-||-|
|Hefei Xingtai Holding Group Co., Ltd.|State-owned legalperson||6.26%|47,823,401||0||||
||||||||-||-|
|Changhong Electric (Hong Kong)Trading Co., Ltd.|Foreign legal person||3.30%|25,165,823||0||||
||||||||-||-|
|Zhengde life insurance Co.,LTD-universal insurance products|Domesticnon-state-owned legalperson||3.15%|24,021,690||0||||
||||||||-||-|
|CAO SHENGCHUN|Foreign natural person||1.73%|13,215,556||0|-||-|
|Ma Guofeng|Domestic natural person||1.12%|8,528,670||0|-||-|
|GUOTAI JUNANSECURITIES(HONGKONG) LIMITED|Foreign legal person||0.96%|7,339,666||0||||
||||||||-||-|
|DEUTSCHE BANKAKTIENGESELLSCHAFT|Foreign legal person||0.94%|7,182,009||0||||
||||||||-||-|
|DRAGON BILLION CHINA MASTERFUND|Foreign legal person||0.698%|5,329,489||0||||
||||||||-||-|
|UBS AG|Foreign legal person||0.613%|4,682,450||0|-||-|
|Top ten common shareholders with unrestricted shares held||||||||||
|||Amount of unrestricted|||Type of shares|||||
|Shareholder’s name||||||||||
|||shares held|||Type|||Amount||
|Sichuan Changhong Electric Co., LTD||164,828,330|||RMB ordinary shares|||164,828,330||
|Hefei Xingtai Holding Group Co., Ltd.||47,823,401|||RMB ordinary shares|||47,823,401||
|Changhong Electric (Hong Kong) Trading Co., Ltd.||25,165,823|||Domestically listed foreign|||||
|||||||||25,165,823||
||||||shares|||||
|Zhengde life insurance Co., LTD-universal insuranceproducts||24,021,690||||||||
||||||RMB ordinary shares|||24,021,690||
|CAO SHENGCHUN||13,215,556|||Domestically listed foreign|||||
|||||||||13,215,556||
||||||shares|||||
|Ma Guofeng||8,528,670|||RMB ordinary shares|||8,528,670||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||7,339,666|||Domestically listed foreign|||||
|||||||||7,339,666||
||||||shares|||||
|DEUTSCHE BANK AKTIENGESELLSCHAFT||7,182,009|||RMB ordinary shares|||7,182,009||
|DRAGON BILLION CHINA MASTER FUND||5,329,489|||Domestically listed foreign|||||
|||||||||5,329,489||
||||||shares|||||
|UBS AG||4,682,450|||RMB ordinary shares|||4,682,450||
|||Among the above shareholders, Changhong (Hong Kong) Trade Co.,||||||||
|Explanation on associated relationship among the aforesaid||||||||||
|||Ltd. is the wholly-owned subsidiary of Sichuan Changhong Electronic||||||||
|shareholders||||||||||
|||Co., Ltd.; there existed no associated relationship or belong to the||||||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
|||
|-|-|
||concerted actors as specified in the Measures for the Administration of|
||Information Disclosure of Shareholder Equity Changes of Listed|
||Companies among Sichuan Changhong Electronic Co., Ltd., Changhong|
||(Hong Kong) Trade Co., Ltd. and other top 8 shareholders; and 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.|
||Up to 31st of March 2015, among the top 10 common stockholders,|
||shareholder Ma Guofeng holds 8,497,170 shares of the Company|
|Explanation on top ten common shareholders involving|through guarantee of securities credit transaction account under the name|
|margin business (if applicable)|of Guodu Securities Co., Ltd., and holds 31,500 shares of the Company|
||through his common security account, totally 8,528,670 shares of the|
||Company are held by Ma Guofeng.|

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held at Period-end and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
Hefei Meiling Co., Ltd.The First Quarterly Report of 2015 Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons
√ Applicable□Not applicable
1. Changes and reasons of items in balance sheet
In RMB
||||||
|-|-|-|-|-|
|Item|Balance atperiod-end|Balance atyear-begin|Changesratio|Reasons of changes|
|Financial assets measured byfair value and whose changeis recorded in current gainsand losses|13,400.00|-|100.00%|Fair value change for the forward foreignexchange that carried out in the Period|
|Notes receivable|1,717,083,832.88|1,223,468,044.05|40.35%|Returned money for the notes are increasedin the Period|
|Interest receivable|292,798.67|-|100.00%|The accrued interest for the time deposit arerecognized by subsidiary, and no such item inlast year|
|Long-term investment inequity|50,290,508.04|14,211,004.21|253.88%|The Company increased investment inassociated company in the Period.|
|Other non-current assets|41,828,382.00|-|100.0%|The subsidiary Zhongshan Changhong newlyadded fixed deposit in the Period.|
|Short-term loans|784,563,968.16|407,508,739.07|92.53%|Short-term loans from parent companyincreased in the Period|
|Financial liabilities measuredby fair value and whosechange is recorded in currentgains and losses|12,800.00|81,170.00|-84.23%|Same as” Financial assets measured by fairvalue and whose change is recorded incurrent gains and losses”|
|Payable taxes|90,873,668.42|51,153,350.18|77.65%|Sales in the Period increased|
|Long-term loans|49,232,952.80|18,947,000.00|159.85%|Long-term loans of subsidiary ZhongshanChanghong increased in the period.|

 2. Changes and reasons of items in profit statement
In RMB
||||||
|-|-|-|-|-|
|Item|Amount at thisperiod|Amount at sameperiod of last year|Changesratio|Reasons of changes|
|Changing income of fairvalue(Loss is listed with“-”)|81,770.00|-|100.00%|Same as” Financial assets measured byfair value and whose change is recordedin current gains and losses”|
|Investment income(loss islisted with “-“)|171,415.10|-103,003.19|266.42%|Loss amount from associated enterpriseincreased year-on-year|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||||
|-|-|-|-|-|
|Income from investmentfor associated enterpriseand joint venture|171,415.10|-103,003.19|266.42%|Same as “Investment income”|
|Non-operation expenditure|6,174,911.26|188,790.42|3170.78%|Disposal of fixed assets increased y-o-yin the period.|
|Loss from disposal ofnon-current assets|5,685,698.09|174,619.08|3156.06%|Same as “non-operation expenditure”|
|Income tax expenses|9,522,918.59|5,988,153.23|59.03%|Taxable income tax from parent companyincreased y-o-y in the Period|
|Minority interest|-4,314,838.92|1,636,267.61|-363.70%|Due to the loss of some subsidiaries inthe period.|

3. Changes and reasons of items in cash flow statement
In RMB
||||||
|-|-|-|-|-|
|Item|Amount at thisperiod|Amount at sameperiod of last year|Changesratio|Reasons of changes|
|Tax refunds received|54,031,690.80|38,022,269.44|42.11%|Export rebates of subsidiary received in the Periodgrowth year-on-year|
|Net cash received fromdisposal of fixedassets, intangibleassets and otherlong-term assets|1,234,432.00|40,729,958.40|-96.97%|Mainly because the remove loss arising from earlyrelease of “House Lease Contract” was paid toMianyang Meiling Refrigeration by SichuanChanghong Minsheng Logistics and thecompensation received due to early terminationoption in the same period of last year while nosuch amount occurred in the Period.|
|Cash received relatedwith other investmentactivities|17,219,641.80|12,044,788.48|42.96%|Interest income increased y-o-y in the period.|
|Cash paid forpurchasing fixed,intangible and otherlong-term assets|36,881,430.75|27,741,973.71|32.94%|Amount for fixed assets paid in the Periodincreased y-o-y|
|Cash paid forinvestment|36,149,974.00|1,097,787.00|3192.99%|Same as “long-term investment in equity”.|
|Cash paid for debtsettlement|381,572,057.56|95,834,477.54|298.16%|Mainly because short-term loans of the parentcompany paid increased y-o-y in the period.|
|Cash paid fordividend/profitdistribution or interestexpenses|3,958,191.54|1,963,928.25|101.54%|The loans interest paid by parent company in thePeriod increased y-o-y|
|Cash paid related with|-|2,973,468.35|-100.00%|Minority equity from part of the subsidiary|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||||
|-|-|-|-|-|
|other financingactivities||||decreased at same period last year while no suchitem in the Period|
|Impact on cash andcash equivalent fromexchange ratemovement|7,204,996.05|1,286,792.08|459.92%|Exchange rate of foreign currency changed in thePeriod|

II. Analysis and explanation of significant events and their influence and solutions
√ Applicable□Not applicable
(I) Particular about process of the fund raised and investment of fund raised in the report period
Privately A-stock offering of the Company was implemented in 2010, raised capital totally amounting to RMB 1,199,999,820, net raised capital of RMB 1,177,954,320 after deducted RMB 22,045,500 issuing expense (including RMB 20,500,000 underwriting fee and sponsor charge).
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, being deliberated and approved by the Board, the supervisory committee and general meeting, 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 289.091987 million Yuan for working capital supplementation permanently up to 31 March 2015.
Ended as
31st
March 2015, accumulated amount of RMB 879,419,564 were actually used for the raised fund projects, balance in specific raised funds accounting to RMB 52,617,656 (including RMB 3586058, not withdrawal for current capital supplementation permanently and the unpaid contract amount and qualify assurance fund RMB 49,031,598 in total). More details are as:
Athena luxury refrigerator production base: total investment accounting to RMB 528,508,417 after surplus deducted. The project accumulated invested RMB 503,396,607 up to
31st
March 2015; balance in raised fund account was RMB 27,173,419, including RMB 25,111,864 ready for contract payment and quality assurance fund, and RMB 2,061,627 undrawn for supplement current capital of the Company.
Freezer capacity expansion project: total investment accounting to RMB 251,883,547 after surplus deducted. The project accumulated invested RMB 227,963,813 up to
31st
March 2015; balance in raised fund account was RMB 25,444,165, including RMB 23,919,734 ready for contract payment and quality assurance fund, and RMB 1,524,431 undrawn for supplement current capital of the Company.
(II) Transaction with Changhong Finance Co., Ltd
Being decision by the Board and General Meeting, agreed the Company entered into 3-year term “Agreement on Financial Services” with the Sichuan Changhong Finance Co., Ltd. (hereinafter referred to as the Changhong Finance Company). In business scope of the Changhong Finance Company, providing a serial financial service as savings and loans required by the Company and its subordinate subsidiaries according to the Agreement; the
related transactions with Changhong Finance from year-beginning to end of the Period are as:
Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increased duringthe Year|Decreased duringthe Year|Ending balance|Interest, handlingcharge paid orreceived|
|I. Savings in ChanghongGroup Finance Company|1,040,209,426.68|2,099,228,353.70|2,406,062,747.25|733,375,033.13|5,542,877.51|
|II. Borrowings fromChanghong Group FinanceCompany|-|-|-|-|-|
|1.Short-term loans|-|-|-|-|-|
|2.Long-term loans|-|-|-|-|-|
|III. Other financial business|-|-|-|-|-|
|1.notes drawing|258,631,647.68|216,341,555.90|199,373,238.97|275,599,964.61|-|
|2.notes discounted|210,940,218.46|250,553,358.38|130,456,267.49|331,037,309.35|-|
|3. other|-|-|-|-|-|

 (III)Overview of other significant events
||||
|-|-|-|
||Date for|Information index for|
|Overview|||
||disclosure|temporary report disclosure|
|On 6th of March 2015, the Company received a “Notice” from the second-largestshareholder—Hefei Xingtai Holding Co., Ltd. (“Xingtai Holding” for short), inaccordance with the integral deployment of Hefei state-owned enterprise reform,adjusted the state-owned capital operation institutes in Hefei, that is, plans to transferthe 49,477,513 shares of the Company held by Xingtai Holding to theplans-to-established Hefei Industrial Investment Holding (Group) Co., Ltd. for free.The Company will continue to follow the progress of the above mentioned event, andperform information disclosure duties timely in line with the relevant laws andregulations.|||
|||Juchao Website:|
||2015-3-7|http://www.cninfo.com.cn|
|||( No.: 2015-001)|
|Concerning the “Meiling” kitchen ventilator manufactured by Zhongshan Branch ofHefei Meiling Small Appliances Co., Ltd., quality of the products are unqualified inthe State supervisory sampling inspection of product quality, which was reported inthe CCTV’s “3.15” evening party, The Company pay high attention to the reports andtimely verify and released the “Clarification Announcement on “Meiling” kitchenventilator unqualified in sampling inspection reported by CCTV’s “3.15” eveningparty” in appointed media for information disclosed, main contents are: HefeiMeiling Small Appliances Co., Ltd. and its Zhongshan Branch are not thesubordinate subsidiary of the Company and have no any assets and equityrelationship with the Company as well as the operation management connect; theCompany has instructed Meiling Group to, from now on, remove the “Right to Use aTrademark License” that signed with Small Appliances Company; and requiredSmall Appliances Company seal up for the unqualified products and returned to the|||
|||Juchao Website:|
||2015-3-16|http://www.cninfo.com.cn|
|||( No.: 2015-002)|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|factory for repair, process return for those unqualified products that sold out or repairfree of charge etc.|||
|Being deliberated and approved by 6th meeting of 8th session of the Board held on24th March 2015, agreed the Zhongke Meiling invested approximately RMB156321900 for the relocation expansion project; after project completes, ZhongkeMeiling will equipped with the production capacity of 26000 cryogenic refrigeratorsannually.|||
|||Juchao Website:|
||2015-3-26|http://www.cninfo.com.cn|
|||( No.: 2015-003)|
|Being deliberated and approved by 6th meeting of 8th session of the Board held on24th March 2015, agreed to engaged Mr. Wu Dinggang as the deputy Chairman of theCompany, Mr. Zhang Xiaolong as the deputy Chairman and finance manager of theCompany.|||
|||Juchao Website:|
||2015-3-26|http://www.cninfo.com.cn|
|||( No.: 2015-003)|
|In view of the serial accounting standards that revised and issued successively byMinistry of Finance in 2014, required to relevant regulations from the Ministry ofFinance, being deliberated and approved by the 6th meeting of 8th session of theBoard and Annual General Meeting of 2014 held respectively dated 24th March 2015and 17th April 2015, agreed to carried out new accounting standards for businessenterprises in line with relevant regulations and requirements, correspondingaccounting policy shall be changed.|||
|||Juchao Website:|
||2015-3-26,|http://www.cninfo.com.cn|
||2015-4-18|( No.: 2015-003, No.:|
|||2015-008, No.: 2015-015)|
|In accordance with the “Implementation of the Annual Performance Incentive FundPlan” (“Incentive Plan” for short) and audited financial report of the 2014 andoperation conditions, the Company qualified awarded condition of the incentive planfor year of 2014, being deliberated and approved by the 6th meeting of 8th session ofthe Board the 4th meeting of 8th board of supervisors and Annual General Meeting of2014 held respectively dated 24th March 2015 and 17th April 2015, agreed towithdraw RMB 32,186,723.32 incentive funds from 10 percent of the net profit foryear of 2014 audited, and reckoned into current gains/losses in line with relevantaccounting policies rules.|||
|||Juchao Website:|
|||http://www.cninfo.com.cn|
||2015-3-26,||
|||( No.: 2015-003, No.:|
||2015-4-18||
|||2015-004, No.: 2015-009, No.:|
|||2015-015)|
|Being deliberated and approved by the 6th meeting of 8th session of the Board andAnnual General Meeting of 2014 held respectively dated 24th March 2015 and 17thApril 2015, agreed to carried out he forward exchange transaction from 1st January2015 to 30th June 2016 with balance of the business up to US$ 350 million, deliveryterms for single business not longer than 2 years.|||
|||Juchao Website:|
||2015-3-26,|http://www.cninfo.com.cn|
||2015-4-18|( No.: 2015-003, No.:|
|||2015-010, No.: 2015-015)|
|Being deliberated and approved by the 6th meeting of 8th session of the Board andAnnual General Meeting of 2014 held respectively dated 24th March 2015 and 17thApril 2015, on the premise of guarantee routine operation capital needs andinvestment risk control efficiently, agreed to invested for the preservation floatingproceeds financing products with self-owned idle fund up to RMB one billion(thelimit can scroll to use), for one-year term.|||
|||Juchao Website:|
||2015-3-26,|http://www.cninfo.com.cn|
||2015-4-18|( No.: 2015-003, No.:|
|||2015-011, No.: 2015-015)|

III. Commitments from the Company or shareholder with over5% share held in reporting
period or continues to reporting period
√ Applicable□Not applicable
Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||||||
|-|-|-|-|-|-|-|
|||||||Implement|
|Item of||||Date|Term||
||Promisee|Content of commitments|||||
|Commitments||||||ation|
|Commitmentsmade inacquisition reportor equity changereport|||1. The acquirer shall not engage in refrigerator business or activity which||||
|||||||Strictly|
||||competes or will compete with business of HEFEI MEILING CO., LTD||||
||||||Valid for long term|implement|
||||(hereinafter referred to as the “Meiling Electrical”), or that which has interest||||
|||||||ed|
||||conflict with Meiling Electrical Appliances.||||
||Sichuan||||||
||||2. The acquirer promises to apply shareholders’ right on a legal and reasonable|||Strictly|
||Changhong||||||
|||Promise and guarantee of|manner and shall not take any action to limit or affect the normal operation of||Valid for long term|implement|
||Electric Co.,||||||
|||horizontal competition|Meiling Electrical Appliances.|||ed|
||LTD||||||
|||avoidance made in|3. For any opportunity to engage in competing business, the acquirer will|2007-6-12|||
||(hereinafter||||||
|||“Acquisition Report of|advise Meiling Electrical Appliances in written for engaging such business or||||
||referred to as||||||
|||Hefei Meiling Co., Ltd”|||||
||||not. If Meiling Electrical Appliances gives no clear written reply as to whether||||
||the “Sichuan|||||Strictly|
||||engaging the competing business or not within 20 days after receipt of the||||
||Changhong”)||||Valid for long term|implement|
||||aforesaid letter, it shall be deemed that it will not engage in such business. The||||
|||||||ed|
||||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.||||
|Commitmentmade during thenon-public offer|||1. It will not engage in such business or activity that competes with or has||||
||||interest conflict with that of Meiling Electrical Appliances except for the||||
||||action taken for sake of Meiling Electrical Appliances as required by Meiling||||
|||Commitment regarding|||||
||||Electrical Appliances.||||
|||to reducing and||||Strictly|
||Sichuan||2. The Company promises to apply shareholders’ right on a legal and||||
|||preventing competition||2010-6-24|Valid for long term|implement|
||Changhong||reasonable manner and shall not take any action to limit or affect the normal||||
|||with Meiling Electrical||||ed|
||||operation of Meiling Electrical Appliances.||||
|||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||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
|||||||
|-|-|-|-|-|-|
|||to Meiling Electrical Appliances regarding such business if the same||||
|||conditions are met, provided that the Company is still the controlling||||
|||shareholder or actual controller of Meiling Electrical Appliances.||||
|||1. Measures will be adopted to prevent continued related transaction with||||
|||Meiling Electrical Appliances: as to the related transaction that can not be||||
|||prevented, it will sign related transaction agreement with Meiling Electrical||||
|||Appliances under the market principles of “equally paid and mutual benefit”,||||
||Commitment regarding|||||
|||and fairly determined the transaction price according to the market prevailing||||
||to reducing and||||Strictly|
|||standards.||||
||standardizing related||2010-6-24|Valid for long term|implement|
|||2. Perform the necessary obligations to make related directors and related||||
||transaction with Meiling||||ed|
|||shareholder abstain from voting according to relevant regulation, and observe||||
||Electrical Appliances|||||
|||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.||||
||Commit to authorized Changhong Air Conditioning and Zhongshan Air Conditioning Co., Ltd.||||Strictly|
||(hereinafter referred to as the “Zhongshan Changhong”) to use “Changhong” trademark and relevant||2010-11-6|Valid for long term|implement|
||patents for free.||||ed|
||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.|||||
||||||Strictly|
||2. Commit to make public clarification in respect of such information that is released from any public|||||
|The Company|||2011-1-7|Valid for long term|implement|
||media and may result in misleading influences on stock price once the Company is aware of such|||||
||||||ed|
||information.|||||
||3. The directors, supervisors, senior management and core technicians of the Company will accept|||||
||opinions and criticism from the social publics, and they will not trade the Company’s securities, directly|||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||||||
|-|-|-|-|-|-|-|
||||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.||||
|Commitmentmade in transferof airconditioningassets property|||1. Since the property transfer didn’t involve the buildings and land currently used by Changhong Air|||Strictly|
||||Conditioning, Sichuan Changhong commits, upon the completion of equity transfer, to continue to lease||Valid for long term|implement|
||||such assets to Changhong Air Conditioning at market price;|||ed|
||||2. After completion of this property transfer, Sichuan Changhong commits to manage to prevent new||||
||Sichuan||related transaction with Meiling Electrical Appliances. For those which can not be prevented, Sichuan||||
|||||2009-12-10|||
||Changhong||Changhong commits to determine the transaction price based on market accepted methods, so as to|||Strictly|
||||ensure fairness of related transaction and protection of the interest of Meiling Electrical Appliances.||Valid for long term|implement|
||||3. Sichuan Changhong commits that it will not engage in air conditioning and refrigerator business or|||ed|
||||activity which competes or will compete with business of Meiling Electrical Appliances, or that which||||
||||has interest conflict with Meiling Electrical Appliances.||||
|Commitments byAnnualperformanceincentive fund,incentive objectswhile purchasingstock of theCompany withperformanceincentive fundsand owned fund|||1. Make promise not to reduce the shares of Meiling bought in every year during implementation of the||||
||||||Three years after||
||||performance incentive fund via any market ways in the later first year, which was allowed to be reduced|2013-8-15,||Implementi|
||Some of the||||current shares||
||||by 50% according to the laws and regulations in the second year, and the remaining 50% was allowed to|2014-7-3||ng|
||Directors,||||purchased||
||||be reduced in the third year in accordance with the laws and regulations.||||
||supervisors and||||||
||||2. The directors, supervisors and senior management promised to manage in accordance with the relevant||From the date when||
||senior||||||
||||management approaches in accordance with the "Company Law", "Securities Law" and "The Company’s||annual incentive fund||
||executives of||||||
||||shares held by the directors, supervisors and senior management of the listed company and its change||plan deliberated and||
||the Company||||||
||||management rules", as objects of annual performance incentive fund of Meiling, including but not limited|2013-8-15,|approved by general|Implementi|
||as well as other||||||
||||to: during his tenure, the shares transferred each year shall not exceed 25% of the total number of shares|2014-7-3|meeting to 6 moths|ng|
||incentive||||||
||objects||held of the Company; shall not sell the shares of the Company within six months after bought it or||after director,||
||||purchase again six months after sold it; shall not transfer the shares held within six months after||supervisor and senior||
||||Dismission.||executives resigned||
|Perform the commitment||√ Yes □ No|||||
|promptly or not|||||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
|||
|-|-|
|Specific reason||
|For non-performance and the|Not applicable|
|next plan||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015 IV. Forecast of operation performance from Jan.– June of 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
V. Securities Investment
□ Applicable√ Not applicable
No security investment in Period.
VI. Explanation on equity of other listed company held
√ Applicable□Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Proportion||Proportion|||||
||||||Shares held|||Gains/losse|||
||||Shares held at|of shares||of shares|Book value at||||
|||Initial investment|||at|||s in report|Accountin||
|Name|Type||period-begin|held at||held at|period-end|||Resources|
|||capital (RMB)|||period-end|||period|g items||
||||(Share)|period-beg||period-end|(RMB)||||
||||||(Share)|||(RMB)|||
|||||in (%)||(%)|||||
||||||||||Available||
|Huishang|||||||||||
||Commerci||||||||for sale|Initial|
|Bank Co.,||5,000,000.00|10,737,573|0.0972%|10,737,573|0.0972%|5,000,000.00|0|||
||al bank||||||||financial|investment|
|Ltd.|||||||||||
||||||||||assets||
|Total||5,000,000.00|10,737,573|--|10,737,573|--|5,000,000.00|0|--|--|

 VII. Derivative investment
√ Applicable□Not applicable
In 10 thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Ratio of||
|||||||||Amount of||investment||
|||||||||reserve for||amount at||
|||Whether|||||Investment|devaluatio||period-end||
||Related||||||||Investment||Actual|
|||related||Initial|||amount at|n of||in net||
|Operator|relationshi||Type||||||amount at||gains/losses|
|||trade or||investment|S tart date|End date|period-begi|withdrawi||assets of||
||p||||||||period-end||in period|
|||not|||||n|ng (if||the||
|||||||||applicable||Company||
|||||||||)||at||
|||||||||||period-end||
||||Forward|||||||||
|Financial||||||||||||
||N/A|No|foreign|5,019.93|2014-7-1|2015-12-31|13,319.13|N/A|13,319.13|3.83%|8.177|
|institution||||||||||||
||||exchange|||||||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||contract|||||||||
|Total||5,019.93|--|--|13,319.13|——|13,319.13|3.83%|8.177|
|Capital resource(if applicable)||Self-owned capital||||||||
|Lawsuit involved (if applicable)||Not applicable||||||||
|Disclosure date for approval from the Board||||||||||
|||2014-4-19||||||||
|for investment of derivatives (if applicable)||||||||||
|Disclosure date for approval from board of||||||||||
|shareholders for investment of derivatives (if||2014-6-6||||||||
|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 ability||||||||
|||to price variations due to exchange rate fluctuations, then determine the plan of forward foreign||||||||
|||exchange contracts, and make dynamic management to the business, to ensure reasonable profit||||||||
|||level.||||||||
|||2. Liquidity risk: all foreign exchange transactions are based on a reasonable estimate of the future||||||||
|||import and export business, to meet the requirements of the trade authenticity. In addition, forward||||||||
|||foreign exchange transactions are processed with bank credit, will not affect liquidity of company||||||||
|||funds.||||||||
|||3. Bank default risk: if cooperative banks collapse within the contract time, the Company will not||||||||
|Risk analysis and controlling measures for||be able to transact the original foreign exchange contracts with contract price, which leads the risk||||||||
|derivatives holdings in the Period (including||of income uncertainty. Therefore, the Company chose five nationalized banks, Chinese-funded||||||||
|but not limited to market risk, liquidity risk,||bank as Everbright Bank and CITIC, and part of the larger foreign Banks to conduct the trading of||||||||
|credit risks, operation risk and law risks etc.)||foreign exchange capital. These banks share a solid strength and management whose failure and||||||||
|||the risk of loss may bring to the Company is very low.||||||||
|||4. Operational risk: improper operation of the person in charge of forward foreign exchange||||||||
|||transactions may cause related risk also. The Company has formulated related management system||||||||
|||which defines the operation process and responsibility to prevent and control risks.||||||||
|||5. The legal risks: unclear terms based in contract signed with banks for related transactions may||||||||
|||lead legal risks when forward foreign exchange transactions are processing. The Company will||||||||
|||strengthen legal review, and choose good bank to carry out this kind of business as to risk control.||||||||
|||Control measures: The Company formulated a “Management System of Forward Foreign||||||||
|||Exchange Trading” in 2014, business of the forward foreign exchange shall follow the principle of||||||||
|||legitimacy, prudence, safety and effective-ness, and did not carried out the foreign exchange purely||||||||
|||on profitability. All business with forward foreign exchange concerned is based with the normal||||||||
|||operation and rely on specific operation business and aims at avoiding and preventing the FX risk.||||||||
|||The system clearly defines the main types of forward foreign exchange trading business, operating||||||||
|||principle, approval authority, management and internal operation process, etc., and raise request to||||||||
|||the information isolation measures, internal risk system and risk treatment process, as well as||||||||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
|||
|-|-|
||information disclosure; the system is benefit a lot in strengthening the management of forward|
||foreign exchange trading, prevent investment risks, perfected and improve the management|
||mechanism in aspect of forward foreign exchange business and ensure the security of the assets.|
||The Company determines fair value in accordance with the Chapter VII “Determination of Fair|
||Value” carried in the Accounting Standards for Business Enterprises No.22 - Recognition and|
|Invested derivative products have changes in||
||Measurement of Financial Instruments. Fair-value is basically obtained according to prices offered|
|market price or fair value in the Period, as for||
||by bank and other pricing services. While fair-value of derivatives is mainly obtained according to|
|analysis of the fair value of derivatives,||
||the balance between prices given by outstanding contracts and forward prices given by contracts|
|disclosed specific applied methods and||
||signed during the reporting period with bank. The differences are identified as trading financial|
|correlation assumption and parameter setting||
||assets and liabilities. During the reporting period, forward foreign exchange contracts and losses of|
||the Company is RMB 81,770.|
|Specific principle of the accounting policy||
|and calculation for derivatives in the Period||
||Not applicable|
|compared with last period in aspect of major||
|changes||
||After verification, independent director of the Company consider that: during the Period, forward|
||exchange capital business transaction of the Company are carried out strictly in line with the|
||relevant regulations of “Standard Operation Guide for Enterprise Listed in Main Board(Revised in|
||2015)” of the Shenzhen Stock Exchange, Article of Association, Management Measures for the|
||Authorization and “Management System of the Forward Exchange Capital Transaction of Hefei|
||Meiling Co., Ltd.” , within authorized scope of the General Meeting and the BOD, against the|
|Special opinion on derivative investment and||
||actual business, aiming at locks the income & costs, prevented and avoided risks of exchange rate|
|risk control by independent directors||
||fluctuation, and remains sound operation, the forward exchange capital business transaction has|
||closely related with the routine operation needs of the Company, and the transaction benefit a lot in|
||avoiding the FX risk arising from import and export business, and meet requirement of the|
||operation development without any speculative operation, and no law and regulations violated been|
||found; relevant business are performed corresponding decision-making process and without the|
||interest of the Company, the whole shareholders, minority in particular, being violated.|

 VIII. Registration form for receiving research, communication and interview in the report period
|||||||
|-|-|-|-|-|-|
||||Type of||Contents discussed and|
|Date|Place|Method||Investor||
||||investors||materials supplied|
|||Spot||Essences Securities, Zhong Ou|Business production status of|
|2015-1-20|Conference room of||Institutio|||
||||||the Company, no material|
||the company|investigation|n|Asset Management||
||||||required|
|||Spot|||Business production status of|
|2015-1-30|Conference room of||Institutio|Founder Securities||
||||||the Company, no material|
||the company|investigation|n|||
||||||required|
|||Spot|||Business production status of|
|2015-2-5|Conference room of||Institutio|Great Wall Securities||
||||||the Company, no material|
||the company|investigation|n|||
||||||required|
|||Spot|||Business production status of|
|2015-2-11|Conference room of||Institutio|Sinolink Securities||
||||||the Company, no material|
||the company|investigation|n|||
||||||required|
|||Spot|||Business production status of|
|2015-4-2|Conference room of||Institutio|Minsheng Securities||
||||||the Company, no material|
||the company|investigation|n|||
||||||required|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015 Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Hefei Meiling Co., Ltd.
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|2,789,974,703.24|2,665,219,013.80|
|Settlement provisions|||
|Capital lent|||
|Financial liability measured by fair|||
|value and with variation reckoned into|13,400.00||
|current gains/losses|||
|Derivative financial liability|||
||1,717,083,832.88|1,223,468,044.05|
|Notes receivable|||
||1,463,087,559.80|1,160,192,277.00|
|Accounts receivable|||
|Accounts paid in advance|114,564,518.77|92,501,704.06|
|Insurance receivable|||
|Reinsurance receivables|0.00||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|292,798.67||
|Dividend receivable|||
|Other receivables|34,508,148.96|28,729,328.80|
|Purchase restituted finance asset|||
|Inventories|1,695,652,779.30|1,765,761,407.86|
|Divided into assets held for sale|||
|Non-current asset due within one|||
|year|||
|Other current assets|||
|Total current assets|7,815,177,741.62|6,935,871,775.57|
|Non-current assets:|||
|Loans and payments on behalf|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Finance asset available for sales|5,500,000.00|5,500,000.00|
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|50,290,508.04|14,211,004.21|
|Investment property|14,690,650.08|14,892,795.62|
|Fixed assets|1,199,349,580.43|1,223,763,920.86|
|Construction in progress|60,318,479.96|62,766,707.57|
|Engineering material|||
|Disposal of fixed asset|75,828,843.84|75,808,843.84|
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|564,925,111.20|561,864,209.63|
|Expense on Research and|28,522,023.60|25,194,157.09|
|Development|||
|Goodwill|5,313,913.50|5,313,913.50|
|Long-term expenses to be|||
|apportioned|||
|Deferred income tax asset|84,547,540.77|83,826,873.81|
|Other non-current asset|41,828,382.00||
|Total non-current asset|2,131,115,033.42|2,073,142,426.13|
|Total assets|9,946,292,775.04|9,009,014,201.70|
|Current liabilities:|||
|Short-term loans|784,563,968.16|407,508,739.07|
|Loan from central bank|||
|Absorbing deposit and interbank|||
|deposit|||
|Capital borrowed|||
|Financial liability measured by fair|||
|value and with variation reckoned into|12,800.00|81,170.00|
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|1,679,101,287.74|1,553,110,292.55|
|Accounts payable|1,973,663,345.56|1,681,116,965.38|
|Accounts received in advance|362,224,782.00|296,641,377.09|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||
|commission payable|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Wage payable|126,112,423.96|156,537,212.29|
|Taxes payable|90,873,668.42|51,153,350.18|
|Interest payable|||
|Dividend payable|2,237,640.91|2,237,640.91|
|Other accounts payable|863,573,617.05|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 within 1|11,153,514.40|11,153,512.52|
|year|||
|Other current liabilities|||
|Total current liabilities|5,893,517,048.20|5,032,265,967.67|
|Non-current liabilities:|||
|Long-term loans|49,232,952.80|18,947,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|39,986,000.96|40,317,465.61|
|Special accounts payable|||
|Projected liabilities|345,239,973.14|347,107,686.15|
|Deferred income|129,619,471.79|131,995,227.77|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|564,078,398.69|538,367,379.53|
|Total liabilities|6,457,595,446.89|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|1,465,796,255.49|1,466,959,939.03|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Less: Inventory shares|||
|Other comprehensive income|-3,506,394.57|-3,262,898.99|
|Reasonable reserve|||
|Surplus public reserve|359,857,106.14|359,857,106.14|
|Provision of general risk|||
|Retained profit|890,414,267.38|835,453,313.49|
|Total owner’s equity attributable to|3,476,300,439.44|3,422,746,664.67|
|parent company|||
|Minority interests|12,396,888.71|15,634,189.83|
|Total owner’s equity|3,488,697,328.15|3,438,380,854.50|
|Total liabilities and owner’s equity|9,946,292,775.04|9,009,014,201.70|

 Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Tang Bin
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||2,444,985,216.96|2,392,059,424.25|
|Monetary funds|||
|Financial liability measured by fair|||
|value and with variation reckoned into|13,400.00||
|current gains/losses|||
|Derivative financial liability|||
||1,209,918,075.19|828,127,854.78|
|Notes receivable|||
|Accounts receivable|913,628,392.28|809,847,584.71|
|Account paid in advance|178,793,327.37|176,658,393.90|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|40,506,865.68|54,910,749.80|
|Inventories|814,992,398.29|795,329,785.95|
|Divided into assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|||
|Total current assets|5,602,837,675.77|5,056,933,793.39|
|Non-current assets:|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Available-for-sale financial assets|5,000,000.00|5,000,000.00|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|839,455,003.54|833,369,872.61|
|Investment property|12,161,320.48|12,279,792.66|
|Fixed assets|865,003,980.83|885,435,282.76|
|Construction in progress|48,404,633.58|48,527,533.03|
|Project materials|||
|Disposal of fixed assets|43,424,954.71|43,404,954.71|
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|431,379,817.22|434,092,342.78|
|Research and development costs|1,910,850.20|509,879.01|
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|75,380,684.46|76,189,511.02|
|Other non-current assets|||
|Total non-current assets|2,322,121,245.02|2,338,809,168.58|
|Total assets|7,924,958,920.79|7,395,742,961.97|
|Current liabilities:|||
|Short-term borrowings|687,324,988.16|373,242,339.07|
|Financial liability measured by fair|||
|value and with variation reckoned into|12,800.00|81,170.00|
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|945,588,895.10|1,036,334,282.38|
|Accounts payable|1,236,559,087.82|1,151,471,839.41|
|Accounts received in advance|330,093,820.36|152,745,865.71|
|Wage payable|64,382,541.27|77,090,385.79|
|Taxes payable|50,938,595.25|23,323,462.51|
|Interest payable|||
|Dividend payable|2,237,640.91|2,237,640.91|
|Other accounts payable|700,314,145.88|712,029,942.44|
|Divided into liability held for sale|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Non-current liabilities due within 1|||
||7,487,762.48|7,487,760.60|
|year|||
|Other current liabilities|||
|Total current liabilities|4,024,940,277.23|3,536,044,688.82|
|Non-current liabilities:|||
|Long-term loans|7,932,800.00|7,932,800.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|39,986,000.96|40,317,465.61|
|Special accounts payable|||
|Projected liabilities|345,239,973.14|347,107,686.15|
|Deferred income|73,666,103.11|75,538,045.61|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|466,824,877.21|470,895,997.37|
|Total liabilities|4,491,765,154.44|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|||
|Reasonable reserve|||
|Surplus reserve|359,638,940.46|359,638,940.46|
|Retained profit|811,828,561.43|767,437,070.86|
|Total owner’s equity|3,433,193,766.35|3,388,802,275.78|
|Total liabilities and owner’s equity|7,924,958,920.79|7,395,742,961.97|

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Tang Bin
Hefei Meiling Co., Ltd.The First Quarterly Report of 2015 3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|2,690,420,998.10|2,613,087,698.42|
|Including: Operating income|2,690,420,998.10|2,613,087,698.42|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|2,630,356,619.59|2,562,013,868.70|
|Including: Operating cost|2,097,474,045.52|2,018,641,090.35|
|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|17,929,304.57|14,403,856.24|
|Sales expenses|427,170,446.81|453,546,274.45|
|Administration expenses|97,415,477.98|85,284,013.66|
|Financial expenses|-19,099,709.75|-17,475,765.00|
|Losses of devaluation of asset|9,467,054.46|7,614,399.00|
|Add: Changing income of fair|||
||81,770.00||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||171,415.10|-103,003.19|
|with “-”)|||
|Including: Investment income on|||
||171,415.10|-103,003.19|
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|III. Operating profit (Loss is listed with|||
||60,317,563.61|50,970,826.53|
|“-”)|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Add: Non-operating income|6,026,381.21|6,353,872.55|
|Including: Disposal gains of|||
||14,776.00|1,453,778.85|
|non-current asset|||
|Less: Non-operating expense|6,174,911.26|188,790.42|
|Including: Disposal loss of|||
||5,685,698.09|174,619.08|
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|60,169,033.56|57,135,908.66|
|Less: Income tax expense|9,522,918.59|5,988,153.23|
|V. Net profit (Net loss is listed with “-”)|50,646,114.97|51,147,755.43|
|Net profit attributable to owner’s of|||
||54,960,953.89|49,511,487.82|
|parent company|||
|Minority shareholders’ gains and|||
||-4,314,838.92|1,636,267.61|
|losses|||
|VI. Net after-tax of other comprehensive|||
||-309,624.32|1,000,627.56|
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|-243,495.58|600,376.54|
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will not be reclassified subsequently to|||
|profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|-243,495.58|600,376.54|
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will be reclassified subsequently to profit|||
|or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|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|-243,495.58|600,376.54|
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|-66,128.74|400,251.02|
|shareholders|||
|VII. Total comprehensive income|50,336,490.65|52,148,382.99|
|Total comprehensive income|||
||54,717,458.31|50,111,864.36|
|attributable to owners of parent Company|||
|Total comprehensive income|||
||-4,380,967.66|2,036,518.63|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.0720|0.0648|
|(ii) Diluted earnings per share|0.0720|0.0648|

 Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Tang Bin
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|1,501,709,121.95|1,216,776,629.46|
|Less: Operating cost|1,253,513,363.69|1,025,006,130.11|
|Operating tax and extras|10,329,956.47|5,618,273.43|
|Sales expenses|144,475,730.93|103,582,595.46|
|Administration expenses|50,319,095.61|43,935,338.17|
|Financial expenses|-14,222,182.00|-13,296,404.90|
|Losses of devaluation of asset|2,036,087.98|34,533,501.11|
|Add: Changing income of fairvalue(Loss is listed with “-”)|||
||81,770.00||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Investment income (Loss is|||
||85,130.93|-20,120.98|
|listed with “-”)|||
|Including: Investment income|||
||85,130.93|-20,120.98|
|on affiliated company and joint venture|||
|II. Operating profit (Loss is listed|||
||55,423,970.20|17,377,075.10|
|with “-”)|||
|Add: Non-operating income|2,608,543.71|4,607,507.27|
|Including: Disposal gains of|||
|||678,096.91|
|non-current asset|||
|Less: Non-operating expense|6,042,964.39|174,339.08|
|Including: Disposal loss of|||
||5,668,797.10|174,339.08|
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||51,989,549.52|21,810,243.29|
|“-”)|||
|Less: Income tax expense|7,598,058.95|3,552,494.72|
|IV. Net profit (Net loss is listed with|||
||44,391,490.57|18,257,748.57|
|“-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|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|44,391,490.57|18,257,748.57|
|VII. Earnings per share:|||
|(i) Basic earnings per share|0.0581|0.0239|
|(ii) Diluted earnings per share|0.0581|0.0239|

 Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Tang Bin
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|1,817,683,475.44|1,607,319,295.45|
|services|||
|Net increase of customer deposit|||
|and interbank deposit|||
|Net increase of loan from central|||
|bank|||
|Net increase of capital borrowed|||
|from other financial institution|||
|Cash received from original|||
|insurance contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings and|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|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|54,031,690.80|38,022,269.44|
|Other cash received concerning|||
||5,210,846.22|17,463,443.87|
|operating activities|||
|Subtotal of cash inflow arising from|||
||1,876,926,012.46|1,662,805,008.76|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|1,471,567,032.43|1,490,404,973.31|
|service|||
|Net increase of customer loans|||
|and advances|||
|Net increase of deposits in central|||
|bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee|||
|slip|||
|Cash paid to/for staff and workers|263,818,130.30|211,187,557.21|
|Taxes paid|79,377,370.18|75,731,980.76|
|Other cash paid concerning|||
||188,924,432.17|193,762,600.45|
|operating activities|||
|Subtotal of cash outflow arising from|||
||2,003,686,965.08|1,971,087,111.73|
|operating activities|||
|Net cash flows arising from operating|||
||-126,760,952.62|-308,282,102.97|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|1,234,432.00|40,729,958.40|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||17,219,641.80|12,044,788.48|
|investing activities|||
|Subtotal of cash inflow from investing|||
||18,454,073.80|52,774,746.88|
|activities|||
|Cash paid for purchasing fixed,|||
||36,881,430.75|27,741,973.71|
|intangible and other long-term assets|||
|Cash paid for investment|36,149,974.00|1,097,787.00|
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||73,031,404.75|28,839,760.71|
|activities|||
|Net cash flows arising from investing|||
||-54,577,330.95|23,934,986.17|
|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|686,048,061.59|716,333,000.05|
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
||686,048,061.59|716,333,000.05|
|activities|||
|Cash paid for settling debts|381,572,057.56|95,834,477.54|

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|Cash paid for dividend and profit|||
||3,958,191.54|1,963,928.25|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|||2,973,468.35|
|financing activities|||
|Subtotal of cash outflow from|||
||385,530,249.10|100,771,874.14|
|financing activities|||
|Net cash flows arising from financing|||
||300,517,812.49|615,561,125.91|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|7,204,996.05|1,286,792.08|
|exchange rate|||
|V. Net increase of cash and cash|||
||126,384,524.97|332,500,801.19|
|equivalents|||
|Add: Balance of cash and cash|||
||2,645,879,017.88|2,238,884,137.50|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||2,772,263,542.85|2,571,384,938.69|
|equivalents at the period -end|||

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Tang Bin
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|919,267,902.33|936,702,970.03|
|services|||
|Write-back of tax received|35,315,414.37|32,722,151.29|
|Other cash received concerning|||
||1,969,905.92|3,086,145.94|
|operating activities|||
|Subtotal of cash inflow arising from|||
||956,553,222.62|972,511,267.26|
|operating activities|||
|Cash paid for purchasing|||
||973,813,926.55|1,097,447,589.58|
|commodities and receiving labor|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|service|||
|Cash paid to/for staff and workers|90,288,074.11|82,535,290.35|
|Taxes paid|25,736,819.33|19,957,054.76|
|Other cash paid concerning|||
||66,618,277.52|74,575,556.76|
|operating activities|||
|Subtotal of cash outflow arising from|||
||1,156,457,097.51|1,274,515,491.45|
|operating activities|||
|Net cash flows arising from operating|||
||-199,903,874.89|-302,004,224.19|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|965,112.00|729,950.00|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||14,255,616.51|12,445,872.25|
|investing activities|||
|Subtotal of cash inflow from investing|||
||15,220,728.51|13,175,822.25|
|activities|||
|Cash paid for purchasing fixed,|||
||15,521,939.44|22,506,664.19|
|intangible and other long-term assets|||
|Cash paid for investment|6,000,000.00|4,950,000.00|
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||21,521,939.44|27,456,664.19|
|activities|||
|Net cash flows arising from investing|||
||-6,301,210.93|-14,280,841.94|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||

Hefei Meiling Co., Ltd.The First Quarterly Report of 2015
||||
|-|-|-|
|investment|||
|Cash received from loans|619,816,005.59|655,241,500.05|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||4,801,561.18|50,210,844.95|
|financing activities|||
|Subtotal of cash inflow from financing|||
||624,617,566.77|705,452,345.00|
|activities|||
|Cash paid for settling debts|347,191,657.56|65,300,977.54|
|Cash paid for dividend and profit|||
||3,496,983.19|1,228,608.27|
|distributing or interest paying|||
|Other cash paid concerning|||
||19,697,344.21|1,813,437.05|
|financing activities|||
|Subtotal of cash outflow from|||
||370,385,984.96|68,343,022.86|
|financing activities|||
|Net cash flows arising from financing|||
||254,231,581.81|637,109,322.14|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|6,512,404.39|245,030.45|
|exchange rate|||
|V. Net increase of cash and cash|||
||54,538,900.38|321,069,286.46|
|equivalents|||
|Add: Balance of cash and cash|||
||2,390,446,316.58|1,996,577,625.49|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||2,444,985,216.96|2,317,646,911.95|
|equivalents at the period -end|||

Legal Representative: Liu Tibin
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Tang Bin
II. Audit report
Whether the
1st
quarterly report has been audited or not
□Yes√ No
Hefei Meiling Co., Ltd.
Chairman: Liu Tibin
18 April 2015