HEFEI MEILING CO., LTD.
THE THIRD QUARTERLY REPORT FOR 2017
October 2017
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) 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 hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
Principal of the Company Mr. Li Wei, Person in Charge of Accounting Works Mr. Zhang Xiaolong and Person in Charge of Accounting Organ (Accounting Officer) Mr. Luo Bo hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete.
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Third quarterly report of 2017 has not been audited.
All directors of the Company are attended the Meeting for quarterly report deliberation.
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) Section II Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes√No
||||||||
|-|-|-|-|-|-|-|
||||||Changes of this period-end||
||End of this period||End of last period||over same period-end of last||
||||||year||
|Total assets(RMB)|16,383,030,571.27||12,507,567,310.84||30.98%||
|Net assets attributable to|5,145,115,072.82||5,095,160,291.91||||
|shareholders of listed company|||||0.98%||
|(RMB)|||||||
|||||||Increase/decrease in|
|||Increase/decrease in|||||
|||||Year-begin to end of||comparison with|
||Current period|comparison with same|||||
|||||the Period||year-begin to|
|||period of last year|||||
|||||||Period-end of last year|
|Operating revenue (RMB)|4,661,344,340.71|48.90%||13,179,138,533.81||31.83%|
|Net profit attributable to|28,147,276.19|||120,222,315.96|||
|shareholders of the listed company||-49.10%||||-27.27%|
|(RMB)|||||||
|Net profit attributable to|||||||
|shareholders of the listed company|||||||
||15,681,839.2|-62.80%||82,587,178.18||-37.89%|
|after deducting non-recurring gains|||||||
|and losses(RMB)|||||||
|Net cash flow arising from||||-130,798,084.09|||
||--|--||||-108.37%|
|operating activities(RMB)|||||||
|Basic earnings per share|0.0269|||0.1151|||
|||-62.85%||||-46.81%|
|(RMB/Share)|||||||
|Diluted earnings per share|0.0269|||0.1151|||
|||-62.85%||||-46.81%|
|(RMB/Share)|||||||
|||1 percentage points||||2.33 percentage points|
|Weighted average ROE|0.55%|||2.34%|||
|||down||||down|

 Note: the earnings per share calculated at same period of last year were based on total shares of 763,739,205, and
the Company offering 280,858,676 common shares (A-stock) by privately placement in October 2016, total shares
capital of the Company goes to 1,044,597,881 shares. Therefore, the earnings per shares calculated in the period
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) were based on total shares of 1,044,597,881.
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to end||
|Item||Note|
||of the Period||
|||Found in “Non-operating income|
|Gains/losses from the disposal of non-current asset (including the|||
||-13,970,120.28|and expenditure” and|
|write-off that accrued for impairment of assets)|||
|||“Investment income”|
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||36,093,847.79||
|national standards, which are closely relevant to enterprise’s|||
|business)||Found in “Non-operating income”|
|Except for effective hedge business relevant to normal operation|||
|of the Company, gains and losses arising from fair value change|||
|||Found in “Changes in fair value|
|of tradable financial assets and tradable financial liabilities, and|-15,475,683.18||
|||gains”|
|investment income from disposal of tradable financial assets,|||
|tradable financial liabilities and financial assets available for sale|||
|Other non-operating income and expenditure except for the||Found in “Non-operating income|
||1,687,944.93||
|aforementioned items||and expenditure”|
|Gain/losses items qualified definition of the non-recurring|||
||36,783,219.64|Found in “Investment income”|
|gains/losses|||
|Less: impact on income tax|6,458,995.14|--|
|Impact on minority shareholders’ equity (post-tax)|1,025,075.98|--|
|Total|37,635,137.78|--|

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
The Company has no 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, in the period
II. Total number of shareholders at the end of this report period and top ten shareholders 1. Number of common shareholders and preference shareholders with voting rights recovered and top ten
common shareholders
In shares
|||||
|-|-|-|-|
|Total number of common shareholders at|61,867|Total preference shareholders|0|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|the end of report period(A/C)||||with voting rights recovered at|||||||
|||||end of reporting period (if|||||||
|||||applicable)|||||||
|Top ten shareholders|||||||||||
|||||||||Number of share|||
|||||||Amount of|||||
||||||Amount of|||pledged/frozen|||
|Shareholder’s name|Nature of|Proportionof shares||||restricted shares|||||
||shareholder||||shares held|||State of|||
|||held||||held||||Amount|
|||||||||share|||
|Sichuan Changhong Electric Co., Ltd.|State-owned legalperson|22.47%|||234,705,968|69,877,638|||||
|||||||||--||--|
|Hefei Industrial Investment Holding(Group) Co., Ltd.|State-owned legalperson|4.58%|||47,823,401|0|||||
|||||||||--||--|
|Changhong (Hong Kong) Trade Co., Ltd.(Note 1)|Foreign legalperson|2.96%|||30,895,442|0|||||
|||||||||--||--|
|Ping An Annuity Insurance Company ofChina, Ltd. – Ping An Pension Ruifu privateplacement No.1 Assets ManagementProducts|Domesticnon-state-ownedlegal person|2.26%|||23,613,595|23,613,595|||||
|||||||||--||--|
|Golden Ergle- SPD-U Trust-U Trust JinYueNo.4 Collected Asset Trust Plan|Domesticnon-state-ownedlegal person|2.26%|||23,613,595|23,613,595|||||
|||||||||--||--|
|CAO SHENGCHUN|Foreign naturalperson|1.32%|||13,829,083|0|||||
|||||||||--||--|
|Ping An UOB-Ping An Bank-GuohaiSecurities Co., Ltd.|Domesticnon-state-ownedlegal person|1.20%|||12,522,361|12,522,361|||||
|||||||||--||--|
|Ping An Bank – Ping An UOB DingtaiFlexible Mix Stock Investment Fund|Domesticnon-state-ownedlegal person|1.20%|||12,522,361|12,522,361|||||
|||||||||--||--|
|Caitong Fund- Ningbo Bank-HaitongXingtai (Anhui) Emerging IndustryInvestment Fund (Limited Partnership)|Domesticnon-state-ownedlegal person|1.03%|||10,733,452|10,733,452|||||
|||||||||--||--|
|National Social Security Funds-504|Domesticnon-state-ownedlegal person|0.94%|||9,838,998|9,838,998|||||
|||||||||--||--|
|Harvest Fund- Ping An Bank- Huaxia AssetManagement Co., Ltd.|Domesticnon-state-ownedlegal person|0.94%|||9,838,998|9,838,998|||||
|||||||||--||--|
|Top ten shareholders with unrestricted shares held|||||||||||
||||Amount of unrestricted||||Type of shares||||
|Shareholder’s name|||||||||||
||||shares held||||Type||Amount||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||||
|-|-|-|-|-|
|Sichuan Changhong Electric Co., Ltd.||164,828,330|RMB ordinary||
|||||164,828,330|
||||shares||
|Hefei Industrial Investment Holding (Group) Co., Ltd.||47,823,401|RMB ordinary||
|||||47,823,401|
||||shares||
|Changhong (Hong Kong) Trade Co., Ltd.||30,895,442|Domestically listed||
|||||30,895,442|
||||foreign shares||
|CAO SHENGCHUN||13,829,083|Domestically listed||
|||||13,829,083|
||||foreign shares||
|ICBC- Dongfanghong New Dynamic Flexible Mixed InvestmentFunds||6,596,794|RMB ordinary||
|||||6,596,794|
||||shares||
|CMB- Dongfanghong JD Big Data Flexible Mixed InvestmentFund||5,400,945|RMB ordinary||
|||||5,400,945|
||||shares||
|NORGES BANK||4,546,432|Domestically listed||
|||||4,546,432|
||||foreign shares||
|China Securities Finance Corporation Limited||4,362,500|RMB ordinary||
|||||4,362,500|
||||shares||
|Long Qinfang||3,353,496|Domestically listed||
|||||3,353,496|
||||foreign shares||
|Vanguard Investment Australia Co., Ltd. –Vanguard EmergingMarket Index Funds (Exchange)||2,685,828|RMB ordinary||
|||||2,685,828|
||||shares||
||Among the above shareholders, Changhong (Hong Kong) Trade Co., Ltd. is the wholly-owned||||
||subsidiary of Sichuan Changhong Electronic Co., Ltd., which holds B-share of the Company||||
||and holds through Hui Li Securities (H.K.) Limited; there existed no associated relationship or||||
||belong to the concerted actors as specified in the Measures for the Administration of||||
||Information Disclosure of Shareholder Equity Changes of Listed Companies among Sichuan||||
||Changhong Electronic Co., Ltd., Changhong (Hong Kong) Trade Co., Ltd. and other top 8||||
||shareholders; and top ten shareholders with unrestricted subscription;||||
||" Ping An UOB-Ping An Bank-Guohai Securities Co., Ltd. " and " Ping An Bank – Ping An||||
|Explanation on associated relationship|||||
||UOB Dingtai Flexible Mix Stock Investment Fund " have subscribed the investment portfolio||||
|among the aforesaid shareholders|||||
||managed by Ping An Dahua Fund Management Co., Ltd. in the Company's non-public||||
||offering of shares in 2016; "“National Social Security Funds-504 ” and “Harvest Fund- Ping||||
||An Bank- Huaxia Asset Management Co., Ltd. ” have subscribed the investment portfolio||||
||managed by Harvest Fund Management Co., Ltd. in the Company's non-public offering of||||
||shares in 2016. The company neither knows whether there is any association among other||||
||shareholders, nor knows whether other shareholders belong to the persons acting in concert||||
||that is stipulated in the “Administrative Measures on Information Disclosure of Changes in||||
||Shareholding of Listed Companies”.||||
|Explanation on top ten common|||||
|shareholders involving margin business|Not applicable||||
|(if applicable)|||||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) Note 1: At end of the reporting period, the person acting in concert with controlling shareholder Sichuan Changhong-- Changhong (Hong Kong) Trading Company Limited, holds B-stock of the Company as 30,895,442 shares, among which, 3,817,645shares are held through Hui Li Securities (H.K.) Co., Ltd.
Note 2: In the above table, "the top ten shareholders" is subject to the data on stock transfer books provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch, in 2016, 7 issuing objects including Sichuan Changhong Electric Co., Ltd. , Ping An Dahua Fund Management Co., Ltd., Golden Eagle Fund Management Co., Ltd., Harvest Fund Management Co., Ltd., Ping An Endowment Insurance Co., Ltd., Rongtong Fund Management Co., Ltd., and Caitong Fund Management Co., Ltd. have subscribed thecompany’s non-public offering of A-shares in 2016. Up to the disclosure date, restriction period for the shares (210,981,038 shares) subscribed by six issuing object, Sichuan Changhong excluded, have 12 months ended, the share trades on 16 October 2017. Found more in relevant notice (Notice No.: 2016-057 and 2017-079) released dated 13 October 2016 and on 13 October 2017 respectively.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) Section III. Important events
I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons
√ Applicable□Not applicable
(I) Changes of items of balance sheet and cause analysis
In RMB
||||||
|-|-|-|-|-|
|Item|Closing balance|Opening balance|Changes|Reasons|
|Note receivable|3,048,120,777.27|1,421,429,723.73|114.44%|Note receivable increased at period-end for the prematuritynotes|
|Accounts receivable|1,571,813,566.63|1,118,960,552.49|40.47%|Sales of credit customers increased on a y-o-y basis|
|Advance payment|300,776,799.70|134,706,488.38|123.28%|The prepayment for land used right and house & buildingsunder the name of Anhui Dongwei Solar Energy Technology(hereinafter referred to as Anhui Dongwei)|
|Interest receivable|3,480,191.25|2,645,494.32|31.55%|The accrued interest for time deposit increased|
|Other receivables|110,485,645.16|39,553,919.44|179.33%|Bid bonds paid for land purchasement under the name ofsubsidiary Sichuan Changhong Air-conditioner Co., Ltd.(hereinafter referred to as Changhong Air-conditioner )|
|Non current assetsdue within one year|45,197,289.00|12,625,340.00|257.99%|The long-term time deposit under the name of subsidiaryZhongshan Changhong Electrics Co., Ltd. (hereinafterreferred to as Zhongshan Changhong) re-classified tonon-current assets due within one year at period-end|
|Other current assets|2,116,431,771.53|1,454,346,297.42|45.52%|Entrusted financing business increased in the period|
|Financial assetsavailable for sale|40,900,000.00|17,000,000.00|140.59%|Contribution for the new generation of IT venture capitalfund of Sichuan Hongyun|
|Investment realestate|59,289,274.10|13,275,631.40|346.60%|The new plants under the name of subsidiary ZhongkeMeiling Cryogenic Technology Co., Ltd (hereinafterreferred to as Zhongke Meiling), which has rented hastransferred to assets|
|Developmentexpenditure|95,378,543.18|45,023,750.60|111.84%|Investment for R&D increased in the period|
|Long-term deferredexpenses|4,483,750.69|1,132,075.48|296.06%|Expenses of the long-term assets to be amortized under thename of Changhong Air-conditioner increased|
|Other non-currentassets|-|34,615,630.00|-100.00%|Same as “non-current assets due within one year ”|
|Short-term loans|1,553,345,758.64|288,343,724.73|438.71%|Short-term loans from parent company increased in theperiod|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||||
|-|-|-|-|-|
|Financial liabilitiesmeasured by fairvalue and with itsvariation reckon intocurrent gains/losses|12,942,210.83|559,249.58|2214.21%|Change of the fair value of forward foreign exchangecontract in the period|
|Note payable|4,288,201,190.58|2,635,051,740.30|62.74%|Note payable increased at period-end for the prematuritynotes|
|Interest payable|2,820,852.12|1,617,352.01|74.41%|Loans interest paid from parent company|
|Dividends payable|16,973,446.44|2,545,801.23|566.72%|The Company contribute dividend in the period, and someof the shareholders did not withdraw|
|Non-currentliabilities due withinone year|65,793,269.73|272,202,590.10|-75.83%|The long-term loans are paid back on due by parentcompany, which has reclassified to non-current liability duewithin one year|
|Long-term loans|253,460,000.00|38,908,788.00|551.42%|Long-term loans from parent company increased in theperiod|
|Othercomprehensiveincome|-1,473,690.53|3,474,546.95|-142.41%|Changes of the foreign exchange rate in overseassubsidiaries|
|Minority’s interest|101,795,027.15|70,921,198.01|43.53%|Minority shareholders equity increased for new subsidiaryMeiling Kadi Washing Machine Co., Ltd. (hereinafterreferred to as Meiling Kadi) established in the period|

 (II) Changes of items of profit statement and cause analysis
In RMB
||||||
|-|-|-|-|-|
|Item|This Period|Same period of lastyear|Changes|Reasons|
|Business income|13,179,138,533.81|9,997,224,966.94|31.83%|Product sales increased on a y-o-y basis|
|Operating costs|10,848,595,161.10|8,029,455,223.27|35.11%|Product sales increased on a y-o-y basis|
|Financial expenses|-39,804,446.21|-69,033,626.17|42.34%|Exchange earnings from parent company andZhongshan Changhong decreased on a y-o-y basis|
|Assets impairment losses|30,602,083.00|5,766,561.15|430.68%|Bad debt provision increased for the growth ofaccount receivable|
|Add: Changing income offair value(Loss is listed with“-”)|-15,475,683.18|2,136,627.20|-824.30%|Losses the changes of fair value from forwardforeign exchange contract in the period|
|Investment income (loss islisted with “-“)|39,675,737.03|6,625,694.81|498.82%|Entrusted financing earnings increased on a y-o-ybasis|
|Investment income onaffiliated company and jointventure|2,235,018.46|3,536,619.33|-36.80%|Earnings from associated enterprises declined on ay-o-y basis|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||||
|-|-|-|-|-|
|Other benefits|3,775,806.69|-|100.00%|Tax return from subsidiary Mianyang MeilingSoftware Technology Co., Ltd. (hereinafter referredto as Meiling Software)|
|Gain on disposal of noncurrent assets|261,776.49|4,017,716.14|-93.48%|Earnings from fixed assets disposal declined on ay-o-y basis|
|Non operating expenses|14,573,069.00|5,401,767.97|169.78%|Loss from assets disposal for relocation insubsidiary Mianyang Meiling Refrigeration Co.,Ltd. (hereinafter referred to as Mianyang Meiling)|
|Disposal loss of non-currentasset|14,234,403.75|5,041,587.90|182.34%|Same as “non-operation expenditure”|
|Income tax expense|24,356,057.20|36,173,658.96|-32.67%|Taxable income declined on a y-o-y basis|
|Minority shareholders’ gainsand losses|7,618,443.66|547,468.49|1291.58%|Earnings from some of the non-wholly-ownedsubsidiary increased on a y-o-y basis|

 (III) Changes of items of cash flow statement and cause analysis
In RMB
||||||
|-|-|-|-|-|
|Item|This Period|Same period of lastyear|Changes|Reasons|
|Write-back of tax received|332,183,490.22|247,773,581.20|34.07%|Export rebate in the period increased on a y-o-y basis|
|Cash paid for purchasinggoods and labor servicereceived|9,088,798,341.30|6,611,688,071.65|37.47%|The amount for raw material purchasement andpayment of the due note payable increased on a y-o-ybasis|
|Other cash paid concerningoperating activities|626,015,434.18|403,000,203.98|55.34%|Monetary capital with operational limit increased ona y-o-y basis|
|Cash received from returns ofinvestments|2,957,000,000.00|500,000,000.00|491.40%|The principal for entrust financing collectedincreased on a y-o-y basis|
|Cash received frominvestment income|47,477,575.32|6,693,575.48|609.30%|Entrusted financing earnings increased on a y-o-ybasis|
|Net cash received fromdisposal of fixed assets,intangible assets and otherlong-term assets|2,531,948.87|25,572,793.14|-90.10%|Collection from assets disposal declined from a yearearlier|
|cash paid for purchasing fixedassets, intangible assets andother long-term assets|343,043,647.04|97,689,141.65|251.16%|Purchase and construction of fixed assets increasedfrom a year earlier|
|Cash paid for investment|3,581,652,412.20|115,583,860.00|2998.75%|Principal paid for entrust financing increased from ayear earlier|
|Cash paid for otherinvestment activities|10,574,661.31|4,296,600.00|146.12%|Delivery deficit from forward foreign exchangecontract increased from a year earlier|
|Cash received from absorbing|23,068,316.00|1,564,983,118.37|-98.53%|Collection from privately placement at same period|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||||
|-|-|-|-|-|
|investment||||of last year, while no such amount occurred in theperiod|
|Cash received from loans|2,371,636,546.03|1,512,385,108.63|56.81%|Short-term loans from parent company increasedfrom a year earlier|
|Cash received related withother financing activities|-|3,451.80|-100.00%|Piece meal dividend received at same period of lastyear by parent company, while no such dividendoccurred in the period|
|Cash paid for debts|1,096,840,299.04|800,889,419.18|36.95%|Short-term loans paid from parent companyincreased from a year earlier|
|IV. Influence on cash due tofluctuation in exchange rate|-18,706,015.36|20,383,777.92|-191.77%|Change of foreign exchange rate|

II. Analysis and explanation of significant events and their influence and solutions
√ Applicable□Not applicable
(I) Particular about the process of the fund raised and investment of fund raised
In 2016, the Company carried out private placement of A-share with 1,569,999,998.84 Yuan raise in total. Net amount raise as 1,540,732,722.76 Yuan after vary issuance costs (tax included) 29,267,276.08 Yuan deducted. After approved by
27th
session of
8th
BOD of 2016, the
14th
session of
8th
Supervisory Committee and 2nd extraordinary shareholders meeting of 2016, and agreed from the independent directors and after verification opinion without objection from the sponsor institution, the idle raise capital 900 million Yuan (rolling application) at most for one-year guaranteed financial products (with high safety, and good liquidity) investment to be allowed. So far, the Company used the raised fund in line with the decision-making and relevant regulations and standards. Up to
30th
September, the raised capital for raised-fund projects have invested 349,584,365.19 Yuan accumulate in total, balance of the specific raised-fund A/C counted as 1,223,350,100.88 Yuan (including accumulate interest 8,356,586.48 Yuan, maturity yield from bank financial products 23,697,815.82 Yuan and bank financial products 900 million Yuan purchased with idle raise fund)
The raised-fund investment 349,584,365.19 Yuan including the follow projects: intelligent manufacturing construction invested 31,225,044.04 Yuan accumulated; intelligent R& D capacity building and intelligent home appliances technology development project invested 29,478,657.38 Yuan accumulated; intelligent life project invested 18,000,600.00 Yuan in total and 270,880,063.77 Yuan (including interest 147,341.01 Yuan) accumulated for supplementation of the current capital.
Up to
30th
September 2017, among the intelligent manufacturing construction: the intelligent manufacturing construction (Hefei) has completed phase I construction basically, and proactively in phase II construction. The planning construction project of “production line construction project for newly increased 600,000 sets of environmental protection and energy saving freezers with large an medium volume” (Hereinafter referred to as "freezer intelligent construction project"), during the reporting period, because the No. 9 plant ofcompany’s freezer factory where the project construction site locates is used by the subsidiary - Zhongke Meiling Cryogenic Technology Co., Ltd. as its new plant is still under construction, the implementation of this project is affected, and
the project is still in the factory planning stage. And expect to complete at end of 2018; the project of "intelligent
R& D capacity building and intelligent home appliances technology development project" is in the process of
promoting in accordance with the investment plan; as the implementation subject of "intelligent life project",
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) Changmei Science and Technology Co., Ltd. (hereinafter referred to as "Changmei Technology") actively exploit the marks and promote a normal operation in reporting period.
(II) Implementation for annual performance incentive fund
On August 9, 2012 and August 28, 2012, the Company considers the adoption of "Hefei Meiling annual performance incentive fund implementation plan" (hereinafter referred to as "" stimulus "") on the
16th
meeting of the
7th
board of directors and the 2012-second provisional shareholders meeting. Details were disclosed on August 10, 2012 and August 29th in the form of announcement (No.: 2012-028, No.:2012-035).
1. Implementation about 2012, 2013 and 2014 performance incentive fund provision and distribution plan See details in " Implementation about 2012, 2013 and 2014 performance incentive fund provision and distribution plan" in "XV Implementation of the company's stock incentive plan, employee stock ownership plan, or other employee incentive measures" in "Section V Significant Events" of the company's "2016 Annual Report" disclosed on March 30, 2017.
Up to the end of this reporting period, the company's stock purchased by some 2012/2013 annual performance incentive objects (non-directors, supervisors and senior management) with their granted 2012/2013 annual performance incentive funds and own funds has been fully desterilized. the company's stock purchased by some 2014 annual performance incentive objects (non-directors, supervisors and senior management) with their granted 2014 annual performance incentive funds and own funds has been desterilized by50% for term of holding for two years. The share-reducing for the above mentioned shares can be found as below. Among the incentive objects, the current directors, supervisors and senior management have not reduced theCompany’s shares purchased by implementing 2012, 2013, and 2014 annual performance incentive plans.
2. Implementation about 2016 performance incentive fund provision and distribution plan
Found more in "Implementation of the company's annual incentive fund for year of 2016" in "XI Implementation of the company's stock incentive plan, employee stock ownership plan, or other employee incentive measures" in "Section V Significant Events" of the company's "2017 Semi-Annual Report" disclosed on 10 August 2017 The incentive plan still in process till the reporting date
Found more in relevant notice (notice No.: 2017-010, 2017-011, 2017-015, 2017-031, 2017-035, 2017-036, 2017-037, 2017-041, 2017-062, 2017-064 and 2017-070) released respectively on 30 March 2017, 5 May, 3 June, 21 June, 10 August, 18 August, 19 August and 26 August as well as the 2017 Semi-Annual Report
3. Share holding and reduction of thecompany’s performance incentive objects
As of September 30, 2017, all incentive objects held a total of 12,351,777 shares, accounting for1.1824% of thecompany’s general capital, of which 11,018,645 shares of A share, accounting for approximately1.0548% of thecompany’s general capital, 1,333,132 shares of B share, and accounting for about0.1276% of thecompany’s general capital. Some 2012, 2013 and 2014 annual performance incentive objects (not directors, supervisors or senior management) have totally reduced share of 3,562,577shares from September 2014 to the end of the this reporting period, accounting for approximately0.3410% of thecompany’s general capital, and reduced holding of
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) 308,000 shares in this reporting period.
(III) Transaction with Sichuan Changhong Group Finance Co., Ltd.
Approved by the
34th
session of
8th
BOD held on 9 August 2017 and 12 September and
2nd
extraordinary shareholder meeting 2017, the Company are allowed to carried out financial service cooperation with Sichuan Changhong Group Finance Co., Ltd. (hereinafter referred to as "Changhong Finance Company"), and sign a "financial service agreement" with 3-year terms. Under the agreement, Changhong Finance Company would provide a series of financial services as deposit and loans ect. within the business scope in accordance with the requirements of the Company and its subsidiaries. Related transactions with Changhong Finance Company from year-begging to the period-end are as:
In RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increased duringthe Year|Decreased duringthe Year|Ending balance|Interest,handling chargepaid or received|
|I. Savings inChanghong GroupFinance Company|1,908,842,163.20|18,402,603,399.21|18,540,787,486.49|1,770,658,075.92|37,326,259.07|
|II. Borrowingsfrom ChanghongGroup FinanceCompany||||||
|1.Short-term loans|-|-|-|-|-|
|2.Long-term loans|-|-|-|-|-|
|III. Otherfinancial business||||||
|1.notesdrawing|544,374,441.19|1,596,908,825.43|955,035,279.26|1,186,247,987.36|459,673.48|
|2.notesdiscounted|565,252,574.29|1,454,683,667.45|1,283,818,658.05|736,117,583.69|16,034,907.49|

(IV) Other significant events
||||
|-|-|-|
||Date for|Information index for temporary report|
|Overview|||
||disclosure|disclosure|
|Controlling shareholder – Sichuan Changhong Electric Co., Ltd.(hereinafter referred to as Sichuan Changhong), plans to offeringexchangeable bonds privately with part of the A-shares of the Companyheld and its fruits|||
|||Juchao|
||28 Feb. 2017|Website: http://www.cninfo.com.cn( No.:|
|||2017-004)|
|Former staff supervisor Mr. Shang Wen resigned his post as staff supervisorof the 8th BOD for personnel job change. Meanwhile, the Staff Congress||Juchao Website: http://www.cninfo.com.cn(No.:|
||2 March 2017||
|||2017-005)|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|held on 28 Feb. 2017, after democratic election, Mr. Deng Li supplementedas staff supervisor of 8th supervisory committee of the Company|||
|Approved by the resolution from the Board, subsidiary Jiangxi MeilingElectric Co., Ltd. (hereinafter referred to as Jiangxi Meiling) allowedestablishing an intelligent production line for one million sets ofenvironmental and energy-saving refrigerators with 209.6 million Yuan.Meanwhile, allowed the Company invested 200 million Yuan for thisproject.|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||14 March 2017||
|||2017-006)|
|Approved by the resolution from the Board, subsidiary ZhongshanChanghong Electric Co., Ltd. ( hereinafter referred to as ZhongshanChanghong) allowed established the Zhongshan Hongyou NuantongEquipment Co., Ltd. (tentatively, the name shall approved by Industrial &Commerce Bureau) with Zhuhai Sanyou Environment Technology Co.,Ltd. (hereinafter referred to as Sanyou Changhong), the enterprise withadvantage of R&D, technology and channels as well as foreign clientsresource. Registered capital amounted as 40 million Yuan, the ZhongshanChanghong contributes 24 million Yuan with owned funds while SanyouEnvironment invested 16 million Yuan.|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||14 March 2017||
|||2017-006)|
|On 21 March 2017, the Company entered into a Strategy CooperationFramework Agreement with Italy Candy Hoover Group S.r.l., CandyS.p.A.. The two parties will establishing strategic cooperative partnership infield of refrigerator (ice box), washing machine business. Expandingmarket together, promote the brand to achieved a maximum commercialvalue and social value|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||21 Mar. 2017||
|||2017-007)|
|Approved by the resolution from the Board and shareholders meeting, theCompany and subsidiaries carried forward foreign exchange fundtransactions during 1 July 2017 to 30 June 2018. Balance of the transactionwill not exceed $ 550 million, delivery period for single business will notexceed one year|||
||30 Mar. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||5 May 2017|2017-010, No.: 2017-017, No.: 2017-031)|
|Approved by the resolution from the Board, the Company allowedinvesting 371.21 million Yuan at most for production line of the 2 millionfully-automatic washing machines|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||30 Mar. 2017||
|||2017-010)|
|Approved by the resolution from the Board, the Company participates injudicial sales of the plants and office buildings and lands under the name ofAnhui Dongwei with owned funds, in bidding price range authorized by theBoard. On 30 March 2017, the Company participate the bidding byregulations, and successful bidding the areas of plans and buildings andland use right. Recently, the Company in process of ownership transferredprocedures.|||
||30 Mar. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||14 Apr. 2017|2017-010, No.: 2017-024)|
|Approved by the resolution from the Board, subsidiary Hefei MeilingNonferrous Products Co., Ltd. (hereinafter referred to as MeilingNonferrous) entered into the Cooperative Contract of the Lands of Meiling|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||30 Mar. 2017||
|||2017-010, No.: 2017-018)|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Nonferrous in Feidong Country with Hefei Vanke Property Co., Ltd., inaspect of the lands located in Liaoyuan East Road, Feidong County, Hefeiowned by Meiling Nonferrous|||
|Approved by the resolution from the Board, the Company allowedestablishing Meiling Kadi Washing Machine Co., Ltd. with Candy HooverGroup S.r.l. (hereinafter referred to as Candy Group). Registered capitalamounted to 150 million Yuan, the Company invested 90 million Yuan incash while Candy Group invested 60 million Yuan in cash or equivalentUSD.|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||30 Mar. 2017||
|||2017-010)|
|Approved by the resolution from the Board, the Company allowed toapplied for a special credit line of bill pool to Hefei Branch of CMB with300 million Yuan at most for one year, and in way of bill pledge, theproducts mainly used in the polling business|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||30 Mar. 2017||
|||2017-010, No.: 2017-019)|
|Former deputy chairman Mr. Xu Bangjun resigned his post as deputychairman, director of the 8th BOD, and committee member of strategyCommittee and committee member of remuneration and approvalcommittee for personnel job change.|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||25 Apr. 2017||
|||2017-028)|
|On 24 April 2017, the Company received a proposal of non-independentdirector by-election for 8th BOD from controlling shareholder SichuanChanghong. Mr. Teng Guangsheng nominated for candidate of thenon-independent director of 8th BOD, and the proposal shall be deliberatein AGM 2016 as extraordinary proposal. On 4 May 2017, approved byAGM 2016, Mr. Teng Guangsheng elected as non-independent director ofthe Company.|||
||25 Apr. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||5 May 2017|2017-029, No.: 2017-031)|
|For keeping the controls of the Company, promoted a sustainable, stableand healthy development of the Company, controlling shareholder- SichuanChanghong purchased tradable B-share of the Company via trading systemof SSE through the person acting in concert Changhong (HongKong) Trading Company Limited (hereinafter referred to as HKChanghong ) during 19 April 2017 to 14 September 2017. Totally5,729,619 shares purchased, a 0.55% of total shares of the Company so far.|||
||26 May 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||30 Sept. 2017|2017-032, No.: 2017-078)|
|On 28 March 2017 and 4 May 2017, the 29th session of 8th BOD, 15thsession of 8th supervisory committee and AGM 2016 approved the ProfitDistribution Plan of 2016. Based on total share capital 1,044,597,881 up to31 December 2016, distributed cash bonus 0.6 Yuan (tax included) forevery 10-share held by shareholders. The profit distribution plan hascompleted.|||
||30 Mar. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||5 May 2017|2017-010, No.: 2017-011, No.: 2017-031, No.:|
||27 May 2017|2017-033)|
|In July 2017, the Company received the Accept the Registration Noticefrom National Association of Financial Market Institutional Investors(hereinafter referred to as NAFMII), the SCP registration of the Companyaccepted by NAFMII|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||13 Jul. 2017||
|||2017-046)|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Former chairman Mr. Liu Tibin resigned his post as chairman, director ofthe 8th BOD, and committee member of strategy Committee and committeemember of nomination committee for personnel job change.|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||19 Jul. 2017||
|||2017-048)|
|Former president Mr. Li Wei resigned his post as president of the Companyfor personnel job change. Meanwhile, approved by 33rd session of theBoard, Mr. Li Wei was elected as Chairman of 8th BOD; Mr. Wu Dinggangappointed as president of the Company|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||22 Jul. 2017||
|||2017-049, No.: 2017-050)|
|Approved by the resolution from the Board, subsidiary GuangdongChanghong Ridian Technology Co., Ltd. (hereinafter referred to as RidianTechnology) allowed establishing a wholly-owned subsidiary HebeiHongmao Appliance Technology in Handan City, Hebei Province in 5million Yuan cash, which engaged in the production, R&D, and sales of gasheating hot water products act.|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||22 Jul. 2017||
|||2017-050)|
|On 9 August and 12 September 2017, the election resolution for 9th BODand supervisory committee have approved by 34th session of 8th BOD, the18th session of 8th supervisory committee and 2nd extraordinaryshareholders meeting of 2017. The office term comes to 3-year from 12September 2017 to 12 September 2020.On 12 September 2017, approved by 1st extraordinary meeting of 9th BOD,Mr. Li Wei was elected as Chairman of 9th BOD; Mr. Wu Dinggang electedas deputy Chairman of 9th BOD; The meeting approved the resolution ofestablish specific committee under the 9th BOD of the Company and theproposal on Appointing Senior Managers of the Company.At the same day, approved by 1st extraordinary meeting of 9th supervisorycommittee, Mr. Shao Min was elected as chairman of 9th supervisorycommittee of the Company|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||10 Aug. 2017||
|||2017-053, No.: 2017-054, No.: 2017-057, No.:|
||13 Sept. 2017||
|||2017-073, No.: 2017-074, No.: 2017-075)|
|Approved by the resolution from the Board, Supervisory, and shareholdersmeeting, after opinion issued by independent director and sponsor institute,the Company allowed to re-sign a 3-year Financial Service Agreement withChanghong Finance Company. And in the agreement, in 3 years since thenew agreement come into effective, the maximum balance (includingaccrual interest and handling charge) and maximum unpaid mortgagepayment everyday in Finance Company adjusted to 3,800 million Yuan atmost.|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||10 Aug. 2017||
|||2017-053, No.: 2017-054, No.: 2017-058, No.:|
||13 Sept. 2017||
|||2017-073)|
|Approved by the resolution from the Board, the shares of Zhongke Meilingheld under the name of resigning employees, 400,000 shares in total,allowed to transferred from Zhongke Meiling Cryogenic Technology Co.,Ltd. (hereinafter referred to as Zhongke Meiling)|||
||10 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
|||2017-053)|
|Approved by the resolution from the Board, subsidiary ZhongshanChanghong Appliance Co., Ltd. (hereinafter referred to as ZhongshanChanghong) and partner UAE RUBA Company allowed to increased thecapital in joint venture manufacturing company and sales company, carried|||
||10 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
|||2017-053, No.: 2017-059)|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|out the foaming of refrigerator door and new product development. TheZhongshan Changhong increased $ 8,150,000.|||
|Approved by the resolution from the Board, and shareholders meeting,according to development needs of the Company, operation business scopeallowed to supplemented, and revised relevant regulations in Article ofAssociation of the Company|||
||10 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||13 Sept. 2017|2017-053, No.: 2017-060, No.: 2017-073)|
|Approved by the resolution from the Board, and shareholders meeting,Sichuan Changhong Air-conditioner Co., Ltd. (hereinafter referred to asChanghong Air-conditioner) allowed investing 1090.4101 million Yuan inMianyang Economy Development Zone for the relocation and capacityexpansion project, to establish a production base for air-conditioner with4.2 million sets made in one year. At the same time, the Company allowedto increased 650 million Yuan capital in Changhong Air-conditioner|||
||10 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||13 Sept. 2017|2017-053, No.: 2017-061, No.: 2017-073)|
|Approved by the resolution from the Board, and shareholders meeting, theCompany allowed to increased the forecast of routine related transactionsfor year of 2017 to 461 million Yuan in total, which will occurred betweenthe Company/subsidiary and Changhong Group/its subsidiary (SichuanChanghong excluded), and Sichuan Changhong /its subsidiary (HuayiCompressor Co., Ltd excluded)|||
||22 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||13 Sept. 2017|2017-065, No.: 2017-066, No.: 2017-073)|
|Approved by the resolution from the Board, Zhongshan Changhongallowed to invested approximately 24.367 million Yuan in technicalreconstruction for its production line etc.|||
||22 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
|||2017-065)|
|Approved by the resolution from the Board, and according toimplementation of incentive fund 2016 under the name of ZhongkeMeiling, Zhongke Meiling allowed carrying out the directional issue ofshares. The issuing object -- management of Zhongke Meiling willsubscribe in cash, meanwhile, the Company give up the pre-emptive rightunder the same conditions in this issuance|||
||22 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
|||2017-065, No.: 2017-067)|
|Approved by the resolution from the Board, the Company allowed toapplied for a special credit line of bill pool to Hefei Luyang Branch of CCBwith 400 million Yuan at most for one year, and in way of bill pledge|||
||22 Aug. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
||13 Sept. 2017|2017-065, No.: 2017-068, No.: 2017-073)|
|Approved by the resolution from the Board, Changhong Air-conditionerallowed to invested approximately 37.0586 million Yuan for technicalrevamping of capacity expansion|||
|||Juchao Website: http://www.cninfo.com.cn(No.:|
||13 Sept. 2017||
|||2017-074)|
|Up to the disclosure date, balance of bank and entrust financial products(without expired) purchased by the Company with owned funds amountedas 755.2 million Yuan, balance of guaranteed bank financial productswithout expired purchased with idle raised fund amounted as 900 millionYuan.|24 Jan. 2017|Juchao Website: http://www.cninfo.com.cn(No.:|
|||2017-002, No.: 2017-003, No.: 2017-008, No.:|
||16 Feb. 2017||
|||2017-009, No.: 2017-020, No.: 2017-021, No.:、|
||23 March 2017||
|||2017-034, No.: 2017-039, No.: 2017-042, No.:|
||25 March 2017||
|||2017-044, No.: 2017-045, No.: 2017-047, No.:|
||1 Apr. 2017||
|||2017-051, No.: 2017-063, No.: 2017-076, No.:、|
||8 Apr. 2017|2017-077, No.: 2017-081)|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||
|-|
|27 May 2017|
|9 Jun. 2017|
|24 Jun. 2017|
|1 Jul. 2017|
|8 Jul. 2017|
|13 Jul. 2017|
|27 Jul. 2017|
|19 Aug. 2017|
|28 Sept. 2017|
|30 Sept. 2017|
|17 Oct. 2017|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) III. Commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□ Applicable√ Not applicable
There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period.
IV. Forecast of operation performance of 2017
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
V. Securities Investment
□ Applicable√ Not applicable
No security investment in Period.
VI. Particulars about derivatives investment
√ Applicable□Not applicable
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) In 10 thousand Yuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Amount of||Ratio of||
|||||||||||reserve for||investment||
||Relate|Whether||||||Amount||||||
||||||||Investment||Amount sold|devaluation|Investment|amount at|Actual|
||d|related||Initial||||purchased||||||
|Operator|||Type||Start date|End date|amount at||during the|of|amount at|period-end in net|gains/losses in|
||relatio|trade or||investment||||during the||||||
||||||||period-begin||reporting period|withdrawing|period-end|assets of the|period|
||nship|not||||||reporting period||||||
|||||||||||(if||Company at||
|||||||||||applicable)||period-end||
||||Forward|||||||||||
|Financial|||foreign|||||||||||
||N/A|No||63,230.44|2016-6-8|2018-6-26|37,890.69|251,858.33|93,066.38|-|188,308.27|36.60%|260.04|
|institutions|||exchange|||||||||||
||||contract|||||||||||
|Total||||63,230.44|--|--|37,890.69|251,858.33|93,066.38|-|188,308.27|36.60%|260.04|
|Capital resource||||Self-owned capital||||||||||
|Lawsuits (if applicable)||||Not applicable||||||||||
|Disclosure date for approval from the Board for||||||||||||||
|||||2017-3-30||||||||||
|investment of derivatives (if applicable)||||||||||||||
|Disclosure date for approval from board of||||||||||||||
|shareholders for investment of derivatives (if||||2017-5-4||||||||||
|applicable)||||||||||||||
|||||1. Market risk: the changes in domestic and foreign economic situation may create a major volatility in exchange rate, future exchange business under certain market||||||||||
|Venture analysis and explanation on control||||||||||||||
|||||risks. Forward exchange transaction business of the Company aims at lock-up the price in sale and purchase of foreign exchange, and lowers the impact on profit from||||||||||
|measures for derivatives holding in Period||||||||||||||
|||||exchange fluctuations. The Company will closely following the changes in exchange rate, based on the target rate fix by business, with the research and judgment in||||||||||
|(including but not limited to market risk,||||||||||||||
|||||aspect of the trend in foreign exchange rate, determine the signature planning of agreement for forward exchange transaction combine with prediction on receipt and||||||||||
|liquidity risk, credit risks, operational risk and||||||||||||||
|||||payment as well as the tolerance capacity of changing price arising from rate fluctuation; implement dynamic management on the business to guarantee a reasonable||||||||||
|legal risk etc.)||||||||||||||
|||||profit standards for the Company.||||||||||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
|||
|-|-|
||2. Liquidity risk: all of the foreign exchange funds trading are depend on reasonably estimated of the import-export business in future, satisfy the requirement of trading|
||truth. In addition, forward exchange transaction operates in way of bank credit; there is no impact on the fund liquidity of the Company.|
||3. Bank default risk: if the cooperative bank close down or default in contractual period, the Company is un-able to settle the original foreign exchange contract in|
||contractual price, it exists a risks of income uncertainty. Therefore, the Company chose the Chinese-funded banks as Bank of China, Agricultural Bank of China,|
||Industrial and Commercial Bank of China and China Construction Bank, and CEB, China CITIC Bank –the shareholding Chinese banks for the foreign exchange funds|
||trading and part of the larger foreign banks (e.g. Deutsche Bank, United Overseas Bank, Oversea-Chinese Banking Corp. etc.), the above mentioned banks owns fund|
||strength and operating soundness, there is a slim chance of money costs for close down.|
||4. Operational risk: the money trading in forward exchange might causes relevant risks due to the incorrect operations by handling personnel, relevant management|
||mechanism has formulated by the Company, well-defined the operation procedure and duty officer in favor of preventing risk and risk control.|
||5. Legal risk: legal disputes may arise from the un-clear trading agreement signed between the Company and banks in aspect of money trading in forward exchange.|
||The Company strengthens the review on relevant contracts in way of law, and chooses banks for cooperation with good credit status in order to control the risk.|
|Particular about the changes of market price or|In accordance with the Article 7 “Recognition of Fair Value” of “The Accounting Standards for Enterprises No. 22—Recognition and Measurement of Financial|
|product’s fair value of invested derivatives in|Instruments”, the Company determined and measure the fair value basically in line with the price provided or obtained from pricing services such as banks. As for the|
|Period; as for analysis of the fair value of|calculation of fair value for derivatives, it mainly refers to the un-matured contract of forward exchange facilities that signed with the banks in reporting period, and|
|derivatives, disclosed specific treatment methods|recognized as transactional financial assets or liabilities based on the difference of forward exchange facilities’ contract quotation at period-end and forward rate. In the|
|and relevant hypothesis and parameter setting|reporting period, the gains/losses of forward foreign exchange contract amounting to 2,600,400 Yuan.|
|Explanation on major changes on specific||
|principle of accounting policy and accounting||
||Not applicable|
|calculation for derivatives in Period, by||
|comparing with last period||
||Upon inspection, the independent directors of the Company believes that: during the reporting period, the Company carried out its foreign exchange forward deals in|
||strict compliance with the standardized operation guidelines for listed issuer on main board (2015 amended) issued by Shenzhen Stock Exchange, the Articles of|
||Association, Authorization Management of the Company, Management System in relating to Foreign Exchange Forward Deals of Hefei Meiling Co., Ltd., and these|
||deals were conducted within the authorization scope under general meeting and board meeting. The Company conducts no foreign exchange transactions on the purpose|
|Specific opinions from independent directs on||
||of getting profit only, all of the forward foreign exchange transactions are operates based on normal operating and production, which is relying on specific business|
|derivative investment and risk controlling||
||operations with purpose of avoiding the preventing the risks in exchange rate. The forward foreign exchange transactions of the Company are beneficial to prevent the|
||exchange risks exposed by import and export business and thus met its requirement for operation development. There was no speculative operation, no break of relevant|
||rules and regulations and relevant business was conducted under corresponding decision-making procedures. Interests of the Company and entire shareholders,|
||especially minority shareholders, were not prejudiced.|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) VII. Registration form for receiving research, communication and interview in the report period
√ Applicable□Not applicable
|||||
|-|-|-|-|
|Time|Way|Type|Basic situation index of investigation|
|2017-1-12|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-1-18|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-2-15|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-2-24|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-4-20|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-5-11|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-5-25|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-6-14|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|
|2017-7-6|Field research|Institute|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000521|

VIII. Guarantee outside against the regulation
□Applicable√Not applicable
The Company had no guarantee outside against the regulation in the reporting period.
IX. Non-operational fund occupation from controlling shareholders and its related party□ Applicable√ Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party. X. Fulfill the precise social responsibility for poverty alleviation
The Company has no precise social responsibility for poverty alleviation in the period and has no follow-up plan either
HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text) Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Hefei Meiling Co., Ltd.
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|4,469,883,597.36|4,058,869,234.63|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair|||
|value and with variation reckoned into|8,967,491.37|12,060,213.30|
|current gains/losses|||
|Derivative financial assets|||
||3,048,120,777.27|1,421,429,723.73|
|Notes receivable|||
||1,571,813,566.63|1,118,960,552.49|
|Accounts receivable|||
|Accounts paid in advance|300,776,799.70|134,706,488.38|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|3,480,191.25|2,645,494.32|
|Dividend receivable|||
|Other receivables|110,485,645.16|39,553,919.44|
|Purchase restituted finance asset|||
|Inventories|2,300,644,579.42|1,974,526,734.86|
|Divided into assets held for sale|||
|Non-current asset due within one year|45,197,289.00|12,625,340.00|
|Other current assets|2,116,431,771.53|1,454,346,297.42|
|Total current assets|13,975,801,708.69|10,229,723,998.57|
|Non-current assets:|||
|Loans and payments on behalf|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Finance asset available for sales|40,900,000.00|17,000,000.00|
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|94,389,501.79|81,643,631.37|
|Investment property|59,289,274.10|13,275,631.40|
|Fixed assets|1,261,944,649.05|1,204,093,169.72|
|Construction in progress|100,095,959.87|107,037,409.95|
|Engineering material|||
|Disposal of fixed asset|75,846,390.89|75,788,138.47|
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|589,379,958.51|613,969,271.63|
|Expense on Research and|95,378,543.18|45,023,750.60|
|Development|||
|Goodwill|||
|Long-term expenses to be apportioned|4,483,750.69|1,132,075.48|
|Deferred income tax asset|85,520,834.50|84,264,603.65|
|Other non-current asset|-|34,615,630.00|
|Total non-current asset|2,407,228,862.58|2,277,843,312.27|
|Total assets|16,383,030,571.27|12,507,567,310.84|
|Current liabilities:|||
|Short-term loans|1,553,345,758.64|288,343,724.73|
|Loan from central bank|||
|Absorbing deposit and interbank|||
|deposit|||
|Capital borrowed|||
|Financial liability measured by fair|||
|value and with variation reckoned into|12,942,210.83|559,249.58|
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|4,288,201,190.58|2,635,051,740.30|
|Accounts payable|3,020,021,671.33|2,331,899,310.82|
|Accounts received in advance|471,826,277.65|390,935,440.46|
|Selling financial asset of repurchase|||
|Commission charge and commission|||
|payable|||
|Wage payable|165,651,828.54|189,592,039.00|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Taxes payable|43,059,629.85|59,849,032.13|
|Interest payable|2,820,852.12|1,617,352.01|
|Dividend payable|16,973,446.44|2,545,801.23|
|Other accounts payable|766,676,107.98|622,580,323.43|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due within 1|65,793,269.73|272,202,590.10|
|year|||
|Other current liabilities|||
|Total current liabilities|10,407,312,243.69|6,795,176,603.79|
|Non-current liabilities:|||
|Long-term loans|253,460,000.00|38,908,788.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|25,912,286.96|29,696,403.85|
|Special accounts payable|1,530,000.00|1,400,000.00|
|Projected liabilities|327,309,402.62|331,575,430.79|
|Deferred income|119,251,414.32|142,919,562.49|
|Deferred income tax liabilities|1,345,123.71|1,809,032.00|
|Other non-current liabilities|||
|Total non-current liabilities|728,808,227.61|546,309,217.13|
|Total liabilities|11,136,120,471.30|7,341,485,820.92|
|Owner’s equity:|||
|Share capital|1,044,597,881.00|1,044,597,881.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|2,685,317,635.93|2,687,961,060.65|
|Less: Inventory shares|||
|Other comprehensive income|-1,473,690.53|3,474,546.95|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Reasonable reserve|||
|Surplus public reserve|391,029,420.33|391,029,420.33|
|Provision of general risk|||
|Retained profit|1,025,643,826.09|968,097,382.98|
|Total owner’s equity attributable to parentcompany|5,145,115,072.82|5,095,160,291.91|
|Minority interests|101,795,027.15|70,921,198.01|
|Total owner’s equity|5,246,910,099.97|5,166,081,489.92|
|Total liabilities and owner’s equity|16,383,030,571.27|12,507,567,310.84|

 Legal Representative: Li Wei
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|Balance at period-end|Balance at period-begin|
|Current assets:|||
||2,538,891,650.59|3,071,362,771.31|
|Monetary funds|||
|Financial assets measured by fair value|||
|and with variation reckoned into current|8,177,491.37|12,060,213.30|
|gains/losses|||
|Derivative financial assets|||
||1,867,222,311.00|1,053,598,721.93|
|Notes receivable|||
|Accounts receivable|1,765,115,101.94|1,006,701,894.37|
|Account paid in advance|260,166,247.30|106,947,474.25|
|Interest receivable|||
|Dividends receivable|||
|Other receivables|65,110,294.20|26,742,423.95|
|Inventories|992,189,207.52|1,017,090,374.81|
|Divided into assets held for sale|||
|Non-current assets maturing within one|||
|year|||
|Other current assets|1,473,614,755.93|1,427,283,451.40|
|Total current assets|8,970,487,059.85|7,721,787,325.32|
|Non-current assets:|||
|Available-for-sale financial assets|31,000,000.00|17,000,000.00|
|Held-to-maturity investments|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Long-term receivables|||
|Long-term equity investments|1,027,003,540.91|992,282,289.21|
|Investment property|10,976,598.81|11,332,015.32|
|Fixed assets|823,751,690.56|861,163,999.99|
|Construction in progress|66,347,840.16|19,478,121.20|
|Project materials|||
|Disposal of fixed assets|43,553,207.13|43,494,954.71|
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|428,222,188.11|430,435,091.82|
|Research and development costs|13,167,208.57|12,797,092.26|
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|68,898,501.62|69,138,686.26|
|Other non-current assets|||
|Total non-current assets|2,512,920,775.87|2,457,122,250.77|
|Total assets|11,483,407,835.72|10,178,909,576.09|
|Current liabilities:|||
|Short-term borrowings|1,250,645,758.64|261,843,724.73|
|Financial liability measured by fair|||
|value and with variation reckoned into|12,161,010.83|-|
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|2,125,244,809.04|1,734,774,950.13|
|Accounts payable|1,437,945,563.51|1,521,019,717.86|
|Accounts received in advance|93,612,893.62|104,205,506.34|
|Wage payable|16,396,848.43|57,714,577.87|
|Taxes payable|16,497,829.06|25,677,906.64|
|Interest payable|2,820,852.12|1,617,352.01|
|Dividend payable|16,973,446.44|2,545,801.23|
|Other accounts payable|680,946,230.18|634,561,307.52|
|Divided into liability held for sale|||
|Non-current liabilities due within 1|||
||8,384,280.52|257,750,238.18|
|year|||
|Other current liabilities|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Total current liabilities|5,661,629,522.39|4,601,711,082.51|
|Non-current liabilities:|||
|Long-term loans|253,460,000.00|4,751,000.00|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Long-term account payable|||
|Long-term wages payable|25,912,286.96|29,696,403.85|
|Special accounts payable|||
|Projected liabilities|327,309,402.62|331,575,430.79|
|Deferred income|58,817,773.52|64,601,290.18|
|Deferred income tax liabilities|1,226,623.71|1,809,032.00|
|Other non-current liabilities|||
|Total non-current liabilities|666,726,086.81|432,433,156.82|
|Total liabilities|6,328,355,609.20|5,034,144,239.33|
|Owners’ equity:|||
|Share capita|1,044,597,881.00|1,044,597,881.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital securities|||
|Capital public reserve|2,753,017,007.10|2,753,017,007.10|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|390,811,254.65|390,811,254.65|
|Retained profit|966,626,083.77|956,339,194.01|
|Total owner’s equity|5,155,052,226.52|5,144,765,336.76|
|Total liabilities and owner’s equity|11,483,407,835.72|10,178,909,576.09|

 Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
3. Consolidated Profit Statement (the period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|I. Total operating income|4,661,344,340.71|3,130,593,704.26|
|Including: Operating income|4,661,344,340.71|3,130,593,704.26|
|Interest income|||
|Insurance gained|||
|Commission charge and|||
|commission income|||
|II. Total operating cost|4,641,920,759.94|3,076,387,035.13|
|Including: Operating cost|3,852,369,112.25|2,596,993,536.17|
|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|48,770,715.24|36,652,677.61|
|Sales expenses|632,230,730.76|398,059,771.10|
|Administration expenses|129,791,354.97|104,835,454.22|
|Financial expenses|-6,349,963.54|-29,334,284.01|
|Losses of devaluation of asset|-14,891,189.74|-30,820,119.96|
|Add: Changing income of fair|||
||-5,116,597.88|3,415,197.41|
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||16,082,387.37|2,472,603.86|
|with “-”)|||
|Including: Investment income on|||
||5,461,346.63|4,369,829.75|
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
||-|-|
|with “-”)|||
|Other income|2,499,869.07|-|
|III. Operating profit (Loss is listed|||
||32,889,239.33|60,094,470.40|
|with “-”)|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Add: Non-operating income|14,891,086.61|16,758,382.91|
|Including: Disposal gains of|||
||-|3,686,882.38|
|non-current asset|||
|Less: Non-operating expense|3,117,768.37|3,582,893.79|
|Including: Disposal loss of|||
||2,874,528.59|3,496,458.26|
|non-current asset|||
|IV. Total Profit (Loss is listed with|||
||44,662,557.57|73,269,959.52|
|“-”)|||
|Less: Income tax expense|14,916,499.34|17,357,472.98|
|V. Net profit (Net loss is listed with “-”)|29,746,058.23|55,912,486.54|
|Net profit attributable to owner’s of|||
||28,147,276.19|55,295,963.61|
|parent company|||
|Minority shareholders’ gains and|||
||1,598,782.04|616,522.93|
|losses|||
|VI. Net after-tax of other|-3,141,017.15||
|||1,136,930.29|
|comprehensive income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|-2,412,157.86|888,396.33|
|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|-2,412,157.86|888,396.33|
|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 THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|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|-2,412,157.86|888,396.33|
|currency financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|-728,859.29|248,533.96|
|shareholders|||
|VII. Total comprehensive income|26,605,041.08|57,049,416.83|
|Total comprehensive income|||
|attributable to owners of parent|25,735,118.33|56,184,359.94|
|Company|||
|Total comprehensive income|||
||869,922.75|865,056.89|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.0269|0.0724|
|(ii) Diluted earnings per share|0.0269|0.0724|

 Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
4. Profit Statement of Parent Company (the period)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|2,048,257,729.20|1,795,492,670.63|
|Less: Operating cost|1,803,309,297.32|1,635,128,856.94|
|Operating tax and extras|19,826,226.92|16,655,993.91|
|Sales expenses|162,337,651.60|95,478,445.45|
|Administration expenses|39,291,319.80|48,382,777.13|
|Financial expenses|760,172.92|-20,932,496.87|
|Losses of devaluation of asset|-4,641,531.19|-6,902,766.78|
|Add: Changing income of fair|-5,116,597.88|3,415,197.41|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|value(Loss is listed with “-”)|||
|Investment income (Loss is|||
||10,591,073.95|3,455,851.28|
|listed with “-”)|||
|Including: Investment income|||
||435,788.04|4,504,457.55|
|on affiliated company and joint venture|||
|Other income|||
|II. Operating profit (Loss is listed|||
||32,849,067.90|34,552,909.54|
|with “-”)|||
|Add: Non-operating income|6,931,501.13|3,066,843.07|
|Including: Disposal gains of|||
||-|-|
|non-current asset|||
|Less: Non-operating expense|4,823.30|1,289,725.14|
|Including: Disposal loss of|||
||4,823.30|1,289,725.14|
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||39,775,745.73|36,330,027.47|
|“-”)|||
|Less: Income tax expense|5,951,952.15|6,285,843.65|
|IV. Net profit (Net loss is listed with|||
||33,823,793.58|30,044,183.82|
|“-”)|||
|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|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|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|33,823,793.58|30,044,183.82|
|VII. Earnings per share:|||
|(i) Basic earnings per share|0.0324|0.0393|
|(ii) Diluted earnings per share|0.0324|0.0393|

 Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|13,179,138,533.81|9,997,224,966.94|
|Including: Operating income|13,179,138,533.81|9,997,224,966.94|
|Interest income|||
|Insurance gained|||
|Commission charge and|||
|commission income|||
|II. Total operating cost|13,078,726,742.99|9,836,805,813.99|
|Including: Operating cost|10,848,595,161.10|8,029,455,223.27|
|Interest expense|||
|Commission charge and|||
|commission expense|||
|Cash surrender value|||
|Net amount of expense of|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|tax and extras|114,606,735.55|116,110,258.87|
|Sales expenses|1,772,402,762.84|1,473,707,521.70|
|Administration expenses|352,324,446.71|280,799,875.17|
|Financial expenses|-39,804,446.21|-69,033,626.17|
|Losses of devaluation of asset|30,602,083.00|5,766,561.15|
|Add: Changing income of fair|||
||-15,475,683.18|2,136,627.20|
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||39,675,737.03|6,625,694.81|
|with “-”)|||
|Including: Investment income on|||
||2,235,018.46|3,536,619.33|
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
||-|-|
|with “-”)|||
|Other income|3,775,806.69|-|
|III. Operating profit (Loss is listed|||
||128,387,651.36|169,181,474.96|
|with “-”)|||
|Add: Non-operating income|38,382,234.46|38,230,085.35|
|Including: Disposal gains of|||
||261,776.49|4,017,716.14|
|non-current asset|||
|Less: Non-operating expense|14,573,069.00|5,401,767.97|
|Including: Disposal loss of|||
||14,234,403.75|5,041,587.90|
|non-current asset|||
|IV. Total Profit (Loss is listed with|||
||152,196,816.82|202,009,792.34|
|“-”)|||
|Less: Income tax expense|24,356,057.20|36,173,658.96|
|V. Net profit (Net loss is listed with “-”)|127,840,759.62|165,836,133.38|
|Net profit attributable to owner’s of|||
||120,222,315.96|165,288,664.89|
|parent company|||
|Minority shareholders’ gains and|||
||7,618,443.66|547,468.49|
|losses|||
|VI. Net after-tax of other|||
||-6,493,532.56|3,621,779.01|
|comprehensive income|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|-4,948,237.48|2,702,853.40|
|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|-4,948,237.48|2,702,853.40|
|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|-4,948,237.48|2,702,853.40|
|currency financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|-1,545,295.08|918,925.61|
|shareholders|||
|VII. Total comprehensive income|121,347,227.06|169,457,912.39|
|Total comprehensive income|115,274,078.48|167,991,518.29|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|attributable to owners of parent|||
|Company|||
|Total comprehensive income|||
||6,073,148.58|1,466,394.10|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.1151|0.2164|
|(ii) Diluted earnings per share|0.1151|0.2164|

 Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|6,177,866,081.70|5,566,265,834.56|
|Less: Operating cost|5,578,678,753.58|4,795,261,083.95|
|Operating tax and extras|47,548,756.62|55,404,879.61|
|Sales expenses|393,775,870.67|516,556,298.89|
|Administration expenses|148,356,536.03|125,791,065.09|
|Financial expenses|-36,446,166.41|-52,450,533.19|
|Losses of devaluation of asset|215,030.18|2,257,210.13|
|Add: Changing income of fair|||
||-16,043,732.76|2,136,627.20|
|value(Loss is listed with “-”)|||
|Investment income (Loss is|||
||40,321,157.90|86,348,448.62|
|listed with “-”)|||
|Including: Investment income|||
||3,541,251.70|7,149,440.12|
|on affiliated company and joint venture|||
|Other income|||
|II. Operating profit (Loss is listed|||
||70,014,726.17|211,930,905.90|
|with “-”)|||
|Add: Non-operating income|14,350,220.11|17,439,146.83|
|Including: Disposal gains of|||
||-|269,387.27|
|non-current asset|||
|Less: Non-operating expense|1,452,725.15|2,506,291.62|
|Including: Disposal loss of|||
||1,448,384.55|2,440,092.05|
|non-current asset|||
|III. Total Profit (Loss is listed with|82,912,221.13|226,863,761.11|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|“-”)|||
|Less: Income tax expense|9,949,458.52|21,200,973.23|
|IV. Net profit (Net loss is listed with|||
||72,962,762.61|205,662,787.88|
|“-”)|||
|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|||
|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|72,962,762.61|205,662,787.88|
|VII. Earnings per share:|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|(i) Basic earnings per share|0.0698|0.2693|
|(ii) Diluted earnings per share|0.0698|0.2693|

 Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|10,688,634,329.82|9,599,703,438.75|
|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|332,183,490.22|247,773,581.20|
|Other cash received concerning|||
||41,763,321.49|34,952,309.45|
|operating activities|||
|Subtotal of cash inflow arising from|11,062,581,141.53|9,882,429,329.40|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|9,088,798,341.30|6,611,688,071.65|
|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|1,060,957,793.60|920,334,293.94|
|Taxes paid|417,607,656.54|384,467,110.44|
|Other cash paid concerning|||
||626,015,434.18|403,000,203.98|
|operating activities|||
|Subtotal of cash outflow arising from|||
||11,193,379,225.62|8,319,489,680.01|
|operating activities|||
|Net cash flows arising from operating|||
||-130,798,084.09|1,562,939,649.39|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
||2,957,000,000.00|500,000,000.00|
|investment|||
|Cash received from investment|||
||47,477,575.32|6,693,575.48|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|2,531,948.87|25,572,793.14|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||73,811,624.63|63,100,133.03|
|investing activities|||
|Subtotal of cash inflow from investing|||
||3,080,821,148.82|595,366,501.65|
|activities|||
|Cash paid for purchasing fixed,|||
||343,043,647.04|97,689,141.65|
|intangible and other long-term assets|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Cash paid for investment|3,581,652,412.20|115,583,860.00|
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
||10,574,661.31|4,296,600.00|
|investing activities|||
|Subtotal of cash outflow from investing|||
||3,935,270,720.55|217,569,601.65|
|activities|||
|Net cash flows arising from investing|||
||-854,449,571.73|377,796,900.00|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
||23,068,316.00|1,564,983,118.37|
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|2,371,636,546.03|1,512,385,108.63|
|Cash received from issuing bonds|-|-|
|Other cash received concerning|||
||-|3,451.80|
|financing activities|||
|Subtotal of cash inflow from financing|||
||2,394,704,862.03|3,077,371,678.80|
|activities|||
|Cash paid for settling debts|1,096,840,299.04|800,889,419.18|
|Cash paid for dividend and profit|||
||67,101,769.40|57,565,188.54|
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
||151,611.24|156,871.81|
|financing activities|||
|Subtotal of cash outflow from financing|||
||1,164,093,679.68|858,611,479.53|
|activities|||
|Net cash flows arising from financing|||
||1,230,611,182.35|2,218,760,199.27|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-18,706,015.36|20,383,777.92|
|exchange rate|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|V. Net increase of cash and cash|||
||226,657,511.17|4,179,880,526.58|
|equivalents|||
|Add: Balance of cash and cash|||
||3,986,098,419.76|2,121,161,238.01|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||4,212,755,930.93|6,301,041,764.59|
|equivalents at the period -end|||

Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|4,210,014,747.91|4,698,437,869.58|
|services|||
|Write-back of tax received|167,344,442.26|123,186,350.49|
|Other cash received concerning|||
||18,738,823.22|15,201,480.61|
|operating activities|||
|Subtotal of cash inflow arising from|||
||4,396,098,013.39|4,836,825,700.68|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|5,205,491,001.62|3,699,813,726.55|
|service|||
|Cash paid to/for staff and workers|416,120,059.29|370,683,809.63|
|Taxes paid|68,213,970.16|118,631,891.16|
|Other cash paid concerning|||
||174,378,876.86|207,844,269.17|
|operating activities|||
|Subtotal of cash outflow arising from|||
||5,864,203,907.93|4,396,973,696.51|
|operating activities|||
|Net cash flows arising from operating|||
||-1,468,105,894.54|439,852,004.17|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
||2,880,000,000.00|505,798,619.62|
|investment|||
|Cash received from investment|46,802,594.32|81,954,888.88|

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|567,847.40|1,919,834.50|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||58,985,857.24|47,967,134.69|
|investing activities|||
|Subtotal of cash inflow from investing|||
||2,986,356,298.96|637,640,477.69|
|activities|||
|Cash paid for purchasing fixed,|||
||241,876,285.81|53,798,472.75|
|intangible and other long-term assets|||
|Cash paid for investment|2,995,180,391.20|171,250,000.00|
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
||10,574,661.31|67,327,805.65|
|investing activities|||
|Subtotal of cash outflow from investing|||
||3,247,631,338.32|292,376,278.40|
|activities|||
|Net cash flows arising from investing|||
||-261,275,039.36|345,264,199.29|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
||-|1,541,999,998.84|
|investment|||
|Cash received from loans|2,022,551,446.03|1,482,458,180.27|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||305,264,361.17|499,060,968.88|
|financing activities|||
|Subtotal of cash inflow from financing|||
||2,327,815,807.20|3,523,519,147.99|
|activities|||
|Cash paid for settling debts|1,023,790,749.04|772,716,315.18|
|Cash paid for dividend and profit|||
||65,697,535.58|56,064,494.85|
|distributing or interest paying|||
|Other cash paid concerning|||
||27,237,860.58|67,598,005.48|
|financing activities|||
|Subtotal of cash outflow from financing|||
||1,116,726,145.20|896,378,815.51|
|activities|||

HEFEI MEILING CO., LTD. THE THIRD QUARTERLY REPORT FOR 2017(Full Text)
||||
|-|-|-|
|Net cash flows arising from financing|||
||1,211,089,662.00|2,627,140,332.48|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-11,923,958.43|19,002,920.97|
|exchange rate|||
|V. Net increase of cash and cash|||
||-530,215,230.33|3,431,259,456.91|
|equivalents|||
|Add: Balance of cash and cash|||
||3,067,671,385.08|1,654,499,494.28|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||2,537,456,154.75|5,085,758,951.19|
|equivalents at the period -end|||

Legal Representative: Li Wei
Person in charge of accounting works: Zhang Xiaolong
Person in charge of accounting institute: Luo Bo
II. Audit report
Whether the
3rd
quarterly report has been audited or not
□Yes√ No
The
3rd
quarterly report of the Company has not been audited.
Hefei Meiling Co., Ltd. Chairman: Li Wei
18 October 2017