[年报]虹美菱B(200521):2021年年度报告（英文版）
原标题:虹美菱B:2021年年度报告（英文版） 长虹美菱股份有限公司 CHANGHONG MEILING CO., LTD. 二〇二一年年度报告 Annual Report 2021 Section I. Important Notice, Contents and Interpretation Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Changhong Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. Mr. Wu Dinggang, Chairman of the Company, Mr. Pang Haitao, person in charge of accounting work and Mr. Yang Jun, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2021 Annual Report is authentic, accurate and complete. The Company did not have directors, supervisors and senior executives of the Company could not guarantee the reality, accuracy and completion of the whole contents or have objections. All the directors attended the board meeting to deliberating the Report by a combination of on-site and communication. Modified audit opinions notes □ Applicable √ Not applicable Shine Wing Certified Public Accountants (LLP) issued standard unqualified Auditors’ Report for the Company’s Financial Report of 2021. Major defects in internal control □ Applicable √Not applicable The Company had no major defects in internal control in the reporting period. Risk warning of concerning the forward-looking statements with future planning involved in annual report √ Applicable □Not applicable Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors, investors and the person concerned should maintain adequate risk awareness, furthermore, differences between the plans, forecast and commitments should be comprehended. Investors are advised to exercise caution of investment risks. Investors are advised to read the full text of annual report, and pay particular attention to the following risk factors: More details about the possible risks and countermeasures in the operation of the Company are described in the report “XI. Prospects for the future development of the company” of “Section III. Management Analysis and Discussion”, investors are advised to read the relevant content. Securities Times, China Securities Journal, Hong Kong Commercial Daily and Juchao Website (Juchao Website (www.cninfo.com.cn)) are the media for information disclosure for year of 2022 that appointed by the Company. All public information under the name of the Company disclosed on the above said media and website shall prevail, and investors are advised to exercise caution. Does the Company need to comply with disclosure requirements of the special industry: no Profit distribution pre-plan or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period √ Applicable □ Not applicable Whether to increase the share capital with public reserve □Yes √No The profit distribution plan for year of 2021, that deliberated and approved by 16th session of the 10th BOD was: take the total shares (on the registration date when implement the equity distribution plan for year of 2021) as the base, distributed 0.5 yuan (tax included) bonus in cash for every 10-share hold by all shareholders, no share bonus issued and no capitalizing of common reserves carried out. The implementation of repurchase of domestically listed foreign shares (B share) was completed on February 18, 2022. And the cancellation of the repurchased shares are completed on March 2, 2022. Total share capital of the Company comes to 1,029,923,715 shares after cancellation, and reduction of registration capital and amendment of Article of Association still needs to be submitted for deliberation on Shareholders’ General Meeting. Directors, supervisors and senior executives of the Company respectively signed a Written Confirmation Opinions for 2021 Annual Report. Supervisory Committee of the Company formed Written Examination Opinions for 2021 Annual Report. Documents Available for Reference I.Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and person in charge of accounting organ; II. Original audit report carrying the seal of the CPA and signature & seal of the accountants; III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated by CSRC in the report period; The aforesaid documents are all available at headquarter of the Company. The Company would provide them timely when CSRC and Shenzhen Stock Exchange require or the shareholders need consultation according to the regulations and Articles of Association. Contents Section I Important Notice, Contents and Interpretation 1 Section II Company Profile and Main Financial Indexes 6 Section III Management Discussion and Analysis 13 Section IV Corporate Governance 58 Section V Enviornmental and Social Responsibility 93 Section VI Important Events 100 Section VII Changes in shares and particular about shareholders 155 Section VIII Preferred Stock 165 Section IX Bonds 166 Section X Financial Report 167 Interpretation Items Refers to Contents Company, The Company, Changhong Meiling or Meiling Electric Refers to CHANGHONG MEILING CO.,LTD. Sichuan Changhong or controlling shareholder Refers to Sichuan Changhong Electric Co., Ltd. Changhong Group Refers to Sichuan Changhong Electronics Holding Group Co., Ltd. Hong Kong Changhong Refers to CHANGHONG (HK) TRADING LIMITED Meiling Group Refers to Hefei Meiling Group Holdings Limited Industry Investment Group Refers to Hefei Industry Investment Holding (Group) Co., Ltd. Changhong Air-conditioner Refers to Sichuan Changhong Air-conditioner Co., Ltd. Zhongke Meiling Refers to Zhongke Meiling Cryogenic Technology Co., Ltd. Mianyang Meiling Refers to Mianyang Meiling Refrigeration Co., Ltd. Jiangxi Meiling Refers to Jiangxi Meiling Electric Appliance Co., Ltd. Ridian Technology Refers to Changhong Meiling Ridian Technology Co., Ltd. Wulian Technology Refers to Hefei Meiling Wulian Technology Co., Ltd Zhongshan Changhong Refers to Zhongshan Changhong Electric Co., Ltd. Meiling Life Appliances Refers to Hefei Changhong Meiling Life Appliances Co., Ltd. Changhong Huayi Refers to Changhong Huayi Compressor Co., Ltd. Zhiyijia Company Refers to Sichuan Zhiyijia Network Technology Co., Ltd. Shine Wing Refers to Shine Wing Certified Public Accountants (LLP) CSRC Refers to China Securities Regulatory Commission Anhui Securities Bureau Refers to China Securities Regulatory Commission, Anhui Province Securities Regulatory Bureau SSE Refers to Shenzhen Stock Exchange Section II Company Profile and Main Financial Indexes I. Company information Short form of the stock Changhong Meiling, Hongmeiling B Stock code 000521, 200521 Short form of the Stock after changed (if applicable) N/A Stock exchange for listing Shenzhen Stock Exchange Name of the Company (in Chinese) 长虹美菱股份有限公司 Short form of the Company (in Chinese) 长虹美菱 Foreign name of the Company (if applicable) CHANGHONG MEILING CO.,LTD. Abbr. of English name of the Company (if applicable) CHML Legal representative Wu Dinggang Registrations add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei Code for registrations add 230601 Historical changes on the registration address The Company was registered in the Hefei Administration for Industry and Commerce on November 25, 1992 with the address registered as Linquan Road, Hefei City (Meiling Economic Development Zone); on March 13, 1997, registered address changed to No.48 Wuhu Road, Hefei instead of Linquan Road, Hefei City (Meiling Economic Development Zone); on May 19, 2008, the address changed to No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei from No.48 Wuhu Road, Hefei. Registered address of the Company has not changed during the reporting period. Offices add. No. 2163, Lianhua Road, Economic and Technology Development Zone, Hefei Codes for office add. 230601 Website http://www.meiling.com [email protected] II. Person/Way to contact Secretary of the Board Rep. of security affairs Name Li Xia Pan Haiyun Contact add. No. 2163, Lianhua Road, Economic and Technology No. 2163, Lianhua Road, Economic and Development Zone, Hefei Technology Development Zone, Hefei Tel. 0551-62219021 0551-62219021 Fax. 0551-62219021 0551-62219021 [email protected] [email protected] III. Information disclosure and preparation place Website of the Stock Exchange where the annual report of the Company disclosed Securities Times, China Securities Journal, Hong Kong Commercial Daily Media and Website where the annual report of the Company disclosed Juchao website: http://www.cninfo.com.cn Preparation place for annual report Room of secretary of the Board, 2/F , administrative center, Office building of the Company IV. Registration changes of the Company Organization code Uniform social credit code: 9134000014918555XK Changes of main business since listing (if applicable) No changes Previous changes for controlling shareholders (if applicable) 1. In October 1993, after initial listing, controlling shareholder of the Company-- Hefei Meiling Industrial Corp. (renamed as Hefei Meiling Group Co., dated 23 May 1994), executing controlling rights of the Company and management right of the state-owned assets on behalf of Hefei State-owned Assets Management Office, named at that time; 2. From November 1997 to May 2003, controlling shareholder of the Company was Hefei Meiling Group Holding Co., Ltd. (established base on former Meiling Group Co.,, “Meiling Group” for short), an enterprise solely owned by the State; mainly operating the state-owned capital in authorized from State-owned Assets Management Commission of Hefei City, ensuring the maintenance and appreciation of state-owned assets; 3. On 29 May 2003, Meiling Group entered into “Equity Transfer Agreement” with Shunde GreenKel Enterprise Development Co., ltd. (“GreenKel”), the 82,852,683 state-owned shares held by the Company was transfer to GreenKel. After transferring, GreenKel comes to the first largest shareholder of the Company. 4. According to the spirit of “Bulletin of Treatment Opinions on GreenKel Company purchasing State-owned Assets Shares of Listed Company” (GZFCQ[2006] No.: 44) jointly issued from SASAC and Ministry of Finance in April 2006, Meiling Group took back the Meiling Electric 82,852,683 shares from GreenKel by procedures, which has been transferred. In September 2006, relevant equity transfer agreement signed between the Meiling Group and GreenKel is invalid, which was confirmed by the “Award” ((2006) HZZ No.: 104) issued from arbitration commission of Hefei; the state-owned legal person’s 82,852,683 shares, held by GreenKel, should return to Meiling Electric, and relevant equity consideration will pay to GreenKel by Meiling Group . On 29 December 2006, the 82,852,683 shares of Meiling Electric were transfer to Meiling Group by GreenKel, and Meiling Group becomes the controlling shareholder of Meiling Electric again. 5. On 18 May 2006 and 11 January 2007, Meiling Group entered into “Equity Transfer Agreement of Meiling Electric” and “Supplementary Agreement of Equity Transfer of Meiling Electric” respectively with Sichuan Changhong and Changhong Group, among the 123,396,375 shares held by Meiling Group, 82,852,683 shares were transferred respectively to Sichuan Changhong and Changhong Group according to the transfer way regulated in agreement; of this transferring, 45,000,000 shares (10.88% of total share capital of the Company) were transferred to Sichuan Changhong, the first largest shareholder of the Company while 37,852,683 shares (9.15% of total share capital of the Company) were transferred to Changhong Group, the third largest shareholder of the Company. 6. On 29 October 2008, Changhong Group and Sichuan Changhong entered into “Equity Transfer Agreement of Hefei Meiling Co., Ltd.”, the 32,078,846 restricted circulations A shares of Meiling Electric held by Changhong Group were transferred by agreement to Sichuan Changhong. On 23 December 2008, the aforesaid equity transfer was approved by “Reply on Matters of Equity held by State-owned Shareholders of Hefei Meiling Co., Ltd.” (GZCQ(2008) No.: 1413) from SASAC; on 21 January 2009, the aforesaid transfer was registered for ownership transfer in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.The first majority shareholder of the Company comes to Sichuan Changhong. 7. From 12 November 2018 to 25 February 2019, Sichuan Changhong and its concerted action Hong Kong Changhong totally buys 16,231,024 shares of the Company through the secondary market by bidding (including A-stock of 13,751,756 shares and B-stock of 2,479,268 shares), a 1.55% in total share capital of the Company. After stake enlarge, Sichuan Changhong and its concerted action Hong Kong Changhong holds 281,832,434 shares of the Company in total, a 26.98% of the total share capital of the Company; of which, Sichuan Changhong directly holds 248,457,724 A-share of the Company, a 23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of the Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company. 8. Ended as 31 December 2021, Sichuan Changhong and its concerted action Hong Kong Changhong totally holds 281,832,434 shares of the Company, a 26.98% in total share capital of the Company; Sichuan Changhong directly holds 248,457,724 A-share of the Company, a 23.79% in total share capital of the Company while Hong Kong Changhong holds circulation B-share of the Company amounting as 33,374,710 shares, a 3.19% in total share capital of the Company. V. Other relevant information (1) CPA engaged by the Company Name of CPA Shine Wing Certified Public Accountants (LLP) Offices add. for CPA 8/F, Block A, Fu Hua Mansion No.8 Chao Yang Men Bei da jie, Dong Cheng District, Beijing, P.R.C Signing Accountants Li Xifu, Wang Xiaodong (2) Sponsor engaged by the Company for performing continuous supervision duties in reporting period □ Applicable √ Not applicable (3) Financial consultant engaged by the Company for performing continuous supervision duties in reporting period □ Applicable √ Not applicable VI. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data □ Yes √ No 2021 2020 Changes in the current year over the previous year (+,-) 2019 Operating income (RMB) 18,032,957,501.44 15,388,050,229.67 17.19% 16,553,252,894.93 Net profit attributable to shareholders of the listed company (RMB) 51,898,388.84 -85,565,716.91 160.65% 56,441,479.14 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) -140,217,633.26 -277,816,055.91 49.53% -50,454,661.39 Net cash flow arising from operating activities (RMB) 160,923,258.10 1,403,516,222.46 -88.53% 1,285,003,985.04 Basic earnings per share (RMB/Share) 0.0497 -0.0819 160.68% 0.0540 Diluted earnings per share (RMB/Share) 0.0497 -0.0819 160.68% 0.0540 Weighted average ROE 1.07% -1.73% 2.80 percentage points up 1.13% Year-end of 2021 Year-end of 2020 Changes at end of the current year compared with the end of previous year (+,-) Year-end of 2019 Total assets (RMB) 15,190,469,756.33 16,103,355,454.46 -5.67% 14,202,233,615.47 Net assets attributable to shareholder of listed company (RMB) 4,837,334,400.21 4,854,173,682.43 -0.35% 5,004,947,673.36 The cause of the accounting policy change and accounting error correction □ Applicable √ Not applicable The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative, and the audit report of last year shows that the ability to continue operating is uncertain □Yes √ No The lower one of net profit before and after deducting the non-recurring gains/losses is negative √Yes □No Item 2021 2020 Note Operating income (RMB) 18,032,957,501.44 15,388,050,229.67 Amount deducted from operating income (RMB) 144,383,101.14 135,186,516.29 It mainly refers to the income from house rental, waste sales, labor services, warehousing services and maintenance services in the current period Operating income after deduction (RMB) 17,888,574,400.30 15,252,863,713.38 VII. Accounting data difference under domestic and foreign accounting standards (1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) □ Applicable √ Not applicable The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period. (2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) √ Applicable □ Not applicable In RMB Net profit attributable to shareholders of listed company Net assets attributable to shareholders of listed company Current period Previous period Ending amount Opening amount Chinese GAAP 51,898,388.84 -85,565,716.91 4,837,334,400.21 4,854,173,682.43 Items and amount adjusted by foreign accounting rules Foreign accounting rules 51,898,388.84 -85,565,716.91 4,837,334,400.21 4,854,173,682.43 The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period. (3) Reasons for the differences of accounting data under accounting rules in and out of China √ Applicable □ Not applicable The “Notice of Relevant Issues of Audit for Company with Domestically Foreign Shares Offering” was issued from CSRC dated 12 September 2007, since the day issuing, cancel the previous “dual audit” requirement for companies who offering domestically listed foreign shares (B-share enterprise) while engaging securities practice qualification CPA for auditing. The Company did not compile financial report under foreign accounting rules since 2007, the financial report of the Company is complying on the “Accounting Standard for Business Enterprise” in China, and therefore, there are no differences of accounting data under accounting rules in and out of China at period-end. VIII. Quarterly main financial index In RMB Q 1 Q 2 Q 3 Q 4 Operating income 4,130,121,476.44 5,472,637,868.85 4,312,251,172.73 4,117,946,983.42 Net profit attributable to shareholders of the listed company 5,297,826.42 31,859,685.12 25,102,342.76 -10,361,465.46 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses -26,469,858.74 -37,082,556.27 -1,016,633.94 -75,648,584.31 Net cash flow arising from operating activities -968,522,457.80 380,026,340.98 403,766,756.43 345,652,618.49 Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in the company’s quarterly report and semi-annual report □Yes √ No IX. Items and amounts of non-recurring profit (gains)/losses √ Applicable □ Not applicable In RMB Item 2021 2020 2019 Note Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) -133,214.72 -2,111,295.55 -9,537,945.52 Found more in “Income from assets disposal”, “non-operation income & expenditure” Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) 103,024,250.74 99,043,859.77 103,813,820.02 Found more in “Other income”, “Non-operation income” Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company 105,811,461.63 123,242,542.42 27,685,917.00 ”Found more in “Income of fair value changes”, “Investment income” Switch back of the impairment for receivables that has impairment test independently 3,245,314.13 5,061,635.85 1,936,952.67 Found more in “Account receivable/other account receivable” Other non-operating income and expenses other than the above 4,867,985.38 2,434,283.11 1,070,165.28 Found more in “Non-operation income & expenditure” Less: impact on income tax 21,813,023.99 34,083,593.36 15,170,286.77 Impact on minority shareholders’ equity (post-tax) 2,886,751.07 1,337,093.24 2,902,482.15 Total 192,116,022.10 192,250,339.00 106,896,140.53 Details of other gains/losses items that meets the definition of non-recurring gains/losses: □ Applicable √ Not applicable There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company. Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss □ Applicable √ Not applicable There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss Section III Management Discussion and Analysis I. Industry of the Company during the reporting period 1. Refrigerator industry The refrigerator industry is one of the mature home appliance industries, and the active brands in the market are relatively stable. From the overall data, 2021 was a satisfactory year for China's refrigerator market. In the face of unfavorable factors such as repeated global pandemics and insufficient transportation capacity, in 2021, China's refrigerator manufacturing industry has overcome multiple difficulties such as sharp fluctuations in raw material prices, increased supply chain pressure, weak domestic demand, and declining product profit margins, and increased the added value of products by optimizing product structure and cost and deeply digging the market, so that the industry development had a steady rise. According to industry online data, China's refrigerator production in 2021 was 86.096 million units, a year-on-year increase of 2.0%; total sales volume was 86.433 million units, a year-on-year increase of 2.3%. It is worth noting that export is still the main driving force for the growth of the refrigerator industry. In 2021, the export volume of China's refrigerator industry was 43.786 million units, a year-on-year increase of 4.8%, effectively driving the growth of the industry's overall sales. 2.Air-conditioning industry Air-conditioning products are the household appliances that are the most affected by macro economy and weather factors. In the past two years, due to the continuous downturn in the real estate market and the impact of the pandemic, the scale of the air-conditioning industry has continued to decline. In 2021, affected by factors such as the frequent outbreaks of pandemic at home, rising raw material prices, dual control of energy efficiency, and too much rainfall in the peak season of air-conditioning sales, the air-conditioning industry experienced a phenomenon of "low peak season", resulting in a "cold year" to the air-conditioning market in 2021. According to industry online statistics, in 2021, the total sales volume of China's household air conditioning industry was 150 million units, a year-on-year increase of 7.9%, and a year-on-year increase of 1.3% compared with 2019; of which the domestic sales volume was 80 million units, a year-on-year increase of 5.5%, but a year-on-year decrease of 8.1% compared with 2019; exported 70 million units, a year-on-year increase of 11.0%, and a year-on-year increase of 16.1% compared with 2019. After years of rapid growth in the air-conditioning industry, the number of household ownership was high, and the industry demand has entered a new cycle of stock replacement. However, consumers' demand for replacement of air-conditioning products has been released slowly, and the overall sales volume will tend to be relatively stable in the next few years. 3.Washing machine industry In 2021, the washing machine market has generally recovered to the level before the pandemic. According to the omni-channel aggregate data of All View Cloud (AVC), in 2021, omni-channel retail sales was 76.6 billion yuan, a year-on-year increase of 7.3%, and retail sales volume was 37.18 million units, a year-on-year growth of 0.8%. However, due to the pandemic, changes in consumer demand and consumption patterns, the major brands have upgraded their products in terms of structure, attributes, form, function, price and demand. Integration of wash and dry, large capacity, silent, sterilizing wash, and intelligent modules have become the main theme of upgrading and innovation in subdivided tracks. II.Main businesses of the company engaged in during the Period The Company is one of China's major electric appliance manufacturers, possesses four major domestic manufacturing bases in Hefei, Mianyang, Jingdezhen and Zhongshan, and two overseas manufacturing bases in Indonesia and Pakistan. Currently, we have completed the industry layout of white electricity basically, covering the full product line including refrigerator, washing machine, air conditioner, kitchen and bath, small household appliances and others, at the same time, the Company enters the new industrial fields as bio-medical and with certain achievements made. Over the past 30 years, the Company has always been adhering to the "independent innovation, created in China", and always focus on refrigeration industry without stop, elaborately building the core competitiveness of enterprises by technological innovation and product innovation. Relying on the cutting-edge R&D team and advanced technology, Meiling continue to achieve breakthrough results in the variable frequency, intelligence, refreshment, thin-wall, odourless, energy-saving, forced air cooling, deep cooling and other fields. The company has set up the first RoHS public testing center in Anhui Province, the national enterprise technology center, the national industrial design center, and the 5G industrial internet innovation application laboratory. The Company has successively awarded several national honorary titles as the “Smart Refrigerator Intelligent Manufacturing Pilot Demonstration Project”, the “National Green Factory”, the “National Industrial Design Center”, “2020 Top 10 Light Industry Technology Enterprises in China” and “National Leading Enterprises of Qualify in Home Appliance Industry” etc. At the same time, many products of Meiling have repeatedly won a number of domestic and international innovation awards, continuously demonstrating the capabilities and strength of Meiling's intelligent manufacturing and Meiling brand intelligent innovation technology. At the 2021 AWE Award Ceremony, "Very Clean" BCD-503WUP9BQ, the company's new high-end refrigerator won the AWE Excellent Product Award for its excellent product design and innovative intelligent technology. In the China Refrigerator Industry Symposium, 2021, Meiling refrigerator stood out, with its leading fresh-keeping technology and excellent quality, "Very clean" BCD-503WUP9BQ won the "Fresh Clean Star", and "Star" refrigerator BCD-532WPUCY won the "Outstanding Channel Performance Product Award". Furthermore, with its deep cultivation and innovation in fresh-keeping technology, the company won the only "Annual Pioneer Freshness-Preservation Brand" award of China refrigerator industry. In recent years, driven by the industry transformation and upgrades and consumption upgrades, the Company always adheres to the strategy of smart and variable frequency products, promoted the Company’s products to transform and upgrade to become intelligent and high-end and comprehensively enhanced the competitiveness of products in the industry by grasping the opportunities of refreshment, thin-wall, odourless, air cooling and energy efficiency upgrades and effectively resolving the pain points of customers. Under the guidance of the “intelligent” strategy, in recent year, the Company has released and listed a number of CHiQ series of smart refrigerators and air-conditioning products, “M-Fresh” refrigerators, “M-Fresh” comprehensive thin series products and “very clean” series of refrigerators, Meiling always leads the trend of the industry by solving the pain points of users effectively. In April 2021, the company joined hands with Jingdong and launched the "Star" series of mother and infant refrigerators equipped with LINF spectral plasma technology, which meets the rigid needs of infants & moms in different stages of getting ready for pregnancy, pregnancy and parenting. In May 2021, the company released a new generation of "very thin" direct-drive front-loading washing machines, using innovative technology, i.e. magnetic levitation ultra-thin DD motor, to realize the product concept of "direct drive is cleaner and quieter", and the main performance indicators such as noise and energy efficiency have reached the advanced level at home and abroad. In July 2021, the second-generation series of "M Fresh" products using "zero shock" and "soft freeze" preservation technologies were launched globally, breaking through the restricted area of refrigeration and freezing technologies of traditional refrigerators, and opening a brand new competition track to soft freeze preservation technology in the refrigerator industry. In November 2021, the company released the latest gas-heating water heater. By combining the invention patent technology of "a segmented burner and wall-hung boiler", it has the function of "bathing scene customization" by person and scene, which can provide different bathing modes to meet the diverse hot water needs of users. In the same month, the third-generation dual-engine variable-frequency M-Twindrive series ultra-low temperature freezer with unique advantages such as "dual independent systems, extreme uniformity, frequency conversion and energy saving" were released to the public, realizing the "intelligent storage" and "intelligent acquisition" of samples, providing guarantee for the storage security of samples again, and providing users with new options. In January 2022, the shared air conditioner for the living room and dining room using the far-to-near soft & comfortable wind technology was released for the first time, bringing users a comfortable home system that can be used for both living room and dining room. Facing the future, the Company will implement the management policy of “one goal and three main lines” and further improve the home internet layout, accelerate the intelligentization of home appliances, form a dual-growth engine of “hardware + services”, drive the transformation and upgrading of the Company’s profitability model, investigate the new value-added service models for home appliance enterprises, meet new competition pattern in the industry, and achieve its own sustainable and stable development under the guidance of the core values of “professionalism and shared development”. Meanwhile, based on the “Smart Home Eco-system Project” and the existing products, the company will enhance the R&D, manufacturing, sales and cooperative capabilities of integrated white goods so as to provide users with a complete set of smart white goods system solutions. During the reporting period, main income of the Company coming from refrigerator (freezer), air conditioner, washing machine, small home appliances, kitchen & toilet products and biomedical etc., total amounting to 17.332 billion yuan, a 96.11% of the operating income. III. Core Competitiveness Analysis (1) Brand capacity The Company is one of the famous home appliances manufacturers in China, owns several product lines such as refrigerator, freezing box, air conditioner, washing machine, small household appliances and biomedical etc. “Meiling” brand is listed as one of the most valuable brands in China. In recent years, the Company has create the competitiveness of the brand by continuously reshaping its brand image, innovating core technology and developing high-end intelligent products. In terms of reshaping brand image, in order to enhance the brand image and further expand the market influence, the Company repositioning the brand. In October 2015, the Company completely update the LOGO, and launching the new brand proposition of “Meiling, let the good comes”. Along with the release of new LOGO, Meiling will also implement a brand strategy of "Good Trilogy", including the direct sensory experience of “experience the good", the spirit soul enjoyment of “enjoy the good”, and the lifestyle faith of “believe in the good”. In terms of continuous innovation of core technologies, on the one hand, the company continuously promoted the innovation of fresh-keeping, intelligent and frequency conversion technologies to maintain the leading position in the industry in order to meet the needs of industry and market development. On the other hand, with the help of consumption upgrades, in order to meet the personalized differentiation and diversified needs of consumers.In terms of refrigerator products, the frozen preservation technology of “zero impact” and “micro-freezing”, the independent research and development of core technologies such as water molecule activation preservation （未完）  |