Changhong Meiling Co.Ltd(000521) : Announcement on the progress of subsidiaries using their own idle funds to invest in financial products

Securities code: 000521, 200521 securities abbreviation: Changhong Meiling Co.Ltd(000521) , hongmeiling B Announcement No.: 2022-003 Changhong Meiling Co.Ltd(000521)

Announcement on the progress of subsidiaries using their own idle funds to invest in financial products

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

According to Changhong Meiling Co.Ltd(000521) (hereinafter referred to as “the company” or “the company”) the proposal on the company’s use of its own idle funds to invest in financial products adopted by the resolutions of the 13th meeting of the 10th board of directors, the 11th meeting of the 10th board of supervisors and the 4th extraordinary general meeting of shareholders in 2021 held on December 6 and December 23, 2021 respectively, in order to improve the efficiency of the company’s use of funds, Increase the company’s cash asset income, maximize the interests of shareholders, and agree that the company and its subsidiaries use their own idle funds of no more than 1.3 billion yuan (the amount can be used on a rolling basis) to invest in products with a term of one year, which has high safety, good liquidity and low risk The authorization period of prudent bank financial products shall be valid within one year from the date of deliberation and approval by the general meeting of shareholders of the company. The independent directors of the company have expressed their agreed independent opinions in this matter.

Recently, the company’s subsidiaries Zhongke Meiling Low Temperature Technology Co., Ltd. (hereinafter referred to as “Zhongke Meiling”) and Hefei Changhong Meiling Co.Ltd(000521) household appliances Co., Ltd. (hereinafter referred to as “Meiling household appliances”) purchased the financial products of China Everbright Bank Company Limited Co.Ltd(601818) Hefei Branch, Industrial Bank Co.Ltd(601166) Hefei Branch and Bank Of Hangzhou Co.Ltd(600926) Luyang branch with their own idle funds of 110 million yuan. The relevant information is hereby announced as follows:

1、 Main information of this purchase of financial products

(I) subscribe for China Everbright Bank Company Limited Co.Ltd(601818) Hefei Branch’s structured deposit financial products

On January 11, 2022, Zhongke Meiling, a subsidiary of the company, signed the agreement on corporate structured deposits of China China Everbright Bank Company Limited Co.Ltd(601818) Hefei Branch with China Everbright Bank Company Limited Co.Ltd(601818) Hefei Branch. Zhongke Meiling subscribed China Everbright Bank Company Limited Co.Ltd(601818) Hefei Branch’s Bank financial products of “customized phase I product 261 of corporate structured deposits at linked exchange rate in 2022” with its own idle funds of 70 million yuan. The details are as follows:

1. Product Name: customized phase I product of corporate structured deposits linked to exchange rate in 2022 261

2. Product type: Principal Guaranteed floating income type

3. Product rating: low risk

4. Product life: 90 days

6. Maturity date: April 11, 2022

7. Product linked target: bfix EURUSD spot exchange rate announced by Bloomberg at 11:00 Tokyo time. 8. Expected rate of return: if the exchange rate on the observation day is less than or equal to n-0.0710, the product rate of return shall be 1.5%; If the exchange rate on the observation day is greater than n-0.0710 and less than N + 0.0450, the yield shall be 3.45%; If the exchange rate on the observation day is greater than or equal to N + 0.0450, the yield shall be 3.55%. N is the target exchange rate linked on T + 1 working days after the value date.

Product observation date: April 6, 2022.

9. Total investment: 70 million yuan

10. Source of funds: self owned idle funds of Zhongke Meiling

11. Investment scope: This product is a RMB structured deposit product embedded with financial derivatives. The bank invests the raised structured deposit funds in bank time deposits. At the same time, it invests in financial derivative transactions (including but not limited to derivative transactions such as options and swaps) in China or international financial markets within the upper limit of the income of the time deposit, The sum of investment profit and loss of financial derivative transactions and bank deposit interest constitutes the income of structured deposit products.

12. Payment of due principal and income: China Everbright Bank Company Limited Co.Ltd(601818) the customer’s financial investment principal and relevant investment income will be transferred to the customer’s account on the due date.

13. Description of association relationship: the company has no association relationship with China Everbright Bank Company Limited Co.Ltd(601818) .

Zhongke Meiling purchased China Everbright Bank Company Limited Co.Ltd(601818) breakeven floating income financial products with its own idle funds of 70 million yuan, accounting for 1.442% of the company’s net assets attributable to shareholders of Listed Companies in the latest audit.

(II) subscribe for Industrial Bank Co.Ltd(601166) Hefei Branch’s structured deposit financial products

On January 11, 2022, Zhongke Meiling, a subsidiary of the company, signed the Industrial Bank Co.Ltd(601166) enterprise financial RMB structured deposit agreement with Industrial Bank Co.Ltd(601166) Hefei Branch. Zhongke Meiling subscribed Industrial Bank Co.Ltd(601166) enterprise financial RMB structured deposit product “of Industrial Bank Co.Ltd(601166) Hefei Branch with its own idle capital of 30 million yuan. The details are as follows:

1. Product Name: Industrial Bank Co.Ltd(601166) enterprise financial RMB structured deposit product

2. Product type: Principal Guaranteed floating income type

3. Product rating: low risk

4. Product life: 90 days

5. Value date: January 12, 2022

6. Maturity date: April 12, 2022

7. Product linked target: Shanghai Gold morning benchmark price of Shanghai gold exchange.

8. Expected rate of return: product income = principal amount × (fixed rate of return + floating rate of return) × Product duration days / 365.

① Fixed income = principal amount × Fixed rate of return × Product duration days / 365, in which the fixed rate of return = 1.5% / year.

② Floating income = principal amount × Floating rate of return × Product duration days / 365. If the price on the observation day is less than or equal to (reference price) × 99.5%), then the floating rate of return = 1.92% / year; If the price on the observation day is greater than (reference price) × 99.5%) and less than or equal to (reference price * 145%), then the floating rate of return = 1.71% / year; If the price on the observation day is greater than (reference price) × 145%), then the floating rate of return is zero.

Observation date of linked object: April 7, 2022 (in case of non observation object working day, it shall be adjusted to the previous observation object working day).

9. Total investment: 30 million yuan

10. Source of funds: self owned idle funds of Zhongke Meiling

11. Investment scope: This product is a structured deposit product, and its derivative products are linked to the morning benchmark price of Shanghai Gold observation day of Shanghai gold exchange.

12. Payment of due principal and income: Industrial Bank Co.Ltd(601166) will transfer the customer’s financial investment principal and relevant investment income to the customer’s account on the product maturity date.

13. Description of related relationship: the company has no related relationship with Industrial Bank Co.Ltd(601166) .

Zhongke Meiling purchased Industrial Bank Co.Ltd(601166) breakeven floating income financial products with its own idle funds of 30 million yuan, accounting for 0.618% of the company’s net assets attributable to shareholders of Listed Companies in the latest audit.

(III) subscribe for Bank Of Hangzhou Co.Ltd(600926) Luyang sub branch’s structured deposit financial products

On January 12, 2022, Meiling household appliances, a subsidiary of the company, signed the agreement on Bank Of Hangzhou Co.Ltd(600926) “Tianlibao” structured deposit (linked to exchange rate b) with Bank Of Hangzhou Co.Ltd(600926) Luyang sub branch. Meiling household appliances subscribed Bank Of Hangzhou Co.Ltd(600926) “Tianlibao” structured deposit product (tlbb20220156) “of Bank Of Hangzhou Co.Ltd(600926) Hefei Luyang sub branch with its own idle capital of 10 million yuan. The details are as follows:

1. Product Name: Bank Of Hangzhou Co.Ltd(600926) “Tianlibao” structured deposit product (tlbb20220156)

2. Product type: Principal Guaranteed floating income type

3. Product rating: low risk

4. Product life: 90 days

5. Value date: January 14, 2022

6. Maturity date: April 14, 2022

7. Product linked target: EURUSD spot exchange rate.

8. Expected rate of return:

① Lower than the lower limit of the agreed exchange rate range: 1.5%. At 14:00 Beijing time on the observation day, the EURUSD spot exchange rate published on Bloomberg page “bfix” is lower than the exchange rate on the value date × 94.0%;

② Within the agreed exchange rate range: 3.3%, the EURUSD spot exchange rate published on Bloomberg page “bfix” at 14:00 Beijing time on the observation day is within the agreed exchange rate range;

③ Higher than the upper limit of the agreed exchange rate range: 3.5%. At 14:00 Beijing time on the observation day, the EURUSD spot exchange rate published on Bloomberg page “bfix” is greater than the exchange rate on the value date × 106.0%。

Observation date of the linked object: January 27, 2022 (in case of holidays, it will be postponed to the next trading day). 9. Total investment: 10 million yuan

10. Source of funds: self owned idle funds of Meiling household appliances

11. Investment scope: This product is a structured deposit product, and its derivative products are linked to the spot exchange rate published on Bloomberg page “bfix” at 14:00 Beijing time on the observation day.

12. Payment of due principal and income:

① After the expiration of this product, the company must take the initiative to recover the principal and low-grade income of structured deposits from Bank Of Hangzhou Co.Ltd(600926) ; ② If the yield of the product is confirmed to be higher than the low-grade yield according to the agreement, the part exceeding the low-grade yield shall be actively remitted by Bank Of Hangzhou Co.Ltd(600926) to the customer’s designated account on the product maturity date.

13. Description of related relationship: the company has no related relationship with Bank Of Hangzhou Co.Ltd(600926) .

Meiling life appliance purchased Bank Of Hangzhou Co.Ltd(600926) breakeven floating income financial products with its own idle fund of 10 million yuan, accounting for 0.206% of the company’s net assets attributable to shareholders of Listed Companies in the latest audit.

2、 Impact on the daily operation of the company

The company’s subsidiaries Zhongke Meiling and Meiling life appliance use their own idle funds to invest in short-term low-risk financial products on the premise of ensuring that the use of daily operating funds is not affected. Through moderately low-risk short-term financial management, they can improve the use efficiency of funds, obtain certain investment income and further improve the performance level, Obtain more return on investment for shareholders.

3、 Purchase of financial products within 12 months before the announcement date

As of the disclosure date of this announcement, the balance of financial products purchased by the company and its subsidiaries in the past 12 months and not yet due totaled 110 million yuan (including 110 million yuan purchased this time), accounting for 2.266% of the company’s latest audited net assets attributable to shareholders of listed companies. The above-mentioned financial products are financial products purchased by subsidiaries with their own idle funds. The subsidiary’s purchase of bank financial products is within the scope of authorization of the board of directors and the general meeting of shareholders.

4、 Investment risk and risk control measures

(I) investment risk

1. The company and its subsidiaries choose stable financial products with high security, good liquidity and relatively low risk. However, the financial market is greatly affected by macro-economy, and it is not ruled out that the income will be affected by market fluctuations.

2. The company and its subsidiaries will timely and appropriately intervene according to the economic situation and changes in the financial market, but the changes in the financial market are uncertain, so the actual income of financial product investment is unpredictable.

3. Operational risks of business personnel related to financial product investment.

(II) risk control measures

In order to standardize and manage the investment and transaction of financial products, ensure the safety of funds and property of the company and its subsidiaries, effectively prevent investment risks and safeguard the legitimate rights and interests of shareholders and the company, the company has formulated the investment management system of financial products, which defines the principles, investment scope and capital source, approval authority, information disclosure, operation process Detailed provisions have been made on accounting and management, supervision and control, information confidentiality measures, etc., and the company and its subsidiaries will implement them in strict accordance with the system.

5、 Documents for future reference

1. Changhong Meiling Co.Ltd(000521) resolution of the 13th meeting of the 10th board of directors;

2. Changhong Meiling Co.Ltd(000521) resolution of the 11th meeting of the 10th board of supervisors;

3. Changhong Meiling Co.Ltd(000521) resolution of the fourth extraordinary general meeting of shareholders in 2021.

It is hereby announced

Changhong Meiling Co.Ltd(000521) board of directors January 14, 2002

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