Midea Group Co., Ltd.
Interim Report for the First Quarter 2020
April 2020
Section I Important Reminders
1. The Board of Directors, the Supervisory Committee as well as all the
directors, supervisors and senior management staff of Midea Group Co.,
Ltd. (hereinafter referred to as the “Company”) have warranted that this
Report contains no false record, misleading statement or material
omission. And they shall be jointly and severally liable for the factuality,
accuracy and completeness of the information given in this Report.
2. All the directors have attended the Q1 report review board meeting.
3. The financial statements contained in this Report have not been
audited by a certified public auditors (CPAs) firm.
4. Mr. Fang Hongbo, Chairman of the Board and CEO of the Company,
and Ms. Zhong Zheng, Director of Finance of the Company, have
represented and warranted that the financial statements in this Report
are factual, accurate and complete.
5. This Report has been prepared in both Chinese and English. Should
there be any discrepancy between the two versions, the Chinese version
shall prevail.
Section II Company Profile
1. Major Accounting Data and Financial Indicators
Does the Company adjust retrospectively or restate accounting data of previous years?
□Yes √No
Jan.-Mar. 2020 Jan.-Mar.2019 YoYChange(%)
Operating revenue(RMB'000) 58,013,031 75,205,780 -22.86%
Net profitattributabletoshareholders 4,810,977 6,129,026 -21.51%
of theCompany(RMB'000)
Net profitattributabletoshareholders
of theCompanybeforenon-recurring 4,816,912 6,084,881 -20.84%
gains andlosses(RMB'000)
Net cashflowsfromoperatingactivities 7,668,597 11,842,782 -35.25%
(RMB'000)
Basic earningspershare(RMB/share) 0.70 0.94 -25.53%
Diluted earningspershare 0.69 0.93 -25.81%
(RMB/share)
Weighted averageROE(%) 4.62% 7.08% -2.46%
31Mar.2020 31Dec.2019 Change(%)
Total assets(RMB'000) 301,668,584 301,955,419 -0.09%
Net assetsattributabletoshareholders 106,004,841 101,669,163 4.26%
of theCompany(RMB'000)
Non-recurring profits and losses
√ Applicable □ N/A
Unit: RMB’000
Item Jan.-Mar.2020 Note
Profit orlossfromdisposalofnon-currentassets 3,841
Except foreffectivelyhedgingbusinessrelatedtonormal
business operationsoftheCompany,profitorlossarising
from thechangeinthefairvalueoffinancialassetsheldfor
trading, derivativefinancialassets,financialliabilitiesheld -59,056
for trading,derivativefinancialliabilitiesandothernon-
current financialassets,aswellasinvestmentprofitorloss
produced fromthedisposaloffinancialassetsheld-for-
trading, derivativefinancialassets,financialliabilitiesheld
for trading,derivativefinancialliabilitiesandinvestmentsin
other debtobligations
Other 143,555
Less: Corporateincometax 35,798
Minority interests(aftertax) 58,477
Total -5,935 --
Explain the reasons if the Company classifies an item as a non-recurring profit/loss according to the
definition in the
Their Securities to the Public—Non-Recurring Profits and Losses>, or classifies any non-recurring
profit/loss item mentioned in the said explanatory announcement as a recurring profit/loss item
□ Applicable √ N/A
No such cases for the Reporting Period.
2. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
2.1 Total number of common shareholders, preference shareholders with resumed voting rights
and shareholdings of the top ten common shareholders at the period-end
Unit: share
Total numberofcommon Totalnumberofpreference
shareholders attheperiod-end 246,617 shareholderswithresumedvoting 0
rightsattheperiod-end(ifany)
Toptenshareholders
Pledged orfrozen
Shareh Numberof shares
Name ofshareholder Natureof olding Numberof restricted Status
shareholder percent sharesheld sharesheld of Numberof
age(%) share shares
s
Domesticnon- Pledg
Midea HoldingCo.,Ltd. state-owned 31.60 2,212,046,613 ed 215,000,000
corporation
Hong KongSecuritiesClearing Foreign 15.38 1,076,367,324
Company Limited corporation
China SecuritiesFinanceCo.,Ltd. State-owned 2.83 198,145,134
corporation
Fang Hongbo Domestic 1.96 136,990,492 102,742,869
individual
Canada PensionPlanInvestmentBoard Foreign 1.72 120,379,067
－own funds(stockexchange) corporation
Central HuijinAssetManagementLtd. State-owned 1.29 90,169,354
corporation
Huang Jian Domestic 1.26 88,032,200
individual
UBS AG Foreign 1.07 74.946,069
corporation
Yuan Liqun Domestic 0.82 57,722,992 Pledg 15,884,900
individual ed
Li Jianwei Foreign 0.74 51,700,000
individual
Top 10non-restrictedcommonshareholders
Numberofnon-restricted Typeofshares
Name ofshareholder commonsharesheldatthe Type Shares
period-end
Midea HoldingCo.,Ltd. 2,212,046,613 RMBcommon 2,212,046,613
stock
Hong KongSecuritiesClearingCompanyLimited 1,076,367,324 RMBcommon 1,076,367,324
stock
China SecuritiesFinanceCo.,Ltd. 198,145,134 RMBcommon 198,145,134
stock
Canada PensionPlanInvestmentBoard－ ownfunds 120,379,067 RMBcommon 120,379,067
(stock exchange) stock
Central HuijinAssetManagementLtd. 90,169,354 RMBcommon 90,169,354
stock
Huang Jian 88,032,200 RMBcommon 88,032,200
stock
UBS AG 74.946,069 RMBcommon 74.946,069
stock
Yuan Liqun 57,722,992 RMBcommon 57,722,992
stock
Li Jianwei 51,700,000 RMBcommon 51,700,000
stock
Merrill LynchInternational 46,957,200 RMBcommon 46,957,200
stock
Explanation ofrelatedrelationshipor/andacting-in-
concert partiesamongtheabove-mentioned N/A
shareholders
1. The Company’s shareholder Huang Jian holds 88,022,200
shares in the Company through his common securities account
and 10,000 shares in the Company through his account of
collateral securities for margin trading, representing a total
Top tennon-restrictedcommonshareholderstaking holdingof88,032,200sharesintheCompany.
part insecuritiesmargintrading(ifany) 2. The Company’s shareholder Yuan Liqun holds 31,330,890
shares in the Company through her common securities account
and 26,392,102 shares in the Company through her account of
collateral securities for margin trading, representing a total
holding of57,722,992sharesintheCompany.
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conduct any promissory repurchase during the Reporting Period
□ Yes √ No
No such cases in the Reporting Period.
2.2 Total number of preference shareholders and shareholdings of the top ten preference
shareholders at the period-end
□ Applicable √ N/A
Section III Significant Events
1. Major changes of main items in financial statements and financial indicators within
the Report Period, as well as the reasons for the changes
√ Applicable □ N/A
Unit: RMB’000
Financial 31March 31December Change
statementitems 2020/January- 2019/January- (%) Reasons for the changes
(consolidated) March 2020 March 2019
Notesreceivable 1,821,324 4,768,520 -61.81% Mainly due to the decreased sales
revenue
Receivables 3,101,119 7,565,776 -59.01% Mainly due to the decreased sales
financing revenue
Derivativefinancial 113,084 27,100 317.28% Mainly due to the changes in the fair
liabilities valueofderivativefinancialinstruments
Employeebenefits 4,280,740 6,436,109 -33.49% Mainly due to the payment of employee
payable benefits
Long-termpayables 20,967 33,646 -37.68% Mainlyduetotherepaymentoflong-term
payables
Other Mainly due to the changes in the fair
comprehensive -1,294,983 -711,554 -81.99% valueofhedginginstruments
income
Taxesand 281,138 489,405 -42.56% Mainly due to the decreased sales
surcharges revenue
Sellingand Mainly due to the decreased sales
distribution 5,656,993 9,513,634 -40.54% revenue
expenses
Financialexpenses -267,397 -481,058 44.41% Mainly due to the decreased interest
income
Investmentincome 409,709 -146,977 378.76% Mainly due to the changes in the fair
value ofderivativefinancialinstruments
Gainsonchangesin 20,570 230,915 -91.09% Mainly due to the changes in the fair
fairvalue valueofderivativefinancialinstruments
Creditimpairment Mainly due to the YoY decrease in the
losses -131,813 -288,288 54.28% increment in accounts receivable at the
end ofQ12020
Incometax 720,263 1,177,710 -38.84% Mainlyduetothedecreasedprofitbefore
expenses tax
Minorityinterests -587 412,219 - Mainly due to the decreased minority
100.14% interestsinLittleSwan
Mainly due to the decreased cash
Net cash flows from 7,668,597 11,842,782 -35.25% received from sales of goods or
operatingactivities rendering of services on the year-on-
year basis
Net cash flows from Mainly due to the increased cash
investingactivities -5,485,574 -16,811,399 67.37% receivedfromdisposalofinvestmentson
the year-on-yearbasis
Net cash flows from Mainly due to the decreased cash
financingactivities 300,610 4,139,282 -92.74% received from borrowings on the year-
on-year basis
Net increase in cash Mainly due to the increased net cash
andcashequivalents 2,540,236 -990,300 356.51% flows from investing activities on the
year-on-year basis
2. Progress, influence and solutions of significant events
□ Applicable √ N/A
Progress of any share repurchase
√ Applicable □ N/A
The Proposal on the Plan for the Repurchase of Some Public Shares was approved at the 18th Meeting
of the 3rd Board of Directors on 21 February 2020. As such, the Company was agreed to repurchase,
with its own funds, no less than 40,000,000 shares and no more than 80,000,000 shares by way of
centralized bidding at a price not exceeding RMB 65/share. The Report on the Repurchase of Some
Public Shares was disclosed on 25 February 2020.
As of 29 April 2020, the Company has cumulatively repurchased 14,265,055 shares (0.2038% of the
Company’s total share capital as of that date) by way of centralized bidding in its securities account for
repurchase. With the highest trading price being RMB 54.18/share and the lowest being RMB 46.30/share,
the total payment amounted to RMB 701,292,302.13 (exclusive of trading fees). The repurchase was in
line with the requirements of applicable laws and regulations, as well as the repurchase plan of the
Company.
Progress of any repurchased share reduction through centralized price bidding
□ Applicable √ N/A
3. Overdue commitments of the Company’s actual controller, shareholders, related
parties and acquirer, as well as the Company and other commitment makers in the
Report Period or ongoing at the period-end
□Applicable √N/A
No such cases in the Reporting Period.
4. Operating result forecast for January-June 2020
Warning of possible loss or considerable YoY change of the accumulated net profit made during the
period-start until the end of the next Report Period according to predictions as well as any explanations
for these reasons:
□ Applicable √ N/A
5. Securities investment
√Applicable □N/A
Unit: RMB’000
Profitor Cumul
Mea loss ative
Code Abbrevi sure from fair Purchas Sold Profit Fund
Type of of ationof Initial men Opening change value edin in or Closing Accounti ing
securiti securit securitie investment t carrying infair chang the the lossin carrying ngtitle sour
es ies s cost met amount value e period peri the amount ce
hod during charge od period
the dto
period equity
Domes Fair
tically/ valu Financial Own
Overse SEHK: XIAOMI 1,272,584 e 936,358 -30,326 39,915 - - - 945,947 asset fund
as 01810 -W met heldfor s
listed hod trading
stock
Domes NYSE: Fair Financial Own
tically/ DNK Danke 172,190 valu - -63,326 3,991 172,190 - - 112,855asset fund
Overse e heldfor s
as met trading
listed hod
stock
Domes Fair
tically/ Espress valu Financial Own
Overse SH:68 if 14,625 e 150,993 21,177 - - - - 172,170 asset fund
as 8018 System met heldfor s
listed s hod trading
stock
Total 1,459,399 -- 1,087,35 -72,475 43,906 172,190 - - 1,230,972
1
6. Entrusted asset management
□ Applicable √ N/A
No such cases in the Reporting Period.
7. Investments in financial derivatives
√Applicable □N/A
Unit: RMB’000Closing
Rel Amou investme
atio Purch Sold nt nt
nshi Rel Type Initial Opening ased in provid Closing amount Actual
Opera p ated of investme Starting Ending investme in Repor edfor investme asa gain/lossin
ting with tran deriva nt date date nt Repor ting impair nt percenta Reporting
party the sact tive amount amount ting Perio ment amount geofthe Period
Co ion Perio d (if Company
mpa d any) ’sclosing
ny net
assets
Futur Futur 31
es No No es 1,377 1January Decem 1,377 - - - -300,023 -0.2830% -309,733
comp contra 2020 ber
any cts 2020
FX 31
Bank No No deriva 267,475 1January Decem 267,475 - - - -105,052 -0.0991% -233,348
tives 2020 ber
2020
Total 268,852 -- -- 268,852 - - - -405,075 -0.3821% -543,081
Source ofderivatives AllfromtheCompany’sownfunds
investment funds
Litigation involved(if N/A
applicable)
Disclosure dateofthe
announcement about
the board’sconsentfor 30April2020
the derivative
investment (ifany)
Disclosure dateofthe
announcement about
the generalmeeting’s -
consent forthe
derivative investment(if
any)
For thesakeofeliminatingthecost riskoftheCompany'sbulkpurchasesofrawmaterialsasa
result ofsignificantfluctuationsinrawmaterialprices,theCompanynotonlycarriedoutfutures
business for some of the materials, but also made use of bank financial instruments and
promoted forexfundsbusiness,withthepurposeofavoidingtherisksofexchangeandinterest
rate fluctuation, realizing the preservation and appreciation of forex assets, reducing forex
liabilities, aswellasachievinglocked-incosts.TheCompanyhasperformedsufficientevaluation
and control against derivatives investment and position risks,details of which are describedas
follows:
Risk analysis of 1. Legal risk:The Company's futures business and forex funds businesses shall be conducted
positions held in in compliance with laws and regulations, with clearly covenanted responsibility and obligation
derivatives during the relationshipbetweentheCompanyandtheagencies.
Reporting Period and
explanation of control Controlmeasures:TheCompanyhasdesignatedrelevantresponsibledepartmentstoenhance
measures (Includingbut learningoflawsandregulationsandmarketrules,conductedstrictexaminationandverification
not limited to market of contracts, defined responsibility and obligation well, and strengthened compliance check, so
risk, liquidity risk, credit as to ensure that the Company's derivatives investment and position operations meet the
risk, operational risk, requirementsofthelawsandregulationsandinternalmanagementsystemoftheCompany.
legal risk,etc.) 2.Operationalrisk:Imperfectinternalprocess,staff,systemsandexternalissuesmaycausethe
Company tosufferfromlossduringthecourseofitsfuturesbusinessandforexfundsbusiness.
Control measures: The Company has not only developed relevant management systems that
clearly defined the assignment of responsibility and approval process for the futures business
and forex funds business, but also established a comparatively well-developed monitoring
mechanism, aiming to effectively reduce operational risk by strengthening risk control over the
business, decision-makingandtradingprocesses.
3. Marketrisk: Uncertaintiescausedbychangesinthepricesofbulkcommodity andexchange
rate fluctuations in foreign exchange market could lead to greater market risk in the futures
business and forex funds business. Meanwhile, inability to timely raise sufficient funds to
establish and maintain hedging positions in futures operations, or the forex funds required for
performance inforexfundsoperationsbeingunabletobecreditedintoaccountcouldalsoresult
in lossanddefaultrisks.
Control measures:ThefuturesbusinessandforexfundsbusinessoftheCompanyshallalways
be conducted by adhering to prudent operation principles. For futures business, the futures
transaction volumeandapplicationhavebeendeterminedstrictlyaccordingtotherequirements
of production & operations, and the stop-loss mechanism has been implemented. Besides, to
determine thepreparedmarginamountwhichmayberequiredtobesupplemented,thefutures
risk measuring system has been established to measure and calculate the margin amount
occupied, floating gains and losses, margin amount available and margin amount required for
intended positions.Asforforexfundsbusiness,ahierarchicalmanagementmechanismhasbeen
implemented, whereby the operating unit which has submitted application for funds business
should conduct risk analysis on the conditions and environment affecting operating profit and
loss, evaluatethepossiblegreatestrevenueandloss,andreportthegreatestacceptablemargin
ratio or total margin amount, so that the Company can update operating status of the funds
business onatimelybasistoensureproperfundsarrangementbeforetheexpirydates.
Changes inmarket
prices orfairvalueof
derivative products
during theReporting 1.LossfromfuturescontractsduringtheReportingPeriodwasRMB-309,733,000.
Period, specific 2.LossfromFXderivativesduringtheReportingPeriodwasRMB-233,348,000.
methods usedand
relevant assumption 3. Public quotations in futures market or forward forex quotations announced by the Bank of
and parametersettings Chinaareusedintheanalysisofderivativesfairvalue.
shall bedisclosedfor
analysis offairvalueof
derivatives
Explanation of
significant changesin
accounting policiesand
specific financial
accounting principlesin
respect ofthe Nochange
Company's derivatives
for theReportingPeriod
as comparedtothe
previous Reporting
Period
Special opinions The Company's independent directors are of the view that the futures hedging business is an
expressed by effective instrument for the Company to eliminate price volatility and implement risk prevention
independent directors measuresthroughenhancedinternalcontrol,therebyimprovingtheoperationandmanagement
concerning the of the Company; the Company's foreign exchange risk management capability can be further
Company's derivatives improved throughthe forexfunds business,soas tomaintain andincrease thevalueof foreign
investment andrisk exchange assets and the abovementioned investment in derivatives can help the Company to
control fully bring out its competitive advantages. Therefore, it is practicable for the Company to carry
out derivativesinvestmentbusiness,andtherisksarecontrollable.
8. Visits received during the Reporting Period
√Applicable □N/A
Date Typeofvisit Typeofvisitor Discussions
Please refertoInvestorRelationsActivities
14 January2020 Fieldresearch Institution on14January2020onthewebsiteof
www.cninfo.com.cn
Please refertoInvestorRelationsActivities
14 March2020 Fieldresearch Institution on14March2020onthewebsiteof
www.cninfo.com.cn
Please refertoInvestorRelationsActivities
24 March2020 Fieldresearch Institution on24March2020onthewebsiteof
www.cninfo.com.cn
9. Irregular provision of guarantees
□ Applicable √ N/A
No such cases in the Reporting Period.
10. Occupation of the Company’s funds by the controlling shareholder or its related
parties for non-operating purposes
□ Applicable √ N/A
No such cases in the Reporting Period.
Section IV Financial Statements
1. Financial statements
Balance Sheet
Prepared by Midea Group Co., Ltd. 31 March 2020 Unit:
RMB’000
31March2020 31December2019 31March2020 31December2019
ASSETS
Consolidated Consolidated Company Company
Currentassets:
Cashatbankandonhand 78,514,856 70,916,841 61,538,598 52,291,056
Financialassetsheldfortrading 1,230,972 1,087,351 - -
Derivativefinancialassets 168,109 197,412 - -
Notesreceivable 1,821,324 4,768,520 - -
Accountsreceivable 20,652,085 18,663,819 - -
Receivablesfinancing 3,101,119 7,565,776 -
Advancestosuppliers 2,784,413 2,246,177 96,179 36,877
Contractualassets 4,261,155
Loansandadvances 11,380,290 10,869,396 - -
Otherreceivables 3,069,722 2,712,974 20,750,436 18,369,865
Inventories 24,358,547 32,443,399 - -
Othercurrentassets 64,501,344 65,011,027 44,356,921 42,665,884
Totalcurrentassets 215,843,936 216,482,692 126,742,134 113,363,682
Non-currentassets:
Long-termreceivables 1,176,115 1,208,079 - -
Loansandadvances 663,800 790,101 - -
Long-termequityinvestments 2,847,066 2,790,806 52,781,313 52,605,859
Othernon-currentfinancialassets 2,158,084 1,750,107 487,564 487,564
Investmentproperties 391,134 399,335 508,153 518,828
Fixedassets 21,394,653 21,664,682 834,063 878,239
Constructioninprogress 1,329,405 1,194,650 177,936 155,681
Intangibleassets 15,358,682 15,484,179 696,855 700,836
Goodwill 28,151,704 28,207,065 - -
Long-termprepaidexpenses 1,237,807 1,267,127 104,127 123,548
Deferredtaxassets 5,851,789 5,768,993 208,723 189,888
Othernon-currentassets 5,264,409 4,947,603 4,407,745 4,359,507
Totalnon-currentassets 85,824,648 85,472,727 60,206,479 60,019,950
TOTALASSETS 301,668,584 301,955,419 186,948,613 173,383,632
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
Balance Sheet (Continued)
Prepared by Midea Group Co., Ltd. 31 March 2020 Unit:
RMB’000
LIABILITIESAND 31March2020 31December2019 31March2020 31December2019
SHAREHOLDERS'EQUITY Consolidated Consolidated Company Company
Currentliabilities:
Short-termborrowings 6,998,003 5,701,838 4,858,808 4,550,064
Customerdepositsanddeposits
frombanksandotherfinancial 71,697 62,477 - -
institutions
Derivativefinancialliabilities 113,084 27,100 - -
Notespayable 23,112,674 23,891,600 - -
Accountspayable 44,659,962 42,535,777 - -
Advancesfromcustomers 16,231,854 -
Contractualliabilities 13,547,238 - -
Employeebenefitspayable 4,280,740 6,436,109 558,524 566,861
Taxespayable 4,195,244 5,096,267 682,284 1,059,246
Otherpayables 3,554,730 3,800,568 116,401,888 103,624,998
Currentportionofnon-current
liabilities 1,454,745 1,460,117 - -
Othercurrentliabilities 38,254,705 39,074,777 5,763 19,539
Totalcurrentliabilities 140,242,822 144,318,484 122,507,267 109,820,708
Non-currentliabilities:
Long-termborrowings 41,368,988 41,298,377 4,000,000 4,000,000
Long-termpayables 20,967 33,646 - -
Provisions 348,857 353,269 - -
Deferredincome 623,746 617,155 - -
Long-termemployeebenefits
payable 2,368,378 2,418,563 - -
Deferredtaxliabilities 4,291,992 4,556,002 59,032.00 59,032
Othernon-currentliabilities 821,272 863,826 - -
Totalnon-currentliabilities 49,844,200 50,140,838 4,059,032 4,059,032
Totalliabilities 190,087,022 194,459,322 126,566,299 113,879,740
Shareholders'equity:
Sharecapital 6,999,467 6,971,900 6,999,467 6,971,900
Capitalsurplus 20,399,899 19,640,313 27,333,335 26,592,959
Less:Treasurystock (4,442,515) (3,759,732) (4,442,515) (3,759,732)
Othercomprehensiveincome (1,294,983) (711,554) 1,735 1,735
Generalriskreserve 366,947 366,947 - -
Surplusreserve 6,447,658 6,447,658 6,447,658 6,447,658
Undistributedprofits 77,528,368 72,713,631 24,042,634 23,249,372
Totalequityattributableto
shareholdersoftheCompany 106,004,841 101,669,163 60,382,314 59,503,892
Minorityinterests 5,576,721 5,826,934 - -
Totalshareholders'equity 111,581,562 107,496,097 60,382,314 59,503,892
TOTALLIABILITIESAND
301,668,584 301,955,419 186,948,613 173,383,632
SHAREHOLDERS'EQUITY
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
Income Statement
Prepared by Midea Group Co., Ltd. January-March 2020 Unit:
RMB’000
January-March January-March January-March January-
Item 2020 2019 2020 March2019
Consolidated Consolidated Company Company
1.Totalrevenue 58,355,915 75,500,426 382,710 467,215
Including:Operatingrevenue 58,013,031 75,205,780 382,710 467,215
Interest income 342,786 294,332 - -
Fee andcommissionincome 98 314 - -
2.Totalcost (53,240,225) (67,660,134) 166,944 305,480
Including:Costofsales (43,428,300) (53,877,858) (10,696) (13,345)
Interest costs (53,023) (75,120) - -
Fee and commission (1,976) (2,456) - -
expenses
Taxes andsurcharges (281,138) (489,405) (14,860) (7,116)
Selling and distribution (5,656,993) (9,513,634) - -
expenses
General and administrative (2,008,521) (1,977,121) (129,126) (109,198)
expenses
Research and development (2,077,671) (2,205,598) - -
expenses
Financialexpenses 267,397 481,058 321,626 435,139
Including:Interestexpenses (272,142) (224,786) (397,286) (297,552)
Interestincome 778,923 953,378 718,942 736,263
Add: Otherincome 81,818 66,516 1,687 -
Investmentincome 409,709 (146,977) 222,065 71,992
Including:Investment income 137,588 105,865 74,300 66,507
fromassociatesandjointventures
Gains on changes in fair 20,570 230,915 86,529 33,665
value
Assetimpairmentlosses 1,430 (12,317) - -
Creditimpairmentlosses (131,813) (288,288) (6,179) (147)
Gainsondisposalofassets 3,841 (6,369) - -
3.Operatingprofit 5,501,245 7,683,772 853,756 878,205
Add: Non-operatingincome 46,134 57,022 842 4,372
Less: Non-operatingexpenses (16,726) (21,839) (12,629) (85)
4.Totalprofit 5,530,653 7,718,955 841,969 882,492
Less: Incometaxexpenses (720,263) (1,177,710) (52,467) (128,539)
5.Netprofit 4,810,390 6,541,245 789,502 753,953
(1) Classified by continuity of
operations
Net profit from continuing
operations 4,810,390 6,541,245 789,502 753,953
Net profit from discontinued
operations - - - -
(2)Classifiedbyownershipofthe
equity
Attributable to shareholders of
theCompany 4,810,977 6,129,026 789,502 753,953
Minority interests (587) 412,219 - -
6.Othercomprehensiveincome,
netoftax (834,341) 2,436 - 3,990
Othercomprehensiveincome
attributabletoshareholdersofthe (583,429) 40,641 - 3,990
Company,netoftax
(1) Othercomprehensiveincome
itemswhichwillnotbereclassified (34,092) (38,094) - -
subsequentlytoprofitorloss
1) Changes arising from
remeasurementofdefinedbenefitplan (34,092) (38,094) - -
(2) Othercomprehensiveincome
itemswhichwillbereclassified (549,337) 78,735 - 3,990
subsequentlytoprofitorloss
1)Othercomprehensive
incomethatwillbetransferred 1,606 (1,994) - 3,990
subsequently toprofitorlossunder
the equitymethod
2)Cashflowhedgingreserve (326,367) 90,207 - -
3) Translation of foreign (224,576) (9,478) - -
currencyfinancialstatements
Other comprehensive income
attributable to minority shareholders, (250,912) (38,205) - -
netoftax
7.Totalcomprehensiveincome 3,976,049 6,543,681 789,502 757,943
Attributable to shareholders of the 4,227,548 6,169,667 789,502 757,943
Company
Minorityinterests (251,499) 374,014 - -
8.Earningspershare
(1)Basicearningspershare 0.70 0.94 N/A N/A
(2)Dilutedearningspershare 0.69 0.93 N/A N/A
Legal representative: Principal in charge of accounting: Head of accounting
department:
Fang Hongbo Zhong Zheng Chen Lihong
Cash Flow Statement
Prepared by Midea Group Co., Ltd. January-March 2020 Unit:
RMB’000
January-March January-March January-March January-
Item 2020 2019 2020 March2019
Consolidated Consolidated Company Company
1.Cashflowsfromoperatingactivities
Cashreceivedfromsalesofgoodsor 54,493,549 61,230,159 - -
renderingofservices
Netincreaseincustomerdepositsand
depositsfrombanksandotherfinancial 9,220 47,252 - -
institutions
NetdecreaseindepositswiththeCentral 26,198 228,122 - -
Bank
Cashreceivedfrominterest,feeand 356,968 433,884 - -
commission
Refundoftaxesandsurcharges 1,481,374 2,255,964 - -
Cashreceivedrelatingtootheroperating 771,562 675,619 13,336,223 12,053,410
activities
Sub-totalofcashinflows 57,138,871 64,871,000 13,336,223 12,053,410
Cashpaidforgoodsandservices (29,986,705) (32,531,577) - -
Netincreaseinloansandadvances (420,707) (1,486,229) - -
Netdecreaseinborrowingsfromthe - (48,758) - -
CentralBank
Cashpaidforinterest,feeand (55,731) (79,055) - -
commission
Cashpaidtoandonbehalfofemployees (8,895,742) (8,147,054) (9,783) (11,503)
Paymentsoftaxesandsurcharges (2,621,587) (3,835,224) (2,964) (49,908)
Cashpaidrelatingtootheroperating (7,489,802) (6,900,321) (2,828,386) (322,665)
activities
Sub-totalofcashoutflows (49,470,274) (53,028,218) (2,841,133) (384,076)
Netcashflowsfromoperating 7,668,597 11,842,782 10,495,090 11,669,334
activities
2.Cashflowsfrominvestingactivities
Cashreceivedfromdisposalof 22,580,275 10,793,208 20,960,000 3,406,557
investments
Cashreceivedfromreturnson 1,005,097 233,728 980,079 198,723
investments
Netcashreceivedfromdisposaloffixed
assets,intangibleassetsandotherlong- 8,683 64,509 - -
termassets
Sub-total of cash inflows 23,594,055 11,091,445 21,940,079 3,605,280
Cashpaidtoacquirefixedassets,
intangibleassetsandotherlong-term (884,830) (1,143,943) (47,168) (40,220)
assets
Cashpaidtoacquireinvestments (28,183,538) (26,581,092) (27,760,000) (25,408,375)
Netcashpaidtoacquiresubsidiariesand (11,261) (177,809) - -
otherbusinessunits
Sub-totalofcashoutflows (29,079,629) (27,902,844) (27,807,168) (25,448,595)
Netcashflowsfrominvesting (5,485,574) (16,811,399) (5,867,089) (21,843,315)
activities
3.Cashflowsfromfinancingactivities
Cashreceivedfromcapitalcontributions 361,920 777,348 361,920 698,761
Including:Cashreceivedfromcapital
contributionsbyminorityshareholdersof - 78,587 - -
subsidiaries
Cashreceivedfromborrowings 1,403,478 5,122,321 308,744 5,727,000
Sub-totalofcashinflows 1,765,398 5,899,669 670,664 6,425,761
Cashrepaymentsofborrowings (260,351) (663,249) - (993,000)
Cashpaymentsforinterestexpensesand (383,344) (262,635) (400,222) (195,585)
distributionofdividendsorprofits
Including:Cashpaymentsfordividendsor
profittominorityshareholdersof (62,631) - - -
subsidiaries
Cashpaidrelatingtootherfinancing (821,093) (834,503) (802,059) (691,717)
activities
Sub-totalofcashoutflows (1,464,788) (1,760,387) (1,202,281) (1,880,302)
Netcashflowsfromfinancing 300,610 4,139,282 (531,617) 4,545,459
activities
4.Effectofforeignexchangerate 56,603 (160,965) - -
changesoncashandcashequivalents
5.Netincreaseincashandcash 2,540,236 (990,300) 4,096,384 (5,628,522)
equivalents
Add:Cashandcashequivalentsat 30,441,760 17,952,282 12,408,650 10,181,934
beginningofperiod
6.Cashandcashequivalentsatendof 32,981,996 16,961,982 16,505,034 4,553,412
period
Legal representative: Principal in charge of accounting: Head of accounting
department:
Fang Hongbo Zhong Zheng Chen Lihong
2. Adjustments to the Financial Statements
2.1 Adjustments to the financial statements at the beginning of the first execution year of any new
standards governing revenue or leases which have been implemented since 2020
√ Applicable □ N/A
Balance Sheet
Prepared by Midea Group Co., Ltd. 31 March 2020 Unit:
RMB’000
Consolidated Company
ASSETS 31December 1January 31December 1January Adjustme
2019 2020 Adjustment 2019 2020 nt
Current assets:
Cash atbankandon 70,916,841 70,916,841 - 52,291,056 52,291,056 -
hand
Financial assets 1,087,351 1,087,351 - - -
held fortrading -
Derivative financial 197,412 197,412 - - - -
assets
Notes receivable 4,768,520 4,768,520 - - - -
Accounts receivable 18,663,819 18,663,819 - - - -
Receivables 7,565,776 7,565,776 - - -
financing -
Advances to 2,246,177 2,246,177 - 36,877 -
suppliers 36,877
Contractual assets 4,009,176 4,009,176 -
Loans andadvances 10,869,396 10,869,396 - - - -
Other receivables 2,712,974 2,712,974 - 18,369,865 18,369,865 -
Inventories 32,443,399 28,434,223 (4,009,176) - - -
Other currentassets 65,011,027 65,011,027 - 42,665,884 42,665,884 -
Totalcurrent 216,482,692 216,482,692 - 113,363,682 113,363,682 -
assets
Non-current
assets:
Long-term 1,208,079 1,208,079 - - -
receivables -
Loans andadvances 790,101 790,101 - - -
Long-term equity 2,790,806 2,790,806 - 52,605,859 52,605,859 -
investments
Other non-current 1,750,107 1,750,107 - 487,564 487,564 -
financial assets
Investment 399,335 399,335 - 518,828 518,828 -
properties
Fixed assets 21,664,682 21,664,682 - 878,239 878,239 -
Construction in 1,194,650 1,194,650 - 155,681 155,681 -
progress
Intangible assets 15,484,179 15,484,179 - 700,836 700,836 -
Goodwill 28,207,065 28,207,065 - - - -
Long-term prepaid 1,267,127 1,267,127 - 123,548 123,548 -
expenses
Deferred taxassets 5,768,993 5,768,993 - 189,888 189,888 -
Other non-current 4,947,603 4,947,603 - 4,359,507 4,359,507 -
assets
Totalnon-current 85,472,727 85,472,727 - 60,019,950 60,019,950 -
assets
TOTALASSETS 301,955,419 301,955,419 - 173,383,632 173,383,632 -
Balance Sheet (Continued)
Prepared by Midea Group Co., Ltd. 31 March 2020 Unit:
RMB’000
Consolidated Company
LIABILITIES AND 31 31
SHAREHOLDERS'EQUITY December 1January Adjustment December 1January Adjust
2019 2020 2019 2020 ment
Current liabilities:
Short-term borrowings 5,701,838 5,701,838 - 4,550,064 4,550,064 -
Customer depositsand
deposits frombanksand 62,477 62,477 - - - -
other financialinstitutions
Derivative financialliabilities 27,100 27,100 - - - -
Notes payable 23,891,600 23,891,600 - - - -
Accounts payable 42,535,777 42,535,777 - - - -
Advances fromcustomers 16,231,854 (16,231,854) - - -
Contractual liabilities 18,436,559 18,436,559 - -
Employee benefitspayable 6,436,109 6,436,109 - 566,861 566,861 -
Taxespayable 5,096,267 5,096,267 - 1,059,246 1,059,246 -
Other payables 3,800,568 3,800,568 - 103,624,998 103,624,998 -
Current portionofnon-current 1,460,117 1,460,117 - - - -
liabilities
Other currentliabilities 39,074,777 36,870,072 (2,204,705) 19,539 19,539 -
Totalcurrentliabilities 144,318,484 144,318,484 - 109,820,708 109,820,708 -
Non-current liabilities:
Long-term borrowings 41,298,377 41,298,377 - 4,000,000 4,000,000 -
Long-term payables 33,646 33,646 - - - -
Provisions 353,269 353,269 - - - -
Deferred income 617,155 617,155 - - - -
Long-term employeebenefits 2,418,563 2,418,563 - - - -
payable
Deferred taxliabilities 4,556,002 4,556,002 - 59,032 59,032 -
Other non-currentliabilities 863,826 863,826 - - - -
Totalnon-currentliabilities 50,140,838 50,140,838 - 4,059,032 4,059,032 -
Totalliabilities 194,459,322 194,459,322 - 113,879,740 113,879,740 -
Shareholders' equity:
Share capital 6,971,900 6,971,900 - 6,971,900 6,971,900 -
Capital surplus 19,640,313 19,640,313 - 26,592,959 26,592,959 -
Less: Treasurystock (3,759,732) (3,759,732) - (3,759,732) (3,759,732) -
Other comprehensiveincome (711,554) (711,554) - 1,735 1,735 -
General riskreserve 366,947 366,947 - - - -
Surplus reserve 6,447,658 6,447,658 - 6,447,658 6,447,658 -
Undistributed profits 72,713,631 72,713,631 - 23,249,372 23,249,372 -
Totalequityattributableto 101,669,163 101,669,163 - 59,503,892 59,503,892 -
shareholders oftheCompany
Minority interests 5,826,934 5,826,934 - - - -
Totalshareholders'equity 107,496,097 107,496,097 - 59,503,892 59,503,892 -
TOTALLIABILITIESAND 301,955,419 301,955,419 - 173,383,632 173,383,632 -
SHAREHOLDERS' EQUITY
2.2 Retrospective restatement of comparative data due to the first execution of any new standards
governing revenue or leases which have been implemented since 2020
□ Applicable √ N/A
3. Auditor’s report
Is this Report audited by a CPAs firm?
□Yes √No
Midea Group Co., Ltd.Legal Representative: Fang Hongbo
30 April 2020
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