Financial Performance - In 2021, Whirlpool (China) reported a net profit attributable to shareholders of -588,940,729.11 RMB, a significant decline compared to -149,701,660.11 RMB in 2020, representing a 293.41% increase in losses[4] - The company's total revenue for 2021 was 4,931,163,697.11 RMB, a slight decrease of 0.26% from 4,944,067,835.28 RMB in 2020[20] - Basic earnings per share for 2021 was -0.77 yuan, a decrease of 293.41% compared to -0.20 yuan in 2020[22] - The company reported a net profit of -5.889 billion yuan in 2021, compared to -1.497 billion yuan in 2020, indicating a significant increase in losses[23] - The net profit after deducting non-recurring gains and losses was CNY -667.98 million, down 105.09% from the previous year[52] - The company’s unallocated profits at the end of 2021 were 695,368,416.41 RMB, with 170,390,496.80 RMB available for distribution to shareholders[4] - The company plans not to distribute cash dividends or issue bonus shares for the 2021 fiscal year due to the reported losses[4] Cash Flow and Assets - The net cash flow from operating activities improved by 56.70%, reaching -343,878,911.90 RMB in 2021, compared to -794,260,315.40 RMB in 2020[20] - As of the end of 2021, the total assets of Whirlpool (China) were 5,952,640,949.98 RMB, down 15.12% from 7,013,158,653.76 RMB at the end of 2020[20] - The net cash flow from investing activities surged by 456.43% to 991,108,667.67 RMB from 178,120,298.82 year-on-year[54] - The net cash flow from financing activities was -15,244,014.64 RMB, showing a decrease of 75.79% compared to the previous year[66] - Total assets at the end of the reporting period were significantly impacted, with trading financial assets decreasing by 62.23% to 653,397,588.08 RMB[68] - Accounts receivable dropped by 70.61% to 86,999,037.81 RMB due to a decline in domestic sales revenue[68] Market and Product Development - Revenue for 2021 was approximately 49.31 billion yuan, showing a slight decline from 49.44 billion yuan in 2020, primarily due to the exit of the Sanyo brand and reduced domestic demand[22] - The company plans to enhance its product offerings in high-end washing machines, dryers, and dishwashers to meet diverse consumer demands[46] - The company launched new products including the Fresh Care+ series washing and drying set and the W11 series dishwasher, focusing on health technology and tailored for Chinese households[39] - The company aims to leverage its global supply chain advantages and innovate its management system for sustainable development[30] - The company plans to expand its product categories in kitchen appliances, particularly dishwashers and integrated stoves, to create new growth points[77] Strategic Initiatives and Management - The company plans to increase R&D investment and enhance domestic sales through brand integration and product quality improvements, aiming for better operational performance in 2022[23] - The company has improved internal operational efficiency through management reforms, including a focus on in-house production of components previously outsourced[35] - Whirlpool (China) aims to strengthen its competitive position through potential mergers and acquisitions[92] - The company is committed to a dual-brand strategy, focusing on high-quality growth in the Chinese market through online platforms and new retail models[77] - Following a change in control due to a takeover, the new management is committed to executing strategic plans to safeguard investor interests[80] Environmental and Social Responsibility - The company’s wastewater discharge from the Nankang Industrial Park was 145,681.245 tons, with chemical oxygen demand averaging 52.28 mg/L, all within permissible limits[125] - The company has established an emergency response plan for environmental incidents, detailing procedures and responsibilities for various potential environmental hazards[130] - The company completed a carbon assessment report in 2020 and is currently organizing the 2021 carbon assessment work, aiming to establish a carbon peak and carbon neutrality roadmap[134] - This report marks the company's 14th social responsibility report, detailing its commitment to social responsibility initiatives[135] Governance and Compliance - The company has established measures to maintain independence from its controlling shareholder, ensuring no conflicts of interest arise in operations[81] - The company received a notice of investigation from the China Securities Regulatory Commission due to suspected false disclosures in its 2015 and 2016 annual reports[101] - The company was penalized by the China Securities Regulatory Commission for the aforementioned issues, concluding the investigation[102] - The company has not faced any violations regarding guarantees during the reporting period[143] - The company has confirmed that there are no issues regarding the integrity and honesty of its management[145] Shareholder and Ownership Changes - Gree Electric Appliances acquired 51.10% of Whirlpool (China) shares, increasing its stake to 56.19% by the end of the reporting period[8] - The company underwent a change in shareholder structure due to the completion of a tender offer, leading to a re-election of the board of directors and supervisors[94] - The previous controlling shareholder, Whirlpool (China) Investment Co., Ltd., reduced its holdings by 238,362,839 shares, now holding 152,521,361 shares, which is 19.9% of the total share capital, making it the second-largest shareholder[168] - The actual controllers of the company are Liang Zhaoxian and Liang Huiqiang, who also control other companies, including a significant stake in Zojirushi Co., Ltd. (15.51%)[169] Employee and Training Initiatives - Approximately 500 students participated in the company's school-enterprise cooperation program, with a significant number choosing to remain with the company post-graduation[115] - The company implemented an online learning platform to enhance employee training, resulting in improved productivity and efficiency[114] - The employee composition includes 667 production staff, 497 sales personnel, 285 technical staff, 91 financial staff, and 114 administrative staff[112] - The company emphasizes a performance-based compensation policy, linking employee salaries to performance and capabilities to enhance internal efficiency[113]

惠而浦（中国）股份有限公司 2021 年第三季度报告 单位：元 币种：人民币 1 / 12 证券代码：600983 证券简称：惠而浦 惠而浦（中国）股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人梁惠强、主管会计工作负责人及会计机构负责人陈升弟保证季度报告中财务报表 信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 年初至报告期 | --- | --- | --- | --- | --- | |-----------------------------------------------|------------------|--------------------------------------|------------------|-- ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 2,543,248,245, representing a 17.94% increase compared to CNY 2,156,408,660.92 in the same period last year[24]. - The net profit attributable to shareholders for the first half of 2021 was a loss of CNY 129,072,858.96, which is an 11.38% increase in loss compared to a loss of CNY 115,889,354.26 in the previous year[24]. - The net cash flow from operating activities improved significantly, reaching CNY 4,332,537.91, compared to a negative cash flow of CNY -738,565,374.21 in the same period last year, marking a 100.59% change[24]. - The basic earnings per share for the first half of 2021 was -CNY 0.17, a decrease of 12.27% from -CNY 0.15 in the same period last year[25]. - The company reported a weighted average return on equity of -3.70%, which is a decrease of 0.55 percentage points compared to -3.15% in the previous year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -188.29 million yuan, a decline of 45.31% compared to the previous year[41]. - The company reported a total comprehensive loss of ¥129,364,526.61 for the first half of 2021, compared to a loss of ¥115,797,022.14 in the same period of 2020[152]. - The total comprehensive income for the current period showed a decrease of 134,132,046.98 RMB compared to the previous period[186]. Shareholder Information - The company’s major shareholder, Galanz, acquired 391,661,649 shares, representing approximately 51.10% of the total share capital during the tender offer period[10]. - As of the end of the reporting period, Galanz held 412,636,818 shares, accounting for approximately 53.84% of the total share capital[10]. - The company has no plans for profit distribution or capital reserve transfer to increase share capital during this reporting period[6]. - The total number of ordinary shareholders at the end of the reporting period was 20,388[124]. - The total number of shares held by the top ten shareholders was 412,636,818, accounting for 53.84% of the total shares[126]. Assets and Liabilities - The total assets of the company as of the end of the reporting period were CNY 6,699,503,405.64, a decrease of 4.47% from CNY 7,013,158,653.76 at the end of the previous year[24]. - The net assets attributable to shareholders decreased by 3.64%, amounting to CNY 3,421,893,777.00 compared to CNY 3,551,258,303.61 at the end of the previous year[24]. - The company's total liabilities decreased from ¥2,636,802,165.17 in the previous year to ¥2,440,511,364.26[150]. - Total equity decreased from ¥3,270,474,755.25 to ¥3,136,342,708.27, reflecting a decline of approximately 4.1%[150]. - Total assets decreased from ¥7,013,158,653.76 to ¥6,699,503,405.64, a decline of approximately 4.5%[139]. - Total liabilities decreased from ¥3,461,900,350.15 to ¥3,277,609,628.64, a reduction of about 5.3%[141]. Operational Strategy - Whirlpool (China) focuses on a dual-brand strategy with "Whirlpool" and "Dido," aiming to meet the high-end consumer demand through innovative health technology products[32]. - The company operates a complete independent system for R&D, design, procurement, production, sales, and service, facilitating both domestic and international business activities[34]. - The company aims to leverage its global resources and technological innovations to provide high-quality products and services to the global market[38]. - Whirlpool (China) is focusing on expanding its cross-border e-commerce and steadily growing its export business despite rising raw material prices and logistics costs[52]. - The company is enhancing its brand power through various marketing campaigns and digital media interactions, significantly increasing brand recognition and consumer engagement[45]. Environmental Compliance - The wastewater discharge from the Nankang Industrial Park Phase I and II totaled 111,579 tons, with an average chemical oxygen demand (COD) concentration of 127 mg/L, and total COD emissions of 14.17 tons, which is below the permitted limits[82]. - The company has implemented various air pollution control facilities, including UV photocatalytic oxidation systems, with capacities ranging from 12,000 m³/hour to 130,000 m³/hour, all operating normally[89]. - The company has received multiple discharge permits from the local environmental authorities, ensuring compliance with environmental regulations[82]. - The company continues to invest in pollution control technologies to enhance environmental sustainability and compliance with regulatory standards[89]. - The company has established a comprehensive emergency response plan for environmental incidents, which has been filed with the Hefei High-tech Zone Ecological Environment Bureau[93]. Management and Governance - The company has undergone a significant change in its board and management structure following a completed takeover bid[74]. - The company is focusing on enhancing its internal governance structure in response to changes in shareholder composition[74]. - The actual controller of the company changed to Mr. Liang Zhaoxian and Mr. Liang Huiqiang after the completion of the tender offer, with a 51.1% shareholding[114]. - The company has committed to resolving potential competition issues with its actual controller's enterprises within 60 months following the tender offer completion[108]. - There were no significant lawsuits or arbitration matters during the reporting period[116].

Financial Performance - In 2020, Whirlpool (China) Co., Ltd. reported a net profit of -149,701,660.11 CNY, an improvement of 53.63% compared to the previous year's loss of -322,839,167.01 CNY[6]. - The company's operating revenue for 2020 was 4,944,067,835.28 CNY, representing a decrease of 6.39% from 5,281,658,055.31 CNY in 2019[25]. - The net cash flow from operating activities was -794,260,315.40 CNY, a significant decline compared to -109,448,371.36 CNY in 2019, marking a decrease of 625.69%[25]. - As of the end of 2020, the total assets amounted to 7,013,158,653.76 CNY, down 7.51% from 7,582,845,817.74 CNY at the end of 2019[25]. - The net assets attributable to shareholders were 3,551,258,303.61 CNY, a decrease of 5.42% from 3,754,626,617.79 CNY in 2019[25]. - Basic earnings per share for 2020 was -0.20 CNY, an improvement of 53.61% compared to -0.42 CNY in 2019[26]. - The net profit for 2020 was -149.7 million CNY, compared to a net profit of 261.8 million CNY in 2018, reflecting significant losses over the past three years[29]. - The weighted average return on equity improved to -4.10% in 2020 from -8.20% in 2019, an increase of 4.1 percentage points[29]. - The net profit attributable to shareholders was -¥149,701,660.11, an increase of 53.63% year-on-year[44]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥325,697,299.85, an increase of 14.73% compared to the previous year[44]. Shareholder Actions - The company plans to distribute a cash dividend of 0.50 CNY per 10 shares, totaling 38,321,950.00 CNY, based on a total share capital of 766,439,000 shares[6]. - The cash dividend for 2020 represents -25.60% of the net profit attributable to ordinary shareholders, reflecting the company's financial challenges[105]. Regulatory and Compliance Issues - The company has faced regulatory scrutiny due to allegations of false disclosures in previous financial reports, leading to an investigation by the China Securities Regulatory Commission[10]. - The company emphasizes that forward-looking statements in the report do not constitute a commitment to investors, highlighting the associated investment risks[7]. - The company has not reported any non-standard audit opinions from the accounting firm[111]. - There were no significant changes in accounting policies or estimates that affected the financial statements[111]. - The company has not reported any funds being occupied or overdue receivables during the reporting period[111]. Market and Sales Performance - The company reported a total revenue of 4.944 billion CNY in 2020, down from 5.282 billion CNY in 2019, indicating a declining trend[29]. - The company experienced a quarterly revenue increase, with Q4 2020 revenue reaching 1.414 billion CNY, up from 1.374 billion CNY in Q3 2020[30]. - The company reported a significant increase in export business, contributing to the overall revenue growth trend observed in 2020[29]. - The company achieved a revenue of ¥4,944,067,835.28, a decrease of 6.39% compared to the previous year[44]. - The company’s revenue from the Chinese market decreased by 35.64%, while revenue from international markets increased by 16.17%[63]. Product Development and Innovation - The company launched over ten new products featuring core health technologies, including the Fresh refrigerator with independent three-system and full-temperature zone capabilities[45]. - The company aims to enhance brand recognition and preference for the Whirlpool brand, focusing on health-oriented product innovation and consumer engagement[90]. - The company is committed to integrating smart and health-focused features into its product offerings, aligning with consumer trends towards integrated and customized home solutions[87]. - The company plans to launch the high-end Aurora dishwasher in Q2 2021, featuring a stainless steel panel and a capacity of 15 sets, aiming to drive sales growth in the kitchen appliance sector[96]. Marketing and Brand Strategy - Brand awareness for Whirlpool increased threefold compared to 2018, with brand preference doubling[44]. - The company focused on enhancing its flagship brand and upgraded the "Whirlpool Healthy Home" brand concept to drive sales growth[44]. - The company plans to enhance marketing efforts and product R&D to drive domestic sales growth and improve overall performance in 2021[29]. - The company will continue to strengthen its marketing strategies by leveraging data-driven sales management and enhancing customer service experiences[95]. Operational Efficiency and Cost Management - The company is committed to improving operational efficiency and reducing costs amid rising raw material and labor costs, which pose significant challenges[102]. - The company aims to control costs through measures such as resource conservation, optimized supply chain partnerships, and implementation of World Class Manufacturing (WCM) projects[98]. - The company reported a significant increase in accounts receivable financing, rising by 520.21% to approximately ¥296.03 million, which is 4.22% of total assets[75]. - The company reported a decrease in gross margin for major products, with washing machines down 7.30 percentage points to 19.71%[60]. Environmental Responsibility - The company has implemented a comprehensive environmental management system, ensuring compliance with pollution discharge standards across its facilities[148]. - The company reported a total of 41.80 tons of COD discharge from the Nankang Industrial Park, which is within the permitted limits[148]. - The company has established a wastewater treatment facility at the Nankang Phase I site, operational since October 2010, with a normal operational status[149]. - The company’s environmental report is available on the Shanghai Stock Exchange website, highlighting its commitment to social responsibility[146]. Employee Management and Development - The total number of employees in the parent company is 2,012, while the total number of employees in major subsidiaries is 3,174, resulting in a combined total of 5,186 employees[197]. - The company has established a performance evaluation system to enhance internal efficiency and align individual performance with company performance[198]. - Whirlpool (China) launched a learning and development project with a professional consulting management agency to enhance organizational and personnel capabilities[199]. - The training programs aimed to cultivate high-performance teams and systematic thinking among managers[199]. Strategic Focus and Future Plans - The company is focusing on expanding its market presence in the Asia-Pacific region, leveraging the experience of its executives[180]. - The company has plans for strategic acquisitions to bolster its market position and product offerings[180]. - Whirlpool (China) will enhance local R&D and leverage global resources to boost export business, with a focus on cross-border e-commerce to capitalize on market trends[97].

2021 年第一季度报告 公司代码：600983 公司简称：惠而浦 惠而浦（中国）股份有限公司 2021 年第一季度报告 1 / 18 2021 年第一季度报告 一、 二、 11Í 四、 目录 | --- | |----------------| | | | 重要提示 . | | 公司基本情况 . | | 重要事项 . | | 附录 . | 2 / 18 2021 年第一季度报告 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人艾小明、主管会计工作负责人何卫权及会计机构负责人（会计主管人员）黄元保 证季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | --- | |-----------------------------------------------|------------------|--- ...

Financial Performance - Net profit attributable to shareholders was CNY -113,892,146.93, representing a decline of 64.56% year-on-year[18]. - Operating revenue for the year-to-date was CNY 3,530,303,298.18, down 13.62% from the same period last year[18]. - The weighted average return on net assets was -3.10%, a decrease of 1.4 percentage points year-on-year[18]. - Basic and diluted earnings per share were both CNY -0.15, reflecting a 64.56% decline compared to the previous year[20]. - The company anticipates continued operating losses for the remainder of the year, primarily due to a decline in domestic sales revenue from the Sanyo brand switch and increased expenses for brand channel development[30]. - The company's net profit is expected to decline significantly compared to the same period last year, with non-recurring gains and losses projected to decrease[30]. - Net profit for the first three quarters of 2020 was CNY 809,884,399.67, down from CNY 1,054,475,283.41 in the same period of 2019, representing a decline of approximately 23.2%[47]. - The net profit for the third quarter of 2020 was CNY 1,997,207.32, compared to a net loss of CNY 9,269,553.27 in the same quarter of 2019[53]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 6,743,867,990.04, a decrease of 11.06% compared to the end of the previous year[18]. - Total assets decreased to ¥6,743,867,990.04 from ¥7,582,845,817.74, reflecting a reduction in current assets[37]. - Total liabilities decreased to CNY 2,359,440,937.22 from CNY 3,011,782,510.13, indicating a reduction of approximately 21.7%[45]. - Current assets totaled CNY 3,292,652,521.65, down from CNY 4,249,440,470.15, reflecting a decline of about 22.5%[45]. - Non-current assets totaled CNY 2,378,485,743.92, an increase from CNY 2,318,630,252.07, indicating a growth of approximately 2.6%[45]. Cash Flow - The net cash flow from operating activities was CNY -988,877,415.61, a decrease of 53.92% compared to the previous year[18]. - The company's cash flow from operating activities showed a significant decline, indicating potential challenges in maintaining liquidity[70]. - Operating cash flow for the first three quarters of 2020 was -718,130,247.17, compared to -641,054,022.76 in the same period of 2019, indicating a decline in cash flow[76]. - Cash inflow from operating activities totaled 2,297,709,676.04 in 2020, down from 2,967,344,669.38 in 2019, representing a decrease of about 22.6%[76]. - The cash inflow from investment activities was CNY 4,877,882,726.30, an increase of 8.9% compared to CNY 4,479,413,687.49 in the same period of 2019[72]. - The net cash flow from investment activities improved significantly to 392,834,668.87 in 2020, compared to a negative cash flow of -498,891,406.80 in 2019[76]. - The cash outflow for purchasing goods and services was CNY 2,941,433,593.57, down from CNY 3,492,944,533.59 in the previous year[70]. Shareholder Information - The total number of shareholders at the end of the reporting period was 27,145[22]. - The largest shareholder, Whirlpool (China) Investment Co., Ltd., held 51.00% of the shares[22]. Operational Highlights - The company has not disclosed any new product developments or market expansion strategies in this report[18]. - The company plans to focus on new product development and market expansion strategies to enhance future performance[46]. Changes in Financial Metrics - Accounts receivable financing increased significantly to ¥290,720,459.03, a growth of 509% compared to the previous period's ¥47,730,651.20[27]. - Short-term borrowings decreased to ¥0, a decline of 100% from ¥10,000,000.00 in the previous period due to the termination of recourse accounts receivable factoring[27]. - Contract liabilities reached ¥99,598,370.33, reflecting a 100% increase as a result of reclassification from advance receipts under new accounting standards[27]. - Financial expenses rose to ¥36,800,532.24, a 173% increase compared to the previous period, primarily due to significant changes in exchange gains and losses[27]. - Investment income increased by 76% to ¥29,615,579.15 from ¥16,817,094.68 in the previous period, attributed to changes in interest rates[27]. - Fair value changes resulted in a gain of ¥50,664,980.69, a 244% increase compared to a loss of ¥35,199,123.69 in the previous period, also linked to interest rate fluctuations[27]. - Asset impairment losses amounted to -¥25,601,347.47, a 232% increase from ¥19,336,781.04 in the previous period, due to the depreciation of Sanyo's damaged machines[27].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥2,156,408,660.92, a decrease of 19.90% compared to ¥2,692,122,554.22 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was -¥115,889,354.26, representing a decrease of 93.35% compared to -¥59,939,074.19 in the previous year[20]. - The net cash flow from operating activities was -¥738,565,374.21, a decline of 29.53% from -¥570,170,382.58 in the same period last year[20]. - The total assets at the end of the reporting period were ¥6,803,171,240.20, down 10.28% from ¥7,582,845,817.74 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company decreased by 4.10% to ¥3,600,507,645.65 from ¥3,754,626,617.79 at the end of the previous year[20]. - The basic earnings per share for the first half of 2020 was -¥0.15, a decrease of 93.35% compared to -¥0.08 in the same period last year[20]. - The weighted average return on net assets was -3.15%, a decrease of 1.68 percentage points from -1.47% in the previous year[20]. - The company reported a total comprehensive loss of CNY 115,797,022.14 for the first half of 2020, compared to a loss of CNY 59,929,574.84 in the prior year[130]. - The total profit (loss) before tax was -240,729,852.06 RMB, compared to -143,670,798.24 RMB in the previous year, indicating a worsening financial performance[136]. Market and Sales Performance - The company reported a significant impact on domestic sales revenue due to the COVID-19 pandemic, leading to the decline in net profit[21]. - In Q2 2020, revenue significantly increased to 1.274 billion yuan, representing a quarter-on-quarter growth of 44%[36]. - The company reported a net profit attributable to shareholders of -116 million yuan, a decline of 93% compared to the same period last year, but a quarter-on-quarter increase of 92%[36]. - The export revenue for the first half of 2020 reached 1.406 billion yuan, with a quarter-on-quarter growth of 20%[36]. - The domestic market sales scale of the Chinese home appliance industry in the first half of 2020 was 336.5 billion yuan, a year-on-year decrease of 18.4%[35]. - Whirlpool's washing machine offline sales increased by 12% year-on-year in the first half of 2020, with a market share growth of 1.3%[41]. - The company's online sales for ice washing products reached 56.98 million, representing a 29% year-on-year growth, making it the fastest-growing foreign brand in the industry[41]. Innovation and Development - The company is focusing on health technology innovation, aligning with the increasing consumer demand for health-oriented home appliances[36]. - The company has integrated its R&D, quality manufacturing, and sales teams to enhance its innovation capabilities and market responsiveness[28]. - The company has established a comprehensive independent R&D, design, procurement, production, and sales system[29]. - The company is actively responding to the "Made in China 2025" strategy and has completed investments in its headquarters, global R&D center, design center, and smart factory[32]. - The company launched a full line of "health and sterilization product family" during the April product launch event, achieving sales of CNY 29.52 million from the event[51]. Risk Factors - The company has identified market risk, cost risk, and management risk as major risk factors in its operations[7]. - The company anticipates a significant change in cumulative net profit from the beginning of the year to the end of the next reporting period due to a deteriorating operating environment, insufficient market demand, and intensified competition[63]. - The company faces market demand risks, particularly in the kitchen and small appliance sectors, where consumer habits need to be cultivated, potentially leading to profit losses and wasted sales opportunities[64]. - The company is under pressure from rising costs, including fluctuations in raw material prices, increasing labor costs, and growing logistics expenses, which could impact profitability[64]. Environmental Compliance - The company reported a total wastewater discharge of 87,551.84 tons from the Nankang Industrial Park in the first half of the year, with a chemical oxygen demand average concentration of 198.5 mg/L, which is below the permitted limits[86]. - The wastewater discharge from the Whirlpool Industrial Park was 50,159.2 tons, with a chemical oxygen demand average concentration of 91.5 mg/L, also below the permitted limits[86]. - The company has established emergency response plans for environmental incidents, ensuring preparedness for potential environmental hazards[94]. - The company conducts quarterly comprehensive monitoring of its emissions through qualified external units, ensuring compliance with national standards[97]. Shareholder and Capital Structure - The total number of common shareholders at the end of the reporting period was 25,529[101]. - The top shareholder, Whirlpool (China) Investment Co., held 390,884,200 shares, representing 51.00% of the total shares[101]. - The second-largest shareholder, Hefei State-owned Assets Investment Co., held 178,854,400 shares, accounting for 23.34%[101]. - There have been no changes in the company's total share capital or share structure during the reporting period[99]. - The company did not propose any profit distribution or capital reserve transfer during the 2019 annual shareholders' meeting, with no dividends or bonus shares issued[70]. Financial Management - The company implemented cost control measures, resulting in a 32.48% reduction in sales expenses and a 14.80% decrease in operating costs[59]. - The company's cash and cash equivalents decreased to approximately ¥990.78 million from ¥1,519.44 million year-over-year[111]. - Total current assets decreased to approximately ¥4.68 billion from ¥5.51 billion year-over-year[111]. - The company incurred a credit impairment loss of -3,425,425.00 RMB, contributing to the overall financial strain[136]. - The cash flow from financing activities resulted in a net inflow of 9,446,333.33 RMB, contrasting with a net outflow of -70,284,183.58 RMB in the same period last year, showing improved financing conditions[140].

[Important Notice](index=3&type=section&id=Important%20Notice) [Guarantee of Content Authenticity, Accuracy, and Completeness](index=3&type=section&id=1.1%20Company%20Board%20of%20Directors,%20Supervisory%20Board,%20Directors,%20Supervisors,%20and%20Senior%20Management%20Guarantee) Management guarantees the report's authenticity and completeness, assuming legal responsibility; the report is unaudited - Management guarantees the authenticity, accuracy, and completeness of the quarterly report content and assumes corresponding legal responsibilities[8](index=8&type=chunk) - The company's Q1 2020 report is unaudited[11](index=11&type=chunk) [Company Basic Information](index=3&type=section&id=II.%20Company%20Basic%20Information) [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) Q1 2020 saw significant performance decline, with revenue down 39.54% and net profit turning to a CNY 107 million loss Q1 2020 Key Financial Data | Indicator | Current Period | Prior Year Same Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 882,033,198.86 | 1,458,794,696.45 | -39.54% | | Net Profit Attributable to Shareholders (CNY) | -107,334,040.23 | -15,272,896.69 | -602.77% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | -108,139,088.60 | -37,624,836.52 | -187.41% | | Net Cash Flow from Operating Activities (CNY) | -553,563,037.48 | -336,616,186.05 | -64.45% | | Basic Earnings Per Share (CNY/share) | -0.14 | -0.02 | -600.00% | | Weighted Average Return on Net Assets (%) | -2.87% | -0.37% | Decrease of 2.5 percentage points | | **Indicator** | **End of Current Period** | **End of Prior Year** | **Period-end vs. Prior Year-end Change (%)** | | Total Assets (CNY) | 7,012,701,596.55 | 7,582,845,817.74 | -7.52% | | Net Assets Attributable to Shareholders (CNY) | 3,731,566,908.18 | 3,754,626,617.79 | -0.61% | Q1 2020 Non-recurring Gains and Losses | Item | Current Period Amount (CNY) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -171,290.69 | | | Government Grants Included in Current P&L | 12,638,034.41 | | | Fair Value Changes in Trading Financial Assets/Liabilities | -11,955,864.45 | | | Other Non-operating Income/Expenses | -94,476.33 | | | Income Tax Impact | 388,645.42 | | | **Total** | **805,048.36** | | [Shareholder Holding Information](index=4&type=section&id=2.2%20Total%20Number%20of%20Shareholders,%20Top%20Ten%20Shareholders,%20and%20Top%20Ten%20Circulating%20Shareholders%20(or%20Unrestricted%20Shareholders)%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of period-end, the company had 32,014 shareholders, with Whirlpool (China) Investment holding 51.00% - As of the end of the reporting period, the company had a total of **32,014** shareholders[14](index=14&type=chunk) Top Ten Shareholder Holdings | Shareholder Name | Number of Shares Held (shares) | Holding Percentage (%) | | :--- | :--- | :--- | | Whirlpool (China) Investment Co., Ltd. | 390,884,200 | 51.00 | | Hefei State-owned Assets Holding Co., Ltd. | 178,854,400 | 23.34 | | China Securities Finance Corporation Limited | 16,308,587 | 2.13 | | Dongguan Donglian Investment Co., Ltd. | 7,000,000 | 0.91 | | Central Huijin Asset Management Co., Ltd. | 6,090,300 | 0.79 | [Preferred Shareholder Information](index=5&type=section&id=2.3%20Total%20Number%20of%20Preferred%20Shareholders,%20Top%20Ten%20Preferred%20Shareholders,%20and%20Top%20Ten%20Unrestricted%20Preferred%20Shareholders%20as%20of%20the%20End%20of%20the%20Reporting%20Period) The company had no preferred shareholders at the end of the reporting period - The company had no preferred shareholders during this reporting period[17](index=17&type=chunk) [Significant Events](index=5&type=section&id=III.%20Significant%20Events) [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=5&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20the%20Company's%20Key%20Financial%20Statement%20Items%20and%20Financial%20Indicators) Multiple financial items changed significantly, including a 39% revenue drop and a 170% decrease in financial expenses Significant Financial Statement Item Changes and Reasons | Item | Change Rate (%) | Reason Explanation | | :--- | :--- | :--- | | **Income Statement Items** | | | | Operating Revenue | -39% | Revenue decline due to external environment | | Financial Expenses | -170% | Impact of interest rate changes and exchange gains/losses | | Fair Value Change Gains | -307% | Impact of hedging activities | | Asset Impairment Losses | -54.07% | Increased bad debt provisions due to sales decline | | **Cash Flow Statement Items** | | | | Net Cash Flow from Operating Activities | -64% | Decreased sales collections due to sales decline | | Net Cash Flow from Investing Activities | 133% | Increased proceeds from matured wealth management products | | Net Cash Flow from Financing Activities | 114% | Paid factoring receivables for export sales in 2019 | [Performance Forecast and Risk Warning](index=6&type=section&id=3.4%20Warning%20and%20Explanation%20Regarding%20Potential%20Cumulative%20Net%20Loss%20or%20Significant%20Change%20Compared%20to%20the%20Same%20Period%20Last%20Year%20from%20Year-Beginning%20to%20the%20End%20of%20the%20Next%20Reporting%20Period) The company forecasts potential cumulative net loss due to deteriorating operating environment and market uncertainties - The company issued a performance warning, indicating that future net profit may continue to be a loss or experience significant changes due to deteriorating operating environment, insufficient market demand, intensified competition, and uncertainty in international orders[21](index=21&type=chunk) [Appendix](index=7&type=section&id=IV.%20Appendix) [Financial Statements](index=7&type=section&id=4.1%20Financial%20Statements) This appendix contains the company's unaudited consolidated and parent company financial statements for Q1 2020 [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2020, consolidated total assets were CNY 7.01 billion, down 7.52%, with liabilities at CNY 3.28 billion Key Consolidated Balance Sheet Items (Unit: CNY) | Item | 2020-03-31 | 2019-12-31 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | 1,095,057,155.26 | 1,519,440,032.55 | | Trading Financial Assets | 1,452,917,935.21 | 1,650,847,600.41 | | Accounts Receivable | 1,219,009,955.14 | 1,282,396,191.94 | | Inventories | 823,489,447.26 | 831,603,773.34 | | **Total Assets** | **7,012,701,596.55** | **7,582,845,817.74** | | **Liabilities** | | | | Short-term Borrowings | 20,000,000.00 | 10,000,000.00 | | Notes Payable | 1,348,860,709.23 | 1,506,655,892.55 | | Accounts Payable | 1,241,206,375.55 | 1,577,941,451.69 | | **Total Liabilities** | **3,281,134,688.37** | **3,828,219,199.95** | | **Shareholders' Equity** | | | | Total Equity Attributable to Parent Company Owners | 3,731,566,908.18 | 3,754,626,617.79 | | **Total Shareholders' Equity** | **3,731,566,908.18** | **3,754,626,617.79** | [Parent Company Balance Sheet](index=9&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2020, parent company total assets were CNY 6.01 billion, down 8.5%, with liabilities at CNY 2.53 billion Key Parent Company Balance Sheet Items (Unit: CNY) | Item | 2020-03-31 | 2019-12-31 | | :--- | :--- | :--- | | **Total Assets** | **6,009,707,627.89** | **6,568,070,722.22** | | **Total Liabilities** | **2,524,531,595.19** | **3,011,782,510.13** | | **Total Shareholders' Equity** | **3,485,176,032.70** | **3,556,288,212.09** | [Consolidated Income Statement](index=11&type=section&id=Consolidated%20Income%20Statement) Q1 2020 operating revenue was CNY 882 million, down 39.5%, with net profit at a CNY 107 million loss Key Consolidated Income Statement Items (Unit: CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | Total Operating Revenue | 882,033,198.86 | 1,458,794,696.45 | | Total Operating Costs | 995,787,809.66 | 1,492,912,106.61 | | Operating Profit | -124,711,833.24 | -14,095,900.90 | | Total Profit | -125,011,835.81 | -13,679,581.69 | | Net Profit | -107,334,040.23 | -15,272,896.69 | | Net Profit Attributable to Parent Company Shareholders | -107,334,040.23 | -15,272,896.69 | | Basic Earnings Per Share (CNY/share) | -0.14 | -0.02 | [Parent Company Income Statement](index=14&type=section&id=Parent%20Company%20Income%20Statement) Q1 2020 parent company operating revenue was CNY 596 million, down 46%, with net profit at a CNY 129 million loss Key Parent Company Income Statement Items (Unit: CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | Operating Revenue | 596,355,570.03 | 1,102,862,739.35 | | Operating Profit | -152,947,700.12 | -52,239,914.58 | | Total Profit | -153,079,198.00 | -51,560,833.14 | | Net Profit | -128,545,631.15 | -41,318,309.90 | [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) Q1 2020 net cash flow from operating activities was -CNY 554 million, with investing activities turning positive Key Consolidated Cash Flow Statement Items (Unit: CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -553,563,037.48 | -336,616,186.05 | | Net Cash Flow from Investing Activities | 122,001,371.74 | -365,289,482.99 | | Net Cash Flow from Financing Activities | 9,446,333.33 | -67,658,996.89 | | Net Increase in Cash and Cash Equivalents | -424,382,877.29 | -798,280,357.85 | | Cash and Cash Equivalents at Period-End | 1,095,057,155.26 | 1,732,075,799.28 | [Parent Company Cash Flow Statement](index=17&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) Q1 2020 parent company net cash flow from operating activities was -CNY 527 million, with investing activities positive Key Parent Company Cash Flow Statement Items (Unit: CNY) | Item | 2020 Q1 | 2019 Q1 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -527,148,552.16 | -338,206,557.25 | | Net Cash Flow from Investing Activities | 133,359,490.03 | -358,810,175.95 | | Net Cash Flow from Financing Activities | 9,446,333.33 | -70,701,846.68 | | Net Increase in Cash and Cash Equivalents | -385,067,635.10 | -785,432,819.40 | | Cash and Cash Equivalents at Period-End | 322,853,120.85 | 930,684,721.67 |

Financial Performance - In 2019, the company reported a net profit of -322,839,167.01 RMB, a decrease of 223.30% compared to the previous year[4]. - The total operating revenue for 2019 was 5,281,658,055.31 RMB, reflecting a decline of 15.97% from 2018[21]. - The basic earnings per share for 2019 was -0.42 RMB, a drop of 223.53% compared to 0.34 RMB in 2018[22]. - The weighted average return on equity was -8.21% in 2019, down 14.75 percentage points from the previous year[22]. - The net profit attributable to shareholders for Q4 2019 was -¥253,630,539.55, contributing to an annual net loss of -¥322,839,176.01[25]. - The company reported a net cash flow from operating activities of -¥109,448,371.36, a significant decline of 262.11% compared to the previous year[65]. - The company achieved a total of 1,800,000,000 in structured deposits with a yield of 3.65% as of December 2019[107]. Assets and Liabilities - The company's total assets decreased by 8.58% year-on-year, amounting to 7,582,845,817.74 RMB at the end of 2019[21]. - The company's net assets attributable to shareholders decreased by 8.77% to 3,754,626,617.79 RMB at the end of 2019[21]. - The total liabilities decreased to CNY 3,828,219,199.95 in 2019 from CNY 4,178,687,561.70 in 2018, a reduction of about 8.4%[179]. - The total equity attributable to shareholders decreased to CNY 3,754,626,617.79 in 2019 from CNY 4,115,710,531.27 in 2018, reflecting a decline of approximately 8.8%[179]. Revenue and Costs - Total revenue for 2019 was ¥5,281,658,055.31, a decrease of 15.97% from ¥6,285,633,179.42 in 2018[186]. - Total operating costs for 2019 were ¥5,515,950,283.94, down from ¥6,116,943,035.29 in 2018, reflecting a reduction of 9.85%[186]. - The company's revenue from home appliance manufacturing reached ¥5,281,658,055.31, a decrease of 13.53% compared to the previous year, with a gross margin of 23.67%[56]. Market and Industry Trends - In 2019, the home appliance industry experienced its first negative growth since 2013, with overall retail consumption demand weak and market performance flat[35]. - The company faced challenges with a 3.9% decline in the overall Chinese home appliance market, marking the first negative growth since 2013[47]. - The kitchen appliance segment saw a year-on-year decline of 6.6% due to sluggish demand in the real estate market[47]. Strategic Initiatives - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares, totaling 38,321,950.00 RMB[4]. - Whirlpool (China) focused on smart technology research and high-quality product manufacturing, enhancing brand and product strength to capture market demand[35]. - The company aims to expand its export business by leveraging Whirlpool's global resources and enhancing local manufacturing cost competitiveness, targeting growth in the Asia-Pacific region to mitigate potential declines due to the pandemic[82]. Research and Development - Total R&D expenditure was ¥150,681,562.90, accounting for 2.85% of total revenue, with 362 R&D personnel, representing 14% of the total workforce[64]. - The company launched a series of core health smart technology products, including the "Emperor" washing machine and "Frozen Age PRO" refrigerator, showcasing innovative features[37]. Environmental Responsibility - The company discharged a total of 223,785.6 tons of wastewater from the Nangang Industrial Park in the reporting period, with a chemical oxygen demand (COD) average concentration of 207.1 mg/L, which is below the discharge permit limits[111]. - The company has invested in advanced pollution control technologies, including activated carbon adsorption and biological treatment processes, to enhance its environmental performance[112]. Governance and Compliance - The company has a clear governance structure with independent directors and a supervisory board, ensuring compliance and oversight[132]. - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[139]. - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2019[163].

Financial Performance - Net profit attributable to shareholders was CNY -69,208,627.46, a decline of 119.53% year-on-year[17]. - Operating revenue for the first nine months was CNY 4,086,821,951.82, down 11.93% from the same period last year[17]. - The net cash flow from operating activities was CNY -642,445,284.21, a decrease of 15.89% year-on-year[17]. - Basic earnings per share were CNY -0.09, a decline of 119.56% compared to CNY 0.46 in the previous year[17]. - The net profit for the first three quarters of 2019 was RMB 1,312,855,982.28, down from RMB 1,502,928,644.07 in the same period of 2018, reflecting a decline of approximately 12.6%[46]. - The company reported a total operating profit of -43,581,892.24 CNY for Q3 2019, compared to 3,883,858.12 CNY in Q3 2018, marking a decline of approximately 1,202.5%[64]. - The company experienced a net loss of -5,181,666.05 CNY in total profit for Q3 2019, contrasting with a profit of 77,631,515.62 CNY in Q3 2018, representing a decline of approximately 106.7%[64]. - Total comprehensive income for Q3 2019 was -9,280,681.63 CNY, down from 59,903,802.38 CNY in Q3 2018, indicating a decrease of about 115.5%[60]. Assets and Liabilities - Total assets decreased by 9.53% to CNY 7,504,087,283.73 compared to the end of the previous year[17]. - The company's total liabilities decreased to ¥3,495,908,958.93 from ¥4,178,687,561.70, a decline of 16.4% year-over-year[38]. - Total liabilities were RMB 2,776,180,102.24, down from RMB 3,308,168,515.56, reflecting a reduction of about 16.1%[44]. - The company's total equity attributable to shareholders decreased to ¥4,008,178,324.80 from ¥4,115,710,531.27, a decline of 2.6% year-over-year[38]. - The company reported a total asset value of CNY 7,312,910,088.31, with non-current assets at CNY 3,410,979,018.85[90]. - Total liabilities amounted to CNY 4,178,687,561.70, with non-current liabilities totaling CNY 96,331,755.88[87]. Cash Flow - The company's cash and cash equivalents decreased to ¥1,315,127,742.39 from ¥2,530,356,157.13, representing a decline of 48.0% year-over-year[33]. - Cash flow from operating activities for the first three quarters of 2019 was negative at approximately CNY -642.45 million, compared to CNY -554.35 million in the same period of 2018[72]. - Cash flow from investment activities showed a net outflow of approximately CNY -516.71 million in 2019, contrasting with a net inflow of CNY 337.97 million in 2018[75]. - The ending cash and cash equivalents balance decreased to 517,700,620.13 from 1,657,340,900.17, a decline of approximately 68.8%[77]. - The company reported a total cash outflow of 3,608,398,692.14 from operating activities, down from 4,066,775,140.17, showing improved cash management[77]. Revenue and Expenses - The company's revenue from advance receipts decreased by 56.15% to ¥41,144,661.02 from ¥93,826,505.71, attributed to changes in credit policy[36]. - The company incurred operating expenses of approximately CNY 4.87 billion, compared to CNY 5.07 billion in the same period of 2018, showing a reduction of about 3.5%[72]. - The gross profit for Q3 2019 was RMB 1,116,965,801.72, a decrease of 4.1% compared to RMB 1,165,149,929.27 in Q3 2018[49]. - Research and development expenses for Q3 2019 were RMB 34,549,171.60, a decrease of 22.7% from RMB 44,678,903.57 in Q3 2018[49]. - The company's investment income dropped by 44.94% to ¥16,817,094.68 from ¥30,543,434.29, primarily due to a decrease in financial management income[36]. Shareholder Information - The total number of shareholders was 22,674, with the largest shareholder holding 51.00% of the shares[21]. - The company's total equity decreased to RMB 3,814,668,910.96 from RMB 4,004,741,572.75, indicating a decline of approximately 4.7%[46]. Future Outlook - The company expects to incur operating losses for the remainder of the year due to a decline in domestic sales revenue and increased expenses for brand channel development[36]. - Future outlook includes potential strategies for market expansion and new product development to improve financial performance[72].