Corp., Ltd.Notes To The Financial Statements For The Year Ended 31 December 2015 (All amounts in 1000 RMB unless otherwise stated)1. General InformationXXXXCorp., Ltd. (“the Company”) is a limited liability company incorporated in XX city of the Peoples Republic of China in The Company has an approved operating period of XXXX years. The registered capital is RMB 100,000,000.The parent company of the Company is Qingdao Haier Investment and Development Co. Ltd.The approved scope of business of the Company and its subsidiaries (together “the Group”) includes: Processing with supply material, compensation trading; Import and export product; Household appliances manufacturing, sales, warehousing, agent.Business License for Enterprise Legal Person is 370212801357.Registered address is No.1 Haier Road, Haier Industrial Park, Qingdao city, Shandong Province, China.Legal Representative is Mianmian Yang.Governing structure and organizing structure: Practice the system of the director-general responsibility under the leadership of the board of directors (BOD).These financial statements were authorised for issue by the Companys responsible persons on XX XX 2015.2. Basis of PreparationThe financial statement was prepared on the basis of sustainable operation. According to the actual transactions and items, it was prepared in accordance with the enterprises accounting standards issued by Ministry部门（财政部） of Finance based on the following significant accounting policy and accounting estimate.3. Statement of Compliance with the Accounting Standards for Business EnterprisesThe financial statements of the Company for the year ended 31 December 2015 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the financial position of the Consolidated and the Company as of 31 December 2015 and of their financial performance, cash flows and other information for the year then ended.4. Summary of Significant Accounting Policies and Accounting Estimates(1) Accounting yearThe Companys accounting year starts on 1 January and ends on 31 December.(2) Recording currencyThe recording currency is Renminbi (RMB).(3) Foreign currency translation(a) Foreign currency transactionsForeign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.(b) Translation of foreign currency financial statementsThe asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance sheet date. Among the owners equity items, the items other than “undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot exchange rates of the transaction dates. The differences arising from the above translation are presented separately in the owners equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.(4) Cash and cash equivalentsCash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.(5) Financial assetsFinancial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on the Groups intention and ability to hold the financial assets.(a) Financial assets at fair value through profit or lossFinancial assets at fair value through profit or loss include financial assets held for the purpose of selling in the short term. They are presented as financial assets held for trading on the balance sheet.(b) ReceivablesReceivables, including ac