The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Midea Group Co., Ltd.
Interim Report for the Third Quarter 2016
October 2016
1
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Section I Important Notes, Contents and Definitions
1.1 The Board of Directors, Board of Supervisors, directors, supervisors and senior
management of Midea Group Co., Ltd. (hereinafter referred to as the “Company”)
hereby guarantee that the information presented in this Report is truthful, accurate
and complete, and shall together be jointly and severally liable for any false records,
misleading statements or material omissions in this Report.
1.2 All directors of the Company attended the Board meeting for reviewing this
Report.
1.3 This Report has not been audited by a CPAs firm.
1.4 Mr. Fang Hongbo, chairman of the Board and president of the Company and Mr.
Xiao Mingguang, responsible person for the Company’s financial affairs have
represented and warranted that the financial statements carried in this Report are
truthful, accurate and complete.
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Section II Financial Highlights & Changes in Shareholders
I Key accounting data and financial indicators
Does the Company perform a retroactive adjustment to or restatement of accounting data of previous
years due to changes in accounting policy or correction of any accounting error?
□ Yes √ No
30 Sept. 2016 31 Dec. 2015 YoY Change (%)
Total assets (RMB'000) 162,991,610 128,841,935 26.51%
Net assets attributable to the
shareholders of the Company 58,385,178 49,201,852 18.66%
(RMB'000)
Jul.-Sept. 2016 YoY Change (%) Jan.-Sept. 2016 YoY Change (%)
Operating revenues (RMB'000) 38,856,130 34.61% 116,378,417 4.49%
Net profits attributable to the
shareholders of the Company 3,311,500 23.20% 12,807,993 16.31%
(RMB'000)
Net profits attributable to the
shareholders of the Company
3,131,646 61.21% 12,231,890 30.47%
excluding non-recurring gains and
losses (RMB'000)
Net cash flows from operating
-- -- 19,037,495 5.94%
activities (RMB'000)
Basic earnings per share
0.51 21.43% 2.00 15.61%
(RMB/share)
Diluted earnings per share
0.51 21.43% 1.99 15.70%
(RMB/share)
Weighted average ROE (%) 5.82% 0.07% 23.76% -1.70%
Note: On June 30, 2016, Midea completed the transaction to acquire 80.1% stake in Toshiba’s home appliances business, Toshiba
Lifestyle Products & Services Corporation (“TLSC”). Due to the consolidation of TLSC, the 2016Q3 results include TLSC’s revenue of
3,873,064,000 RMB and Net profits attributable to the shareholders of the Company of 19,702,000 RMB.
Total share capital of the Company on the last trading session before the disclosure of this Report:
Total share capital of the Company on the last trading
6,450,774,771
session before the disclosure of this Report (share)
Fully diluted earnings per share based on the latest 1.99
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
share capital above (RMB/share)
Items and amounts of non-recurring gains and losses
√ Applicable □ N/A
Unit: RMB'000
Item Amount Note
Gains or losses on disposal of non-current assets (including
-22,992
the offset asset impairment provisions)
Government grants charged to the gains/losses for the
Reporting Period (except for the government grants closely
related to the business of the Company and given at a fixed 1,042,565
quota or amount in accordance with nationally uniform
standards)
Gains or losses on the changes in the fair value of
held-for-trading financial assets and liabilities, as well as
investment gains or losses on the disposal of held-for-trading
-605,843
financial assets and liabilities and available-for-sale financial
assets, except for the effectively hedging business related to
normal business operations of the Company
Non-operating incomes and expense other than the above 87,213
Less: Income tax effects 39,586
Minority interests effects (after tax) -114,746
Total 576,103 --
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the
definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Non-recurring Gains and Losses, or classifies any non-recurring
gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item:
□ Applicable √ N/A
No such cases in the Reporting Period.
II Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common
shareholders at the period-end
Total number of ordinary shareholders at Total number of preference shareholders with
106,167 0
the end of the Reporting Period resumed voting rights at the period-end (if any)
Shareholdings of the top 10 ordinary shareholders
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Shareholdi Number of Pledged or frozen shares
Total ordinary
Nature of ng restricted
Name of shareholder shares held at Status of Number of
shareholder percentage ordinary shares
the period-end shares shares
(%) held
Domestic
Midea Holding Co., Ltd. 34.79% 2,244,375,000 Pledged 854,955,000
corporation
China Securities Finance Domestic
2.85% 184,076,580
Corporation Limited corporation
Domestic
Fang Hongbo 2.12% 136,990,492 102,742,869
individual
Hillhouse Capital
Foreign
Management Limited－ 1.77% 113,891,138
corporation
HCM China Fund
Ningbo Maysun Equity
Domestic
Investment Partnership 1.74% 112,500,000
corporation
(limited partnership)
Domestic
Huang Jian 1.71% 110,000,000
individual
Guotai Junan - Constrution Foreign
1.57% 101,283,468
Bank - Shanghai HSBC corporation
Domestic
Yuan Liqun 1.41% 90,750,000 90,750,000
individual
Tianjin CDH Jiatai Equity
Domestic
Investment Partnership 1.36% 87,777,826
corporation
(limited partnership)
Domestic
Xiaomi Technology Co., Ltd 1.28% 82,500,000 82,500,000
corporation
Shareholdings of the top 10 non-restricted ordinary shareholders
Number of non-restricted Type of shares
Name of shareholder ordinary shares held at the
Type Number
period-end
Midea Holding Co., Ltd. 2,244,375,000 RMB ordinary share 2,244,375,000
China Securities Finance Corporation Limited 184,076,580 Ditto 184,076,580
Hillhouse Capital Management Limited－HCM
113,891,138 Ditto 113,891,138
China Fund
Ningbo Maysun Equity Investment Partnership
112,500,000 Ditto 112,500,000
(limited partnership)
Huang Jian 110,000,000 Ditto 110,000,000
Guotai Junan - Constrution Bank - Shanghai 101,283,468 Ditto 101,283,468
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
HSBC
Tianjin CDH Jiatai Equity Investment
87,777,826 Ditto 87,777,826
Partnership (limited partnership)
Central Huijin Asset Management Co., Ltd. 78,474,900 Ditto 78,474,900
He Xiangjian 77,334,548 Ditto 77,334,548
Huang Xiaoming 77,085,099 Ditto 77,085,099
Related-parties or acting-in-concert parties
among the top ten non-restricted ordinary
The controling Shareholer of Midea Holding Co., Ltd is Mr. He
shareholders and between the top ten
Xiangjian, they are acting-in-concert parties.
non-restricted ordinary shareholders and the
top ten ordinary shareholders
Explanation on the top 10 ordinary
shareholders participating in securities margin N/A
trading (if any)
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company carry out any agreed buy-back in the Report Period?
□ Yes √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top ten preference
shareholders at the period-end
□ Applicable √ N/A
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Section III Significant Events
I 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
30 Sept. 30 Sept. YoY Change
Balance sheet items Main reasons for the changes
2016 2015 (%)
Advances to suppliers 2,106,914 988,625 113.12% Mainly due to purchase of materials
Mainly due to operational changes of
Loans and advances 11,940,979 6,608,705 80.69%
the finance company
Available-for-sale financial Mainly due to the share purchase of
5,097,575 3,289,954 54.94%
assets Germany company KUKA
Mainly due to appraisal of intangible
Intangible Asset 5,986,226 3,392,402 76.46% assets resulting from acquisition of
Toshiba home appliance business
Mainly due to acquisition of Toshiba
Goodwill 4,862,150 2,393,066 103.18%
home appliance business
Mainly due to purchase of wealth
Other non-current assets 4,853,722 669,730 624.73% management products with over one
year maturity period
Taxes payable 2,798,083 1,607,181 74.10% Mainly due to increase of VAT & CIT
Interests payable 48,749 9,343 421.77% Mainly due to increase of interests
Mainly due to increase of payment of
Dividends payable 196,694 118,851 65.50%
dividend of subsidiaries
Mainly due to acquisition of Toshiba
Other accounts payable 2,229,265 1,139,306 95.67%
home appliance business
Long-term borrowings 2,110,281 90,061 2,243.17% Mainly due to increase of borrowings
Debentures payable 4,617,408 0 100.00% Mainly due to issuance of debentures
Mainly due to acquisition of Toshiba
Long-term payroll payable 1,385,592 0 100.00%
home appliance business
Mainly due to appraisal related to the
Deferred income tax liabilities 1,675,765 40,464 4,041.37% acquisition of Toshiba home appliance
business
Mainly due to acquisition of Toshiba
Other non-current liabilities 867,399 157,194 451.80%
home appliance business
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Jan.-Sept. Jan.-Sept. YoY Change
Income statement items Main reasons for the changes
2016 2015 (%)
Mainly due to increase of interests
Financial expenses -913,165 100,875 -1,005.24%
income and depreciation of RMB
Mainly due to yoy increase of change
Asset impairment loss 211,833 87,844 141.15%
in accounts receivable
Mainly due to changes in the fair value
Gains on fair value changes -488,089 45,766 -1,166.49%
of derivative financial instruments
Cash flow statement Jan.-Sept. Jan.-Sept. YoY Change
Main reasons for the changes
items 2016 2015 (%)
Net cash flows from investing Mainly due to increase of wealth
-17,770,441 -9,849,714 80.42%
activities management and structured deposits
Net cash flows from financing
1,992,708 -6,899,879 -128.88% Mainly due to increase of borrowings
activities
II Progress, influence and solutions of significant events
√ Applicable □ N/A
The Proposal Regarding Tender Offer of KUKA AG was reviewed and approved at the 11th and 12th
Meeting of the Second Board of Directors and at the Third Extraordinary General Meeting of
Shareholders for 2016. The Company, through its subsidiary MECCA International (BVI) Limited, has
launched a voluntary public tender offer for all shares in KUKA AG (KUKA). It is offering EUR 115 in cash
in exchange for each KUKA share. The acquisition shall be financed by the Company’s own cash and
syndicated loans.
By the end of the additional acceptance period on August 4th, 2016, 80.04% of KUKA shares were
tendered. The total number of KUKA shares for which the takeover offer has been accepted during the
offer period plus the 13.51% KUKA shares indirectly held by Midea prior to the takeover offer, result in
94.55% of the issued share capital and the existing voting rights of KUKA.
By August 20th, 2016, one of the Completion Conditions of the tender offer, “BMWi has not
prohibited the direct or indirect acquisition of voting rights in KUKA”, has been fulfilled.
Up to the disclosure of this report, all required merger control procedures in the countries related to
this transaction, i.e. EU, US, China, Russa, Brazil and Mexico, have been cleared.
This transaction is still subject to approvals by CFIUS and DDTC from the US which shall be
obtained before March 31st, 2017.
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
III Undertakings made by the Company, its shareholders, actual controllers, acquirers, directors, supervisors, senior
management staff or other related parties fulfilled in the Reporting Period or ongoing at the Reporting Period
√ Applicable □ N/A
Undertaking Type of Undertakin
Undertaking Details of undertaking Term Particulars on the performance
giver undertaking g date
1. Midea Holding and He Xiangjian have undertaken as follows:
Within 36 months from the listing date of Midea Group's stocks, 36 months from
Controlling
they will neither transfer or entrust others to manage their the day of Midea
shareholder, 1. There has been no violation of this
Share lock-up directly and indirectly held shares of Midea Group issued prior 2013.03.28 Group’s listing
actual undertaking.
to this issuance, nor sell them to Midea Group. If they break the (2013.09.18-201
controller
above undertaking, they will assume all liabilities arising 6.09.18)
therefrom.
Undertaking
2. Midea Holding and He Xiangjian have undertaken as follows:
made in
He Xiangjian, Midea Holding and their controlled enterprises
offering
will remain independent from Midea Group in respect of
documents
Controlling personnel, finance, assets, business and institutions, in
or
shareholder, Maintenance of accordance with relevant laws and regulations and regulatory 2. There has been no violation of this
shareholding 2013.03.28 Long-standing
actual independence documents. They will faithfully fulfill the above undertaking, and undertaking.
alternation
controller assume the corresponding legal liability. If they fail to fulfill their
documents
obligations and responsibilities conferred by the undertaking,
they will bear the corresponding legal liabilities according to
relevant laws, rules, regulations and regulatory documents.
Controlling Avoiding 3. In order to avoid possible competition within the industry
shareholder, competition between Midea Group and Midea Holding and its controlled 3. There has been no violation of this
2013.03.28 Long-standing
actual within the enterprises as well as He Xiangjian, his immediate family and undertaking.
controller industry his controlled companies, Midea Holding and He Xiangjian
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
have undertaken as follows:
(1) None of the entities or individuals mentioned above is or will
be engaged in the same or similar business as the existing
main business of Midea Group and its controlled companies.
They are not or will not be engaged or participate in such
business that is competitive to the existing main business of
Midea Group and its controlled companies by controlling other
economic entities, institutions or economic organizations;
(2) If Midea Group and its controlled companies expand their
business on the basis of the existing ones to those where the
above mentioned related entities or individuals are already
performing such production and operations, as long as He
Xiangjian is still the actual controller of Midea Group, and Midea
Holding the controlling shareholder, they will agree on solving
the problem of competition within the industry arising therefrom
within a reasonable period;
(3) If Midea Group and its controlled companies expand their
business scope on the basis of the existing ones to those where
the above mentioned related subjects have not gone into
production or operation, as long as He Xiangjian is still the
actual controller of Midea Group, and Midea Holding the
controlling shareholder, they would undertake as not to engage
in competitive business to the new ones of Midea Group and its
controlled companies;
(4) In accordance with effective laws, regulations or other
regulatory documents of People's Republic of China, as long as
Midea Holding is identified as the controlling shareholder of
Midea Group, and He Xiangjian the actual controller, they will
not change or terminate this undertaking.
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
(5) Midea Holding and He Xiangjian shall faithfully fulfill the
above undertaking, and assume the corresponding legal
responsibilities. If they fail to fulfill their obligations and
responsibilities conferred by the undertaking, they would bear
the corresponding legal responsibilities according to relevant
laws, rules, regulations and regulatory documents.
4. In order to regulate matters of related transactions that may
occur in the future between Midea Group and Midea Holding
and its controlled companies as well as He Xiangjian, his
immediate family and his controlled companies, Midea Holding
and He Xiangjian have undertaken as follows:
(1) They will regulate any related transactions with Midea
Group and its controlled companies using their utmost efforts to
reduce them. For unavoidable related transactions with Midea
Group and its controlled companies, including but not limited to
commodity trading, providing services to each other or as
Controlling
Regulation of agent, they will sign legal normative agreements with Midea
shareholder, 4. There has been no violation of this
related Group, and go through approval procedures in accordance with 2013.03.28 Long-standing
actual undertaking.
transactions related laws, regulations, rules, other regulatory documents,
controller
and relevant provisions of the Articles of Association of Midea
Group. They guarantee to offer fair prices for related
transactions, and fulfill the information disclosure obligations in
respect of the related transactions according to related laws,
regulations, rules, other regulatory documents, and relevant
provisions of the Articles of Association of Midea Group. They
also guarantee not to illegally transfer the funds or profits from
Midea Group, or damage the interests of its shareholders at
their advantages during the related transactions.
(2) They shall fulfill the obligation of withdrawing from voting
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
that involves the above mentioned related transactions at the
general meeting of Midea Group;
(3) The related subject mentioned above shall not require
Midea Group to offer more favorable conditions than those to
any independent third party in any fair market transactions.
(4) In accordance with effective laws, regulations or other
regulatory documents of People's Republic of China, as long as
Midea Holding is identified as the controlling shareholder of
Midea Group, and He Xiangjian the actual controller, they shall
not change or terminate this undertaking.
(5) Midea Holding and He Xiangjian will faithfully fulfill the
above undertaking and assume the corresponding legal
liabilities. If they fail to fulfill their obligations and responsibilities
conferred by the undertaking, they will bear the corresponding
legal responsibilities according to relevant laws, rules,
regulations and regulatory documents.
5. On 4 January 2001, the Midea Trade Union Committee
signed the "Equity Transfer Contract" with five people, namely
He Xiangjian, Chen Dajiang, Feng Jingmei, Chen Kangning and
Liang Jieyin, where it transferred all its limited equity of Midea
On Midea Trade
Group (22. 85%) respectively to those five people. According to 5. So far, there have been no
Controlling Union
the confirmation letter issued by members of the Midea Trade controversy or potential disputes arising
shareholder, Committee
Union Committee at that time, the equity transfer price was 2013.03.28 Long-standing from this shareholding transfer. There
actual transferring its
determined after mutual discussion on the basis of their true has been no violation of this
controller limited equity of
opinions, therefore there was no dispute or potential dispute. undertaking.
Midea Group
On 28 June, 2013, Foshan Shunde Beijiao General Union,
superior department of Midea Trade Union Committee, issued a
confirmation letter to the fact that the Midea Trade Union
Committee funded the establishment of Midea Group Co., Ltd.
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
In addition the letter also confirmed that the council of Midea
Trade Union Committee is entitled to dispose any property of
the committee, and such property disposal does not need any
agreement from all staff committee members.
Midea Holding and He Xiangjian, respectively the controlling
shareholder and actual controller of Midea Group Co., Ltd. have
undertaken as follows: For any loss to Midea Group caused by
any dispute or potential dispute arising from the matters of
equity transfer mentioned above, they are willing to assume full
liability for such loss.
6. Midea Holding and He Xiangjian have undertaken to be liable
Issues about for (1) paying such expenses and related expenses on time
Payment of the based on the requirements of relevant state departments if
6. So far, there have been no
Staff Social Midea Group is required to be liable for the payment of staff
Controlling controversy or potential disputes arising
Insurance and social insurance, housing provident fund and the payment
shareholder, from the payment of the staff social
the Housing required by relevant state authorities prior to this merger, (2) 2013.03.28 Long-standing
actual insurance and the housing provident
Provident Fund paying corresponding compensation for all direct and indirect
controller fund. There has been no violation of this
involved in losses incurred by Midea Group and its subsidiaries due to this
undertaking.
Midea Group's merger, (3) indemnifying and holding harmless Midea Group
Overall Listing and its subsidiaries in time from such expenses when Midea
Group and its subsidiaries are required to pay them in advance.
Issues about 7. Undertakings on issues about asset alteration, asset flaw and 7. So far, there have been no
asset alteration, house leasing of Midea Group and its subsidiaries controversy or potential disputes arising
Controlling
asset flaw and Midea Holding and He Xiangjian have undertaken as follows: from asset alteration, asset flaw and
shareholder,
house leasing of (1) Midea Holding will do its utmost to assist and urge Midea 2013.03.28 Long-standing house leasing. There has been no
actual
Midea Group Group (including its subsidiaries) to complete renaming violation of this undertaking. Midea
controller
and its procedures of related assets, such as land, housing, Holding will keep this undertaking long
subsidiaries trademarks, patents and stock rights, declared in the related standing.
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
files of this merger. Midea Holding will be liable for all
compensations of losses caused by issues about renaming
procedures of related assets mentioned above to Midea Group.
(2) Midea Holding shall do its utmost to assist Midea Group
(including its subsidiaries) to apply for ownership certificates of
land and housing or property declared in related files of this
merger.
(3) Midea Holding shall assist Midea Group (including its
subsidiaries) to re-apply for corresponding construction
procedures and apply for their ownership certificates for houses
without complete procedures, as happened in the past, to apply
for the ownership certificate. If the competent authorities
requires Midea Group to dismantle buildings that cannot
acquire the re-application for real estate registration
procedures, Midea Holding shall do its utmost to provide
assistance and be liable for any related expenses used in
dismantling such buildings by Midea Group (including its
subsidiaries).
(4) Under any circumstances that Midea Group suffers from
losses incurred from no longer using these properties or
presently using the land or house above due to failing to obtain
or collect in time the ownership certificates of the land or house
above or any losses caused by any other reasons, Midea
Holding shall compensate any loss for these reasons in time
and in full. Midea Holding shall compensate the actual loss
Midea Group suffers from any circumstances above resulting in
penalties subjected to from competent authorities or through
claims from any other third party.
(5) Based on issues of defective house leasing declared in
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
related files of this merger, Midea Holding shall provide
sufficient compensations for all economic losses incurred by
Midea Group (including its subsidiaries) where the leasehold
relations above become invalid or other disputes occur, which
are caused by rights claims from a third party or by means of an
administrative authority exercising a right and therefore results
in any economic losses due to eviction from rental houses, or
any penalties subjected to by competent government
departments or any recourse from related parties.
(6) Based on the issues of defective land leasing declared in
related files of this merger, when leasehold relations become
invalid caused by defects of land leasing or when other disputes
occur, resulting in any economic losses to Midea Group
(including its subsidiaries) or through any penalties
administered by competent government departments. Likewise
if the lessor cannot compensate for losses caused by such
defective leasing, Midea Holding shall compensate Midea
Group for losses caused by such defective land leasing.
Midea Holding and He Xiangjian will compensate any losses of
Midea Group where a violation of guarantees and undertakings
referred to previously occurs or such guarantees and
undertakings are not consistent with the reality.
Shareholders of Midea Group, Ningbo Maysun, Fang Hongbo,
Huang Jian, Cai Qiwu, Yuan Liqun, Huang Xiaoming, Li 36 months from
Jianwei, Zheng Weikang promise that since Midea Group was the day of Midea
Other This undertaking has expired. There has
Share lock-up listed on the Shenzhen Stock Exchange, transferring shares or 2013.03.28 Group’s listing
shareholders been no violation of this undertaking.
delegating others to manage their shares with either direct or (2013.09.18-201
indirect ownership of Midea Group, issued before this time, has 6.09.18)
been forbidden for 36 months. Midea Group is not allowed to
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
buy back those shares either.
Xiaomi Technology has given an undertaking that it shall not 36 months from
Undertakings
transfer the shares that it had subscribed for in this private the listing date of There has been no violation of this
given in time Xiaomi Private
offering with Midea Group within 36 months from the completion 2015.06.26 this private undertaking.
of IPO or Technology placement
date of this offering (26 June 2015, the listing date for this offering, i.e. to
refinancing
offering). 26 June 2018
Whether the
undertaking
Yes
is fulfilled on
time
Specific
reasons for
failing to fulfill
any N/A
undertaking
and plan for
the next step
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
IV Operating result forecast for the year of 2016
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
V Securities investment
□ Applicable √ N/A
No such cases in the Report Period.
VI Investments in financial derivatives
√ Applicable □ N/A
Unit: RMB'0,000
Ratio of
investm
ent
amount
Wh
at the
ethe Sold
Investme Purcha end of
r it amou Amount Investme
Rel nt sed nt the Actual
is a Type Initial nt in provide
Opera ated Comme Termina amount amount amount period gain or
relat of investme the d for
ting part ncemen tion at the in the to the loss
ed-p deriva nt Repor impairm at the end
party y or t date date beginning Reporti Compa amount for
arty tive amount ting ent (if of the ny's net the period
not of the ng
tran Perio any) period
period Period assets
sact d
at the
ion
end of
the
period
(%)
Futur Futur
es es 2016.01 2016.12 0.0004
No No 748.20 - - - 25.5 234.9
comp contra .01 .31 748.20 %
any cts
Forwa
rd
2016.01 2016.12 -0.5928
Bank No No forex -8,414.40 - - - -39,095 -54,459.4
.01 .31 -8,414.40 %
contra
cts
-0.5924
Total -7,666.20 -- -- -7,666.20 - - - -39,069.5 -54,224.5
%
Source of derivatives
All from the Company's own cash.
investment funds
Litigation involved (if
N/A
applicable)
Disclosure date of the
announcement about
the board’s consent for 2016.03.26
the derivative
investment (if any)
Disclosure date of the 2016.04.27
announcement about
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The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
the general meeting’s
consent for the
derivative investment (if
any)
For the sake of eliminating the cost risk of the Company's bulk purchases of raw materials as a
result of significant fluctuations in raw material prices, the Company not only carried out futures
business for some of the materials, but also made use of bank financial instruments and
promoted forex funds business, with the purpose of avoiding the risks of exchange and interest
rate fluctuation, realizing the preservation and appreciation of forex assets, reducing forex
liabilities, as well as achieving locked-in costs. The Company has performed sufficient
evaluation and control against derivatives investment and position risks, details of which are
described as follows:
1. Legal risk: The Company's futures business and forex funds businesses shall be conducted
in compliance with laws and regulations, with clearly covenanted responsibility and obligation
relationship between the Company and the agencies.
Control measures: The Company has designated relevant responsible departments to enhance
learning of laws and regulations and market rules, conducted strict examination and verification
of contracts, defined responsibility and obligation well, and strengthened compliance check, so
as to ensure that the Company's derivatives investment and position operations meet the
requirements of the laws and regulations and internal management system of the Company.
2. Operational risk: Imperfect internal process, staff, systems and external issues may cause
Risk analysis of the Company to suffer from loss during the course of its futures business and forex funds
positions held in business.
derivatives during the Control measures: The Company has not only developed relevant management systems that
Reporting Period and clearly defined the assignment of responsibility and approval process for the futures business
explanation of control and forex funds business, but also established a comparatively well-developed monitoring
measures (including but mechanism, aiming to effectively reduce operational risk by strengthening risk control over the
not limited to market business, decision-making and trading processes.
risk, liquidity risk, credit 3. Market risk Uncertainties caused by changes in the prices of bulk commodity and exchange
risk, operational risk rate fluctuations in foreign exchange market could lead to greater market risk in the futures
and legal risk) 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 in forex funds operations being unable to be credited into account could also
result in loss and default risks.
Control measures: The futures business and forex funds business of the Company shall always
be conducted by adhering to prudent operation principles. For futures business, the futures
transaction volume and application have been determined strictly according to the
requirements of production & operations, and the stop-loss mechanism has been implemented.
Besides, to determine the prepared margin amount which may be required to be
supplemented, the futures 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. As for forex funds business, a hierarchical
management mechanism has been 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, evaluate the possible greatest revenue and
loss, and report the greatest acceptable margin ratio or total margin amount, so that the
Company can update operating status of the funds business on a timely basis to ensure proper
funds arrangement before the expiry dates.
Changes in market
price or fair value of
derivatives product
invested during the 1. Gain/loss from futures hedging contracts incurred during the Reporting Period was
Reporting Period: RMB2.349mn;
specific methods used 2. Gain/loss from forward forex contracts incurred during the Reporting Period was
and relevant RMB-544.594mn;
assumption and 3. Public quotations in futures market or forward forex quotations announced by the Bank of
parameter settings shall China are used in the analysis of derivatives fair value.
be disclosed for
analysis of fair value of
derivatives
Explanation of
significant changes in
accounting policies and
specific financial N/A
accounting principles in
respect of the
Company's derivatives
18
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
for the Reporting Period
as compared to the
previous Reporting
Period
The Company's independent directors are of the view that the futures hedging business is an
Special opinions
effective instrument for the Company to eliminate price volatility and implement risk prevention
expressed by
measures through enhanced internal control, thereby improving the operation and
independent directors
management of the Company; the Company's foreign exchange risk management capability
concerning the
can be further improved through the forex funds business, so as to maintain and increase the
Company's derivatives
value of foreign exchange assets and the abovementioned investment in derivatives can help
investment and risk
the Company to fully bring out its competitive advantages. Therefore, it is practicable for the
control
Company to carry out derivatives investment business, and the risks are controllable.
VIII Visits received during the Report Period
√ Applicable □ N/A
Date Type of visit Type of visitor Discussions
2016-07-05 Teleconference Institution
2016-07-06 Field research Institution
2016-07-08 A-Share Conference Institution
2016-07-08 Field research Institution Please refer to Investor Relations
Activities from 5 July 2016 to 29 July
2016-07-12 Field research Institution
2016 on the website of
2016-07-13 A-Share Conference Institution www.cninfo.com.cn
2016-07-14 A-Share Conference Institution
2016-07-19 Field research Institution
2016-07-20 Field research Institution
2016-07-21 A-Share Conference Institution
2016-07-22 A-Share Conference Institution
2016-07-25 Teleconference Institution
2016-07-29 Teleconference Institution
2016-08-31 Teleconference Institution
2016-09-01 A-Share Conference Institution
2016-09-02 A-Share Conference Institution
2016-09-02 Roadshow Institution
2016-09-05 A-Share Conference Institution
2016-09-06 A-Share Conference Institution
2016-09-06 Roadshow Institution
2016-09-07 A-Share Conference Institution
2016-09-08 A-Share Conference Institution
2016-09-08 Teleconference Institution Please refer to Investor Relations
Activities from 31 August 2016 to 30
2016-09-09 A-Share Conference Institution
September 2016 on the website of
2016-09-12 Teleconference Institution www.cninfo.com.cn
2016-09-13 A-Share Conference Institution
2016-09-20 Roadshow Institution
2016-09-21 Field research Institution
2016-09-22 A-Share Conference Institution
2016-09-23 Field research Institution
2016-09-27 A-Share Conference Institution
2016-09-28 A-Share Conference Institution
2016-09-29 Field research Institution
2016-09-30 Teleconference Institution
19
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
IX Irregular provision of guarantees
□ Applicable √ N/A
No such cases in the Report Period.
X 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 Report Period.
20
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Section IV Financial Statements
I Financial statements
Balance Sheet
Prepared by: Midea Group Co., Ltd. Unit:RMB’000
Consolidated The Company
Assets
30-Sept-16 31-Dec-15 30-Sept-16 31-Dec-15
Current assets
Cash at bank and on
18,583,682 11,861,977 14,219,823 14,213,747
hand
Deposits with central
861,138 1,048,045
bank - -
Deposits with banks and
5,049,747 4,062,807
other financial institutions - -
Derivative financial
7,313 158,822
assets - -
Notes receivable 10,948,120 12,889,151 591,180 727,218
Accounts receivable 12,726,023 10,371,718
- -
Advances to suppliers 2,106,914 988,625 10,972 8,915
Loans and advances 11,940,979 6,608,705
- -
Dividends receivable 1,072,306 290,245
- -
Other receivables 804,792 1,101,339 11,963,777 7,461,039
Inventories 10,434,353 10,448,937
- -
Other current assets 40,223,937 33,827,580 24,505,701 21,059,789
Total current assets 113,686,998 93,367,706 52,363,759 43,760,953
Non-current assets
Available-for-sale
5,097,575 3,289,954 24,556 9,000
financial assets
Long-term receivables 39,780
- - -
Long-term equity
2,908,769 2,888,274 23,478,806 23,126,546
investments
Investment properties 140,413 150,803 273,359 286,272
Fixed assets 20,836,612 18,729,881 1,042,917 1,107,082
Construction in progress 1,050,564 954,761 770,366 543,588
21
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Intangible assets 5,986,226 3,392,402 241,957 248,482
Goodwill 4,862,150 2,393,066
- -
Long-term prepaid
633,656 781,359 44,232 57,393
expenses
Deferred income tax
2,895,145 2,223,999 7,156 7,961
assets
Other non-current assets 4,853,722 669,730 4,015,000
-
Total non-current
49,304,612 35,474,229 29,898,349 25,386,324
assets
TOTAL ASSETS 162,991,610 128,841,935 82,262,108 69,147,277
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Xiao Mingguang
Chief of the accounting division: Chen Lihong
22
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Balance Sheet (Continued)
Prepared by: Midea Group Co., Ltd. Unit:RMB’000
Consolidated The Company
Liabilities and Shareholders'
Equity
30-Sept-16 31-Dec-15 30-Sept-16 31-Dec-15
Current liabilities
Short-term borrowings
4,731,148 3,920,933 1,290,000
-
Borrowings from the Central
80,730
Bank - - -
Customer deposits and
deposits from banks and other
55,561 52,000
financial institutions - -
Derivative financial liabilities
376,221 33,377 22,671
-
Financial assets sold under
651,784
repurchase agreements - - -
Notes payable
21,547,591 17,078,520
- -
Accounts payable 21,321,068 17,448,684 27,965 9,403
Advances from customers
6,612,400 5,616,361
- -
Payroll payable 2,141,151 2,229,332 1,441 13,411
Taxes payable 2,798,083 1,607,181 23,263 52,656
Interests payable 48,749 9,343 236,188 200,090
Dividends payable
196,694 118,851
- -
Other payables 2,229,265 1,139,306 54,281,776 45,166,453
Current portion of non-current
57,899
liabilities - - -
Other current liabilities 23,000,383 22,098,177 28,330 5,106
Total current liabilities 85,196,943 72,003,849 54,598,963 46,759,790
Non-current liabilities
Long-term borrowings
2,110,281 90,061
- -
Debentures payable
4,617,408
- - -
Long-term payables
416,961
- - -
Payables for specific projects
500 500
- -
Provisions
302,642 38,893 3,800
-
Deferred revenue
470,765 479,352
- -
Long-term payroll payable
1,385,592
- - -
23
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Deferred income tax liabilities
1,675,765 40,464
- -
Other non-current liabilities
867,399 157,194
- -
Total non-current
11,847,313 806,464 3,800
liabilities -
Total liabilities 97,044,256 72,810,313 54,598,963 46,763,590
Shareholders' equity
Share capital 6,450,552 4,266,839 6,450,552 4,266,839
Capital surplus 13,358,424 14,511,190 5,206,601 6,370,934
Less: treasury stock
- - - -
Other comprehensive income (605,897) (1,071,151) 19,104 21,006
Surplus reserve 1,846,523 1,846,523 1,846,523 1,846,523
General reserve
118,624 118,624
- -
Undistributed profits 37,216,952 29,529,827 14,140,365 9,878,385
Total equity attributable to
shareholders of the parent 58,385,178 49,201,852 27,663,145 22,383,687
company
Minority interests
7,562,176 6,829,770
- -
Total shareholders' equity 65,947,354 56,031,622 27,663,145 22,383,687
TOTAL LIABILITIES AND
162,991,610 128,841,935 82,262,108 69,147,277
SHAREHOLDERS' EQUITY
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Xiao Mingguang
Chief of the accounting division: Chen Lihong
24
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Income Statement
Prepared by: Midea Group Co., Ltd. Unit: RMB’000
Consolidated Company
Jan. – Sept. Jan. – Sept. Jan. – Sept. Jan. – Sept.
2016 2015 2016 2015
1. Total revenue 117,077,949 112,033,855 851,892 683,222
Including: Operating revenue 116,378,417 111,374,416 851,892 683,222
Interest income
691,759 656,236
- -
Fee and commission income
7,773 3,203
- -
2. Total Cost (102,498,007) (100,582,802) (1,006,971) (1,062,012)
Less: Cost of sales (83,828,027) (82,112,452) (14,829) (20,689)
Interest expenses
(384,002) (448,163)
- -
Fee and commission expenses
(2,012) (1,564)
- -
Taxes and surcharges (662,794) (737,243) (7,988) (2,714)
Selling and distribution expenses
(12,341,424) (11,598,555)
- -
General and administrative expenses
(5,981,080) (5,496,106) (276,093) (366,531)
Financial expenses – net 913,165 (100,875) (708,030) (672,619)
Asset impairment (loss)/reversal
(211,833) (87,844) (31) 541
Add: Gains/(losses) on changes in fair
(488,089) 45,766 22,673 (2,369)
value
Investment income 1,183,473 1,593,820 9,491,666 6,480,996
Including: Share of profit of associates
295,082 78,081 201,015 17,323
and joint ventures
3. Operating profit 15,275,326 13,090,639 9,359,260 6,099,837
Add: Non-operating income
1,258,778 1,224,384 44,954 62,081
Including: Gains on disposal of
10,933 41,434 23,874
non-current assets -
Less: Non-operating expenses
(193,914) (184,525) (3,681) (8,525)
Including: Losses on disposal of
(73,136) (138,447) (1,562) (3,734)
non-current assets
4. Total profit 16,340,190 14,130,498 9,400,533 6,153,393
Less: Income tax expenses (2,588,202) (2,301,994) (17,685) (149,031)
5. Net profit 13,751,988 11,828,504 9,382,848 6,004,362
Including: Net profit of the consolidated
subsidiaries before consolidation - - - -
Attributable to shareholders of the parent
12,807,993 11,012,103 9,382,848 6,004,362
company
Minority interests
943,995 816,401
- -
6. Other comprehensive income net of
538,964 (335,083) (1,902) (31)
tax
Attributable to shareholders of the parent
465,254 (171,375) (1,902) (31)
company
25
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
(1) Other comprehensive income items
which will not be reclassified
- - - -
subsequently to profit or loss
1)Changes in net liabilities or assets with
a defined benefit plan upon
- - - -
re-measurement
2)Shares in other comprehensive
incomes in investees that cannot be
reclassified into gains and losses under - - - -
the equity method
(2) Other comprehensive income items
which will be reclassified subsequently to 465,254 (171,375) (1,902) (31)
profit or loss
1)Share of the other comprehensive
income of the investee accounted for
using equity method which will be (56,537) (3,904) (1,902) (31)
reclassified subsequently to profit and
loss
2)Changes in fair value of
available-for-sale financial assets 358,607 (89,149)
- -
3)Effective portion of cash flow hedging
gains or losses - - - -
4)Translation of foreign currency financial
174,794 67,084
statements - -
5)Foreign-currency financial statement
translation difference (11,610) (145,406)
- -
Attributable to minority shareholders
73,710 (163,708)
- -
7. Total comprehensive income
14,290,952 11,493,421 9,380,946 6,004,331
Attributable to shareholders of the parent
13,273,247 10,840,728 9,380,946 6,004,331
company
Attributable to minority shareholders
1,017,705 652,693
- -
8. Earnings per share (restated)
Basic earnings per share (RMB Yuan)
2.00 1.73 N/A N/A
Diluted earnings per share (RMB Yuan)
1.99 1.72 N/A N/A
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Xiao Mingguang
Chief of the accounting division: Chen Lihong
26
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Income Statement
Prepared by: Midea Group Co., Ltd. Unit: RMB’000
Consolidated Company
July – Sept. July – Sept. July – Sept. July – Sept.
2016 2015 2016 2015
1. Total revenue 39,070,433 29,158,785 263,641 213,239
Including: Operating revenue 38,856,130 28,865,272 263,641 213,239
Interest income
212,183 292,404
- -
Fee and commission income
2,120 1,109
- -
2. Total Cost (35,679,594) (26,950,391) (247,382) (392,706)
Less: Cost of sales (28,961,867) (22,233,546) (1,181) (6,348)
Interest expenses
(122,684) (131,092)
- -
Fee and commission expenses
(625) (676)
- -
Taxes and surcharges (195,032) (168,607) (4,653) (1,776)
Selling and distribution expenses
(4,156,246) (2,612,456)
- -
General and administrative expenses
(2,291,021) (1,891,349) 62,445 (100,911)
Financial expenses – net 7,904 (101,653) (303,995) (284,406)
Asset impairment (loss)/reversal
39,977 188,988 2 735
Add: Gains/(losses) on changes in fair
37,000 263,230 (8,995)
value -
Investment income 469,391 412,615 1,932,955 1,672,607
Including: Share of profit of associates
94,340 34,954 69,904 11,261
and joint ventures
3. Operating profit 3,897,230 2,884,239 1,949,214 1,484,145
Add: Non-operating income
355,506 573,793 43,117 11,937
Including: Gains on disposal of
7,385 3,261 5,060
non-current assets -
Less: Non-operating expenses
(90,115) (84,109) (2,124) (4,066)
Including: Losses on disposal of
(40,987) (61,002) (15)
non-current assets -
4. Total profit 4,162,621 3,373,923 1,990,207 1,492,016
Less: Income tax expenses (641,531) (493,987) 17,216 (31,996)
5. Net profit 3,521,090 2,879,936 2,007,423 1,460,020
Including: Net profit of the consolidated
subsidiaries before consolidation - - - -
Attributable to shareholders of the parent
3,311,500 2,687,980 2,007,423 1,460,020
company
Minority interests
209,590 191,956
- -
6. Other comprehensive income net of
(808,298) (458,608) 8,675 (31)
tax
Attributable to shareholders of the parent
(811,460) (386,133) 8,675 (31)
company
27
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
(1) Other comprehensive income items
which will not be reclassified
- - - -
subsequently to profit or loss
1)Changes in net liabilities or assets with
a defined benefit plan upon
- - - -
re-measurement
2)Shares in other comprehensive
incomes in investees that cannot be
reclassified into gains and losses under - - - -
the equity method
(2) Other comprehensive income items
which will be reclassified subsequently to (811,460) (386,133) 8,675 (31)
profit or loss
1)Share of the other comprehensive
income of the investee accounted for
using equity method which will be 9,169 1,517 8,675 (31)
reclassified subsequently to profit and
loss
2)Changes in fair value of
available-for-sale financial assets (723,900) (100,067)
- -
3)Effective portion of cash flow hedging
gains or losses - - - -
4)Translation of foreign currency financial
29,191 (293,331)
statements - -
5)Foreign-currency financial statement
translation difference (125,920) 5,748
- -
Attributable to minority shareholders
3,162 (72,475)
- -
7. Total comprehensive income
2,712,792 2,421,328 2,016,098 1,459,989
Attributable to shareholders of the parent
2,500,040 2,301,847 2,016,098 1,459,989
company
Attributable to minority shareholders
212,752 119,481
- -
8. Earnings per share (restated)
Basic earnings per share (RMB Yuan)
0.51 N/A N/A
0.42
Diluted earnings per share (RMB Yuan)
0.51 N/A N/A
0.42
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Xiao Mingguang
Chief of the accounting division: Chen Lihong
28
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Cash Flow Statement
Prepared by: Midea Group Co., Ltd. Unit: RMB’000
Consolidated Company
Jan. – Sept. Jan. – Sept. Jan. – Sept. Jan. – Sept.
2016 2015 2016 2015
1. Cash flows from operating activities
Cash received from sales of goods or rendering
112,216,632 92,229,531
of services - -
Net increase in customer deposits and deposits
3,561
from banks and other financial institutions - - -
Net increase in deposits with central bank
126,053 69,017
- -
Net increase in borrowing from central bank
80,730
- - -
Cash received from interest, fee and
700,653 659,439
commission - -
Refund of taxes and surcharges
4,124,618 3,216,937
- -
Cash received relating to other operating
2,201,828 3,700,556 10,532,437 14,319,778
activities
Sub-total of cash inflows
119,454,075 99,875,480 10,532,437 14,319,778
Cash paid for goods and services
(63,672,706) (53,838,373)
- -
Net decrease in customer deposits and deposits
from banks and other financial institutions - - - -
Net decrease in loans and advances
(5,428,328) (67,922)
- -
Net decrease in deposits with central bank
141,562
- - -
Cash paid for interest, fee and commission
(387,319) (451,072)
- -
Cash paid to and on behalf of employees
(8,673,520) (8,776,445) (27,898) (147,910)
Payments of taxes and surcharges
(6,828,734) (6,747,191) (52,312) (14,244)
Cash paid relating to other operating activities
(15,425,973) (12,165,557) (4,590,393) (6,138,998)
Sub-total of cash outflows (100,416,580
(81,904,998) (4,670,603) (6,301,152)
)
Net cash flows from operating activities
19,037,495 17,970,482 5,861,834 8,018,626
2. Cash flows from investing activities
Cash received from disposal of investments
48,980,669 6,737 25,674,850 12,000
Cash received from returns on investments
1,339,590 1,529,729 8,738,751 4,917,338
Net cash received from disposal of fixed assets,
170,570 212,940 111 354
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
272,899 273,077
and other business units - -
29
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Cash received relating to other investing
activities - - - -
Sub-total of cash inflows
50,763,728 1,749,406 34,413,712 5,202,769
Cash paid to acquire fixed assets, intangible
(1,605,425) (1,898,205) (247,748) (394,332)
assets and other long-term assets
Cash paid to acquire investments
(65,071,957) (9,703,810) (35,644,352) (4,832,290)
Net cash paid to acquire subsidiaries and other
(1,856,787) 2,895
business units - -
Cash paid to other investment activities
- - - -
Sub-total of cash outflows
(68,534,169) (11,599,120) (35,892,100) (5,226,622)
Net cash flows from investing activities
(17,770,441) (9,849,714) (1,478,388) (23,853)
3. Cash flows from financing activities
Cash received from capital contributions
651,628 635,611
1,651,109 1,637,649
Including: Cash received from capital
contributions by minority shareholders of 16,017
13,460 - -
subsidiaries
Cash received from borrowings
28,817,816 19,484,160 1,800,000
-
Cash received from issuing short-term bonds
1,999,500 1,999,500
- -
Cash received relating to other financing
activities - - - -
Sub-total of cash inflows
31,468,944 21,135,269 4,435,111 1,637,649
Cash repayments of borrowings
(21,748,594) (22,253,997) (3,090,000) (500,000)
Cash repayments for the issued short-term
(1,999,500) (1,999,500)
bonds - -
Cash payments for interest expenses and
(5,728,142) (4,781,153) (6,234,046) (5,233,030)
distribution of dividends or profits
Including: Cash payments for dividends or profit
(417,287) (476,028)
to minority shareholders of subsidiaries - -
Cash payments to other financing activities
(999,998) (999,998)
- -
Sub-total of cash outflows
(29,476,236) (28,035,148) (11,323,546) (6,733,028)
Net cash flows from financing activities
1,992,708 (6,899,879) (6,888,435) (5,095,379)
4. Effect of foreign exchange rate changes
101,834 (17,501)
on cash and cash equivalents - -
5. Net decrease in cash and cash equivalents
3,361,596 1,203,388 (2,504,989) 2,899,394
Add: Cash and cash equivalents at beginning of
5,187,317 5,272,238 6,245,008 6,879,717
year
6. Cash and cash equivalents at end of year
8,548,913 6,475,626 3,740,019 9,779,111
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Xiao Mingguang
Chief of the accounting division: Chen Lihong
30
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
II Auditor’s report
Is this Report audited by a CPAs firm?
□ Yes √ No
This Report is un-audited by a CPAs firm.
Midea Group Co., Ltd.
Legal Representative: Fang Hongbo
31 October 2016
31
