Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Midea Group Co., Ltd.
Interim Report for the First Quarter 2018
April 2018
1
Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Section I Important Reminders
1. The Board of Directors, the Supervisory Committee as well as all the
directors, supervisors and senior management staff of Midea Group Co.,
Ltd. (hereinafter referred to as the “Company”) have warranted that this
Report contains no false record, misleading statement or material
omission. And they shall be jointly and severally liable for the factuality,
accuracy and completeness of the information given in this Report.
2. All the directors have attended the Q1 report review board meeting.
3. The financial statements contained in this Report have not been
audited by a certified public auditors (CPAs) firm.
4. Mr. Fang Hongbo, Chairman of the Board and President of the
Company, and Mr. Xiao Mingguang, Director of Finance of the Company,
have represented and warranted that the financial statements in this
Report are factual, accurate and complete.
5. This Report has been prepared in both Chinese and English. Should
there be any discrepancy between the two versions, the Chinese version
shall prevail.
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Section II Company Profile
1. Major Accounting Data and Financial Indicators
Does the Company adjust retrospectively or restate accounting data of previous years?
□ Yes √ No
Jan.-Mar. 2018 Jan.-Mar. 2017 YoY Change (%)
Operating revenues (RMB'000) 69,737,528 59,755,914 16.70%
Net profits attributable to shareholders of
5,256,231 4,352,587 20.76%
the Company (RMB'000)
Net profits attributable to shareholders of
the Company before non-recurring profits 5,077,715 4,263,125 19.11%
and losses (RMB'000)
Net cash flows from operating activities
4,429,092 7,008,571 -36.80%
(RMB'000)
Basic earnings per share (RMB/share) 0.80 0.67 19.40%
Diluted earnings per share (RMB/share) 0.79 0.67 17.91%
Weighted average ROE (%) 6.87% 6.87% 0.00%
31 Mar. 2018 31 Dec. 2017 Change (%)
Total assets (RMB'000) 252,566,526 248,106,858 1.80%
Net assets attributable to shareholders of
79,225,982 73,737,437 7.44%
the Company (RMB'000)
Total share capital of the Company on the last trading session before disclosure:
Total share capital of the Company on the
6,584,022,574
last trading session before disclosure (share)
Fully diluted earnings per share based on the
0.80
latest share capital above (RMB/share)
Non-recurring profits and losses
√ Applicable □ N/A
Unit: RMB’000
Item Jan.-Mar. 2018 Note
Profit or loss from disposal of non-current assets -6,398
Except for effectively hedging business related to normal -60,955
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
business operations of the Company, profit or loss arising
from the change in the fair value of held-for-trading financial
assets and liabilities, as well as investment profit or loss
produced from the disposal of held-for-trading financial
assets and liabilities and available-for-sale financial assets
Other 349,864
Less: Corporate income tax 38,179
Minority interests (after tax) 65,816
Total 178,516 --
Explain the reasons if the Company classifies an item as a non-recurring profit/loss according to the
definition in the , or classifies any non-recurring
profit/loss item mentioned in the said explanatory announcement as a recurring profit/loss item
□ Applicable √ N/A
No such cases for the Reporting Period.
2. Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
2.1 Total number of common shareholders and shareholdings of the top ten common
shareholders at the period-end
Unit: share
Total number of preference
Total number of common
162,344 shareholders with resumed voting 0
shareholders at the period-end
rights at the period-end (if any)
Top ten shareholders
Shareh Pledged or frozen
olding shares
percent Number Number of
Nature of of Status
Name of shareholder age (%) shares held restricted
shareholder of Number of
shares held
share shares
s
Domestic non-
Midea Holding Co., Ltd. 33.60% 2,212,046,613 Pledg 781,565,000
state-owned
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
corporation ed
Hong Kong Securities Clearing Foreign
9.61% 632,798,394
Company Limited corporation
State-owned
China Securities Finance Co., Ltd. 3.76% 247,322,399
corporation
Domestic
Fang Hongbo 2.08% 136,990,492 102,742,869
individual
Hillhouse Capital Management Limited Foreign
1.64% 107,658,338
－HCM China Fund corporation
Domestic Pledg
Huang Jian 1.34% 88,005,400 22,999,900
individual ed
Domestic non-
Xiaomi Technology Co., Ltd. state-owned 1.25% 82,500,000 82,500,000
corporation
State-owned
Central Huijin Asset Management Ltd. 1.19% 78,474,900
corporation
Foreign
UBS AG 0.98% 64,238,216
corporation
Domestic Pledg
Li Jianwei 0.96% 63,434,834 8,703,000
individual ed
Top ten non-restricted common shareholders
Number of non- Type of shares
restricted common
Name of shareholder
shares held at the Type Number
period-end
Midea Holding Co., Ltd. 2,212,046,613 RMB common stock 2,212,046,613
Hong Kong Securities Clearing Company Limited 632,798,394 RMB common stock 632,798,394
China Securities Finance Co., Ltd. 247,322,399 RMB common stock 247,322,399
Hillhouse Capital Management Limited－HCM China
107,658,338 RMB common stock 107,658,338
Fund
Huang Jian 88,005,400 RMB common stock 88,005,400
Central Huijin Asset Management Ltd. 78,474,900 RMB common stock 78,474,900
UBS AG 64,238,216 RMB common stock 64,238,216
Li Jianwei 63,434,834 RMB common stock 63,434,834
Yuan Liqun 62,405,900 RMB common stock 62,405,900
Fu Xuan 48,327,697 RMB common stock 48,327,697
Explanation of related relationship or/and acting-in-
concert parties among the above-mentioned N/A
shareholders
Top ten non-restricted common shareholders taking N/A
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
part in securities margin trading (if any)
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company conduct any promissory repurchase during the Reporting Period
□ Yes √ No
No such cases in the Reporting Period.
2.2 Total number of preference shareholders and shareholdings of the top ten preference
shareholders at the period-end
□ Applicable √ N/A
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Section III Significant Events
1. Major changes of main items in financial statements and financial indicators within
the Report Period, as well as the reasons for the changes
√ Applicable □ N/A
Unit: RMB’000
31 March 31 December
Financial statement Change
2018/January 2017/January- Reasons for the changes
items (consolidated) (%)
-March 2018 March 2017
Mainly due to the repayment of
Short-term borrowings 1,456,746 2,584,102 -43.63%
borrowings
Mainly due to the changes in the
Derivative financial liabilities 126,607 90,432 40.00% fair value of derivative financial
assets
Mainly due to the payment of
Interest payable 49,248 94,801 -48.05%
interest
Mainly due to the dividend
Dividends payable 14,659 95,317 -84.62%
payouts by subsidiaries
Mainly due to fair value changes
Other comprehensive income -31,306 -244,692 87.21%
in the hedging business
Mainly due to the changes in the
Interest expenses 150,518 93,334 61.27% operation of Midea Group
Finance
Mainly due to the changes in
Finance expenses 95,978 -183,364 152.34%
foreign exchange profit /loss
Mainly due to the decreased
investment income from disposal
Investment income 317,938 726,487 -56.24%
of available-for-sale financial
assets
Mainly due to the increased
Profit/loss on disposal of
-13,053 -7,146 -82.66% losses on disposal of non-current
assets
assets
Mainly due to the decreased
Non-operating income 60,554 128,126 -52.74%
other income
Mainly due to the decreased
Non-operating expenses 25,846 47,585 -45.68%
donation expenses
Net cash flows from operating Mainly due to the increased
4,429,092 7,008,571 -36.80%
activities deposits in the central bank
Net cash flows from investing Mainly due to the decreased cash
-7,250,092 -26,909,489 73.06%
activities paid to acquire investments
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Net cash flows from financing - Mainly due to the decreased
-2,254,205 28,551,856
activities 107.90% borrowings
2. Progress, influence and solutions of significant events
□ Applicable √ N/A
3. Overdue commitments of the Company’s actual controller, shareholders, related
parties and acquirer, as well as the Company and other commitment makers in the
Report Period or ongoing at the period-end
□ Applicable √ N/A
No such cases in the Reporting Period.
4. Operating result forecast for January-June 2018
Warning of possible loss or considerable YoY change of the accumulated net profit made during the
period-start until the end of the next Report Period according to predictions as well as any explanations
for these reasons:
□ Applicable √ N/A
5. Securities investment
□ Applicable √ N/A
No such cases in the Reporting Period.
6. Investments in financial derivatives
√ Applicable □ N/A
Unit: RMB’0,000
Rel Purch Sold Proporti
Rel Type Impair Actual
Ope ated Initial Opening ased in Closing on of
atio of Start End ment gain/loss in
rato - investment investment in Repor investment the
nshi deriva date date provis Reporting
r part amount amount Repor ting amount closing
p tive ion Period
y ting Perio investm
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
tran Perio d ent
sact d amount
ion in the
or Compa
not ny’s
closing
net
assets
Futu
Futur 31
res 1
es Decem
com N/A No 6,588.20 January 6,588.20 - - - -14,250.80 -0.18% -24,604.90
contra ber
pan 2018
cts 2018
y
Forwa
rd 31
1
Ban excha Decem
N/A No 55,599.50 January 55,599.50 - - - 60,899.90 0.77% 37,455.80
k nge ber
2018
contra 2018
cts
Total 62,187.70 -- -- 62,187.70 - - - 46,649.10 0.59% 12,850.90
Capital source for
All the Company’s own funds
derivative investment
Lawsuits involved (if
N/A
applicable)
Disclosure date of the
board announcement
approving the 31 March 2018
derivative investment
(if any)
Disclosure date of the
24 April 2018
general meeting
In order to reduce the price 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
Analysis of risks and for some of the materials, but also made use of bank financial instruments and promoted forex
control measures of funds business, with the purpose of reducing the risks associated with exchange and interest rate
derivative products fluctuations, realizing the preservation and appreciation of forex assets, reducing forex liabilities,
held in the Report and achieving locked-in costs. The Company has undertaken extensive evaluation and risk control
Period (including but with regard to derivative investment positions, details of which are as follows:
not limited to market 1. Legal risk: The Company's futures business and forex funds businesses are conducted in
risk, liquidity risk, compliance with laws and regulations, with clearly defined responsibilities and obligations between
credit risk, operational the Company and agencies.
risk, legal risk, etc.) Control measures: The Company has designated relevant departments with the responsibility for
enhancing expertise in laws, regulations and market rules, conducting strict examination and
verification of contracts, defining responsibility and obligations, and strengthening compliance
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
checks, 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: Risks caused by imperfect internal processes, staff, systems and external
issues may cause the Company to incur losses during the course of its futures business and forex
funds business.
Control measures: The Company has not only developed relevant management systems that
clearly define the assignment of responsibility and approval process for the futures business and
forex funds businesses, but has also established a well-developed monitoring mechanism, aimed
at effectively reducing operational risk by strengthening its risk control over the business, decision-
making and trading processes.
3. Market risk: Uncertainties caused by changes in the prices of bulk commodities and exchange
rate fluctuations in foreign exchange markets could lead to greater market risk in the futures
business and forex funds business. Meanwhile, the inability to raise sufficient funds in a timely
manner in order to establish and maintain hedging positions in futures operations, or forex funds
required for performance in forex funds operations that are 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 are always
conducted by adhering to prudent operation principles. For futures business, futures transaction
volumes and applications have been strictly determined according to the requirements for
production and operations, and a stop-loss mechanism has been implemented. Furthermore, to
determine the prepared margin amount which may be required to be supplemented, a futures risk
measuring system has been established to measure and calculate the margin amount already in
use, floating profit and loss, 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 applications for funds business
should conduct a risk analysis on the conditions and environment that could affect the operating
profit and loss, evaluate the possible greatest profit and loss, and report the greatest acceptable
margin ratio or total margin amount, so that the Company can update the operating status of the
funds business on a timely basis thus ensuring the arrangement of proper funds before expiry
dates.
Changes in market
prices or fair values of
the invested
derivatives during the 1. Profit/loss from futures hedging contracts incurred during the Reporting Period was RMB-
Reporting Period. 246.049 million;
Analysis of the 2. Profit/loss from forward forex contracts incurred during the Reporting Period was RMB374.558
derivative’s fair value million;
should include the 3. Public quotations in futures market or forward forex quotations announced by Bank of China are
specific methods of used in the analysis of the derivatives fair value.
use and the relevant
assumptions and
parameters.
Whether significant
No change
changes occurred to
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
the Company’s
accounting policy and
specific accounting
principles of
derivatives in the
Reporting Period
compared to the
previous Reporting
Period
The Company's independent directors are of the view that: the futures hedging business is an
effective instrument for the Company to eliminate price volatility and implement risk prevention
Specific opinion from
measures through enhanced internal controls, thereby improving the operation and management
independent directors
of the Company; the Company's foreign exchange risk management capability can be further
on the Company’s
improved through the forex funds business, so as to maintain and increase the value of foreign
derivatives investment
exchange assets; the abovementioned investment in derivatives can help the Company to fully
and risk control
exploit its competitive advantages. Therefore, it is practical for the Company to carry out derivatives
investment business and the risks are controllable.
7. Visits received during the Reporting Period
√ Applicable □ N/A
Date Type of visit Type of visitor Discussions
Please refer to Investor Relations Activities from
25-26 January 2018 Field research Institution 25 January 2018 to 26 January 2018 on the
website of www.cninfo.com.cn
Please refer to Investor Relations Activities from
28 February-13 March 2018 Field research Institution 28 February 2018 to 13 March 2018 on the
website of www.cninfo.com.cn
8. Irregular provision of guarantees
□ Applicable √ N/A
No such cases in the Reporting Period.
9. Occupation of the Company’s funds by the controlling shareholder or its related
parties for non-operating purposes
□ Applicable √ N/A
No such cases in the Reporting Period.
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Section IV Financial Statements
1. Financial statements
Balance Sheet
Prepared by Midea Group Co., Ltd. 31 March 2018 Unit: RMB’000
31 March 31 December 31 March 31 December
ASSETS 2018 2017 2018 2017
Consolidated Consolidated Company Company
Current assets:
Cash at bank and on hand 55,377,981 48,274,200 41,687,514 29,349,926
Derivative financial assets 258,397 353,327
- -
Notes receivable 14,003,019 10,854,226
- -
Accounts receivable 19,752,160 17,528,717
- -
Advances to suppliers 1,913,028 1,672,248 24,687 23,877
Loans and advances 12,172,804 12,178,953
- -
Dividends receivable 897,040
- - 337,071
Other receivables 2,987,106 2,657,568 5,723,527 8,403,564
Inventories 26,507,604 29,444,166
- -
Including: completed but unsettled 4,754,133 4,023,467
- -
Other current assets 41,468,331 46,847,271 22,178,673 27,311,464
Total current assets 174,440,430 169,810,676 69,951,472 65,985,871
Non-current assets:
Available-for-sale financial assets 1,911,318 1,831,051 56,868 56,868
Long-term receivables 378,298 362,248
- -
Long-term equity investments 2,609,177 2,633,698 24,672,593 24,540,601
Investment properties 426,418 420,802 582,638 597,200
Fixed assets 22,238,599 22,600,724 1,204,597 1,245,998
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Construction in progress 1,130,466 879,576 46,837 36,313
Intangible assets 14,948,700 15,167,036 229,501 231,154
Goodwill 28,721,347 28,903,785
- -
Long-term prepaid expenses 854,373 859,106 129,245 121,452
Deferred income tax assets 4,211,447 4,023,334 176,738 152,069
Other non-current assets 695,953 614,822 14,029 9,700
Total non-current assets 78,126,096 78,296,182 27,113,046 26,991,355
TOTAL ASSETS 252,566,526 248,106,858 97,064,518 92,977,226
Legal representative: Principal in charge of accounting function: Head of accounting department:
Fang Hongbo Xiao Mingguang Chen Lihong
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Balance Sheet (Continued)
Prepared by Midea Group Co., Ltd. 31 March 2018 Unit: RMB’000
31 March 31 December 31 March 31 December
LIABILITIES AND SHAREHOLDERS'
2018 2017 2018 2017
EQUITY
Consolidated Consolidated Company Company
Current liabilities:
Short-term borrowings 1,456,746 2,584,102
- -
Customer deposits and deposits from
81,648 108,926
banks and other financial institutions - -
Derivative financial liabilities 126,607 90,432
- -
Notes payable 26,068,591 25,207,785
- -
Accounts payable 36,018,842 35,144,777
- -
Advances from customers 14,534,967 17,409,063
- -
Including: Settled but not completed 2,435,234 1,670,855
-
Employee benefits payable 3,884,557 5,247,500 426,550 427,806
Taxes payable 3,850,449 3,544,154 31,446 45,179
Interest payable 49,248 94,801 169,945 146,513
Dividends payable 14,659 95,317
- -
Other payables 2,960,873 3,170,405 60,893,670 57,867,535
Current portion of non-current liabilities 106,314 136,605
- -
Other current liabilities 29,806,504 26,257,990 30,886 40,830
Total current liabilities 118,960,005 119,091,857 61,552,497 58,527,863
Non-current liabilities:
Long-term borrowings 32,717,337 32,986,325
- -
Debentures payable 4,385,628 4,553,054
- -
Long-term payable 262,585 248,036
- -
Payables for specific projects 2,500 2,500
- -
Provisions 327,022 330,736
- -
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Deferred revenue 563,506 536,443
- -
Long-term employee benefits payable 2,449,055 2,465,854
- -
Deferred income tax liabilities 3,988,290 3,972,823
- -
Other non-current liabilities 1,003,466 994,059
- -
Total non-current liabilities 45,699,389 46,089,830
- -
Total liabilities 164,659,394 165,181,687 61,552,497 58,527,863
Shareholders' equity:
Share capital 6,584,023 6,561,053 6,584,023 6,561,053
Capital surplus 16,060,707 15,911,504 8,347,309 7,726,237
Less: Treasury stock (520,087) (366,842) (520,087) (366,842)
Other comprehensive income (31,306) (244,692) 105,297 33,459
General reserve 366,947 366,947
- -
Surplus reserve 3,882,232 3,882,232 3,882,232 3,882,232
Undistributed profits 52,883,466 47,627,235 17,113,247 16,613,224
Total equity attributable to shareholders of
79,225,982 73,737,437 35,512,021 34,449,363
the Company
Minority interests 8,681,150 9,187,734
- -
Total shareholders' equity 87,907,132 82,925,171 35,512,021 34,449,363
TOTAL LIABILITIES AND
252,566,526 248,106,858 97,064,518 92,977,226
SHAREHOLDERS' EQUITY
Legal representative: Principal in charge of accounting function: Head of accounting department:
Fang Hongbo Xiao Mingguang Chen Lihong
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Income Statement
Prepared by Midea Group Co., Ltd. January-March 2018 Unit: RMB’000
January-March January-March January-March January-
Item 2018 2017 2018 March 2017
Consolidated Consolidated Company Company
1. Total revenue 70,287,509 59,988,619 414,674 334,192
Including: Operating revenue 69,737,528 59,755,914 414,674 334,192
Interest income 549,959 232,704
- -
Fee and commission income 22 1
- -
2. Total Cost (63,943,697) (55,281,140) (55,101) (161,996)
Including: Cost of sales (51,869,174) (44,782,859) (14,077) (9,683)
Interest expenses (150,518) (93,334)
- -
Fee and commission
(808) (756)
expenses - -
Taxes and surcharges (403,126) (361,767) (13,485) (1,854)
Selling and distribution
(7,468,456) (6,820,223)
expenses - -
General and administrative
(3,757,242) (3,178,001) (103,980) (79,016)
expenses
Finance expenses (95,978) 183,364 76,092 (70,893)
Asset impairment loss (198,395) (227,564) 349 (550)
Add: Profit/(loss) on changes in fair
(118,467) (168,515)
value - -
Investment income 317,938 726,487 117,752 289,640
Including: Share of profit of
75,515 87,936 58,704 42,380
associates and joint ventures
Profit /(loss) on disposal of assets (13,053) (7,146) 263 (88)
Other income 224,233 250,987
- -
3. Operating profit 6,754,463 5,509,292 477,588 461,748
Add: Non-operating income 60,554 128,126 1,769 337
Less: Non-operating expenses (25,846) (47,585) (4,003) (920)
4. Total profit 6,789,171 5,589,833 475,354 461,165
Less: Income tax expenses (1,143,376) (903,968) 24,669 (79,866)
5. Net profit 5,645,795 4,685,865 500,023 381,299
Net profit from continuing operations 5,645,795 4,685,865 500,023 381,299
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Net profit from discontinued operations
- - - -
Attributable to shareholders of the
5,256,231 4,352,587 500,023 381,299
Company
Minority interests 389,564 333,278
- -
6. Other comprehensive income net of
137,056 (179,644) 71,838 (12,985)
tax
Attributable to shareholders of the
213,386 (190,696) 71,838 (12,985)
Company
(1) Other comprehensive income
items which will not be reclassified 8,985 6,365
- -
subsequently to profit or loss
(2) Other comprehensive income
items which will be reclassified 204,401 (197,061) 71,838 (12,985)
subsequently to profit or loss
1) Share of the other
comprehensive income of the investee
accounted for using equity method which 22,831 (18,790) 17,101 (12,985)
will be reclassified subsequently to profit or
loss
2) Changes in fair value of
45,797 (309,321) 54,737
available-for-sale financial assets -
3) Reclassification of held-to-
maturity investments into available-for-
- - - -
sale financial assets
4) Effective portion of cash flow
33,437 97,869
hedging profit or loss - -
5) Translation of foreign currency
102,336 33,181
financial statements - -
Attributable to minority shareholders (76,330) 11,052
- -
7. Total comprehensive income 5,782,851 4,506,221 571,861 368,314
Attributable to shareholders of the
5,469,617 4,161,891 571,861 368,314
Company
Attributable to minority shareholders 313,234 344,330
- -
8. Earnings per share
Basic earnings per share (RMB Yuan) 0.80 0.67 N/A N/A
Diluted earnings per share (RMB Yuan) 0.79 0.67 N/A N/A
Legal representative: Principal in charge of accounting function: Head of accounting department:
Fang Hongbo Xiao Mingguang Chen Lihong
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Cash Flow Statement
Prepared by Midea Group Co., Ltd. January-March 2018 Unit: RMB’000
January-March January-March January-March January-
Item 2018 2017 2018 March 2017
Consolidated Consolidated Company Company
1. Cash flows from operating activities
Cash received from sales of goods or
55,069,088 47,125,873
rendering of services - -
Net increase in customer deposits and
deposits from banks and other financial
- 34,128 - -
institutions
Net decrease in loans and advances 6,203
- - -
Cash received from interest, fee and
465,657 246,210
commission - -
Refund of taxes and surcharges 1,855,685 1,384,056
- -
Cash received relating to other
1,555,171 1,160,334 6,054,301 6,368,959
operating activities
Sub-total of cash inflows 58,951,804 49,950,601 6,054,301 6,368,959
Cash paid for goods and services (35,207,473) (26,421,269)
- -
Net increase in loans and advances (349,405)
- - -
Net decrease in customer deposits and
deposits from banks and other financial (27,278)
- - -
institutions
Net increase in deposits with central
(1,422,269) (317,043)
bank - -
Cash paid for interest, fee and
(151,332) (94,090)
commission - -
Cash paid to and on behalf of
(7,569,431) (6,338,017) (43,024) (12,672)
employees
Payments of taxes and surcharges (2,826,238) (2,729,906) (13,485) (35,399)
Cash paid relating to other operating
(7,318,691) (6,692,300) (43,781) (2,466,800)
activities
Sub-total of cash outflows (54,522,712) (42,942,030) (100,290) (2,514,871)
Net cash flows from operating activities 4,429,092 7,008,571 5,954,011 3,854,088
2. Cash flows from investing activities
Cash received from disposal of
11,755,659 26,720,523 6,507,371 17,024,406
investments
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Cash received from returns on
470,848 490,466 834,942 654,204
investments
Net cash received from disposal of fixed
assets, intangible assets and other long- 23,595 13,902 12,049
-
term assets
Net cash received from disposal of
subsidiaries and other business units - - - -
Cash received relating to other investing
activities - - - -
Sub-total of cash inflows 12,250,102 27,224,891 7,342,313 17,690,659
Cash paid to acquire fixed assets,
intangible assets and other long-term (927,703) (510,405) (112,978) (36,702)
assets
Cash paid to acquire investments (18,424,204) (28,410,748) (2,302,699) (22,291,936)
Net cash paid to acquire subsidiaries
(148,287) (25,213,227)
and other business units - -
Cash paid relating to other investing
activities - - - -
Sub-total of cash outflows (19,500,194) (54,134,380) (2,415,677) (22,328,638)
Net cash flows from investing activities (7,250,092) (26,909,489) 4,926,636 (4,637,979)
3. Cash flows from financing activities
Cash received from capital contributions 1,013,304 161,107 491,953 161,107
Including: Cash received from capital
contributions by minority shareholders of
521,351 - - -
subsidiaries
Cash received from borrowings 978,979 29,829,202 - 1,600,000
Cash received from issuing short-term
financing bonds - - - -
Cash received relating to other financing
activities - - - -
Sub-total of cash inflows 1,992,283 29,990,309 491,953 1,761,107
Cash repayments of borrowings (2,138,653) (1,153,671)
- -
Cash payments for short-term financing
bonds - - - -
Cash payments for interest expenses
(325,629) (189,407) (74,404) (125,351)
and distribution of dividends or profits
Including: Cash payments for
dividends or profit to minority shareholders (80,657) (91,200)
- -
of subsidiaries
Cash payments relating to other
(1,782,206) (95,375)
financing activities - -
Sub-total of cash outflows (4,246,488) (1,438,453) (74,404) (125,351)
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Interim Report for the First Quarter 2018 of Midea Group Co., Ltd.
Net cash flows from financing activities (2,254,205) 28,551,856 417,549 1,635,756
4. Effect of foreign exchange rate
(357,924) 48,314
changes on cash and cash equivalents - -
5. Net decrease in cash and cash
(5,433,129) 8,699,252 11,298,196 851,865
equivalents
Add: Cash and cash equivalents at
21,831,653 12,513,730 25,978,543 8,174,915
beginning of period
6. Cash and cash equivalents at end of
16,398,524 21,212,982 37,276,739 9,026,780
period
Legal representative: Principal in charge of accounting function: Head of accounting department:
Fang Hongbo Xiao Mingguang Chen Lihong
2. 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
28 April 2018
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