WUXI LITTLE SWAN COMPANY LIMITED
INTERIM REPORT 2009
August 18, 2009Wuxi Little Swan Company Limited
Interim Report 2009
Contents
Section I Important Notice……………………………………………………………3
Section II Company Profile……………………………………………………….…..3
Section III Changes in Share Capital and Shares Held by Principal Shareholders…...5
Section IV Particulars about Directors, Supervisors and Senior Executives………….6
Senior V Report of the Board of Directors……………………………………………7
Section VI Significant Events………………………………………………………..10
Section VII Financial Report……………………………………………………...….13
Section VIII Documents Available for Reference……………………………......….13
Attachment Financial Report………………………………………….………….….14Section I Important Notice
The Board of Directors, the Supervisory Committee as well as directors, supervisors and
senior executives of Wuxi Little Swan Company Limited (hereinafter referred to as the
Company) warrant that this report does not contain any false or misleading statements or
omit any material facts and collectively and individually accept the responsibilities for
the truthfulness, accuracy and completeness of the whole contents.
Chairman of the Board Mr. Fang Hongbo, General Manager Mr. Chai Xinjian and CFO
Mr. Zhang Zhaofeng hereby confirm that the financial report enclosed in the interim
report is true and complete.
The interim financial report of the Company has not been audited.
Section II Company Profile
I. Basic information
1. Legal Name of the Company in Chinese 无锡小天鹅股份有限公司
Legal Name of the Company in English Wuxi Little Swan Company Limited
2. Legal Representative: Mr. Fang Hongbo
3. Secretary of the Board of Directors Ms. Zhou Sixiu
Contact Address No. 67, Huiqian Road, Wuxi Jiangsu
Post Code: 214035
Tel: 0510-81082407
Fax: 0510-83720879
E-mail: zhousx@littleswan.com.cn
Securities Affairs Representative: Mr. Yao Yanfeng
Contact Address: No. 67, Huiqian Road, Wuxi, Jiangsu
Post Code: 214035
Tel: 0510-81082280
Fax: 0510-83720879
E-mail: yaoyf@littleswan.com.cn
4. Registered Address: No. 1 Hanjiang Road, National
High-Tech Industrial
Post Code: 214028
Office Address: No. 67, Huiqian Road, Wuxi, Jiangsu
Post Code: 214035
International Website of the Company: http://www.littleswan.com
E-mail of the Company: info@littleswan.com.cn
5. Designated Newspaper for Information Disclosure of the Company: Securities Times
and Hong Kong Ta Kung Pao
Internet Web site for publishing the Interim Report Designated by CSRC:
http://www.cninfo.com.cn
Place Where the Annual Report is Prepared and Placed: Securities Department of the
Company
6. Stock Exchange Listed with: Shenzhen Stock ExchangeShort Form of the Stock: Little swan A, Little swan B
Stock Code: 000418, 200418
7. Other Relevant Information
Registration date after change: December 23, 2008
Registration place after change: Jiangsu Province Administrative Bureau
for Industry and Commerce
Registration code of enterprise corporate Business license: 320200000014723
Registration code of taxation (National Revenue): 320200704046760
Registered code of taxation (Local Tax): 320200704046760
II. Main accounting data and financial indices
Unit: RMB Yuan
At the end of
report period
At the end of last
year
Increase/decrease of the
period-end compared with the
period-end of last year (%)
Total assets 3,113,654,546.37 3,339,288,243.96 -6.76%
Owners’ equity ( or shareholders’ equity) 1,714,157,772.28 1,606,316,559.12 6.71%
Net assets per share 3.13 2.93 6.83%
The report period
(Jan. -Jun.)
The same period
of last year
Increase/decrease year-on-year
(%)
Operating profit 59,481,300.05 102,551,992.34 -42.00%
Total profit 71,662,982.38 98,575,705.75 -27.30%
Net profit 67,392,307.11 66,737,563.31 0.98%
Net profit after deducting non-recurring
gains and losses
55,821,900.01 69,614,287.82 -19.81%
Earnings per share-basis 0.12 0.12 0.00%
Earnings per share-diluted 0.12 0.12 0.00%
Return on equity (%) 3.93% 4.08% -0.15%
Net cash flow arising from operating
activities
103,869,295.30 -34,998,529.03 396.78%
Net cash flow per share arising from
operating activities
0.19 -0.06 396.78%
Items of non-recurring gains and losses
Unit: RMB Yuan
Items of non-recurring gains and losses Amount
Gains on disposal of non-current assets 14,568,429.90
Government grant measured into current gains and losses 3,010,000.00
Gains from change in fair value of financial assets or liabilities which was measured with
fair value and its changes recorded in current gains and losses
1,175,392.50
Other items in non-operation income 1,849,722.76
Losses on disposal of non-current assets -5,569,535.94
Other items in non-operation expense -1,676,934.40
Income tax -1,897,285.87
Gains and losses influenced minority shareholders’ right and interests 110,618.15Total 11,570,407.10
Differences between PRC GAAP and IFRS
Unit: RMB Yuan
PRC GAAP IFRS
Net profit 67,392,307.11 67,392,307.11
Net assets 1,714,157,772.28 1,714,157,772.28
Explanation on difference No difference
Supplemental income statement calculated in accordance with Editing and Reporting
Rules Regarding Information Disclosure for Companies Publicly Issuing Securities (No.
9) promulgated by CSRC:
Profit in the report period Return on equity (%) Earnings per share (Yuan/ share)
Fully diluted
Weighted
average
Basic earnings
per share
Diluted earnings
per share
Net profit attributable to shareholders holding
ordinary shares of the Company
3.93 4.11 0.12 0.12
Net profit attributable to shareholders holding
ordinary shares of the Company after deducting
non-recurring gains and losses
3.26 3.40 0.10 0.10
Section III Changes in Share Capital and Shares Held by Principal
Shareholders
I. Statement on changes in shares
Before the change Increase/decrease in this time (+, -) After the change
Number
Proportion
(%)
Issuan
ce of
new
share
Bonus
shares
Capitalizati
on of
public
reserve
Others
Sub-tota
l
Number
Proportio
n (%)
I. Shares subject to moratorium 143,825,935 26.26% 143,825,935 26.26%
1. Shares held by state
2. Shares held by state-owned
corporation
3. Shares held by other domestic
investors
143,825,935 26.26% 143,825,935 26.26%
Including: shares held by domestic
non stated-owned corporation
143,825,935 26.26% 143,825,935 26.26%
Shared held by domestic natural
person
4. Shares held by overseas investors
Including: shares held by overseas
corporationShares held by overseas natural
person
5. Shares held by senior executives
II. Shares not subject to moratorium 403,829,825 73.74% 403,829,825 73.74%
1. RMB ordinary shares 212,793,953 38.86% 212,793,953 38.86%
2. Domestically listed overseas shares 191,035,872 34.88% 191,035,872 34.88%
3. Overseas listed foreign shares
4. Others
III. Total shares 547,655,760 100.00% 547,655,760 100.00%
II. Particulars about shares held by the top ten shareholders and the top ten shareholders
holding shares not subject to trading moratorium
Unit: Share
Total number of shareholders 44,486
Particulars about shares held by the top ten shareholders
Name of shareholders
Nature of
shareholders
Proportio
n (%)
Total number
of shares held
(share)
Number of
shares subject
to moratorium
Number of
shares pledged
or frozen
Guangdong Midea Electric Appliances Co.,
Ltd.
Domestic
non-state-owned
corporation
24.01% 131,510,011
TITONI INVESTMENTS
DEVELOPMENT LTD.
Foreign corporation 5.63% 30,851,714
GREATER CHINA DEVELOPMENT
CO., LTD.
Foreign corporation 5.52% 30,212,211
Wuxi Finance Bureau
State-owned
corporation
4.34% 23,756,513
GAOLING FUND,L.P. Foreign corporation 2.94% 16,102,749
ICBC-Penghua High Quality Governance
Securities Investment Fund (LOF)
Domestic corporation 2.05% 11,202,844
Bank of China-China Merchant Xianfeng
Fund
Domestic corporation 1.83% 10,009,058
National Social Security 100 Portfolio Domestic corporation 1.42% 7,788,815
Bank of China-AIG Huatai Positive Growth
Mixed Fund
Domestic corporation 1.33% 7,277,814
Shanghai HongKong Wanguo Securities Foreign corporation 1.12% 6,119,000
Particulars about shares not subject to moratorium held by the top ten shareholders
Name of shareholders
Number of shareholders not
subject to moratorium
Type of shares
TITONI INVESTMENTS DEVELOPMENT LTD. 30,851,714
Domestically listed
foreign shares
GREATER CHINA DEVELOPMENT CO., LTD. 30,212,211
Domestically listed
foreign shares
Wuxi Finance Bureau 23,756,513 RMB ordinary shareGAOLING FUND,L.P. 16,102,749
Domestically listed
foreign shares
ICBC-Penghua High Quality Governance Securities Investment Fund (LOF) 11,202,844 RMB ordinary share
Bank of China-China Merchant Xianfeng Fund 10,009,058 RMB ordinary share
National Social Security 100 Portfolio 7,788,815 RMB ordinary share
Bank of China-AIG Huatai Positive Growth Mixed Fund 7,277,814 RMB ordinary share
Shanghai HongKong Wanguo Securities 6,119,000
Domestically listed
foreign shares
VALUE PARTNERS CLASSIC FUND 5,801,458
Domestically listed
foreign shares
Explanation on associated relationship
among the above shareholders or
acting-in-concert
TITONI INVESTMENTS DEVELOPMENT LTD. was overseas wholly-owned shareholding
subsidiaries of Guangdong Midea Electric Appliances Co., Ltd., they are acting-in-concert
III. Number of shares held by the top ten shareholders subject to moratorium and
trading moratorium
Unit: Share
No. Name of shareholders
Number of shares
held subject to
moratorium
Date of listing
for trade
Additional shares
could list for trade
Trading
moratorium
1 Guangdong Midea Electric Appliances Co., Ltd. 131,510,011 7 Aug. 2009 131,510,011
Expiration of
commitment
2 Wuxi Guolian Development Group Co., Ltd 3,410,964 7 Aug. 2009 3,410,964
Expiration of
commitment
3
China Technology International Trust Investment
Ltd.
1,080,000 7 Aug. 2007 1,080,000 Note 1
4 Jiangyin Sanjin Computer Co., Ltd. 864,000 7 Aug. 2007 864,000 Note 1
5 FUSHUN SPECIAL STEEL (GROUP) CO., LTD. 864,000 7 Aug. 2007 864,000 Note 1
6 Jiangyin Shengang Hardware Casting Plant 756,000 7 Aug. 2007 756,000 Note 1
7
Yangjiang Huayang Construction Development Co.,
Ltd.
648,000 7 Aug. 2007 648,000 Note 1
8
Wuxi Yuandong Cold Rolling Metal Band
Cooperation Company
540,000 7 Aug. 2007 540,000 Note 1
9 Shenzhen Shencai Securities Business Department 345,600 7 Aug. 2007 345,600 Note 1
10 China Southern Securities Co., Ltd Nanjing Branch 324,000 7 Aug. 2007 324,000 Note 1
Guangdong Midea Electric Appliances Co., Ltd. and Wuxi Guolian Development Group
Co., Ltd has implemented commitment that no listing or selling in Shenzhen Stock
Exchange may be taken within 36 months as of the date when the original non-tradable
A-shares of the Company held by this company obtain the trading right. The
commitments expired on 7 Aug. 2009, and the above two shareholders was handling
procedure of releasing from trading moratorium.
Note 1: This company should ask for the approval of non-tradable shareholders paying
consideration in advance on behalf of it (consideration in advance would be repay by therelevant non-tradable shareholders) before the Board of Directors of the Company put
the listing and trading appliance of the said shares to Shenzhen Stock Exchange.
Section IV Particulars about Directors, Supervisors and Senior Executives
I. In the report period, there was no change on shares held by directors, supervisors and
senior executives of the Company.
II. Particulars about engagement and dismission of directors, supervisors and senior
executives
(1) Changes in directors
On 26 Jun. 2009, director Mr. Wang Jianguo resigned from his posts of directors or
other posts in the Board due to changes work transfer.
On 21 Jul. 2009, the Company held the 1st Extraordinary Shareholders’ General Meeting
2009, at which reviewed and approved Proposal on Director Election of the Company
and elected Mr. Zhang Zhaofeng as director of the 5th Board of Director.
(2) Changes in supervisors
On 26 Jun. 2009, supervisor Mr. Li Jiankang and staff representative Mr. Li Jianzhong
resigned from their posts of directors or other posts in the Supervisory Committee due
to changes work transfer.
On 30 Jun. 2009, the Company held the 3rd Meeting of Team Leader of Staff
Representative and Special Principal of Teams, and elected Mr. Li Kai as staff
representative supervisor of the 5th Supervisory Committee.
On 21 Jul. 2009, the Company held the 1st Extraordinary Shareholders’ General Meeting
2009, at which reviewed and approved Proposal on Supervisor Election of the Company
and elected Mr. Le Xiang’an as director of the 5th Supervisory Committee.
(3) Changes in senior executives
No change
Section V Report of the Board of Directors
I. Discussion and Analysis on operation
1. Business scope
Business scope: manufacture, sales, after-sales service of household appliances, industrial
ceramic, environment-friendly dry-cleaning equipment, cleaning machinery equipment,
follow-up finishing equipment and spare parts manufacturing; washing services;
machining; handle self-support and act as an agency for import & export of various
kinds of merchandise and technologies (excluding merchandise and technologies
authorized by the state or banned from import & export); technical service for
household appliances and contracting foreign engineering (operated with valid
qualification certificate).
2. Analysis and discussion
In the first half year of 2009, the Company experienced international financial crisis and
recession of global economy. Along with implementation on policy of stimulating
domestic demand, revival of macro economy, consumption demand rose again. TheCompany focused on the washing machine business as the core business, endangered
drum washing machine, strengthened and promoted Bolun automatic washing machines,
made use of state policy such as pushing household appliances to rural market, actively
expanded tertiary and quartus market and gained good achievements. During the report
period, the Company realized operating income amounting to RMB 1.902 billion, net
profit attributable to shareholders of parent company amounting to RMB 67,392,300.
Of which, sales income from main business of washing machine amounted RMB 1.586,
down by 6.78% year-on-year; net profit from main business of washing machine
amounted RMB 104 million, with an increased over 50% year-on-year.
In the report period, due to liquidation of non-main business, separation of refrigerator
and decrease of income from subsidiary companies, operating revenue decreased 21.53%
compared with the same period of last year, total income from investment decreased
RMB 63.62 million and loss from refrigerator amounted RMB 9.45 million, which
influenced the whole performance of the Company to a certain extent.
In the report period, business of high ended drum washing machines increased rapidly,
proportion of income from domestic sales of drum washing machines in total income
rose to 15% from 5% at the same period of last year; market occupation ratio has
entered to the head of industry although it was launched for one year.
In the second half year of 2009, the Company will complete remove of “retreat from
city and excess into garden” and take the chance. The Company will continue to adjust
product structure, optimize technical distribution and promote reasonable allocation of
resource; actively exploit domestic market, strengthen construction of specialty store and
channel and promote occupation ratio of domestic market; meanwhile, share oversea
clients and channel resource with foreign marketing of Media, enhance cooperation with
clients of European and American market; insist on technology innovation, enlarge
investment on research & development and improve core competitive power; perfect
corporate structure, further push decentralized management, enhance unit liability of
operation, continually inspire enterprise vitality. With fiercer competitive pattern of
household appliance industry, we will overcome difficulties, adhere to the domestic and
foreign market as guide and production, research and marketing as operation direction,
make effort to realize stable increase of sales income and profit, and return to all
shareholders with good performance.
Main items of accounting items and financial indices
Items
Amount in
current period
Amount at the
year-begin
Change
ratio
Inventories 384,052,952.51 694,973,687.18 -44.74%
Fixed assets 341,176,354.84 502,382,574.01 -32.09%
Construction in progress 143,555,141.96 14,371,339.58 898.90%
Notes payable 30,994,702.20 114,000,000.00 -72.81%
Accounts received in advance 112,144,210.27 225,481,656.23 -50.26%
Taxes payable 16,927,764.86 36,310,470.23 -53.38%
Items
Amount in
current period
The same period
of last year
Change
ratio
Operating income 1,902,488,624.24 2,424,428,981.79 -21.53%Operating cost 1,496,548,611.22 1,937,796,658.15 -22.77%
Business tax and surcharges 10,960,213.77 7,499,547.70 46.14%
Selling expenses 238,060,212.18 299,080,889.25 -20.40%
Administrative expense 67,681,769.63 80,164,564.81 -15.57%
Financial expense 2,212,812.20 29,739,572.25 -92.56%
Investment income -22,871,620.55 40,749,752.70 -156.13%
Non-operating income 19,428,152.67 8,109,748.72 139.57%
Non-operating expense 7,246,470.34 12,086,035.31 -40.04%
Income tax expense 8,954,660.96 27,776,218.81 -67.76%
Net profit attributable to shareholders of parent company 67,392,307.11 66,737,563.31 0.98%
Minority interest -4,683,985.69 4,061,923.63 -215.31%
Net cash flow arising from operating activities 103,869,295.30 -34,998,529.03 396.78%
Net cash flow arising from investment activities 34,870,902.99 6,682,752.81 421.80%
Increase of cash and cash equivalent 130,730,092.12 -41,686,481.22 413.60%
Analysis on reason for change:
(1) Inventories decreased because book value of inventories decreased RMB 108935700
due to sales and shutting off subsidiary companies. Meanwhile, influenced by external
macro situation and industry, the Company accelerated turnover of inventories and
strictly controlled inventories scale.
(2) Decrease of fixed assets was mainly because the Company transferred all shares of
Little Swan (Jingzhou) Electric Appliances Co., Ltd and Wuxi Little Swan High Grade
Casting Co., Ltd and closed up P.T. Little swan Prima Industries and Wuxi Little Swan
Jiangbo Mould Manufacturing Co., Ltd.
And original value and accumulative depreciation of fixed assets was also transferred, of
which, transferred original value of fixed assets amounted to 254,393,700, accumulative
depreciation amounted RMB 104,458,000 and net amount of fixed assets totaled RMB
149,935,700.
(3) Expenditure of construction in progress increased, because project of “retreat from
city and excess into garden” was in phase of main construction, investment on relevant
construction in progress increased and the project was expected to completely basically
on 31 Oct. 2009.
(4) Decrease of notes payable was mainly because the Company transferred Little Swan
Jingzhou Electric Appliance Co., Ltd. and notes payable amounting to RMB 60 million
has been also transferred out.
(5) Accounts received in advance decreased due to influence of macro financial policy
and monetary policy from the country.
(6) Reduction of taxes payable was because value added tax payable decreased due to
influence of sales of products and production cycle.
(7) Business tax and surcharges increased because urban maintenance and construction
tax increased due to increase of turnover tax paid in current period.
(8) Reason for large decrease of financial expenses: 1. decrease of short-term borrowings
caused interest expenditure decreased synchronously; 2. fluctuation range of exchange
rate of RMB became narrow and relevant gains and losses arising from foreign currency
assets decreased.(9) Investment income declined by a large margin due to loss from disposal of subsidiary
companies and profit decline of joint stock company influenced by external macro
economy.
(10) Non-operating income increased because the Company optimized products
structure, sold part mould of double cylinder washing machine and received subsidiaries
for technology innovation from the government.
(11) The decrease of non-operational expenses was mainly because the local government
canceled the grain and material adjustment fund.
(12) The significant reduction of income tax expenses was mainly due to that the parent
company and the subsidiaries—Wuxi Little Swan General Electric Co., Ltd. and Wuxi
Filin Electronics Co., Ltd.—were rated as high-tech enterprises and thus enjoyed a
reduction of income tax rate from 25% to 15%.
(13) The gains of minority shareholders decreased mainly due to the change of the
Company’s profit structure. And the operation profit increased over the same period of
last year after deducting the investment gains for the parent company in the report
period.
(14) The net cash flows from operating activities increased considerably because the
Company strengthened its inventory management and expense control, which
contributed to the significant reduction of goods purchases and operational expenses.
(15) The rise of the net cash flows from investment activities was mainly resulted from
the reduction of cash expenses for fixed asset investments.
(16) The significant increase of cash and cash equivalents was due to the increase of net
cash flows from operating activities and investment activities.
II. Operation of the Company:
1. Main businesses classified according to industries or products
Unit: RMB’0000
Main businesses classified according to industries
Industries/
products
Operation
income
Operation cost
Gross profit
rate (%)
Increase/
decrease of
operation
income over
same period of
last year (%)
Increase/
decrease of
operation cost
over same
period of last
year (%)）
Increase/
decrease of
gross profit
rate over same
period of last
year (%)
Household
appliances
183,240.51 143,709.61 22% -13% -13.10% -0.24%
Other industries 7,008.35 5,945.25 15% -77% -79.07% 6.99%
Main businesses classified according to products
Washing
machines
158,553.25 119,084.97 24.89% 6.78% 5.68% 0.78%
Refrigerators 17,763.23 17,848.22 -0.48% -59.46% -50.88% -17.56%
Others 13,932.38 12,721.68 8.69% -72.21% -71.58% -2.04%
Total 190,248.86 149,654.86 21.34% -21.53% -22.77% 1.27%2. Main businesses classified according to regions
Unit: RMB’0000
Regions Operation income
Increase/ decrease over same period of last year
(%)
Domestic 137,230.17 -26.07%
Overseas 53,018.69 -6.68%
3. Other businesses that had significant influence on net profit in report period
(1) In the report period, the Company transferred its 51% shares of Little Swan
(Jingzhou) Electric Appliances Co., Ltd., which led to an investment loss about RMB 32
million and thus had significant influence on the net profit.
(2) In the report period, Boxiwei Household Appliances Co., Ltd., the Company’s joint
stock subsidiary, experienced a considerable decrease of profit, which caused a
year-on-year decrease of the Company’s equity investment gains about RMB 24 million
and thus had significant influence on the net profit of the Company.
4. In the report period, the Company adjusted the structure of its main businesses by
reducing the refrigerator business. As a result, the income generated by the refrigerator
business was down by 59.46% over the same period of last year, with the proportion of
washing machine business income in the total business income rising from 67% at the
same period of last year to 87% in the report period.
5. In the report period, the gross profit rate of the washing machine business was up by
0.78% compared with the same period of last year. As for the refrigerator business, the
products sold in the report period were mainly those to be disposed due to the business
shift, and the relevant gross profit rate was thus reduced by 17.56% over the same period
of last year.
6. In the report period, the profit structure showed a change from that of the previous
year. Due to the loss of subsidiary disposal and the profit decline of invested subsidiaries,
the investment gains of the Company registered a year-on-year decrease of RMB 64
million, which brought down the operation profit by 42% compared to the same period
of last year; meanwhile, the non-recurring income decreased over the same period of last
year due to the improved profit structure, the sale of some two-track washing machine
modules and the arrival of government subsidy for technological innovation.
Consequently, the net profit attributable to the parent company was basically maintained
at the same level of that in the same period of last year.
III. Actual progress and profits of investments in report period
1. In the report period, the Company did not raise funds for use, nor there occurred such
funds carried down from previous periods to the report period.2. Use of non-raised funds
In light of the Wuxi government’s industrial development planning of “Moving Factories
from Urban Areas to Industrial Parks”, the Company had started to set up a washing
machine industrial park in Wuxi New and High-tech Development Zone, with the input
about RMB 230 million to factory building and other basic construction. The relocation
was expected to be completely accomplished in Oct. 2009, with 95% completed by the
date of this report’s disclosure.
SECTION VI SIGNIFICANT EVENTS
I. Corporate governance
In the report period, according to the Company Law, Securities Law, Code of Corporate
Governance for Listed Companies, Stock-listing Rules of Shenzhen Stock Exchange and
other relevant laws and regulations, the Company kept perfecting its corporate
governance structure, building a modern enterprise system and operating in a more
regular way. Up until now, the actual corporate governance of the Company is basically
in line with the requirements of regulatory documents issued by CSRC concerning listed
company governance.
II. The Company did not distribute profits or turn public reserves to share capital for the
interim period of 2009.
III. In the report period, the Company was not involved in any significant lawsuits or
arbitrations, nor there existed such lawsuits or arbitrations carried down from previous
periods to the report period.
IV. There occurred no significant asset acquisition in the report period.
V. Significant related transactions in report period
1. The Proposal on Routine Related Transactions for 2009 was reviewed and approved at
the 27th Meeting of the 5th Board of Directors held in Wuxi on 4 Mar. 2009. According
to the said proposal, the Company was estimated to purchase goods valued at RMB 322
million from and sell goods equal to RMB 750 million to its related parties in the year
2009.
2. The Proposal on Routine Related Transactions in 2009 and the Proposal on a Related
Transaction Concerning Trademark License were reviewed and approved at the 28th
Meeting of the 5th Board of Directors held in Wuxi on 27 Mar. 2009. A related
transaction involving RMB 35 million was expected to occur between the Company and
Wuhu Annto Logistics Co., Ltd.. And the Trademark License Contract was signed
between the Company and Hefei Midea Rongshida Refrigerator Co., Ltd., authorizing the
latter to use the Company’s trademark on its refrigerators and freezers.3. The Proposal on Asset Acquisition and Relevant Related Transaction was reviewed
and approved at the 29th Meeting of the 5th Board of Directors held in Wuxi on 24 Apr.
2009. The Company purchased the manufacturing equipments of spinning washing
machines and relevant assets from Hefei Rongshida Washing Equipment Manufacturing
Co., Ltd. at a price of RMB 26,334,200.
4. The Proposal on Increasing Amount of Routine Related Transactions in 2009 was
reviewed and approved at the 30th Meeting of the 5th Board of Directors held in Wuxi on
26 May 2009. An estimated amount of RMB 450 million was increased in the purchase
from Hefei Rongshida Washing Equipment Manufacturing Co., Ltd..
For more details of the aforesaid related transactions, please refer to the public notices
on related transactions of the Company published on Securities Times and Hong Kong
Ta Kung Pao.
5. Please refer to the financial report for other related transactions.
VI. Significant contracts and their implementation:
1. In the report period, the Company did not hold in trust, contract or lease assets of
other companies, or vice versa.
2. Provisions of guarantees in report period
Unit: RMB’0000
External guarantees provided by the Company (excluding those for subsidiaries)
Name of guaranteed
object
Date of occurrence (date of
agreement signing)
Amount of
guarantee
Type of
guarantee
Term of
guarantee
Implementation
completed or
not
Whether a guarantee
for related party (Yes
or No)
Total amount of guarantees incurred in report period 0.00
Closing balance of guarantee (A) 0.00
Guarantees provided by the Company for its subsidiaries
Total amount of guarantees for subsidiaries incurred in report period 2,644.68
Closing balance of guarantees for subsidiaries (B) 2,644.68
Balance of guarantees provided by the Company (including those for subsidiaries)
Total guarantee amount（A+B） 2,644.68
Proportion of total guarantee amount in net assets 1.5%
Including:
Amount of guarantees provided for shareholders, actual controller and other related
parties（C）
0.00
Amount of guarantees directly or indirectly provided for parties with asset-liability ratio
over 70%（D）
1,100
Amount of total guarantee amount exceeding 50% of net assets（E） 0.00
Total of the above three guarantee amount*（C+D+E） 1,100
VII. In the report period, Guangdong Midea Electric Appliances Co., Ltd. committedthat it would not sell over 5% of the Company’s shares via Shenzhen Stock Exchange
within six months since the cancellation of trading moratorium on relevant shares; where
Midea decreased 5% or over 5% shares of the Company held by it within six months
since the first reduction of holdings, Midea would disclose the suggestive public notice
on selling shares subject to trading moratorium through the Company two trading days
before its first reduction of holdings.
VIII. In the report period, the Company, the Board of Directors and the directors
received no investigations, administrative punishment and criticism by circular from
CSRC, and no punishment from other administrative authorities or open criticism from
the stock exchange.
IX. Special explanation and independent opinions of independent directors on related
parties’ fund occupation and external guarantees provided by the Company
According to the Circular of CSRC on Certain Issues Concerning Regulating Capital
Flows between Listed Companies and Their Related Parties and Provision of External
Guarantees by Listed Companies (ZJF Zi [2003] No.56) and the Circular on Further
Regulating Capital Flows between Listed Companies and Principal Shareholders and
Other Related Parties ((SZJGS Zi [2008] No.325), the independent directors conducted
careful examination on the related parties’ capital occupation of the Company and
provision of external guarantees by the Company, and issued their relevant special
explanation and independent opinions as follows:
1. In the report period, there existed no capital occupation by the principal shareholder
and other related parties of the Company; there existed no such capital flows or
occupation as undisclosed by the Company; nor there occurred such capital flows or
occupation in disguised form.
2. Up until 30 Jun. 2009, the Company had not been involved in provision of guarantees
for the controlling shareholder and other related parties.
3. Up until 30 Jun. 2009, the debt guarantees directly or indirectly provided by the
Company for parties with asset-liability ratio over 70% stood at RMB 11 million, which
were all provided for the Company’s subsidiaries.
X. Equity of other listed companies held by the Company
Unit: (RMB) Yuan
Stock Code
Short form of
stock
Amount of
initial
investment
Proportion in
equity of the
held party
Book value at
period-end
Profits or losses
in report
period
Changes of owners’
equity in report
period
601328
Bank of
Communications
1,500,000.00 0.01% 11,335,481.00 0.00 4,684,787.00
600682 Nanjing Xinbai 104,300.00 0.02% 383,376.00 0.00 143,976.00400038 Huaxin Gaoke 100,300.00 0.01% 460,425.00 0.00 305,193.00
Total 1,704,600.00 - 12,179,282.00 0.00 5,133,956.00
XI. Researches, interviews and visits received in report period
Reception time Reception place Reception way Visitor
Main discussion and materials provided
by the Company
10 Feb. 2009
Meeting Room
of the Company
Field research Orient Securities Co., Ltd. Overall operation of the Company
10 Feb. 2009
Meeting Room
of the Company
Field research China Galaxy Securities Co., Ltd. Overall operation of the Company
10 Feb. 2009
Meeting Room
of the Company
Field research Guosen Securities Co., Ltd. Overall operation of the Company
9 Mar. 2009 By telephone
Telephone
communication
Citic Securities Co., Ltd.
Overall operation of the Company in
the year 2008
3 Apr. 2009
Meeting Room
of the Company
Field research
Changsheng Fund Management Co.,
Ltd.
Particulars about production and
operation of the Company
3 Apr. 2009
Meeting Room
of the Company
Field research
MillenniumGlobal Investments
Limited
Particulars about production and
operation of the Company
10 Apr. 2009 By telephone
Telephone
communication
Shanghai Shenyin Wanguo Securities
Research & Consulting Co., Ltd.
Regional sales of the Company in 2008
12 May 2009
Meeting Room
of the Company
Field research GF Securities Co., Ltd.
Particulars about operation, systems
and channels of the Company
12 May 2009
Meeting Room
of the Company
Field research Guolian Securities Co., Ltd.
Particulars about operation, systems
and channels of the Company
XII. Information disclosed by the Company in report period:
Public
Notice No.
Contents of public notice
Date of
disclosure
Newspapers for disclosure
2009-01 Public Notice on Earnings Estimate 20 Jan. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-02
Public Notice on Resolutions of the 27th Meeting of the 5th
Board of Directors
6 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-03
Public Notice on Accumulative Amount of Guarantees
Provided for Holding Subsidiaries
6 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-04 Public Notice on Routine Related Transaction in 2009 6 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-05
Public Notice on Convening 2008 Annual Shareholders’
General Meeting
6 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-06
Summary of 2008 Annual Report of Wuxi Little Swan Co.,
Ltd.
6 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao2009-07
Public Notice on Resolutions of the 10th Meeting of the 5th
Board of Supervisors
6 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-08
Public Notice on the Company and its Subsidiaries Being
Chosen as Candidates for Title of State High-tech
Enterprises
9 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-09
Public Notice on Resolutions of 2008 Annual Shareholders’
General Meeting
30 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-10
Public Notice on Resolutions of the 28th Meeting of the 5th
Board of Directors
30 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-11
Public Notice on Transferring 51% Equity of Little Swan
(Jingzhou) Electric Appliances Co., Ltd.
30 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-12 Public Notice on Routine Related Transaction in 2009 30 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-13
Public Notice on Related Transaction Concerning Trademark
License
30 Mar. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-14
Public Notice on Resolutions of the 29th Meeting of the 5th
Board of Directors
27 Apr. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-15 1st Quarterly Report in 2009 27 Apr. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-16
Public Notice on Asset Acquisition & Relevant Related
Transaction
27 Apr. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-17
Public Notice on Resolutions of the 30th Meeting of the 5th
Board of Directors
27 May 2009 Securities Times and Hong Kong Ta Kung Pao
2009-18 Public Notice on Routine Related Transaction in 2009 27 May 2009 Securities Times and Hong Kong Ta Kung Pao
2009-19
Public Notice on the Company’s Subsidiary Being Rated as
State High-tech Enterprise
2 Jun. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-20 Public Notice on Resignation of Director and Supervisor 30 Jun. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-21
Public Notice on Resolutions of the 11th Meeting of the 5th
Board of Supervisors
30 Jun. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-22 Public Notice on Electing Staff Representative Supervisor 30 Jun. 2009 Securities Times and Hong Kong Ta Kung Pao2009-23
Public Notice on Resolutions of the 31st Meeting of the 5th
Board of Directors
30 Jun. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-24
Public Notice on Convening the 1st Provisional Shareholders’
General Meeting in 2009
30 Jun. 2009 Securities Times and Hong Kong Ta Kung Pao
2009-25
Public Notice on the Company and its Subsidiaries Being
Titled “State High-tech Enterprise”
30 Jun. 2009 Securities Times and Hong Kong Ta Kung Pao
All the above public notices can be found at the website designated by CSRC
(http://www.cninfo.com.cn).
SECTION VII FINANCIAL REPORT
Please see the attachments.
SECTOIN VIII DOCUMENTS AVAILABLE FOR REFERENCE
I. Text of Interim Report 2009 with signature of Chairman of the Board of Directors.
II. Accounting statements with signatures and seals of legal representative, chief
financial officer and principal of accounting institute.
III. Originals of all documents and public notices of the Company ever disclosed on
Securities Times and Hong Kong Ta Kung Pao in report period.
Wuxi Little Swan Co., Ltd.
Chairman of the Board: Fang Hongbo
18 Aug. 2009
Prepared by Wuxi Little Swan Co., Ltd. 30 Jun. 2009 Unit: RMB Yuan
Balance at the period-end Balance at the year-begin
Items
Consolidation Parent company Consolidation Parent company
Current assets：
Monetary funds 748,728,302.46 603,741,476.82 617,998,210.34 408,475,277.00
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable 390,661,689.12 356,640,380.04 381,032,680.58 366,380,243.73
Account receivable 487,082,847.94 231,466,334.04 422,669,603.61 269,374,201.45
Account paid in advance 132,927,168.67 121,631,274.54 105,361,611.66 86,084,578.33Premium receivables
Receivables from reinsurers
Reinsurance contract reserve receivables
Interest receivable
Dividend receivable 1,798,815.52 1,798,815.52 1,798,815.52 1,798,815.52
Other accounts receivable 81,022,386.07 63,658,548.07 99,682,875.67 127,640,209.34
Financial assets purchased under agreements to
resell
Inventories 384,052,952.51 214,223,379.40 694,973,687.18 336,687,306.24
Non-current assets due within 1 year
Other current assets
Total current assets 2,226,274,162.29 1,593,160,208.43 2,323,517,484.56 1,596,440,631.61
Non-current assets:
Loans and advance
Available for sale financial assets 12,179,282.00 12,179,282.00 7,045,326.00 7,045,326.00
Held to maturity investments
Long-term account receivable
Long-term equity investment 176,971,435.46 807,765,872.18 218,856,545.67 938,059,586.29
Investing property 30,474,370.10 30,474,370.10
Fixed asset 341,176,354.84 276,831,534.31 502,382,574.01 248,254,016.23
Project in construction 143,555,141.96 138,733,289.90 14,371,339.58 11,349,269.50
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 126,453,013.46 116,836,201.79 152,351,167.32 118,260,757.99
Development expense
Goodwill
Long-term deferred expense 13,131,718.52 476,258.30 16,339,825.28
Deferred tax assets 73,913,437.84 67,316,095.67 73,949,611.44 66,461,324.37
Other non-current assets
Total of non-current assets 887,380,384.08 1,420,138,534.15 1,015,770,759.40 1,419,904,650.48
Total assets 3,113,654,546.37 3,013,298,742.58 3,339,288,243.96 3,016,345,282.09
Current liabilities:
Short-term borrowings 29,900,000.00 74,930,000.00
Borrowing from Central Bank
Deposits and due to banks and other financial
institutions
Borrowed inter-bank funds
Transaction financial liabilities
Notes payable 30,994,702.20 114,000,000.00
Account payable 992,869,205.68 672,443,362.57 989,965,462.97 626,896,030.80
Account received in advance 112,144,210.27 66,471,338.06 225,481,656.23 157,288,864.35Financial assets sold under agreements to
repurchase
Handling charges and commission payable
Employees’ compensation payable 25,366,173.23 3,197,104.96 43,537,479.54 9,308,289.00
Tax payable 16,927,764.86 18,659,797.66 36,310,470.23 29,816,057.11
Interest payable 442,452.66 562,686.25
Dividend payable 2,967,922.95 2,917,374.60 3,527,937.47 2,917,374.60
Other account payable 118,910,110.34 81,787,795.56 135,832,343.39 90,089,986.19
Due to reinsurers
Insurance contract reserve
Amount for acting trading securities
Amount payables under security underwriting
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 1,330,522,542.19 845,476,773.41 1,624,148,036.08 916,316,602.05
Non-current liabilities:
Long-term borrowings
Debentures payable
Long-term payables
Specific purpose account payables
Provisions for contingent liabilities 11,806,232.85 18,541,858.03 4,000,000.00
Deferred tax liabilities 1,571,202.29 1,571,202.30 801,108.90 801,108.90
Other non-current liabilities
Total non-current liabilities 13,377,435.14 1,571,202.30 19,342,966.93 4,801,108.90
Total liabilities 1,343,899,977.33 847,047,975.71 1,643,491,003.01 921,117,710.95
Owner’s equity (shareholders equity)
Paid-in capital(Share capital) 547,655,760.00 547,655,760.00 547,655,760.00 547,655,760.00
Capital surplus 521,571,526.84 520,825,958.37 480,464,703.04 483,969,863.67
Less: Treasury Stock
Specific reserves
Reserved fund 150,833,803.30 148,613,248.65 153,321,373.03 148,613,248.65
General risk provision
Retained earnings 494,096,682.14 949,155,799.85 426,704,375.03 914,988,698.82
Foreign exchange difference -1,829,651.98
Total equity attributable to owners of parent
company
1,714,157,772.28 2,166,250,766.87 1,606,316,559.12 2,095,227,571.14
Minority interest 55,596,796.76 89,480,681.83
Total owner’s equity 1,769,754,569.04 2,166,250,766.87 1,695,797,240.95 2,095,227,571.14
Total liabilities and owner’s equity 3,113,654,546.37 3,013,298,742.58 3,339,288,243.96 3,016,345,282.09
Income statement
Prepared by Wuxi Little Swan Co., Ltd. Jan.-Jun. 2009 Unit: RMB
Items Amount in current period Amount of last periodConsolidation Parent company Consolidation Parent company
I. Total sale 1,902,488,624.24 1,242,491,343.55 2,424,428,981.79 1,351,059,516.24
Including: Operation Sales 1,902,488,624.24 1,242,491,343.55 2,424,428,981.79 1,351,059,516.24
Interests income
Premium income
Handling charges and commission income
II. Total cost of sales 1,820,135,703.64 1,137,157,451.27 2,362,626,742.15 1,346,582,399.62
Including: Cost of sales 1,496,548,611.22 906,621,109.85 1,937,796,658.15 1,011,406,191.94
Interests expenses
Handling charges and commission expenses
Surrender value
Net compensation expense
Provision for insurance liability reserve
Policyholder dividends
Reinsurance expenses
Taxes and associate charges 10,960,213.77 9,559,200.41 7,499,547.70 3,588,191.60
Selling and distribution expenses 238,060,212.18 199,659,857.85 299,080,889.25 222,541,621.35
Administrative expenses 67,681,769.63 42,513,239.53 80,164,564.81 46,081,414.34
Financial expense 2,212,812.20 -1,291,036.86 29,739,572.25 1,755,500.40
Impairment loss 4,672,084.64 -19,904,919.51 8,345,509.99 61,209,479.99
Add: gain/(loss) from change in fair value
(“-” means loss)
Investment income (“-” means loss) -22,871,620.55 -77,397,983.10 40,749,752.70 38,331,354.97
Including: income form investment on
affiliated enterprise and jointly enterprise
40,159,135.95
Foreign exchange difference (“-” means loss)
III. Business profit (“-” means loss) 59,481,300.05 27,935,909.18 102,551,992.34 42,808,471.59
Plus: non-operation income 19,428,152.67 18,012,106.23 8,109,748.72 4,688,417.80
Less: non- operation expense 7,246,470.34 5,751,425.97 12,086,035.31 7,690,403.58
Including: loss from non-current asset
disposal
2,281,435.93
IV. Total profit (“-” means loss) 71,662,982.38 40,196,589.44 98,575,705.75 39,806,485.81
Less: Tax expense 8,954,660.96 6,029,488.42 27,776,218.81 9,761,230.79
V. Net profit (“-” means loss) 62,708,321.42 34,167,101.02 70,799,486.94 30,045,255.02
Attributable to parent company 67,392,307.11 34,167,101.02 66,737,563.31 30,045,255.02
Minority interest -4,683,985.69 4,061,923.63
VI. Earnings per share
(I) Basic earnings per share 0.12 0.12
(II) Diluted earnings per share 0.12 0.12
Cash flow statement
Prepared by Wuxi Little Swan Co., Ltd. Jan.-Jun. 2009 Unit: RMB
Items Amount in current period Amount of last periodConsolidation Parent company Consolidation Parent company
I. Cash flows for operating activities:
Cash received from sales of goods or rending of services 1,208,263,335.79 734,688,522.07 1,490,052,847.94 763,895,158.36
Cash received on deposits and from banks and other
financial institutions
Net increased cash received on borrowings from central
bank
Cash received on placements from other financial
institutions
Premium received
Cash received from reinsurance
Net increased amount received on policyholder deposit
and investment
Cash received from disposal of held for trading financial
assets
Interests, handling charges and commission received
Cash received on placements from bank, net
Cash received under repurchasing, net
Refund of tax and fare received 16,708,784.57 213,871.82 31,625,314.37 9,858,332.02
Other cash received relating to operating activities 34,550,122.14 20,038,257.70 57,044,406.37 10,898,841.50
Sub-total of cash inflows 1,259,522,242.50 754,940,651.59 1,578,722,568.68 784,652,331.88
Cash paid for goods and services 744,274,270.56 326,371,287.06 1,158,165,951.66 752,638,254.43
Loans and advances drawn
Cash paid to central bank, banks and other financial
institutions, net
Claims paid
Interests, handling charges and commission paid
Dividends paid to policyholders
Cash paid to and on behalf of employees 100,359,470.65 62,974,956.82 134,603,446.71 62,505,765.45
Tax and fare paid 140,562,476.56 117,053,274.00 109,761,772.06 60,601,514.08
Other cash paid relating to operating activities 170,456,729.43 131,302,125.86 211,189,927.28 75,126,611.78
Sub-total of cash outflows 1,155,652,947.20 637,701,643.74 1,613,721,097.71 950,872,145.74
Net cash flow from operating activities 103,869,295.30 117,239,007.85 -34,998,529.03 -166,219,813.86
II. Cash Flows from Investment Activities:
Cash received from return of investments
Cash received from investment income 43,134,015.29 43,134,015.29 54,723,959.42 57,948,770.25
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
751,780.00 335,290.00 2,251,212.94 1,919,197.94
Proceeds from sale of subsidiaries and other operating
units
9,321,975.82 47,740,028.84 343,101.75 343,101.75
Other cash received relating to investment activities
Sub-total of cash inflows 53,207,771.11 91,209,334.13 57,318,274.11 60,211,069.94
Cash paid for acquiring fixed assets, intangible assets and 18,336,868.12 13,182,142.16 50,635,521.30 25,469,162.17other long-term assets
Cash paid for acquiring investments
Net cash used in loans
Net cash used in acquiring subsidiaries and other
operating units
Other cash paid relating to investment activities
Sub-total of cash outflows 18,336,868.12 13,182,142.16 50,635,521.30 25,469,162.17
Net cash flow from investing activities 34,870,902.99 78,027,191.97 6,682,752.81 34,741,907.77
III. Cash Flows from Financing Activities:
Cash received from absorbing investment
Including: Cash received from increase in minority
interest
Cash received from borrowings 23,900,000.00 182,900,000.00 100,000,000.00
Cash received from issuing debentures
Other proceeds relating to financing activities
Sub-total of cash inflows 23,900,000.00 182,900,000.00 100,000,000.00
Cash paid for settling debt 28,910,000.00 181,600,000.00 100,000,000.00
Cash paid for distribution of dividends or profit or
reimbursing interest
3,000,106.17 10,670,705.00 782,933.33
Including: dividends or profit paid to minority interest
Other cash payments relating to financing activities
Sub-total of cash outflows 31,910,106.17 192,270,705.00 100,782,933.33
Net cash flow from financing activities -8,010,106.17 -9,370,705.00 -782,933.33
IV. Effect of foreign exchange rate changes -4,000,000.00
V. Increase in cash and cash equivalents 130,730,092.12 195,266,199.82 -41,686,481.22 -132,260,839.42
Add : Cash and cash equivalents at period-begin 617,998,210.34 408,475,277.00 715,625,479.46 495,981,076.68
VI. Cash and cash equivalents at the period-end 748,728,302.46 603,741,476.82 673,938,998.24 363,720,237.26第 24 页
Statement of change in owners’ equity
Prepared by Wuxi Little Swan Co., Ltd. Jun. 30, 2009 Unit: RMB Yuan
Amount of the current period Amount of last year
Owners’ equity attributable to parent company Owners’ equity attributable to parent company
Items Paid-up
capital
(or share
capital)
Capital
reserve
Lessen:
treasury
stock
Specific
reserves
Surplus
public
reserve
Gener
al risk
reserv
e
Retained
profits Others
Minorit
y
interest
s
Total of
owners’
equity
Paid-up
capital
(or share
capital)
Capital
reserve
Lessen:
treasury
stock
Speci
fic
reser
ves
Surplus
public
reserve
Gener
al risk
reserv
e
Retained
profits Others
Minority
interests
Total of
owners’
equity
I. Balance at the end of last year 547,655,
760.00
480,464,
703.04
153,321,3
73.03
426,704,37
5.03
-1,829,6
51.98
89,480,
681.83
1,695,797
,240.95
365,103,
840.00
678,756,
472.34
149,551,7
63.24
390,435,
672.81
-935,25
2.65
135,577,93
1.31
1,718,49
0,427.05
Add: change of accounting policy
Correction of errors in previous period
Other
II. Balance at the beginning of this year 547,655,
760.00
480,464,
703.04
153,321,3
73.03
426,704,37
5.03
-1,829,6
51.98
89,480,
681.83
1,695,797
,240.95
365,103,
840.00
678,756,
472.34
149,551,7
63.24
390,435,
672.81
-935,25
2.65
135,577,93
1.31
1,718,49
0,427.05
III. Increase/ decrease of amount in
this year (“-” means decrease) 41,106,8
23.80
-2,487,56
9.73
67,392,307
.11
1,829,6
51.98
-33,883,
885.08
73,957,32
8.08
182,551,
920.00
-194,280,
354.82
66,737,5
63.31
-203,29
2.51
4,061,923.
63
58,867,7
59.61
(I) Net profit 67,392,307
.11
-4,683,9
85.69
62,708,32
1.42
66,737,5
63.31 4,061,923.
63
70,799,4
86.94
(II) Gain/loss recorded in owners’
equity directly 41,106,8
23.80
-2,487,56
9.73
1,829,6
51.98
40,448,90
6.05
-11,728,4
34.82
-203,29
2.51 -11,931,7
27.33
1. Net amount of changes in fair value
of financial assets available for sale 4,363,86
2.60
4,363,862
.60
-11,728,4
34.82 -11,728,4
34.82
2. Effect of changes in other owners’
equity of invested units under equity
method
3. Effect of income tax related to items
listed to owners’ equity
4. Others 36,742,9
61.20
-2,487,56
9.73
1,829,6
51.98
36,085,04
3.45
-203,29
2.51 -203,292.
51
Subtotal of (I) and (II) 41,106,8
23.80
-2,487,56
9.73
67,392,307
.11
1,829,6
51.98
-4,683,9
85.69
103,157,2
27.47
-11,728,4
34.82
66,737,5
63.31
-203,29
2.51
4,061,923.
63
58,867,7
59.61
(III) Capital input and reduction of
owners -29,199,
899.39
-29,199,8
99.39
1.Capital input of owners
2. Amount of stock payment recorded
in owners’ equity
3. Others -29,199,
899.39
-29,199,8
99.39
(IV) Profit distribution
1. Withdrawing surplus public reserve
2. Withdrawing General risk reserve
3. Distribution to owners (or第 25 页
shareholders)
4. Other
(V) Internal settlement of owners’
equity 182,551,
920.00
-182,551,
920.00
1. New increase of capital (or share
capital) from capital reserves 182,551,
920.00
-182,551,
920.00
2. Converting surplus reserves to capital
(or share capital)
3. Surplus reserves make up losses
4. Others
IV. Balance at the end of this period 547,655,
760.00
521,571,
526.84
150,833,8
03.30
494,096,68
2.14
55,596,
796.75
1,769,754
,569.03
547,655,
760.00
484,476,
117.52
149,551,7
63.24
457,173,
236.12
-1,138,5
45.16
139,639,85
4.94
1,777,35
8,186.66
Statement on change in owners’ equity of parent company
Prepared by Wuxi Little Swan Co., Ltd. Jun. 30, 2009 Unit: RMB
Amount of the current period Amount of last year
Items Paid-up
capital (or
share capital)
Capital
reserve
Less:
treasury
stock
Specific
reserves
Surplus
reserve
Retained
profit
Total of
owners’
equity
Paid-up capital
(or share
capital)
Capital
reserve
Less:
treasury
stock
Specific
reserves
Surplus
reserve
Retained
profit
Total of
owners’
equity
I. Balance at the end of last year 547,655,760.0
0
483,969,86
3.67
148,613,24
8.65
914,988,69
8.82
2,095,227,57
1.14 365,103,840.00 679,636,715.8
7
144,843,63
8.86
881,062,21
0.74
2,070,646,40
5.47
Add: change of accounting policy
Correction of errors in previous period
Other
II. Balance at the beginning of this year 547,655,760.0
0
483,969,86
3.67
148,613,24
8.65
914,988,69
8.82
2,095,227,57
1.14 365,103,840.00 679,636,715.8
7
144,843,63
8.86
881,062,21
0.74
2,070,646,40
5.47
III. Increase/ decrease of amount in this year
(“-” means decrease) 36,856,094.
70
34,167,101.
03
71,023,195.7
3 182,551,920.00 -194,280,354.8
2
30,045,255.
02
18,316,820.2
0
(I) Net profit 34,167,101.
03
34,167,101.0
3
30,045,255.
02
30,045,255.0
2
(II) Gain/loss recorded in owners’ equity
directly 36,856,094.
70
36,856,094.7
0 -11,728,434.82 -11,728,434.
82
1. Net amount of changes in fair value of
financial assets available for sale 4,363,862.6
0 4,363,862.60 -11,728,434.82 -11,728,434.
82
2. Effect of changes in other owners’ equity
of invested units under equity method
3. Effect of income tax related to items listed
to owners’ equity
4. Others 32,492,232.
10
32,492,232.1
0
Subtotal of (I) and (II) 36,856,094.
70
34,167,101.
03
71,023,195.7
3 -11,728,434.82 30,045,255.
02
18,316,820.2
0
(III) Capital input and reduction of owners
1.Capital input of owners第 26 页
2. Amount of stock payment recorded in
owners’ equity
3. Others
(IV) Profit distribution
1. Withdrawing surplus public reserve
2. Distribution to owners (or shareholders)
3. Other
(V) Internal settlement of owners’ equity 182,551,920.00 -182,551,920.0
0
1. New increase of capital (or share capital)
from capital reserves 182,551,920.00 -182,551,920.0
0
2. Converting surplus reserves to capital (or
share capital)
3. Surplus reserves make up losses
4. Others
IV. Balance at the end of this period 547,655,760.0
0
520,825,95
8.37
148,613,24
8.65
949,155,79
9.85
2,166,250,76
6.87 547,655,760.00 485,356,361.0
5
144,843,63
8.86
911,107,46
5.76
2,088,963,22
5.67第 27 页
Wuxi Little Swan Company Limited
Notes to the Financial Statement
For the Six Months as of 30 June 2009
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
I. Company Profile
1. History of the Company
Wuxi Little Swan Company Limited (hereinafter referred to as the Company) is the oriented-collection
enterprise through the approval of Jiangsu Provincial Commission for Economic Restructuring with reply
STGS (1993) No. 253 document. In July 1996, the Company publicly issued 70,000,000 B shares through
the approval of the People’s Government of Jiangsu Province with (1996) No. 52 document, as well as the
approval from the State Council with ZJWZWF (1996) No. 14 document and Shenzhen Securities
Management Office with SZBH (1996) No.4 document. Total raised capital for B shares issuance is
converted into RMB 310,000,000. The above-mentioned shares were listed on Shenzhen Stock Exchange for
trade with Stock Abbr. “Little Swan B” and Stock Code “2000418”.
In Mar. 1997, the Company publicly issued 60,000,000 Renminbi common shares (including 9,000,000
employee’s shares) by adopting “Online Pricing Issue” through the approval of CSRC with ZJFZ (1997) No.
54 document and ZJFZ (1997) No. 55 document. The raised capital for A shares issuance amounted RMB
720,830,000. The said shares were listed on Shenzhen Stock Exchange for trade in Mar. 1997 with Stock
Abbr. “Little Swan A” and Stock Code “0000418”.
The Company has implemented the Share Merger Reform Plan on 7 Aug. 2006, in which the shareholders
holding non-tradable A share shall pay the consideration to the shareholders holding tradable A share at the
rate of 2.5 for 10. All non-tradable shareholders paid the consideration of 18,000,000 shares in total,
therefrom, non-tradable shareholders obtained the right to list and trade.
In accordance with the resolutions of the Shareholders General Meeting 2007, increased registered capital is
RMB 18,255.192. Based on total share capital of 36,510.384 shares as at the end of 2007, the capital reserve
was transferred share capital at the rate of 5 for 10. The new increased shares were 182,551,920 shares with
RMB 2 par value, totaling increased share capital of RMB 182,551,920.
2. Company profile
Registered Address：No. 1 Hanjiang Road, National High-tech Industrial Development Zone, Wuxi
Office Address: No. 67, Huiqian Road, Wuxi Jiangsu
Structure of the company: Share-holding company
The Company has board of management, board of product & Industrial Design, Operation Management
Dept., Human Resource Department, Securities Affairs Department, Financial Management Department,
domestic marketing firm, overseas marketing firm, manufacturing center, R&D center, supply chain第 28 页
department, and industrial washing machine company.
3. Operations of the company
Business scope: manufacture and sales of household appliances and accessories and fittings and industrial
ceramic. Export business of “Little Swan” products and technologies ; import and export business of raw and
accessory materials, mechanical equipments and technologies necessary for operation and production;
development of foreign joint venture and cooperative production and business that “ process raw materials
on clients’ demands, assemble parts for the clients and process according to the clients’ samples; or
engages in compensation trade”. Technical service for household appliances; contracting foreign engineering
in mechanical industry and domestic engineering in international bidding; export of equipments and
materials necessary for the said foreign engineering; dispatching the labors necessary for the said foreign
engineering to overseas.
4. Name of the parent company
Parents company: GUANGDONG MIDEA ELECTRIC APPLIANCES CO., LTD.
Actual controlling person: Mr. He Xiangjian
5. Authorization of the financial statements
The Financial Statements were approved and authorised for issue by the board of directors on 18th August,
2009.
Ⅱ. PRINCIPAL ACCOUNTING POLICES & ACCOUTING ESTIAMTE
1. Announcement of the adoption of the Accounting Standards
The financial statements of the company give a true and fair view of the state of affairs of the company as for
the financial position and operating results & cash flows.
2. Preparation basis of the financial statements
The preparation of the financial statements comply with the Accounting Standards for Enterprises since Jan.
1st, 2007.
3. Accounting period
The Company's accounting year is from 1st January to 31st December for each calendar year.第 29 页
4. Recording currency
The recording currency of the company is Renminbi.
5. Basis of accounting and measurement basis
Basis of accounting is Accrual Basis.
There is no change in the measurement basis of the company during the current accounting period.
The financial statements have been prepared on the historical cost basis, except the revaluation, realizable
value, present value and fair value of certain financial instruments.
6. Cash and cash equivalents
For the purposes of the cash flow statement, cash refers to all cash in hand and all deposits which are readily
available for payment. Cash equivalents refer to short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
7. Foreign currency transactions
All foreign currency transactions during the period have been translated in to RMB at the exchange rates
stipulated by the People’s Bank of China instantaneously. Monetary assets and liabilities denominated in
foreign currencies at the balance sheet date are translated into RMB at the stipulated exchange rates at the
balance sheet date. The resulting exchange differences arising from these translations are expensed, except
for those attributable to foreign currency borrowings that have been taken out specifically for the
construction of fixed assets, which are capitalized as part of fixed assets' costs.
Translation method of the financial statements for the oversea subsidiaries companies: Assets and Liabilities
items of the Balance sheet are carried at the closing rate of the balance sheet date; items of the owners’
equity except the Undistributed profit item, carried at the spot exchange rate of the transactions; items of
the profit/loss Statements are carried at the exchange rate which is determined through a systematic and
reasonable method and is approximate to the spot change rate of the transaction date.
The balance of differences arising from the translation of the foreign currency financial statements shall be
separately disclosed in the Owners’ equity account of the Balance sheet.
8. Recognition and measurement of Financial Instruments
Financial assets of the company including:第 30 页
(1) the financial assets which are measured at their fair values are the variation of which is recorded into
the profits and losses of the current period, including transactional financial assets which are
measured at their fair values and of which the variation is included in the current profits and losses;
The purchased stock, bonds and funds etc. which initially recognized by the company shall be measured by
the company at their fair values. For the financial assets measured at their fair values and of which the
variation is recorded into the profits and losses of the current period, the transaction expenses thereof
shall be directly recorded into the profits and losses of the current period. For the interests concerned with
the cash dividends or bonds which is included in the total payments , shall be recognized as other
receivable items and investment profits/losses shall be recognized when the interests and cash dividends
actually received by the company.
The variation of the fair values of the financial assets at the balance sheet date are recorded into the profits
and losses of the current period.
The profits and losses arising from the change between the fair value of the initial recognition value of the
financial assets shall be recognized as Investment gains/losses and adjust the variation fair value accordingly.
（2）The “held-to-maturity investment” refers to a non-derivative financial assets with a fixed date of
maturity, a fixed or determinable amount of price and which the company holds for a definite purpose or
the company is able to hold until its maturity.
The held-to-maturity investments cost of the company such as fixed rate treasury bond and the flexible
corporation bond shall be initially recognized at the fair value plus the relevant transaction expenses. The
interests of the issued bonds which is included in the total payment shall be separately recognized as
receivable items.
The differences arising from the actual amount and the book value of the held-to-maturity investment shall
be recognized as investment gains/losses.
The company shall carry out an inspection, on the balance sheet date, where there is any objective evidence
proving that such held-to-maturity investment has been impaired, an impairment provision shall be made; if
there is any objective evidence providing that the value of the said held-to-maturity investment has been
restored, the impairment-related losses as originally recognized shall be reversed and be recorded into the
profits and losses of the current period. However, the reversed carrying amount shall not be any more than
the post-amortization costs of the said held-to-maturity investment on the day of reverse under the
assumption that no provision is made for the impairment.Where the company has the intention of holding or第 31 页
the ability to make changes so that an investment is no longer suitable to be classified as a held-to-maturity
investment, the investment shall be re-classified as a sellable financial asset, and a subsequent measurement
shall be made at it fair value. The balance between the carrying amount of the said investment at the
re-classification day and the fair value shall be computed into the owner’s equity, and when the said sellable
financial assets is impaired or transferred out when it is terminated from recognizing, it shall be recorded
into the profits and losses of the current period.
（3）accounts receivable
Accounts receivable are recorded in the accounts based on the actual amounts happened.
Provisions for bad debts shall be provided after specific evaluation of recovery.
If there are conclusive evidences which make it clear that the accounts receivable can not be recalled, such as
customer is cancelled, bankrupt, insolvency and cash flows are insufficient seriously, etc. the accounts
receivable shall be confirmed as bad debts and written off provision for bad debts.
Provision method shall be adopted by the company in the computation of the bad debts.
Provision method and ratio: the accrue basis for provision of bad debts is the residual amount of the balances
of Accounts receivable and other receivables excluded the receivable balances beyond the combined
financial statements. Special bad debts provision shall be provided for accounts receivable which are
difficult to recall according to the actual circumstances and experience. General bad debts provision will be
provided for the others according aging analysis.
The details can be found as followings:
Aging Within 1 year From 1-2 years From 2-3 years From 3-5 years Over 5 years
Provision
rate
5% 10% 20% 60% 100%
No provision of bad debts shall be accured for no-risky receivables.
（4）The “sellable financial assets” refers to the non-derivative financial assets which are designated as
sellable when they are initially recognized as well as the financial assets other than those as described below:
a. financial assets measured at their fair values and of which the variation is recorded into the profits and
losses of the current period;
b. investments held until their maturity ; and
c. loans and accounts receivables.
The sellable financial assets of the company shall be initially recognized at the obtained fair value plus the
transaction expenses concerned. The interests or cash dividends included in the actual payment amount of第 32 页
the said financial assets shall be separately recognized as receivable items.
The interests or cash dividends of the sellable financial assets before the maturity period shall be recognized
as investment gains/losses when actually received.
The variation of the fair value of the sellable financial assets, at the balance sheet date, shall be recorded as
Capital surplus---other capital surplus.
Where a sellable financial assets is impaired, even if the recognition of the financial assets has not been
terminated, the accumulative losses arising from the decrease of the fair value of the owners’ equity which
was directly included shall be transferred out and recorded into the profits and losses of the current period.
The accumulative losses that are transferred out shall be the balance obtained from the initially obtained
costs of the sold financial asset after deducting the principal as taken back, the current fair value and the
impairment-related losses as was recorded into the profits and losses of the current period.
Financial liabilities of the company includes the financial liabilities which are measured at their fair values
and of which the variation is included in the current profits and losses, including transactional financial
liabilities and the designated financial liabilities which are measured at their fair values and of which the
variation is included in the current profits and losses.
The financial liabilities of the company are recorded at the fair value, including the transactional expenses if
settle the said liabilities in the future. If fair value method is not suitable, the post – amortization cost
method shall be adopted.
Other financial liabilities
For the financial guarantee contracts of the company which are not designated as a financial liability
measured at its fair value and the variation thereof is recorded into the profits and losses of the current
period, and for the commitments to grant loans which are not designated to be measured at the fair value
and of which the variation is recorded into the profits and losses of the current period and which all enjoy
an interest rate lower than that of the market, a subsequent measurement shall be made after they are
initially recognized according to the higher one of the following:
a. the amount as determined according to the Accounting standards for Enterprises No. 13---Contingencies;
b. the surplus after accumulative amortization as determined according to the principles of the Accounting
Standards for Enterprises No. 14--- Revenues is subtracted from the initially recognized amount.
9. Inventory第 33 页
The inventories of company include finishied goods,raw materials, low value consumbles, packaging
materials, consigned processing materials, WIP, etc.
The cost of packaging materials and low value consumbles shall be fully amortized when issuing from the
storage;
The inventories shall be initially measured in light of their cost. The cost of inventory consists of purchase
cost, processing costs and other costs.
Physical count method of inventories: Perpetual inventory method
Every interim or the year end, there shall be a full inspection of the inventories, for any scrapings, all or
partial obsolete or realizable value of the inventory lower than the cost, the impairment of the inventories
shall be made. Ordinarily, the company shall make provision for loss on decline in value of the inventories
on the ground of each item of inventories. If the factors causing any write-down of the inventories have
disappeared, the amount of write-down shall be resumed and be reversed from the provision for the loss on
decline in value of inventories that has been made. The reverse amount shall be included in the current
profits and losses.
10. Long-term equity investment
(1) Initial recognition
The initial cost of the long-term equity investment formed in the merger of an enterprise shall be ascertained
in accordance with the following provisions:
a. For the merger of enterprises under the same control, if the consideration of the merging enterprise is that
it makes payment in cash, transfers non-cash assets or bear its debts, it shall, on the date of merger, regard
the share of the book value of the owner’s equity of the merged enterprise as the initial cost of the
long-term equity investment and the payment in cash, non-cash assets transferred as well as the book value
of the debts borne by the merging party shall offset against the capital reserve. If the capital reserve is
insufficient to dilute, the retained earnings shall be adjusted.
b. For the merger under different control, the merging party shall, on the date of merger, regard the merger
costs ascertained in accordance with the Accounting Standards for Enterprises No. 20 – Merger of
Enterprises as the initial cost of the long-term equity investment.
a) For a business combination realized by a transaction of exchange, the combination costs shall be the fair
value, on the acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities第 34 页
issued by the acquirer in exchange for the control on the acquire.
b) For a business combination realized by two or more transactions of exchange, the combination cost shall
be the summation of the costs of all separate transactions.
c) All relevant direct costs incurred to the acquirer for the business combination shall also be recorded into
the cost of business combination.
The acquirer shall,pursuant to the following provisions, treat the balance between the combination costs and
the fair value of the identifiable net assets it obtains from the acquiree; If after the reexamination, the
combination costs are still more than the fair value of the identifiable net assets it obtains from the acquiree,
it shall record the balance into the profits and losses of the current period.
B. For the long-term equity investment which made in cash, the initial investment cost including the
transactional expenses, taxes and other necessary expenditures. If the initial cost of a long-term equity
investment is more than the investing enterprise’ attributable share of the fair value of the invested entity’s
identifiable net assets for the investment, the initial cost of the long-term equity investment may not be
adjusted. If the initial cost of a long-term equity investment is less than the investing enterprise’
attributable share of the fair value of the invested entity’s identifiable net assets for the investment, the
difference shall be included in the current profits and losses and the cost of the long-term equity
investment shall be adjusted simultaneously.
（2）Measurement of the long-term equity investment
For a long-term equity investment for which there is no offer in the active market and of which the fair
value cannot be reliably measured, if the investing enterprise has not joint control or significant influence
over the invested entity any more as a result of the decrease of investment or other reasons, the cost method
shall be employed in the measurement, and the book value of the long-term equity investment employing the
equity method shall be regarded as the initial investment cost to be measured by employing the cost method.
If an enterprise is able to do the joint control or significant influence, which does not constitute control, over
the invested entity as a result of additional investment or other reasons, the equity method shall be employed
in the measurement, and the book value of the long-term equity investment measured by employing the cost
method or the book value of investment ascertained in accordance with the Accounting Standards for
Enterprises No.22 – Recognition and Measurement of Financial Instruments shall be regarded as initial
investment cost measured by employing the cost method.
An investing enterprise shall recognize the net losses of the invested enterprise until the book value of the第 35 页
long-term equity investment and other long-term rights and interests which substantially form the net
investment made to the invested entity are reduced to zero, unless the investing enterprise has the obligation
to undertake extra losses. If the invested entity realizes any net attributable share of profits offsets against its
attributable share of the un-recognized losses, resume to recognize its attributable share of profits.
11. Investment Real Estates
The investment real estates refer to the right to use any land which has already been rented, the right to use
any land which is held and prepared for transfer after appreciation and the right to use any building which
has already been rented.
The company recognized the investment real estates when meets the following requirements simultaneously:
the economic benefits pertinent to this investment real estate are likely to flow into the company and the cost
of the investment real estate can be reliably measured.
Normally, the company shall make a follow-up measurement to the investment real estate through the cost
pattern, and the relevant accrual depreciation or amortization shall be made which is in accordance with the
Accounting Standards of Fixed assets and Intangible Assets.
When the company has well –established evidence to indicate that the purpose of the real estate has changed,
such as begins to be used for its own, it shall convert the investment real estate to other assets or vise versa.
12. Fixed assets
(1) Recognition of fixed assets
The fixed asset of company refers to the tangible assets that are held for the sake of producing commodities,
rendering labor service, renting or business management and their useful life is in excess of one fiscal year,
such as Buildings, machinery equipment, transportation vehicles and other relevant tooling and instruments
etc.. The economic benefits pertinent to the fixed asset are likely to flow into the company and the cost of
the fixed asset can be measured reliably.
(2) The initial measurement of a fixed asset shall be made at its cost.
If the payment for a fixed asset is delayed beyond the normal credit conditions and it is of financing nature in
effect, the cost of the fixed assets shall be ascertained based on the current value of the purchase price. The
difference between the actual payment and the current value of the purchase price shall be included in the
current profits and losses within the credit period, unless it shall be capitalized.第 36 页
(3) The company shall make depreciation for all its fixed assets. However, the fixed assets that have been
fully depreciated but are still in use and the land that is separately measured and included shall be excluded.
The company shall, in accordance with the nature and use of a fixed asset, reasonably ascertain its useful life
and expected net salvage value. Every year end, the company shall have a check on the useful life, expected
net salvage value and depreciation method of the fixed assets.
The details shall be as followings:
Categories Useful life Salvage value Yearly rate
Plant & buildings 30-40 years 5% 2.38-3.17%
Machinery
equipment 10-18 years 5% 5.28-9.00%
Electric equipment 5-8 years 5% 11.88-19%
Transportation
vehicles 5-12 years 5% 7.92-19%
Others 5-8 years 5% 11.88-19%
Decoration 3-8 years 0% 12.50-33%
13. Construction in progress
Construction in progress refers to fixed assets which are in the progress of building or installation and is
recorded at the actual cost. The costs of them include initial cost, installation cost, construction cost, other
direct expenses and borrowing cost of special loans happened before reaching predicted serviceable
condition. When construction in progress has finished in essential and reached serviceable condition, it
should be transferred to fixed assets and depreciation shall be provided.
14. Construction materials
Construction materials refers to the raw materials purchased for the construction, un-installed equipment
and prepayments made for the equipment and relevant tooling & instruments is recorded at the actual
cost.
15. Intangible assets
Intangible assets refers to the identifiable non-monetary assets possessed or controlled by the company
which have no physical shape.第 37 页
The intangible assets shall be initially measured according to its cost.
The research expenditures for its internal research and development projects, shall be recorded into the
profit or loss for the current period.
The development expenditures for its internal research and development projects of an enterprise may be
confirmed as intangible assets when they satisfy the following conditions simultaneously:
(1) it is feasible technically to finish intangible assets for use or sale;
(2) it is intended to finish and use or sell the intangible assets;
(3) the usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally.
(4) It is able to finish the development of the intangible assets, and able to use or sell the intangible assets,
with the support of sufficient technologies, financial resources and other resources ; and
(5) The development expenditures of the intangible assets can be reliably measured.
The company shall analyze and judge the service life of the intangible assets, when it obtains intangible
assets. As for the intangible assets with limited service life, the company shall estimate the amortization on
the straight line method within its useful life. If it is unable to forecast the period of the intangible asset, no
amortization shall be accrued.
The company shall check the service life of intangible assets with uncertain service life during each
accounting period. And the company shall, every year end, check the service life and the amortization
method of intangible assets with limited service life.
16. Long-term deferred expenses
The long –term deferred expenses include all the expenditures occurred during the current accounting
period but shall be beneficial for the company over one year. The long –term deferred expenses with
limited beneficial life shall be averaged amortized within its beneficial life; for the long-term deferred
expenses without limited beneficial life, shall be amortized within 5 years evenly.
17. Impairment of Assets
The company shall, on the day of balance sheet, make a judgment on whether there is any sign of possible第 38 页
assets impairment, such as long-term equity investment, fixed assets, construction in progress, intangible
assets ect.. There may be an impairment of assets when one of the following signs occurs:
(1) the current market price of assets falls, and its decrease is obviously higher than the expected drop over
time or due to the normal use;
(2) the economic, technological or legal environment in which the company operates, or the market where
the assets is situated will have any significant change in the current period or in the near future, which
will cause adverse impact on the enterprise;
(3) the market interest rate or any other market investment return rate has risen in the current period, and
thus the discount rate or the company for calculating the expected future cash flow of the assets will be
affected, which will result in great decline of the recoverable amount of the assets;
(4) any evidence shows that the assets have become obsolete or have been damaged substantially;
(5) the assets have been or will be left unused, or terminated for use, or disposed ahead of schedule;
(6) any evidence in the internal report of the company shows that the economic performance of the assets
have been or will be lower than the expected performance, for example, the net cash flow created by
assets or the operating profit ( or loss) realized is lower ( higher) than the excepted amount;
(7) other evidence indicates that the impairment of assets has probably occurred.
Where an evidence shows that there is possible assets impairment, the recoverable amount of the assets shall
be estimated. The recoverable amount shall be determined in light of the higher one of the net amount of the
fair value of the assets minus the disposal expenses and the current value of the expected future cash flow of
the assets. When either of the net amount of the fair value of an asset minus the disposal expenses or the
current value of the expected future cash flow of the assets exceeds the carrying value of he asset, it shows
that now asset impairment has occurred, and it does not need to estimate another amount of the asset.
The net amount of the fair value of an asset minus the disposal expenses shall be determined in light of the
amount of the basis of the price as stipulated in the sales agreement in the fair transaction minus the disposal
expenses directly attributable to the assets.
Where there is no sales agreement but there is an active market of assets, the net amount of the fair value of
an asset minus the disposal expenses shall be determined in light of the amount of the market price of the
asset minus the disposal expenses.
Where there is no sales agreement and no active market of assets, the net amount of estimated fair value of
an asset minus the disposal expenses shall be estimated in light of the best information available. The said第 39 页
net amount may be estimated by reference to the latest transaction prices or results of similar assets among
the counterparts.
Where the net amount of the fair value of an asset minus the disposal expenses can not be estimated reliably
according to the provisions as described above, the company shall regard the current value of the expected
future cash flow of the asset as the recoverable amount of the asset.
The current value of the expected future cash flow of an asset shall be determined by the discounted cash
with an appropriate discount rate, on the basis of the expected future cash flow generated during the
continuous use of final disposal of an asset.
The predict the current value of the future cash flow, the company shall take into comprehensive
consideration the expected future cash flow, service life, discount rate and other factors.
Where the measurement result of the recoverable amount indicates that an asset’s recoverable amount is
lower than its carrying value, the carrying value of the asset shall be recorded down to the recoverable
amount, and the reduced amount shall be recognized as the loss of asset impairment and be recorded as the
profit or loss for the current period. Simultaneously, a provision for the asset impairment shall be made
accordingly.
After the loss of asset impairment has been recognized, the depreciation or amortization expenses of the
impaired asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment
carrying value of the asset systematically within the residual service life of the asset.
Where there is any evidence indicating a possible impairment of assets, the company shall, on the basis of
single item assets, estimate the recoverable amount. Where it is difficult to do so, it shall determine the
recoverable amount of the group assets on the basis of the asset group to which the asset belongs.
The recognition of an asset group shall base on whether the main cash inflow generated by the asset group is
independent of those generated by other assets or other group assets. Simultaneously, when recognizing an
asset group, the company shall take into consideration how its managers manage the production and business
activities and the ways of decision – making for the continuous use or disposal of the assets, etc..
Once any loss of asset impairment is recognized, it shall not be switched back in the future accounting
periods.
18. Borrowing cost
Recognition principle: Where the borrowing costs incurred to an company can be directly attributable to the第 40 页
acquisition and construction or production of assets eligible for capitalization, it shall be capitalized and
recorded into the costs of relevant assets. Other borrowing costs shall be recognized as expenses on the basis
of the actual amount incurred, and shall be recorded into the current profits and losses.
The assets eligible for capitalization shall refer to the fixed assets, investment real estate, inventories and
other assets, of which the acquisition and construction or production may take quite a long time (over 3
months) to get ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) the asset disbursements have already incurred, which shall include the cash, transferred non-cash assets
or interest bearing debts paid for the acquisition and construction or production activities for preparing
assets eligible for capitalization;
(2) the borrowing costs has already incurred ;and
(3) the acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
During the period of capitalization, the to-be-capitalized amount of interests in each accounting period shall
be determined according to the following provisions:
(1) as for specifically borrowed loans for the acquisition and construction or production of assets eligible for
capitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost
incurred of the specially borrowed loan at the present period minus the income of interests earned on the
unused borrowings loans as a deposit in the bank or as a temporary investment.
(2) where a general borrowing is used for the acquisition and construction or production of assets eligible for
capitalization, the company shall calculate and determine the to-be-capitalized amount of interests on the
general borrowing by multiplying the weighted average asset disbursement of the part of the
accumulative asset disbursements minus the general borrowing by the capitalization rate of the general
borrowing used. The capitalization rate shall be calculated and determined in light of the weighted
average interest rate of the general borrowing.
During the period of capitalization, the amount of interest capitalized during each accounting period shall not
exceed the amount of interest actually incurred to the relevant borrowings in the current period.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale,
the capitalization of the borrowing costs shall be ceased. Where a qualified asset is interrupted abnormally for
the reasons of the management decision or other unforecast factors and the time over 3 months, the第 41 页
capitalization of the borrowing costs shall be suspended, the borrowing costs incurred during such period shall
be recognized as expenses and shall be recorded in to the profits and losses of the current period, till the
acquisition and construction or production of the asset restarts.
19. Government subsidies
The monetary or non-monetary assets obtained free by the company from the government. But no
government subsidy may be recognized unless the following conditions are met: the company can meet the
conditions for the government subsidies and can obtain the government subsidies.
If a government subsidy is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government subsidy is a non-monetary asset, it shall be measured at its fair value. If its fair
value cannot be obtained in a reliable way, it shall be measured at its nominal amount.
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed
within the useful lives of the relevant assets, and included in the current profits and losses. But the
government subsidies measured at their nominal amounts shall be directly included in the current profits and
losses.
The government subsidies pertinent to incomes shall be treated respectively in accordance with the
circumstances as follows:
(1) those subsidies used for compensating the related future expenses or losses of the company shall be
recognized as deferred income and shall included in the current profits and losses during the period when
the relevant expenses are recognized; or
(2) Those subsidies used for compensating the related expenses or losses incurred to the company shall be
directly included in the current profits and losses.
If it is necessary to refund any government subsidy which has been recognized, it shall be treated
respectively in accordance with the circumstances as follows:
(1) if there is the deferred income concerned, the book balance of the deferred income shall be offset against,
but the excessive part shall be included in the current profits and losses; and
(2) if there is no deferred income concerned to the government subsidy, it shall be directly included in the
current profits and losses.
20. Revenues
A. revenue from selling goods第 42 页
No revenue from selling goods may be recognized unless the following conditions are met simultaneously:
(1) the significant risks and rewards of ownership of the goods have been transferred to the buyer by
company;
(2) the company retains neither continuous management right that usually keeps relation with the
ownership nor effective control over the sold goods;
(3) the relevant amount of the revenue can be measured in a reliable way;
(4) the relevant economic benefits may flow into the company ; and
(5) the relevant costs incurred or be incurred can be measured in a reliable way.
If the collection of the price as stipulated in the contract or agreement is delayed and if it has the financing
nature, the revenue incurred by selling goods shall be ascertained in accordance with the fair value of the
receivable price as stipulated in the contract or agreement.
B. revenue form providing labor services
The outcome of a transaction concerning the labor services, such as maintenance and fix services, shall be
recognized at the day of completion of the services.
C. revenue from abalienating the right to use assets
No revenue from abalienating of right to use assets may be recognized unless the following conditions are
met: the relevant economic benefits are likely to flow into the company and the amount to the amount of
revenues can be measured in a reliable way.
The amount of royalty revenue should be measured and confirmed in accordance with the period and method
of charging as stipulated in the relevant contract or agreement.
21. Income tax
The company adopts liability method in computation of the income tax.
Where there is any exact evidence showing that it is likely to acquire sufficient amount of taxable income tax
in a future period to offset against the deductible temporary difference, the deferred income tax assets
unrecognized in prior periods shall be recognized.
On the balance sheet day, the deferred income tax assets and deferred income tax liabilities shall be
measured at the tax rate applicable to the period during which the assets are expected to be recovered or the
liabilities are expected to be settled.
In case the applicable tax rate changes, the deferred income tax assets and deferred income tax liabilities
which have been recognized shall be re-measured, excluding the deferred income tax assets and deferred第 43 页
income tax liabilities arising from any transaction or event directly recognized as the owner’s rights and
interests, and the amount affected by them shall be recorded into the income tax expenses of the current
period during which the change occurs.
22. Consolidated financial statements
The consolidated financial statements are prepared on the control basis. Control is presumed when the parent
acquires more than half of the voting rights of the enterprise. Even when more than one half of the voting
rights is not acquired, control may be evidenced by power:
(1) over more than one half of the voting rights by virtue of an agreement with other investors; or
(2) to govern the financial and operating policies of the other enterprise under a statute or an agreement;
(3) to appoint or remove the majority of the members of the board of directors; or
(4) to cast the majority of votes at a meeting of the board of directors.
Consolidated financial statements shall be prepared based on both of the parent and its subsidiaries financial
statements, after the adjustments made under equity method for the long-term investments between the
parent and subsidiaries according to the information provided.
All significant intercompany balances and transactions, including intercompany profits and unrealized
profits and losses are eliminated on consolidation.
The accounting policies applied for the parent and its subsidiaries must be uniform, unless it is impracticable
to do so, in which case, adjustments must be made to the subsidiaries financial statements according to the
accounting policies of the parent.
Ⅲ. Taxation
Items tax rate
1. VAT 17%, 0% for export
2. Business tax 5%
3. Urban maintenance and construction tax 5% - 7%
4. Education fee 1% - 4%
5. Other local fees below 0.1% of total turnover
1. Enterprise income tax:
In 2009, the Company, Wuxi Feiling Electronics Co. Ltd. and Wuxi Little Swan General Electric Appliances第 44 页
Co., Ltd. (two subsidiaries of the Company) are recognized as new- and high-tech enterprise, the income tax
rate remains at 15% for them, 25% for other subsidiaries of the Company.
Ⅳ. Notes to the consolidated financial statements
1. consolidated subsidiaries as at 30 Jun. 2009
Name of company
Registered
capital
Investment
amount
Proportion Business scope
Equity
holding
percentage
Combinatio
n or not
Jiangsu Little Swan
Marketing Co. ,Ltd.
41,950.00 41,755.00 99.54% Sales of electrical appliances 99.64% Yes
Wuxi Feiling Electronics
Co. Ltd.
USD 362.46 USD 221.10 73.00%
Manufacturing and
development of new
electronic components
73.00% Yes
Wuxi Little Swan Import
& Export Co.
6,500.00 5,750.00 88.46%
I&E of mechanical and
electrical products
88.46% Yes
Wuxi Huayin Electric
Appliances Co. , Ltd.
USD 600 USD 450 75.00%
Production of electrical
motor for household
appliances
75.00% Yes
Wuxi Little Swan Sutai
Washing Machine Co. ,
Ltd.
USD 600 USD 450 75.00%
Production of commercial
washer and dryer
75.00% Yes
Wuxi Meitian Refrigerator
Marketing Co.,Ltd
USD 400 USD 300 75.00% Sales of refrigerator 75.00% Yes
Wuxi Little Swan General
Electric Appliances Co. ,
Ltd.
2,800.00 1,960.00 70.00%
Production of washing
machine and dryer
70.00% Yes
Midaqi Little Swan
Industry Co., Ltd.
USD 100 USD 51 51.00%
Production of washing
machine and air conditioner
51.00% No
Wuxi Little Swan Driving
& Control Development
Technology Co. , Ltd
500.00 450.00 90.00%
Development of driving and
control technology
100.00% Yes
Little Swan (Jing Zhou)
San Jin Electronic
Appliances Company
Limited
1,107.02 662.09 57.48%
Production of washing
machine
57.48% Yes
1. Unconsolidated subsidiaries in 2008 and the first half year of 2009 and reasons
L.S.M. Corporation (M) SDN BHD has been stopped operation years ago. The full provision for impairment
of long-term investment for the said company has been accrued and is excluded in the consolidated scope of
the year of 2008.
2. Subsidiaries that they were consolidated in 2008 but disposed during the current period
In Apr. 2009, the Company transferred all equities of Little Swan (Jing Zhou) Electric Appliance Co., Ltd. to
GD Midea Holding Co., Ltd. with the payment for equity transfer of RMB 39.76 million. The Company has
received the said payment for transfer. In accordance with the transfer agreement, in case the previous target
company is transferred, the relevant gains and losses are attributed to the original shareholder. Therefore, the
Company only consolidated the said company’s gains and losses, as well as cash flows from Jan. to Apr.第 45 页
2009.
In the reporting period, all equities of Wuxi Little Swan High-Grade Casting Co., Ltd. has been transferred,
thus, the said company shall not be included in the consolidation scope.
In the reporting period, Little Swan Palaima Industry Co., Ltd has been closed and liquidated, therefore, the
Company only consolidated the said company’s gains and losses, as well as cash flows from Jan. to May
2009.
In the reporting period, Wuxi Little Swan Jiangbo Mould Manufacturing Co., Ltd has been closed and
liquidated, therefore, the Company only consolidated the said company’s gains and losses, as well as cash
flows from Jan. to Jun. 2009.
4. Acquisition of a subsidiary by merger
None.
Ⅴ. Notes to the consolidated financial statements (monetary unit: RMB)
1．Cash
Original currency Exchange rate Equivalent RMB
Cash RMB 259,918.55 1.00 259,918.55
USD 2,549.00 6.83 1 7,414.51
JPY 408.83 7.11 2 ,907.49
SGD 27.80 4.71 1 31.05
280,371.60
Bank deposit RMB 2 02,383,604.29 1.00 2 02,383,604.29
USD 13,664,069.06 6.83 9 3,351,553.44
JPY
GBP 14.09 11.34 1 59.75
EUR
RP
295,735,317.48
Other monetary RMB 4 52,712,613.38 1.00 4 52,712,613.38
452,712,613.38
748,728,302.46
2009-06-30
Items第 46 页
Original currency Exchange rate Equivalent RMB
Cash RMB 250,190.37 1.00 2 50,190.37
USD
JPY
SGD
2 50,190.37
Bank deposit RMB 3 42,172,637.17 1.00 3 42,172,637.17
USD 1 0,240,523.56 6.83 6 9,989,882.35
JPY 4 0,886.05 0.08 3 ,093.03
HKD 1 2,302.67 9.88 1 21,547.92
EUR 1 52,482.88 9.66 1 ,472,832.10
RP 4 ,635,080,311.30 0.00 2 ,888,582.05
4 16,648,574.62
Other monetary RMB 2 01,099,445.35 1.00 2 01,099,445.35
2 01,099,445.35
6 17,998,210.34
2008-12-31
Items
Original currency Exchange rate Equivalent RMB
Fixed deposit 4 37,420,000.00 1.00 437,420,000.00
Bank margin 1 4,117,220.88 1.00 14,117,220.88
Refundable deposits 1 ,175,392.50 1.00 1,175,392.50
Items
2009-06-30
Refundable deposit is attributed to sales of the shares of Bank of Communications.
Original currency Exchange rate Equivalent RMB
Fixed deposit 1 40,728,158.15 1.00 140,728,158.15
Bank margin 6 0,371,287.20 1.00 60,371,287.20
Items
2008-12-31
2. Notes receivable
Category 2009-06-30 2008-12-31
Bank acceptance bill 3 90,661,689.12 381,032,680.58
Trade acceptance bill - -
3 90,661,689.12 381,032,680.58
3. Accounts receivable
（1）Aging analysis第 47 页
Book balance Proportion Reserve for bad debt Book value
Within 1 year 4 74,261,924.52 67.17% 40,899,902.93 433,362,021.60
1 – 2 years 5 9,639,154.78 8.45% 16,481,296.87 43,157,857.91
2 – 3 years 11,114,836.10 1.57% 2,821,826.85 8,293,009.25
3 – 5 years 15,917,248.52 2.25% 13,647,289.34 2,269,959.18
Over 5 years 145,162,289.20 20.56% 145,162,289.20 -
Total 706,095,453.12 100.00% 2 19,012,605.18 4 87,082,847.94
2009-06-30
Aging
Book balance Proportion Reserve for bad debt Book value
Within 1 year 4 16,754,365.44 64.79% 38,025,076.48 378,729,288.96
1 – 2 years 4 7,915,312.50 7.45% 15,731,636.42 32,183,676.08
2 – 3 years 10,521,497.75 1.64% 3,078,721.93 7,442,775.82
3 – 5 years 20,897,517.66 3.25% 16,583,654.91 4,313,862.75
Over 5 years 147,174,087.86 22.88% 147,174,087.86 -
Total 643,262,781.21 100.00% 2 20,593,177.60 4 22,669,603.61
2008-12-31
Aging
2）Accounts receivable by category analysis are listed as below:
Book balance Proportion Reserve for bad debt Book value
Individually significant receivables
1 31,520,962.01 18.63% 88,864,569.02 42,656,392.99
Individually insignificant receivables with high
credit risk in group assessment 7 0,368,930.80 9.97% 63,699,829.32 6,669,101.48
Other insignificant amount 5 04,205,560.31 71.41% 66,448,206.85 437,757,353.46
7 06,095,453.12 100.00% 219,012,605.19 487,082,847.93
2009-06-30
Items
(1) 1*. “Significant Balance Group” refers to the items: the proportion of the single item in the total
amount of Accounts receivable is over 10%; or the year end balance of single item is over
Book balance Proportion Reserve for bad debt Book value
Individually significant receivables
354,006,303.50 55.03% 132,884,398.38 221,121,905.12
Individually insignificant receivables with high
credit risk in group assessment 71,503,064.52 11.12% 66,225,457.82 5,277,606.70
Other insignificant amount 217,753,413.19 33.85% 21,483,321.40 196,270,091.79
643,262,781.21 100.00% 220,593,177.60 422,669,603.61
Items
2008-12-31第 48 页
RMB10,000,000. The aging of the “Significant Balance Group” is within 1 year.
(2) 2* “Single item not material but with high credit risk Group” refers to the items: the aging of the
balances is over 3 years (deducting accounts receivable with significant balance group).
(3) There is no balance related to the shareholders holding over 5 percent stocks.
(4) The amount of account receivable of the top 5 customers is totally as RMB298,186,500.00 which
is 42.23% of the total year-end amount.
4. Advances to the supplier
1）Aging analysis are listed as follows:
Aging 2009-06-30 Proportion 2008-12-31 Proportion
Within 1 year 1 31,540,749.47 98.96% 104,644,943.03 99.32%
1 – 2 years 1 ,284,269.39 0.97% 452,313.74 0.43%
2 – 3 years 6 9,036.95 0.05% 180,916.33 0.17%
3 – 5 years 3 3,112.86 0.02% 82,934.56 0.08%
Over 5 years - 0.00% 504.00 0.00%
1 32,927,168.67 100.00% 105,361,611.66 100.00%
2）In the ending balance of prepayment, there is no account that the Company owes to the shareholders who
hold the shares of 5% or more.
3) The amount of the prepayments of the top 5 suppliers is totally as RMB59,083,800.00 which is 44.45% of
the total period-end amount.
5. Dividends receivable
Investee 2009-06-30 2007-12-31
Jiangsu Little Swan Sanjiang
Electric Appliance Manufacturing
Co., Ltd
1,798,815.52 1,798,815.52
6. Other receivables
1）Aging analysis are listed as follows:
Book balance Proportion Reserve for bad debt Book value
Within 1 year 3 7,416,484.53 21.90% 1,870,824.23 35,545,660.30
1 – 2 years 4 1,149,905.57 24.09% 7,746,808.14 33,403,097.43
2 – 3 years 1 6,579,352.72 9.70% 8,767,769.65 7,811,583.07
Over 3 years 3 6,487,011.88 21.36% 32,224,966.60 4,262,045.28
Over 5 years 3 9,211,253.56 22.95% 39,211,253.56 -0.00
1 70,844,008.26 100.00% 89,821,622.19 8 1,022,386.07
2009-06-30
Aging第 49 页
Book balance Proportion Reserve for bad debt Book value
Within 1 year 6 7,432,062.55 35.42% 2,105,283.29 65,326,779.26
1 – 2 years 3 3,557,695.48 17.63% 8,867,444.29 24,690,251.19
2 – 3 years 1 3,232,728.96 6.95% 9,922,090.13 3,310,638.83
Over 3 years 3 6,979,917.69 19.43% 32,001,343.11 4,978,574.58
Over 5 years 3 9,150,087.05 20.57% 37,773,455.24 1,376,631.81
1 90,352,491.73 100.00% 90,669,616.06 9 9,682,875.67
2008-12-31
Aging
2）Analysis of other receivables by category are listed as below:
Book balance Proportion Reserve for bad debt Book value
Individually significant receivables 1 03,537,556.83 60.60% 47,049,902.04 56,487,654.79
Individually insignificant receivables with high
credit risk in group assessment 3 7,251,513.73 21.80% 35,736,737.31 1,514,776.42
Other insignificant amount 3 0,054,937.70 17.59% 7,034,982.84 23,019,954.86
1 70,844,008.26 100.00% 89,821,622.19 81,022,386.07
2009-06-30
Items
Book balance Proportion Reserve for bad debt Book value
Individually significant receivables 1 08,356,553.89 56.92% 46,122,148.40 62,234,405.49
Individually insignificant receivables with high
credit risk in group assessment 3 8,714,967.10 20.34% 36,671,480.99 2,043,486.11
Other insignificant amount 4 3,280,970.74 22.74% 7,875,986.67 35,404,984.07
1 90,352,491.73 100.00% 90,669,616.06 99,682,875.67
Items
2008-12-31
(1) 1*. “Significant Balance Group” refers to the items: the proportion of the single item in the total
amount of Accounts receivable is over 10%; or the year end balance of single item is over
RMB5,000,000.
(2) 2* “Single item not material but with high credit risk Group” refers to the items: the aging of the
balances is over 3 years.
(3) The detailed information for the balances of Other receivables which have not been accrued for the
bad debts: the Export VAT refund receivable as RMB 12,081,200 at the balance sheet date (aging
within 1 year).
(4) There is no balance related to the shareholders holding over 5 percent stocks.
(5) The amount of the top 5 customers is RMB 55,700,900 which is 32.60% of year-end total amount.
The detailed information as follows:第 50 页
Name of customers
Book balance
Wuxi Lianye Digital Technology Co., Ltd. 2 4,015,394.21
Wuxi Little Swan Pottery Co., Ltd 12,081,245.50
Jiangsu Little Swan Sanjiang Electric Appliance Manufacturing Co., Ltd 11,587,200.00
BSW Household Appliances Co., Ltd. 5,766,705.78
Shanghai Xunci Electron Technology Development Co.,Ltd 2,250,335.60
5 5,700,881.09
7. Inventory
Book balance Reserve for falling
i
Book value
Raw materials 153,389,390.04 22,163,953.33 131,225,436.71
Outside processing materials 3,094,682.66 - 3,094,682.66
Low value consumables 56,684.50 - 56,684.50
Goods in process 16,819,752.07 - 16,819,752.07
Commodity stocks 262,530,564.52 29,674,167.95 232,856,396.57
Total 435,891,073.80 51,838,121.28 384,052,952.52
2009-06-30
Items
Book balance Reserve for falling
i
Book value
Raw materials 213,546,630.72 22,163,953.33 191,382,677.39
Outside processing materials 8,734,670.57 8,734,670.57
Low value consumables 409,034.70 409,034.70
Goods in process 29,101,925.12 1,395,349.38 27,706,575.74
Commodity stocks 500,321,528.51 33,580,799.73 466,740,728.78
Total 752,113,789.62 57,140,102.44 694,973,687.18
2008-12-31
Items
1）Due to influence from selling subsidiaries of the Company, the book value of inventory has decreased
by RMB 108,935,700.
2）Dee to influence from macroeconomic situation and industry status, the Company speeded up the
turnover of inventory to strictly control inventory scale.
8. Sellable financial assets
Items 2009-06-30 2008-12-31
1) Bonds available for sales
2) Equity instruments available for sales 12,179,282.00 7,045,326.00
Bank of Communications (601328) 11,335,481.00 6,650,694.00
Nanjing Xinjiekou Department Store Co.(600682) 383,376.00 239,400.00
Wuhan Huaxin Hi-Tech Co. , Ltd.(400038) 460,425.00 155,232.00
3) Other
Total 1 2,179,282.00 7,045,326.00
Note: the fair value is the closing price on 30th June 2009 which is from the Shanghai Stock Exchange and
Shenzhen Stock Exchange.第 51 页
9．Long-term equity investment
Items 2009-06-30 2008-12-31
Investment in co-operative & affiliated subsidiaries 174,671,435.46 211,212,707.32
Investment in other 6,524,744.00 11,868,582.35
Less: Impairment for long-term equity investment 4,224,744.00 4,224,744.00
Total 176,971,435.46 218,856,545.67
(1) Co-operative & affiliated subsidiaries of the Company
Invested party roportion Initial investment 2008-12-31
Increase/
Decrease
stributed for the current Equity 2009-06-30
Guangzhou Antaida Logistics Co. , Ltd. 20.00 2,000,000.00 3,654,690.68 -29,342.49 3,625,348.19
Wuxi Indesit Home Appliances Co. , Ltd. 30.00 33,768,120.00 28,439,495.02 180,379.48 28,619,874.50
Ningbo Xinle Electric Appliances 32.00 31,233,800.00 35,836,152.49 1,047,559.22 36,883,711.71
BSW Household Appliances Co. , Ltd. 40.00 97,482,661.00 140,526,770.84 43,109,015.29 5,402,262.23 102,820,017.78
Ningbo Xinle Electric Appliances 32.00 2,359,056.00 2,755,598.29 -33,114.99 2,722,483.30
Total 211,212,707.32 - 43,109,015.29 6,567,743.43 174,671,435.46
(2) Long-term equity investment calculated by cost method:
Invested party oportionInitial investment 2008-12-31 Increase/decrease Dividend 2009-06-30
Commercial Bank of Jiangsu <0.01 1,100,000.00 1,100,000.00 1,100,000.00
Commercial Bank of Jingzhou <0.01 5,000,000.00 5,000,000.00 -5,000,000.00 -
Inner Mongolia Baotou Department Store Co <0.01 50,000.00 50,000.00 50,000.00
Suzhou Renmin Department Store Co. , Ltd. <0.01 150,000.00 150,000.00 150,000.00
Hentai Insurance Brokers Co. , Ltd. 3.33 1,000,000.00 1,000,000.00 1,000,000.00
Toshiba Washing Machine (Wuxi) Co. , Ltd. 18.46 3,104,025.00 343,838.35 -343,838.35 -
(Malaysia) Midaqi Little Swan Industry Co., Ltd 4,224,744.00 4,224,744.00 4,224,744.00
Total 11,868,582.35 (5,343,838.35) 6,524,744.00
(3) Impairment provisions for long-term equity investment
Name of subsidiaries 2008-12-31 Increase/decrease 2009-06-30
(Malaysia) Midaqi Little Swan Industry Co., Ltd 4,224,744.00 4,224,744.00
Total 4,224,744.00 0.00 4,224,744.00
10. Investment real estate
Items 2008-12-31 ease for the current epaese for the current pe 2009-06-30
Original price:
House for rent 38,239,072.40 - 3 8,239,072.40 -
38,239,072.40 - 3 8,239,072.40 -
Accumulative depreciation and accumulative amortization:
House for rent 7,764,702.30 - 7 ,764,702.30 -
7,764,702.30 - 7 ,764,702.30 -
Reserve for impairment
f i t t l House for rent -
- - - -
Book value of investment real estate
House for rent 30,474,370.10 - 3 0,474,370.10 -
30,474,370.10 - 30,474,370.10 -第 52 页
Due to relocation, the leased properties have been suspended form lease for disposal.
11. Fixed assets and depreciation
Items 2008-12-31
Increase for the
current period
Decrease for the
current period
2009-06-30
Original value:
House and building 304,550,694.42 58,052,345.55 112,193,351.11 250,409,688.86
Machinery equipment 572,613,463.15 10,507,598.13 173,346,076.74 409,774,984.54
Transportation vehicles 17,316,099.71 358,313.84 5,896,844.25 11,777,569.30
Electric equipment and
other 122,584,932.90 646,216.08 57,454,426.45 65,776,722.53
Decoration of
fixed assets
1,712,955.13 - - 1,712,955.13
1,018,778,145.31 69,564,473.60 348,890,698.55 739,451,920.36
Accumulative
depreciation:
House and building 64,346,017.32 11,720,050.97 18,147,843.94 57,918,224.35
Machinery equipment 380,650,357.01 12,972,086.70 105,549,180.82 288,073,262.89
Transportation vehicles 10,110,953.52 597,164.41 3,257,279.95 7,450,837.98
Electric equipment and
other 60,535,410.65 3,906,740.45 20,247,391.69 44,194,759.41
Decoration of
fixed assets
467,273.94 126,475.78 - 593,749.72
516,110,012.44 29,196,042.53 147,201,696.40 398,230,834.35
Net value of fixed
assets:
House and building 240,204,677.10 46,332,294.58 94,045,507.17 192,491,464.51
Machinery equipment 191,963,106.14 -2,464,488.57 67,796,895.92 121,701,721.65
Transportation vehicles 7,205,146.19 -238,850.57 2,639,564.30 4,326,731.32
Electric equipment and
other 62,049,522.25 -3,260,524.37 37,207,034.76 21,581,963.12
Decoration of
fixed assets
1,245,681.19 -126,475.78 - 1,119,205.41
502,668,132.87 40,241,955.29 201,689,002.15 341,221,086.01
Reserve for
impairment of fixed
assets:
House and building - - -
Machinery equipment 223,809.86 - 223,809.86 -
Transportation vehicles - - -
Electric equipment and
other 61,749.00 - 17,017.83 44,731.17
Decoration of
fixed assets
- -
285,558.86 - 240,827.69 44,731.17
Net fixed assets:
House and building 240,204,677.10 46,332,294.58 94,045,507.17 192,491,464.51
Machinery equipment 191,739,296.28 -2,464,488.57 67,573,086.06 121,701,721.65
Transportation vehicles 7,205,146.19 -238,850.57 2,639,564.30 4,326,731.32
Electric equipment and
other 61,987,773.25 -3,260,524.37 37,190,016.93 21,537,231.95
Decoration of
fixed assets
1,245,681.19
502,382,574.01 40,241,955.29 201,448,174.46 341,176,354.84
Notes:
(1) The addition of fixed assets as RMB 450,200.00 transferred from the Construction in progress;
(2) No financial lease and idle assets;
(3) Some Plant & buildings and Machinery equipment have been mortgaged for short-term loans, the
detailed information can be found in notes of “short-tem loans”.
(4) During the reporting period, the Company transferred all the equities of its subsidiaries as Wuxi Little第 53 页
Swan High-Grade Casting Co., Ltd.、Little Swan (Jinzhou) Electric Appliance Co., Ltd., as well as
liquidation of Little Swan Palaima Industry Co., Ltd and Wuxi Little Swan Jiangbo Mould Manufacturing
Co., Ltd, the related cost & accumulated depreciation of the fixed assets as RMB 254,393,700 and RMB
104,458,000 had been transferred out accordingly.
12 Construction in progress
Notes:
(1) No capitalized interest included in the construction in progress for the current period.
(2) The “other transfers” refers to construction in progress transfer together with the total equity share
transfer of Jing Zhou Electric Appliance.
(3) The “out of town to rural areas” plan shall be completed before 31st Oct. 2009.
13. Intangible assets
Projects 2008-12-31 Increase for the current period
Transferred to fixed
assets
Transferred to other 2009-06-30
Movement & new plant project 10,158,537.70 127,261,969.11 - - 137,420,506.81
Plant of Jing Zhou project 2,681,615.08 288,700.00 - 2,970,315.08 -
Projects of Jing Zhou San
jin Co. 306,555.00 - 306,555.00 - -
Plant engineering for Little
Swan General Electric
Appliances
4,596,199.76 143,659.15 4,452,540.61
Other 1,224,631.80 491,362.74 33,900.00 1,682,094.54
Total 14,371,339.58 132,638,231.61 450,214.15 3,004,215.08 143,555,141.96第 54 页
Items 2008-12-31
Increase for the current
period
Decrease for the current
period 2009-06-30
Original value of intangible
assets
Land use right 163,086,482.35 - 28,354,325.00 134,732,157.35
Patent technology 18,550,000.00 654,966.08 - 19,204,966.08
Software 2,693,446.22 - 495,431.66 2,198,014.56
184,329,928.57 654,966.08 28,849,756.66 156,135,137.99
Accumulative amortization:
Land use right 13,074,499.28 1,524,305.63 4,497,745.61 10,101,059.30
Patent technology 17,803,000.00 829,245.80 - 18,632,245.80
Software 1,101,261.97 123,149.10 275,591.64 948,819.43
31,978,761.25 2,476,700.53 4,773,337.25 29,682,124.53
Reserve for impairment of
intangible assets:
Land use right -
Patent technology -
Software -
- - - -
Net value of intangible
assets:
Land use right 150,011,983.07 -1,524,305.63 23,856,579.39 124,631,098.05
Patent technology 747,000.00 -174,279.72 - 572,720.28
Software 1,592,184.25 -123,149.10 219,840.02 1,249,195.13
152,351,167.32 -1,821,734.45 24,076,419.41 126,453,013.46
During the reporting period, the Company transferred all the equities of its subsidiaries as Wuxi Little Swan
High-Grade Casting Co., Ltd. and Little Swan (Jinzhou) Electric Appliance Co., Ltd., as well as liquidation
of Little Swan Palaima Industry Co., Ltd and Wuxi Little Swan Jiangbo Mould Manufacturing Co., Ltd, as a
result, the related original value and accumulated depreciation of the intangible assets as RMB 27,916,600
and RMB 4,077,400 had been transferred out accordingly.
2）The land use right has been mortaged for short – term loans. For the details, can be found in the notes of
“Short-term loan”.
14. Long-term deferred expenses
Items 2008-12-31
Increase/Decrease
for the current
period
Amortization for
the current period
2009-06-30
Mould 9,400,189.45 -1,095,270.13 1,296,684.97 7,008,234.35
Improvement o 6,939,635.83 28,711.36 844,863.02 6,123,484.17
Other - -
1 6,339,825.28 -1,066,558.77 2,141,547.99 13,131,718.52
15．Deferred tax debit
Items 2009-06-30 2008-12-31
73,913,437.85 7 3,949,611.44
Total 7 3,913,437.85 7 3,949,611.44
Deductible temporary difference arising
from assets
16. Impairment of provisions for assets第 55 页
Decrease for the current period
Write-off Transfer-out
I. Total reserve for bad debts 311,262,793.66 4,672,084.64 167,470.43 6,933,180.50 308,834,227.37
Including: Accounts
receivable
220,593,177.60 4,672,084.64 165,320.43 6,087,336.63 219,012,605.18
Other receivables 90,669,616.06 - 2,150.00 845,843.87 89,821,622.19
II. Total reserve for falling
price of inventory
57,140,102.44 - 1,030,691.77 4,271,289.39 51,838,121.28
III. Reserve for impairment of
fixed assets
285,558.86 - 240,827.69 44,731.17
IV. Reserve for impairment of lo 4,224,744.00 - 4,224,744.00
Total 372,913,198.96 4,672,084.64 1,198,162.20 11,445,297.58 364,941,823.82
Items
Withdrawal for the
current period
2008-12-31 2009-06-30
17. Short – term loans
Items 2009-06-30 2008-12-31
Collateral loan 21,000,000.00 66,000,000.00
Secured borrowings - 10,000.00
Loan on security -
Credit loan 8,900,000.00 8,920,000.00
29,900,000.00 74,930,000.00
(1) Credit loan is RMB 8,900,000, including the guarantee of RMB 8,900,000 for bank loan provided for its
subsidiaries.
(2) Refers to the Mortgaged loan:
The subsidiaries of Little Swan (Jing Zhou) San Jin Electric Appliance Co., Ltd. obtained the loan quote
from Commercial Bank Jing Zhou Branch as RMB20,500,000 by real estate of 21,090.89 sq.m., land of
96,665.24 sq.m. and 8-set equipment, by the date 30th Jun., 2009 the mortagaged balance is
RMB10,000,000.00; And obtained the loan quote as RMB12,500,000 from Bank of China by the 32-set
equipment, at the date as 30th Jun., 2009, the mortagaged balance is RMB11,000,000.00.
(3) No unpaid matured short-term loan.
(4) In the current period, the short-term loan has decreased by 45,030,000, which are attributed to: the
Company sold the equities of Jingzhou Electric Appliance, at the same time, transferred its short-term loan.
18. Notes payable
Items 2009-06-30 2008-12-31
Bank acceptance bill 30,994,702.20 114,000,000.00
Trade acceptance bill
3 0,994,702.20 114,000,000.00
(1) The company provided cash deposit to bank acceptance as RMB 13,947,900.00, and provided guarantee
to subsidiaries as RMB 6,546,800.00.
(2) In the reporting period, notes payable has reduced by RMB 83,005,300, which are attributed to: the
Company sold the equities of Jingzhou Electric Appliance, at the same time, transferred its notes payable.第 56 页
19. Accounts payable
Aging 2009-06-30 2008-12-31
Within 1 year 9 87,610,495.70 9 59,542,858.70
1-2 years 2 ,976,419.05 15,739,980.93
2-3 years 4 79,455.19 6,997,336.33
3-5 years 1 ,186,156.99 4,049,508.90
Over 5 years 6 16,678.75 3,635,778.11
Total 992,869,205.68 989,965,462.97
(1) There is no balance related to the shareholders holding over 5 percent stocks.
(2) The amount of account receivable of the top 5 customers is totally as RMB 79,466,100 which is
8.00% of the total closing amount.
20. Advances from customers
Aging 2009-06-30 2008-12-31
Within 1 year 9 7,748,067.25 2 09,284,505.07
1-2 years 1 0,995,852.76 2,979,288.10
2-3 years 204,942.07 1,355,411.02
3-5 years 685,505.96 2,862,888.27
Over 5 years 2,509,842.23 8,999,563.77
Total 1 12,144,210.27 225,481,656.23
Note: (1) There is no balance related to the shareholders holding over 5 percent stocks;
(2)The amount of the top five customers as RMB 18,033,600 is 16% of the total closing balances;
21. Payrolls payable
2008-12-31 ncrease for the current perPioadyment for the current period 2009-06-30
I Salary, bonus, allowance and subsi 6,658,656.76 6 1,816,872.02 63,751,935.62 4,723,593.16
II Welfare payable 1 34,100.00 1 22,367.89 256,467.89 -
III Social insurance funds 5,569,427.19 1 4,081,306.01 16,126,404.47 3,524,328.73
IV Housing fund 4,788,325.93 5 ,414,240.49 5,462,028.78 4,740,537.64
V Labor union funds & employee ed 5,420,271.87 5 70,133.26 1,848,427.43 4,141,977.70
VI Compensation payable for termina 1 4,896,447.41 1 62,254.67 8,408,515.26 6,650,186.82
VII Other 6,070,250.38 2 0,990.00 4,505,691.20 1,585,549.18
4 3,537,479.54 8 2,188,164.34 100,359,470.65 25,366,173.23
Items
In the reporting period, payrolls payable has decreased by a big margin, which was mainly because of第 57 页
compensation paid by the Company due to sever labor relation
22. Taxes payable
2009-06-30 2008-12-31
I VAT (10,863,474.81) 400,565.67
II Business tax 1,953,601.61 2,623,359.29
III Income tax 22,214,711.79 24,148,563.76
IV Individual income tax 177,652.65 221,571.10
V House tax 422,898.31 423,395.55
VI Use tax of land 0.00 484,438.30
VII Stamp duty 0.00 386,108.32
VIII Urban maintenance and construction tax 878,594.46 1,381,639.92
IX Educational charge 774,400.84 1,865,323.68
X. Local fund 1,369,380.01 4,375,504.64
XI. Other
16,927,764.86 36,310,470.23
Items
Total
23. Interest payable
Items 2009-06-30 2008-12-31 Accrued
Bank loan interests 442,452.66 5 62,686.25 Loan contract
24. Dividend payable
Name of shareholders 2009-06-30 2008-12-31
Minority interests 2,967,922.95 3,527,937.47
25. Other payables
Aging 2009-06-30 2008-12-31
Within 1 year 112,053,062.57 99,778,216.51
1-2 years 1,546,349.91 28,788,740.47
2-3 years 3,236,175.32 666,004.85
3-5 years 1,532,571.08 3,545,627.01
Over 5 years 541,951.46 3,053,754.55
Total 118,910,110.34 135,832,343.39
(1) The closing balance included RMB 9,517,910.36 related to the shareholders holding over 5 percent
stocks, which are attributed to the corresponding gains and losses the company should paid to GD Midea for第 58 页
transferring 51% equities of Jingzhou Electric Appliance from 31 Dec. 2008 to 30 Apr. 2009.
(2) The amount of the top five customers as RMB 55,969,500 is 47% of the total year-end balances.
26. Estimated liabilities
Items 2009-06-30 2008-12-31
Payment for quality risk 11,806,232.85 14,541,858.03
Loss on debts restructuring 4,000,000.00
Total 11,806,232.85 18,541,858.03
Note:
Note:
(1) Quality guarantee payable refers to the estimated liabilities as RMB11,810,000.00 based on the overseas
sales, especially in American market and the contract with GE Group.
(2) Equity transfer of Wuxi Little Swan High-Grade Casting Co., Ltd. has been completed, the corresponding
debt restructuring loss was realized and carried out.
27. Deferred taxation credit
Items 2009-06-30 2008-12-31
Change in fair value of Financial
assets available for sales
1,571,202.30 801,108.90
28．Share capital
29．Capital surplus
Item 2008-12-31 ase for the current paese for the current p 2009-06-30
Stock premium 434,041,972.30 4 34,041,972.30
Transferred-in from capital
reserve
4 0,177,175.90 4 0,177,175.90
Gains and losses on change in
fair value
4 ,539,617.10 4,363,862.60 8,903,479.70
Provision for equity
investment
1 ,705,937.74 36,742,961.20 38,448,898.94
4 80,464,703.04 4 1,106,823.80 - 521,571,526.84
New issue Restriction release Others
Circulating A
shares subject to
trading moratorium
143,825,935.00 143,825,935.00
Circulating A
shares not subject
to trading
moratorium
212,793,953.00 212,793,953.00
Circulating B
shares not subject
to trading
moratorium
191,035,872.00 191,035,872.00
Total shares 547,655,760.00 547,655,760.00
Items
Increase/decrease for the current period
2008-12-31 2009-06-30第 59 页
30. Surplus reserve
31. Surplus reserve
Items 2009-06-30 2008-12-31
Net profit from the current period 62,708,321.42 25,007,833.46
Less: Minority intrest -4,683,985.69 -15,030,478.55
Net profit attributable to shareholders ’ of the parent
company 67,392,307.11 40,038,312.01
Add: beginning balance of undistributed profit 426,704,375.03 390,435,672.81
Less: accrue of statutory surplus reserve 3,769,609.79
Less: accrue of Statutory Public Welfare fund
Less: Cash dividends payable
Closing balance of Undistributed profit 494,096,682.14 426,704,375.03
0.00 0.00
32．Gross revenue and cost
1）Operation revenue and operating cost are listed as below:
Revenue Cost Revenue Cost
Main operation
Washing machine 1,585,532,471.28 1,190,849,657.63 1,484,835,484.56 1,126,833,991.51
Refrigerator 177,632,340.06 178,482,187.27 438,192,000.80 363,354,107.55
Other 55,831,127.69 50,478,235.32 290,696,684.02 271,698,254.21
Subtotal 1,818,995,939.03 1,419,810,080.22 2,213,724,169.38 1,761,886,353.27
Other business
Sales for material 79,246,724.32 73,867,427.83 198,728,745.31 169,912,473.01
Rent 1,943,845.43 1,316,934.98
Other 4,245,960.89 2,871,103.17 10,032,221.67 4,680,896.89
Subtotal 83,492,685.21 76,738,531.00 210,704,812.41 175,910,304.88
Total 1,902,488,624.24 1,496,548,611.22 2,424,428,981.79 1,937,796,658.15
January-June 2009 January-June 2008
Items
2）The total revenue of top five trade clients and percentage in the total sales revenues
From Jan. to Jun. 2009, the total sales revenue from the top five clients is RMB 748,802,600, taking up
39.36% of operating revenue.
33. Sales tax and associate charges
Items 2008-12-31 e for the curraesnet for the current p 2009-06-30
Statutory surplus
reserve
153,321,373.03 2,487,569.73 150,833,803.30
Total 153,321,373.03 0.00 2,487,569.73 150,833,803.30第 60 页
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Urban maintenance and construction
t
6,731,662.70 2,543,168.83
Educational fee 3,768,928.19 3,160,753.93
Business tax 102,334.33 1,080,578.40
Other 357,288.55 715,046.54
Totaldhnz 10,960,213.77 7,499,547.70
34. Selling expenses
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Selling expenses 238,060,212.18 299,080,889.25
35. General & administrative expenses
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Administrative expense 67,681,769.63 80,164,564.81
36. Financial expenses
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Interest expense 3,821,070.93 10,670,705.00
Less: interest income 3,292,046.69 5,436,579.90
Add: exchange loss 658,396.50 18,420,027.59
Add: other 1,025,391.46 6,085,419.56
Total 2,212,812.20 29,739,572.25
37. Impairment provisions of assets
Jan.-Jun. 2009 Jan.-Jun. 2008
4,672,084.64 8,329,662.79
15,847.20
4,672,084.64 8,345,509.99
Items
Loss on bad debts
Loss on falling price of inventory
Loss on long-term equity investment
38. Investment income
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Income of equity transfer and liquidation -30,639,756.48 343,101.75
Available-for-sale financial assets 1,175,392.50 -
Income measured by equity method 6,567,743.43 40,159,135.95
Dividends income 25,000.00 247,515.00
-22,871,620.55 40,749,752.70
39. Non-operating income第 61 页
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Government grants 3,010,000.00 641,623.04
Penalties income 883,046.55 576,069.73
Others 966,676.21 3,022,870.35
Transfer of fixed assets 1 4,568,429.91 3,332,966.42
Debt restructuring -
Donation
Accepting a claim - 536,219.18
1 9,428,152.67 8,109,748.72
40. Non-operating expenses
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Loss from disposal of fixed assets 5,569,535.94 2,281,435.93
Fixed assets inventory shorts 2 ,299.23 289,687.89
Penalties expense 70,264.92
Compensation expenses -
Donations expenses 250,000.00 20,620.00
Debts restructuring -
Extraordinary loss 1 ,382,199.97
Fund for grain and flood protection 712,837.75 5,422,710.21
Other 641,532.50 2,689,381.31
7,246,470.34 12,086,035.31
41. Corporate income tax
Jan.-Jun. 2009 Jan.-Jun. 2008
Current income tax expense 11,061,130.54 22,997,699.72
Deferred income tax expense (2,106,469.59) 4,778,519.09
8,954,660.96 27,776,218.81
42. Cash received from other operating activities
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Interest income 3 ,017,930.53 5 ,436,579.90
Rental income - 1,943,845.43
Subsidy revenue 3 ,010,000.00 6 41,623.04
Claim and penalty 8 83,046.55 1,112,288.91
Other 2 7,639,145.06 4 7,910,069.09
3 4,550,122.14 5 7,044,406.37
43. Cash paid for other operating activities
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Sales expenses 147,949,873.09 263,813,004.59
Administration expenses 19,701,002.57 30,804,774.80
Net increase/decrease in guaranty money for
deposits 0.00 (90,499,301.43)
Other 2,805,853.77 7,071,449.32
170,456,729.43 211,189,927.28第 62 页
Ⅵ. Principal notes to the financial statements of the parent company
1. Accounts receivable
(1) Aging analysis
账面余额比例坏账准备账面价值
1年以内 2 43,769,305.43 73.83% 12,302,971.39 231,466,334.04
1年至2年 - 0.00% - -
2年至3年 - 0.00% - -
3年至5年 2 ,254,656.37 0.68% 2,254,656.37 -
5年以上 8 4,158,094.11 25.49% 84,158,094.11 -
3 30,182,055.91 100.00% 98,715,721.87 231,466,334.04
账 龄
2009-06-30
账面余额比例坏账准备账面价值
1年以内 280,175,333.12 71.73% 10,801,131.67 269,374,201.45
1年至2年0.00% -
2年至3年 42,000.00 0.01% 42,000.00 -
3年至5年 2,917,271.44 0.75% 2,917,271.44 -
5年以上 107,444,321.30 27.51% 107,444,321.30 -
390,578,925.86 100.00% 1 21,204,724.41 269,374,201.45
账 龄
2008-12-31
2）Analysis by category as below:
账面余额比例坏账准备账面价值
单项金额重大的应收款项*1 157,306,843.87 47.64% 64,973,905.42 92,332,938.45
单项金额不重大但按信用风险特征组合后
该组合的风险较大的应收款项*2
25,047,854.74 7.59% 25,047,854.74 -
其他不重大应收款项 1 47,827,357.30 44.77% 8,693,961.71 139,133,395.59
330,182,055.91 100.00% 98,715,721.87 231,466,334.04
项 目
2009-06-30
账面余额比例坏账准备账面价值
单项金额重大的应收款项*1 263,191,027.36 67.38% 87,641,606.70 175,549,420.66
单项金额不重大但按信用风险特征组合后
该组合的风险较大的应收款项*2
25,710,469.81 6.58% 24,746,725.86 963,743.95
其他不重大应收款项 1 01,677,428.69 26.03% 8,816,391.85 92,861,036.84
390,578,925.86 100.00% 121,204,724.41 269,374,201.45
项 目
2008-12-31
1* “Significant Balance Group” refers to the items: single receivable balance is over 10% of the
Total receivables; or single receivable balance over RMB10,000,000.
2* “Single item not material but with high credit risk Group” refers to the items: the aging of the
balances is over 3 years.
3）The information list for the top 5 customers:
Book balance Nature ortion in total a
Suning Corporation Nanjing Branch Company 3 4,474,499.95 Current payment 10.44%
Jiangsu Little Swan Marketing Co., Ltd. 3 0,150,094.36 Current payment 9.13%
Gansu Gome Logistics Co., Ltd. 1 2,395,339.13 Current payment 3.75%
Wuxi Little Swan Import & Export Co., Ltd 1 1,265,321.04 Current payment 3.41%
Nanning Gome Logistics Co., Ltd. 7 ,339,139.49 Current payment 2.22%
9 5,624,393.97 28.96%
Name of customers
2009-06-30
2. Other receivables第 63 页
(1) Aging analysis
Book balance Proportion Reserve for bad debt Book value
Within 1 year 3 8,832,678.90 20.60% 2,318,433.50 36,514,245.40
1 – 2 years 3 5,150,800.89 18.64% 12,628,738.26 22,522,062.63
2 – 3 years 18,251,174.66 9.68% 19,953,866.75 -1,702,692.09
3 – 5 years 27,261,908.16 14.46% 20,936,976.03 6,324,932.13
Over 5 years 69,048,019.33 36.62% 69,048,019.33 -
188,544,581.94 100.00% 1 24,886,033.87 63,658,548.07
Aging
2009-06-30
Book balance Proportion Reserve for bad debt Book value
Within 1 year 1 10,277,456.41 43.67% 3 ,092,330.98 107,185,125.43
1 – 2 years 2 3,903,175.88 9.47% 1 2,628,738.26 11,274,437.62
2 – 3 years 22,079,314.81 8.74% 1 9,179,969.27 2,899,345.54
3 – 5 years 41,876,020.84 16.58% 3 6,971,351.90 4,904,668.94
Over 5 years 54,390,275.27 21.54% 5 3,013,643.46 1,376,631.81
252,526,243.21 100.00% 1 24,886,033.87 127,640,209.34
Aging
2008-12-31
2）Analysis of other receivables by aging are listed as follows:
Book balance Proportion Reserve for bad debt Book value
Individually significant receivables 1 26,825,460.21 67.27% 90,892,639.98 35,932,820.23
Individually insignificant receivables with
high credit risk in group assessment 26,609,021.23 14.11% 26,609,021.23 -
Other insignificant amount 35,110,100.50 18.62% 7,384,372.66 27,725,727.84
1 88,544,581.94 100.00% 124,886,033.87 63,658,548.07
Book balance Proportion Reserve for bad debt Book value
Individually significant receivables 2 08,723,789.09 82.65% 90,892,639.98 117,831,149.11
Individually insignificant receivables with
high credit risk in group assessment 33,688,301.89 13.34% 33,241,859.02 446,442.87
Other insignificant amount 10,114,152.23 4.01% 751,534.87 9,362,617.36
2 52,526,243.21 100.00% 124,886,033.87 127,640,209.34
Items
2009-06-30
Items
2008-12-31
1* “Significant Balance Group” refers to the items: single receivable balance is over 10% of the
Total receivables; or single receivable balance over RMB5,000,000;
2* “Single item not material but with high credit risk Group” refers to the items: the aging of the
balances is over 3 years.
(3) There is no balance related to the shareholders holding over 5 percent stocks.第 64 页
(4) The information list for the top 5 customers:
Book balance Nature tion in totarlo vision for bad deb
Wuxi Little Swan Sutai Washing Mach 37,388,713.47 Borrowing 19.83% 21,420,328.93
Wuxi Little Swan Meitian Refrigerat 28,182,562.65 Borrowing 14.95% 28,182,562.65
Wuxi Feiling Electronics Co., Ltd 1 2,843,734.73 Current payament 6.81% -
Wuxi Little Swan Pottery Co., Ltd 1 2,081,245.50 Borrowing 6.41% 3,804,445.48
Jiangsu Little Swan Sanjiang Electr 11,587,200.00 Borrowing 6.15% 579,360.00
1 02,083,456.35 54.15%
Name of customers
2009-06-30
3. Sellable financial assets
Items 2009-06-30 2008-12-31
1) Bonds available for sales
2) Equity instruments available for sales 1 2,179,282.00 7 ,045,326.00
Bank of Communications (601328) 1 1,335,481.00 6 ,650,694.00
Nanjing Xinjiekou Department Store Co.(600682) 3 83,376.00 2 39,400.00
Wuhan Huaxin Hi-Tech Co. , Ltd.(400038) 4 60,425.00 1 55,232.00
3) Other
Total 1 2,179,282.00 7 ,045,326.00
4. Long-term equity investment
Items 2009-06-30 2008-12-31
Investment in subsidiaries 630,844,436.72 7 24,253,040.62
Investment in co-operative & affiliated subsidiaries 174,671,435.46 2 11,212,707.32
Investment in other 6,474,744.00 6,818,582.35
Less: Impairment of long-term equity investment 4,224,744.00 4,224,744.00
Total 807,765,872.18 9 38,059,586.29
1) Investment in subsidiaries
Invested party Proportion % Initial investment 2008-12-31 Increase/
Decrease
istributed for the current Equity 2009-06-30
Jiangsu Little Swan Marketing Co 99.54 417,550,000.00 417,550,000.00 417,550,000.00
Wuxi Feiling Electronics Co., Lt 73.00 19,620,041.50 25,660,308.10 25,660,308.10
Wuxi Little Swan Import & Export 88.46 57,500,000.00 57,500,000.00 57,500,000.00
Wuxi Little Swan Huayin Electric 75.00 37,313,630.00 37,313,630.00 37,313,630.00
Wuxi Little Swan Sutai Washing M 75.00 37,259,587.50 37,259,587.50 37,259,587.50
Wuxi Meitian Refrigerator Market 75.00 24,840,000.00 24,840,000.00 24,840,000.00
Wuxi Little Swan High-Grade Cast 75.00 36,013,440.00 36,013,440.00 -36,013,440.00 0.00
Wuxi Little Swan General Electri 70.00 19,600,000.00 19,600,000.00 19,600,000.00
Little Swan (Jinzhou) Electric A 51.00 44,594,267.90 44,594,267.90 -44,594,267.90 0.00
Little Swan (Jinzhou) Sanjin Ele 57.84 6,620,911.12 6,620,911.12 6,620,911.12
Wuxi Little Swan Jiangbo Mould M 70.00 7,000,000.00 7,000,000.00 -7,000,000.00 0.00
Wuxi Little Swan Drive and Contr 90.00 4,500,000.00 4,500,000.00 4,500,000.00
Little Swan Palaima Industry Co., Ltd 100.00 5,800,896.00 5,800,896.00 -5,800,896.00 0.00
Total 718,212,774.02 724,253,040.62 -93,408,603.90 - - 6 30,844,436.72第 65 页
2) Investment in co-operative & affiliated subsidiaries
Invested party Proportion % Initial investment 2008-12-31 Increase/
Decrease
istributed for the current Equity 2009-06-30
Guangzhou Antaida Logistics Co. 20.00 2,000,000.00 3,654,690.68 -29,342.49 3 ,625,348.19
Wuxi Indesit Home Appliances Co. 30.00 33,768,120.00 28,439,495.02 180,379.48 2 8,619,874.50
Ningbo Xinle Electric Appliances 32.00 - 35,836,152.49 1,047,559.22 3 6,883,711.71
BSW Household Appliances Co. , L 40.00 97,482,661.00 140,526,770.84 43,109,015.29 5,402,262.23 1 02,820,017.78
Ningbo Little Swan Electric Appl 32.00 2,359,056.00 2,755,598.29 -33,114.99 2 ,722,483.30
Total 211,212,707.32 - 43,109,015.29 6 ,567,743.43 174,671,435.46
3）Long-term equity investment calculated by cost method:
Invested party Proportion % Initial investment 2008-12-31 2009-06-30
Commercial Bank of Jiangsu <0.01 1,100,000.00 1,100,000.00 1,100,000.00
Suzhou Renmin Department Store Co. , Ltd. <0.01 150,000.00 150,000.00 150,000.00
Hentai Insurance Brokers Co. , Ltd. 3.33 1,000,000.00 1,000,000.00 1,000,000.00
(Malaysia) Midaqi Little Swan Industry Co., Ltd 4,224,744.00 4,224,744.00 4,224,744.00
Toshiba Washing Machine (Wuxi) C 18.46 3,104,025.00 343,838.35 -
Total 6,818,582.35 6,474,744.00
4）Impairment of long-term equity investment
Name of subsidiaries 2008-12-31 Increase for the current
period
(Malaysia) Midaqi Little Swan Industry C 4,224,744.00
Total 4,224,744.00
- 343,838.35
(343,838.35)
Increase/Decrease
4,224,744.00
2009-06-30 Withdrawal basis
4,224,744.00 call for closing a business for
5. Operating revenue and cost
Parent company’s operation revenue and cost are from income and cost of other business, which are listed as
below:
Jan.-Jun. 2009 Jan.-Jun. 2008
Revenue Cost Revenue Cost
Washing
machine
1,120,109,866.45 783,970,165.17 1,019,304,276.09 741,752,115.17
Refrigerator 60,408,181.17 58,822,399.45 225,115,633.52 167,928,702.31
Subtotal 1,180,518,047.62 842,792,564.62 1,244,419,909.61 909,680,817.48
Sale of
materials
59,850,721.71 61,391,578.38 93,092,740.17 90,191,950.58
Rent 6,942,540.77 5,571,185.68
Other 2,122,574.22 2,436,966.85 6,604,325.69 5,962,238.20
Subtotal 61,973,295.93 63,828,545.23 106,639,606.63 101,725,374.46
1,242,491,343.55 906,621,109.85 1,351,059,516.24 1,011,406,191.94
Items第 66 页
Ⅶ. Affiliated parties and affiliated party transactions
1. Relationship of related parties
1）Controlling shareholder
Name of controlling
shareholder
Registere
d address
Nature of the business
Relationship with
the Company
Economic
type
Legal
presentative
GD Midea Electric
Appliances Co., Ltd.
Guangdo
ng
Foshan
Production and sale of
commercial air
conditioner, refrigerator,
washing machine and
compressor, and
after-sales service
Parent
company
joint-stock
company
He
Hengjian
2. Changes of registered capital for controlling subsidiaries
(monetary unit: ’0,000)
Name of the subsidiaries
Opening
amount
Current
increase
Current
decrease
Closing amount
Guangdong Midea Electric Appliances
Co., Ltd.
189,106.99 - - 189,106.99
Jiangsu Little Swan Marketing Co.,
Ltd. 41,950.00 - - 41,950.00
Wuxi Feiling Electronics Co., Ltd. USD362.46 - - USD362.46
Wuxi Little Swan Import and export
Co., Ltd. 6,500.00 - - 6,500.00
Wuxi Huayin Electric Appliances Co.,
Ltd. USD600 - - USD600
Wuxi Little Swan Sutai Washing
Machine Co.,Ltd. USD600 - - USD600
Wuxi Meitian Refrigerator Marketing
Co.,Ltd USD400 - - USD400
Wuxi Little Swan Gneral Electric
Appliances Co., Ltd.
2,800.00 - - 2,800.00
L.S.M. Corporation (M) SDN BHD USD100 - - USD100
Wuxi Little Swan Driving & Control
Development Technology Co., Ltd. 500.00 - 500.00
Jiangsu Little Swan San Jin Electrial
Appliances Co., Ltd. 1,107.02 1,107.02
3. Changes of share equities for controlling parities
(Monetary unit: ’0,000)
Name of the subsidiaries Opening amount Current increase
Current
decrease
Closing amount第 67 页
amount ％ amount ％ amount ％ amount ％
Guangdong Midea Electric
Appliances Co., Ltd. 13,151.00 24.01 13151.00 24.01
Jiangsu Little Swan Marketing
and Sales Co., Ltd. 41,755.00 99.54 41,755.00 99.54
Wuxi Feiling Electronics Co., Ltd. 2,566.03 73.00 2,566.03 73.00
Wuxi Little Swan Import and
Export Co., Ltd. 5,750.00 88.46 5,750.00 88.46
Wuxi Huayin Electric Appliances
Co., Ltd. 3,731.36 75.00 3,731.36 75.00
Wuxi Little Swan Sutai Washing
Machine Co., Ltd. 3,725.96 75.00 3,725.96 75.00
Wuxi Meitian Refrigerator
Marketing Co., Ltd 2,484.00 75.00 2,484.00 75.00
Wuxi Little Swan General Electric
Appliances Co., Ltd. 1,960.00 70.00 1,960.00 70.00
L.S.M. Corporation (M) SDN
BHD 422.47 51.00 422.47 51.00
Wuxi Little Swan Driving &
Control Development Technology
Co., Ltd.
500.00 100.00 500.00 100.00
Little Swan San Jin Electrical
Appliances Co., Ltd 636.30 57.48 636.30 57.48
4. Un-controlling parties
Name of the subsidiaries Relationship of the
company
BSW Household Appliances Co., Ltd. Joint – operative
Guangzhou Antaida Material Distribution
Co., Ltd.
Joint – operative
Little Swan Mobile Communication Co.,
Ltd.
Joint – operative
Wuxi indesit Home Appliances Co., Ltd. Joint – operative
Little Swan (Ningbo) Electric
Appliances Co., Ltd.
Joint – operative
Ningbo Xinle Electric Appliances Co.,
Ltd.
Joint – operative
Fo Shan Wei Ling Washing Motor Co.,
Ltd.
Under control of same
parent company
He Fei Hua Ling Share Holding Co., Ltd.
Under control of same
parent company
He Fei Rongshida Washing Machinery
Co., Ltd.
Under control of same
parent company
Fo Shan Midea Materials Co., Ltd.
Under control of same
parent company
2. Transaction among the related parties
1）Purchase commodity第 68 页
Amount (RMB'0000) % Amount (RMB'0000) %
Ningbo Xinle Household Appliances Co., Ltd 509.21 0.34% 4,007.11 2.21% Market
price
Wuhu Ande Logistics Co., Ltd. 648.20 0.43% Market
price
Hefei Royalstar Washing Machine
Equipment Manufacturing Co., Ltd. 15,007.54 9.92% Market
price
Foshan Weiling Washing Motor
Manufacture Co., Ltd. 1,547.97 1.02% Market
price
Foshan Midea Materials Supply Co., Ltd. 1,248.46 0.83% Market
price
Hefei Bainian Mould Technology Co., Ltd. 56.44 0.04% Market
price
Hefei Hualing Co., Ltd. 5.79 0.00% Market
price
Hefei Midea Royalstar Refrigerator Co.,
Ltd. 2,220.85 1.47% Market
price
21,244.47 14.04% 4,007.11 2.21%
Name of related parties
Jan. -Jun. 2009 Pricing
policy
Jan. -Jun. 2008
2）Merchandise sales
Amount (RMB'0000) % Amount (RMB'0000) %
Hefei Bainian Mould Technology Co., Ltd. 57.21 0.03% Market
price
Hefei Royalstar Washing Machine
Equipment Manufacturing Co., Ltd. 2,045.27 1.08% Market
price
Hefei Midea Royalstar Refrigerator Co.,
Ltd. 16,116.13 8.47% Market
price
Hefei Royalstar Midea Electric Appliance
Marketing Co., Ltd. 108.77 0.06% Market
price
Wuxi Indesit Home Appliances Co., Ltd. 131.86 0.05% Market
price
Ningbo Xinle Household Appliances Co., Ltd 74.21 0.03% Market
price
18,327.37 9.63% 206.07 0.08%
Jan. -Jun. 2008 Pricing
Name of related parties policy
Jan. -Jun. 2009
3）Other
Amount (RMB'0000) % Amount (RMB'0000) %
GD Midea Electric Appliances Co., Ltd. 121.02 Market
price
Pricing
Name of related parties policy
Jan. -Jun. 2009 Jan. -Jun. 2008
3. Balance of current payment between related parties第 69 页
Name of related parties 2009-06-30 2008-12-31
Amount (RMB'0000) Amount (RMB'0000)
Accounts receivable
Ningbo Xinle Household Appliances Co., Ltd 23.20
Hefei Bainian Mould Technology Co., Ltd. 56.29
56.29 23.20
Other receivable
BSW Household Appliances Co., Ltd. 576.67 578.67
576.67 578.67
Prepayment
GD Midea Electric Appliances Co., Ltd. - 121.02
- 121.02
Accounts payable
Wuhu Ande Logistics Co., Ltd. 136.68
Ningbo Xinle Household Appliances Co., Ltd 33.40 608.32
Foshan Weiling Washing Motor Manufacture Co., Ltd. 1,200.95 755.01
Foshan Midea Materials Supply Co., Ltd. 215.55
Hefei Hualing Co., Ltd 845.50
Hefei Royalstar Washing Machine Equipment
Manufacturing Co., Ltd.
2,309.26 39.62
3,895.83 2,248.45
Advance from customers
Wuxi Indesit Home Appliances Co., Ltd. 130.18
- 130.18
Other payables
Wuhu Ande Logistics Co., Ltd. 150.00
Guangzhou Antaida Material Distribution Co. , Ltd. 41.80
GD Midea Electric Appliances Co., Ltd. 951.79 -
1,101.79 41.80
VIII. Correlation data
Based on the financial data comparability, the Company has reclassified and re-adjusted to correlation data of
last year in this financial statement.
Ⅸ. Contingencies
By 30 June 2009, the detailed guaranteed transactions of the company which provided for the subsidiaries’
loans & Bank acceptances can be found as follows: (monetary unit: RMB10,000)
Name of guaranteed units Bank loan (Unit:RMB'0000) Bank acceptance bill(Unit:RMB'0000)
Wuxi Feiling Electronics Co., Ltd 790.00 654.68
Wuxi Little Swan General Electrical Appliance Co., Ltd. 1 00.00
Little Swan (Jingzhou) Sanjin Electric Appliance Co., Ltd. 1,100.00
Total 1,990.00 654.68
Ⅹ. Commitment第 70 页
By the date of 31 December 2008, there is no significant commitment in the report period.
XI. Non-adjustment events after balance sheet date
As at 30 Jun. 2009, no non-adjustment events post balance sheet date exists in the Company.
XII. Explanation on other significant events
As at 30 Jun. 2009, the Company has no explanation on other significant events. .
XIII. Supplemental information
1. Non-recurring gain/ loss
In accordance with Questions and Answers on the Standards for Information Disclosure by Companies That
Offer Securities to the Public No. 1 --- Non-recurring Gain and Loss (Revised in 2007) (KJ Zi [2007] No. 9),
the non-recurring gain/loss of the Company is as follows:
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Items of extraordinary gains and losses
1. Income form disposal of non-current assets 14,568,429.91 3,676,068.17
2. Government grant measured into gain/loss of current
period
3,010,000.00 6 41,623.04
3. Income from change in fair value from financial assets
and financial liabilities that are measured by fair value and
the change recorded in the current period gain/loss
-
4. Net profit of subsidiaries for the current period through
business combinations under the same control from the
year-begin to consolidated date
-
5. Other under non-operating income 1 ,849,722.76 4 ,105,154.32
6. Other - 30,004.94
Subtotal 19,428,152.67 8 ,452,850.47
Items of expense from non-recurring gain/loss
1. Loss on disposal of non-current assets 5 ,569,535.94 2 ,281,435.93
2.Various reserve for assets impairment withdrawn due to fo -
3. Employees resettlement fee due from corporate restructur -
4. Other under non-operating expense 1,676,934.40 9,804,599.38
5. Other -
Subtotal 7 ,246,470.34 1 2,086,035.31
Influence on total profit 12,181,682.33 (3,633,184.84)
Less: income tax 1,720,977.00 (880,250.15)
Influence on net profit 10,460,705.33 (2,752,934.69)
Influence on minority (110,618.15) 123,789.82
Influence on net profit attributable to common shareholders of the Company 10,571,323.48 (2,876,724.51)
Net profit attributable to common shareholders of the Company after deduct 56,820,983.64 69,614,287.82
2. Return on equity and earnings per share第 71 页
In accordance with the requirements of Compilation Rules for Information Disclosures by Companies That
Offer Securities to the Public No. 9 --- Calculation and Disclosure on Return on Equity and Earnings per
Share (Revised in 2007) and Questions and Answers on the Standards for Information Disclosure by
Companies That Offer Securities to the Public No. 1 --- Non-recurring Gain and Loss (Revised in 2007),
return on equity and earnings per share are as follows:
1）Calculation result
Profit for the current period Fully diluted Weighted average EPS-basic EPS-diluted
Interim period for 2009terim period for t2e0rim period for t2e0rim period for t2e0rim period for t2e0rim period for t2e0rim period for t2e0rim period for 2
Net profit attributable to common shareho 3.93% 4.08% 4.11% 4.13% 0 .12 0.12 0 .12 0.12
Net profit attributable to common
shareholders of the Company after
deducting non-recurring gain/loss (II)
3.31% 4.25% 3.46% 4.31% 0 .10 0.13 0 .10 0.13
Return on equity Earnings per share
2）Counting process for earnings per share
Items No. January-June 2009 January-June 2008
Net profit attributable to common
shareholders of the Company
1 67,392,307.11 66,737,563.31
Non-recurring gain and loss of net profit
attributable to common shareholder of
parent company after deducting
influence on income tax
2 10,571,323.48 (2,876,724.51)
Net profit attributable to common
shareholder of the Company after
deducting non-recurring gains and losses
3=1-2 56,820,983.64 69,614,287.82
Beginning total shares 4 547,655,760.00 365,103,840.00
Increased shares due to capitalization of
shares capital and dividend distribution
of shares
5 - 182,551,920.00
Increased shares due to issuance of new
share and debts converted into shares
6 - -
Number of months from next month to
end of reporting period of increased
shares due to issuance of new share or
debts converted into shares
7 7.00第 72 页
Decreased shares due to
counterpurchase or reductions of
capital
8 - -
Number of months of decreased share
from next month to end of reporting
period
9 - -
Number of months in the reporting
period
10 6.00 6.00
Weighted average of common shares
outstanding
11=4+5+6×7÷10-8×9÷10 547,655,760.00 547,655,760.00
Basic earnings per share（Ⅰ） 12=1÷11 0.12 0.12
Basic earnings per share（Ⅱ） 13=3÷11 0.10 0.13
Interests of dilutive potential ordinary
share recognized as expense
14 - -
Income tax rate 15 15.00% 25.00%
Conversion charges 16 - -
Increased shares due to subscription
warrant and exercise options
17 - -
Diluted earnings per share（Ⅰ） 18=[1+(14-16)×(1-15)]÷(11+17) 0.12 0.12
Diluted earnings per share（Ⅱ） 19=[3+(14－16)×(1-15)]÷(11+17) 0.10 0.13
XIV. Approval of financial statement
The Company’s financial statement has been approved by the Board of Directors of the Company on 18
August 2009.
Wuxi Little Swan Company Limited
18 August 2009
