WUXI LITTLE SWAN COMPANY LIMITED
THE FIRST QUARTERLY REPORT FOR 2011
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and
senior executives of Wuxi Little Swan Company Limited (hereinafter referred to as
“the Company”) hereby guarantee that this report carries no false information,
misleading statements or major omissions, and will accept, individually and
collectively, the responsibility for the factuality, accuracy and completeness of the
information set forth herein.
1.2 The 1st Quarterly Financial Report of the Company has not been audited by an
accounting firm.
1.3 Mr. Fang Hongbo, the company principal, Ms. Xiao Li, the principal of the
accounting work, and Mr. Zeng Rui, the person-in-charge of the accounting
department (the accounting principal), hereby confirm that the financial statements
enclosed in the quarterly report are factual and complete.
[English Translation for Reference Only. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.]
§2. Company Profile
2.1 Main accounting data and financial indices
Unit: (RMB) Yuan
31 Mar. 2011 31 Dec. 2010 Increase/decrease (%)
Total assets (Yuan) 9,091,106,726.81 8,001,576,321.32 13.62%
Owners’ equity attributable to shareholders of the
3,191,615,431.26 3,056,480,975.76 4.42%
Company (Yuan)
Share capital (share) 632,487,764.00 632,487,764.00 0.00%
Net assets per share attributable to shareholders of the
5.05 4.83 4.55%
Company (Yuan/share)
Jan.-Mar. 2011 Jan.-Mar. 2010 Increase/decrease (%)
Gross revenue (Yuan) 3,831,419,221.99 2,571,236,005.32 49.01%
Net profit attributable to shareholders of the
135,433,479.99 114,253,395.95 18.54%
Company (Yuan)
Net cash flows from operating activities (Yuan) -735,923,388.16 -371,949,191.95 -97.86%
Net cash flows per share from operating activities
-1.16 -0.59 -96.61%
(Yuan/share)
Basic EPS (Yuan/share) 0.21 0.18 16.67%
Diluted EPS (Yuan/share) 0.21 0.18 16.67%
Weighted average ROE (%) 4.33% 4.39% -0.06%
Weighted average ROE after deducting non-recurring
3.38% 3.97% -0.59%
gains and losses (%)
Note: The Company accomplished a significant asset restructuring project in Nov.
2010 and thus included Hefei Royalstar Washing Equipment Manufacturing Co.,
Ltd. in its consolidated financial statements for 2010. The financial data above
for the first quarter of 2011 have been produced on the basis of the consolidation
scope comprising Hefei Royalstar Washing Equipment Manufacturing Co., Ltd..
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Items of non-recurring gains and losses Amount
Gains and losses from disposal of non-current assets 29,883,470.77
Government subsidies recorded into current gains and losses, excluding those related closely to the
routine business of the Company and continuously enjoyed by the Company at fixed amounts or 10,530,573.06
ratios according to state policies and regulations
Other non-operating incomes and expenses -2,337,607.66
Minority interests effects -2,674,849.97
Income tax effects -5,687,414.13
Total 29,714,172.07
2.2 Total number of shareholders at the end of the reporting period, as well as the
shares held by the top ten shareholders holding shares not subject to trading
moratorium
Unit: Share
Total number of shareholders at the end of the
20,008
reporting period
Shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to trading moratorium
Full name of shareholder Type of share
held at the period-end
Gaoling Fund, L.P. 49,338,524 Domestically listed foreign shares
Finance Bureau Of Wuxi 22,057,657 RMB ordinary shares
Boci Securities Limited 21,250,286 Domestically listed foreign shares
Industrial and Commercial Bank Of China-
Penghua Goodquality Government Securities 17,918,739 RMB ordinary shares
Investment Fund (LOF)
China Construction Bank—Yinhua Wealth
12,939,575 RMB ordinary shares
Theme Stock Securities Investment Fund
Agricultural Bank Of China—Penghua Motivity
11,001,518 RMB ordinary shares
Growth Mixed Securities Investment Fund
Guotai Junan Securities(Hongkong) Limited 10,557,451 Domestically listed foreign shares
Agricultural Bank Of China—Bank Of 10,534,034 RMB ordinary shares
Communications Schroders Selected Stock
Securities Investment Fund
Bank Of Communications—Penghua China 50
9,700,000 RMB ordinary shares
Open-Ended Securities Investment Fund
Industrial and Commercial Bank Of
China-Invesco Great Wall Selected Blue Chip 7,689,235 RMB ordinary shares
Stock Fund
§3. Significant Events
3.1 Significant changes in main accounting statement items and financial indicators as
well as reasons for these changes
√Applicable □Non-applicable
Unit: RMB Ten thousand
31 Mar. 2011 31 Mar. 2010
Statement items (Jan.-Mar. (Jan.-Mar. Movement Reason for movement
2011) 2010)
Increase of monetary funds expense on
Monetary funds 153,563.21 221,581.25 -31%
operating activities
Increase of the forward exchange and
Transactional
1,757.67 777.86 126% contract business as well as increase of
financial assets
their fair values
Sales increased and notes receivable
Notes receivable 346,758.11 156,250.32 122%
increased accordingly.
Effects from the production and
Inventory 63,583.15 105,067.41 -39%
marketing cycle
Construction in Production capacity expansion,
5,451.53 2,600.57 110%
process equipment purchases and plant building
Deferred income tax Operating payables increased as sales
16,544.35 12,306.50 34%
assets increased.
Short-term
8,567.51 903.94 848% Increase of the trade financing business
borrowings
Taxes and fares Effects from the production and
11,606.19 -2,394.70 585%
payable marketing cycle
Dividends for common shares that were
Dividend payable 1,838.32 271.97 576%
declared but not yet distributed
Increase of transactional financial
Deferred income tax
267.40 119.87 123% assets and fair values of
liabilities
available-for-sale financial assets
Foreign exchange
-126.90 -93.79 -35% Effects from exchange rate movements
difference
Gross operating
383,141.92 257,123.60 49% Sales increase
revenue
Operating cost 320,905.56 215,575.16 49% Sales increase
Business taxes and The turnover tax increased due to the
947.54 509.19 86%
surcharges production and marketing cycle.
Selling expense 26,541.77 15,591.63 70% Sales increase
Administrative Income increased and administrative
19,511.84 10,121.85 93%
expense costs increased accordingly.
Exchange loss increased due to
Financial expense 375.66 165.05 128%
exchange rate movements.
The increased amount of receivables
Asset impairment
611.46 -1,013.48 160% due within one year was larger than the
loss
same period of last year.
Gain on fair value Income from movements in exchange
1,222.70 --
changes rates for forward exchange contracts
Income from subsidiary disposal and
Investment income 2,164.69 128.90 1579% the forward foreign exchange trading
business
Non-business Income from fixed asset disposal and
2,483.52 353.71 602%
income government subsidies received
Income tax 3,276.86 2,496.08 31% Profit increase
Net cash flows from Increase of cash paid for goods and
-73,592.34 -37,194.92 -98%
operating activities services
Net cash flows from
7,619.19 -121.65 6363% Increase of trade financings
financing activities
3.2 Progress of significant events as well as their influence and solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 The Company provides funds for the controlling shareholder or its related
parties or provides external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Significant contracts signed and executed concerning routine operation
□Applicable √Inapplicable
3.2.4 Other
□Applicable √Inapplicable
3.3 Commitments made by the Company, its shareholders and actual controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders holding over 5% of the Company’s shares, actual controller and other
related parties in the reporting period, or such commitments carried down into the
reporting period
√Applicable □Inapplicable
Commitmen Implementatio
Commitment Contents of commitment
t maker n
Commitment on GD Midea Holding Co., Ltd. has committed that it will not sell over 5% of In the process
Controlling
share merger the Company’s shares via Shenzhen Stock Exchange within six months since of
shareholder
reform the cancellation of trading moratorium on relevant shares; where Midea implementatio
decreases 5% or over 5% shares of the Company held by it within six months n
since the first reduction of holdings, Midea will disclose the suggestive public
notice on selling shares subject to trading moratorium through the Company
two trading days before its first reduction of holdings.
Commitment in
the acquisition
report or the Naught Naught Naught
report on equity
changes
1. As for GD Midea Holding’s commitment on share lock-up, it has
committed that it will not transfer Little Swan shares held by it within 36
months since the date when the private share offering deal is closed.
2. As for the commitment of avoiding horizontal competition, GD Midea
Holding (the controlling shareholder) and Mr. He Xiangjian (the actual
controller) has promised that, for the period after the said transaction when
the Company’s controlling shareholder and actual controller remains
unchanged, GD Midea Holding, Mr. He Xiangjian and other subsidiary
companies under their control excluding the Company and the Company’s
subordinate companies will not increase business or establish new subsidiary
companies engaged in business which is the same with or similar to the
Company’s main business or forms substantial horizontal competition with
the Company. If they act against the commitment above, profits thus
generated will be attributable to the Company.
3. As for the commitment for regulating related-party transactions, GD
Midea Holding (the controlling shareholder) and Mr. He Xiangjian (the actual
Commitment Controlling In the process
controller) have promised that when there are inevitable related-party
made in the shareholder of
transactions or such transaction incurred with rational reasons after the
significant asset and actual implementatio
completion of the transaction, they will follow the fair, reasonable and market
reorganization controller n
principles in formulating and signing relevant agreements on such
related-party transactions and ensure that no harm will be done to interests of
the Company and other shareholders. Where GD Midea Holding and Mr. He
Xiangjian act against the promise above and damage interests of the
Company and other shareholders, they will assume liabilities for
compensation according to relevant provisions.
4. As for the commitment on independence, GD Midea Holding has promised
to protect Little Swan’s independence in terms of assets, staff, finance,
organization and business.
5. As for the commitment on related-party deposits and borrowings, up to 8
Apr. 2010, the Financial Settlement Center of GD Midea Holding had settled
all internal deposits and borrowings with Hefei Royalstar Washing
Equipment Manufacturing Co., Ltd.; and GD Midea Holding has promised
that there will be no more deposits, borrowings or other funds flows incurred
between the Financial Settlement Center and Hefei Royalstar Washing
Equipment Manufacturing Co., Ltd..
6. The commitment by GD Midea Holding on housing properties with no
ownership certificates of the target company for sale is detailed as follows.
Two pieces of the buildings of Royalstar Washing Equipment assessed and
sold to the Company are of no ownership certificates—the warehouse for
half-finished products (176 square meters) and the workshop for injection
molding (834 square meters), both located in the old factory of Royalstar
Washing Equipment, Hewa Road, Hefei. GD Midea Holding has promised
that if loss occurs due to the said two buildings without ownership certificates
in the asset disposal process in the future, it will assume the loss thus caused
and make compensation to the Company.
7. The commitment by GD Midea Holding on trademarks is detailed as
follows. (1) Concerning the “Midea” trademark: Upon approval and
implementation of the equity transfer transaction, GD Midea Holding has
promised that it will make sure that Royalstar Washing Equipment uses the
“Midea” trademark in a proper manner. Royalstar Washing Equipment will be
allowed to use the “Midea” trademark with a trademark use fee not more than
that paid by Midea Group (the controlling shareholder of GD Midea Holding)
and its subsidiaries (currently 3‰ of the annual sales income generated by
products using the “Midea” trademark), and upon negotiation and signing of
the “Agreement for Trademark Use”. The related-party transactions incurred
due to the said use of the “Midea” trademark will be submitted to the
decision-making organ of the Company for approval according to the
stipulated procedure. As such, interests of the Company and its minority
shareholders will be safeguarded. (2) Concerning the “Royalstar” trademark:
GD Midea Holding has signed the “Contract for Trademark Use” with
Royalstar Group and obtained the ordinary use rights of the “Royalstar” (or
“荣事达”) trademark. As the transferor in the transfer transaction of equity
interests of Royalstar Washing Equipment, GD Midea Holding has promised
that within the scope as agreed in the “Contract for Trademark Use”, if any
dispute arises between Royalstar Washing Equipment and Royalstar Group
over the former’s execution of the “Contract for Trademark Use”, Little Swan
will not be involved. If Royalstar Washing Equipment and Little Swan have
to assume any responsibility or loss due to the aforesaid dispute, GD Midea
Holding is willing to take on the responsibility instead and make
compensations to Royalstar Washing Equipment and Little Swan at full
amount.
8. The commitment by GD Midea Holding on social security payment and
tax risks is detailed as follows. GD Midea Holding has promised that upon
the completion of the said equity transfer deal, if Royalstar Washing
Equipment is obliged to take on any responsibility or pay relevant fares as
required by relevant government authorities due to its social security payment
before the said deal, GD Midea Holding is willing to pay relevant fares for
Royalstar Washing Equipment to relevant government authorities in a timely
manner and assume any other liability. If any loss thus occurs to Royalstar
Washing Equipment or Little Swan, GD Midea Holding is willing to assume
relevant responsibilities for compensation. Upon the completion of the said
equity transfer deal, if income tax evasion or any other tax risk is found in
Royalstar Washing Equipment, GD Midea Holding is willing to assume
relevant legal responsibilities and risks and pay relevant taxes in a timely
manner to relevant government authorities; and if any loss thus occurs to
Little Swan, GD Midea Holding will assume the corresponding responsibility
for compensation.
9. The agreement on compensations in relation to earning estimates is
detailed as follows. As recognized both by Little Swan and GD Midea
Holding, net profits achieved by Royalstar Washing Equipment for 2009,
2010 and 2011 as estimated in the “Asset Evaluation Report” by adopting the
income present value method are RMB 65.32 million, 81.52 million and
91.53 million respectively. As such, estimated net profits for 2009, 2010 and
2011 attributable to the holder of the 69.47% equity interests of Royalstar
Washing Equipment are RMB 45,377,800, RMB 56,631,900 and RMB
63,585,900 respectively. If Royalstar Washing Equipment achieves actual
annual profits less than net annual profits as estimated in the “Asset
Evaluation Report” by adopting the income present value method in any year
of 2009, 2010 and 2011, the difference thereof will be paid, at the ratio of
69.47% (the ratio of equity interests of Royalstar Washing Equipment sold by
GD Midea Holding to Little Swan), by GD Midea Holding to Little Swan in
cash. And the corresponding difference will be paid to the bank account
designated by Little Swan within 10 working days since the date when the
corresponding annual report of Little Swan is disclosed.
Commitment
made in the Naught Naught Naught
issuance
Other
commitments
(including Naught Naught Naught
supplementary
ones)
3.4 Warnings of possible losses or significant changes of the accumulative net profit
made during the period from the year-begin to the end of the next reporting period
compared to the same period of last year according to prediction, as well as
explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities Investment
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion in
Share held at
Initial Book value at total investment Gains and losses
Securities Short form of the
No. Type Investment the period-end on securities at in the reporting
code Stock period-end
(Yuan) (Yuan) the period-end period (Yuan)
(share)
(%)
1 Stock 400038 Huaxin Gaoke 100,300.00 235,200 350,448.00 100.00% 0.00
Other securities investment held at the period-end 0.00 - 0.00 0.00% 0.00
Gains and losses from securities investment sold in
- - - - 0.00
the reporting period
Total 100,300.00 - 350,448.00 100% 0.00
Explanation on securities investment
Naught
3.5.2 Reception of interviews and visits in the reporting period
Main discussion and information
Time Place Way of reception Visitor
provided by the Company
The Company’s Beijing Gao Hua
26 Jan. 2011 Field research Overall operation of the Company
meeting room Securities
The Company’s China Merchants
29 Mar. 2011 Field research Overall operation of the Company
meeting room Securities
The Company’s Ping An Asset
30 Mar. 2011 Field research Overall operation of the Company
meeting room Management
The Company’s
30 Mar. 2011 Field research E Fund Management Overall operation of the Company
meeting room
3.6 Investment on derivative products
√Applicable □Inapplicable
The Company has formulated the Management Methods for Futures Hedging Business
and the Management Methods for Exchange Funds upon review to thoroughly assess and
control derivative investment risks, which are detailed as follows:
1. Market risk
Price movements of bulk raw materials and fluctuations of exchange rates may incur a
Analysis on risks and control great market risk in the futures business and the foreign exchange funds business.
measures of derivative Meanwhile, if the Company fails to input enough funds in time to create and maintain
products held in the reporting hedging positions in its futures hedging operations, or fails to input foreign exchanges on
period (including but not time for contract execution in the foreign exchange funds business, hedging loss and
limited to market risk, contract breach risk may incur.
liquidity risk, credit risk, Counter-measures: The Company will not carry out speculative trading in its futures
operation risk, law risk, etc.) hedging business and foreign exchange funds business. And the Company will stick to the
principle of being prudent in operations. As for the futures hedging business, the hedging
volume should be determined and futures trading applications should be filed in strict
accordance with production and operation needs. In principle, the hedging volume shall
not exceed one third of the planned volume for the year. And a stop-loss mechanism is
adopted. Guarantee deposits are paid as required and increased according to production
and operation needs. As for the foreign exchange funds business, a from-the-bottom-up
management mechanism is adopted. When subsidiaries or product enterprises file
applications for funds business, they will give a risk analysis on conditions or
circumstances that might affect gains and losses, estimate the maximum gain and loss,
and state the ratio or total amount of guarantee deposits they can bear. And the Company
will, according to their applications, update operations in time in its funds business and
make funds arrangements before the maturity date.
2. Operation risk
The Company may suffer loss in its hedging business and foreign exchange funds
business due to faulty internal procedures, staff, systems and external events.
Counter-measures: Responsibility division and approval procedures for the hedging and
foreign exchange business have been specified in relevant management rules. And a
sound supervision mechanism has been established. And operation risk can be effectively
reduced by enhancing risk control over procedures for operation, decision-making and
trading.
3. Risk concerning laws and regulations
The Company carries out its hedging and foreign exchange business in compliance with
applicable laws and regulations, with rights and duties between the Company and
agencies being stated clearly.
Counter-measures: The Company urges responsible departments to understand better
about relevant laws, regulations and market rules; be strict in contract re-checks; make
clear relevant rights and duties; and enhance compliance checks to make sure that the
Company operates derivative investments in compliance with applicable laws, regulations
and the Company’s internal management rules.
Changes of market prices or
fair values in the reporting
period of the invested The gain on the Company’s forward foreign exchange contracts was recognized at RMB
derivatives. And the analysis 16,662,400 in the reporting period.
on the fair value of the The Company adopts public quotations in the futures market or forward foreign exchange
derivatives should include the quotations declared by the People’s Bank of China in its analysis on fair values of
specific use methods and the derivative products.
relevant assumptions and
parameters.
Whether significant changes
occurred to the Company’s
accounting policy and specific
accounting principles of No significant changes.
derivatives in the reporting
period compared to the
previous reporting period
Specific opinion from Independent directors of the Company believe that: The hedging business on forward FX
settlement and sale launched by the Company for the purposes of avoiding exchange rate
independent directors,
fluctuation risk and control exchange loss is closely related to the Company’s routine
sponsors or financial
operations and in compliance with applicable laws and regulations. Meanwhile, the
consultants on the Company’s
Company has formulated the Management Methods for Futures Hedging Business and
derivatives investment and risk
the Management Methods for Exchange Funds to enhance risk control. Therefore, the
control Company is agreed to carry out the said derivatives investments.
3.6.1 Number of derivative products held at the end of the reporting period
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion of the closing
Opening contract Closing contract Gain or loss in the contract amount in the
Type of contract
amount amount reporting period closing net assets of the
Company (%)
Forward foreign exchange
414,713,090.00 792,532,260.00 16,662,375.31 24.83%
contracts
Total 414,713,090.00 792,532,260.00 16,662,375.31 24.83%
§4. Appendix
4.1 Balance Sheet
Prepared by Wuxi Little Swan Company Limited 31 Mar. 2011 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 1,535,632,135.22 885,670,615.59 2,215,812,460.40 1,569,023,753.38
Settlement reserves
Lendings to banks and other
financial institutions
Transactional financial assets 17,576,657.11 10,264,603.75 7,778,633.32
Notes receivable 3,467,581,104.33 2,099,648,257.92 1,562,503,246.83 1,185,633,571.38
Accounts receivable 1,026,318,789.74 1,071,531,586.28 905,872,836.47 588,100,719.26
Accounts paid in advance 423,074,200.79 189,272,519.01 357,089,867.91 132,440,302.69
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 13,671,213.10 10,880,660.69 13,559,014.95 10,953,922.66
Financial assets purchased
under agreements to resell
Inventories 635,831,510.04 296,818,053.71 1,050,674,093.84 491,235,367.91
Non-current assets due within 1
year
Other current assets 114,139,230.43 48,692,976.55 129,556,121.17 58,455,392.54
Total current assets 7,233,824,840.76 4,612,779,273.50 6,242,846,274.89 4,035,843,029.82
Non-current assets:
Entrusted loans and advances
granted
Available-for-sale financial
350,448.00 350,448.00 312,816.00 312,816.00
assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 109,027,357.45 1,572,771,436.52 109,347,118.51 1,621,854,827.58
Investing property
Fixed assets 1,225,192,549.83 627,482,807.12 1,196,176,706.65 596,576,900.61
Construction in progress 54,515,344.68 175,605.00 26,005,677.68 5,624,583.36
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 238,686,413.45 111,850,255.14 240,226,821.62 112,562,533.23
R&D expense
Goodwill
Long-term deferred expenses 64,066,270.32 53,214,868.39 63,595,950.35 42,367,001.54
Deferred income tax assets 165,443,502.32 108,933,723.96 123,064,955.62 74,350,415.21
Other non-current assets
Total of non-current assets 1,857,281,886.05 2,474,779,144.13 1,758,730,046.43 2,453,649,077.53
Total assets 9,091,106,726.81 7,087,558,417.63 8,001,576,321.32 6,489,492,107.35
Current liabilities:
Short-term borrowings 85,675,125.36 85,675,125.36 9,039,354.88 9,039,354.88
Borrowings from Central Bank
Customer bank deposits and
due to banks and other financial
institutions
Borrowings from banks and
other financial institutions
Transactional financial
liabilities
Notes payable 779,138,866.68 628,220,181.59 804,597,930.44 689,495,306.02
Accounts payable 3,772,273,127.98 2,453,921,571.14 2,972,319,633.40 2,000,850,684.30
Accounts received in advance 407,233,399.96 195,406,456.56 467,168,360.41 238,691,673.79
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee’s compensation
145,332,420.69 55,532,807.85 146,946,246.73 43,287,248.99
payable
Tax payable 116,061,857.25 67,431,834.44 -23,947,043.15 1,410,002.45
Interest payable
Dividend payable 18,383,154.60 2,669,154.60 2,719,702.95 2,669,154.60
Other accounts payable 78,319,574.91 20,562,976.95 84,178,532.28 31,631,524.42
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 5,402,417,527.43 3,509,420,108.49 4,463,022,717.94 3,017,074,949.45
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities 19,012,311.18 18,487,799.18
Deferred income tax liabilities 2,674,020.77 1,577,212.77 1,198,672.40 31,877.40
Other non-current liabilities 8,042,350.00 1,800,000.00 8,024,850.00 1,800,000.00
Total non-current liabilities 29,728,681.95 3,377,212.77 27,711,321.58 1,831,877.40
Total liabilities 5,432,146,209.38 3,512,797,321.26 4,490,734,039.52 3,018,906,826.85
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
632,487,764.00 632,487,764.00 632,487,764.00 632,487,764.00
capital)
Capital reserves 1,099,997,914.30 1,258,265,347.34 1,099,965,927.10 1,258,233,360.14
Less: Treasury stock
Specific reserves
Surplus reserves 212,889,613.44 200,239,469.54 212,889,613.44 200,239,469.54
Provisions for general risks
Retained profits 1,247,509,100.20 1,483,768,515.49 1,112,075,620.21 1,379,624,686.82
Foreign exchange difference -1,268,960.68 -937,948.99
Total equity attributable to owners
3,191,615,431.26 3,574,761,096.37 3,056,480,975.76 3,470,585,280.50
of the Company
Minority interests 467,345,086.17 454,361,306.04
Total owners’ equity 3,658,960,517.43 3,574,761,096.37 3,510,842,281.80 3,470,585,280.50
Total liabilities and owners’
9,091,106,726.81 7,087,558,417.63 8,001,576,321.32 6,489,492,107.35
equity
4.2 Income Statement
Prepared by Wuxi Little Swan Company Limited Jan.-Mar. 2011 Unit: RMB Yuan
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 3,831,419,221.99 2,548,804,870.44 2,571,236,005.32 1,455,612,819.47
Including: Sales income 3,831,419,221.99 2,548,804,870.44 2,571,236,005.32 1,455,612,819.47
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 3,688,938,370.68 2,513,150,561.17 2,409,493,932.09 1,377,317,672.00
Including: Cost of sales 3,209,055,630.29 2,203,808,377.92 2,155,751,573.66 1,226,228,897.04
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate
9,475,406.37 7,408,317.78 5,091,868.01 4,510,327.76
charges
Selling and distribution
265,417,681.27 150,842,595.45 155,916,307.75 98,137,300.13
expenses
Administrative expenses 195,118,432.47 134,514,597.22 101,218,492.51 60,371,603.72
Financial expenses 3,756,582.06 4,091,272.34 1,650,475.45 -1,028,701.85
Asset impairment loss 6,114,638.22 12,485,400.46 -10,134,785.29 -10,901,754.80
Add: Gain/(loss) from change in
12,226,997.48 10,264,603.75
fair value (“-” means loss)
Gain/(loss) from investment
21,646,894.24 66,565,338.94 1,289,048.95 1,289,048.95
(“-” means loss)
Including: share of profits in
-319,761.06 -319,761.06 1,289,048.95 1,289,048.95
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
176,354,743.03 112,484,251.96 163,031,122.18 79,584,196.42
loss)
Add: non-operating income 24,835,208.15 13,864,025.68 3,537,062.83 1,521,481.07
Less: non-operating expense 4,290,049.45 3,826,126.27 3,796,995.34 1,887,276.88
Including: loss from non-current
1,841,560.40 1,451,210.64 2,511,103.49 1,887,276.88
asset disposal
IV. Total profit (“-” means loss) 196,899,901.73 122,522,151.37 162,771,189.67 79,218,400.61
Less: Income tax expense 32,768,641.61 18,378,322.71 24,960,756.63 11,882,760.09
V. Net profit (“-” means loss) 164,131,260.12 104,143,828.66 137,810,433.04 67,335,640.52
Attributable to owners of the
135,433,479.99 104,143,828.66 114,253,395.95 67,335,640.52
Company
Minority shareholders’
28,697,780.13 23,557,037.09
income
VI. Earnings per share
(I) basic earnings per share 0.21 0.18
(II) diluted earnings per
0.21 0.18
share
Ⅶ. Other comprehensive incomes -299,024.49 -299,024.49 95,961.60 95,961.60
Ⅷ. Total comprehensive incomes 163,832,235.63 103,844,804.17 137,906,394.64 67,431,602.12
Attributable to owners of the
135,134,455.50 103,844,804.17 114,349,357.55 67,431,602.12
Company
Attributable to minority
28,697,780.13 23,557,037.09
shareholders
Where there were business combinations under the same control in the reporting
period, the combined parties achieved net profits of RMB 56,017,617.17 before the
combinations.
4.3 Cash flow statement
Prepared by Wuxi Little Swan Company Limited Jan.-Mar. 2011 Unit: RMB Yuan
Jan.-Mar. 2011 Jan.-Mar. 2010
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of
commodities and rendering of 1,627,486,981.66 1,101,485,514.77 607,409,472.12 190,102,435.22
service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the
central bank
Net increase of funds borrowed
from other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from
reinsurance business
Net increase of deposits of
policy holders and investment
fund
Net increase of disposal of
tradable financial assets
Cash received from interest,
handling charges and
commissions
Net increase of borrowings
from banks and other financial
institutions
Net increase of funds in
repurchase business
Tax refunds received 21,527,958.69 14,903,957.20 5,797,837.82 1,671,549.63
Other cash received relating to
8,698,553.58 4,722,546.24 15,332,676.93 4,437,805.02
operating activities
Subtotal of cash inflows from
1,657,713,493.93 1,121,112,018.21 628,539,986.87 196,211,789.87
operating activities
Cash paid for goods and
1,915,993,050.30 1,637,687,414.11 597,391,347.35 436,626,341.60
services
Net increase of customer
lendings and advances
Net increase of funds deposited
in the central bank and amount
due from banks
Cash for paying claims of the
original insurance contracts
Cash for paying interest,
handling charges and
commissions
Cash for paying policy
dividends
Cash paid to and for employees 165,423,198.86 98,052,862.51 123,230,179.50 65,712,678.46
Various taxes paid 111,375,216.69 89,214,779.09 165,966,961.26 116,521,840.62
Other cash payment relating to
200,845,416.24 116,132,608.75 113,900,690.71 61,520,026.89
operating activities
Subtotal of cash outflows from
2,393,636,882.09 1,941,087,664.45 1,000,489,178.82 680,380,887.57
operating activities
Net cash flows from operating
-735,923,388.16 -819,975,646.24 -371,949,191.95 -484,169,097.70
activities
II. Cash flows from investing
activities:
Cash received from disposal of
investments
Cash received from return on
6,689,550.00 40,648,730.00
investments
Net cash received from disposal
14,308,988.90 13,235,964.50 8,059,249.10 8,059,249.10
of fixed assets, intangible assets
and other long-term assets
Net cash received from disposal
of subsidiaries or other business -3,027,789.49 37,500,000.00
units
Other cash received relating
to investing activities
Subtotal of cash inflows
17,970,749.41 91,384,694.50 8,059,249.10 8,059,249.10
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 27,090,152.15 17,748,292.65 22,407,177.03 11,655,143.70
long-term assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business
units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
27,090,152.15 17,748,292.65 22,407,177.03 11,655,143.70
investing activities
Net cash flows from investing
-9,119,402.74 73,636,401.85 -14,347,927.93 -3,595,894.60
activities
III. Cash flows from financing
activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
76,635,770.48 76,635,770.48
borrowings
Cash received from issuance
of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from
76,635,770.48 76,635,770.48
financing activities
Repayment of borrowings 1,000,000.00
Cash paid for interest
expenses and distribution of 443,860.20 443,860.20 216,487.50
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
to financing activities
Sub-total of cash outflows from
443,860.20 443,860.20 1,216,487.50
financing activities
Net cash flows from financing
76,191,910.28 76,191,910.28 -1,216,487.50
activities
IV. Effect of foreign exchange
rate changes on cash and cash
equivalents
V. Net increase in cash and cash
-668,850,880.62 -670,147,334.11 -387,513,607.38 -487,764,992.30
equivalents
Add: Cash and cash
2,119,023,194.93 1,492,995,931.54 1,553,899,535.65 715,908,106.14
equivalents at the period-begin
VI. Cash and cash equivalents at
1,450,172,314.31 822,848,597.43 1,166,385,928.27 228,143,113.84
the period-end
4.4 Auditor’s report
Audit opinion: Un-audited
Chairman of the Board: Fang Hongbo
Wuxi Little Swan Company Limited
25 April 2011
