WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
WUXI LITTLE SWAN COMPANY LIMITED
THE THIRD QUARTERLY REPORT FOR 2011
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and other senior
management personnel 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 accept, individually and collectively, the responsibility for the factuality,
accuracy and completeness of the information set forth herein.
1.2 The Financial Report in the third quarterly report has not been audited by a CPA firm.
1.3 Chairman of the Board Mr. Fang Hongbo, General Manager Mr. Chai Xinjian, CFO Ms. Xiao
Li and Person in Charge of Accounting Mr. Zeng Rui hereby confirm that the financial report
enclosed in the third quarterly report is true and complete.
§2. Company Profile
2.1 Main accounting data and financial indexes
Unit: RMB Yuan
As at 30 Sept. 2011 As at 31 Dec. 2010 Increase/decrease (%)
Total assets (Yuan) 10,835,450,712.38 8,001,576,321.32 35.42%
Owners’ equity attributable to shareholders of
3,414,130,762.18 3,056,480,975.76 11.70%
listed company (Yuan)
Share capital (Share) 632,487,764.00 632,487,764.00 0.00%
Net assets per share attributable to
5.40 4.83 11.70%
shareholders of listed company (Yuan /share)
Increase/decrease Increase/decrease
Jul.-Sept. 2011 Jan.-Sept. 2011
year-on-year (%) year-on-year (%)
Total operation income (Yuan) 2,618,257,493.85 -7.79% 9,365,771,616.38 12.16%
Net profit attributable to shareholders of listed
141,943,072.46 3.69% 422,281,555.25 9.50%
company (Yuan)
Net cash flows generated from operating
- - 759,702,240.79 -31.36%
activities (Yuan)
Net cash flows per share generated from
- - 1.20 -31.36%
operating activities (Yuan /share)
Basic earnings per share (Yuan /share) 0.22 3.69% 0.67 9.50%
Diluted earnings per share (Yuan /share) 0.22 3.69% 0.67 9.50%
Weighted average return on net assets (%) 12.92% -1.14%
Weighted average return on net assets after
10.59% -1.18%
deducting extraordinary gains and losses (%)
Note: The increase / decrease ratio year-on-year in the above table has 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 Notes (If applicable)
Gains and losses from disposal of non-current assets 56,463,364.67
Government subsidies measured into the current period gain and loss, excluding
those government subsidies closely related to the Company’s business that the
31,193,811.66
Company enjoyed continually at the certain standard rating and in conformity
with provisions of policies of the State
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WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
Other non-operating income and expenses besides the above items 10,177,415.28
Effect on income tax - 13,682,325.16
Effect on minority interests -7,912,548.94
Total 76,239,717.51 -
2.2 Total number of shareholders at period-end and shareholding of top ten shareholders holding
tradable shares
Unit: Share
Total number of shareholders at the period-end 26,806
Shareholding of top ten shareholders holding tradable shares
Number of tradable shares
Full name of shareholder Type of share
held at period-end
GAOLING FUND,L.P. 50,552,162 Domestically listed foreign shares
WUXI BUREAU OF FINANCE 22,057,657 RMB ordinary shares
BOCI SECURITIES LIMITED 20,976,486 Domestically listed foreign shares
ICBC-PENGHUA HIGH QUALITY GOVERNANCE
19,518,553 RMB ordinary shares
SECURITIES INVESTMENT FUND (LOF)
CHINA CONSTRUCTION BANK—YINHUA WEALTH
12,739,575 RMB ordinary shares
THEME STOCK SECURITIES INVESTMENT FUND
AGRICULTURAL BANK OF CHINA － PENGHUA
11,172,655 RMB ordinary shares
MOTIVITY GROWTH MIXED FUND
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 10,571,141 Domestically listed foreign shares
AGRICULTURAL BANK OF CHINA—BANK OF
COMMUNICATIONS SCHRODERS SELECTED STOCK 10,015,215 RMB ordinary shares
SECURITIES INVESTMENT FUND
BANK OF COMMUNICATIONS－PENGHUA CHINA 50
9,700,000 RMB ordinary shares
FUND
CHINA CONSTRUCTION BANK － PENGHUA VALUE
6,933,828 RMB ordinary shares
ADVANCED STOCK SECURITIES INVESTMENT FUND
§ 3 Significant Events
3.1 Particulars about major changes of main accounting statement items and financial indexes, as
well as reasons for the changes
√Applicable □Inapplicable Unit: RMB Yuan
Rate of
Item 30 Sept. 2011 31 Dec. 2010 Reason for the change
change
Monetary Cash received due to mature notes receivable in the
2,976,961,141.61 2,215,812,460.40 34%
funds reporting period
Transactional
More forward foreign exchange contracts signed with
financial 10,687,957.00 7,778,633.32 37%
banks
assets
Notes
3,411,921,401.63 1,562,503,246.83 118% Increase of sales
receivable
Accounts
1,196,703,528.82 905,872,836.47 32% Increase of sales
receivable
Other The Company has not yet been paid for its transfer of
133,606,639.82 13,559,014.95 885%
receivables equities of BSW Household Appliances Co., Ltd..
Other current The value of production molds decreased due to
62,202,981.87 129,556,121.17 -52%
assets amortization.
Long-term
The Company transferred equities of BSW
equity 5,877,852.40 109,347,118.51 -95%
Household Appliances Co., Ltd..
investment
Construction Input to production capacity expansion projects of
138,966,368.17 26,005,677.68 434%
in process bases in Jingzhou and Hefei
More payments with self-issued banker’s acceptance
Notes payable 3,070,826,442.50 804,597,930.44 282%
bills
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WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
Accounts
Impact of the financial environment and the sales
received in 202,674,104.12 467,168,360.41 -57%
cycle
advance
Taxes and
45,540,264.92 -23,947,043.15 290% Impact of the production and sales cycle
fares payable
Deferred
Increase of transactional financial assets and fair vale
income tax 1,626,956.55 1,198,672.40 36%
increase of available-for-sale financial assets
liabilities
Retained
1,471,108,399.05 1,112,075,620.21 32% Increase of sales
profit
Foreign-curre
ncy statement
-2,274,959.81 -937,948.99 -143% Exchange rates moved.
translation
difference
Rate of
Item Jan.-Sept. 2011 Jan.-Sept. 2010 Reason for the change
change
Business
The turnover tax increased due to the production and
taxes and 18,817,214.73 13,495,611.70 39%
sales cycle.
surtaxes
Selling
693,133,218.92 557,796,647.63 24% Increase of the sales business
expense
Administrativ Income increased and the administrative cost and
312,420,908.49 223,950,020.29 40%
e expense scope expanded accordingly.
Financial
1,975,566.89 25,068,970.26 -92% Increase of the income from interest on savings
expense
Asset
The increase of accounts receivable due within one
impairment 23,852,866.97 938,547.46 2441%
year was greater than the same period of last year.
loss
Gains on fair Gains on fair value changes of forward foreign
8,777,385.90 5,070,340.00 73%
value changes exchange contracts
Investment Gains on mature forward foreign exchange contracts
65,008,690.75 1,300,850.71 4897%
income and subsidiary disposal
Income tax
115,569,220.15 86,788,539.94 33% Increase of profit
expense
Net cash
flows from Cash paid to acquire goods and services increased in
759,702,240.79 1,106,833,248.78 -31%
operating the reporting period.
activities
Net cash
flows from Cash paid to acquire fixed assets increased due to the
-157,214,308.24 -72,448,875.12 -117%
investing Company’s production capacity expansion projects.
activities
Net cash
flows from
-75,321,186.04 -2,086,379.76 -3510% Cash paid as dividends increased.
financing
activities
3.2 Progress and influence of significant events, as well as the analysis on solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 Whether the Company provided funds to the controlling shareholder or its related parties or
provided guarantees to external parties in violation of the prescribed procedures
□Applicable √Inapplicable
3.2.3 Signing and execution of significant contracts concerning routine operations
□Applicable √Inapplicable
3.2.4 Others
□Applicable √Inapplicable
3.3 Fulfillment of commitments made by the Company, shareholders and the actual controller
Commitments made by the Company, its directors, supervisors, senior executives, shareholders with
an over 5% shareholding, actual controller and other stakeholders during the reporting period, or
3
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
such commitments carried down into the reporting period:
√Applicable □Inapplicable
Commitment Promisor Contents of commitment Implementation
Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea Holding)
Commitment plans to sell the Company’s shares released from trading moratorium held by it via
on share Controlling the bid trading system of the Shenzhen Stock Exchange, and Midea Holding In the process of
trading shareholder decreases over 5% shares within six months since the first reduction of holdings, implementation
moratorium Midea Holding will disclose the suggestive announcement on share selling 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 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, 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 remain unchanged, 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 controller)
have promised that when there are inevitable related-party transactions or such
transaction incurred with rational reasons after the completion of the transaction,
they will follow the fair, reasonable and market 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
Commitment according to relevant provisions.
made in the Controlling 4. As for the commitment on independence, GD Midea Holding has promised to
significant shareholder protect Little Swan’s independence in terms of assets, staff, finance, organization and In the process of
asset and actual business. implementation
reorganizatio controller 5. As for the commitment on related-party deposits and borrowings, up to 8 Apr.
n 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
4
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
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
supplementar
y ones)
3.4 Warnings of possible losses or major changes of the accumulative net profit achieved during the
period from year-begin to the end of the next reporting period compared with the same period of
last year, as well as explanation on reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Investments into securities
√Applicable □Inapplicable
Unit: RMB Yuan
Serial Short form of Initial Shares held Book value at Proportion in Gains or losses in
Securities variety Stock code
No. stock investment at period-end total the reporting period
5
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
amount period-end securities
(Yuan) (Share) investment at
period-end
(%)
1 Stock 400038 Huaxin Gaoke 100,300.00 235,200 258,720.00 100.00% 0.00
Other securities investments held at period-end 0.00 - 0.00 0.00% 0.00
Gains/ losses from securities investment sold in the
- - - - 0.00
reporting period
Total 100,300.00 - 258,720.00 100% 0.00
Explanation on securities investment: Naught
3.5.2 Researches, interviews and visits received in the reporting period
Main discussion and
Way of
Time Place Visitor materials provided by
reception
the Company
Meeting Room
7 Jul. 2011 Field research UBS Securities
of the Company
Meeting Room
19 Jul. 2011 Field research Bohai Securities
of the Company
Meeting Room
19 Jul. 2011 Field research Yinhua Fund Management Co., Ltd.
of the Company
Meeting Room Changjiang Securities, E Fund Management
22 Jul. 2011 Field research
of the Company Co., Ltd. Overall operation of the
Meeting Room The Government of Singapore Investment Company
26 Jul. 2011 Field research
of the Company Corporation Pte Ltd., Deutsche Bank AG
Meeting Room
7 Sept. 2011 Field research Great Wall Fund Management Co., Ltd.
of the Company
Meeting Room
8 Sept. 2011 Field research Ambrosetti (Beijing) Consulting Ltd.
of the Company
Meeting Room BOC International (China) Limited, GF Fund
9 Sept. 2011 Field research
of the Company Management Co., Ltd.
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 great
market risk in the futures business and the foreign exchange funds business. Meanwhile, if the
Company fails to input enough funds in time to create and maintain hedging positions in its
futures hedging operations, or fails to input foreign exchanges on time for contract execution in
the foreign exchange funds business, hedging loss and contract breach risk may incur.
Counter-measures: The Company will not carry out speculative trading in its futures 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
Analysis on risks and control
determined and futures trading applications should be filed in strict accordance with production
measures of derivative products
and operation needs. In principle, the hedging volume shall not exceed one third of the planned
held in the reporting period
volume for the year. And a stop-loss mechanism is adopted. Guarantee deposits are paid as
(including but not limited to
required and increased according to production and operation needs. As for the foreign exchange
market risk, liquidity risk, credit
funds business, a from-the-bottom-up management mechanism is adopted. When subsidiaries or
risk, operation risk, law risk, etc.)
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.
6
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
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 gain on the Company’s forward foreign exchange contracts was recognized at RMB 31.48
the invested derivatives. And the
million in the reporting period.
analysis 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 derivative
specific use methods and the
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
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
Specific opinion from
fluctuation risk and control exchange loss is closely related to the Company’s routine operations
independent directors on the
and in compliance with applicable laws and regulations. Meanwhile, the Company has
Company’s derivatives
formulated the Management Methods for Exchange Funds and the Management Methods for
investment and risk control
Futures Hedging Business to enhance risk control. Therefore, the 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
Type of contract contract amount in the closing
amount amount reporting period
net assets of the Company (%)
Forward foreign exchange contracts 414,713,090.00 873,147,900.00 31,489,450.40 25.57%
Total 414,713,090.00 873,147,900.00 31,489,450.40 25.57%
§ 4 Attachments
4.1 Balance sheet
Prepared by Wuxi Little Swan Company Limited 30 Sept. 2011 Unit: RMB Yuan
30 Sept. 2011 31 Dec. 2010
Items
Consolidation The Company Consolidation The Company
Current assets:
Monetary funds 2,976,961,141.61 2,150,371,933.27 2,215,812,460.40 1,569,023,753.38
Settlement funds
Outgoing call loans
Transaction financial asset 10,687,957.00 6,558,918.00 7,778,633.32
Notes receivable 3,411,921,401.63 1,629,186,344.19 1,562,503,246.83 1,185,633,571.38
Account receivable 1,196,703,528.82 936,951,685.40 905,872,836.47 588,100,719.26
Prepayment 450,007,783.08 151,336,861.21 357,089,867.91 132,440,302.69
Insurance premium receivables
Reinsurance accounts
receivable
Reinsurance contract reserve
receivables
Interest receivable
Dividend receivable
Other accounts receivable 133,606,639.82 130,467,113.08 13,559,014.95 10,953,922.66
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WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
Financial assets purchased
under agreements to resell
Inventories 782,433,623.41 443,001,610.11 1,050,674,093.84 491,235,367.91
Non-current assets due within 1
year
Other current assets 62,202,981.87 40,000,055.13 129,556,121.17 58,455,392.54
Total current assets 9,024,525,057.24 5,487,874,520.39 6,242,846,274.89 4,035,843,029.82
Non-current assets:
Loan and payment on other’s
behalf disbursed
Available-for-sale financial
258,720.00 258,720.00 312,816.00 312,816.00
assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 5,877,852.40 1,669,621,931.47 109,347,118.51 1,621,854,827.58
Investment property
Fixed asset 1,233,686,814.27 632,848,955.41 1,196,176,706.65 596,576,900.61
Project in process 138,966,368.17 7,710,713.27 26,005,677.68 5,624,583.36
Engineering material
Fixed asset disposal
Production biological asset
Oil-gas assets
Intangible assets 235,605,597.11 110,425,698.96 240,226,821.62 112,562,533.23
Development expense
Goodwill
Long-term deferred expense 55,005,355.55 48,379,731.97 63,595,950.35 42,367,001.54
Deferred tax assets 141,524,947.64 88,595,501.82 123,064,955.62 74,350,415.21
Other non-current assets
Total non-current assets 1,810,925,655.14 2,557,841,252.90 1,758,730,046.43 2,453,649,077.53
Total assets 10,835,450,712.38 8,045,715,773.29 8,001,576,321.32 6,489,492,107.35
Current liabilities:
Short-term borrowings 9,320,968.63 9,320,968.63 9,039,354.88 9,039,354.88
Borrowing from central Bank
Deposits received and held for
others
Call loan received
Transaction financial liabilities
Notes payable 3,070,826,442.50 2,103,945,737.55 804,597,930.44 689,495,306.02
Account payable 3,241,419,115.09 1,771,404,540.85 2,972,319,633.40 2,000,850,684.30
Account received in advance 202,674,104.12 94,902,826.05 467,168,360.41 238,691,673.79
Financial assets sold under
agreements to repurchase
Handling charges and
commission payable
Payroll payable 133,555,231.01 49,080,151.31 146,946,246.73 43,287,248.99
Taxes payable 45,540,264.92 32,481,842.77 -23,947,043.15 1,410,002.45
Interest payable
Dividend payable 2,838,070.21 2,838,070.21 2,719,702.95 2,669,154.60
Other payables 175,093,751.32 220,928,477.40 84,178,532.28 31,631,524.42
Account due to reinsurance
Insurance contract reserve
Entrusted trading of securities
Entrusted selling of securities
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 6,881,267,947.80 4,284,902,614.77 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 14,535,158.52 18,487,799.18
Deferred taxes liabilities 1,626,956.55 1,007,600.71 1,198,672.40 31,877.40
8
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
Other non-current liabilities 8,565,050.00 1,800,000.00 8,024,850.00 1,800,000.00
Total non-current liabilities 24,727,165.07 2,807,600.71 27,711,321.58 1,831,877.40
Total liabilities 6,905,995,112.87 4,287,710,215.48 4,490,734,039.52 3,018,906,826.85
Owner’s equity (or shareholders’
equity):
Paid-in capital (or share capital) 632,487,764.00 632,487,764.00 632,487,764.00 632,487,764.00
Capital reserve 1,099,919,945.50 1,258,187,378.54 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
General risk provision
Retained earnings 1,471,108,399.05 1,667,090,945.73 1,112,075,620.21 1,379,624,686.82
Foreign exchange difference -2,274,959.81 -937,948.99
Total equity attributable to owners
3,414,130,762.18 3,758,005,557.81 3,056,480,975.76 3,470,585,280.50
of the Company
Minority interest 515,324,837.33 454,361,306.04
Total owner’s equity 3,929,455,599.51 3,758,005,557.81 3,510,842,281.80 3,470,585,280.50
Total liabilities and owner’s
10,835,450,712.38 8,045,715,773.29 8,001,576,321.32 6,489,492,107.35
equity
4.2 Income statement for Jul.-Sept. 2011
Prepared by Wuxi Little Swan Company Limited Jul.-Sept. 2011 Unit: RMB Yuan
Jul.- Sept. 2011 Jul.- Sept. 2010
Items
Consolidation The Company Consolidation The Company
I. Total sales 2,618,257,493.85 1,420,570,178.96 2,839,458,029.49 1,728,695,445.84
Including: Sales 2,618,257,493.85 1,420,570,178.96 2,839,458,029.49 1,728,695,445.84
Interests income
Premium income
Handling charges and commission income
II. Total cost of sales 2,475,096,367.65 1,279,350,844.99 2,683,979,417.30 1,668,790,828.77
Including: Cost of sales 2,211,452,501.32 1,248,466,197.71 2,407,013,499.26 1,506,603,185.25
Interests expenses
Handling charges and commission income
Insurance discharge payment
Claim expenses-net
Provision for insurance contract
reserves-net
Insurance policy dividend paid
Reinsurance expense
Business taxes and surcharges 3,008,780.65 3,535,527.30 2,959,641.67
Distribution expenses 169,011,614.80 59,199,717.69 202,997,358.59 107,043,247.16
Administrative expenses 72,438,775.04 40,007,288.27 65,726,228.92 39,013,875.06
Financial costs 863,796.20 140,531.57 5,331,250.09 9,127,160.35
Impairment loss 18,320,899.64 -68,462,890.25 -624,446.86 4,043,719.27
Add: gain/(loss) from change in fair value
-2,911,679.94 -2,284,437.56 5,070,340.00
(“-” means loss)
Investment income (“-” means loss) 35,396,790.78 31,795,991.51 863,240.78 -352,959.21
Including: income form investment on
25,771,098.00 25,771,098.00 -352,959.21 -352,959.21
affiliated enterprise and jointly enterprise
Foreign exchange difference (“-” means
loss)
III. Operating profit (“-” means loss) 175,646,237.04 170,730,887.92 161,412,192.97 59,551,657.86
Add: non-business income 24,267,030.60 9,185,864.19 35,988,141.92 15,937,999.38
Less: non-business expense 3,125,146.26 3,366,553.29 1,112,467.81 691,348.46
Including: loss from non-current asset 358,847.63 627,500.00 678,516.02
9
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
disposal
IV. Total profit (“-” means loss) 196,788,121.38 176,550,198.82 196,287,867.08 74,798,308.78
Less: tax expense 31,133,827.49 26,482,529.82 27,227,778.56 11,219,746.32
V. Net profit (“-” means loss) 165,654,293.89 150,067,669.00 169,060,088.52 63,578,562.46
Attributable to equity holders of parent
141,943,072.46 150,067,669.00 136,896,666.62 63,578,562.46
company
Minority interests 23,711,221.43 32,163,421.90
VI. Earnings per share
(I) Basic earnings per share 0.22 0.22
(II) Diluted earnings per share 0.22 0.22
Ⅶ. Other composite income -636,603.93 -53,978.40 7,996.80 7,996.80
Ⅷ. Total composite income 165,017,689.96 150,013,690.60 169,068,085.32 63,586,559.26
Attributable to owners of parent company 141,306,468.54 150,013,690.60 136,904,663.42 63,586,559.26
Attributable to minority shareholders 23,711,221.42 32,163,421.90
Where there were business combinations under the same control in this reporting period, the
combined parties achieved net profit of RMB 0.00 before the combinations.
4.3 Income statement for Jan.-Sept. 2011
Prepared by Wuxi Little Swan Company Limited Jan.-Sept. 2011 Unit: RMB Yuan
Jan.- Sept. 2011 Jan.- Sept. 2010
Items
Consolidation The Company Consolidation The Company
I. Total sales 9,365,771,616.38 5,924,077,774.14 8,350,029,970.01 4,885,900,812.06
Including: Sales 9,365,771,616.38 5,924,077,774.14 8,350,029,970.01 4,885,900,812.06
Interests income
Premium income
Handling charges and commission income
II. Total cost of sales 8,873,452,118.62 5,630,611,411.74 7,846,947,109.98 4,667,340,037.75
Including: Cost of sales 7,823,252,342.62 5,107,724,283.40 7,025,697,312.64 4,209,327,554.86
Interests expenses
Handling charges and commission income
Insurance discharge payment
Claim expenses-net
Provision for insurance contract reserves-net
Insurance policy dividend paid
Reinsurance expense
Business taxes and surcharges 18,817,214.73 7,417,194.31 13,495,611.70 11,839,646.30
Distribution expenses 693,133,218.92 377,350,080.42 557,796,647.63 299,977,128.64
Administrative expenses 312,420,908.49 193,482,465.37 223,950,020.29 129,809,462.20
Financial costs 1,975,566.89 894,144.24 25,068,970.26 22,205,536.58
Impairment loss 23,852,866.97 -56,256,756.00 938,547.46 -5,819,290.84
Add: gain/(loss) on change in fair value (“-”
8,777,385.90 6,558,918.00 5,070,340.00
means loss)
Gain/(loss) on investment (“-” means loss) 65,008,690.75 104,113,088.77 1,300,850.71 84,650.72
Including: income from investment on
24,693,027.38 49,650.72 49,650.72
associate and jointly-run ventures 24,693,027.38
Gain or loss on foreign exchange difference
(“-” means loss)
III. Operating profit (“-” means loss) 566,105,574.41 404,138,369.17 509,454,050.74 218,645,425.03
Add: non-business income 60,080,831.42 26,993,711.46 55,913,175.02 22,466,125.38
Less: non-business expense 11,658,099.15 10,040,628.89 12,779,758.58 8,250,377.01
Including: loss from disposal of non-current
2,376,359.89 1,545,566.09 8,187,893.90 6,264,861.01
assets
IV. Total profit (“-” means loss) 614,528,306.68 421,091,451.74 552,587,467.18 232,861,173.40
Less: tax expense 115,569,220.15 70,376,416.45 86,788,539.94 34,929,176.01
V. Net profit (“-” means loss) 498,959,086.53 350,715,035.29 465,798,927.24 197,931,997.39
Attributable to equity holders of parent
422,281,555.25 350,715,035.29 385,651,128.61 197,931,997.39
company
Minority interests 76,677,531.28 80,147,798.63
10
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
VI. Earnings per share
(I) Basic earnings per share 0.67 0.61
(II) Diluted earnings per share 0.67 0.61
Ⅶ. Other composite income -1,382,992.42 -45,981.60 9,996.00 9,996.00
Ⅷ. Total composite income 497,576,094.11 350,669,053.69 465,808,923.24 197,941,993.39
Attributable to owners of the Company 420,898,562.83 350,669,053.69 385,661,124.61 197,941,993.39
Attributable to minority shareholders 76,677,531.28 80,147,798.63
Where there were business combinations under the same control from the year-begin to the
period-end, the combined parties achieved net profit of RMB 0.00 before the combinations.
4.4 Cash flow statement for Jan.-Sept. 2011
Prepared by Wuxi Little Swan Company Limited Jan.-Sept. 2011 Unit: RMB Yuan
Jan.- Sept. 2011 Jan.-Sept. 2010
Items
Consolidation The Company Consolidation The Company
1. Cash flows from operating activities:
Cash received from sales of goods or
7,072,822,081.65 4,586,865,918.86 4,950,126,450.04 3,365,927,485.80
rending of services
Net increase of deposits received and
held for others
Net increase of loans from central bank
Net increase of call loans from other
financial institutions
Cash received against original
insurance contract
Net cash received from reinsurance
Net increase of client deposit and
investment
Net increase of disposal of
held-for-trading financial assets
Cash received as interest, handling
charges and commissions
Net increase of call loans
Net increase of cash received under
repurchasing
Tax and fare refunds 133,055,441.26 42,352,986.54 72,385,075.31 25,009,032.96
Other cash received from operating
134,107,933.76 31,308,569.29 102,723,483.10 18,844,253.36
activities
Sub-total of cash inflow from
7,339,985,456.67 4,660,527,474.69 5,125,235,008.45 3,409,780,772.12
operating activities
Cash paid for goods and services 5,148,321,416.37 3,379,149,907.63 2,698,730,133.59 1,778,099,567.17
Net increase of loans and advances
from customers
Net increase of deposits in central
bank, banks and other financial institutions
Cash paid for original contract claims
Cash paid for interest, fees and
commissions
Cash paid for policy dividend
Cash paid to and for employees 402,277,932.02 217,830,253.16 312,801,712.80 176,964,144.19
Cash paid for various taxes and fares 295,550,308.69 148,011,853.04 448,753,738.15 234,505,118.21
Other cash paid relating to operating
734,133,558.80 475,305,167.04 558,116,175.13 335,244,634.28
activities
Sub-total of cash outflows from
6,580,283,215.88 4,220,297,180.87 4,018,401,759.67 2,524,813,463.85
operating activities
Net cash flows from operating
759,702,240.79 440,230,293.82 1,106,833,248.78 884,967,308.27
activities
II. Cash Flows from Investing Activities
Cash received from investment
retractions
Cash received from investment income 22,767,064.50 53,166,370.00 21,983,846.70 21,983,846.70
Net cash received from disposal of
fixed assets, intangible assets and other 18,151,988.90 16,635,964.50 19,570,960.95 18,993,740.95
long-term assets
11
WUXI LITTLE SWAN COMPANY LIMITED THE THIRD QUARTERLY REPORT FOR 2011
Net cash received from disposal of
-3,027,789.49 37,500,000.00
subsidiaries and other operating units
Other cash received relating to
investing activities
Sub-total of cash inflows of investing
37,891,263.91 107,302,334.50 41,554,807.65 40,977,587.65
activities
Cash paid for acquisition of fixed
assets, intangible assets and other long-term 195,105,572.15 50,804,882.99 102,184,182.77 52,880,368.73
assets
Cash paid for acquisition of
investments
Net increase of pledge loans
Net cash paid for acquisition of
200,000.00 11,819,500.00 45,325,000.00
subsidiaries and other operating units
Other cash paid relating to investing
activities
Sub-total of cash outflows of investing
195,105,572.15 51,004,882.99 114,003,682.77 98,205,368.73
activities
Net cash flows from investing
-157,214,308.24 56,297,451.51 -72,448,875.12 -57,227,781.08
activities
III. Cash Flows from Financing Activities:
Cash received from investment
Including: cash received by
subsidiaries from minority shareholders
Cash received from borrowings 76,635,770.48 76,635,770.48
Cash received from bonds issuing
Other cash received relating to
financing activities
Sub-total of cash inflows of financing
76,635,770.48 76,635,770.48
activities
Cash paid for repayment of borrowings 75,246,626.25 75,246,626.25 1,000,000.00
Cash paid for dividends, profit
76,710,330.27 60,996,330.27 1,086,379.76 298,768.35
distribution or interest
Including: dividends or profits paid to
15,714,000.00
minority shareholders by subsidiaries
Other cash paid relating to financing
activities
Sub-total of cash outflows of
151,956,956.52 136,242,956.52 2,086,379.76 298,768.35
financing activities
Net cash flows from financing
-75,321,186.04 -59,607,186.04 -2,086,379.76 -298,768.35
activities
IV. Effect of foreign exchange rate on cash
and cash equivalents
V. Net decrease in cash and cash
527,166,746.51 436,920,559.29 1,032,297,993.90 827,440,758.84
equivalents
Add : Opening amount of cash and
2,119,023,194.93 1,492,995,931.54 1,553,899,535.65 743,637,877.78
cash equivalents
VI. Closing balance of cash and cash
2,646,189,941.44 1,929,916,490.83 2,586,197,529.55 1,571,078,636.62
equivalents
4.5 Auditor’s report
Audit opinion: Un-audited
12
