WUXI LITTLE SWAN COMPANY LIMITED
THE FIRST QUARTERLY REPORT FOR 2012
§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, Mr. Chai Xinjian, GM, Ms. Xiao Li,
CFO, and Mr. Zhong Fangliu, the person-in-charge of the accounting department,
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. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (Yuan) 7,724,987,853.76 9,145,185,476.94 -15.53%
Owners’ equity attributable to shareholders of the 3,559,675,048.10 3,441,144,937.45 3.44%
Company (Yuan)
Share capital (share) 632,487,764.00 632,487,764.00 0.00%
Net assets per share attributable to shareholders of the 5.63 5.44 3.44%
Company (Yuan/share)
Jan.-Mar. 2012 Jan.-Mar. 2011 Increase/decrease (%)
Gross revenues (Yuan) 1,629,565,324.87 3,831,419,221.99 -57.47%
Net profit attributable to shareholders of the Company 118,581,048.80 135,433,479.99 -12.44%
(Yuan)
Net cash flows from operating activities (Yuan) -1,660,902.67 -735,923,388.16 99.77%
Net cash flows per share from operating activities 0.00 -1.16 99.77%
(Yuan/share)
Basic EPS (Yuan/share) 0.19 0.21 -9.52%
Diluted EPS (Yuan/share) 0.19 0.21 -9.52%
Weighted average ROE (%) 3.39% 4.33% -0.94%
Weighted average ROE after deducting non-recurring 3.35% 3.38% -0.03%
gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Amount from the year-begin
Items of non-recurring gains and losses Notes (if applicable)
to the period-end
Gains and losses from disposal of non-current assets -4,680,025.00
Government subsidies recorded into current gains and losses, excluding
those related closely to the routine business of the Company and
3,449,986.35
continuously enjoyed by the Company at fixed amounts or ratios
according to state policies and regulations
Other non-operating incomes and expenses 3,565,160.48
Income tax effects -350,268.27
Minority interests effects -544,079.51
Total 1,440,774.05 -
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 reporting period 34,612
Shares held by the top ten shareholders not subject to trading moratorium
Shares not subject to
Full name of shareholder trading moratorium held Type of share
at the period-end
GAOLING FUND,L.P. 50,869,524 Domestically listed foreign shares
FINANCE BUREAU OF WUXI 22,057,657 RMB ordinary shares
BOCI SECURITIES LIMITED 20,976,486 Domestically listed foreign shares
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 12,895,197 Domestically listed foreign shares
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 102 10,500,857 RMB ordinary shares
SUN HUNG KAI INVESTMENT SERVICES LTD-CUSTOMERS A/C 6,986,181 Domestically listed foreign shares
CHINA CONSTRUCTION BANK－PENGHUA VALUE ADVANCED
6,933,828 RMB ordinary shares
STOCK SECURITIES INVESTMENT FUND
INDUSTRIAL AND COMMERCIAL BANK OF CHINA－SOOCHOW
JIAHE ADVANCED SELECTED MIXED TYPE OPEN-ENDED 6,386,482 RMB ordinary shares
SECURITIES INVESTMENT FUND
UBS CUSTODY SERVICES SINGAPORE PTE. LTD. 5,965,705 Domestically listed foreign shares
TRISKELE CHINA FUND 5,917,524 Domestically listed foreign shares
§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
Movement Reason for movement
Statement items 31 Mar. 2012 31 Dec. 2011 Movement
rate
Transactional
141.91 429.23 -287.33 -67% Forward foreign exchange contracts were due.
financial assets
Some notes were due and some were used for
Notes receivable 165,013.12 275,792.40 -40%
-110,779.28 goods payments.
Inventories decreased and prepayments for
Prepayments 19,138.95 25,005.20 -5,866.25 -23%
materials decreased.
Inventories 61,838.88 80,940.07 -19,101.20 -24% Effect of the production and sale cycle
The sewer network improvement project
Construction in
123.16 - 123.16 - newly launched by the Company did not
progress
reach settlement yet.
Other current Moulds for production were amortized and
8,582.51 11,205.27 -2,622.75 -23%
assets their value decreased.
Notes payable 70,319.80 153,931.95 -83,612.15 -54% Some notes payable were cleared.
Accounts payable 201,049.61 281,548.82 -80,499.21 -29% Mature goods payments were made.
The payroll payable for 2011 was paid in this
Payroll payable 10,099.03 13,548.07 -3,449.03 -25%
quarter.
Taxes and fares
5,998.60 146.39 5,852.22 -3998% Effect of the production and sale cycle
payable
Deferred income Fair value decreases of transactional financial
23.73 67.15 -43.42 -65%
tax liabilities assets and available-for-sale financial assets
Jan.-Mar. Jan.-Mar. Movement Reason for movement
Statement items Movement
2012 2011 rate
Gross operating The sales volume decreased due to the market
162,956.53 383,141.92 -220,185.39 -57%
revenues environment.
Operating costs 131,205.54 320,905.56 -189,700.03 -59% It decreased as the sales income decreased.
Business taxes Due to the production and sale cycle, it
1,184.17 947.54 236.63 25%
and surtaxes increased as the turnover tax increased.
Expenses decreased as the sales income
Selling expense 9,878.25 26,541.77 -16,663.52 -63%
decreased.
Administrative It was effectively reduced due to adjustment
6,536.86 19,511.84 -12,974.99 -66%
expense of the Company’s management structure.
Financial expense -1,617.45 375.66 -1,993.11 -531% Increase of interest on deposits
Gains on fair Gains on fair value changes of forward
-287.33 1,222.70 -1,510.02 -123%
value changes foreign exchange contracts decreased.
Investment Earnings were obtained from disposing the
353.80 2,164.69 -1,810.89 -84%
income subsidiary Huayin Electric Appliances in the
same period of last year.
Non-operating
788.29 2,483.52 -1,695.23 -68% Governmental subsidies received decreased.
income
Non-operating Some scrap was disposed and the loss on
743.91 429.00 314.91 73%
expense fixed asset disposal increased.
Total profit 15,330.76 19,689.99 -4,359.23 -22% The sales decreased.
Income tax
2,375.83 3,276.86 -901.04 -27% The total profit decreased.
expense
Net profit 12,954.93 16,413.13 -3,458.20 -21% The total profit decreased.
Minority
Profit achieved by non-wholly-funded
shareholder 1,096.83 2,869.78 -1,772.95 -62%
subsidiaries decreased.
income
Other With smaller fluctuations of the exchange
comprehensive -5.09 -29.90 24.81 -83% rates, the foreign-currency statement
incomes translation difference decreased.
Net cash flows
from operating -166.09 -73,592.34 73,426.25 -100% Cash paid for goods and services decreased.
activities
Net cash flows
from investing -5,198.62 -911.94 -4,286.68 -470% Cash paid to acquire fixed assets decreased.
activities
Net cash flows
from operating - 7,619.19 -7,619.19 100% Short-term borrowings secured decreased.
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
Commitment Promisor Contents of commitment Implementation
Commitment on Controlling Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea In the process of
share reform shareholder Holding) plans to sell the Company’s shares released from trading implementation
moratorium held by it via the bid trading system of the Shenzhen Stock
Exchange, and Midea Holding decreases over 5% shares within six
months since the first reduction of holdings, 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
The commitment
Company.
Commitment Controlling metioned in 9 has
3. As for the commitment for regulating related-party transactions,
made in the shareholder been fulfilled and
GD Midea Holding (the controlling shareholder) and Mr. He Xiangjian
significant asset and actual the other are still in
(the actual controller) have promised that when there are inevitable
reorganization controller the process of
related-party transactions or such transaction incurred with rational
execution.
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 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 100,300.00 235,200 263,424.00 100.00% 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 - 263,424.00 100% 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 Type of visitor Visitor
provided by the Company
The Company’s
9 Jan. 2012 Field research Institution Sinolink Securities Overall operation of the Company
meeting room
The Company’s Sinolink Securities, E
12 Mar. 2012 Field research Institution Overall operation of the Company
meeting room Fund Management
The Company’s Huatai United
22 Mar. 2012 Field research Institution Overall operation of the Company
meeting room Securities, Bosera Funds
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:
Analysis on risks and control measures
1. Market risk
of derivative products held in the
Price movements of bulk raw materials and fluctuations of exchange rates may incur a great
reporting period (including but not
market risk in the futures business and the foreign exchange funds business. Meanwhile, if the
limited to market risk, liquidity risk,
Company fails to input enough funds in time to create and maintain hedging positions in its
credit risk, operation risk, law risk, etc.)
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
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
The gain on the Company’s forward foreign exchange contracts was recognized at RMB
in the reporting period of the invested
5,518.50 million in the reporting period.
derivatives. And the analysis on the fair
The Company adopts public quotations in the futures market or forward foreign exchange
value of the derivatives should include
quotations declared by the People’s Bank of China in its analysis on fair values of derivative
the 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
Specific opinion from independent
settlement and sale launched by the Company for the purposes of avoiding exchange rate
directors on the Company’s derivatives
fluctuation risk and control exchange loss is closely related to the Company’s routine
investment and risk control
operations and in compliance with applicable laws and regulations. Meanwhile, the Company
has formulated the Management Methods for Exchange Funds and the Management Methods
for 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
Opening Closing contract Gain or loss in the Proportion of the closing contract amount in
Type of contract
contract amount amount reporting period the closing net assets of the Company (%)
Forward foreign exchange contracts 234,646,900.00 57,410,500.00 551,850.00 1.61%
Total 234,646,900.00 57,410,500.00 551,850.00 1.61%
§4. Appendix
4.1 Balance Sheet
Prepared by Wuxi Little Swan Company Limited 31 Mar. 2012 Unit: RMB Yuan
Closing balance Opening balance
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 2,320,964,526.35 1,347,375,824.98 2,415,450,351.24 1,550,043,784.36
Settlement reserves
Lendings to banks and other
financial institutions
Transactional financial assets 1,419,050.00 1,206,650.00 4,292,300.00 2,668,300.00
Notes receivable 1,650,131,174.52 1,033,976,298.10 2,757,923,958.94 1,764,588,946.47
Accounts receivable 1,031,060,791.12 1,040,540,499.96 929,389,061.45 707,158,935.38
Accounts paid in advance 191,389,522.65 214,918,089.19 250,051,980.25 338,046,007.02
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 13,589,117.72 13,183,180.85 15,548,447.50 11,930,349.24
Financial assets purchased under
agreements to resell
Inventories 618,388,769.88 389,063,148.37 809,400,728.98 449,255,444.14
Non-current assets due within 1
year
Other current assets 85,825,122.98 61,052,333.65 112,052,669.26 75,984,449.98
Total current assets 5,912,768,075.22 4,101,316,025.10 7,294,109,497.62 4,899,676,216.59
Non-current assets:
Entrusted loans and advances
granted
Available-for-sale financial assets 263,424.00 263,424.00 284,592.00 284,592.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 5,828,373.28 1,669,572,452.35 5,838,851.75 1,669,582,930.82
Investing property 5,194,652.73 5,194,652.73 5,242,947.48 5,242,947.48
Fixed assets 1,341,505,281.93 616,035,501.68 1,365,332,660.33 630,160,566.16
Construction in progress 1,231,600.00 970,000.00
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 315,330,607.92 109,019,476.15 316,860,016.08 109,720,754.23
R&D expense
Goodwill
Long-term deferred expenses 48,098,172.58 43,944,822.79 52,754,858.43 46,948,131.13
Deferred income tax assets 94,767,666.10 56,964,949.76 104,762,053.25 61,626,184.39
Other non-current assets
Total of non-current assets 1,812,219,778.54 2,501,965,279.46 1,851,075,979.32 2,523,566,106.21
Total assets 7,724,987,853.76 6,603,281,304.56 9,145,185,476.94 7,423,242,322.80
Current liabilities:
Short-term borrowings 6,961,486.36 6,961,486.36
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 703,198,023.30 549,891,744.24 1,539,319,483.44 1,046,275,176.33
Accounts payable 2,029,496,055.61 1,508,934,973.28 2,815,488,171.38 1,923,823,612.54
Accounts received in advance 523,306,367.45 415,176,810.02 485,754,049.80 385,922,579.96
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 100,990,330.74 23,082,119.19 135,480,654.26 42,610,721.50
Tax payable 59,986,045.19 48,926,797.61 1,463,883.21 54,075,370.51
Interest payable
Dividend payable 2,838,070.21 2,838,070.21 2,838,070.21 2,838,070.21
Other accounts payable 175,973,645.79 187,078,813.38 165,405,271.16 192,113,998.82
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 3,602,750,024.65 2,735,929,327.93 5,152,711,069.82 3,647,659,529.87
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities 19,829,052.38 1,011,238.76 20,152,637.08 1,199,402.08
Deferred income tax liabilities 237,326.10 205,466.11 671,488.80 427,888.80
Other non-current liabilities 7,644,050.00 1,200,000.00 6,621,250.00 1,200,000.00
Total non-current liabilities 27,710,428.48 2,416,704.87 27,445,375.88 2,827,290.88
Total liabilities 3,630,460,453.13 2,738,346,032.80 5,180,156,445.70 3,650,486,820.75
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00 632,487,764.00 632,487,764.00
Capital reserves 1,096,139,321.71 1,258,191,376.94 1,096,157,314.51 1,258,209,369.74
Less: Treasury stock
Specific reserves
Surplus reserves 249,433,912.28 236,783,768.38 249,433,912.28 236,783,768.38
Provisions for general risks
Retained profits 1,584,191,557.56 1,737,472,362.44 1,465,610,508.78 1,645,274,599.93
Foreign exchange difference -2,577,507.45 -2,544,562.12
Total equity attributable to owners of
3,559,675,048.10 3,864,935,271.76 3,441,144,937.45 3,772,755,502.05
the Company
Minority interests 534,852,352.53 523,884,093.79
Total owners’ equity 4,094,527,400.63 3,864,935,271.76 3,965,029,031.24 3,772,755,502.05
Total liabilities and owners’ equity 7,724,987,853.76 6,603,281,304.56 9,145,185,476.94 7,423,242,322.80
4.2 Income Statement
Prepared by Wuxi Little Swan Company Limited Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 1,629,565,324.87 983,319,071.30 3,831,419,221.99 2,548,804,870.44
Including: Sales income 1,629,565,324.87 983,319,071.30 3,831,419,221.99 2,548,804,870.44
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 1,477,366,332.71 871,577,076.64 3,688,938,370.68 2,513,150,561.17
Including: Cost of sales 1,312,055,379.37 779,609,331.46 3,209,055,630.29 2,203,808,377.92
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 charges 11,841,728.85 11,227,198.25 9,475,406.37 7,408,317.78
Selling and distribution expenses 98,782,478.06 50,410,103.03 265,417,681.27 150,842,595.45
Administrative expenses 65,368,571.92 41,689,016.47 195,118,432.47 134,514,597.22
Financial expenses -16,174,527.67 -15,549,348.09 3,756,582.06 4,091,272.34
Asset impairment loss 5,492,702.18 4,190,775.52 6,114,638.22 12,485,400.46
Add: Gain/(loss) from change in fair value (“-”
-2,873,250.00 -1,461,650.00 12,226,997.48 10,264,603.75
means loss)
Gain/(loss) from investment (“-” means loss) 3,538,026.66 1,932,226.65 21,646,894.24 66,565,338.94
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 152,863,768.82 112,212,571.31 176,354,743.03 112,484,251.96
Add: non-operating income 7,882,917.57 5,368,729.37 24,835,208.15 13,864,025.68
Less: non-operating expense 7,439,123.10 9,113,344.78 4,290,049.45 3,826,126.27
Including: loss from non-current asset disposal 1,841,560.40 1,451,210.64
IV. Total profit (“-” means loss) 153,307,563.29 108,467,955.90 196,899,901.73 122,522,151.37
Less: Income tax expense 23,758,255.75 16,270,193.39 32,768,641.61 18,378,322.71
V. Net profit (“-” means loss) 129,549,307.54 92,197,762.51 164,131,260.12 104,143,828.66
Attributable to owners of the Company 118,581,048.80 92,197,762.51 135,433,479.99 104,143,828.66
Minority shareholders’ income 10,968,258.74 28,697,780.13
VI. Earnings per share
(I) basic earnings per share 0.19 0.21
(II) diluted earnings per share 0.19 0.21
Ⅶ. Other comprehensive incomes -50,938.13 -17,992.80 -299,024.49 -299,024.49
Ⅷ. Total comprehensive incomes 129,498,369.41 92,179,769.71 163,832,235.63 103,844,804.17
Attributable to owners of the Company 118,530,110.67 92,179,769.71 135,134,455.50 103,844,804.17
Attributable to minority shareholders 10,968,258.74 28,697,780.13
Where there were business combinations under the same control in the reporting
period, the combined parties achieved net profits of RMB 0.00 before the
combinations.
4.3 Cash flow statement
Prepared by Wuxi Little Swan Company Limited Jan.-Mar. 2012 Unit: RMB Yuan
Jan.-Mar. 2012 Jan.-Mar. 2011
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating activities:
Cash received from sale of commodities and
2,005,323,736.13 1,004,847,824.56 1,627,486,981.66 1,101,485,514.77
rendering of 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 37,236,238.64 21,527,958.69 14,903,957.20
Other cash received relating to operating
25,733,732.67 19,643,544.19 8,698,553.58 4,722,546.24
activities
Subtotal of cash inflows from operating activities 2,068,293,707.44 1,024,491,368.75 1,657,713,493.93 1,121,112,018.21
Cash paid for goods and services 1,720,211,801.04 963,838,537.59 1,915,993,050.30 1,637,687,414.10
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 107,912,199.50 55,289,623.27 165,423,198.86 98,052,862.51
Various taxes paid 87,464,307.30 77,191,924.52 111,375,216.69 89,214,779.09
Other cash payment relating to operating
154,366,302.27 95,644,072.44 200,845,416.24 116,132,608.75
activities
Subtotal of cash outflows from operating activities 2,069,954,610.11 1,191,964,157.82 2,393,636,882.09 1,941,087,664.45
Net cash flows from operating activities -1,660,902.67 -167,472,789.07 -735,923,388.16 -819,975,646.24
II. Cash flows from investing activities:
Cash received from disposal of investments
Cash received from return on investments 3,548,505.12 1,942,705.12 6,689,550.00 40,648,730.00
Net cash received from disposal of fixed assets, 111,450.08 14,308,988.90 13,235,964.50
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
-3,027,789.49 37,500,000.00
or other business units
Other cash received relating to investing
activities
Subtotal of cash inflows from investing
3,659,955.20 1,942,705.12 17,970,749.41 91,384,694.50
activities
Cash paid to acquire fixed assets, intangible
55,646,111.64 36,159,245.21 27,090,152.15 17,748,292.65
assets and other 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 investing activities 55,646,111.64 36,159,245.21 27,090,152.15 17,748,292.65
Net cash flows from investing activities -51,986,156.44 -34,216,540.09 -9,119,402.74 73,636,401.85
III. Cash flows from financing activities:
Cash received from capital contributions
Including: Cash received from minority
shareholder investments by subsidiaries
Cash received from borrowings 76,635,770.48 76,635,770.48
Cash received from issuance of bonds
Other cash received relating to financing
activities
Subtotal of cash inflows from financing activities 76,635,770.48 76,635,770.48
Repayment of borrowings
Cash paid for interest expenses and distribution
443,860.20 443,860.20
of 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 financing activities 443,860.20 443,860.20
Net cash flows from financing activities 76,191,910.28 76,191,910.28
IV. Effect of foreign exchange rate changes on cash
and cash equivalents
V. Net increase in cash and cash equivalents -53,647,059.11 -201,689,329.16 -668,850,880.62 -670,147,334.11
Add: Cash and cash equivalents at the
2,279,653,302.57 1,470,854,364.19 2,119,023,194.93 1,492,995,931.54
period-begin
VI. Cash and cash equivalents at the period-end 2,226,006,243.46 1,269,165,035.03 1,450,172,314.31 822,848,597.43
4.4 Auditor’s report
Audit opinion: Un-audited
Chairman of the Board: Fang Hongbo
Wuxi Little Swan Company Limited
23 April 2012
