WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Stock Code: 000418, 200418 Short Form of the Stock: XTEA, XTEB Announcement No.: 2012-26 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 I. Important Notes The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior management of Wuxi Little Swan Company Limited (hereinafter referred to as “the Company”) warrant that this report does not contain any false or misleading statements or omit any material facts, and will collectively and individually accept the responsibilities for the truthfulness, accuracy and completeness of the whole contents of this report. All directors attended the board session for reviewing this report. Mr. Fang Hongbo and Mr. Chai Xinjian, company principals, Ms. Xiao Li, head of the accounting work, and Mr. Zhong Fangliu, head of the accounting division (head of accounting), hereby declare that the financial report enclosed in this semi-annual report is true and complete. English Translation for Reference Only. Should there be any discrepancy between the two versions, the Chinese version shall prevail. II. Company Profile (I)Basic information A-share abbreviation XTEA A-share code 000418 Stock exchange listed with Shenzhen Stock Exchange Company Secretary Securities Affairs Representative Name Ms. Zhou Sixiu Ms. Tian Lin No.18 Yangtze River South Road, Jiangsu No.18 Yangtze River South Road, Jiangsu Wuxi National High-Tech Development Wuxi National High-Tech Development Contact address Zone Zone Tel. 0510-81082320 0510-81082377 Fax 0510-83720879 0510-83720879 IR_littleswan@littleswan.com.cn tianlin@littleswan.com.cn E-mail (II)Financial highlights 1. Major accounting data and financial indexes Any retrospective adjustment in previous financial statements? □ Yes √ No 30 Jun. 2012 31 Dec. 2011 Increase/decrease (%) Total assets (RMB Yuan) 7,826,153,706.10 9,145,185,476.94 -14.42% Owners’ equity attributable to shareholders of the Company 3,530,947,207.74 3,441,144,937.45 2.61% (RMB Yuan) Share capital (share) 632,487,764.00 632,487,764.00 0% 1 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Net assets per share attributable to shareholders of the 5.58 5.44 2.61% Company (RMB Yuan/share) Liability/asset ratio(%) 47.96% 56.64% -8.68% Jan.-Jun. 2012 Jan.-Jun. 2011 Increase/decrease (%) Gross operating revenues (RMB Yuan) 3,101,328,731.14 6,747,514,122.53 -54.04% Operating profit (RMB Yuan) 252,798,018.99 390,459,337.37 -35.26% Total profit (RMB Yuan) 268,171,299.30 417,740,185.30 -35.8% Net profit attributable to shareholders of the Company (RMB 216,228,135.55 280,338,482.78 -22.87% Yuan) Net profit attributable to shareholders of the Company after 202,605,458.74 256,408,437.20 -20.98% deducting non-recurring gains and losses (RMB Yuan) Basic EPS (RMB Yuan/share) 0.34 0.44 -22.73% Diluted EPS (RMB Yuan/share) 0.34 0.44 -22.73% Weighted average ROE (%) 6.09% 8.77% -2.68% Weighted average ROE after deducting non-recurring gains 5.71% 8.02% -2.31% and losses (%) Net cash flow from operating activities (RMB Yuan) 909,437,610.73 -509,000,827.63 278.67% Net cash flow per share from operating activities (RMB 1.44 -0.8 278.67% Yuan/share) Notes to major accounting data and financial indexes before the end of the reporting period (Please give notes if there is any retrospective adjustment): Naught 2. Items of non-recurring gains and losses √Applicable □Inapplicable Items Jan.-Jun. 2012 (RMB Yuan) Notes Gains and losses on disposal of non-current assets 7,549,807.55 Tax rebate, reduction or exemption due to un-authorized approval or the lack of formal approval documents Government grants recognized in the current year, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the country’s unified 4,578,571.99 standards Capital occupation fees received from non-financial enterprises that are included in current gains and losses Gains generated when the investment costs of the Company’s acquiring subsidiaries, associates and joint ventures are less than the fair value of identifiable net assets in the investees attributable to the Company in the acquisition of the investments Exchange gains and losses of non-monetary assets Gains and losses through entrusting others to invest or manage assets Various asset impairment provisions due to acts of God such as natural disasters Gains and losses on debt restructuring Enterprise reorganization expenses, such as expenses on employee settlement and integration Gains and losses on the parts exceeding the fair value when prices of transactions become unfair Net current gains and losses from the period-begin to the combination date of subsidiaries due to business combinations under the same control Gains and losses on contingent matters which are irrelevant to the normal operation of the Company Gains and losses on fair value changes of transactional financial assets and liabilities, and investment gains on disposal of transactional financial assets and liabilities and available-for-sale financial assets, except for the effective hedging business related to the 2 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Company’s normal operation Reversal of impairment provisions for accounts receivable which are separately tested for impairment signs Gains and losses on entrustment loans from external parties Gains and losses on fair value changes of investing properties for which the fair value method is adopted for subsequent measurement Current gain and loss effect due to a just-for-once adjustment to current gains and losses according to requirements of taxation and accounting laws and regulations Custodian fee income from entrusted operations with the Company Other non-operating incomes and expenses besides the items above 5,234,789.52 Other gain and loss items that meet the definition of non-recurring gains and losses Minority interests effects -1,136,464.99 Income tax effects -2,604,027.26 Total 13,622,676.81 -- 3. Net profit and net asset differences between financial reports disclosed according to the international and Chinese accounting standards respectively □Applicable √Inapplicable 4. Net profit and net asset differences between financial reports disclosed according to the overseas and Chinese accounting standards respectively □Applicable √Inapplicable III. Changes in Share Capital and Particulars about Shareholders (I)Changes in share capital √Applicable □Inapplicable Before the change Increase/decrease (+, -) After the change Bo Capitaliz Issuan nu ation of Proporti ce of s Proportio Number public Others Subtotal Number on (%) new sh n (%) reserve shares are fund s I. Shares subject to trading 256,135,820 40.5% 3,480,185 3,480,185 259,616,005 41.05% moratorium 1. State-owned shares 0% 2. State-owned legal 0% person shares 3. Other domestic shares 225,284,106 35.62% 3,480,185 3,480,185 228,764,291 36.17% Including: Shares held by 225,176,106 35.6% 3,480,185 3,480,185 228,656,291 36.15% domestic legal persons Shares held by 108,000 0.02% 108,000 0.02% domestic individuals 4. Shares held by overseas 30,851,714 4.88% 30,851,714 4.88% shareholders Including: Shares held by 30,851,714 4.88% 30,851,714 4.88% 3 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 overseas legal persons Shares held by 0% overseas individuals 5. Shares held by senior 0% management staff II. Shares not subject to 376,351,944 59.5% -3,480,185 -3,480,185 372,871,759 58.95% trading moratorium 1. Ordinary shares 216,167,786 34.18% -3,480,185 -3,480,185 212,687,601 33.63% denominated in RMB 2. Domestically listed 160,184,158 25.33% 160,184,158 25.33% foreign shares 3. Overseas listed foreign 0% shares 4. Others 0% III. Total shares 632,487,764.00 100% 632,487,764.00 100% (II)Shares held by the top ten holders of tradable shares/shares not subject to trading moratorium Shares held by the top ten shareholders and the top ten shareholders holding tradable shares Total number of shareholders 39,191 Particulars about shares held by the top ten shareholders Pledged or frozen Shareholdi shares Total shares Number of Nature of ng Name of shareholder (full name) held at the non-tradable Numbe shareholder percentage Status of period-end shares held r of (%) shares shares Domestic GD MIDEA HOLDING CO., LTD. non-state-owned 35.2% 222,661,571 222,661,571 corporation Overseas GAOLING FUND,L.P. 8.14% 51,464,551 corporation TITONI INVESTMENTS Overseas 4.88% 30,851,714 30,851,714 DEVELOPMENT LTD. corporation On behalf of the FINANCE BUREAU OF WUXI 3.49% 22,057,657 state Overseas BOCI SECURITIES LIMITED 3.32% 20,976,486 corporation GUOTAI JUNAN Overseas 2.04% 12,922,523 SECURITIES(HONGKONG) LIMITED corporation Domestic NATIONAL SOCIAL SECURITY FUND non-state-owned 1.66% 10,500,857 PORTFOLIO 102 corporation CHINA CONSTRUCTION Domestic BANK-CHINAAMC GLOBAL non-state-owned 1.33% 8,385,623 SELECTED STOCK FUND corporation SUN HUNG KAI INVESTMENT Overseas 1.1% 6,986,181 SERVICES LTD-CUSTOMERS A/C corporation CHINA CONSTRUCTION BANK - Domestic PENGHUA VALUE ADVANCED STOCK non-state-owned 1.1% 6,933,828 FUND corporation Particulars about shares held by the top ten shareholders holding tradable shares Type and number of shares Name of shareholder Number of tradable shares held Type Number 4 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 GAOLING FUND,L.P. 51,464,551 B-share 51,464,551 FINANCE BUREAU OF WUXI 22,057,657 A-share 22,057,657 BOCI SECURITIES LIMITED 20,976,486 B-share 20,976,486 GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 12,922,523 B-share 12,922,523 NATIONAL SOCIAL SECURITY FUND PORTFOLIO 102 10,500,857 A-share 10,500,857 CHINA CONSTRUCTION BANK-CHINAAMC GLOBAL 8,385,623 A-share 8,385,623 SELECTED STOCK FUND SUN HUNG KAI INVESTMENT SERVICES 6,986,181 B-share 6,986,181 LTD-CUSTOMERS A/C CHINA CONSTRUCTION BANK-PENGHUA VALUE 6,933,828 A-share 6,933,828 ADVANCED STOCK FUND UBS CUSTODY SERVICES SINGAPORE PTE. LTD. 5,965,705 B-share 5,965,705 TRISKELE CHINA FUND 5,474,665 B-share 5,474,665 Explanation on associated relationship or/and persons acting in GD MIDEA HOLDING CO., LTD. and TITONI INVESTMENTS concert among the above-mentioned shareholders DEVELOPMENT LTD. are parties acting in concert. (III)Change of the controlling shareholder and the actual controller □Applicable √Inapplicable IV. Particulars about Directors, Supervisors and Senior Management (I)Shareholding changes of directors, supervisors and senior management Number of Number of Of which: Number of Number of shares shares Number of number of stock options Reason for Name Office title shares held at increased in decreased in shares held at restricted held at change period-begin reporting reporting period-end shares held period-end period period Chairman of Fang Hongbo 0 0 0 0 0 0 Naught the Board General Chai Xinjian Manager; 0 0 0 0 0 0 Naught Director Li Feide Director 0 0 0 0 0 0 Naught Xiao Director 0 0 0 0 0 0 Naught Mingguang Liu Jufeng Director 0 0 0 0 0 0 Naught Director; Zhou Sixiu Company 0 0 0 0 0 0 Naught Secretary Zhao Independent 0 0 0 0 0 0 Naught Shuming Director Independent Ye Yongfu 0 0 0 0 0 0 Naught Director Independent Yu Lihui 0 0 0 0 0 0 Naught Director Zhang Supervisor 0 0 0 0 0 0 Naught Zhaofeng 5 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Jiang Supervisor 0 0 0 0 0 0 Naught Huafang Ye Dexin Supervisor 0 0 0 0 0 0 Naught Hu Ziqiang Vice GM 0 0 0 0 0 0 Naught Yin Bitong Vice GM 0 0 0 0 0 0 Naught Fu Wei Vice GM 0 0 0 0 0 0 Naught Mao Zhiliang Vice GM 0 0 0 0 0 0 Naught Xiao Li CFO 0 0 0 0 0 0 Naught Li Jianwei Director 0 0 0 0 0 0 Naught Wu Ganping Director 0 0 0 0 0 0 Naught Li Mingde Supervisor 0 0 0 0 0 0 Naught V. Report of the Board of Directors (I)Main business lines classified by industries and products Unit: RMB Yuan Main business lines classified by industries Increase/decrease Increase/decrease Increase/decrease of operating of gross profit of operating cost Operating Gross profit rate revenue rate compared Industry Operating cost compared with revenue (%) compared with with the same the same period the same period period last year last year (%) last year (%) (%) Household 2,805,116,121.47 2,213,791,209.14 21.08% -52.45% -54.08% 2.81% appliances Main business lines classified by products Increase/decrease Increase/decrease Increase/decrease of operating of gross profit of operating cost Operating Gross profit rate revenue rate compared Product Operating cost compared with revenue (%) compared with with the same the same period the same period period last year last year (%) last year (%) (%) Washing 2,805,116,121.47 2,213,791,209.14 21.08% -52.45% -54.08% 2.81% machines Explanation to the reasons for any significant year-on-year change of the gross profit rate: Naught (II)Main business lines classified by regions Unit: RMB Yuan Increase/decrease compared with the same Region Operating revenue period last year (%) Domestic 1,744,614,729.04 -63.90% Overseas 1,060,501,392.43 -0.57% (III)Reasons for any significant change in main business and its structure √Applicable □Inapplicable In the reporting period, the overseas market basically remained stable while the domestic market saw a slide. 6 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Domestic sales slid mainly because in order to deal with market changes, the Company took the initiative to adjust its marketing mode, simplify intermediate links and consume a great deal of inventory. (IV)Reasons of significant changes in profitability of main business (gross profit rate) compared with that in the last year □Applicable √Inapplicable (V)Analysis on reasons of significant changes in profit breakdown compared with the last year □Applicable √Inapplicable (VI)Particulars about utilization of the raised funds 1. Utilization of the raised funds □Applicable √Inapplicable 2. Change of projects invested with raised funds □Applicable √Inapplicable (VII)Revision of the Board of Directors’ business plan for the second half of the year □Applicable √Inapplicable (VIII)Business performance estimate for Jan.-Sept. 2012 Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period from the beginning of the year to the end of the next reporting period compared with the same period of last year, as well as the reasons □Applicable √Inapplicable (IX)Explanation of the Board of Directors on “Non-standard Auditing Report” issued by the CPA firm for the reporting period □Applicable √Inapplicable (X)Explanation of the Board of Directors on changes and solutions of the issues involved in the “Non-standard Auditing Report” issued by the CPA firm for last year □Applicable √Inapplicable 7 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 VI. Significant Events (I)Purchase, sales and reorganization of assets 1. Purchase of assets □Applicable √Inapplicable Notes to purchase of assets: 2. Sale of assets □Applicable √Inapplicable Notes to sale of assets: 3. Progress of these events after the publication of the assets reorganization report or public notices on the purchases or sales of assets, as well as the influences of these events on the operation results and financial status of the Company in this reporting period □Applicable √Inapplicable (II)Guarantee events √Applicable □Inapplicable Unit: RMB Ten thousand Guarantees provided by the Company for external parties (excluding those for subsidiaries) Type Period Exec Guarantee Disclosure date of Amount Actual occurrence Actual of of uted for a Guaranteed party relevant for date (date of guarantee guaran guarante or related announcement guarantee agreement) amount tee e not party or not Total actual occurred Total external guarantee line approved amount of external 0 0 during the reporting period (A1) guarantee during the reporting period (A2) Total actual external Total external guarantee line that has been guarantee balance at the approved at the end of the reporting 0 0 end of the reporting period (A3) period (A4) Guarantees provided by the Company for its subsidiaries Type Period Exec Guarantee Disclosure date of Amount Actual occurrence Actual of of uted for a Guaranteed party relevant for date (date of guarantee guaran guarante or related announcement guarantee agreement) amount tee e not party or not Hefei Royalstar Washing Equipment Warra 6 2 Mar. 2012 160,000 29 Feb. 2012 10,953 No No Manufacturing Co., nty months Ltd. Hefei Royalstar 2 Mar. 2012 Warra 6 160,000 6 Apr. 2012 1,000 No No Washing Equipment nty months 8 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Manufacturing Co., Ltd. Hefei Royalstar Washing Equipment Warra 6 2 Mar. 2012 160,000 24 Apr. 2012 3,306 No No Manufacturing Co., nty months Ltd. Hefei Royalstar Washing Equipment Warra 6 2 Mar. 2012 160,000 24 May 2012 6,527 No No Manufacturing Co., nty months Ltd. Hefei Royalstar Washing Equipment Warra 6 2 Mar. 2012 160,000 21 Jun. 2012 6,291 No No Manufacturing Co., nty months Ltd. Hefei Royalstar Washing Equipment Warra 6 2 Mar. 2012 160,000 21 Jun. 2012 8,664 No No Manufacturing Co., nty months Ltd. Hefei Royalstar Washing Equipment Warra 6 2 Mar. 2012 160,000 1 Jun. 2012 1,074 No No Manufacturing Co., nty months Ltd. Total actual occurred Total guarantee line approved for the amount of guarantee for subsidiaries during the reporting period 165,000 the subsidiaries during 37,814 (B1) the reporting period (B2) Total actual guarantee Total guarantee line that has been balance for the approved for the subsidiaries at the end of 165,000 subsidiaries at the end 37,814 the reporting period (B3) of the reporting period (B4) Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees) Total actual occurred Total guarantee line approved during the amount of guarantee 165,000 37,814 reporting period (A1+B1) during the reporting period (A2+B2) Total guarantee line that has been Total actual guarantee approved at the end of the reporting balance at the end of the period 165,000 37,814 reporting period (A3+B3) (A4+B4) Proportion of total guarantee amount (A4+B4) to the net assets of the 0.1071 Company Of which: Amount of guarantee for shareholders, actual controller and 0 related parties (C) Amount of debt guarantee provided for the guaranteed party whose asset-liability ratio is not less than 70% directly or 0 indirectly (D) Part of the amount of the total guarantee over 50% of net assets 0 (E) Total amount of the above three guarantees (C+D+E) 0 Explanation on possible bearing joint responsibility of Naught liquidation due to immature guarantee Explanation on provision of guarantees for external parties in Naught violation of the prescribed procedure 9 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 (III)Non-operating credits and liabilities with related parties Was there any non-operating credit or liability with any related party? □ Yes √ No (IV)Significant lawsuits and arbitrations □Applicable √Inapplicable (V) Other significant events as well as analysis and explanations on their impact and solutions □Applicable √Inapplicable 1. Securities investment □Applicable √Inapplicable Notes to securities investment: Naught 2. Holding equity of other listed companies √Applicable □Inapplicable Gain/loss Change of Initial Proportion in Closing in the owners’ equity Stock investment the company’s carrying reporting Stock code during the Accounting title Stock source abbr. amount total equity amount period reporting period (RMB Yuan) (%) (RMB Yuan) (RMB (RMB Yuan) Yuan) Available-for-sale Private 400038 HXGK 100,300.00 0.01% 228,144.00 0.00 -47,980.80 financial assets offering Total 100,300.00 -- 228,144.00 0.00 -47,980.80 -- -- Notes to holding equity of other listed companies: Naught 3. Capital occupation during the reporting period and debt-clearing progress □Applicable √Inapplicable The accountability plan put forward by the Board of Directors when the Company had not completed collecting the capital occupied for non-operating purposes by the end of the reporting period □Applicable √Inapplicable 4. Fulfillment of commitments Commitments made by the Company, its directors, supervisors, senior management, shareholders holding more than 5% shares of the Company, actual controller or any other relevant party in this reporting period, or such commitments carried down into this reporting period √Applicable □Inapplicable Commitmen Commitment Contents Fulfillment t maker Commitmen Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea Holding) plans In the process Controlling t on share shareholder to sell the Company’s shares released from trading moratorium held by it via the bid of reform trading system of the Shenzhen Stock Exchange, and Midea Holding decreases over implementati 10 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 5% shares within six months since the first reduction of holdings, Midea Holding will on disclose the suggestive announcement on share selling through the Company two trading days before its first reduction of holdings. 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 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. Commitmen 2010, the Financial Settlement Center of GD Midea Holding had settled all internal t in the deposits and borrowings with Hefei Royalstar Washing Equipment Manufacturing Co., Controlling Ltd.; and GD Midea Holding has promised that there will be no more deposits, In the process acquisition shareholder borrowings or other funds flows incurred between the Financial Settlement Center and of report or the and actual Hefei Royalstar Washing Equipment Manufacturing Co., Ltd.. implementati report on controller on equity 6. The commitment by GD Midea Holding on housing properties with no changes 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 11 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 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. Commitmen ts made in Naught Naught an asset exchange Commitmen ts made in Naught Naught share issuance Other commitment s made to Naught Naught minority shareholders 5. Pre-plan of the Board of Directors for profit distribution or turning capital reserves into share capital □Applicable √Inapplicable 6. Items of other comprehensive income Unit: RMB Yuan Items Jan.-Jun. 2012 Jan.-Jun. 2011 1. Profits/(losses) from available-for-sale financial assets -56,448.00 9,408.00 Less: Effects on income tax generating from available-for-sale financial assets -8,467.20 1,411.20 Net amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior period Subtotal -47,980.80 7,996.80 2. Interests in the investee entities’ other comprehensive income as per equity method Less: Effects on income tax generating from the interests in the investee entities’ other comprehensive income as per equity method Net amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior period Subtotal 3. Profits/(losses) from cash flow hedging instrument Less: Effects on income tax generating from cash flow hedging instrument Net amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior period The adjustment value that is the converted initial recognition amount of arbitrage project Subtotal 4. Converted amount of foreign currency financial statements 119,668.34 -754,385.29 Less: Net value of disposal of oversea operations that recognized into current profit and loss Subtotal 119,668.34 -754,385.29 12 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 5. Other Less: Effects on income tax generating from the others that included into other comprehensive income Net amount transferred into profit and loss in the current period that recognized into other comprehensive income in prior period Subtotal Total 71,687.54 -746,388.49 (VI)Particulars about researches, visits and interviews received in this reporting period Main discussion and Place of Way of Visitor Time of reception Visitor materials provided by reception reception type the Company Conference Institutio Overall operation of 9 Jan. 2012 Room of the Field research Sinolink Securities n the Company Company Conference Institutio Overall operation of 13 Mar. 2012 Room of the Field research Sinolink Securities, E Fund Management n the Company Company Conference Institutio Overall operation of 22 Mar. 2012 Room of the Field research Huatai United Securities, Bosera Funds n the Company Company Conference Institutio Jinling Evening Nes, Huatai Securities Overall operation of 23 Apr. 2012 Room of the Field research n and individual shareholders the Company Company Conference Morgan Stanley, Keywise Capital, Institutio Overall operation of 8 May 2012 Room of the Field research Azentus Capital, UG Investment, n the Company Company Comgest, Norges Bank Conference Institutio Overall operation of 16 May 2012 Room of the Field research ChinaAMC n the Company Company Conference Institutio Changjiang Securities, PICC Asset Overall operation of 23 May 2012 Room of the Field research n Management the Company Company Conference Institutio Overall operation of 28 May 2012 Room of the Field research Dacheng Fund Management n the Company Company VII. Financial Report (I)Audit opinion Has this interim report been audited? □ Yes √ No (II)Financial statements Consolidated statements or not? √ Yes □ No 1. Consolidated balance sheet Prepared by Wuxi Little Swan Co., Ltd. Unit: RMB Yuan 13 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Item Note 30 Jun. 2012 31 Dec. 2011 Current Assets: Monetary funds 3,120,949,620.15 2,415,450,351.24 Settlement reserves Intra-group lendings Transactional financial assets 4,292,300.00 Notes receivable 1,001,881,578.18 2,757,923,958.94 Accounts receivable 995,885,577.81 929,389,061.45 Accounts paid in advance 216,011,619.87 250,051,980.25 Premiums receivable Reinsurance premiums receivable Receivable reinsurance contract reserves Interest receivable Dividend receivable Other accounts receivable 18,887,033.61 15,548,447.50 Financial assets purchased under agreements to resell Inventories 622,818,920.09 809,400,728.98 Non-current assets due within 1 year Other current assets 61,849,729.40 112,052,669.26 Total current assets 6,038,284,079.11 7,294,109,497.62 Non-current assets: Loans by mandate and advances granted Available-for-sale financial assets 228,144.00 284,592.00 Held-to-maturity investments Long-term accounts receivable Long-term equity investment 5,889,739.26 5,838,851.75 Investing property 5,146,268.73 5,242,947.48 Fixed assets 1,328,967,037.77 1,365,332,660.33 Construction in progress 4,954,600.00 Engineering materials Disposal of fixed assets Production biological assets Oil-gas assets Intangible assets 312,965,665.76 316,860,016.08 R&D expense Goodwill Long-term deferred expenses 43,120,404.20 52,754,858.43 Deferred income tax assets 86,597,767.27 104,762,053.25 Other non-current assets Total of non-current assets 1,787,869,626.99 1,851,075,979.32 Total assets 7,826,153,706.10 9,145,185,476.94 Current liabilities: Short-term borrowings 6,961,486.36 Borrowings from Central Bank Customer bank deposits and due to banks and other financial institutions 14 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Intra-group borrowings Transactional financial liabilities Notes payable 1,131,522,411.92 1,539,319,483.44 Accounts payable 2,023,593,612.48 2,815,488,171.38 Accounts received in advance 358,450,431.48 485,754,049.80 Financial assets sold for repurchase Handling charges and commissions payable Employee’s compensation payable 97,311,748.42 135,480,654.26 Tax payable -49,512,188.46 1,463,883.21 Interest payable Dividend payable 3,710,206.21 2,838,070.21 Other accounts payable 161,576,058.72 165,405,271.16 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 3,726,652,280.77 5,152,711,069.82 Non-current liabilities: Long-term borrowings Bonds payable Long-term payables Specific payables Estimated liabilities 19,418,640.40 20,152,637.08 Deferred income tax liabilities 19,176.60 671,488.80 Other non-current liabilities 7,318,250.00 6,621,250.00 Total non-current liabilities 26,756,067.00 27,445,375.88 Total liabilities 3,753,408,347.77 5,180,156,445.70 Owners’ equity (or shareholders’ equity) Paid-up capital (or share capital) 632,487,764.00 632,487,764.00 Capital reserves 1,096,109,333.71 1,096,157,314.51 Less: Treasury stock Specific reserves Surplus reserves 249,433,912.28 249,433,912.28 Provisions for general risks Retained profits 1,555,341,091.53 1,465,610,508.78 Foreign exchange difference -2,424,893.78 -2,544,562.12 Total equity attributable to owners of the Company 3,530,947,207.74 3,441,144,937.45 Minority interests 541,798,150.59 523,884,093.79 Total owners’ (or shareholders’) equity 4,072,745,358.33 3,965,029,031.24 Total liabilities and owners’ (or shareholders’) 7,826,153,706.10 9,145,185,476.94 equity Legal representative: Mr. Fang Hongbo Person-in-charge of the accounting work: Ms. Xiao Li Chief of the accounting division: Mr. Zhong Fangliu 15 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 2. Balance sheet of the Company Unit: RMB Yuan Item Note 30 Jun. 2012 31 Dec. 2011 Current Assets: Monetary funds 2,148,447,862.14 1,550,043,784.36 Transactional financial assets 2,668,300.00 Notes receivable 615,569,148.23 1,764,588,946.47 Accounts receivable 724,430,774.58 707,158,935.38 Accounts paid in advance 369,346,206.58 338,046,007.02 Interest receivable Dividend receivable Other accounts receivable 18,126,904.01 11,930,349.24 Inventories 358,435,523.70 449,255,444.14 Non-current assets due within 1 year Other current assets 40,284,918.81 75,984,449.98 Total current assets 4,274,641,338.05 4,899,676,216.59 Non-current assets: Available-for-sale financial assets 228,144.00 284,592.00 Held-to-maturity investments Long-term accounts receivable Long-term equity investment 1,669,633,818.33 1,669,582,930.82 Investing property 5,146,268.73 5,242,947.48 Fixed assets 610,184,450.15 630,160,566.16 Construction in progress 970,000.00 Engineering materials Disposal of fixed assets Production biological assets Oil-gas assets Intangible assets 108,318,198.07 109,720,754.23 R&D expense Goodwill Long-term deferred expenses 40,332,094.49 46,948,131.13 Deferred income tax assets 47,204,452.96 61,626,184.39 Other non-current assets Total of non-current assets 2,482,017,426.73 2,523,566,106.21 Total assets 6,756,658,764.78 7,423,242,322.80 Current liabilities: Short-term borrowings Transactional financial liabilities Notes payable 753,384,896.60 1,046,275,176.33 Accounts payable 1,754,670,097.35 1,923,823,612.54 Accounts received in advance 230,430,806.60 385,922,579.96 Employee’s compensation payable 23,040,782.47 42,610,721.50 Tax payable -11,156,266.17 54,075,370.51 Interest payable Dividend payable 3,710,206.21 2,838,070.21 16 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Other accounts payable 181,668,477.24 192,113,998.82 Non-current liabilities due within 1 year Other current liabilities Total current liabilities 2,935,749,000.30 3,647,659,529.87 Non-current liabilities: Long-term borrowings Bonds payable Long-term payables Specific payables Estimated liabilities 384,464.01 1,199,402.08 Deferred income tax liabilities 19,176.60 427,888.80 Other non-current liabilities 900,000.00 1,200,000.00 Total non-current liabilities 1,303,640.61 2,827,290.88 Total liabilities 2,937,052,640.91 3,650,486,820.75 Owners’ equity (or shareholders’ equity) Paid-up capital (or share capital) 632,487,764.00 632,487,764.00 Capital reserves 1,258,161,388.94 1,258,209,369.74 Less: Treasury stock Specific reserves Surplus reserves 236,783,768.38 236,783,768.38 Retained profits 1,692,173,202.55 1,645,274,599.93 Foreign exchange difference Total owners’ (or shareholders’) equity 3,819,606,123.87 3,772,755,502.05 Total liabilities and owners’ (or shareholders’) 6,756,658,764.78 7,423,242,322.80 equity 3. Consolidated income statement Unit: RMB Yuan Item Note Jan.-Jun. 2012 Jan.-Jun. 2011 I. Total operating revenues 3,101,328,731.14 6,747,514,122.53 Including: Sales income 3,101,328,731.14 6,747,514,122.53 Interest income Premium income Handling charge and commission income II. Total operating cost 2,849,301,204.78 6,398,355,750.97 Including: Cost of sales 2,453,880,581.19 5,611,799,841.30 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 15,731,754.99 15,808,434.08 Selling and distribution expenses 283,844,635.96 524,121,604.12 17 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Administrative expenses 123,624,901.19 239,982,133.45 Financial expenses -30,539,990.76 1,111,770.69 Asset impairment loss 2,759,322.21 5,531,967.33 Add: Gain/(loss) from change in fair value (“-” means loss) -4,292,300.00 11,689,065.84 Gain/(loss) from investment (“-” means loss) 5,062,792.63 29,611,899.97 Including: share of profits in associates and joint ventures Foreign exchange gains (“-” means loss) III. Business profit (“-” means loss) 252,798,018.99 390,459,337.37 Add: non-operating income 19,060,727.43 35,813,800.82 Less: non-operating expense 3,687,447.12 8,532,952.89 Including: loss from non-current asset disposal IV. Total profit (“-” means loss) 268,171,299.30 417,740,185.30 Less: Income tax expense 34,029,106.95 84,435,392.66 V. Net profit (“-” means loss) 234,142,192.35 333,304,792.64 Including: Net profit achieved by combined parties before the combinations Attributable to owners of the Company 216,228,135.55 280,338,482.78 Minority shareholders’ income 17,914,056.80 52,966,309.86 VI. Earnings per share -- -- (I) Basic earnings per share 0.34 0.44 (II) Diluted earnings per share 0.34 0.44 Ⅶ. Other comprehensive incomes 71,687.54 -746,388.49 Ⅷ. Total comprehensive incomes 234,213,879.89 332,558,404.15 Attributable to owners of the Company 216,299,823.09 279,592,094.29 Attributable to minority shareholders 17,914,056.80 52,966,309.86 Where business mergers under the same control occurred in this report period, the net profit achieved by the merged parties before the business mergers was RMB 0. Legal representative: Mr. Fang Hongbo Person-in-charge of the accounting work: Ms. Xiao Li Chief of the accounting division: Mr. Zhong Fangliu 4. Income statement of the Company Unit: RMB Yuan Item Note Jan.-Jun. 2012 Jan.-Jun. 2011 I. Total sales 1,895,174,546.25 4,503,507,595.18 Less: cost of sales 1,465,593,618.16 3,859,258,085.70 Business taxes and surcharges 12,694,175.13 7,417,194.31 Distribution expenses 183,560,344.78 318,150,362.73 Administrative expenses 72,560,340.83 153,475,177.10 Financial costs -25,175,650.73 753,612.67 Impairment loss -13,852.04 12,206,134.25 Add: gain/(loss) from change in fair value (“-” means loss) -2,668,300.00 8,843,355.56 Gain/(loss) from investment (“-” means loss) 3,227,992.63 72,317,097.26 Including: income form investment on associates and joint ventures 18 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 II. Business profit (“-” means loss) 186,515,262.75 233,407,481.24 Add: non-business income 12,106,147.22 17,807,847.27 Less: non-business expense 3,224,662.42 6,674,075.60 Including: loss from non-current asset disposal III. Total profit (“-” means loss) 195,396,747.55 244,541,252.91 Less: income tax expense 22,000,592.14 43,893,886.62 IV. Net profit (“-” means loss) 173,396,155.41 200,647,366.29 V. Earnings per share -- -- (I) Basic earnings per share (II) Diluted earnings per share VI. Other comprehensive income -47,980.80 7,996.80 VII. Total comprehensive income 173,348,174.61 200,655,363.09 5. Consolidated cash flow statement Unit: RMB Yuan Item Jan.-Jun. 2012 Jan.-Jun. 2011 I. Cash flows from operating activities: Cash received from sale of commodities and rendering of service 3,674,745,722.64 3,434,839,906.65 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 intra-group borrowings Net increase of funds in repurchase business Tax refunds received 79,016,919.17 99,468,275.47 Other cash received relating to operating activities 53,681,539.89 22,789,774.26 Subtotal of cash inflows from operating activities 3,807,444,181.70 3,557,097,956.38 Cash paid for goods and services 2,160,266,283.45 2,993,839,332.97 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 248,006,127.35 292,624,388.63 Various taxes paid 172,805,301.91 228,116,211.42 Other cash payment relating to operating activities 316,928,858.26 551,518,850.99 Subtotal of cash outflows from operating activities 2,898,006,570.97 4,066,098,784.01 Net cash flows from operating activities 909,437,610.73 -509,000,827.63 II. Cash flows from investing activities: Cash received from withdrawal of investments Cash received from return on investments 5,011,905.12 12,179,078.24 19 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Net cash received from disposal of fixed assets, intangible assets 5,409,242.65 18,117,988.90 and other long-term assets Net cash received from disposal of subsidiaries or other business -3,027,789.49 units Other cash received relating to investing activities Subtotal of cash inflows from investing activities 10,421,147.77 27,269,277.65 Cash paid to acquire fixed assets, intangible assets and other 86,310,128.35 151,044,435.96 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 86,310,128.35 151,044,435.96 Net cash flows from investing activities -75,888,980.58 -123,775,158.31 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 Cash received from issuance of bonds Other cash received relating to financing activities Subtotal of cash inflows from financing activities 0.00 76,635,770.48 Repayment of borrowings 6,961,486.36 46,065,260.92 Cash paid for interest expenses and distribution of dividends or 118,658,592.00 76,637,741.32 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 125,620,078.36 122,703,002.24 Net cash flows from financing activities -125,620,078.36 -46,067,231.76 IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents 707,928,551.79 -678,843,217.70 Add: Opening balance of cash and cash equivalents 2,279,653,302.57 2,119,023,194.93 VI. Closing balance of cash and cash equivalents 2,987,581,854.36 1,440,179,977.23 6. Cash flow statement of the Company Unit: RMB Yuan Item Jan.-Jun. 2012 Jan.-Jun. 2011 I. Cash flows from operating activities: Cash received from sale of commodities and rendering of service 2,247,822,270.50 2,148,607,456.50 Tax refunds received 12,058,954.37 34,686,957.95 Other cash received relating to operating activities 42,551,391.25 12,645,168.45 Subtotal of cash inflows from operating activities 2,302,432,616.12 2,195,939,582.90 Cash paid for goods and services 1,096,066,119.14 2,121,912,978.38 Cash paid to and for employees 137,373,199.90 156,651,462.53 Various taxes paid 132,773,784.78 120,478,532.57 Other cash payment relating to operating activities 185,171,318.69 331,378,118.59 20 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 Subtotal of cash outflows from operating activities 1,551,384,422.51 2,730,421,092.07 Net cash flows from operating activities 751,048,193.61 -534,481,509.17 II. Cash flows from investing activities: Cash received from retraction of investments Cash received from return on investments 3,137,105.12 46,179,183.00 Net cash received from disposal of fixed assets, intangible assets 5,297,792.57 16,635,964.50 and other long-term assets Net cash received from disposal of subsidiaries or other business 37,500,000.00 units Other cash received relating to investing activities Subtotal of cash inflows from investing activities 8,434,897.69 100,315,147.50 Cash paid to acquire fixed assets, intangible assets and other 62,176,366.55 33,198,788.79 long-term assets Cash paid for investment Net cash paid to acquire subsidiaries and other business units 200,000.00 Other cash payments relating to investing activities Subtotal of cash outflows from investing activities 62,176,366.55 33,398,788.79 Net cash flows from investing activities -53,741,468.86 66,916,358.71 III. Cash Flows from Financing Activities: Cash received from capital contributions Cash received from borrowings 76,635,770.48 Cash received from issuance of bonds Other cash received relating to financing activities Subtotal of cash inflows from financing activities 0.00 76,635,770.48 Repayment of borrowings Cash paid for interest expenses and distribution of dividends or 118,658,592.00 60,923,741.32 profit Other cash payments relating to financing activities Sub-total of cash outflows from financing activities 118,658,592.00 60,923,741.32 Net cash flows from financing activities -118,658,592.00 15,712,029.16 IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents 578,648,132.75 -451,853,121.30 Add: Opening balance of cash and cash equivalents 1,470,854,364.19 1,492,995,931.54 VI. Closing balance of cash and cash equivalents 2,049,502,496.94 1,041,142,810.24 21 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 7. Consolidated statement of changes in owners’ equity Reporting period Unit: RMB Yuan Reporting period Equity attributable to owners of the Company Item Paid-up Less: Specifi Gener Minority Total owners’ capital (or treasur c al risk interests equity Capital reserve Surplus reserve Retained profit Others share y reserv reserv capital) stock e e I. Balance at the end of the previous year 632,487,764 1,096,157,314.51 249,433,912.28 1,465,610,508.78 -2,544,562.12 523,884,093.78 3,965,029,031.23 Add: change of accounting policy Correction of errors in previous periods Other II. Balance at the beginning of the year 632,487,764 1,096,157,314.51 249,433,912.28 1,465,610,508.78 -2,544,562.12 523,884,093.78 3,965,029,031.23 III. Increase/ decrease of amount in the year -47,980.8 89,730,582.75 119,668.34 17,914,056.8 107,716,327.09 (“-” means decrease) (I) Net profit 216,228,135.55 17,914,056.8 234,142,192.35 (II) Other comprehensive incomes -47,980.8 119,668.34 71,687.54 Subtotal of (I) and (II) -47,980.8 216,228,135.55 119,668.34 17,914,056.8 234,213,879.89 (III) Capital paid in and reduced by owners 0 0 0 0 0 0 0 0 0 0 1. Capital paid in by owners 2. Amounts of share-based payments recognized in owners’ equity 3. Others (IV) Profit distribution 0 0 0 0 0 0 -126,497,552.8 0 0 -126,497,552.8 1. Appropriations to surplus reserves 2. Appropriations to general risk provisions 3. Appropriations to owners (or -126,497,552.8 -126,497,552.8 shareholders) 4. Other (V) Internal carry-forward of owners’ 0 0 0 0 0 0 0 0 0 0 equity 1. New increase of capital (or share capital) from capital public reserves 22 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 2. New increase of capital (or share capital) from surplus reserves 3. Surplus reserves for making up losses 4. Other (Ⅵ) Specific reserve 1. Withdrawn for the period 2. Used in the period (Ⅶ) Other IV. Closing balance 632,487,764 1,096,109,333.71 249,433,912.28 1,555,341,091.53 -2,424,893.78 541,798,150.58 4,072,745,358.33 Last year Unit: RMB Yuan Last year Equity attributable to owners of the Company Item Paid-up Less: Specifi Gener Minority Total owners’ capital (or treasur c al risk interests equity Capital reserve Surplus reserve Retained profit Others share y reserv reserv capital) stock e e I. Balance at the end of the previous year 632,487,764 1,099,965,927.1 212,889,613.44 1,112,075,620.21 -937,948.99 454,361,306.04 3,510,842,281.8 Add: retrospective adjustments due to business combinations under the same control Add: change of accounting policy Correction of errors in previous periods Other II. Balance at the beginning of the year 632,487,764 1,099,965,927.1 212,889,613.44 1,112,075,620.21 -937,948.99 454,361,306.04 3,510,842,281.8 III. Increase/ decrease of amount in the year -3,808,612.59 36,544,298.84 353,534,888.57 -1,606,613.13 69,522,787.75 454,186,749.44 (“-” means decrease) (I) Net profit 353,534,888.57 85,236,787.75 438,771,676.32 (II) Other comprehensive incomes -23,990.4 -1,606,613.13 -1,630,603.53 Subtotal of (I) and (II) -23,990.4 353,534,888.57 -1,606,613.13 85,236,787.75 437,141,072.79 (III) Capital paid in and reduced by owners 0 -3,784,622.19 0 0 0 0 0 0 -15,714,000 -19,498,622.19 1. Capital paid in by owners 2. Amounts of share-based payments recognized in owners’ equity 3. Others -3,784,622.19 -15,714,000 -19,498,622.19 23 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 (IV) Profit distribution 0 0 0 0 0 0 0 0 0 0 1. Appropriations to surplus reserves 2. Appropriations to general risk provisions 3. Appropriations to owners (or shareholders) 4. Other (V) Internal carry-forward of owners’ 0 0 0 0 0 0 0 0 0 0 equity 1. New increase of capital (or share capital) from capital public reserves 2. New increase of capital (or share capital) from surplus reserves 3. Surplus reserves for making up losses 4. Other (Ⅵ) Specific reserve 1. Withdrawn for the period 2. Used in the period (Ⅶ) Other IV. Closing balance 632,487,764 1,096,157,314.51 249,433,912.28 1,465,610,508.78 -2,544,562.12 523,884,093.78 3,965,029,031.23 8. Statement of changes in owners’ equity of the Company Reporting period Unit: RMB Yuan Reporting period Specifi Item General Paid-up capital (or share Less: treasury c Capital reserve Surplus reserve risk Retained profit Total owners’ equity capital) stock reserv reserve e I. Balance at the end of the previous year 632,487,764 1,258,209,369.74 236,783,768.38 1,645,274,599.93 3,772,755,502.05 Add: change of accounting policy Correction of errors in previous periods Other II. Balance at the beginning of the year 632,487,764 1,258,209,369.74 236,783,768.38 1,645,274,599.93 3,772,755,502.05 24 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 III. Increase/ decrease of amount in the year -47,980.8 46,898,602.62 46,850,621.82 (“-” means decrease) (I) Net profit 173,396,155.42 173,396,155.42 (II) Other comprehensive incomes -47,980.8 -47,980.8 Subtotal of (I) and (II) -47,980.8 173,396,155.42 173,348,174.62 (III) Capital paid in and reduced by owners 0 0 0 0 0 0 0 0 1. Capital paid in by owners 2. Amounts of share-based payments recognized in owners’ equity 3. Others (IV) Profit distribution 0 0 0 0 0 0 -126,497,552.8 -126,497,552.8 1. Appropriations to surplus reserves 2. Appropriations to general risk provisions 3. Appropriations to owners (or -126,497,552.8 -126,497,552.8 shareholders) 4. Other (V) Internal carry-forward of owners’ equity 0 0 0 0 0 0 0 0 1. New increase of capital (or share capital) from capital public reserves 2. New increase of capital (or share capital) from surplus reserves 3. Surplus reserves for making up losses 4. Other (Ⅵ) Specific reserve 1. Withdrawn for the period 2. Used in the period (Ⅶ) Other IV. Closing balance 632,487,764 1,258,161,388.94 236,783,768.38 1,692,173,202.55 3,819,606,123.87 Last year Unit: RMB Yuan Last year Item Paid-up capital (or share Less: treasury Specifi Capital reserve Surplus reserve General Retained profit Total owners’ equity capital) stock c risk 25 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 reserv reserve e I. Balance at the end of the previous year 632,487,764 1,258,233,360.14 200,239,469.54 1,379,624,686.82 3,470,585,280.5 Add: change of accounting policy Correction of errors in previous periods Other II. Balance at the beginning of the year 632,487,764 1,258,233,360.14 200,239,469.54 1,379,624,686.82 3,470,585,280.5 III. Increase/ decrease of amount in the year -23,990.4 36,544,298.84 265,649,913.11 302,170,221.55 (“-” means decrease) (I) Net profit 365,442,988.35 365,442,988.35 (II) Other comprehensive incomes -23,990.4 -23,990.4 Subtotal of (I) and (II) -23,990.4 365,442,988.35 365,418,997.95 (III) Capital paid in and reduced by owners 0 0 0 0 0 0 0 0 1. Capital paid in by owners 2. Amounts of share-based payments recognized in owners’ equity 3. Others (IV) Profit distribution 0 0 0 0 36,544,298.84 0 -99,793,075.24 -63,248,776.4 1. Appropriations to surplus reserves 36,544,298.84 -36,544,298.84 2. Appropriations to general risk provisions 3. Appropriations to owners (or -63,248,776.4 -63,248,776.4 shareholders) 4. Other (V) Internal carry-forward of owners’ equity 0 0 0 0 0 0 0 0 1. New increase of capital (or share capital) from capital public reserves 2. New increase of capital (or share capital) from surplus reserves 3. Surplus reserves for making up losses 4. Other (Ⅵ) Specific reserve 1. Withdrawn for the period 2. Used in the period 26 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 (Ⅶ) Other IV. Closing balance 632,487,764 1,258,209,369.74 236,783,768.38 1,645,274,599.93 3,772,755,502.05 27 WUXI LITTLE SWAN COMPANY LIMITED ABSTRACT OF INTERIM REPORT 2012 (III)Notes to the financial statements 1. Changes in main accounting policies or estimates, correction of any significant accounting error and the influenced amounts (1)Change of accounting policies Were the main accounting policies changed during the reporting period? □ Yes √ No (2)Change of accounting estimates Were the main accounting estimates changed during the reporting period? □ Yes √ No (3)Correction of accounting errors Was any accounting error made in previous periods discovered in the reporting period? □ Yes √ No 2. Reasons for any change of the consolidation scope P.T. Little Swan Prima Industries has been out of business for years and the shut-down procedure for it has currently started. The Company has made a full-amount long-term investment impairment provision for this. And it has never been included in the consolidated financial statements. 3. If a non-standard audit report is issued, the Company should make relevant notes. 28