WUXI LITTLE SWAN COMPANY LIMITED
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 code 000418 B-share code 200418
A-share abbreviation XTEA B-share abbreviation XTEB
Stock exchange listed with Shenzhen Stock Exchange
Legal Chinese name of the
无锡小天鹅股份有限公司
Company
Abbr. of the legal Chinese
name of the Company
Legal English name of the
Wuxi Little Swan Company Limited
Company
Abbr. of the legal English
name of the Company
Legal representative of the
Mr. Fang Hongbo
Company
Registered address No. 18, Changjiang Road S., National Hi-tech Development Zone, Wuxi
Postal code for the registered
214028
address
Office address No. 18, Changjiang Road S., National Hi-tech Development Zone, Wuxi
Postal code for the office
214028
address
Internet website of the
http://www.littleswan.com
Company
Email address IR_littleswan@littleswan.com.cn
(II)For contact
Company Secretary Securities Affairs Representative
Name Ms. Zhou Sixiu Ms. Tian Lin
No. 18, Changjiang Road S., National Hi-tech No. 18, Changjiang Road S., National Hi-tech
Contact address
Development Zone, Wuxi Development Zone, Wuxi
Tel. 0510-81082320 0510-81082377
Fax 0510-83720879 0510-83720879
E-mail IR_littleswan@littleswan.com.cn tianlin@littleswan.com.cn
(III)About information disclosure and where the semi-annual report is placed
Newspapers designated by the Company for Securities Times, Hongkong Ta Kung Pao
information disclosure
Internet website designated by CSRC for
http://www.cninfo.com.cn
disclosing the semi-annual report
Where the semi-annual report is placed Securities Department of the Company
III. Financial and Business Highlights
(I)Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
□Yes √ No □Inapplicable
Major accounting data
Reporting period Same period of last
Major accounting data Increase/decrease (%)
(Jan.-Jun.) year
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) 268,171,299.3 417,740,185.3 -35.8%
Net profit attributable to shareholders of the
216,228,135.55 280,338,482.78 -22.87%
Company (RMB Yuan)
Net profit attributable to shareholders of the
Company after deducting non-recurring gains and 202,605,458.74 256,408,437.2 -20.98%
losses (RMB Yuan)
Net cash flow from operating activities (RMB
909,437,610.73 -509,000,827.63 278.67%
Yuan)
As at the end of this As at the end of last
Increase/decrease (%)
reporting period year
Total assets (RMB Yuan) 7,826,153,706.1 9,145,185,476.94 -14.42%
Owners’ equity attributable to shareholders of the
3,530,947,207.74 3,441,144,937.45 2.61%
Company (RMB Yuan)
Share capital (share) 632,487,764 632,487,764 0%
Major financial indexes
Reporting period Same period
Major financial indexes Increase/decrease (%)
(Jan.-Jun.) of last year
Basic EPS (RMB Yuan/share) 0.34 0.44 -22.73%
Diluted EPS (RMB Yuan/share) 0.34 0.44 -22.73%
Basic EPS after deducting non-recurring gains and
0.32 0.41 -21.95%
losses (RMB Yuan/share)
Fully diluted ROE(%) 6.12% 8.15% -2.02%
Weighted average ROE(%) 6.09% 8.77% -2.68%
Fully diluted ROE after deducting non-recurring gains
5.74% 7.45% -1.71%
and losses(%)
Weighted average ROE after deducting non-recurring
5.71% 8.02% -2.31%
gains and losses(%)
Net cash flow per share from operating activities (RMB
1.44 -0.8 278.67%
Yuan/share)
As at the end of this As at the end
Increase/decrease (%)
reporting period of last year
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%
(II)Accounting data differences under the domestic and overseas accounting standards
1. Net profit and net asset differences between financial reports disclosed according to the
international and Chinese accounting standards respectively
□Applicable √Inapplicable
2. Net profit and net asset differences between financial reports disclosed according to the overseas
and Chinese accounting standards respectively
□ Applicable √Inapplicable
3. Specific items involving significant difference
Naught
4. Notes to accounting data differences under the domestic and overseas accounting standards
Naught
(III)Items of non-recurring gains and losses
√Applicable □Inapplicable
Items Amount (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 4,578,571.99
unified 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
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 --
Explanation given by the Company to “other gain and loss items that meet the definition of non-recurring
gains and losses” and when it recognizes a non-recurring gain and loss item as a recurring one according
to the nature and features of its ordinary business:
Naught
IV. Changes in Share Capital and Particulars about Shareholders
(I)Changes in share capital
1. Statement of changes of shares
√Applicable □Inapplicable
Before the change Increase/decrease (+, -) After the change
Capitaliz
Issuan
ation of
Proportion ce of Bonus Proportion
Amount public Others Subtotal Amount
(%) new shares (%)
reserve
shares
fund
I. Shares subject to
256,135,820 40.5% 3,480,185 3,480,185 259,616,005 41.05%
trading 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 domestic legal 225,176,106 35.6% 3,480,185 3,480,185 228,656,291 36.15%
persons
Shares held by
108,000 0.02% 108,000 0.02%
domestic individuals
4. Shares held by
30,851,714 4.88% 30,851,714 4.88%
overseas shareholders
Including: Shares held by
30,851,714 4.88% 30,851,714 4.88%
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
0%
foreign shares
4. Others 0%
III. Total shares 632,487,764 100% 632,487,764 100%
Approval of share changes (if applicable)
Inapplicable
Transfers in share changes
Inapplicable
Influence of share changes on the latest financial indexes such as EPS and net assets per share (if any)
Naught
Other contents that the Company thinks necessary or is asked by securities regulators to be disclosed
Naught
2. Changes of shares subject to trading moratorium
√ Applicable □ Inapplicable
Shares Shares
Shares at the released in increased Shares at the Reason for trading
Name of shareholder Date of release
year-begin current in current year-end moratorium
year year
GD Midea Holding Co.,
Ltd. increased its The increased
shareholding in the 6,319,556 shares
secondary market, and shall not be reduced
committed not to reduce to hold during the
GD Midea Holding Co., Ltd. 219,181,386 3,480,185 222,661,571
its shareholding in the shareholding increase
Company in the secondary period and legal
market during period; others on 18
shareholding increase Nov. 2013.
period and legal period.
Restricted shares from
Cui Kai 108,000 96,271 -11,729 6 Jul. 2012
share splitting reform
Wuxi Doushan
Restricted shares from
Comprehensive Development 540,000 481,356 -58,644 6 Jul. 2012
share splitting reform
Co., Ltd.
Special Account of the
Disposition of Property of
Bankrupt Enterprises for Restricted shares from
648,000 577,628 -70,372 6 Jul. 2012
Yangjiang Huayang share splitting reform
Construction & Development
Co., Ltd.
Jiangsu Little Swan Group Restricted shares from
0 140,745 140,745 6 Jul. 2012
Co., Ltd. share splitting reform
Total 219,181,386 1,296,000 3,480,185 222,661,571 -- --
(II)Issuance and listing of securities
1. Securities issues in the previous three years
√ Applicable □ Inapplicable
Name of
Number Ending
security and its Issuing price Number of
Issuing date Listing date approved for date of
derivative (yuan/share) issuance
listing trade
security
Stock
XTEA 18 Nov. 2010 8.63 84,832,004 2 Dec. 2010 84,832,004
Convertible company bonds, bonds with attached warrant, company bonds, etc.
Naught
Warrant
Naught
Notes of securities issues in the previous three years (make notes of bonds that with different interest
during the existing period)
In accordance with the Reply on Approving the Significant Assets Reorganization of Wuxi Little Swan
Co., Ltd. and its Share Issuance to GD Midea Holding Co., Ltd. in exchange of assets (ZJXK[2010]
Document No.1577) issued by China Securities Regulatory Committee(CSRC), the Company issued
84,832,004 A-shares to GD Midea Holding Co., Ltd. at the issue price as RMB 8.63 per share, which is
the consideration in exchange of 69.47% of Hefei Royalstar Water Industry Facilities Co., Ltd.
Under the approval of Shenzhen Stock Exchange, the privately issued 84,832,004 shares of RMB common
share were listed in Shenzhen Stock Exchange since 2 Dec. 2010. GD Midea Holding Co., Ltd. made a
commitment that it would not transfer the shares of the Company within 36 months after the final day of
private issuing, and thereafter will trade according the stipulations of CSRC and Shenzhen Stock
Exchange.
2. Changes of the Company’s share number and structure, as well as the corresponding changes in
its asset-liability structure
□Applicable √Inapplicable
3. Existing employee shares
□Applicable √Inapplicable
(III)Shareholders and actual controller
1. Total number of shareholders at the end of the reporting period
The Company had 39,191 holders in total at the end of the reporting period.
2. Shareholding of the top ten shareholders
Particulars about shares held by the top ten shareholders
Pledged or frozen
Sharehol shares
Total shares Number of
Nature of ding Num
Name of shareholder (full name) held at the non-tradable
shareholder percenta Status of ber of
period-end shares held
ge (%) shares share
s
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
Overseas
TITONI INVESTMENTS DEVELOPMENT LTD. 4.88% 30,851,714 30,851,714
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 SECURITIES(HONGKONG) Overseas
2.04% 12,922,523
LIMITED corporation
Domestic
NATIONAL SOCIAL SECURITY FUND
non-state-owned 1.66% 10,500,857
PORTFOLIO 102
corporation
Domestic
CHINA CONSTRUCTION BANK-CHINAAMC
non-state-owned 1.33% 8,385,623
GLOBAL SELECTED STOCK FUND
corporation
SUN HUNG KAI INVESTMENT SERVICES Overseas
1.1% 6,986,181
LTD-CUSTOMERS A/C corporation
Domestic
CHINA CONSTRUCTION BANK － PENGHUA
non-state-owned 1.1% 6,933,828
VALUE ADVANCED STOCK FUND
corporation
Notes of particulars of shareholders Naught
Particulars about shares held by the top ten shareholders holding shares not subject to trading moratorium
√Applicable □Inapplicable
Number of tradable Type and number of shares
Name of shareholder
shares held Type Number
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 SELECTED 8,385,623 A-share 8,385,623
STOCK FUND
SUN HUNG KAI INVESTMENT SERVICES LTD-CUSTOMERS A/C 6,986,181 B-share 6,986,181
CHINA CONSTRUCTION BANK－PENGHUA VALUE ADVANCED
6,933,828 A-share 6,933,828
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 concert among the above-mentioned
shareholders:
GD MIDEA HOLDING CO., LTD. and TITONI INVESTMENTS DEVELOPMENT LTD. are parties
acting in concert.
3. Controlling shareholder and actual controller
(1)Change of the controlling shareholder and actual controller
□Applicable √Inapplicable
(2)Particulars about the controlling shareholder and actual controller
Is there a new actual controller?
□ Yes √ No □Inapplicable
Name of the actual controller He Xiangjian
Type of the actual controller Individual
Particulars:
① About the controlling shareholder
Company Name: GD Midea Holding Co., Ltd.
Legal Representative: Fang Hongbo
Registered Capital: RMB 3,384,347,650
Business Scope: Production, manufacture and selling of household appliances, TV sets, communication
equipments and spare parts thereof; technical consulting services for the aforesaid products; manufacture
of moulds and production equipments; hotel management; advertisement agency services; marketing
services; hardware, electrical appliances and accessories; electronic products; metal materials;
construction materials; chemicals (excluding hazardous chemicals); machines; general merchandise;
export of products and relevant technologies owned by the company and its subsidiaries; production and
processing; plastic products; import of R&D raw and auxiliary materials, machines, instruments and
meters, spare parts and relevant technologies; processing of imported materials and three types of
processing plus compensation trades (The aforesaid businesses are operated in accordance with the
Document [99] Wai-Jing-Mao-Zheng-Shen-Han-Zi No.528 and include no businesses for which a license
is needed for operation.)
② Actual controller
Name: He Xiangjian
Nationality: the People’s Republic of China (with no rights of residence in other countries or regions)
Mr. He Xiangjian has been the Chairman of the Board in Midea Group over the past five years.
3) The ownership and controlling relationship between the actual controller of the Company and the
Company is detailed as follows:
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
He Xiangjian
94.55%
Midea Investment & Holding Co., Ltd.
70%
59.85% 30%
Midea Group Co., Ltd. Kailian Industrial Development Co., Ltd.
41.17% 1.66%
0.11%
GD Midea Holding Co., Ltd.
100%
Midea Holding（BVI）Ltd.
100%
Titoni Investments Development Ltd.
4.88% 35.20%
Wuxi Little Swan Company Limited
(4)The actual controller controls the Company via trust or other ways of asset management.
□Applicable √Inapplicable
4. Other corporate shareholders with a shareholding over 10%
□Applicable √Inapplicable
(IV)Convertible corporate bonds
□Applicable √Inapplicable
V. Directors, Supervisors and Senior Management
(I)Shareholding changes of directors, supervisors and senior management
Shareh Shareh Shar
olding olding ehol Receives
Share
Sharehol increas decrea ding Includin payment
options Reas
ding at e se at g: from
held at ons
Gen Beginning date of Ending date of the during during the restricte sharehol
Name Position Age the for
der office term office term period-b this this perio d shares der units
period-e chan
egin reporti reporti d-en held or other
nd ge
(share) ng ng d (share) related
(share)
period period (shar units
(share) (share) e)
8
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Chairman 45
Fang Mal Nau
of the 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0 Yes
Hongbo e ght
Board
General 49
Chai Mal Nau
Manager; 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Xinjian e ght
Director
Mal 35 Nau
Li Feide Director 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0 Yes
e ght
Xiao 42
Mal Nau
Minggua Director 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0 Yes
e ght
ng
Liu Mal 34 Nau
Director 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Jufeng e ght
Director; 39
Zhou Fem Nau
Company 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Sixiu ale ght
Secretary
Zhao Independe Mal 60 Nau
21 Aug. 2012 9 Sept. 2014 0 0 0 0 0 0
Shuming nt Director e ght
Ye Independe Mal 65 Nau
21 Aug. 2012 9 Sept. 2014 0 0 0 0 0 0
Yongfu nt Director e ght
Independe Fem 47 Nau
Yu Lihui 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
nt Director ale ght
Zhang 37
Mal Nau
Zhaofen Supervisor 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0 Yes
e ght
g
Jiang Mal 36 Nau
Supervisor 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Huafang e ght
Ye Mal 40 Nau
Supervisor 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Dexin e ght
Hu Mal 55 Nau
Vice GM 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Ziqiang e ght
Yin Mal 44 Nau
Vice GM 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Bitong e ght
Mal 36 Nau
Fu Wei Vice GM 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
e ght
Mao Mal 55 Nau
Vice GM 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
Zhiliang e ght
Fem 35 Nau
Xiao Li CFO 21 Aug. 2012 20 Aug. 2015 0 0 0 0 0 0
ale ght
Li Mal 46 Nau
Director 15 Sept. 2009 21 Aug. 2012 0 0 0 0 0 0 Yes
Jianwei e ght
Wu Mal 40 Nau
Director 15 Sept. 2009 21 Aug. 2012 0 0 0 0 0 0
Ganping e ght
Li Mal 32 Nau
Supervisor 9 Mar. 2011 21 Aug. 2012 0 0 0 0 0 0
Mingde e ght
Total -- -- -- -- -- 0 0 0 0 0 0 -- --
Equity incentives granted to directors, supervisors and senior management during the reporting period
□Applicable √Inapplicable
(II)Post-holding particulars
Post-holding in shareholders units
√Applicable □Inapplicable
Name of the Receives
person holding Name of the shareholder unit Position in the Beginning date of Ending date of
payment from the
any post in any shareholder unit office term office term
shareholder unit?
shareholder
9
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
unit
Chairman of the
Fang Hongbo GD Midea Holding Co., Ltd. Board and 1 Apr. 2010 1 Apr. 2013 Yes
President
Director and Vice
Li Jianwei Midea Group Co., Ltd. 1 Apr. 2000 Yes
President
Vice Chairman of
Li Jianwei GD Midea Holding Co., Ltd. 1 Apr. 2010 1 Apr. 2013 No
the Board
Director and
Li Feide GD Midea Holding Co., Ltd. Secretary to the 1 Apr. 2010 1 Apr. 2013 Yes
Board
Xiao Assistant of
GD Midea Holding Co., Ltd. 1 Nov. 2011 Yes
Mingguang President
Chief of Audit
Zhang
GD Midea Holding Co., Ltd. Supervisory 1 Nov. 2011 Yes
Zhaofeng
Committee
Notes to
post-holding in
Naught
shareholder
units
Post-holding in other units
√Applicable □Inapplicable
Name of the
Receives
person holding Beginning date of Ending date of
Name of other unit Position in other unit payment from
any post in office term office term
other unit?
other units
School of Business of Professor and Ph.D.
Zhao Shuming 1 Oct. 1991 Yes
Nanjing University Candidate Tutor
School of Business of East
Yu Lihui China University of Science Associate professor 1 Jul. 1991 Yes
and Technology
Notes to
post-holding in Naught
other units
(III)Remuneration for directors, supervisors and senior management
Decision-making
procedure for the
The remuneration of directors, supervisors and senior management receiving remuneration from the
remuneration of directors,
Company is decided after the approval of the Board of Directors.
supervisors and senior
management
The remuneration of directors, supervisors and senior management receiving remuneration from the
Company consist of the basic annual salary and performance annual salary. The basic annual salary is
decided according to the duties, risks, pressure and other factors born by the directors, supervisors and
senior management, and it stays unchanged; while the performance annual salary is linked with the
profit completion rate and the appraisal results of target responsibility system of the Company. The
Basis for determining the
remuneration system of the directors, supervisors and senior management of the Company serves for its
remuneration of directors,
operating strategy, which is adjusted according to the changes of operation situation of the Company so
supervisors and senior
as to adapt to the needs of the further development of the Company. The adjustment basis for the
management
remuneration of directors, supervisors and senior management of the Company is as follows: (1) the
increase level of remuneration in the same industry; (2) the inflation level; (3) the earnings of the
Company; (4) the adjustment of organization structure; (5) individual adjustment on positions. The
allowance for independent directors approved by the Board of Directors is RMB 80,000 per year, and
the expenses occurred to execute their responsibilities are born by the Company.
Actual payment of the
remuneration of directors, The basic salary of directors, supervisors and senior management receiving remuneration from the
supervisors and senior Company is paid monthly; the allowance for independent directors is paid quarterly.
management
10
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(IV)Change of directors, supervisors and senior management
Name Position Way of change Date of change Reason for change
Fang Chairman of the Continue to serve Election at expiration of office
21 Aug. 2012
Hongbo Board in the position terms
Chai Director , Continue to serve Election at expiration of office
21 Aug. 2012
Xinjian General Manager in the position terms
Newly serve in the Election at expiration of office
Li Feide Director 21 Aug. 2012
position terms
Xiao Continue to serve Election at expiration of office
Director 21 Aug. 2012
Mingguang in the position terms
Continue to serve Election at expiration of office
Liu Jufeng Director 21 Aug. 2012
in the position terms
Director, Secretary Newly serve in the Election at expiration of office
Zhou Sixiu 21 Aug. 2012
to the Board position terms
Zhao Continue to serve Election at expiration of office
Independent director 21 Aug. 2012
Shuming in the position terms
Continue to serve Election at expiration of office
Ye Yongfu Independent director 21 Aug. 2012
in the position terms
Continue to serve Election at expiration of office
Yu Lihui Independent director 21 Aug. 2012
in the position terms
Chairman of
Zhang Continue to serve Election at expiration of office
Supervisory 21 Aug. 2012
Zhaofeng in the position terms
Committee
Jiang Continue to serve Election at expiration of office
Supervisor 21 Aug. 2012
Huafang in the position terms
Staff Representative Newly serve in the Election at expiration of office
Ye Dexin 21 Aug. 2012
Supervisor position terms
Newly serve in the Election at expiration of office
Hu Ziqiang Vice GM 21 Aug. 2012
position terms
Continue to serve Election at expiration of office
Yin Bitong Vice GM 21 Aug. 2012
in the position terms
Newly serve in the Election at expiration of office
Fu Wei Vice GM 21 Aug. 2012
position terms
Mao Newly serve in the Election at expiration of office
Vice GM 21 Aug. 2012
Zhiliang position terms
Continue to serve Election at expiration of office
Xiao Li CFO 21 Aug. 2012
in the position terms
Election at expiration of office
Li Jianwei Director Leave the position 21 Aug. 2012
terms
Wu Election at expiration of office
Director Leave the position 21 Aug. 2012
Ganping terms
Staff Representative Election at expiration of office
Li Mingde Leave the position 21 Aug. 2012
Supervisor terms
(V)Employees
Number of on-job employees 7,462
Number of retired employees for whom the Company shall bear
646
expenses
Function structure
Type of function Number of personnel
Production 5,497
Sale 896
Technical 710
Financial 87
11
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Administration 272
Level of education
Level of education Number of personnel
Doctor’s degree 5
Master degree 50
University 1,243
Junior college 1,608
High school and below 4,556
Notes to the employee particulars:
The above amounts of staffs of the Company include the total amounts of staffs (including dispatched
staffs) in the Company and the subsidiaries in the scope of consolidated financial statements. However, in
the past years, the amounts of staffs only included the amounts of staffs of the Company (excluding
dispatched staffs); the amounts of staffs from high school and below include 2460 persons from technical
secondary school.
VI. Report of the Board of Directors
(I)Discussion and analysis by the management
In the reporting period, due to the tightening domestic real estate macro-control policy, the fade-out of the
policy of “bringing household appliances to the countryside”, the European debt crisis and other factors,
growth in the washing machine industry as a whole slowed down. In the first half of 2012, taking into
account the market situation, the Company kept to the shift from “market size-guided” to “profit
growth-guided”, simplified and flattened organizational tiers, shut down product subsidiaries, shut down
and combined functional departments and reduced management tiers. Meanwhile, it optimized the
business flowchart and increased the information transmission efficiency. It also adjusted and optimized
the product and customer structures, which improved the gross profit rate and helped the Company keep
the profitability at a certain level while its business size shrank considerably. For Jan.-Jun. 2012, the
Company achieved operating revenue of RMB 3.101 billion, down 54.04% from a year earlier; net profit
of RMB 0.216 billion, representing a year-on-year decrease of 22.87%; and a gross profit rate of 20.88%,
up 404 basic points over the same period of last year.
During the reporting period, the Company focused on the following for transforming its operating mode:
The marketing mode was transformed. During the reporting period, the Company launched a domestic
sale reform, setting up 33 product management centers around the country. Except for a few regions, the
marketing mode in other regions was transformed from the sales subsidiaries acting as agents mode to the
product management centers “direct sale+agent sale” mode. Based on the achievements of integrating
channels and optimizing customer and channel structures in previous years, in this domestic sale reform,
the Company simplified the organizational structure, reduced intermediate links and reduced risks
regarding assets. In terms of export during the reporting period, the Company adjusted the product
marketing structure, increased the product power and deepened cooperation with internationally big
customers, which ensured basic stability in terms of the export size and greatly increased the gross profit
rate of export.
The R&D system was improved. During the reporting period, the Company carried on with the product
life cycle management system, which has been implemented on over 80% of the R&D projects. It also
improved the product design quality and increased the development efficiency. At the same time, the
Company formulated divisional expert management teams to revise component technical standards and
design specifications, carry out various trainings in different divisions and make components more
standardized and universal. Besides, it set up a R&D system guided by innovation, pushed forward the
shift from project managers to product managers, and gave full play to creativity, market sensitivity and
enthusiasm of engineers.
The manufacture efficiency was improved. During the reporting period, the Company focused on making
good use of existing assets and strictly controlled new inputs. It put the equipment asset management
system to use and set up a mechanism and system for equipment asset management. Meanwhile, it carried
forward the application and improvement of the manufacture execution system, implementing real-time
monitoring for abnormalities during the production process and fixing them in time, which effectively
12
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
improved the manufacture capability as a whole.
Quality control was enhanced. In the reporting period, the Company continued to control the product
quality in a strict manner, enhancing QC in terms of the “design and supply quality” and the “manufacture
process”. It improved the new product design quality examination system, examining the design quality in
a strict manner. It also enhanced QC regarding the supply chain. Meanwhile, it enhanced QC during the
production process, increased key QC points and increased CTQ operation testing equipment.
For the second half of the year, the Company will carry on the operating transformation, ensuring the size,
improving earnings and solidifying the foundation. Its main tasks for the second half of the year are as
follows:
The Company will continue to reform the domestic marketing organization, simplify the organization,
increase the efficiency, reduce costs, specify functions of the product management centers and enhance
countermeasures to deal with new changes of domestic marketing channels. Meanwhile, it will enhance
cooperation with overseas strategic customers, make use of the relative advantages in product
development and the production capacity, continue to expand the export proportion of medium and
high-end products and improve export earnings. It will also continue to optimize the production line and
re-adjust the existing product layout. Besides, it will increase input for R&D, especially input for basic
technology research and application, so as to keep increasing its product competitiveness.
Is the Company’s actual business performance 20% lower or higher than any earning forecast or business
plan for the reporting period which has been publicly disclosed earlier?
□ Yes √ No
Analysis to the business and performances of the Company’s main subsidiaries and stock-participating
companies:
Total
Net assets Operating
assets at Net profit
at the end income in
Registered the end of in the
of the the
Name of capital Main Shareholding the reporting
reporting reporting
subsidiary (RMB Ten businesses proportion reporting period
period period
thousand) period (RMB Ten
(RMB Ten (RMB Ten
(RMB Ten thousand)
thousand) thousand)
thousand)
Development
of software
products as
well as the
Wuxi FILIN
USD development
Electronics 73% 28,734.26 20,862.95 9,555.48 621.84
362.4564 and
Co., Ltd
manufacture of
new electronic
components,
etc
Research &
Hefei Royalstar
development,
Washing USD manufacture
Equipment 69.47% 274,068.82 148,640.92 129,426.60 4,092.62
13,552 and sales of
Manufacturing
washing
Co., Ltd.
machines
Research &
Little Swan
development,
(Jingzhou)
manufacture
Sanjin Electric 1,107 100% 19,480.47 1,501.92 11,243.06 315.01
and sales of
Appliances
washing
Co., Ltd.
machines
Wuxi Little Research &
Swan General 2,800 development,
Electrical manufacture 70% 30,847.56 11,881.14 20,891.32 1,245.95
Appliances and sales of
Co., Ltd washing
13
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
machines and
dry-cleaning
machines
All risk factors that might have adverse impact on the Company’s effort to realize its future development
strategy and business goals:
Naught
1. Main business lines and their operating results
(1)Main business lines classified by industries and products
Unit: RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
of operating of gross profit
of operating cost
Industries/product Gross profit revenue rate compared
Operating revenue Operating cost compared with
s rate (%) compared with with the same
the same period
the same period period last year
last year (%)
last year (%) (%)
Industries
Household
2,805,116,121.47 2,213,791,209.14 21.08% -52.45% -54.08% 2.81%
appliance
Products
Washing
2,805,116,121.47 2,213,791,209.14 21.08% -52.45% -54.08% 2.81%
machines
Explanation to the main business performances classified by industries and products:
Naught
Explanation to the reasons for any significant year-on-year change of the gross profit rate:
Naught
(2)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%
Explanation to the main business performances classified by regions:
Naught
Explanation to the main business structure:
Naught
(3)Reasons for significant changes 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. 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.
(4)Reasons for significant changes in profitability of main business (gross profit rate) compared
with that in the last year
□Applicable √Inapplicable
(5)Analysis on reasons of significant changes in profit breakdown compared with the last year
□Applicable √Inapplicable
(6)Business nature, main products/services, net profit and other particulars about subsidiaries which made a
contribution over 10% to the Company’s net profit for the reporting period
□Applicable √Inapplicable
(7) Problems and difficulties encountered in operation
Naught
2. Internal control rules in relation to fair value measurement
□Applicable √Inapplicable
14
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
3. Foreign-currency financial assets and liabilities held
□Applicable √Inapplicable
(II)Investments
1. General utilization of the raised funds
□Applicable √Inapplicable
2. Projects promised to be invested with raised funds
□Applicable √Inapplicable
3. Change of projects invested with raised funds
□Applicable √Inapplicable
4. Significant projects invested with non-raised funds
√Applicable □Inapplicable
Unit: RMB Ten thousand
Disclosure date of the Amount for the
Project name Project progress Project earnings
first announcement project
RMB 193.40 million
was cumulatively input
Investment plans of the Company Unable to measure
18 Mar. 2011 64,870 and the projects that
and its subsidiaries for 2011 separately
haven’t been invested in
are postponed.
RMB 92.17 million was No earnings at the
The new base in Tianjin 26 Apr. 2011 85,000 cumulatively input and beginning phase of the
the project is postponed. project
Total 149,870 -- --
Notes to significant projects invested with non-raised funds
At the beginning of 2011, considering the market demand growth estimate at that time and its limited production capacity, the
Company decided to make an investment of RMB 648.7 million to expand the production capacity of the Jingzhou base and other
bases and make an investment of RMB 850 million to build the Tianjin base. During the implementation process, major market
changes occurred. The overall demand decreased and the growth in the industry slowed down. In face of these changes, the
Company acted quickly to adjust its investment strategy, re-considered some projects and suspended some projects, which avoided
a great deal of resources from being wasted and idle.
(III)Revision of the Board of Directors’ business plan for the second half of the year
□Applicable √Inapplicable
(IV)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
(V)Explanation of the Board of Directors on “Non-standard Auditing Report” issued
by the CPA firm for the reporting period
□Applicable √Inapplicable
(VI)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
(VII)State the discussion results of the Board of Directors on the reasons and influence
of the Company’s accounting policy and estimate alterations or significant accounting
error correction
□Applicable √Inapplicable
(VIII)Formulation and execution of the Company’s cash dividend policy
According to the “several regulations regarding amending the cash dividend policy of listed companies” in
the CSRC Order No. 57, as reviewed and approved at the 27th Session of the 5th Board of Directors and
the 2008 Annual Shareholders’ General Meeting, the Company added an article regarding the cash
dividend ratio in its Articles of Association as follows: “The Company may distribute dividends in cash,
stock or any other way allowed by laws. The Company shall pay attention to rational investment returns
15
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
for investors and maintain consistency and stability in its profit distribution policy. The profit
accumulatively distributed in cash by the Company in the recent three years shall not be less than 30% of
the annual average distributable profit achieved by the Company in the recent three years. If the Company
cannot reach the aforesaid ratio due to some special reasons, the Board of Directors shall give a special
explanation to the Shareholders’ General Meeting.” Taking into account its earnings level and strategic
development needs, the Company attached importance to returns for shareholders, especially cash
dividend returns. The Company distributed a dividend of RMB 1.00 for every 10 shares in 2010 and a
dividend of RMB 2.00 for every 10 shares in 2011.
In Jul. 2012, according to the CSRC Notice on Further Implementing Matters Related to Cash Dividend
Distribution of Listed Companies (Zheng-Jian-Fa [2012] No. 37) and the Notice of CSRC Jiangsu Bureau
on Further Implementing Requirements Related to Cash Dividend Distribution of Listed Companies,
taking into account its actual situation, the Company further specified the dividend-related article in its
Articles of Association, specifying the dividend ratio, decision-making mechanism, etc.. And the said
amendment to the Company’s Articles of Association was reviewed and approved at the 18th Session of
the 6th Board of Directors and later at the First Special Shareholders’ General Meeting for 2012. The
Company will execute the profit distribution policy in strict compliance with the amended Articles of
Association. Independent directors will express their opinion to protect the right of minority shareholders
to fully express their opinion and requirements. In this way, legitimate rights and interests of the
Company’s shareholders, especially its minority shareholders, are safeguarded.
(IX)Pre-plan for profit distribution or turning capital reserve into share capital
□Applicable √Inapplicable
(X)The accumulative retained profit as at the end of 2011 is a positive number but the
Company has not put forward a cash dividend pre-plan.
□Applicable √Inapplicable
(XI)Other matters that need to be disclosed
Naught
(XII)The Company’s liabilities, credit changes and future cash arrangements for
debt-clearing (Only listed companies with convertible corporate bonds are required to
fill the table below.)
□Applicable √Inapplicable
VII. Significant Events
(I)Corporate governance
The Company continuously perfected its corporate governance, set up modern enterprise system and
standardized its operation strictly in accordance with the requirements of relevant laws and rules such as
Company Law, Securities Law and Administrative Rule for Listed Companies issued by CSRC.
In the reporting period:
1. In accordance with CSRC Regulations on Establishing Registration Management System for
Information Insiders, the Company overall revised and supplemented the Registration System for
Information Insiders;
2. The Company promulgated Internal Management System for Entrusted Financial Management to
strengthen and standardize the management on the entrusted financial management business of the
Company and its subsidiaries, so as to effectively control the risks, increase investment income and
protect the interest of the Company and its shareholders;
3. The Company promulgated the Work Plan on Implementation of the Internal Control Rules for 2012,
and strictly implemented the Basic Rules of Enterprise Internal Control and Supporting Guidelines of
Enterprise Internal Control, as well as based on the trial implementation of internal control rules in 2011,
it further improve its work on standardizing internal control in 2012 by including all the subsidiaries into
the scope to implement internal control;
4. The Company prepared Relevant Rules on Stock Trading of Directors, Supervisors and Senior
Management, so as to strengthen the popularization, implementation and training for directors, supervisors
and senior management about insider trading, short-term trading, sensitive period and other laws, and
further prevent the risks of trading against legal regulations.
16
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
5. The Company further standardized the operation of Board of Directors, Supervisory Board and
Shareholders’ General Meeting, increasing the training and popularization for directors, supervisors and
senior executives about relevant laws and rules of securities, so as to enhance their awareness and
responsibility of protecting the interest of the Company and shareholders.
(II)Execution of the plans for profit distribution, turning capital reserve into share
capital or new share issuance which had been made in the previous period and were
carried out in the report period
√Applicable □Inapplicable
The profit distribution plan for 2011 was reviewed and approved at the 2011 Annual Shareholders’
General Meeting held on 19 Apr. 2012. Based on the total 632,487,764 shares as at 31 Dec. 2011, a cash
dividend of RMB 2.00 (tax included) was distributed for every 10 shares to all shareholders. The Board of
Directors disclosed the Announcement of Wuxi Little Swan Co., Ltd. on Implementation of Equity
Distribution for 2011 (Announcement No. 2012-17) on 5 Jun. 2012. For A-share holders, the date of
record was 8 Jun. 2012 and the ex-dividend date was 11 Jun. 2012; for B-share holders, the lasting trading
date was 8 Jun. 2012, the ex-dividend date was 11 Jun. 2012 and the date of record was 13 Jun. 2012. The
profit distribution plan for 2011 was accomplished during the reporting period.
(III) Significant litigations and arbitrations
□Applicable √Inapplicable
The Company was not involved in any significant lawsuit or arbitration during the reporting period.
(IV) Bankruptcy or reorganization events
□Applicable √Inapplicable
(V) Holding equity of other listed companies and joint financial enterprises
1. Securities investment
□Applicable √Inapplicable
Notes of securities investment:
Naught
2. Holding equity of other listed companies
√Applicable □Inapplicable
Initial Proportion in Closing Gain/loss in Change of owners’
investment the company’s carrying the reporting equity during the Accounting
Stock code Stock abbr. Stock source
amount total equity amount (RMB period reporting period title
(RMB Yuan) (%) Yuan) (RMB Yuan) (RMB Yuan)
Available-fo
r-sale Private
400038 HXS 100,300 0.01% 228,144 0 -47,980.8
financial offering
assets
Total 100,300 -- 228,144 0 -47,980.8 -- --
Notes to holding equity of other listed companies:
Naught
3. Holding equity of non-listed financial enterprises
√Applicable □Inapplicable
Name of Proportion Change of
Initial Closing Gain/loss in
the Number of in the owners’ equity
investment carrying the reporting
non-listed shares company’s during the Accounting title Stock source
amount (RMB amount period (RMB
financial held total equity reporting period
Yuan) (RMB Yuan) Yuan)
enterprise (%) (RMB Yuan)
Long-term
Bank of Private
1,100,000 2,202,564 0% 1,210,000 123,405.12 0 equity
Jiangsu offering
investment
Total 1,100,000 2,202,564 -- 0 123,405.12 0 -- --
Notes to holding equity of non-listed financial enterprises
17
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Naught
4. Trading stocks of other listed companies
□Applicable √Inapplicable
Notes to trading stocks of other listed companies:
Naught
(VI) Assets transaction events
1. Purchase of assets
□Applicable √Inapplicable
Notes to purchase of assets:
2. Sale of assets
□Applicable √Inapplicable
Notes to sale of assets:
3. Exchange of assets
□Applicable √Inapplicable
Notes to exchange of assets:
4. Business combination
□Applicable √Inapplicable
5. 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 report period
□Applicable √Inapplicable
(VII) Explanation on shareholding increase scheme during the report period proposed
or implemented by the principal shareholders and act-in-concert persons
√Applicable □Inapplicable
GD Midea Holding Co., Ltd., controlling holder of the Company increased holding of 6,319,556 A-shares
of the Company from 15 Dec. 2011 to 16 Jan. 2012 on Shenzhen Stock Exchange System, which takes 1%
of total shares of the Company. After the increase, GD Midea Holding Co., Ltd. and TITONI held
253,513,285 shares of the Company in total, which is 40.08% of the total shares of the Company.
According to the increase holding plan, GD Midea Holding Co., Ltd.’s increased holding of A-shares
should not excess 2% of total shares of the Company in 12 months from the first increase date.
(VIII) Implementation situation and influence of equity incentive plan of the Company
□Applicable √Inapplicable
(IX) Significant related-party transactions
1. Related-party transactions relevant to routine operation
√ Applicable □ Inapplicable
Conte Pricing Reason for
Type Transact Settlement Influenc Market
nt of principle Proportion significant
of the ion price Transactio method of e on the price
the of the in same difference
related (RMB n amount the profits (RMB
Related party Relationship related related-p kind of between the
-party Ten (RMB Ten related-par of the Ten
-party arty transaction transaction price
transac thousand thousand) ty Compan thousand
transac transacti s (%) and the market
tion ) transaction y )
tion on price
MIDEA Company under
Washi
SCOTT&ENG the control of the
ng Market
LISH controlling Sales 1,505.64 0.49% T/T
machi price
ELECTRONII shareholder of
ne
CS SDN.BHD the Company
Company under Washi
PT.Midea
the control of the Sales ng Market
Planet 719.28 0.23% T/T
controlling machi price
Indonesia
shareholder of ne
18
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
the Company
Company under
Midea Electric Washi
the control of the
Trading ng Market
controlling Sales 58,511.9 18.87% T/T
(Singapore) machi price
shareholder of
Co. Pte. Ltd. ne
the Company
Company under
Hefei Hualing Electri
the control of the
Electric c Market
controlling Sales 436.63 0.14% Notes
Appliances produc price
shareholder of
Co., Ltd. ts
the Company
Company under
the control of the
Hefei Huitong direct relatives of
Materi Market
New Materials ultimate Sales 1,488.3 0.48% Notes
als price
Co., Ltd. controlling
shareholder of
the Company
Company under
Hefei Midea Electri
the control of the
Royalstar c Market
controlling Sales 118.31 0.04% Notes
Refrigerator produc price
shareholder of
Co., Ltd. ts
the Company
Company under
the control of the
Hefei Bainian
direct relatives of
Molding Materi Market
ultimate Sales 2,625.74 0.85% Notes
Technology als price
controlling
Co., Ltd.
shareholder of
the Company
Electri
Little Swan Company under
c
(Jingzhou) the control of the
produc Market
Electric controlling Sales 383.52 0.12% Notes
ts, price
Appliances shareholder of
materi
Co., Ltd. the Company
als
Company under
Hefei Midea
the control of the
Materials Purcha Materi Market
controlling 12,168.85 6.10% Notes
Supply Co., se als price
shareholder of
Ltd.
the Company
Company under
Huaian Weiling the controlling
Electri
Motor shareholder of Purcha Market
c 13,239.58 6.64% Notes
Manufacturing the parent se price
motor
Co., Ltd. company of the
Company
Company under
Receiv
the controlling
Ningbo Annto ing
shareholder of Purcha Market
Logistics Co., labor 2,346.37 1.18% Notes
the parent se price
Ltd. service
company of the
s
Company
Company under
the control of the
Foshan Shunde
direct relatives of
District Bainian Purcha Market
ultimate Mould 22.22 0.01% Notes
Technology se price
controlling
Co., Ltd.
shareholder of
the Company
Little Swan Company under Purcha Materi Market 19.48 0.01% Notes
(Jingzhou) the control of the se als price
19
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Electric controlling
Appliances shareholder of
Co., Ltd. the Company
Company under
the control of the
Hefei Huitong direct relatives of
Purcha Materi Market
New Materials ultimate 2,948.42 1.48% Notes
se als price
Co., Ltd. controlling
shareholder of
the Company
Company under
the control of the
Hefei Bainian
direct relatives of
Molding Purcha Materi Market
ultimate 3,948.13 1.98% Notes
Technology se als price
controlling
Co., Ltd.
shareholder of
the Company
Total -- -- -- -- -- --
Details of large amount of sales returns Naught
Necessity and continuity of related-party
The above related-party transactions are good for balancing the production capacity of the
transaction as well as reason of choosing the
Company, ensuring the quality of products, decreasing production costs and realizing the
related party (but not other transaction parties) to
rational allocation of resources, which have their necessity.
conduct the said transaction
The above related-party transactions are in line with the principles of fair, just and open,
Impacts of related-party transaction on without any harm to the interest of the Company, but have active influence on the
independency of the Company Company’s financial situation and operating results during the reporting period and the
future. So they won’t affect the independency of the Company.
Dependant degree of the Company on related
The Company’s main business won’t form significant dependency on related parties due to
party and relevant solutions for the dependence (if
such kind of transactions.
any)
As for the prediction on the total amount of During the reporting period, the actual amount of related-party sales accounted for 44% of
routine related-party transactions to be occurred the total annual predicted amount of routine related-party transactions; the actual amount of
in the reporting period by relevant types, the related-party purchases accounted for 16% of the total annual predicted amount of routine
actual performance in the reporting period related-party transactions.
Explanation on related-party transaction Naught
Related-party transactions relevant to routine operation
Selling products and providing labor services to Purchasing products and receiving labor services
related parties from related parties
Related party Transaction amount
Proportion in same kind of Transaction amount Proportion in same kind of
(RMB Ten
transactions (%) (RMB Ten thousand) transactions (%)
thousand)
Hefei Midea Royalstar
118.31 0.04%
Refrigerator Co., Ltd.
Little Swan (Jingzhou) Electric
383.52 0.12% 19.48 0.01%
Appliances Co., Ltd.
Hefei Hualing Electric Appliances
436.63 0.14%
Co., Ltd.
PT.Midea Planet Indonesia 719.28 0.23%
Hefei Huitong New Materials Co.,
1,488.3 0.48% 2,948.42 1.48%
Ltd.
MIDEA SCOTT&ENGLISH
1,505.64 0.49%
ELECTRONIICS SDN.BHD
Hefei Bainian Molding
2,625.74 0.85% 3,948.13 1.98%
Technology Co., Ltd.
Midea Electric Trading
58,511.9 18.87%
(Singapore) Co. Pte. Ltd.
Huaian Weiling Motor 13,239.58 6.64%
20
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Manufacturing Co., Ltd.
Hefei Midea Materials Supply
12,168.85 6.10%
Co., Ltd.
Wuhu Annto Logistics Co., Ltd. 2,346.37 1.18%
Foshan Shunde District Bainian
22.22 0.01%
Technology Co., Ltd.
Total 65,789.33 21.21% 34,693.06 17.39%
Of which: the total amount of related-party transactions of the Company selling products and providing
labor services to the controlling shareholder and subsidiaries during the reporting period stood at RMB
626,752,900.
2. Related-party transactions regarding purchase and sales of assets
□Applicable √Inapplicable
3. Significant related-party transitions with joint investments
□Applicable √Inapplicable
4. Significant credits and liabilities with related parties
□Applicable √Inapplicable
Capital occupation during the report 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 report period
□Applicable √Inapplicable
5. Other significant related-party transactions
(1) The Company convened the 10th Session of the 6th Board of Directors on 14 Dec. 2010 and the 1st
Special Shareholder’s General Meeting 2011 on 7 Jan. 2011, which reviewed and approved the Proposal
on Related Transaction on Trademark Licensing. The Company permitted GD Midea Holding Co., Ltd
and its controlled subsidiaries to use trademark of “小天鹅 LITTLE SWAN and picture” in air
conditioner commodities, with trademark license fees estimated as no more than RMB 20,000,000. GD
Midea Holding Co., Ltd permitted the Company and subsidiaries of the Company to use trademark of
“Midea” in production, sales and ad campaign of washing machines and dryers, with trademark license
fees estimated as no more than RMB 20,000,000. The aforesaid licensing contracts were all contracted
with 0.3% charges of net sales revenue of products with the authorized trademark as trademark license
fees, and the licensing period ranged from 1 Jan. 2011 to 31 Dec. 2013. At the same time, the Company
will renew and sign the Contract on Trademark Licensing with Little Swan (Jingzhou) Electric Appliances
Co., Ltd. As negotiated by both parties, the deadline of licensing period extends from 19 Jun. 2011 to 31
Dec. 2013.
(2) The 2011 Annual Shareholder’s General Meeting was convened on 19 Apr. 2012, at which reviewed
and approved the Proposal on Prediction of the Line of Routine Related Transaction of the Company for
2012.
For details of the routine related transaction, please refer to Note 6 of the financial report.
(X) Significant contracts and execution
1. The trust, contract and lease whose profits reaching more than 10% (including 10%) of the total
profits of the Company in the report period
(1) Status of trust
□Applicable √Inapplicable
(2)Particulars about contracting
□Applicable √Inapplicable
(3)Particulars about leasing
□Applicable √Inapplicable
21
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
2. Guarantees provided by the Company
√Applicable □Inapplicable
Unit: RMB Ten Thousand
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Guarante
Disclosure date of Amount Actual occurrence Actual Execut e for a
Type of Period of
Guaranteed party relevant for date (date of guarantee ed or related
guarantee guarantee
announcement guarantee agreement) amount 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
approved at the end of the reporting period 0 0
the end of the
(A3)
reporting period (A4)
Guarantees provided by the Company for its subsidiaries
Guarante
Disclosure date of Amount Actual occurrence Actual Execut e for a
Type of Period of
Guaranteed party relevant for date (date of guarantee ed or related
guarantee guarantee
announcement guarantee agreement) amount not party or
not
Hefei Royalstar
Washing Equipment Six
2 Mar. 2012 160,000 29 Feb. 2012 10,953 Warranty No No
Manufacturing Co., months
Ltd.
Hefei Royalstar
Washing Equipment Six
2 Mar. 2012 160,000 6 Apr. 2012 1,000 Warranty No No
Manufacturing Co., months
Ltd.
Hefei Royalstar
Washing Equipment Six
2 Mar. 2012 160,000 24 Apr. 2012 3,306 Warranty No No
Manufacturing Co., months
Ltd.
Hefei Royalstar
Washing Equipment Six
2 Mar. 2012 160,000 24 May 2012 6,527 Warranty No No
Manufacturing Co., months
Ltd.
Hefei Royalstar
Washing Equipment Six
2 Mar. 2012 160,000 21 Jun. 2012 6,291 Warranty No No
Manufacturing Co., months
Ltd.
Hefei Royalstar
Washing Equipment Six
2 Mar. 2012 160,000 21 Jun. 2012 8,664 Warranty No No
Manufacturing Co., months
Ltd.
Hefei Royalstar
Washing Equipment Six
2 Mar. 2012 160,000 1 Jun. 2012 1,074 Warranty No No
Manufacturing Co., months
Ltd.
Total actual occurred
Total guarantee line approved for the amount of guarantee
subsidiaries during the reporting period 165,000 for the subsidiaries 37,814
(B1) during the reporting
period (B2)
Total guarantee line that has been approved 165,000 Total actual guarantee 37,814
for the subsidiaries at the end of the balance for the
22
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
reporting period (B3) subsidiaries at the end
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 approved Total actual guarantee
at the end of the reporting period balance at the end of
165,000 37,814
the 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
3. Entrusted financial management
√Applicable □Inapplicable
Unit: RMB Ten Thousand
Go
Withdr Rela
thro
Amount awal ted-
Actual ugh
Recogniti of amoun part
revenue Actual the Rela
Name of on way of principle t of y
Amount Initial date Ending date in the revenue legal tions
trustee remunerat actually impair trans
reportin gained proc hip
ion recovere ment actio
g period edur
d provisi ns or
es or
on not
not
Agreed by
Nau
Bank 176,770 1 Apr. 2012 30 Jun. 2012 negotiatio 176,770 1,151.55 1,151.55 Yes 0 No
ght
n
Total 176,770 -- -- -- 176,770 1,151.55 1,151.55 -- 0 -- --
Total amount of overdue unrecovered principle and revenue
0
(RMB Yuan)
The entrusted financing amounts were all used in cycle within the
Notes of entrusted financial management
approved line.
4. Execution of significant contracts relevant to routine operation
Naught
5. Other significant contracts
□Applicable √Inapplicable
(XI) Explanation on issuing corporate bonds
□Applicable √Inapplicable
(XII) Performance of commitments
1. Commitments made by the Company or shareholders holding over 5% of the Company’s shares
23
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
in the report period, or such commitments carried down into the report period
√Applicable □Inapplicable
Peri
Time of od
Comm Fulfi
making of
Commitment itment Contents llme
commitme com
maker nt
nt mit
ment
In
the
Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea Holding) plans to
proc
Contro sell the Company’s shares released from trading moratorium held by it via the bid trading
Commitment ess
lling system of the Shenzhen Stock Exchange, and Midea Holding decreases over 5% shares 28 Feb.
on share of
shareh within six months since the first reduction of holdings, Midea Holding will disclose the 2008
reform impl
older suggestive announcement on share selling through the Company two trading days before
eme
its first reduction of holdings.
ntati
on
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, In
Contro they will assume liabilities for compensation according to relevant provisions. the
Commitment lling
4. As for the commitment on independence, GD Midea Holding has promised to proc
in the shareh
protect Little Swan’s independence in terms of assets, staff, finance, organization and 1 Dec. ess
acquisition older
business. of
report or the and 2010
5. As for the commitment on related-party deposits and borrowings, up to 8 Apr. impl
report on actual
2010, the Financial Settlement Center of GD Midea Holding had settled all internal eme
equity changes control
deposits and borrowings with Hefei Royalstar Washing Equipment Manufacturing Co., ntati
ler
Ltd.; and GD Midea Holding has promised that there will be no more deposits, on
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
24
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
“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.
Commitments
Naugh Nau
made in an Naught
t ght
asset exchange
Commitments
Naugh
made in share Naught
t
issuance
Other
commitments
Naugh
made to Naught
t
minority
shareholders
Executed
√Yes □No
timely or not?
Detailed
reason for
failing to Inapplicable
execute and
the next plan
Make
commitments
on causing the
problems of
horizontal
√Yes □No
competition
and
related-party
transactions or
not?
Settlement
period of Naught
commitment
When the Company’s controlling shareholder and actual controller remains unchanged, GD Midea Holding, Mr. He
Way of Xiangjian and other subsidiary companies under their control excluding the Company and the Company’s subordinate
settlement 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; when there
25
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
are inevitable related-party transactions or such transaction incurred with rational reasons, 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.
Fulfillment of
Fulfilled
commitment
2. The Company’s assets or projects exist profitable prediction and the report period is in such
prediction period, it states the profits from the assets or projects reaching original prediction and
relevant reasons
□Applicable √Inapplicable
(XIII) 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 9,408
Less: Effects on income tax generating from available-for-sale financial assets -8,467.2 1,411.2
Net amount transferred into profit and loss in the current period that recognized into
other comprehensive income in prior period
Subtotal -47,980.8 7,996.8
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
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
(XIV)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
26
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
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
(XV) Particulars about engagement and disengagement of CPAs firm
Has this semi-annual report been audited?
□Yes √ No □ Inapplicable
Whether changed to engage the CPAs firm?
□Yes √ No □ Inapplicable
(XVI) Particulars about punishment and rectification order received by the Company,
its directors, supervisors, senior executives, shareholders, actual controller and
acquirer
□Applicable √Inapplicable
(XVII) Explanation on other significant events
□Applicable √Inapplicable
(XVIII) Particulars about significant changes in the profitability, asset status and credit
status of the Company’s convertible bonds guarantor
(Only listed companies which issue convertible corporate bonds are required to fill the form below.)
□Applicable √Inapplicable
(XIX) Index for information disclosure
Internet website for disclosing
Newspapers for disclosing
Event Publishing date information and the searching
information and relevant page
approach
Announcement on Shareholding
Increase by Controlling Shareholder Securities Times: D33，Ta Kung Pao
17 Jan. 2012 www.cninfo.com.cn
of Wuxi Little Swan Company B8
Limited
Announcement on Resolutions
Made at the 15th Session of the 6th Securities Times: D24，Ta Kung Pao
2 Mar. 2012 www.cninfo.com.cn
Board of Directors of Wuxi Little B14, B15
Swan Company Limited
Abstract of 2011 Annual Report of Securities Times: D24，Ta Kung Pao
2 Mar. 2012 www.cninfo.com.cn
Wuxi Little Swan Company Limited B14, B16
Announcement on Prediction of the
Line of 2012 Annual Routine Securities Times: D24，Ta Kung Pao
2 Mar. 2012 www.cninfo.com.cn
Related-party Transactions of Wuxi B14, B17
Little Swan Company Limited
Announcement on the Accumulated Securities Times: D24，Ta Kung Pao
Guarantee Line for Controlled 2 Mar. 2012 www.cninfo.com.cn
B14, B18
Subsidiaries Provided by Wuxi
27
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Little Swan Company Limited
Announcement on Carrying Out
Forward Foreign Exchange Securities Times: D24，Ta Kung Pao
2 Mar. 2012 www.cninfo.com.cn
Transactions of Wuxi Little Swan B14, B19
Company Limited
Notice on Convening the 2011
Annual Shareholders’ General Securities Times: D24，Ta Kung Pao
2 Mar. 2012 www.cninfo.com.cn
Meeting of Wuxi Little Swan B14, B20
Company Limited
Announcement on Resolutions
Made at the 13th Session of the 6th Securities Times: D24，Ta Kung Pao
2 Mar. 2012 www.cninfo.com.cn
Supervisory Committee of Wuxi B14, B21
Little Swan Company Limited
Announcement on Correction in
Securities Times: D20，Ta Kung Pao
2011 Annual Report of Wuxi Little 6 Mar. 2012 www.cninfo.com.cn
B5
Swan Company Limited
Announcement on Resolutions
Made at the 16th Session of the 6th Securities Times: B28，Ta Kung Pao
31 Mar. 2012 www.cninfo.com.cn
Board of Directors of Wuxi Little B2
Swan Company Limited
Announcement on Entrusting
Financial Management with Securities Times: B28，Ta Kung Pao
31 Mar. 2012 www.cninfo.com.cn
Self-owned Idle Funds of Wuxi B2
Little Swan Company Limited
Announcement on the Line of 2012
Annual Routine Related-party
Securities Times: B28，Ta Kung Pao
Transactions Newly Increased by 31 Mar. 2012 www.cninfo.com.cn
Subsidiaries of Wuxi Little Swan B2
Company Limited
Announcement on Resolutions
Made at the 14th Session of the 6th Securities Times: B28，Ta Kung Pao
31 Mar. 2012 www.cninfo.com.cn
Supervisory of Wuxi Little Swan B2
Company Limited
Announcement on Adding Special
Proposals and Supplementing
Securities Times: B20，Ta Kung Pao
Notice for 2011 Annual 7 Apr. 2012 www.cninfo.com.cn
Shareholders’ General Meeting of B7
Wuxi Little Swan Company Limited
Announcement on Resolutions
Made at the 2011 Annual Securities Times: D28，Ta Kung Pao
20 Apr. 2012 www.cninfo.com.cn
Shareholders’ General Meeting of B2
Wuxi Little Swan Company Limited
Announcement on Summary of the
Securities Times: C53，Ta Kung Pao
First Quarterly Report for 2012 of 23 Apr. 2012 www.cninfo.com.cn
A18
Wuxi Little Swan Company Limited
Announcement on Implementation
of 2011 Annual Equity Distribution Securities Times: D13，Ta Kung Pao
5 Jun. 2012 www.cninfo.com.cn
of Wuxi Little Swan Company B3
Limited
Suggestive Announcement on
Releasing from Trading Moratorium Securities Times: D20，Ta Kung Pao
4 Jul. 2012 www.cninfo.com.cn
of Wuxi Little Swan Company B10
Limited
Announcement on Resolutions
Made at the 18th Session of the 6th Securities Times: D20，Ta Kung Pao
31 Jul. 2012 www.cninfo.com.cn
Board of Directors of Wuxi Little B7
Swan Company Limited
Notice on Convening the First Securities Times: D20，Ta Kung Pao
Special Shareholders’ General 31 Jul. 2012 www.cninfo.com.cn
B7
Meeting for 2012 of Wuxi Little
28
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Swan Company Limited
Announcement on Resolutions
Made at the 16th Session of the 6th Securities Times: D20，Ta Kung Pao
31 Jul. 2012 www.cninfo.com.cn
Supervisory Committee of Wuxi B7
Little Swan Company Limited
VIII. Financial Report
(I)Audit opinion
Has this semi-annual report been audited?
□Yes √ No □ Inapplicable
(II)Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The monetary unit in the financial statements of the financial report is RMB Yuan if not specified
otherwise.
Monetary unit of notes to financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Co., Ltd.
Unit: RMB Yuan
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
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 15,548,447.5
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 61,849,729.4 112,052,669.26
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 228,144 284,592
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
29
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
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 43,120,404.2 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 7,826,153,706.1 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
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 358,450,431.48 485,754,049.8
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 19,418,640.4 20,152,637.08
Deferred income tax liabilities 19,176.6 671,488.8
Other non-current liabilities 7,318,250 6,621,250
Total non-current liabilities 26,756,067 27,445,375.88
Total liabilities 3,753,408,347.77 5,180,156,445.7
Owners’ equity (or shareholders’ equity)
30
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Paid-up capital (or share capital) 632,487,764 632,487,764
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’)
7,826,153,706.1 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
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
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 358,435,523.7 449,255,444.14
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 228,144 284,592
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
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
31
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
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 7,423,242,322.8
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 753,384,896.6 1,046,275,176.33
Accounts payable 1,754,670,097.35 1,923,823,612.54
Accounts received in advance 230,430,806.6 385,922,579.96
Employee’s compensation payable 23,040,782.47 42,610,721.5
Tax payable -11,156,266.17 54,075,370.51
Interest payable
Dividend payable 3,710,206.21 2,838,070.21
Other accounts payable 181,668,477.24 192,113,998.82
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 2,935,749,000.3 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 19,176.6 427,888.8
Other non-current liabilities 900,000 1,200,000
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) 632,487,764 632,487,764
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 7,423,242,322.8
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
32
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
II. Total operating cost 2,849,301,204.78 6,398,355,750.97
Including: Cost of sales 2,453,880,581.19 5,611,799,841.3
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
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 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) 268,171,299.3 417,740,185.3
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 17,914,056.8 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 17,914,056.8 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 0.00.
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
33
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Distribution expenses 183,560,344.78 318,150,362.73
Administrative expenses 72,560,340.83 153,475,177.1
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 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
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 6,674,075.6
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 -47,980.8 7,996.8
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 3,807,444,181.7 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
34
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
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
Net cash received from disposal of fixed assets, intangible assets
5,409,242.65 18,117,988.9
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 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 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 -678,843,217.7
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 2,247,822,270.5 2,148,607,456.5
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 2,195,939,582.9
35
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Cash paid for goods and services 1,096,066,119.14 2,121,912,978.38
Cash paid to and for employees 137,373,199.9 156,651,462.53
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
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
Net cash received from disposal of fixed assets, intangible assets
5,297,792.57 16,635,964.5
and other long-term assets
Net cash received from disposal of subsidiaries or other business
37,500,000
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 8,434,897.69 100,315,147.5
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
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
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 0 76,635,770.48
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or
118,658,592 60,923,741.32
profit
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 118,658,592 60,923,741.32
Net cash flows from financing activities -118,658,592 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 -451,853,121.3
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
36
WUXI LITTLE SWAN COMPANY LIMITED 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
37
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(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 1,096,109,333.71 249,433,912.28 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)
38
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(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
(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
39
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
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
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
40
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
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
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 1,258,233,360.14 200,239,469.54 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
41
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
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
(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
42
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(III) Company profile
Wuxi Little Swan Company Ltd. (hereinafter referred to as “the Company”) was founded as a oriented-collection
company limited with the approval of Su-Ti-Gai-Sheng (1993) No. 253 document from Economic Reform
Commission of Jiangsu Province. Then the Company issued 70,000,000 shares of B-share and transformed to a
state-collectively–owned enterprise with the approval of (1996) No. 52 document from Jiangsu Jiangsu Province
of the People’s Republic of China (the “PRC”), Zheng-Wei-Fa (1996) No. 14 document from China Securities
Regulatory Commission of the State Council and Shen-Zheng-Ban-Han (1996) No. 4 from Shenzhen Municipal
Securities Regulatory Office. And the total raised fund from this issuance of B-share totaled RMB 310 million,
and the Company was formally listed in Shenzhen Stock Exchange on Jul. 1996 with the short form of stock as
Little Swan B and stock code as 200418.
In Mar. 1997, the Company publicly issued 60,000,000 shares of renminbi ordinary share (including 9,000,000
shares of staff-share) by adopting the way of internet pricing with the approval of Zheng-Jian-Fa-Zi (1997) No. 55
from CSRC. And the total raised fund from this issuance of A-share totaled RMB 720.83 million, and the
Company was formally listed in Shenzhen Stock Exchange in Mar. 1997 with the short form of stock as Little
Swan A and stock code as 000418.
The Company finished the Equity Division Reform Plan on 7 Aug. 2006: the Company’s A-share holders
registered on the changing date of equity ownership gained 2.5 shares of consideration share from un-tradable
shareholders with their every ten shares of tradable A-share. All un-tradable shareholders paid for shares
consideration of shares totaling 18 million, of which they acquired shares’ rights for trading.
The Company’s resolutions of Shareholders’ General Meeting for Y2007: the newly added registered capital was
RMB 182,551,920, adding five shares to every ten shares basing on the total share capital of 365,103,840 shares
at the end of 2007, transferring the public reserves to 182,551,920 shares with par value of RMB 1 per share, thus
the added share capital totaled RMB 182,551,920.
According to the resolutions of the 4th Session of the Sixth Board of Directors and the 1st Provisional Shareholders
General Meeting in 2010, having approved by China Securities Regulatory Commission (SFC license [2010]
1577), the company launched directional add-issuance of 84,832,004 A shares to buy 69.47% of the shares of
Hefei Royalstar Washing Machine Manufacture Co., Ltd from its shareholder Midea Electric Appliances Co., Ltd.
Par value per share is RMB 1, and the issue price is RMB8.63 per share. This add-issuance increased the share
capital by RMB 84,832,004. As of 31 Dec. 2011, registered capital of the company is RMB 632,487,764, among
which the restricted exchange-traded A shares are 225,284,106 shares, accounting for 35.62% of the whole shares;
the unrestricted exchange-traded A shares are 216,167,786 shares, accounting for 34.18%; the restricted
exchange-traded B shares are 30,851,714 shares, accounting for 4.88% of the whole shares; and the unrestricted
exchange-traded B shares are 160,184,158 shares, account for 25.33% of the whole shares.
Registered Address: No. 18, Changjiang South Road, National High-tech Industrial Development Zone, Wuxi
Office Address: No. 18, Changjiang South Road, Wuxi, Jiangsu Province
Structure of the company: Share-holding Company
The Company belongs to household appliances so the main business scope is as follows: manufacture and sales as
well as after-sale service of household appliances, industrial ceramics, environmental dry-cleaning equipment,
cleaning mechanical equipment, subsequent finishing equipment and accessory; cleaning service; machinery
processing; import and export business of “Little Swan” or agent products and technologies (excluding the
products or technology restricted to operate, export or import in China); technical service for household
appliances; contracting foreign engineering in international bidding (operate with effective certificate)
Parent company: GD MIDEA HOLDING CO.,LTD.
Ultimate controller: Mr. He Xiangjian
The financial statements were approved and authorized for issue by the board of directors on the date of 23 Aug.
2012.
(Ⅳ) Main accounting policies, accounting estimates and corrections of prior accounting errors
43
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
1. Preparation basis of the financial statements
The company recognizes and measures transactions occurred according to Chinese Accounting Standards – Basic
standard and other related accounting standards, prepares the financial statements based on accrual accounting and
the underlying assumption of going concern.
2. Statement of compliance with Enterprise accounting standards
The financial statements of the company comply with the requirements of Accounting Standards; the company's
financial position, operating results, cash flows and other relevant information are truly and completely disclosed
in the financial statements.
3. Accounting period
The company's accounting year is from 1st January to 31st December for each calendar year.
4. Recording currency
The recording currency of the company is Renminbi
Recording currency of overseas subsidiaries:
The recording currency of overseas subsidiaries is US Dollar
5. Accounting processing method of business combination under the same control and not under the same
control
(1) The business combinations which are under the same control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the
basis of their carrying amount in the combined party on the combining date. As for the balance between the
carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration
paid by it (or the total par value of the shares issued), the additional paid-in capital shall be adjusted. If the
additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.
(2) The business combinations which are not under the same control
The acquirer shall recognize the initial cost of combination under the following principles:
a) When business combination is achieved through a single exchange transaction, the cost of a business
combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree; b)For the business
combination involved more than one exchange transaction, the cost of the combination is the aggregate cost of the
individual transactions; All direct expenses related to the combination paid by the acquirer, including the
auditor fee, evaluation expense, legal service expense, etc will be recorded into the profit and loss of
the current period.
The acquirer shall recognize the difference that the combination costs are over the fair value of the identifiable net
assets obtained from acquiree as goodwill; if the combination costs are less than the fair value of the identifiable
net assets obtained from acquiree, the acquirer shall reexamine the measurement of the fair values of the
identifiable assets, liabilities and contingent liabilities obtained from the acquiree as well as the combination costs;
and then after the reexamination, the result is still the same, the difference shall be recorded in the profit and loss
of the current period.
44
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
6. Preparation method of consolidated financial statements
(1) Preparation methods for consolidated financial statements
The combination scope of the consolidated financial statement will be determined on the basis of the actual
control.
The consolidated financial statements will be subject to the No. 33 Enterprise Accounting Standards
–Consolidated Financial Statement. In preparing the consolidated financial statements, all key accounts and
transactions between the company and subsidiaries, subsidiaries and subsidiaries will be offset. The net assets of
merged subsidiaries that are attributable to the minority of shareholder equities will be separately listed in the
shareholder equities of consolidated financial statements
In case the accounting policies and accounting periods of subsidiaries differ from those of parent company, the
financial statements of subsidiaries will be adjusted.
For those subsidiary acquired not under the same control, the Company has made relevant adjustment in the
subsidiary’ financial statement according to the fair value of identifiable net assets; for those subsidiary acquired
under the same control, when preparing the consolidated financial statements, the reporting subject after
combination is considered to operate since the ultimate controller carried out control, and adjusted the opening
balance of consolidated balance sheet as well as the relevant items in the consolidated statements.
(2) As for the event about purchasing and then selling (or selling and then purchasing) equities of the same
subsidiary, the Company shall disclose relevant accounting treatment methods.
Naught
7. Recognition criterion of cash and cash equivalent
For the purposes of the cash flow statement, cash refers to all cash in hand and all deposits which are readily
available for payment. Cash equivalents refer to short-term, highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Foreign currency transactions and translations
(1) Foreign currency
All foreign currency transactions during the period have been translated in to RMB at the spot exchange rate
issued by The People’s Bank of China on the transaction date. The foreign currency conversions and any
transactions involved foreign currency conversions have been translated in to RMB at the actually used exchange
rate during the transaction process.
On the balance sheet date, the company treats the foreign currency monetary items and foreign currency
non-monetary items according to the following provisions:
A. The foreign currency monetary assets and liabilities items have been translated at the spot exchange rate issued
by The People’s Bank of China on the balance sheet date. The exchange difference arising from the difference
between the spot exchange rate on the balance sheet date and the spot exchange rate at the time of initial
recognition shall be recorded in the exchange difference in the current period. Of which, the exchange difference
arising from those foreign currency borrowings specifically for the construction of fixed assets shall be treated by
the principle for capitalization of borrowing cost; and the exchange difference happened during the handling
period shall be recorded as handling charges; other cost shall be recorded as current financial expenses.
B. A foreign currency non-monetary item measured at the historical costs shall still be translated at the spot
exchange rate by The People’s Bank of China on the transaction date, of which the amount of functional currency
shall not be changed; the foreign currency non-monetary items measured at their fair values have been translated
at the spot exchange rate issued by The People’s Bank of China on the recognition date for the fair value, the
exchange difference thereupon shall be considered as changes in fair value, and recorded into gains and losses of
the current period.
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheet about the overseas businesses of the company have been
translated at the spot exchange rate on the balance sheet date. Among the owner’s equity items, except for the
items as “undistributed profits”, other items have been translated at the spot exchange rate at the time when they
are incurred. The income and expense items in the profit statement have been translated at an exchange rate which
is approximate to the spot exchange rate of the transaction date. The differences arising from the translation of
foreign currency financial statements in compliance with the aforesaid items have been presented separately under
the owner’s equities of the balance sheets. Foreign currency cash flows and the cash flows of foreign subsidiaries
have been translated at an exchange rate which is approximate to the spot exchange rate at the time when the cash
flows incurred. The differences arising from fluctuations in exchange have been presented separately in the
statement of cash flows.
9. Financial instruments
(1) Classification of financial assets
Based on the investment purpose and economic essence, the company classifies the financial assets into the
following four categories: transactional financial assets, financial assets available for sale, account receivables and
held-to-maturity investments.
(2) Recognition basis and measurements for financial instruments
Transactional financial assets are measured at fair value with variations of fair value accounted into current
income account; financial assets available for sale are measured at fair value with the variations accounted into
shareholders' equity; account receivables and held-to-maturity investments are measured at the post-amortization
costs.
The company has divided its financial liabilities into one category measured at fair value with variations
accounted into current profit and loss and another category measured at the post-amortization costs.
(3) Recognition and Accounting Method for Transfer of Financial Assets
The term "transfer of a financial asset" refers to the company’s (the transferor's) transferring or delivering a
financial asset to a party other than the issuer of the financial asset (the transferee). Transfer of a financial asset
could be the whole asset or part of it. It includes the following two cases:
1. The Company transfers the right to another party for receiving the cash flow of the financial asset; and;
2. The Company transfers the financial asset to another party, but maintains the right to receive the cash flow of
the financial asset and undertakes the obligation to pay the cash flow it receives to the final recipient.
Where the Company has transferred nearly all of the risks and rewards related to the ownership of the financial
asset or part of this asset to the transferee, it shall stop recognizing the financial asset or part of this asset. The
difference arising from the sum of consideration received from the transfer and the book value of this asset should
be accounted into the profit and loss. If it retained nearly all of the risks and rewards related to the ownership of
the financial asset, it shall not stop recognizing all or part of the financial asset, and the consideration received
shall be recorded as the financial liability.
Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of a
financial asset, but it does not give up its control over the financial asset, it shall, according to the extent of its
continuous involvement in the transferred financial asset, recognize the related financial asset and recognize the
relevant liability accordingly.
(4) Recognition Conditions for Termination of Financial Liabilities
Where a financial asset satisfies any of the following requirements, the recognition of it shall be terminated:
Where the contractual rights for collecting the cash flow of the said financial asset are terminated; or
Where the said financial asset has been transferred and meets the conditions for recognizing the termination of
financial assets as provided for in Accounting Standards for Enterprises No. 23 - Transfer of Financial Assets.
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the
financial liability be terminated in all or partly.
(5) Recognition of Financial Assets and Financial Liabilities
In the active market, the quoted prices of the Company for the financial assets it holds or the financial liabilities it
plans to assume shall be the present actual offer; where there is no available offer or charge for a financial asset or
financial liability, , the enterprise shall adopt the market quoted price of the latest transaction or market quoted
price after adjustment in latest transaction to determine the fair value of the said financial asset or financial
liability, except for there is clear evidence proving that the said market quoted price is not fair value.
Where there is no active market for a financial instrument, the enterprise concerned shall adopt value appraisal
techniques to determine its fair value. The value appraisal techniques mainly include the prices adopted by the
parties, who are familiar with the condition, in the latest market transaction upon their own free will, the current
fair value obtained by referring to other financial instruments of the same essential nature.
(6) Withdrawal of Impairment Provision for Financial Assets (excluding Accounts Receivable)
The Company shall carry out an inspection, on the balance sheet day, on the carrying amount of the financial
assets other than transactional financial assets. Where there is any objective evidence proving that such financial
asset has been impaired, an impairment provision shall be made. An impairment test shall be made on the
financial assets with significant single amounts. If any objective evidence shows that it has been impaired, the
impairment-related losses shall be recognized and shall be recorded into the profits and losses of the current
period. With regard to the financial assets with insignificant single amounts, an independent impairment test may
be carried out, or they may be included in a combination of financial assets with similar credit risk features so as
to carry out an impairment-related test.
The expression "objective evidence proving that the financial asset has been impaired" refers to the actually
incurred events which, after the financial asset is initially recognized, have an impact on the predicted future cash
flow of the said financial asset that can be reliably measured by the enterprise.
The objective evidences that can prove the impairment of a financial asset shall include:
1. A serious financial difficulty occurs to the issuer or debtor;
2. The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of
interests or the principal, etc.;
3. The creditor makes any concession to the debtor which is in financial difficulties due to economic or legal
factors, etc.
4. The debtor will probably become bankrupt or carry out other financial reorganizations;
5. The financial asset can no longer continue to be traded in the active market due to serious financial difficulties
of the issuer;
6. It is impossible to identify whether the cash flow of a certain asset within a certain combination of financial
assets has decreased or not. But after making an overall appraisal according to the public data available, it is found
that the predicted future cash flow of the said combination of financial assets has indeed decreased since it was
initially recognized and such decrease can be measured, for example, the ability of the debtor of the said
combination of financial assets worsens gradually, the unemployment rate of the country or region where the
debtor is situated increases, the prices of the region where the guaranty is situated are obviously dropping, or the
industrial sector concerned is in slump, etc.;
7. Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc.
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
wherein the debtor operates its business, which makes the investor of an equity instrument unable to take back its
investment;
8. Where the fair value of the equity instrument investment drops significantly or not contemporarily;
9. Other objective evidences showing the impairment of the financial asset.
Where a financial asset measured on the basis of post-amortization costs is impaired, the impairment losses shall
be the balance between the carrying amount of the said financial asset and the current value of the predicted future
cash flow discounted at the original actual rate.
Where any financial asset measured on the basis of post-amortization costs is recognized as having suffered from
any impairment loss, if there is any objective evidence proving that the value of the said financial asset has been
restored, and it is objectively related to the events that occur after such loss is recognized, the impairment-related
losses as originally recognized shall be reversed and be recorded into the profits and losses of the current period.
However, the reversed carrying amount shall not be any more than the post-amortization costs of the said financial
asset on the day of reverse under the assumption that no provision is made for the impairment.
Where an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of the
fair value of the owner’s equity which was directly included shall be transferred out and recorded into the profits
and losses of the current period.
(7) Notes on Basis of Hold-to-Maturity Investment undue that reclassified into Available-for-Sales
Financial Assets
10. Recognition and Withdrawal Method for Bad-debt Provisions for Accounts Receivable
(1) Provisions for Bad-debt Accounts Receivable with a significant single amount
The accounts receivable whose individual amount accounts
for over 10% (including 10%) of accounts receivable balance
at the end of this period or amount of the individual account
receivable which is greater than RMB 10 millions (and
Definition or amount criteria for an account receivable with a
including 10 millions); the other receivable whose individual
significant single amount
amount accounts for over 10% (including 10%) of other
receivables balance at the end of this period or amount of the
individual other receivable which is greater than RMB 5
millions (and including 5 millions).
For the individually significant receivables, the impairment
test is carried on individually; the Company withdraws
Making individual bad-debt provisions for accounts
provision for impairment loss for the amount which is
receivable with a significant single amount
measured as the difference between the asset's carrying
amount and the present value of estimated future cash flows.
(2) Accounts receivable for which bad-debt provisions are made on the group basis
Group name Withdraw method Basis for recognition of group
Aging group Aging analysis Aging
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Provision rate for Accounts
Aging Provision rate for Other Receivables(%)
Receivable(%)
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Within 1 year (including 1 year) 5% 5%
From 1-2 years 10% 10%
From 2-3 years 20% 20%
Over 3 years 60% 60%
From 3-4 years 60% 60%
From 3-5 years 60% 60%
Over 5 years 100% 100%
In the groups, those adopting balance percentage method to withdraw bad debt provision:
□Applicable √Inapplicable
In the groups, those adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
independently
Reason for bad debt provision:
Insignificant single amount but is of big risk by credit risk
Withdrawal method:
The bad-debt provision is recognized impairment loss and made according to the difference between the present
value of the account’s future cash flows and the account’s carrying amount.
11. Inventory
(1) Category of Inventory
Inventories are those under the Company’s possession for the purpose of selling, in the process of production, or
materials and goods used in production process or providing of services, including raw materials, low-value
consumables, products in process, stock merchandises (finished goods) and consigned goods.
(2) Pricing method for distributed inventories
□First-in first-out method □Weighted average method □Specific identification method √Other
Inventories are measured at cost when procured, including purchase cost, processing cost, and other costs.
Actual costs are recognized at weight average when delivered.
(3) Recognition basis of net realizable value of inventories and withdrawal method for impairment
provision of inventories
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the net
realizable value. At overall verification of inventories at the end of year, when the net realizable value is lower
than the cost, provisions for impairment of inventories shall be drawn. Provisions for impairment of inventories
shall be accounted according to the difference between the cost of individual inventory items and the net
realizable value. Including: for inventories such as finished products, goods or materials which will be directly
sold, in the normal operation, the realizable net value will be the balance of estimated selling price less sales
expenses and relative taxations; For those inventories need further processing, in the normal operation, the
realizable net value will be the balance of estimated sales price less costs to make it finished, less estimated sales
expenses, and less relative taxation. On the balance sheet day, inventories with contract prices will be determined
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
for realizable value separately from those without contract prices. Where certain items of inventory have similar
purposes or end uses and relate to the same product line produced and marketed in the same geographical area,
and therefore cannot be practicably evaluated separately from other items in that product line, costs and net
realizable values of those items may be determined on an aggregate basis. For large quantity and low value items
of inventories, cost and net realizable value are determined based on categories of inventories.
(4) Inventory system of inventories
√ Perpetual inventory system □ Periodic inventory system □ Other
The Company uses perpetual inventory system. Inventories are checked periodically and the gains and losses
from inventory checking are accounted into current gain/loss account.
(5) Amortization method of low-value consumption goods and packages
Low-value consumption goods
Amortization method: one time method
Adopting one time method.
Packages
Amortization method: one time method
Adopting one time method.
12. Long-term equity investment
(1) Recognition for initial cost
The initial cost of the long-term equity investment formed in the merger of the Company shall be recognized in
accordance with the ways of gaining:
① For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the
book value of the owner's equity of the merged enterprise as the initial investment cost of the long-term equity
investment; the difference between the acquisition cost and the initial investment cost of the long-term equity
investment shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained
earnings shall be adjusted.
② For the merger of enterprises not under the same control, the initial cost of long-term equity investment is the
fair value of assets paid, equity bonds issued, or liabilities undertaken by the Company. The identifiable assets and
liabilities undertaken (including contingent liabilities) of merged party shall be measured by the fair value without
considering the amount attributable to minority interest. Where the cost of a business combination exceeds the
acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference shall be recognized as
goodwill. Where the cost of combination is less than the acquirer’s interest in the fair value of the acquiree’s
identifiable net assets, after reassessment, the difference shall be recognized in consolidated income statement.
③ The initial cost of a long-term equity investment obtained by other ways
A. The initial cost of a long-term equity investment obtained by making payment in cash shall be the purchase
cost which is actually paid.
B. The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the
fair value of the equity securities issued.
C. The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment
contract or agreement except the unfair value stipulated in the contract or agreement.
D. Long-term equity investment is acquired by exchange of non-monetary assets, if this transaction has
commercial substance, the fair values of these swap-out assets will be deemed as the initial investment cost of
swap-in long-term equity investment; if the non-currency asset exchange does not have commercial substance, the
carrying amount of these swap-out assets will be deemed as the initial investment cost of swap-in long-term
equity investment.
E. The initial cost of a long-term equity investment obtained by recombination of liabilities shall be recognized as
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
the fair value of the long-tern equity investment.
(2) Subsequent measurement and recognition of gains and losses
1. Adopting cost method for investment in subsidiaries
The subsidiary is the equity investment held by the Company, on which the Company can carry out control. If the
Company holds more than 50% equity of an entity, or the Company holds less than 50% equity but has actual
control on such entity, then the entity can be considered as the subsidiary of the Company.
2. Adopting equity method for investment on joint ventures or associated enterprises
Joint venture is the equity investment held by the Company, which can carry out joint control over an invested
entity with other joint ventures; associated enterprise is the equity investment held by the Company, which can
have significant influence over an invested entity. If the Company held 20% to 50% equity of an entity, and have
not actual control on such entity, or the Company holds less than 20% equity of the entity but have not significant
influence on such entity, then the entity will be the Company’s joint venture or associated enterprise.
The investing enterprise shall, on the ground of the fair value of all identifiable assets of the invested entity when
it obtains the investment, recognize the attributable share of the net profits and losses of the invested entity after it
adjusts the net profits of the invested entity.
If the accounting policies and accounting periods adopted by the invested entity are different from those adopted
by the investing enterprise, an adjustment shall be made to the financial statements of the invested entity in
accordance with the accounting policies and accounting periods of the Company and recognize the investment
profits or losses.
Where any change is made to the owner's equity other than the net profits and losses of the invested entity, the
book value of the long-term equity investment shall be adjusted and be included in the owner's equity.
3. The long-term equity investment existing no control, joint control or significant influence by the Company
The long-term equity investment without quotation in the active market and its fair value can’t be reliably
measured, which shall be measured by cost method.
The long-term equity investment with quotation in the active market or its fair value can be reliably measured,
which is listed under the item of available-for-sale financial assets and measured by fair value, whose change in
fair value shall be recorded into owners’ equity.
(3) Recognition basis of jointly control and significant influence in invested units
Common control to investee is the mutual control of investors over an economic action basing on a contract, only
effective when it is agreed by all of the investors who have the share of control on the financial and business
control power.
Significant influences to investee mean an entity has the power to participate in the decision making of another,
but cannot dominate individually or jointly with other parties.
(4) Impairment test method and withdrawal method for impairment provision
At period-end, if evidence showing that impairment occurred on the long-term equity investment, the recoverable
amount shall be estimated. When the recoverable amount of the long-term equity investment is lower than the
book value, asset impairment provision should be withdrawn in accordance with the difference between the
recoverable amount and the book value is recognized.
As for long-term equity investment without quotation in the active market and its fair value can’t be reliably
measured, the balance of its carrying amount lower than the current value of the future cash flow of similar
financial assets capitalized according to the returns ratio of the market at the same time shall be recognized as
impairment losses and be recorded into the profits and losses of the current period.
Once impairment loss of the long-term equity investment, excluding available-for-sale financial assets, is
recognized, it will not be switched back in following fiscal terms, while the impairment loss of available-for-sale
financial assets can be switched back, while the said impairment provision can be written back through equity
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
accounts.
13. Investment real estate
Investment real estate is measured according to the initial cost. Cost of real estate purchased from outside includes
purchasing price, tax, and other expenses directly related to the real estate; cost of real estate constructed by the
Company itself is constructed by the essential costs to make the real estate usable. Investment properties invested
by investors are booked at the value according to the investment contract, whereas when the contract value is not
fairly acceptable, it will be booked at the fair value.
The company employs the cost mode to make a follow-up measurement on the investment properties, while
employs the straight method to calculate the depreciation and amortization during the estimated useful life. And
the house property is depreciated by 20 years (adopt the lower one between the legal useful life and the predicted
useful life), while the landed property is amortized by 50 years (legal useful life).
The withdrawal method of the impairment provision for investment properties is in accordance with the relevant
withdrawal method of fixed assets.
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life, whose relevant
economic interest is likely to flow into the Company.
(2) Recognition basis and pricing method for fixed assets acquired under finance lease
Where a lease of fixed asset satisfies one or more of the following criteria, it shall be recognized as a finance
lease:
1. The ownership of the leased asset is transferred to the lessee when the term of lease expires;
2. The Company has the option to buy the leased asset at a price which is expected to be far lower than the fair
value of the leased asset at the date when the option becomes exercisable. Thus, on the lease beginning date, it can
be reasonably determined that the option will be exercised;
3. Even if the ownership of the asset is not transferred, the lease term covers the major part of the use life of the
leased asset;
4. In the case of the lessee, the present value of the minimum lease payments on the lease beginning date amounts
to substantially all of the fair value of the leased asset on the lease beginning date;
5. The leased assets are of a specialized nature that only the Company can use them without making major
modifications. For the fixed asset leased by financial lease, on the lease beginning date, the Company shall record
the lower one of the fair value of the leased asset and the present value of the minimum lease payments on the
lease beginning date as the entering value in an account, recognize the amount of the minimum lease payments as
the entering value in an account of long-term account payable, and treat the balance between the recorded amount
of the leased asset and the long-term account payable as unrecognized financing charges. The initial direct costs
such as commissions, attorney's fees and traveling expenses, stamp duties directly attributable to the leased item
incurred during the process of lease negotiating and signing the leasing agreement shall be recorded in the asset
value of the current period. The unrecognized financing charge shall be amortized to each period during the lease
term at the actual rate.
The depreciation method of fixed assets acquired under finance lease is consistent with that for the Company’s
fixed assets. If the Company can reasonably confirm that it will obtain the ownership of leased asset at the end of
lease term, the leased asset shall be depreciated during the useful life of the leased asset. If the Company cannot
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
reasonably confirm that it will obtain the ownership of leased asset at the end of lease term, the leased asset shall
be depreciated during shorter of the useful life of the leased asset and the lease term.
(3) Depreciation method of various fixed assets
Other than fixed assets which have already been provided depreciations in full but still in use, the Company
provides depreciations upon all of the fixed assets. The Company adopted annual depreciation rate method to
withdraw depreciation.
Categories Estimated useful life (years) Residual value (%) Annual depreciation rate (%)
Houses & buildings 30-40 years 5% 2.38-3.17%
Machineries 10-18 years 5% 5.28-9.00%
Electronic equipment 3-8 years 5% 11.88-31.67%
Vehicles 4-12 years 5% 7.92-23.75%
Other equipments 5-8 years 5% 11.88-19%
Fixed assets acquired under
-- -- --
finance lease
Of which: houses & buildings
Machineries
Electronic equipment
Vehicles
Others
(4) Impairment test method and withdrawal method for impairment provision of fixed assets
The Company checks the fixed asset at the period end, if it has the following situations, then the Company shall
check the recoverable amount to judge whether such asset has been impaired. Where its recoverable amount is
lower than its book value, the Company shall, basing on the difference between the recoverable amount and the
relevant book value, make the provision for the impairment of the assets. When withdrawing the impairment
provision for a single asset, and if it is difficult to do so, it shall determine the recoverable amount of the group
assets on the basis of the asset group to which the asset belongs. Once the impairment loss was recognized, it will
not be switched back in coming fiscal terms.
1 The current market price of assets falls, and its decrease is obviously higher than the expected drop over time or
due to the normal use;
2 The assets have become obsolete or have been damaged substantially;
3 The expected usage mode of an asset has significant adverse change, such as the asset becomes idle, or the
Company plans to discontinue or to reorganize the business of the asset, or dispose of an asset before the
previously expected date, etc., which cause adverse impact on the Company;
4 The economic, technological or legal environment in which the enterprise operates, or the market where the
assets is situated will have any significant change in the current period or in the near future, which will cause
adverse impact on the enterprise;
5 The market interest rate or any other market investment return rate at the same period has risen in the current
period, and thus the discount rate of the enterprise for calculating the expected future cash flow of the assets will
be affected, which will result in great decline of the recoverable amount of the assets;
6 Any evidence in the internal report of the enterprise shows that the economic performance of the assets have
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
been or will be lower than the expected performance, for example, the net cash flow created by assets or the
operating profit (or loss) realized is lower (higher) than the excepted amount, etc.; and
7 Other evidence indicates that the impairment of assets has probably occurred.
(5) Other notes
15. Construction in Progress
(1) Categories of construction in process
(2) Standards and time of transferring construction in process into fixed asset
Construction in progress is transferred to fixed assets by project budget, construction cost or actual project cost
when the project is substantially ready for its intended use, and made provision for depreciation from the next
month. Then the Company shall adjustment on the difference caused by the original value of fixed assets after
finishing the final account.
(3) Impairment test method and withdrawal method for impairment provision of construction in process
At the end of the year, the Company shall assess the overall construction in progress, if there is evidence
providing that the value of project was impaired, the Company shall estate the recoverable amount, and make the
provision for the impairment loss in accordance with the balance of the project’s recoverable amount lower than
its book value. Once any loss of asset impairment is recognized, it shall not be switched back in the future
accounting periods.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on borrowings,
ancillary expenses, and exchange balance on foreign currency borrowings. The Company’s borrowing costs,
caused by occupying the special borrowings or general borrowings to gain the fixed assets, investment properties,
and inventories that need one year or more than one year’s acquisition or construction, shall be capitalized, and
recorded in the cost of relevant assets. Other borrowing costs shall be recognized as expense upon their
occurrence, and recorded into current profits and losses. The relevant borrowing expenses start to be capitalized
when all of the followings are satisfied:
1 The capital expenditures have incurred;
2 The borrowing costs have incurred;
3 The acquisition and construction activities that are necessary to bring the asset to its expected usable condition
have commenced.
(2) Capitalization period of borrowing costs
The borrowing costs caused by acquiring or constructing fixed assets, investment properties and inventories,
which meet the above capitalization conditions and happened before the assets reaching expected useful status or
available-for-sale status, shall be recorded into costs of assets.
(3) Period for suspending capitalization of borrowing costs
Capitalization of borrowing costs shall be suspended during periods in which the acquisition or construction is
interrupted abnormally, and the interruption period is three months or longer. These borrowing costs shall be
recognized directly in profit or loss during the current period until the acquisition or construction activities resume
again; Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed is
substantially ready for its intended use. Subsequent borrowing costs shall be directly recorded into current finance
expense upon occurrence.
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(4) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring & constructing or producing a
qualifying asset, the to-be-capitalized amount of interests shall be determined in light of the actual interests
incurred of the specially borrowed loan at the present period minus the income of interests earned on the unused
borrowing loans as a deposit in the bank or as a temporary investment.
To the extent that funds are borrowed generally and used for the purpose of acquiring & constructing or producing
a qualifying asset, the Company shall calculate and determine the to-be-capitalized amount of interest from the
general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used. The
capitalization rate shall be calculated and determined in light of the weighted average interest rate of the general
borrowing.
17. Biological assets
Naught
18. Oil gas assets
Naught
19. Intangible assets
(1) Pricing method of intangible assets
The intangible assets refer to the land-use right, patent, non-patent technology and software.
Intangible assets purchased are booked at the actual cost to purchase and relative expenses.
Intangible assets inputted by investors are booked at the contract or agreement price, but if the contract or
agreement price is not fairly acceptable, it will be booked at fair value.
Intangible assets is acquired by exchange of non-monetary assets, if this transaction has commercial substance,
the fair values of these swap-out assets will be deemed as the initial investment cost of intangible assets; if the
non-currency asset exchange does not have commercial substance, the carrying amount of these swap-out assets
will be deemed as the initial investment cost of intangible assets.
Intangible asset is acquired by debt reorganization, which shall be recognized by the fair value.
Expenditures for the self-researched and developed intangible asset incurred during its research phase shall be
recognized as current profits and losses upon its occurrence. Expenditures incurred during the development phase
shall be recognized as an intangible asset if, and only if, the Company can demonstrate all of the following:
1 It is feasible technically to finish intangible assets for use or sale;
2 It is intended to finish and use or sell the intangible assets;
3 There is a potential market for the products manufactured by applying the intangible assets or there is a potential
market for the intangible assets itself
4 It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the
support of sufficient technologies, financial resources and other resources;
5 The development expenditures of the intangible assets can be reliably measured.
6The use of the intangible products cycle is more than 1 year.
(2) Estimated useful life of intangible assets with limited useful life
The land-use rights is amortized straightly to the useful life, from the starting date when accept the land-use rights;
The patent, non-patent technology and other intangible assets are amortized straightly to the lest number among
the expected useful life, contract years and the effective year of the law. The amortization assigned to the related
assets and current profit and loss.
55
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Item Estimated useful life Basis
(3) Judgment basis of intangible assets with uncertain useful life
The profitable period is uncertain.
(4) Withdrawal of impairment provision of intangible assets
The Company shall carry out impairment test on intangible assets without certain useful life, such as trade mark,
at year-end. And the Company shall estimate its recoverable amount and make the provision for impairment loss
of such intangible asset by the balance of the recoverable amount lower than its book value.
The Company shall check the other intangible assets at the year-end, where there is any evidence indicating a
possible impairment of assets, the Company shall estimate the recoverable amount, and make provision for
impairment losses of such intangible asset in accordance with the balance of the recoverable amount lower than
the book value. Once intangible asset impairment losses are recognized, they will not be written back in
successive fiscal periods.
1. It has been replaced by other new technologies, and significantly decreased its ability to create economic
interests for the company;
2. The price fell sharply in current period, and is not expected to increase in its remaining amortization period;
3. Over the time limit of legal protection, but still has some use-value；
4. Other facts that prove the assets actually impaired.
(5) Criteria of dividing the research phase and development phase of internal R&D project
The term “research” refers to undertaking of collecting relevant materials, conducting market research on the basis
of planned investigation, which means the research project has received approval from the Board of Directors or
relevant management level.
The term "development" refers to the application of research achievements and other knowledge to a certain plan
or design, prior to the commercial production or use, so as to produce any new material, device or product, or
substantially improved material, device and product.
(6) Calculation of the expenditures of internal R&D project
R&D expenditure refer to various expense directly arising from R&D of products (including research of
fundermental projects). They are:
1) New product design expense, new art processing expense and technical books material fees and translation of
materials that relevant to R&D activities.
2) Expenditure on materials, fuel and power that directly comsume on R&D activities.
3) Wages, salary, bonus, allowance and subsidy that directly arising from personnel that conducting R&D
activities (excluding social insurance fees, housing fund and labour cost for out-contract R&D personnel).
4) Depreciation charges or rent charges for appliances and equipments specified on R&D activities.
5) Amortization charges on intangible assets such as software, patent fees, non-patent technology etc. that
specified on R&D activities.
6) Expense specified on modules for intermidiate experience and product trial-manufacture, development of art
equipments and manufacture fees.
7) Expense on proving, review and verification of R&D achievements.
8) Out-sourcing expenditure that satisfied the above seven scopes.
9) Equipment adjustment expense and test charges on appliances for intermidiate experience and product
trial-manufacture, acquisition fees for samples and general test method and test fees for tria-manufacture products.
56
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
10) Expenditure on maintainence and repair of fixed assets that applying for R&D activities.
11) Meeting charges, travel fees, office fees, business fees, fees on trains of R&D personnel, professional
consultancy charges, training fees, insurance charges on R&D of high-tech., etc..that directly relevant to R&D
projects.
12) Expenditure on appraisal of achievements, application charges, register charges, agent fees, etc. of
interllectual property.
13) Other expenses arising from R&D process. Including expense on purchase of samples and components,
expense on drawing of plank, internal distribution of materials, technology guidance, industrial design and so on.
All of the above mentioned expense items accouting by specific items on R&D item.
20. Amortization method of long-term deferred expenses
The Company recognizes all expenses which have occurred during the period but shall be amortized beyond one
year (excluding one year), including expenses of molds and technical guide, etc. The Company amortizes
long-term deferred expenses using straight-line method according to relevant beneficial periods or its usage life if
there are, otherwise, amortizes in five years.
21. Assets transfer with repurchasing conditions
Naught
22. Estimated liabilities
(1) Criteria of estimated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied,
they are recognized as estimated liability in the balance sheet:
1. This responsibility is a current responsibility undertaken by the Company;
2. Execution of this responsibility may cause financial benefit outflow from the Company;
3. Amount of the liability can be reliably measured.
(2) Measurement of estimated liabilities
Estimated liabilities are initially measured at the best estimation on the expenses to exercise the current
responsibility, and with considerations to the relative risks, uncertainty, and periodic value of currency. When the
periodic value of currency is with major influence, then the best estimation will be determined at the discount of
future cash outflow. The book value of estimated liability is revised at balance sheet day, and adjustment will be
made to reflect current best estimation.
23. Share-based payment and equity instruments
Naught
(1) Categories of share-based payment
Naught
(2) Recognition method of fair value of equity instruments
Naught
(3) Recognition basis of the best estimate of the vested equity instruments
Naught
(4) Accounting treatment relevant to implement, revise and terminate share-based payment plan
Naught
24. Repurchase of shares of the Company
Naught
57
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
25. Revenue
(1) Criteria for recognition time of revenue from sale of goods
When all of the following conditions are satisfied, the sales of goods are recognized as sales income according to
the contract amount received or receivable from the buyer:
1.Main risks and rewards attached to the ownership of the goods have been transferred to the buyer;
2 No succeeding power of administration or effective control is reserved which are usually attached to ownership;
3 Amount received can be reliably measured;
4 Related financial benefit may inflow to the Company;
5 Relative costs, occurred or will occur, can be reliably measured;
6 When collection of contract payment is by differed way, and practically with financing characters, sales income
shall be recognized at the fair value of the receivable contract amount.
(2) Recognition basis of revenue from transferring use rights of assets
Income is recognized when the financial benefit in connection with the demising of asset using rights was
received and the amount can be reliably measured.
(3) Recognition basis and method for the schedule of contracted project when recognizing the revenue from
providing labour services and construction contract by percentage-of-completion method
The Company measures the completion progress (percentage-of-completion) in accordance with the proportion of
the costs incurred against the estimated total costs.
26. Government grants
(1) Types
1. The government subsidies pertinent to income
2. The government subsidies pertinent to assets
(2) Accounting treatment method
The government subsidies pertinent to income, if used to to retrieve expense or loss of the Company in further
period, the government grants are recognized as deferred income, and shall be recorded in profit and loss when
that expense or loss occurred. To retrieve expense or loss of the Company in current period, the government
grants shall be recorded directly in current profit and loss.
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within
the useful lives of the relevant assets, and included in the current profits and losses. But the government subsidies
measured at their nominal amounts shall be directly included in the current profits and losses.
27. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
On the balance sheet date, if enough evidences prove that the taxable income amounts that maybe probably
obtained in the future periods may be used to deduct the deductible temporary differences, they will be confirmed
as the deferred income tax assets that have not been confirmed in the previous accounting periods.
(2) Recognition basis of deferred income tax liabilities
If taxable temporary differences would increase taxable income tax and income tax payable when it was written in,
which leads to the outflow of the Company’s financial profit, it shall be recognized as differed income liabilities
when is constitutes responsibility of taxes payable in occurrence period.
58
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
28. Operating lease and finance lease
(1) Accounting treatments of operating lease
Naught
(2) Accounting treatments of finance lease
Naught
29. Assets held for sale
(1) Recognition criteria of available-for-sale assets
Naught
(2) Accounting treatments of the assets held for sale
Naught
30. Capitalization of assets business
Naught
31. Hedging accounting
The term " hedging" refers to one or more hedging instruments which are designated by the company for avoiding
the risks of foreign exchange, interest rate, commodity price, stock price, credit and etc., and which is expected to
make the changes in fair value or cash flow of hedging instrument(s) to offset all or part of the changes in the fair
value or cash flow of the hedged item.
The "hedged items" refer to items which make the company faced with changes in fair value or cash flow and are
designated as the hedged objectives.
For a hedging which satisfies all the following conditions, the company will deal with it through the hedging
accounting method.
(1) At the commencement of the hedging, the company shall specify the hedging relationship formally and
prepare a formal written document on the hedging relationship, risk management objectives and the strategies of
hedging.
(2) The hedging expectation is highly efficient and meets the risk management strategy, which is confirmed for the
hedging relationship by the company at the very beginning.
(3) For a cash flow hedging of forecast transaction, the forecast transaction shall be likely to occur and shall make
the company faced to the risk of changes in cash flow, which will ultimately affect the profits and losses.
(4) The effectiveness of hedging can be reliably measured.
(5) The hedging is highly effective in the accounting period in which the hedging relationship is designated.
32. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the reporting period?
□Yes √No □Inapplicable
(1) Change of accounting policies
Were the main accounting policies changed during the reporting period?
□Yes √No □Inapplicable
(2) Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
□Yes √No □Inapplicable
59
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
33. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
□Yes √No □Inapplicable
(1) Retrospective restatement method
Was any previous accounting errors adopting retrospective restatement method discovered in the reporting period?
□Yes √No □Inapplicable
(2) Prospective application method
Was any previous accounting errors adopting prospective application method discovered in the reporting period?
□Yes √No □Inapplicable
34. Other main accounting policies, accounting estimates as well as compilation method of financial
statements
Naught
(Ⅴ) Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
Balance of output tax of taxation revenue after
VAT 17%
deducting input tax.
Business tax
Urban maintenance and
Taxation revenue 5%
construction tax
VAT Payable circulating tax amount 7%
Corporate income tax Payable income tax amount 25% or 15%
Education Surcharge Payable circulating tax amount 4% or 5%
Flood Control Security Fund Operating revenue 0.1% or 0.06%
Levee fee Circulating tax amount 2%
The income tax rates adopted by each subsidiary and branch factory
Naught
2. Tax preference and official documents
With the certification of hi-tech enterprise of the Company and its subsidiary, Wuxi Little Swan GE Co., Ltd. and
Wuxi Filin Electronics Co., Ltd. was expired after 3-years term, their relevant certification of review were in
process. According to Su-Gao-Qi-Xie [2012] No. 15 document and Su-Gao-Qi-Xie [2012] No. 15 document of
Work and Coordinated Team on Management of Certifying High-tech Enterprise of Jiangsu Province, review of
the said companies have been approved. According to Circular of the State Administration of Taxation on the
Issues concerning the Administration of Enterprise Income Tax Deduction and Exemption (Guo-Shui-Fa [2008]
No. 111 document) and Circular of the State Administration of Taxation on the Issues concerning Hi-tech
Enterprise Paying Corporate Income Tax in 2008 (Guo-Shui-Han [2008] No. 985), the Company and its subsidiary,
Hefei Royalstar Water Industry Facilities Co., Ltd., and Wuxi Little Swan GE Co., Ltd. as well as Wuxi Filin
Electronics Co., Ltd. were approved to enjoy income tax rate 15%.
60
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
3. Other explanation
Naught
(Ⅵ) Business combination and consolidated financial statements
General instruction of business combination and consolidated financial statements: Naught
61
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
Balance of parent
The The Includ
company’s equity after
Actual amount proporti proporti ed in
Other Deductible deducting the difference
Registered Business Registered Currenc Business of investments on of on of consol Minority
Subsidiaries Type essential minority that loss of minority
place nature capital y scope at the holding voting idated interest
investment interests interests exceed equity
period-end shares( rights(% statem
obtained by minority
%) ) ent
shareholders
Wuxi Little Swan Manufacture
Holding
General Electric of washing
subsidiar Wuxi Production 28,000,000.00 CNY 19,600,000 70% 70% Yes 29,938,800
Appliances Co. , machine and
ies
Ltd. dryers
Wuxi Little Swan
Development
Driving & Control Holding
& research of
Development subsidiar Wuxi R&D 5,000,000.00 CNY driving & 4,500,000 97.3% 100% Yes 313,400
control
Technology Co. , ies
technology
Ltd.
Manufacture
Wuxi Filin Holding of computer
control
Electronics Co. , subsidiar Wuxi Production 3,624,600.00 USD 19,620,000 73% 73% Yes 56,330,000
components
Ltd. ies for washing
machine
Manufacture
Wuxi Little Swan Holding and sale of
Washing Machine subsidiar Wuxi Production 49,679,500.00 CNY commercial 37,259,600 99.91% 99.91% Yes -37,968,700
Co. , Ltd. ies washing
machine ,
62
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
dryers and
spare parts
Wuxi Meitian Holding
Sales of
Refrigerator subsidiar Wuxi Trading 4,000,000.00 USD 24,840,000 75% 75% Yes -28,467,700
refrigerator
Market Co., Ltd. ies
Jiangsu Little
Holding Sales of
Swan Marketing household
subsidiar Wuxi Trading 419,500,000.00 CNY 417,550,000 99.64% 99.64% Yes -65,580,500
and Sales Co. , electrical
ies appliances
Ltd.
Import &
Wuxi Little Swan Holding
Import & export of
Import & Export subsidiar Wuxi 65,000,000.00 CNY electric 57,500,000 88.46% 88.46% Yes -15,037,400
Export machine
Co. , Ltd ies products
Wholly- Manufacture
MIDAQI. Little
owned of washing
Swan Prima Malaysia Sales 1,000,000.00 USD machine and 4,224,700 51% 51% No
subsidiar air
Industries
y conditioners
Little Swan Wholly-
International owned Investmen
Singapore 5,000,000.00 USD Investment 5,000,000 100% 100% Yes
(Singapore) Co., subsidiar t
Ltd. y
Wholly-
Manufacture
Tianjin Little owned
Tianjin Production 200,000,000.00 CNY of washing 200,000,000 100% 100% Yes
Swan Co., Ltd. subsidiar
machine
y
Other notes to subsidiaries obtained by establishment and investment:
Naught
63
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(2) Subsidiaries obtained by business combination under same control
Unit: RMB Yuan
Incl
The The uded Balance of parent company’s
Actual
proporti proporti in equity after deducting the
amount of Deductible
Register Business Registered Currenc Business Other essential on of on of cons Minority difference that loss of
Subsidiaries Type investments minority
ed place nature capital y scope investment holding voting olida interest minority interests exceed
at the interests
shares( rights(% ted equity obtained by minority
period-end
%) ) state shareholders
ment
Little Swan
Wholly-
(Jing Zhou) Manufacture
owned
Electronic Jingzhou Production 11,070,200.00 CNY of washing 11,869,400 100% 100% Yes
subsidiar
Appliances machines
y
Co., Ltd.
Hefei
Royalstar
Washing Holding Manufacture
Hefei Production 135,520,000.00 USD of washing 830,962,300 69.47% 69.47% Yes 451,382,600
Machine subsidiar machines
Manufacture ies
Co., Ltd.
Hefei Midea
Washing Holding Manufacture
Machine subsidiar Hefei Production 20,000,000.00 CNY of washing 20,000,000 62.523% 90% Yes 2,037,200
Manufacture ies machines
Co., Ltd.
Other notes to subsidiaries obtained by business combination under same control:
(3) Subsidiaries obtained by business combination not under same control
Unit: RMB Yuan
64
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
The
The
Actual propor
proporti Balance of parent company’s equity after
Regist Busine Regist Busine amount of tion of Included in
Subsidia Curren Other essential on of Minority Deductible deducting the difference that loss of
Type ered ss ered ss investment holdin consolidated
ries cy investment voting interest minority interests minority interests exceed equity obtained by
place nature capital scope s at the g statement
rights(% minority shareholders
period-end shares(
)
%)
Other notes to subsidiaries obtained by business combination not under same control:
65
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
2. Special purpose entities or operating entities with control right formed by entrusted operation or lease
□Applicable √Inapplicable
Other explanation on special purpose entities or operating entities with control right formed by entrusted operation or lease:
3. Explanation on changes in consolidated scope
Explanation on changes in consolidated scope:
MIDAQI. Little Swan Prima Industries has been stopped operation for year, and the closing procedure has started;
the Company has made full provision for impairment on long-term investment and it hasn’t been combined in the
consolidated scope yet.
□Applicable √Inapplicable
4. Subsidiaries that newly combined into consolidation scope in the reporting period
Naught
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that newly
included in the consolidated scope
Unit: RMB Yuan
Name Closing net assets Net profit in current period
The subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that not
longer included in the consolidated scope
Unit: RMB Yuan
Net profit from year-begin to
Name Net asset at the disposal date
disposal date
Other notes to changes in consolidated scope:
5. Business combination under same control during the reporting period
Unit: RMB Yuan
Cash flow arising
Judgment basis of The consolidated The consolidated
from operating
business Actual controller of income from net profit from
The combined party activities between
combination under the same control period-begin to period-begin to
period-begin and
the same control combination date combination date
combination date
Other notes to business combination under same control:
6. Business combination not under same control during the reporting period
Unit: RMB Yuan
The combined party Amount of goodwill Calculation method of goodwill
Other notes to business combination not under same control:
7. Subsidiaries reduced by selling equities without control right during the reporting period
66
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Name of subsidiary Disposal date Recognition method of gains and losses
Other notes to subsidiaries reduced by selling equities without control right during the reporting period:
8. The counter purchases in the reporting period
Calculation method of goodwill
Judgment basis of counter Recognition method of recognized or included into
The backdoor party
purchase combination costs current gains and losses in the
combination
Other notes to counter purchases:
9. Mergers in the reporting period
Unit: RMB Yuan
Type of merger Main assets merged in Main liabilities merged in
Mergers under the same control Item Amount Item Amount
Mergers not under the same control Item Amount Item Amount
Other notes to mergers:
10. Exchange rates of major items in financial statements for foreign entities
Assets and liabilities on the Balance Sheet shall adopted the spotted exchange rate on the Balance Sheet Day.
Except for retained profit item on shareholders’ equity, other items adopt the exchange rate on occurrence when
calculated.
(Ⅶ) Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Closing balance Opening balance
Item Amount in foreign Exchan Amount in Exchange
Amount in RMB Amount in RMB
currency ge rate foreign currency rate
Cash: -- -- 210,062.94 -- -- 184,735.57
RMB -- -- 210,062.94 -- -- 184,735.57
Bank deposit: -- -- 2,987,371,791.42 -- -- 2,279,468,567.00
RMB -- -- 2,612,078,927.97 -- -- 2,050,330,126.87
USD 56,129,241.39 6.3249 355,011,838.84 34,251,584.61 6.3009 215,815,809.48
EUR 2,570,943.51 7.871 20,235,896.37 1,632,175.27 8.1625 13,322,630.65
JPY 566,596.02 0.0796 45,128.24
Other monetary funds: -- -- 133,367,765.79 -- -- 135,797,048.67
RMB -- -- 132,711,936.09 -- -- 134,175,616.33
67
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
USD 103,690.13 6.3249 655,829.70 257,333.45 6.3009 1,621,432.34
Total -- -- 3,120,949,620.15 -- -- 2,415,450,351.24
Special explanation shall be made for the accounts limited by being mortgaged, pledged or frozen, deposited overseas or with
potential collecting risks:
2. Trading financial assets
(1) Trading financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Trading bonds investment
Trading equity instruments investment
The financial assets which are measured at their fair
values and the variation of which is recorded into the
profits and losses of the current period
Derivative financial assets 0.00 4,292,300.00
Hedging instruments
Others
Total 4,292,300.00
(2) Trading financial assets with realizable limit
Unit: RMB Yuan
Trading restriction or other significant limits in
Item Closing balance
realization
(3) Hedging instruments and notes to relevant hedging transaction
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance bill 1,001,881,578.18 2,757,923,958.94
Total 1,001,881,578.18 2,757,923,958.94
(2) Notes receivable pledged at period-end
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- --
Notes: Naught
68
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or
agreement, and undue notes endorsed to other parties at the end of the period
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Total -- -- 50,000,000.00 --
Notes: Naught
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Jiangxi Gannan Midea
Refrigerating Equipment 28 Mar. 2012 28 Sep. 2012 10,000,000.00
Marketing Co., Ltd.
Changzhou Midea
Refrigeration Product 29 Mar. 2012 29 Sep. 2012 10,000,000.00
Marketing Co., Ltd.
Yichang Midea
Refrigeration Product 29 Mar. 2012 29 Sep. 2012 10,000,000.00
Marketing Co., Ltd.
Yichang Midea
Refrigeration Product 29 Mar. 2012 29 Sep. 2012 10,000,000.00
Marketing Co., Ltd.
Guizhou Midea
Refrigeration Product 28 Mar. 2012 28 Sep. 2012 10,000,000.00
Marketing Co., Ltd.
Total -- -- 50,000,000.00 --
Notes:
Notes of bank acceptance bill that already discounted or pledged.
Naught
4. Dividends receivable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Dividends receivable
aging less than one year
Of which:
Dividends receivable
aging over one year
69
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Of which: -- -- -- --
Total
Note: Naught
5. Interest receivable
(1) Interest receivable
Unit: RMB Yuan
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Total
(2) Overdue interest
Unit: RMB Yuan
Borrowing entity Overdue days (day) Amount of overdue interest
Total --
(3) Notes to interest receivable
6. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proporti Proporti Proporti Proport
Amount Amount Amount Amount
on (%) on (%) on (%) ion (%)
Accounts receivable
with significant single
amount and individually 0.00 0% 0.00 0% 0.00 0% 0.00 0%
withdrawn bad debt
provision
Accounts receivable for which bad debt provisions are made on the group basis
Aging group 1,049,004,026.09 99.89% 53,313,570.48 5.08% 979,012,513.46 99.88% 50,073,451.81 5.11%
Subtotal of group 1,049,004,026.09 99.89% 53,313,570.48 5.08% 979,012,513.46 99.88% 50,073,451.81 5.11%
Accounts receivable
with insignificant single
amount and individually 1,201,107.52 0.11% 1,005,985.33 83.75% 1,201,107.52 0.12% 751,107.72 62.53%
withdrawn bad debt
provision
70
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Total 1,050,205,133.61 -- 54,319,555.80 -- 980,213,620.98 -- 50,824,559.53 --
Notes to category of accounts receivable:
Naught
Accounts receivable with significant single amount and individually withdrawn bad debt provision
□Applicable √Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging Book balance Provision for bad Book balance Provision for bad
Amount Proportion debts Amount Proportion debts
Within 1 year
Including: -- -- -- -- -- --
1,038,276,282.84 98.98% 51,913,814.14 960,988,170.25 98.16% 48,049,408.52
Subtotal of within
1,038,276,282.84 98.98% 51,913,814.14 960,988,170.25 98.16% 48,049,408.52
1 year
1-2 years 9,857,995.48 0.94% 985,799.55 17,498,321.16 1.79% 1,749,832.12
2-3 years 348,800.54 0.03% 69,760.11 103,505.15 0.01% 20,701.03
Over 3 years 441,876.39 0.04% 265,125.83 422,516.90 0.04% 253,510.14
3 to 4 years
4 to 5 years
Over 5 years 79,070.85 0.01% 79,070.85 0%
Total 1,049,004,026.09 -- 53,313,570.48 979,012,513.46 -- 50,073,451.81
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√Applicable □Inapplicable
Unit: RMB Yuan
Content of accounts
Book balance Bad debt provision Withdrawal proportion Reason for withdrawal
receivable
Accounts receivable with
insignificant single
Of comparatively high
amount and individually 1,201,107.52 1,005,985.33 83.75%
credit risk
withdrawn bad debt
provision
71
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Total 1,201,107.52 1,005,985.33 83.75% --
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
Recognition basis of Reversed or collected
Content of accounts Reversed or collected Reversed or collected
original bad debt amount of the accrued
receivable reason amount
provision bad debt provision
Total -- -- 0.00 --
The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount but
individually made impairment test at the end of reporting period:
Withdrawing
Content Book balance Bad debt amount Reason
proportion(%)
Total -- --
Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics:
(3) The write-off accounts receivable
Unit: RMB Yuan
Whether arising
Nature of accounts
Name of entity Write-off time Write-off amount Write-off reason from related party
receivable
transaction or not?
Total -- -- -- --
Notes to write off of accounts receivable:
(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting rights of
the Company
□Applicable √Inapplicable
(5) Information of top 5 accounts receivable:
Unit: RMB Yuan
The relationship
Name of entity Amount Aging Proportion
with the Company
Related
Midea Electric Trading (Singapore) Co. Pte. Ltd. 222,437,144.08 Within 1 year 21.18%
relationship
Non-related
GEA PRODUCTS 135,859,162.81 Within 1 year 12.94%
relationship
Non-related
Kronen Internacional S.A. 55,474,778.83 Within 1 year 5.28%
relationship
Beijing Midea Refrigeration Product Marketing Non-related
53,687,063.05 Within 1 year 5.11%
Co., Ltd. relationship
72
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Non-related
Nanjing Purchase of Suning Appliance Co., Ltd. 48,022,000.19 Within 1 year 4.57%
relationship
Total -- 515,480,148.96 -- 49.08%
(6) The amounts due from related parties
Unit: RMB Yuan
The relationship with the
Name of entity Amount Proportion
Company
Total --
(7) Information of accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount of termination
recognition
Total
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount of
assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Period-end
Assets:
Subtotal of assets
Liabilities:
Subtotal of liabilities
7. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Category Book balance Book balance
debts debts
Proporti Proporti Proporti Proporti
Amount Amount Amount Amount
on (%) on (%) on (%) on (%)
Other accounts receivable that is
individually significant and
0.00 0% 0.00 0% 0.00 0% 0.00 0%
provisions for bad debts
individually
Other accounts receivable that provisions for bad debts by group
73
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Aging group 21,479,278.55 98.98% 2,592,244.94 12.07% 18,288,490.78 98.81% 2,740,043.28 14.98%
Subtotal of group 21,479,278.55 98.98% 2,592,244.94 12.07% 18,288,490.78 98.81% 2,740,043.28 14.98%
Other accounts receivable that is
individually insignificant but
221,666.34 1.02% 221,666.34 100% 221,066.34 1.19% 221,066.34 100%
provisions for bad debts
individually
Total 21,700,944.89 -- 2,813,911.28 -- 18,509,557.12 -- 2,961,109.62 --
Notes for categories of other accounts receivable:
Naught
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□Applicable √Inapplicable
In the group, other accounts receivable that provisions for bad debts by aging analysis:
√Applicable □Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Book balance Book balance
Aging Provision for bad Provision for bad
Proporti Proporti
Amount debts Amount debts
on on
Within 1 year
Including:
Within 1 year 12,874,553.35 59.94% 643,727.67 12,046,610.07 65.87% 606,818.71
Subtotal of within 1 year 12,874,553.35 59.94% 643,727.67 12,046,610.07 65.87% 606,818.71
1-2 years 5,992,988.52 27.9% 599,298.85 2,968,361.21 16.23% 292,347.92
2-3 years 573,308.98 2.67% 114,661.80 336,837.63 1.84% 67,367.53
Over 3 years 2,009,677.70 9.36% 1,205,806.62 2,907,931.87 15.9% 1,744,759.12
3 to 4 years
4 to 5 years
Over 5 years 28,750.00 0.13% 28,750.00 28,750.00 0.16% 28,750.00
Total 21,479,278.55 -- 2,592,244.94 18,288,490.78 -- 2,740,043.28
In the group, other accounts receivable that provisions for bad debts by balance percentage:
□Applicable √Inapplicable
In the group, other accounts receivable that provisions for bad debts by other methods:
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
□Applicable √Inapplicable
(2) Information of other accounts receivable reversed or recovered in the reporting period
Unit: RMB Yuan
74
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Reason for reversed or Basis for determination Accrued amount before Amount of reversed or
Other accounts receivable
recovered of bad debts provision reversal or recovery recovered
Total -- -- 0.00 --
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable:
Content Book balance Provision for bad debts Withdrawal percentage Reason
Total -- --
Notes of individually insignificant but was of big risk after grouped by credit risk other accounts receivable:
(3) Information of other accounts receivable written off in the reporting period
Unit: RMB Yuan
Whether arising from
Nature of other
Name of company Write off date Write off amount Write off reason related party
accounts receivable
transactions or not
Total -- -- 0.00 -- --
Notes of written-off of other accounts receivable:
Naught
(4) Other accounts receivable is due from shareholders with more than 5% (including 5%) of the voting
shares of the Company
□Applicable √Inapplicable
(5) Nature or details of other significant accounts receivable
Unit: RMB Yuan
Nature or details of the
Name of entity Amount Proportion of the total (%)
amount
Total 0.00 -- 0%
Notes:
Naught
(6) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship
Proportion of the
Name of entity with the Amount Aging
total (%)
Company
Not related
Wuxi Little Swan Ceramic Co., Ltd. 2,386,444.38 4-5 years 11%
relationship
Financial Treasury Payment Centre of Hefei High-tech Not related 1,000,000.00 2-3 years 4.61%
75
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Technology Industrial Development Zone relationship
Industrial and Commercial Bank of China Limited, Beijing Not related
900,000.00 2-3 years 4.15%
Branch Assets Custody Account relationship
Not related
Wuxi Costume of PRC 711,000.00 1-2 years 3.28%
relationship
Not related
Wuxi China Resources Natural Gas Co., Ltd. 639,184.85 Within 1 year 2.95%
relationship
Total -- 5,636,629.23 -- 25.97%
(7) Information of the amounts due from related parties
Unit: RMB Yuan
Name of entity Relationship with the Company Amount Proportion
Total -- 0.00 0%
(8) Information of other accounts receivable that terminated recognition
Unit: RMB Yuan
Gains or loses related to the termination of
Item Amount of termination
recognition
Total 0.00 0.00
(9) If securitization is carried out on other accounts receivable as the underlying assets, please list amount
of assets and liabilities arising from further involvement
Unit: RMB Yuan
Item Closing balance
Assets:
Subtotal of assets
Liabilities:
Subtotal of liabilities 0.00
8. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year 131,577,849.92 60.91% 240,224,053.71 96.07%
76
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
1 year to 2
83,083,172.76 38.46% 9,071,326.54 3.63%
years
2 years to 3
596,557.19 0.28% 756,600.00 0.3%
years
Over 3 years 754,040.00 0.35%
Total 216,011,619.87 -- 250,051,980.25 --
Notes of aging of prepayment:
(2) Information of the top 5 prepayment
Unit: RMB Yuan
Relationship with Reason for
Name of entity Amount Aging
the Company unsettled
Administration Committee of Non-related-party Advance land
74,258,965.00 18 Apr. 2011
DevelopmentZone of Jingzhou supplier payment
Yanshan Operating Dept. of Sinopec Non-related-party Advance land
38,307,132.28 13 Jun. 2012
Chemical Sales Company Limited supplier payment
Beijing Zhongtian Riyue Advertising Co., Non-related-party Not service was
34,618,278.00 9 Mar. 2012
Ltd. supplier provided
East China Chemical Sales of PetroChina Non-related-party Advance material
10,674,000.00 20 Jun. 2012
Company Limited supplier payment
Non-related-party Advance material
Sumitomo Chemical Asia Pte Ltd 5,145,536.14 30 Jun. 2012
supplier payment
Total -- 163,003,911.42 -- --
Notes of important companies of prepayment: Naught
(3) Information about amount due from shareholders with more than 5% (including 5%) of the voting
shares of the Company in prepayment
□Applicable √Inapplicable
(4) Notes of prepayment
Naught
9. Inventory
(1) Category
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment of Impairment of
Book balance Book value Book balance Book value
inventories inventories
Raw materials 68,730,776.63 990,222.29 67,740,554.34 67,170,191.52 4,846,662.22 62,323,529.30
Construction
18,722,292.43 18,722,292.43 22,713,702.97 763,423.76 21,950,279.21
contract assets
77
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Inventory goods 558,730,522.53 22,374,449.21 536,356,073.32 746,889,129.82 22,993,564.94 723,895,564.88
Turnover material
Consumable
biological assets
Consign for
1,231,355.59 1,231,355.59
processing materials
Total 646,183,591.59 23,364,671.50 622,818,920.09 838,004,379.90 28,603,650.92 809,400,728.98
(2) Impairment of inventories
Unit: RMB Yuan
Decrease
Category Opening balance Increase Closing balance
Reversal Written off
Raw materials 4,846,662.22 3,856,439.93 990,222.29
Construction contract
763,423.76 763,423.76
assets
Inventory goods 22,993,564.94 619,115.73 22,374,449.21
Turnover material
Consumable biological
assets
Total 28,603,650.92 0.00 619,115.73 4,619,863.69 23,364,671.50
(3) Details of provision for falling price of inventories
Proportion of reversal of
Basis on provision for falling price
Item Reasons for reversal provision for impairment of
of inventories
inventories to closing balance
Realizable net value is lower than
Raw materials
cost of inventory
Realizable net value is lower than Effect on write-off of inventory value
0.09%
Inventory goods cost of inventory was disappeared
Construction contract Realizable net value is lower than
assets cost of inventory
Realizable net value is lower than
Turnover material
cost of inventory
Consumable Realizable net value is lower than
biological assets cost of inventory
Notes of inventory: naught
10. Other current assets
Unit: RMB Yuan
78
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Item Closing balance Opening balance
Deferred expense-module 61,849,729.40 112,052,669.26
Total 61,849,729.40 112,052,669.26
Notes of other current assets: naught
11. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Available-for-sale bonds
Available-for-sale equity instruments 228,144.00 284,592.00
Others
Total 228,144.00 284,592.00
In the reporting period, the Company reclassified the held-to-maturity investment into available-for-sale financial assets, a total of
RMB0.00 was reclassified, which takes 0% of total matured investment before reclassification.
Notes of available-for-sale financial assets: Naught
(2) Long-term liability investment of available-for-sale financial assets
Unit: RMB Yuan
Accrued
Initial Interest in the accounts
Opening Closing
Item Category Book balance investment Matured date reporting receivable or
balance balance
cost period received
interest
Total -- -- 0.00 -- 0.00 0.00 0.00 0.00
Notes of long-term liability investment of available-for-sale financial assets:
12. Held-to-maturity investment
(1) Information
Unit: RMB Yuan
Item Closing book balance Opening book balance
Total
Notes of held-to-maturity investment: Naught
(2) Information of held-to-maturity investment sold in the reporting period but was not matured
Unit: RMB Yuan
Item Amount Percentage of the investment amount before sales
Total --
79
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Notes of undue held-to-maturity investment sold in the reporting period:
13. Long-term accounts receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Financing leases
Including: unrealized financing
gains
Installment sales
Installment offering service
Others
Total
80
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
14. Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Percen
tage of
Voting Total
holdin
Registrat Legal percentage operation Net profit of
Nature of Nature of Registered g Total closing Net closing Name of
Name of investee ion represen of the Total closing assets revenue of the the reporting
enterprises business capital shares liabilities assets investee
place tative Company reporting period
of the
in investee period
Comp
any
I. Joint ventures
II. Associated enterprises
Attend Logistics Limited Guangzh Ye
Logistics 10,000,000.00 CNY 20% 20% 24,663,800.00 7,265,103.69 17,398,696.31 3,877,666.11 254,437.56
Co., Ltd. company ou Weilong
Notes if significant differences exist between the important accounting policies and accounting estimations of joint ventures, associated enterprises and the Company: naught
15. Long-term equity investment
(1) List of long-term equity investment
Unit: RMB Yuan
Explanation for Withdrawn
Share holding Voting indifferences between impairment Cash bonus in
Accounting Initial Opening Increase/decrea Impairmen
Investee Closing balance percentage in percentage in the share holding provision in the reporting
method investment cost balance se t provision
investee investee percentage and voting the reporting period
percentage in investee period
Attend
Logistics Co., Equity method 2,000,000.00 3,428,851.75 50,887.51 3,479,739.26 20% 20%
Ltd.
81
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Hengtai
Insurance
Cost method 1,000,000.00 1,000,000.00 1,000,000.00 3.33% 3.33%
Brokers Co.,
Ltd
Suzhou
People's Cost method 150,000.00 150,000.00 150,000.00 40,000.00
Shopping Mall
Bank of
Cost method 1,100,000.00 1,210,000.00 1,210,000.00 123,405.12
Jiangsu
Inner Mongolia
Baotou
Cost method 50,000.00 50,000.00 50,000.00
Department
Store Co., Ltd.
(Malaysia)
Midaqi Little USD4,224,744. 4,224,744.
Cost method 51% 51%
Swan Prima 00 00
Industries
4,224,744.
Total -- 8,524,744.00 5,838,851.75 50,887.51 5,889,739.26 -- -- -- 0.00 163,405.12
00
(2) Information of the limitation on the capability to transfer capital to investee
Unit: RMB Yuan
Item that with limitation on the capability to transfer capital to investee Reason for limitation Investment losses unrecognized in current period
Notes of long-term equity investment: Naught
82
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
16. Investment property
(1) Investment property calculated by cost
√Applicable □Inapplicable
Unit: RMB Yuan
Decrease in
Increase in the Closing book
Item Opening book balance the reporting
reporting period balance
period
I. Total original book value 6,948,011.11 0.00 0.00 6,948,011.11
1. Houses and buildings 6,948,011.11 6,948,011.11
2. Land use right
II. Accumulated depreciation and amortization 1,705,063.63 96,678.75 0.00 1,801,742.38
1. Houses and buildings 1,705,063.63 96,678.75 1,801,742.38
2. Land use right
III. Book value of investment property 5,242,947.48 0.00 0.00 5,146,268.73
1. Houses and buildings 5,242,947.48 5,146,268.73
2. Land use right
IV. Accumulated impairment provision of
0.00 0.00 0.00 0.00
investment property
1. Houses and buildings
2. Land use right
V. Book value of investment property 5,242,947.48 -96,678.75 0.00 5,146,268.73
1. Houses and buildings 5,242,947.48 -96,678.75 5,146,268.73
2. Land use right
Unit: RMB Yuan
Reporting period
Depreciation and amortization amount 96,678.75
Impairment provision of investment property 0.00
(2) Investment property calculated by fair value
□Applicable √Inapplicable
Notes of investment property that altered calculated mode and failed to accomplish certification of property, and notes of reason that
the fail accomplish and estimated accomplish date
17. Fixed assets
(1) Fixed assets details
Unit: RMB Yuan
Opening book Decrease in the Closing book
Item Increase in the reporting period
balance reporting period balance
I. Total original book value 1,773,575,819.51 29,366,021.58 13,583,462.73 1,789,358,378.36
83
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Including: Property and
815,492,151.98 7,356,898.48 1,438,375.11 821,410,675.35
building
Machineries 845,108,028.64 15,421,635.66 8,627,346.17 851,902,318.13
Vehicles 24,790,333.56 3,090,048.48 1,251,800.08 26,628,581.96
Electronic equipments and
88,185,305.33 3,497,438.96 2,265,941.37 89,416,802.92
other
Opening book Increase in Withdrawal in Decrease in the Closing book
--
balance reporting period reporting period reporting period balance
II. Accumulated
382,756,933.70 0.00 62,895,617.89 3,293,958.62 442,358,592.97
depreciation
Including: Property and 0.00
84,359,978.23 19,306,934.84 256,824.78 103,410,088.29
building
Machineries 246,699,298.80 0.00 33,273,273.14 1,406,048.09 278,566,523.85
Vehicles 8,232,096.48 0.00 1,847,653.44 760,218.25 9,319,531.67
Electronic equipments and 0.00
43,465,560.19 8,467,756.47 870,867.50 51,062,449.16
other
Opening book Closing book
-- --
balance balance
III. The net book value of
1,390,818,885.81 -- 1,346,999,785.39
fixed assets
Including: Property and
731,132,173.75 -- 718,000,587.06
building
Machineries 598,408,729.84 -- 573,335,794.28
Vehicles 16,558,237.08 -- 17,309,050.29
Other equipment 44,719,745.14 -- 38,354,353.76
IV. Total impairment
25,486,225.48 -- 18,032,747.62
provision
Including: Property and
14,229,192.09 -- 14,229,192.09
building
Machineries 8,017,255.22 -- 2,008,782.39
Vehicles 400,745.04 -- -
Electronic equipments and
2,839,033.13 -- 1,794,773.14
other
V. Total book value of fixed
1,365,332,660.33 -- 1,328,967,037.77
assets
Including: Property and
716,902,981.66 -- 703,771,394.97
building
Machineries 590,391,474.62 -- 571,327,011.89
Vehicles 16,157,492.04 -- 17,309,050.29
Electronic equipments and
41,880,712.01 -- 36,559,580.62
other
Depreciation amount of this reporting period was RMB62,895,617.892; original value of RMB0.000 was transferred into fixed assets
from construction project.
(2) Temporary idle fixed assets
Unit: RMB Yuan
84
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Accrued Impairment
Item Original book value Net book value Note
depreciation provision
Property and
0.00
building
Machineries 0.00
Vehicles 0.00
(3) Fixed assets leased in from financing lease
□Applicable √Inapplicable
(4) Fixed assets leased out from operation lease
□Applicable √Inapplicable
(5) Information of hold-for-sale fixed assets at period-end
Unit: RMB Yuan
Item Book value Fair value Estimated disposal cost Estimated settle date
(6) Information of fixed assets failed to accomplish certification of property
Item Reason Estimated accomplish date
Notes of fixed assets:
18. Construction in progress
(1)
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Sewage reform project 1,138,000.00 1,138,000.00 0.00
Basic construction of
3,816,600.00 3,816,600.00
industrial park
Total 4,954,600.00 0.00 4,954,600.00 0.00 0.00
85
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(2) Changes in significant construction in progress
Unit: RMB Yuan
Ope Transfer Including: Source
Name Other Project input Project Capitalizatio Capitalization
Budge ning Incr red to capitalization of of Closing
of decrea percentage of proces n of of interest rate
t bala ease fixed interest this fundin balance
project se budget s interest (%)
nce assets period g
Total 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 -- -- 0.00
Notes of changes in construction in progress:
(3) Impairment provision of construction in progress
Unit: RMB Yuan
Increase in the Decrease in the Reason for
Item Opening amount Closing balance
reporting period reporting period withdrawal
Total 0.00 0.00 0.00 0.00 --
(4) Information of procedures of significant construction in progress
Item Project process Note
(5) Notes of construction in progress
19. Engineering materials
Unit: RMB Yuan
Increase in the Decrease in the
Item Opening balance Closing balance
reporting period reporting period
Total 0.00 0.00
Notes of engineering materials:
20. Clearance of fixed assets
Unit: RMB Yuan
Reason for transferring to
Item Opening book value Closing book value
clearance
Total --
Notes of clearance process of fixed assets with a clearance term of over 1 year since the transfer into fixed assets:
21. Productive biological assets
(1) Calculated by cost
□Applicable √Inapplicable
(2) Calculated by fair value
□Applicable √Inapplicable
22. Oil and gas assets
Unit: RMB Yuan
86
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Opening book Closing book
Item Increase Decrease
balance balance
I. Total original book value
1. Property rights of proved mining area
2. Property rights of unproved mining area
3. Well and relevant facilities
II. Total accumulated depreciation
1. Property rights of proved mining area
2. Well and relevant facilities a
III. Total accumulated oil and gas assets
depreciation
1. Property rights of proved mining area
2. Property rights of unproved mining area
3. Well and relevant facilities
IV. Total book value of oil and gas assets
1. Property rights of proved mining area
2. Property rights of unproved mining area
3. Well and relevant facilities
Notes of oil and gas assets: Naught
23. Intangible assets
(1) Information
Unit: RMB Yuan
Increase in the Decrease in the
Item Opening balance Closing balance
reporting period reporting period
I. Total original book value 347,534,249.75 0.00 0.00 347,534,249.75
Land use right 343,859,928.19 343,859,928.19
Non-patent technology 1,992,000.00 1,992,000.00
Software, etc. 1,682,321.56 1,682,321.56
II. Accumulative amortization 30,674,233.67 3,894,350.32 0.00 34,568,583.99
Land use right 27,720,807.36 3,628,263.76 31,349,071.12
Non-patent technology 1,842,600.00 116,678.82 1,959,278.82
Software, etc. 1,110,826.31 149,407.74 1,260,234.05
III. Total net book value of
316,860,016.08 0.00 0.00 312,965,665.76
intangible assets
Land use right 316,139,120.83 312,510,857.07
Non-patent technology 149,400.00 32,721.18
Software, etc. 571,495.25 422,087.51
IV. Total impairment provision 0.00 0.00 0.00 0.00
87
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Land use right
Non-patent technology
Software, etc.
Total book value of intangible
316,860,016.08 0.00 0.00 312,965,665.76
assets
Land use right 316,139,120.83 312,510,857.07
Non-patent technology 149,400.00 32,721.18
Software, etc. 571,495.25 422,087.51
Amortization was of RMB 3,894,350.32 in the reporting period.
(2) Company development expense
Unit: RMB Yuan
Decrease
Item Opening balance Increase Recognized into Recognized as Closing balance
current gains/losses intangible assets
Total
Development expense percentage of total expenditure of R&D projects in the reporting period.
Percentage intangible assets arising from inner R&D of the Company of closing book value of intangible assets.
Notes of R&D projects of the Company, those that includes individual value of more than RMB 1 million and recognized with a
basis of assessed value, please disclose name of evaluation authority and method of evaluation:
(3) Information of intangible assets that failed to accomplish certification of property
24. Goodwill
Unit: RMB Yuan
Impairment
Name of investee or event that Increase in the Decrease in the
Opening balance Closing balance provision at
generated goodwill reporting period reporting period
period-end
Total
Notes of test method of goodwill impairment and impairment withdrawal method:
25. Long-term amortization expense
Unit: RMB Yuan
Amortization Reason for other
Item Opening balance Increase Other decrease Closing balance
balance decrease
Module 46,671,803.43 7,505,530.91 15,684,547.28 38,492,787.06
IT consultant
4,762,160.26 546,248.46 1,327,647.15 3,980,761.57
expense
Improvement of
1,320,894.74 674,039.17 646,855.57
lease expense
Total 52,754,858.43 8,051,779.37 17,686,233.60 43,120,404.20 --
Notes of long-term amortization expense: Naught
88
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
26. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
□Applicable √Inapplicable
(2) Deferred income tax assets and liabilities are listed as the net value after offset
√Applicable □Inapplicable
Notes of deferred income tax assets and liabilities
Unit: RMB Yuan
Deductible or
Deferred income Deductible or taxable Deferred income
taxable temporary
assets or liabilities temporary differences assets or liabilities as
Item differences as at the
as at the end of as at the end of at the beginning of
beginning of
reporting period reporting period reporting period
reporting period
Deferred income tax assets:
Provision for assets impairment 12,438,451.21 82,923,008.02 13,848,685.40 92,267,684.65
Formation expenses
Deductible losses
Remuneration and dismiss expense 6,813,459.43 45,423,062.89 7,208,346.05 48,055,640.35
Withdrawal expense 58,996,687.65 393,311,250.98 75,474,152.06 503,161,013.70
Internal unrealized profit 3,875,419.53 25,836,130.22 3,653,800.80 24,358,671.97
Estimated liabilities 2,912,796.06 19,418,640.40 3,022,895.56 20,152,637.08
Deferred income (government subsidy) 243,510.00 1,623,400.00 236,730.00 1,578,200.00
Investment differences 1,317,443.38 8,782,955.88 1,317,443.38 8,782,955.88
Subtotal 86,597,767.26 577,318,448.40 104,762,053.25 698,356,803.63
Deferred income tax liabilities:
Estimated value of trading financial
instruments, derivative financial 643,845.00 4,292,300.00
instruments
Fair value changes on available-for-sale
financial assets that recognized into 19,176.60 127,844.00 27,643.80 184,292.00
capital reserves
Subtotal 19,176.60 127,844.00 671,488.80 4,476,592.00
List of deferred income tax assets and deferred income tax liabilities:
Unit: RMB Yuan
Item Counter off-set amount in reporting period
Notes of deferred income tax assets and liabilities
89
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
27. List of provision for assets impairment
Unit: RMB Yuan
Opening book Decrease Closing book
Item Increase
balance Reversal Written off balance
I. Provision for bad debt 53,785,669.15 3,378,437.93 30,640.00 57,133,467.08
II. Provision for inventory falling
28,603,650.92 0.00 619,115.73 4,619,863.69 23,364,671.50
price
III. Impairment provision of
available-for-sale financial assets
IV. Impairment provision of
held-to-maturity investment
V. Impairment provision of
4,224,744.00 0.00 4,224,744.00
long-term equity investment
VI. Impairment provision of
0.00 0.00 0.00
investment property
VII. Impairment provision of fixed
25,486,225.48 7,453,477.86 18,032,747.62
assets
VIII. Impairment provision of
engineering materials
IX. Impairment provision of
0.00 0.00 0.00
construction in progress
X. Impairment provision of
productive biological assets
Including: mature productive
biological assets
XI. Impairment provision of oil gas
assets
XII. Impairment provision of
0.00 0.00 0.00
intangible assets
XIII. Impairment provision of
goodwill
XIV. Others
Total 112,100,289.55 3,378,437.93 619,115.73 12,103,981.55 102,755,630.20
Notes of the list of assets impairment: Naught
28. Other non-current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Total
Notes of other non-current assets: Naught
29. Short-term loan
(1)Category
Unit: RMB Yuan
Category Closing balance Opening balance
Pledge loan
90
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Mortgage loan 6,961,486.36
Guarantee loan
Credit loan
Total 6,961,486.36
Notes of category of short-term loan:
(2) List of unsettled mature short-term loan
Unit: RMB Yuan
Reason for
Name of creditor Amount of loan Rate of loan Usage Estimated settle date
unsettlement
Total -- -- -- --
RMB000 was paid back after the Balance Sheet Date.
Notes of short-term loan, for those gaining extended term, notes term of extension and new maturity day:
30. Trading financial liabilities
Unit: RMB Yuan
Item Closing fair value Opening fair value
Public trading bonds
Financial liabilities designed to recognized with a basis on fair value
and with its changes recognized into current gains and losses
Derivative financial liabilities
Other financial liabilities
Total
Notes of trading financial liabilities:
31. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
Trade acceptance bill
Bank acceptance bill 1,131,522,411.92 1,539,319,483.44
Total 1,131,522,411.92 1,539,319,483.44
RMB58,277.94 will be due in next fiscal period.
Notes of notes payable: bank acceptance bill provided guarantee of RMB132.498 million.
32. Accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 1,939,294,485.47 2,732,569,705.52
1 years to 2 years 42,552,916.42 39,885,209.61
91
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
2 years to 3 years 16,108,656.10 18,043,425.86
3 years to 5 years 16,027,471.91 17,016,288.79
Over 5 years 9,610,082.58 7,973,541.60
Total 2,023,593,612.48 2,815,488,171.38
(2) The accounts payable to shareholders with more than 5% (including 5%) of the voting shares of the
Company
□Applicable √Inapplicable
Notes of the accounts payable aging over one year:
33. Advance from customers
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Receive in advance 358,450,431.48 485,754,049.80
Total 358,450,431.48 485,754,049.80
(2) Advanced from customers from shareholders with more than 5% (including 5%) of the voting shares of
the Company
□Applicable √Inapplicable
Notes of significant advance from customers aging over one year:
34. Payroll payable
Unit: RMB Yuan
Item Opening book balance Increase Decrease Closing book balance
I. Salary, bonus,
60,888,997.15 137,431,653.51 167,703,891.43 30,616,759.23
allowance, subsidy
II. Employee welfare 3,865,587.77 11,169,785.93 11,724,494.95 3,310,878.75
III. Social insurance 8,645,065.78 45,292,050.67 48,438,294.91 5,498,821.54
IV. Housing fund 5,347,178.36 12,426,867.24 12,024,366.48 5,749,679.12
V. Redemption for
terminations of labor 52,792,171.57 1,704,574.88 6,259,492.58 48,237,253.87
contract
VI. Others 3,941,653.63 1,812,289.28 1,855,587.00 3,898,355.91
Total 135,480,654.26 209,837,221.51 248,006,127.35 97,311,748.42
RMB 0.00 is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB 1,812,289.28, and the non-monetary benefits are RMB0.00, as well
as the compensation for terminating the labor contract is RMB 1,704,574.88.
The estimated distribution date and amount as well as other arrangements for payroll payable: Naught
35. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
Value-added tax -82,113,500.81 -75,048,177.29
Consumption tax
92
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Business tax 1,930,713.13 2,013,293.60
Corporate income tax 17,177,485.73 63,401,496.70
Personal income tax 7,184,136.99 281,459.64
Urban maintenance and construction tax 710,358.80 1,998,223.92
Property tax 1,223,856.82 1,897,977.50
Land use tax 253,595.93 1,959,774.34
Stamp tax 721,059.67
Education surtax 537,120.95 1,372,998.32
Other 3,584,044.00 2,865,776.81
Total -49,512,188.46 1,463,883.21
Notes of taxes payable: for the taxable income of branch companies and factories approved to be inter-adjusted by their local tax
authorities, the Company shall specified their calculation procedure. Naught
36. Interest payable
Unit: RMB Yuan
Item Closing balance Opening balance
Interest payable on long-term borrowings that interest
was paid by stages and principle was repay upon due
Interest of corporate bond
Interest payable on short-term borrowings
Total
Notes: Naught
37. Dividends payable
Unit: RMB Yuan
Reason for unsettlement over 1
Name of company Closing balance Opening balance
year
Other corporate shareholder with
3,710,206.21 2,838,070.21 Unpaid
trading moratorium
Total 3,710,206.21 2,838,070.21 --
Notes:
38. Other accounts payable
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 140,513,192.15 128,170,235.14
1 years to 2 years 7,341,587.24 22,787,614.91
2 years to 3 years 7,787,825.31 8,593,080.06
3 years to 5 years 3,433,580.75 2,291,622.53
Over 5 years 2,499,873.27 3,562,718.52
93
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Total 161,576,058.72 165,405,271.16
(2) Other accounts payable from shareholders with more than 5% (including 5%) of the voting shares of
the Company
√Applicable □Inapplicable
Unit: RMB Yuan
Name of entity Closing balance Opening balance
Guangdong Midea Electric Appliances Co., Ltd. 390,636.00 390,636.00
Total 390,636.00 390,636.00
(3) Notes of the other large amount accounts payable aging over 1 year
Naught
(4) Notes of other accounts payable with significant amount
Naught
39. Estimated liabilities
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
External offering
guarantee
Unsettled lawsuit
Product quality guarantee 18,953,235.00 19,034,176.39
Responsibility of
reorganization
Dismissal welfare
Loss contract to be
executed
Other 1,199,402.08 384,464.01
Total 20,152,637.08 0.00 0.00 19,418,640.40
Notes:
The washing machines produced by subsidiary of the company, Wuxi Little Swan General Electric Co., Ltd., are
mainly sold to the United States and other foreign markets. Overseas sale of these washing machines involves the
two kinds of risks:1) The insurance company may only afford an insufficient compensation when the quality
problems take place, and 2) there is a risk of liability for damages when the failure rate is higher than FCR
stipulated in the contract with General Electric Company. As of 30 Jun. 2012, the company has a risk loss of RMB
19,034,200 for the sold products.
40. Non-current liabilities due within 1 year
(1)
Unit: RMB Yuan
Item Closing balance Opening balance
Long-term loan due within 1 year
Bonds payable due within 1 year
94
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Long-term accounts payable due within 1 year
Total
(2) Long-term loan due within 1 year
Long-term loan due within 1 year
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Total
RMB000 of long-term loan due within 1 year was of mature loan with extended term.
Top five long-term loan due within 1 year
Unit: RMB Yuan
Closing balance Opening balance
Starting Foreign Foreign
Creditor Ending date Currency Rate (%) RMB RMB
date currency currency
balance balance
balance balance
Total -- -- -- -- -- --
Mature loan of long-term loan due within 1 year:
Unit: RMB Yuan
Reason for Estimated settle
Creditor Amount of loan Overdue date Annual rate (%) Usage
unsettlement date
Total -- -- -- -- --
RMB000 was paid back after Balance Sheet Date:
Notes of long-term borrowings due within 1 year:
Naught
(3)Bonds payable due within 1 year
Unit: RMB Yuan
Accrued Interest paid
Opening Closing
Issuance Issuing interest in in the Closing
Name Par value Term interest interest
date amount current reporting balance
payable payable
period period
Notes:
Naught
(4) Long-term accounts payable due within 1 year
Unit: RMB Yuan
95
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Creditor Term Initial amount Rate (%) Accrued interest Closing balance Conditions
Notes of long-term accounts payable due within 1 year:
41. Other current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Deferred income 7,318,250.00 6,621,250.00
Total 7,318,250.00 6,621,250.00
Notes: Naught
42. Long-term loan
(1)Category of long-term loan
Unit: RMB Yuan
Item Closing balance Opening balance
Pledge loan
Mortgage loan
Guarantee loan
Credit loan
Total
Notes:
(2)The top five long-term loans
Unit: RMB Yuan
Closing balance Opening balance
Starting Foreign Foreign
Creditor Ending date Currency Rate (%) RMB RMB
date currency currency
amount amount
amount amount
Total -- -- -- -- -- --
Notes of long-term loan: for the long-term loans arising from mature loans with extended term, the Company shall explain the
conditions of extension, principal, interest, expected repayment arrangement:
Naught
43. Bonds payable
Unit: RMB Yuan
Interest paid
Opening Closing Closing
Issuance Issuing in the
Name Par value Term interest interest interest Name
date amount reporting
payable payable payable
period
Notes of bonds payable, including the conditions and date of conversion of the convertible corporate bonds: inapplicable
96
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
44. Long-term payable
(1) The top five long-term payable
Unit: RMB Yuan
Conditions of
Company Term Initial amount Rate (%) Accrued interest Closing balance
loan
(2) List of the financing lease payable under the long-term loan
Unit: RMB Yuan
Closing balance Opening balance
Company
Foreign currency RMB Foreign currency RMB
Total
RMB000 was guarantee for the Company’s financing lease provided by the independent third party.
Notes of the long-term payable: Naught
45. Specific payable
Unit: RMB Yuan
Decrease in
Increase in
Item Opening balance reporting Closing balance Note
reporting period
period
Total --
Notes of specific payable: Naught
46. Other non-current liabilities
Unit: RMB Yuan
Item Closing book balance Opening book balance
Deferred income 7,318,250.00 6,621,250.00
Total 7,318,250.00 6,621,250.00
Notes of other non-current liabilities, including each government grants relevant to assets and income received in the reporting period
and their closing amounts: RMB1,012,600.00.
47. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Capitalization Closing
Issuing new
balance Bonus shares of public Other Subtotal balance
shares
reserves
Total shares 632,487,764 0 0 632,487,764
Notes of changes in share capital, for those action of increasing capital or decreasing capital in the reporting period, the Company
shall disclose the name of the accounting firm executing the capital verification and document number of the capital verification
97
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
report; for joint-stock companies running for less than three years, only the net assets shall be specified for particulars before
establishment; while for case of totally changing the limited liability companies into joint-stock companies, capital verification on the
establishment shall be specified:
48. Treasury stock
Notes of treasury stock:
49. Special reserves
Notes of special reserves:
50. Capital reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium (share
1,055,182,718.57 1,055,182,718.57
capital premium)
Other capital reserves
Capital reserves transferred
39,179,385.00 39,179,385.00
from original system
Gains and losses from fair value
156,648.20 47,980.80 108,667.40
changes
Equity investment preparation 1,638,562.74 1,638,562.74
Total 1,096,157,314.51 0.00 47,980.80 1,096,109,333.71
Notes:
51. Surplus reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserves 249,433,912.28 249,433,912.28
Discretional surplus reserves
Reserve fund
Enterprise development funds
Other
Total 249,433,912.28 0.00 0.00 249,433,912.28
Notes of surplus reserves: for surplus reserves transferred to share capital, compensating losses and distributed as dividends, relevant
resolutions shall be explained:
52. Provision for general risk
Notes of provision for general risk:
53. Retained profits
Unit: RMB Yuan
Withdrawal or distributed
Item Amount
proportion
Opening balance of retained profits before 1,465,610,508.78 --
98
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
adjustments
Adjustments of opening balance of retained
--
profits (“+” means add, “-” means reduce)
Opening balance of retained profits after
1,555,341,091.53 --
adjustments
Add: Net profit attributable to owners of the
216,228,135.55 --
Company
Less: Withdrawal of statutory surplus reserves
Withdrawal of discretional surplus reserves
Withdrawal of provision for general risk
Dividend of common stock payable 126,497,552.80
Dividend of common stock converted into
share capital
Closing retained profits 1,555,341,091.53 --
List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
Notes: as for IPO companies, if the accumulated profits were enjoyed by new and original shareholders according to the resolutions
made at the shareholders’ general meeting before public offering, the Company shall explain clearly; if the accumulated profits were
distributed before public offering and enjoyed by the original shareholders according to the resolutions made at the shareholders’
general meeting, the Company shall clearly disclose the audited profits of dividends payable enjoyed by the original shareholders:
inapplicable.
54. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
Item Reporting period Same period of last year
Sales of main business 2,805,116,121.47 5,899,254,923.62
Other operating income 296,212,609.67 848,259,198.91
Cost of sales 2,453,880,581.19 5,611,799,841.30
(2)Main business (Classified by industry)
√Applicable □Inapplicable
Unit: RMB Yuan
Industry Reporting period Same period of last year
99
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Revenue of sales Costs of sales Revenue of sales Costs of sales
Home appliances 2,805,116,121.47 2,213,791,209.14 5,899,254,923.62 4,821,212,065.16
Total 2,805,116,121.47 2,213,791,209.14 5,899,254,923.62 4,821,212,065.16
(3)Main business (Classified by product)
√Applicable □Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Washing machine 2,805,116,121.47 2,213,791,209.14 5,899,254,923.62 4,821,212,065.16
Total 2,805,116,121.47 2,213,791,209.14 5,899,254,923.62 4,821,212,065.16
(4) Main business (Classified by area)
√Applicable □Inapplicable
Unit: RMB Yuan
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Domestic market 1,744,614,729.04 1,185,059,471.28 4,832,628,273.73 3,764,076,508.18
Overseas market 1,060,501,392.43 1,028,731,737.86 1,066,626,649.89 1,057,135,556.98
Total 2,805,116,121.47 2,213,791,209.14 5,899,254,923.62 4,821,212,065.16
(5) The revenue of sales from the top five customers
Unit: RMB Yuan
Customer Main business revenue Proportion of total business revenue (%)
MideaElectricTrading (Singapore)
585,119,029.41 18.87%
Co. Pte. Ltd.
Guizhou Midea Refrigeration
76,018,704.94 2.45%
Product Marketing Co., Ltd.
Kronen Internacional S.A. 57,696,354.34 1.86%
Wuhan Midea Refrigeration
49,641,146.79 1.6%
Product Marketing Co., Ltd.
Hunan Midea Refrigeration
49,422,775.51 1.59%
Product Marketing Co., Ltd.
Total 817,898,010.99 26.37%
Notes:
Naught
55. Revenue from the construction contracts
□ Applicable □ Inapplicable
Notes of revenue from the construction contracts:
100
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
56. Business tax and surtax
Unit: RMB Yuan
Item Reporting period Same period of last year Calculation and payment standard
Consumption tax
Business tax 451,411.83 6,375.00
Urban maintenance and construction
8,913,533.50 9,630,579.72
tax
Education surtax 6,366,809.66 5,923,722.68
Resources tax
Other 247,756.68
Total 15,731,754.99 15,808,434.08 --
Notes: Naught
57. Gains and losses from changes in fair value
Unit: RMB Yuan
Source Reporting period Same period of last year
Trading financial assets -4,292,300.00 11,689,065.84
Including: gains from the changes in fair value of
derivative financial instruments
Trading financial liabilities
Investment property calculated in fair value
Other 0.00 0.00
Total -4,292,300.00 11,689,065.84
Notes:
58. Investment income
(1) List of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by
163,405.12 30,000.00
cost method
Long-term equity investment income accounted by
50,887.51 -1,078,070.63
equity method
Investment income arising from disposal of
18,510,892.36
long-term equity investments
Investment income received from holding of trading
4,848,500.00 12,149,078.24
financial assets
101
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Investment income received from holding of
held-to-maturity investments
Investment income received from holding of
available-for-sale financial assets
Investment income received from disposal of
trading financial assets
Investment income received from holding of
held-to-maturity investments
Investment income received from available-for-sale
financial assets
Other
Total 5,062,792.63 29,611,899.97
(2) Long-term equity investment income accounted by cost method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease
year
Suzhou People's Shopping Mall 40,000.00 30,000.00
Bank of Jiangsu 123,405.12
Total 163,405.12 30,000.00 --
(3) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Same period of last
Name of investee Reporting period Reason for increase/decrease
year
Attend Logistics Co., Ltd. 50,887.51 -158,936.44
BSW Household Appliances Co., Ltd. -919,134.19
Total 50,887.51 -1,078,070.63 --
Notes of investment income: make notes if there is significant limitation for recovery of investment income. If there isn’t the said
limitation, notes too: Naught
59. Impairment losses
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Bad debts losses 3,378,437.94 6,432,722.94
II. Inventory falling price losses -619,115.73 -900,755.61
III. Impairment losses of available-for-sale financial
assets
IV. Impairment losses of held-to-maturity of investment
V. Impairment losses of long-term equity investment
102
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
VI. Impairment losses of investment property
VII. Impairment losses of fixed assets
VIII. Impairment losses of engineering materials
IX. Impairment loss of construction in progress
X. Impairment losses of productive biological assets
XI. Impairment losses of oil and gas assets
XII. Impairment losses of intangible assets
XIII. Impairment losses of goodwill
XIV. Other
Total 2,759,322.21 5,531,967.33
60. Non-operating gains
(1)
Unit: RMB Yuan
Item Reporting period Same period of last year
Total gains from disposal of non-current assets 8,366,649.38 15,741,216.89
Including：Gains from disposal of fixed assets 8,366,649.38 15,741,216.89
Gains from disposal of intangible assets
Gains from debt reconstruction
Gains from non-monetary assets exchange
Acceptance of donations
Government grants 4,578,571.99 16,731,627.64
Penalty income 3,752,149.92 1,504,773.46
Other 2,363,356.14 1,836,182.83
Total 19,060,727.43 35,813,800.82
(2) List of government grants
Unit: RMB Yuan
Item Reporting period Same period of last year Note
Special funds on business
1,694,300.00
development
VAT refund upon collection 902,394.27 10,143,935.44
Rewards from the foreign trade and
economic development project 640,000.00 400,000.00
funds
Subsidies for investment on Midea
5,331,500.00
Washing Machine Industrial Park
103
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Rewards for municipal technology
200,000.00
center of enterprise
Rewards for outstanding enterprise
200,000.00
in high-tech industry
Subsidies for overseas investment 90,000.00
Subsidies for large taxpayer 40,000.00
Rewards for production expansion
33,640.00
of foreign-trading enterprise
Relocation subsidies 25,200.00
Patent subsidies from Science &
13,000.00
Technology Bureau
Subsidy on export letter of credit 353,200.00
Subsidy on technology
300,000.00
development plan project
Subsidy on developing
international famous brand of 200,000.00
Jiangsu Province
Special funds on attracting
150,000.00
investment
Subsidies for AICA of export
115,200.00
products
Rewards on patent by Science
63,400.00
Bureau
Reward for Commending Excellent
Enterprises 2011 by Economic and 50,000.00
Trade Bureau
Financial subsidy on the Top Ten
35,000.00
Software Corporations of Wuxi
Other 75,077.72 254,352.20
Total 4,578,571.99 16,731,627.64 --
Notes
61. Non-operating expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Loss on disposal of non-current assets
Including: Loss on disposal of fixed assets 816,841.83 2,017,512.26
Loss on disposal of intangible assets
104
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Loss on debt reconstruction
Loss on exchange of non-monetary assets
External donation expense
Losses on disposal of fixed assets 8,686.22
Penalty expense 75,975.18 2,044.73
Compensation expense
Donation expense 50,000.00
Local fees (flood prevention and security funds etc.) 1,989,888.75 4,648,031.79
Other 796,055.14 1,815,364.11
Total 3,687,447.12 8,532,952.89
Notes:
62. Income tax expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Current income tax expense accounted by tax and relevant
16,508,665.99 104,460,824.48
regulations
Adjustment of income tax 17,520,440.96 -20,025,431.82
Total 34,029,106.95 84,435,392.66
63. Calculation procedure of basic earnings per share and diluted earnings per share
Profit in reporting period Reporting period Same period of last year
Basic EPS Deluted EPS Weighted Basic EPS Deluted EPS Weighted
Average ROE Average ROE
Net profit attributable to 0.34 0.34 6.09% 0.44 0.44 8.77%
common shareholders of
the Company (I)
Net profit attributable to 0.32 0.32 5.71% 0.41 0.41 8.02%
common shareholders of
the Company after
deduction of
non-recurring profit and
loss (II)
Same period of last
Item No. Reporting period
year
Net profit attributable to common shareholders of the
1
Company(NP) 216,228,135.55 280,338,482.78
Non-recurring gains and losses of net profit attributable to
2
common shareholders of the Company after deducting 13,622,676.81 23,930,045.58
105
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
influence on income tax
Net profit attributable to common shareholders of the
3=1-2
Company after deducting non-recurring gains and losses 202,605,458.74 256,408,437.20
Total shares as at 30 Jun. 2012 4
632,487,764.00 632,487,764.00
Additional shares increased due to capital reserves
converted to shares or distribution of dividends, etc. 5
- -
in reporting period
Additional shares due to issuance of new share or
6
debts converted into shares, etc. in reporting period - -
The number of months from the next month when
increasing shares due to issuance of new share or 7
- -
debts converted into shares, etc.
Reduced shares due to buy-back business etc. in
8
reporting period - -
The number of months from the next month when
9
reducing shares - -
Number of shares reduced in reporting period 10
- -
Number of months in reporting period 11
6.00 6.00
Weighted average of common shares issued 12=4+5+6×7÷11-8×9
outside(Ⅰ) ÷11-10 632,487,764.00 632,487,764.00
Weighted average of common shares issued outside
13
adjusted for merger under common control(Ⅱ) 632,487,764.00 632,487,764.00
Basic earnings per share(Ⅰ) 14=1÷13
0.34 0.44
Basic earnings per share(Ⅱ) 15=3÷12
0.32 0.41
Diluting potential common share interests recognized
16
as expenses - -
Income tax rate 17 15% 15%
Transformation expense 18
- -
Amount of shares increased by transforming or
exercising of company bond, subscription certificate, 19
- -
or share option
106
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
20=[1+(16-18)×(1-17)
Diluted EPS(Ⅰ)
]÷(13+19) 0.34 0.44
21=[3+(16-18)×(1-17)
Diluted EPS(Ⅱ)
]÷(12+19) 0.32 0.41
64. Other comprehensive income
Unit: RMB Yuan
Reporting Same period of
Item
period last year
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 0.00 0.00
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 0.00 0.00
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
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 0.00 0.00
Total 71,687.54 -746,388.49
Notes: Naught
107
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
65. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Amount
Penalty income 3,752,149.92
Subsidy on income, etc. 3,676,177.72
Interest income from normal bank deposit 34,084,424.15
Actual rent received from operating lease 688,729.60
Other cash income from non-operation 11,480,058.50
Total 53,681,539.89
Notes:
Naught
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Amount
Sales expense paid in reporting period 251,648,858.50
Administration expense paid in reporting period 59,672,804.27
Handling charges for financial expense in reporting period 1,441,800.51
Other 4,165,394.98
Total 316,928,858.26
Notes:
Naught
(3) Other cash received relevant to investment activities
Unit: RMB Yuan
Item Amount
Total
Notes:
Naught
(4) Other cash paid relevant to investment activities
Unit: RMB Yuan
Item Amount
Total
Notes:
Naught
108
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(5) Other cash received relevant to financing activities
Unit: RMB Yuan
Item Amount
Total
Note to other cash receipts relating to financing activities
None
(6) Other cash payments relating to financing activities
Unit: RMB Yuan
Item Amount
Total
Note to other cash payments relating to financial activities:
None.
66. Appendix of Cash Flow Statement
(1) Appendix of Cash Flow Statement
Unit: RMB Yuan
Amount of this Amount of last
Item
period period
1. Reconciliation of net profit to net cash flows generated from
-- --
operating activities
Net profit 234,142,192.35 333,304,792.64
Add: Provision for impairment of assets 2,759,322.21 5,531,967.33
Depreciation of fixed assets, of oil-gas assets, of productive
62,992,296.64 49,139,540.41
biological assets
Amortization of intangible assets 3,894,350.32 3,080,816.34
Amortization of long-term deferred expense 17,686,233.60 22,566,793.19
Losses on disposal of property, plant and equipment, intangible
assets and other -7,549,807.55 -13,723,704.63
long-term assets (gains: negative)
Loss on retirement of fixed assets (gains: negative)
Financial cost (gains: negative) 4,292,300.00 -11,689,065.84
Investment loss (gains: negative) 425,127.33
Decrease in deferred income tax assets (gains: negative) -5,062,792.63 -29,611,899.97
Increase in deferred income tax liabilities (decrease: negative) 18,164,285.98 -18,482,204.81
109
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Decrease in inventory (gains: negative) -643,845.00 1,075,074.65
Decrease in accounts receivable from operating activities (gains:
191,820,788.31 132,708,678.56
negative)
Increase in payables from operating activities (decrease: negative) 1,659,302,504.82 -2,709,576,003.39
Other -1,272,360,218.32 1,726,249,260.57
Net cash flows generated from operating activities
II. Investing and financing activities that do not involving
909,437,610.73 -509,000,827.63
cash receipts and payment:
Conversion of debt into capital -- --
Convertible bond due within one year
Fixed assets financed by finance leases
III. Net increase in cash and cash equivalents
Closing balance of cash -- --
Less: Opening balance of cash 2,987,581,854.36
Closing balance of cash equivalents 1,440,179,977.23 2,119,023,194.93
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 707,928,551.79 -678,843,217.70
(2)Information about acquisition or disposal of subsidiary and other business units in the reporting period
Unit: RMB Yuan
Supplementary Information Amount of this period Amount of last period
I. Information about acquisition of subsidiaries and other
-- --
business units:
1. Price of the acquisition of subsidiaries and other business
units
2. Cash and cash equivalents paid for the acquisition of
subsidiaries and other business units
Less: Cash and cash equivalents held by subsidiaries
and other business units
3. Net cash paid for the acquisition of subsidiaries and other
business units
Net assets from the acquisition of subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
None current liabilities
110
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
II. Information about disposal of subsidiaries and other
-- --
business units
1. Price of the disposal of subsidiaries and other business
units
2. Cash and cash equivalents received from the disposal of
subsidiaries and other business units
Less: Cash and cash equivalents held by subsidiaries
and other business units
3. Net cash received from the disposal of subsidiaries and
-3,027,789.49
other business units
4. Net assets from the disposal of subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
None current liabilities
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Closing amount Opening amount
I. Cash 2,987,581,854.36 1,440,179,977.23
Including: cash in hand 210,062.94 184,735.57
Bank deposit can be used for payment at any
2,987,371,791.42 2,279,468,567.00
time
Other monetary funds can be used for payment
at any time
Deposits in central bank can be used for
payment
Deposits in other banks
Call loans to banks
II. Cash equivalents
Including: bond investments due within three
months
III. Closing balance of cash and cash equivalents 2,987,581,854.36 2,279,653,302.57
Note to Supplementary Information of Cash Flow Statement
67. Note to changes in owners’ equity
Explain the “Other” items to be adjusted at the end of the first half year and the adjusted amount; the retroactive
adjustment due to consolidation of enterprises under the same control:
111
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(VIII) Accounting treatment of asset securitization business
1. Main transaction arrangements, accounting treatments and bankruptcy remoteness terms of asset
securitization
None.
2. Special purpose entities that the company doesn’t own but bears the risks
Unit: RMB Yuan
Total assets at Total liabilities Net assets at Operating
Net profits of
Name the end of at the end of the end of revenue of Remark
current period
period period period current period
112
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(Ⅸ)Relationship and Related Party Transactions
1. Particulars about the parent company:
Unit: RMB Yuan
Proportions Proportions
of parent of parent
Ultimate
Name of company’s company’s
Enterprise Legal controller Organization
parent Relationship Registration place Business nature Registered capital Currency shareholding voting
nature representative of the code
company to the right to the
company
company company
(%) (%)
Manufacture and
sales of
commercial air
GD
Joint conditioners,
Midea Parent He
stock Foshan, Guangdong Fang Hongbo refrigerators 3,384,347,650.00 CNY 40.08% 40.08% 19033709-2
Holding company Xiangjian
company washing-machines
Co., Ltd.
and compressors,
after-sale service
of productions
Note of the parent company:
None.
2. Particulars about the subsidiaries:
Unit: RMB Yuan
Shareholding Voting right
Enterprise Registration Legal Business Registered Organization
Name of subsidiaries Relationship Currency to the to the
nature place representative nature capital code
company company (%)
113
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
(%)
Wuxi Little Swan General Wholly-owned
Production Wuxi Chai Xinjian Production 28,000,000.00 CNY 70% 70% 76355342-0
Electric Appliances Co. , Ltd. subsidiary
Wuxi Little Swan Driving &
Wholly-owned
Control Development R&D Wuxi Chai Xinjian R&D 5,000,000.00 CNY 97.3% 97.3% 79538539-6
subsidiary
Technology Co. , Ltd.
Wholly-owned
Wuxi Filin Electronics Co. , Ltd. Production Wuxi Chai Xinjian Production 3,624,600.00 USD 73% 73% 74815875-6
subsidiary
Wuxi Little Swan Washing Wholly-owned
Production Wuxi Chai Xinjian Production 49,679,500.00 CNY 99.91% 99.91% 60792331-1
Machine Co. , Ltd. subsidiary
Wuxi Meitian Refrigerator Wholly-owned
Trading Wuxi Chai Xinjian Trading 4,000,000.00 USD 75% 75% 71490141-7
Market Co., Ltd. subsidiary
Jiangsu Little Swan Marketing Wholly-owned
Trading Wuxi Chai Xinjian Trading 419,500,000.00 CNY 99.64% 99.64% 73330538-9
and Sales Co. , Ltd. subsidiary
Wuxi Little Swan Import & Wholly-owned Import & Import &
Wuxi Chai Xinjian 65,000,000.00 CNY 88.46% 88.46% 13600714-8
Export Co. , Ltd subsidiary Export Export
Wholly-owned
P.T. Little Swan Prima Industries Trading Malaysia Zhu Dekun Trading 1,000,000.00 USD 51% 51%
subsidiary
Little Swan International Wholly-owned
Investment Singapore Chai Xinjian Investment 5,000,000.00 USD 100% 100%
(Singapore) Co., Ltd. subsidiary
Wholly-owned Production Production
Tianjin Little Swan Co., Ltd. Tianjin Fang Hongbo 200,000,000.00 CNY 100% 100% 57230359-2
subsidiary
Little Swan (Jingzhou) Wholly-owned Production production
Jingzhou Chai Xinjian 11,070,200.00 CNY 100% 100% 72614223-5
Electronic Appliances Co., Ltd. subsidiary of washing
114
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
machine
Production Hefei production
Hefei Royalstar Washing Wholly-owned
Fang Hongbo of washing 135,520,000.00 USD 69.47% 69.47% 14906761-7
Machine Manufacture Co., Ltd. subsidiary
machine
Production Hefei production
Hefei Midea Washing Machine Wholly-owned
Fang Hongbo of washing 20,000,000.00 CNY 62.523% 90%
Manufacture Co., Ltd. subsidiary
machine
3. Information on co-operated or joint operated of the Company
Unit: RMB Yuan
Proportio
Proportio Total Total Operating Net
Legal n of
Business Registrati Business Registere n of Organizat liabilities assets at revenue of profits of Relations Organizat
Item represent Currency holding
Type on place scope d capital voting ion code at the end the end of current current hip ion code
ative shares
rights (%) of period period period period
(%)
1.
co-operat -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
ed
2. joint
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
operated
Guangzh
Limited
ou Attend Guangzh Ye Logistics 10,000,00 24,663,80 7,265,103 17,398,69 3,877,666. 254,437. 72993557
liability CNY 20% 20% No
Logistics ou Weilong services 0.00 0.00 .69 6.31 11 56 -2
company
Co. Ltd.
115
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
4. Other related parties of the Company
Name of the parties Relationship Organization code
Guangzhou Attend Logistics Co. Ltd. Joint – operative 72993557-2
Under control of controlling
Midea Electric Espana, S.L.
shareholder of the Company
Under control of controlling
Midea Europe GMBH
shareholder of the Company
Under control of controlling
MIDEA ITALIA SRL
shareholder of the Company
MIDEA SCOTT&ENGLISH Under control of controlling
ELECTRONIICS SDN.BHD shareholder of the Company
Midea Electric Trading (Singapore) Co. Pte Under control of controlling
Ltd shareholder of the Company
Under control of controlling
PT. Midea Planet Indonesia
shareholder of the Company
GD Midea Heating & Ventilating Equipment Under control of controlling
78115339-1
Co., Ltd. shareholder of the Company
Under control of controlling
Guangdong Zhengli Precision Machinery
shareholder of the Company's parent 72111191-5
Co., Ltd.
company
Under control of controlling
Hefei Hua Ling Share Holding Co. , Ltd. 61031550-1
shareholder of the Company
Under control of family member close
Hefei Huitong New Materials Co., Ltd. 67759766-2
to the actual controller
Hefei Midea Heating & Ventilating Under control of controlling
56341004-6
Equipment Co., Ltd. shareholder of the Company
Under control of controlling
Hefei Midea Royalstar Refrigerator Co., Ltd. 14906759-6
shareholder of the Company
Under control of family member close
Hefei Bainian Molding Technology Co., Ltd. 66293360-0
to the actual controller
Under control of controlling
Hefei Midea Materials Supply Co., Ltd. 55183611-1
shareholder of the Company
Under control of controlling
Huai'an Welling Motor Manufacturing Co.,
shareholder of the Company's parent 75968160-6
Ltd.
company
Under control of controlling
Jiangsu Midea Chunhua Electric Appliance
shareholder of the Company's parent 13479435-2
Co., Ltd.
company
Ningbo Annto Logistics Co. Ltd. Under control of controlling 57051088-9
116
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
shareholder of the Company's parent
company
Under control of controlling
Wuhu Annto Logistics Co. Ltd. shareholder of the Company's parent 71992943-5
company
Under control of controlling
Wuhu Bainian Technology Development
shareholder of the Company's parent 75096265-5
Co., Ltd.
company
Little Swan (Jingzhou) Electronic Under control of controlling
70696333-5
Appliances Co., Ltd. shareholder of the Company
Zhongshan Midea Environmental Electric Under control of controlling
Engineering Products Installation Service shareholder of the Company's parent 68445743-0
Co., Ltd. company
Note of other related parties of the Company
5．Related party transactions
（1） Purchase of goods, services received among the related-party
Unit: RMB Yuan
Amount of this period Amount of last period
Proporti Proporti
Pricing on in on in
Name of Content of related
principle of transacti transacti
company transaction Amount Amount
related parties ons of ons of
the same the same
kind kind
Ningbo Annto
services received 23,463,717.88 1.18% 27,036,646.43 0.51%
Logistics Co. Ltd.
Little Swan
(Jingzhou)
Electronic Purchase of goods 194,845.68 0.01% 0%
Appliances Co.,
Ltd.
Huai'an Welling
Motor
Purchase of goods 132,395,847.71 6.64% 399,380,921.66 7.47%
Manufacturing
Co., Ltd.
Foshan Bainian
Technology
Purchase of goods 222,222.22 0.01% 0%
Development Co.,
Ltd.
Hefei Midea
Materials Supply Purchase of goods 121,688,477.77 6.1% 277,321,296.44 5.19%
Co., Ltd.
117
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Gd Midea
Purchase of goods 0% 426,558.61 0.01%
Holding Co., Ltd
Hefei Bainian
Molding Purchase of raw
39,481,301.16 1.98% 96,373,786.26 1.8%
Technology Co., materials
Ltd.
Hefei Huitong
New Materials Purchase of goods 29,484,171.35 1.48% 51,264,056.42 0.96%
Co., Ltd.
Sales of goods, services provided among the related-party
Unit: RMB Yuan
Amount of this period Amount of last period
Proporti Proporti
Pricing on in on in
Name of Content of related
principle of transacti transacti
company transaction Amount Amount
related parties ons of ons of
the same the same
kind kind
Hefei Bainian
Molding
Sales of goods 26,257,407.35 0.85% 94,506,066.93 1.4%
Technology Co.,
Ltd.
Hefei Midea
Royalstar
Sales of goods 1,183,120.26 0.04% 45,467.70 0%
Refrigerator Co.,
Ltd.
Little Swan
(Jingzhou)
Electronic Sales of goods 3,835,200.67 0.12% 0%
Appliances Co.,
Ltd.
Midea Electric
Trading
Sales of goods 585,119,029.41 18.87% 368,361,923.73 5.46%
(Singapore) Co.
Pte. Ltd.
Hefei Huitong
New Materials Sales of goods 14,882,970.07 0.48% 19,332,683.73 0.29%
Co., Ltd.
Hefei Hua Ling
Share Holding Sales of goods 4,366,304.17 0.14% 8,340,053.04 0.12%
Co. , Ltd.
GD Midea
Heating &
Ventilating Sales of goods 0% 382,733.02 0.01%
Equipment Co.,
Ltd.
118
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
MIDEA ITALIA
Sales of goods 0% 3,743,138.01 0.06%
SRL
Midea Europe
Sales of goods 0% 8,816,013.32 0.13%
GMBH
Midea Electric
Sales of goods 0% 2,371,230.02 0.04%
Espana, S.L.
PT. Midea Planet
Sales of goods 7,192,798.91 0.23% 5,904,681.70 0.09%
Indonesia
MIDEA
SCOTT&ENGLI
SH Sales of goods 15,056,432.44 0.49% 2,369,180.82 0.04%
ELECTRONIICS
SDN.BHD
（2） Particulars about related trusteeship and guarantees
Table of particulars about trusteeship/contracting of the company
Unit: RMB Yuan
Income
Pricing
from
Starting Ending basis of Influence
Type of trusteeshi
Name of Name of Trusted/co Amount date of date of income of the
trusted/co p/contracti
trustor/em trustee/co ntracted trusted/co trusteeshi trusteeshi from income on
ntracted ng
ployer ntractor asset ntracted p/contracti p/contracti trusteeshi the
asset confirmed
ng ng p/contracti company
in the
ng
report
Table of particulars about trusteeship/employment of the company
Unit: RMB Yuan
Expense
Pricing
for
Starting Ending basis of Influence
Type of trusteeshi
Name of Name of Trusted/e Amount date of date of expense of the
trusted/em p/employ
trustor/em trustee/co mployed trusted/em trusteeshi trusteeshi for income on
ployed ment
ployer ntractor asset ployed p/employ p/employ trusteeshi the
asset confirmed
ment ment p/employ company
in the
ment
report
Note to related trusteeship and contracting
(3)Particulars about related lease
Table of particulars of issuing lease
Unit: RMB Yuan
119
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Lease Influence
Pricing income of the
Type of Condition Amount Starting Ending
Name of Name of basis of confirmed lease
leased of leased of leased date of date of
lesser lessee lease within the income on
asset asset asset lease lease
income reporting the
period company
Table of particulars of receiving lease
Unit: RMB Yuan
Lease Influence
Pricing expense of the
Type of Condition Amount Starting Ending
Name of Name of basis of confirmed lease
leased of leased of leased date of date of
lesser lessee lease within the income on
asset asset asset lease lease
expense reporting the
period company
Note to particulars about related lease
(4)Particulars about related guarantees
Unit: RMB Yuan
Whether
Amount Starting date of Ending date of guarantee is
Guarantor Guaranteed party
guaranteed guarantee guarantee completely
fulfilled
Particulars about related guarantees:
In accordance with capital demand for production and operation as well as business operation
development requirement of subsidies of the Company, the Company: 1. provided guarantee amount of
RMB One billion six hundred million to subsidy Hefei Royalstar Washing Machine Manufacture Co., Ltd.
for its application of bank credit amount; 2. provided guarantee amount of RMB 50 million to subsidy
Wuxi Little Swan General Electric Appliances Co., Ltd. for its application of bank credit amount. The
above guarantees of three subsidies have provided counter guarantee for the Company with their whole
assets.
(5)Lending and borrowing of related parties
Unit: RMB Yuan
Related party Amount Starting date Ending date Explanation
Borrowing
120
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Lending
(6)Details of property transfer and debt restructuring between related parties
Unit: RMB Yuan
Pricing Amount of current period Amount of last period
method and
Type of Proporti Proporti
Content of decision-maki
related on in on in
Related party related ng procedure
transactio Amount similar Amount similar
transaction of related
n transacti transacti
transaction
ons (%) ons (%)
and
(7)Other related transactions
6. Amount due to/from related parties
Receivable from the related parties
Unit: RMB Yuan
Item Name of related parties Closing amount Opening amount
Midea Electric Trading(Singapore) Co. Pte Ltd 222,437,144.08 336,640,501.81
Hefei Hua Ling Share Holding Co. , Ltd. 1,505,397.52 5,451,575.78
Hefei Midea Royalstar Refrigerator Co., Ltd. 12,005.81
Jiangsu Midea Chunhua Electric Appliance Co., Ltd. 100,000.00
MIDEA ITALIA SRL 706,673.25
Midea Electric Espana, S.L. 2,397,592.23
MIDEA SCOTT&ENGLISH ELECTRONILCS
15,336,671.53 8,957,356.60
SDN.BHD
PT. Midea Planet Indonesia 12,624,272.76 14,234,767.83
Little Swan (Jingzhou) Electronic Appliances Co.,
202,849.40 245,238.66
Ltd.
GD Midea Heating & Ventilating Equipment Co., Ltd. 1,013,933.83
Hefei Royalstar Refrigerator Co., Ltd. 206,182.52
Payable to the related parties
Unit: RMB Yuan
Item Name of related parties Closing amount Opening amount
Huai'an Welling Motor Manufacturing Co., Ltd. 40,796,633.78 66,518,916.19
Hefei Midea Materials Supply Co., Ltd. 10,259,205.33 26,951,123.97
Hefei Bainian Molding Technology Co., Ltd. 18,411,746.39 16,807,415.87
121
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Wuhu Bainian Technology Development Co., Ltd. 22,600.00 3,553,500.18
Foshan Bainian Technology Development Co., Ltd. 234,600.00
Hefei Huitong New Materials Co., Ltd. 26,156,878.79 2,061,078.86
Zhongshan Midea Environmental Electric Engineering
633,832.00 228,417.39
Products Installation Service Co., Ltd.
Guangdong Zhengli Precision Machinery Co., Ltd. 122,100.00 112,100.00
Wuhu Annto Logistics Co. Ltd. 681,649.55 681,649.55
Ningbo Annto Logistics Co. Ltd. 2,134,712.61
Little Swan (Jingzhou) Electronic Appliances Co.,
226,577.45
Ltd.
Wuxi Huayin Electric Appliances Co., Ltd. 2,081,473.92
(Ⅹ)Stock payment
1. Overall condition of stock payment
Total amount of equity instruments granted by the company in
current period
Total amount of equity instruments executed by the company in
current period
Total amount of equity instruments of the company that become
invalid in current period
The range of the vesting prices for the share options issued
outward at the end of period, and the remainder of the contractual
period
The range of the vesting prices for the other equity instruments at
the end of period, and the remainder of the contractual period
Note to particular about stock payment
None.
2. Particular about stock payment settled by equity
Unit: RMB Yuan
Method to determine the fair value of the equity
instruments at the date of granting
Method to determine the best estimation to the quantity
of the executable equity instruments
Reason of the significance difference between the
estimations in current period and last period
The accumulated amount of the stock payment settled
by equity in capital reserve
Total amount confirmed by stock payment settled by
122
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
equity
Note to stock payment settled by equity
None.
3. Particulars about stock payment settled by cash
Unit: RMB Yuan
Method to determine the fair value of the liabilities of the
company that are calculated on the basis of stock or other
equity instruments
The accumulated amount of liabilities arising from stock
payment settled by cash
The total amount confirmed by stock payment settled by
cash
Note to stock payment settled by cash
None.
4. Particulars about services gained by stock payment
Unit: RMB Yuan
Total amount of employee service gained by stock
payment
Total amount of other services gained by stock payment
5. Particulars about modification and termination of stock payment
(XI) Contingencies
1. The contingent liability and its financial impact arising from pending litigation or arbitration
As of June 30, 2012, no significant contingencies should be disclosed.
2. The contingent liability and its financial impact arising from providing debt guarantees to other
units
As of June 30, 2012, no significant contingencies should be disclosed.
Other contingent liabilities and their financial impacts:
(XII) Commitments
1. Significant commitments
As of June 30, 2012, no significant commitments should be disclosed.
2. Fulfillment of early commitments
As of June 30, 2012, no significant commitments should be disclosed.
(XIII) Events after the balance sheet date
1. Note to significant events after the balance sheet date
Unit: RMB Yuan
Extent of impact on the
Reason why the extent of
Item Content financial condition and
impact cannot be estimated
operating results
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WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
2. Note to particulars about profit distribution after the balance sheet date
Unit: RMB Yuan
Profits or dividends to be distributed
Profits or dividends issued after approval
3. Other events after the balance sheet date
As of June 30, 2012, no other significant commitment issues should be disclosed.
(XIV) Particulars about other significant events
1. Non-monetary asset exchange
As of June 30, 2012, no other significant commitment issues should be disclosed.
2. Debt restructuring
As of June 30, 2012, no other significant commitment issues should be disclosed.
3. Consolidation of enterprise
As of June 30, 2012, no other significant commitment issues should be disclosed.
4 Lease
As of June 30, 2012, no other significant commitment issues should be disclosed.
5. Financial instruments that are issued outward at the end of period and can be transferred to
shares
As of June 30, 2012, no other significant commitment issues should be disclosed.
6. Contents and major changes in annuities
As of June 30, 2012, no other significant commitment issues should be disclosed.
7. Other significant events should be disclosed
As of June 30, 2012, no other significant commitment issues should be disclosed.
(XV)Notes to the financial statements of parent Company
1．Accounts receivable
（1） Accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad Provision for bad
Book value Book value
Items debts debts
Propor Propo Proport Propor
Amount Amount Amount Amount
tion rtion ion tion
Account receivable
with large individual
0.00 0% 0.00 0% 0.00 0% 0.00 0%
amount and provision
for bad debt
Account receivable with consolidated provision for bad debt
Consolidation 1: aging 398,804,241. 53.29 389,054,823. 20,278,446.
23,139,452.72 5.8% 53.44% 5.21%
consolidation 64 % 78 25
124
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Consolidation 2:
account received in the 348,570,863. 46.57 337,932,558.
46.42%
range of consolidated 47 % 05
statements
Subtotal of 747,375,105. 99.86 726,987,381. 20,278,446.
23,139,452.72 3.1% 99.85% 2.79%
consolidation 11 % 83 25
Account receivable
with small individual 81.53 57.39
1,056,206.22 0.14% 861,084.03 1,056,206.22 0.15% 606,206.42
amount and provision % %
for bad debt
748,431,311. 728,043,588. 20,884,652.
Total -- 24,000,536.75 -- -- --
33 05 67
Note to type of account receivable:
None.
Account receivable with large individual amount and provision for bad debt at the end of period
□ Applicable √ Not applicable
Account receivable in the consolidation with provision for bad debt by aging analysis method:
√ Applicable □ Not applicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Aging Provision for Provision for
Proportio Proportio
Amount bad debts Amount bad debts
n n
Within 1 year
Included: -- -- -- -- -- --
Within 1 year 729,058,604.99 97.55% 21,297,922.65 710,670,881.71 97.76% 18,636,916.18
1-2 years 18,217,699.58 2.44% 1,821,769.96 16,217,699.58 2.23% 1,621,769.96
2-3 years 98,800.54 0.01% 19,760.11 98,800.54 0.01% 19,760.11
Over 3 years
3-4 years
4-5 years
Over 5 years
Total 747,375,105.11 -- 23,139,452.72 726,987,381.83 -- 20,278,446.25
Account receivable in the consolidation with provision for bad debt by balance percentage method:
□ Applicable √ Not applicable
Account receivable in the consolidation with provision for bad debt by other method:
□ Applicable √ Not applicable
Account receivable with small individual amount and provision for bad debt at the end of period
125
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
□ Applicable √Not applicable
(2)Particulars about account receivable returned or withdrawn in the reporting period
Unit: RMB Yuan
Accumulated amount
Foundation to
Content of account Reason of return or of provision for bad Amount returned or
confirm provision
receivable withdrawal debt before return or withdrawn
for bad debt
withdrawal
Total -- -- --
Provision for bad debt of account receivable with large individual amount, or with small individual
amount and devaluation test at the end of period:
Content of account
Book balance Amount of bad debt Proportion (%) Reason
receivable
Total -- --
Note to account receivable with small individual amount and with high risk after being consolidated
according to credit risk characteristics:
(3)Particulars about account receivable actually written off in the reporting period
Unit: RMB Yuan
Whether or not
Type of account Time of writing Amount of Reason of writing
Company name due to related
receivable off writing off off
transactions
Total -- -- 0.00 -- --
Note to writing off account receivable:
(4)Particulars about the shareholder units holding 50% or more voting shares in the account
receivable within the reporting period
□Applicable √Not applicable
(5)Type or content of other account receivables with large amount
None.
(6)Top 5 companies with largest amount of account receivable
Unit: RMB Yuan
Proportion in total amount
Company name Relationship Amount Year limit
of account receivable (%)
Suning Appliance Co., Ltd. Nanjing Non-related 38,917,503.28 Within 1 5.2%
126
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Purchase Office party year
TOSHIBA INTERNATIONAL Non-related Within 1
31,096,783.42 4.15%
PROCUREME party year
Beijing Midea Refrigerating Products Non-related Within 1
30,365,732.20 4.06%
Sales Co., Ltd. party year
Non-related Within 1
Kronen Internacional S.A. 27,619,466.94 3.69%
party year
Shanghai Midea Refrigerating Products Non-related Within 1
24,345,258.05 3.25%
Sales Co., Ltd. party year
152,344,743.8
Total -- -- 20.36%
9
(7)Account receivable from related parties
Unit: RMB Yuan
Proportion in total amount
Company name Relationship Amount
of account receivable (%)
Total -- 0.00 0%
(8) The amount of transfer of the account receivable not conforming to termination confirmation
condition is 0.00 Yuan.
(9) The relevant transaction arrangements should be explained if the assets targeted with account
receivable are securitized.
None.
2. Other receivables
(1) Other receivables
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad Provision for bad
Book value Book value
Items debts debts
Proporti Proport Proport
Amount Proportion Amount Amount Amount
on ion ion
Other receivables with
large individual amount
0.00 0% 0.00 0% 0.00 0% 0.00 0%
and provision for bad
debt
Other receivables with consolidated provision for bad debt
Consolidation 1: aging 20,310,391. 58.46% 2,183,487.4 10.75% 14,162,247. 45.56% 2,241,696.5 15.83%
127
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
consolidation 42 1 81 9
Consolidation 2: other
receivables in the range 14,432,938. 14,432,938. 16,925,787. 16,915,989.
41.54% 100% 54.44% 99.94%
of consolidated 18 18 41 39
statements
34,743,329. 16,616,425. 31,088,035. 19,157,685.
Subtotal of consolidation 100% 47.83% 100% 61.62%
60 59 22 98
Other receivables with
small individual amount
0.00 0.00 0.00 0.00
and provision for bad
debt
34,743,329. 16,616,425. 31,088,035. 19,157,685.
Total -- -- -- --
60 59 22 98
Note to type of other receivables:
None.
Other receivables with large individual amount and provision for bad debt at the end of period:
□Applicable √ Not applicable
Other receivables in the consolidation with provision for bad debt by aging analysis method:
√ Applicable □ Not applicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Aging Provision for Provision for
Proportio Proportio
Amount bad debts Amount bad debts
n n
Within 1 year
Included: -- -- -- -- -- --
Within 1 year 7,776,504.66 22.38% 388,825.23 12,731,633.95 40.95% 3,074,737.08
1-2 years 8,610,423.67 24.78% 861,042.37 4,752,107.23 15.29% 3,524,525.94
2-3 years 15,312,973.57 44.07% 13,519,001.37 10,960,866.34 35.26% 10,960,866.34
Over 3 years 3,014,677.70 8.68% 1,818,806.62 2,614,677.70 8.41% 1,568,806.62
3-4 years
4-5 years
Over 5 years 28,750.00 0.08% 28,750.00 28,750.00 0.09% 28,750.00
Total 34,743,329.60 -- 16,616,425.59 31,088,035.22 -- 19,157,685.98
Other receivables in the consolidation with provision for bad debt by balance percentage method:
□ Applicable √ Not applicable
Other receivables in the consolidation with provision for bad debt by other methods:
□ Applicable √Not applicable
128
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Other receivables with small individual amount and provision for bad debt at the end of period:
□ Applicable √Not applicable
(2) Particulars about other receivables returned or withdrawn in the reporting period
Unit: RMB Yuan
Accumulated amount
Foundation to
Content of other Reason of return or of provision for bad Amount returned or
confirm provision
receivables withdrawal debt before return or withdrawn
for bad debt
withdrawal
Total -- -- --
Provision for bad debt of other receivables with large individual amount, or with small individual amount
and devaluation test at the end of period:
Content of account
Book balance Amount of bad debt Proportion(%) Reason
receivable
Total -- --
Note to other receivables with small individual amount and with high risk after being consolidated
according to credit risk characteristics:
(3) Particulars about other receivables actually written off in the reporting period
Unit: RMB Yuan
Whether or not
Type of other Time of writing Amount of Reason of writing
Company name due to related
receivables off writing off off
transactions
Total -- -- -- --
Note to writing off other receivables:
None.
(4) Particulars about the shareholder units holding 50% or more voting shares in other receivables
within the reporting period
□Applicable √Not applicable
(5) Type or content of other receivables with large amount
None.
(6)Top 5 companies with largest amount of other receivables
Unit: RMB Yuan
Year Proportion in total amount
Company name Relationship Amount
limit of account receivable(%)
Wuxi Little Swan Ceramics Co., Ltd. Stock right 2,386,444.3 4-5 years 6.87%
129
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
transfer 8
Industrial and Commercial Bank of China
Beijing Branch Partner 900,000.00 2-3 years 2.59%
Special Account for Asset Custody
Governmental
Wuxi Customs of P.R.C. 711,000.00 1-2 years 2.05%
department
Within
Wuxi China Resources Gas Co., Ltd. Partner 639,184.85 1.84%
one year
Tianjin Boxincheng International Trade Co., Within
Partner 310,833.00 0.89%
Ltd. one year
4,947,462.2
Total -- -- 14.24%
3
(7) Other account receivables from related parties
Unit: RMB Yuan
Proportion in total amount
Company name Relationship Amount
of account receivable(%)
Total --
(8) The amount of transfer of the other receivables not conforming to termination confirmation
condition is 0.00 Yuan
(9) The relevant transaction arrangements should be explained if the assets targeted with other
receivables are securitized.
None.
130
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
3. Long-term equity investments
Unit: RMB Yuan
Proportion Accurred
Amount of Initial Invested Proportions of Impairment Cash
Invested entities Method Opening amount Increase/decrease Closing amount of voting impairment
investment entities shareholding(%) provision dividends
rights(%) provision
Guangzhou Antaida Equity
2,000,000.00 3,428,851.75 50,887.51 3,479,739.26 20% 20%
Logistical Co., Ltd. method
Wuxi Little Swan
Cost
Import & Export Co. , 57,500,000.00 57,500,000.00 57,500,000.00 88.46% 88.46%
method
Ltd
Wuxi Little Swan
Cost
Washing Machine Co. , 37,259,587.50 37,259,587.50 37,259,587.50 75% 75%
method
Ltd.
Wuxi Meitian
Cost
Refrigerator Marketing 24,840,000.00 24,840,000.00 24,840,000.00 75% 75%
method
and Sale Co., Ltd.
Jiangsu Little Swan
Cost
Marketing and Sales 417,550,000.00 417,550,000.00 417,550,000.00 99.54% 99.54%
method
Co. , Ltd.
Wuxi Filin Electronics Cost
19,620,041.50 25,660,308.10 25,660,308.10 73% 73%
Co. , Ltd. method
Wuxi Little Swan
Cost
General Electric 19,600,000.00 19,600,000.00 19,600,000.00 70% 70%
method
Appliances Co. , Ltd.
131
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
San Jin(Jing Zhou)
Cost
Electrical Appliances 11,869,431.12 11,869,431.12 11,869,431.12 100% 100%
method
Co. , Ltd.
Wuxi Little Swan
Driving & Control Cost
4,500,000.00 4,500,000.00 4,500,000.00 90% 90%
Development method
Technology Co. , Ltd.
Little Swan
Cost
International(Singapore) 34,052,500.00 34,052,500.00 34,052,500.00 100% 100%
method
Co., Ltd.
Hefei Royalstar
Washing Machine Cost
830,962,252.35 830,962,252.35 830,962,252.35 69.47% 69.47%
Equipment method
Manufacturing Co., Ltd.
Tianjin Little Swan
Cost
Washing Machine Co. , 200,000,000.00 200,000,000.00 200,000,000.00 100% 100%
method
Ltd.
(Malaysia) Midaqi
Cost
Little Swan Industry 4,224,744.00 51% 51%
method
Co., Ltd.
Hengtai Insurance Cost
1,000,000.00 1,000,000.00 1,000,000.00 3.33% 3.33%
Brokers Co., Ltd. method
Suzhou People's Cost
150,000.00 150,000.00 150,000.00
Shopping Mall(100,000 method
132
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
shares)
Bank of
Cost
Jiangsu(2,202,564 1,100,000.00 1,210,000.00 1,210,000.00
method
shares)
Total -- 1,666,228,556.47 1,669,582,930.82 50,887.51 1,669,633,818.33 -- -- -- 4,224,744.00 0.00 0.00
133
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Note to long-term equity investments
4. Operating revenues and costs
(1) Operating revenues, operating costs
Unit: RMB Yuan
Item Amount of current period Amount of last period
Revenue from main
1,729,468,582.51 4,036,124,263.71
business
Revenue from other
165,705,963.74 467,383,331.47
business
Operating costs 1,709,218,976.13 4,351,260,566.76
Total
(2) Main business(by industry)
□ Applicable √Not applicable
(3) Main business(by product)
□ Applicable √Not applicable
(4) Main business(by region)
□Applicable √Not applicable
(5) Operating revenues of the top 5 clients of the company
Unit: RMB Yuan
Total operating Proportion in total
Name of client
revenues operating revenue(%)
Midea Electric Trading(Singapore) Co. Pte Ltd 411,678,787.98 21.72%
Kronen Internacional S.A. 57,696,354.34 3.04%
UNIVERSAL CO.FOR METAL AND SUPPORTING
43,789,703.60 2.31%
INDUSTRIES
Guizhou Midea Refrigerating Product Sales Co., Ltd. 41,813,871.07 2.21%
Hunan Midea Refrigerating Product Sales Co., Ltd. 41,793,586.03 2.21%
Total 596,772,303.02 31.49%
Note to operating revenues
None.
5. Investment income
(1) Details of investment income
Unit: RMB Yuan
Item Amount of current period Amount of last period
Income from long-term equity investment
163,405.12 36,696,000.00
calculated by cost method
Income from long-term equity investment 50,887.51 -1,078,070.63
134
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
calculated by equity method
Investment income from disposal of
27,215,984.89
long-term equity investment
Investment income gained during the period
of holding transaction financial assets
Investment income gained during the period
of holding the held-to-maturity investment
Investment income gained during the period
of holding marketable financial assets
Investment income from disposal of
3,013,700.00 9,483,183.00
transaction financial assets
Investment income from held-to-maturity
investment
Investment income from marketable financial
assets
Others
Total 3,227,992.63 72,317,097.26
(2) Income from long-term equity investment calculated by cost method
Unit: RMB Yuan
Reason of
Amount of Amount of last
Invested company increase/decrease in current
current period period
period
Suzhou People’s Department
40,000.00 30,000.00
Store
Commercial Bank of Jiangsu 123,405.12
Wuxi Little Swan General
36,666,000.00
Electric Appliances Co. , Ltd.
Total 163,405.12 36,696,000.00 --
(3) Income from long-term equity investment calculated by equity method
Unit: RMB Yuan
Reason of
Amount of Amount of last
Invested company increase/decrease in current
current period period
period
Guangzhou Antaida Logistical
50,887.51 -158,936.44
Co., Ltd.
Boxiwei Home Appliance Co.,
-919,134.19
Ltd.
Total 50,887.51 -1,078,070.63 --
135
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Note to investment income:
None.
6. Appendix of Cash Flow Statement
Unit: RMB Yuan
Amount of this Amount of last
Item
period period
1. Reconciliation of net profit to net cash flows
-- --
generated from operating activities
Net profit 173,396,155.41 200,647,366.29
Add: Provision for impairment of assets -13,852.04 12,206,134.25
Depreciation of fixed assets, of oil-gas assets, of productive
24,461,367.47 27,731,719.58
biological assets
Amortization of intangible assets 1,402,556.16 1,424,556.18
Amortization of long-term deferred expense 13,639,702.36 11,733,662.41
Losses on disposal of property, plant and equipment,
intangible assets and other -5,449,947.67 -13,783,890.63
long-term assets(gains: negative)
Loss on retirement of fixed assets(gains: negative)
Financial cost(gains: negative) 2,668,300.00 -8,843,355.56
Investment loss(gains: negative) 425,127.33
Decrease in deferred income tax assets(gains: negative) -3,227,992.63 -72,317,097.26
Increase in deferred income tax liabilities(decrease:
14,421,731.43 -24,259,297.67
negative)
Decrease in inventory(gains: negative) -400,245.00 1,326,503.33
Decrease in accounts receivable from operating
96,058,899.86 32,651,234.06
activities(gains: negative)
Increase in payables from operating activities(decrease:
1,096,344,881.03 -1,807,997,391.86
negative)
Other -662,253,362.78 1,104,573,220.37
Net cash flows generated from operating activities
II. Investing and financing activities that do not
involving 751,048,193.61 -534,481,509.17
cash receipts and payment:
Conversion of debt into capital -- --
Convertible bond due within one year
Fixed assets financed by finance leases
III. Net increase in cash and cash equivalents
136
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
Closing balance of cash -- --
Less: Opening balance of cash 2,049,502,496.94 1,041,142,810.24
Closing balance of cash equivalents 1,470,854,364.19 1,492,995,931.54
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 578,648,132.75 -451,853,121.30
7. Assets and liabilities recorded as assessed value under counter purchase
Unit: RMB Yuan
Name of the assets and liabilities recorded as
Assessed value Original book value
assessed value
Assets
Liabilities
(XVI) Supplementary information
1. Return on equity and earnings per share
Unit: RMB Yuan
Weighted average Earnings per share
Profits in the reporting period
return on equity(%) Basic EPS Diluted EPS
Net profits belonging to
6.09% 0.34 0.34
shareholders of common shares
Net profits belonging to
shareholders of common shares
5.71% 0.32 0.32
after deducting non-recurring profit
and loss
2. Main items in the accounting statements and movements thereof:
Unit: RMB Ten thousand
30 Jun. 31 Dec. Reasons for
Item Increase/decreaseIncrease/decrease
2012 2011 movement
Monetary fund 70,549.93 29% Collections from
312,094.96 241,545.04 due notes
receivable
increased
Transaction - -429.23 -100% Foreign exchange
monetary assets 429.23 long-term
137
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
contracting
business due
Notes receivable -175,604.24 -64% Collections from
100,188.16 275,792.40 due notes and
endorsement
increased
Other receivables 333.86 21% Non-operating
1,888.70 1,554.84 receivables and
temporary
payments
increased
Inventory -18,658.18 -23% Operating risk
62,281.89 80,940.07 reduced and
inventory scale
controlled
Other current -5,020.29 -45% Production molds
assets 6,184.97 11,205.27 amortized and
devaluated
Construction in - 495.46 Construction of
process 495.46 foundation and
wastewater
treatment system
of the industrial
park in process
Short-term - -696.15 -100% Borrwoings due
borrowing 696.15
Notes payable -40,779.71 -26% Self-issued bank
113,152.24 153,931.95 acceptance due
and paid
Accounts -79,189.46 -28% Payment due and
payable 202,359.36 281,548.82 paid
Advance -12,730.36 -26% Advance from
received from 35,845.04 48,575.40 customers reduced
customers due to impact of
financial
equipment and
marketing circle
Payroll payble -3,816.89 -28% Annual
9,731.17 13,548.07 performance
award of 2011
paid and payroll
138
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
payable reduced
Tax payble -5,097.61 -3482% Tax payable
-4,951.22 146.39 reduced due to
impact of
production and
marketing circle
Dividends payble 87.21 31% Dividends of 2011
371.02 283.81 not paid to certain
shareholders
Deferred income 1.92 -65.23 -97% Fair value of
tax liabilities 67.15 transaction
financial assets
and marketable
finical assets
reduced
Operating -364,618.54 -54% Sales value of
revenues 310,132.87 674,751.41 product reduced
due to impact and
market
Operating costs -315,791.93 -56% Reduced along
245,388.06 561,179.98 with the sales
value
Sales expenses -24,027.70 -46% Reduced along
28,384.46 52,412.16 with the sales
value
Management -11,635.72 -48% Operating risk
expenses 12,362.49 23,998.21 reduced, expense
control enforced,
and expense
effectively
decreased
Financial -3,165.18 -2847% Income from
expenses -3,054.00 111.18 deposit interest
increased
Loss from -277.26 -50% Bad debts
impairment of 275.93 553.20 decreased
assets comparing to the
same period of last
year
Income from -1,598.14 -137% Income from
change in fair -429.23 1,168.91 change in fair
139
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
value value of foreign
exchange
long-term contract
reduced
Income from -2,454.91 -83% Income gained
investments 506.28 2,961.19 from disposal of
subsidiary Huayin
Motor during the
same period last
year
Non-operating -1,675.31 -47% Government
revenues 1,906.07 3,581.38 subsidies and
income from
disposal of fixed
assets decreased
comparing to same
period of last year
Non-operating -484.55 -57% Local expenses
expenses 368.74 853.30 reduced along with
decrease of sales
value
Total profit -14,956.89 -36% Total profits
26,817.13 41,774.02 reduced along with
decrease of sales
value
Income tax -5,040.63 -60% Reduced along
expense 3,402.91 8,443.54 with total profits
Net profit -9,916.26 -30% Reduced along
23,414.22 33,330.48 with total profits
Minority interest -3,505.23 -66% Profits of
1,791.41 5,296.63 non-wholly owned
subsidiaries
decreased
comparing to same
period of last year
Other 7.17 81.81 110% Translation reserve
comprehensive -74.64 reduced
incomes
Net cash flows 141,843.84 279% Cash paid for
from operating 90,943.76 -50,900.08 purchasing goods
activities and receiving labor
140
WUXI LITTLE SWAN COMPANY LIMITED INTERIM REPORT 2012
reduced in current
period
Net cash flows 4,788.62 39% Cash paid for
from investment -7,588.90 -12,377.52 purchasing fixed
activities assets reduced in
current period
Net cash flows -7,955.28 -173% Cash paid for
from financing -12,562.01 -4,606.72 dividend
activities distribution
increased
IX. Documents Available for Reference
Documents Available for Reference
1. Text of the Interim Report 2011 with the signature of the Chairman of the Board of Directors.
2. Accounting statements with signatures and seals of the legal representative, the chief financial
officer and the head of accounting.
3. Originals of all documents and announcements of the Company ever disclosed on Securities
Times and Hong Kong Ta Kung Pao in the reporting period.
Chairman of the Board: Fang Hongbo
23 August, 2012
141
