WUXI LITTLE SWAN COMPANY LIMITED
THE THIRD QUARTERLY REPORT FOR 2012
I. Important Notes
The Board of Directors, the Supervisory Committee, 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 take individual and/or joint responsibility for the
authenticity, accuracy and completeness of all contents set forth herein.
All directors attended the board session for reviewing this report.
Chairman of the Board Mr. Fang Hongbo, General Manager Mr. Chai Xinjian, CFO Ms. Xiao Li and Chief of the
Financial Department Mr. Zhong Fangliu hereby confirm that the financial report enclosed in the third quarterly
report is true and complete.
II. Company Profile
（I）Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
□ Yes √ No □ Inapplicable
30 Sept. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (RMB Yuan) 8,431,600,651.87 9,145,185,476.94 -7.8%
Owners’ equity attributable to
shareholders of the Company 3,626,318,818.11 3,441,144,937.45 5.38%
(RMB Yuan)
Share capital (share) 632,487,764.00 632,487,764.00 0%
Net assets per share
attributable to shareholders of
5.73 5.44 5.38%
the Company (RMB
Yuan/share)
YoY increase/decrease YoY increase/decrease
Jul.-Sept. 2012 Jan.-Sept. 2012
(%) (%)
Gross operating revenues
1,473,789,609.57 -43.71% 4,575,118,340.72 -51.15%
(RMB Yuan)
Net profit attributable to
shareholders of the Company 95,335,283.53 -32.84% 311,563,419.10 -26.22%
(RMB Yuan)
Net cash flow from operating
-- -- 646,968,839.81 -14.84%
activities (RMB Yuan)
Net cash flow per share from
operating activities (RMB -- -- 1.02 -14.84%
Yuan/share)
Basic EPS (RMB Yuan/share) 0.15 -33.16% 0.49 -26.61%
Diluted EPS (RMB
0.15 -33.16% 0.49 -26.61%
Yuan/share)
Weighted average ROE (%) 2.66% -1.38% 8.66% -4.26%
Weighted average ROE after
deducting non-recurring gains 2.50% -0.05% 8.12% -2.47%
and losses (%)
1
Items of non-recurring gains and losses
√Applicable □Inapplicable
Item Amount during Jan.-Sept. 2012 (RMB Yuan) Notes
Gains and losses on disposal of non-current assets 8,570,868.84
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
8,820,659.41
certain quotas or amounts according to the country’s 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
7,478,592.43
above
Other gain and loss items that meet the definition of
non-recurring gains and losses
Minority interests effects -1,768,335.74
Income tax effects -3,589,822.97
Total 19,511,961.97 --
2
“Other gain and loss items that meet the definition of non-recurring gains and losses” & non-recurring gain and
loss items recognized as recurring gain and loss items according to the natures and characteristics of the
Company’s normal business
Involved amount (RMB
Item Notes
Yuan)
（II）Total number of shareholders and top 10 shareholders at the period-end
Total number of shareholders 39,046
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable Type and number of shares
Name of shareholder shares held at
period-end Type Number
Domestically listed
GAOLING FUND,L.P. 51,908,407 51,908,407
foreign shares
FINANCE BUREAU OF WUXI 22,057,657 RMB ordinary shares 22,057,657
Domestically listed
BOCI SECURITIES LIMITED 20,976,486 20,976,486
foreign shares
Domestically listed
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 13,011,997 13,011,997
foreign shares
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 102 11,974,678 RMB ordinary shares 11,974,678
SUN HUNG KAI INVESTMENT SERVICES Domestically listed
6,986,181 6,986,181
LTD-CUSTOMERS A/C foreign shares
CHINA CONSTRUCTION BANK－PENGHUA VALUE
6,933,828 RMB ordinary shares 6,933,828
ADVANCED STOCK FUND
CHINA CONSTRUCTION BANK-CHINAAMC GLOBAL
6,385,623 RMB ordinary shares 6,385,623
SELECTED STOCK FUND
GD MIDEA HOLDING CO., LTD. 6,319,556 RMB ordinary shares 6,319,556
Domestically listed
UBS CUSTODY SERVICES SINGAPORE PTE. LTD. 5,965,705 5,965,705
foreign shares
GD MIDEA HOLDING CO., LTD. holds 222,661,571 A-shares of
Notes of particulars of shareholders
the Company, of which 6,319,556 shares are tradable shares.
III. Significant Events
（I）Significant changes in major accounting data, financial highlights and reasons for these
changes
√Applicable □Inapplicable
This period
Increase/decr
Statement items This period Last period minus last Reasons
ease (%)
period
Transactional Foreign exchange forward contracts reached
28.12 429.23 -401.11 -93%
financial assets maturity.
Mature notes were settled and endorsed payments
Notes receivable 155,633.04 275,792.40 -120,159.35 -44%
were made.
Inventory 113,512.96 80,940.07 32,572.89 40% Due to the production and sale cycle
Production molds were amortized and the value
Other current assets 4,474.65 11,205.27 -6,730.62 -60%
decreased.
Available-for-sale Fair value changes of available-for-sale financial
17.64 28.46 -10.82 -38%
financial assets assets
3
Construction in The foundation work of the industrial park is in
427.13 - 427.13
process progress.
Long-term deferred Production molds were amortized and the value
3,474.85 5,275.49 -1,800.64 -34%
expenses decreased.
Short-term
- 696.15 -696.15 -100% Mature borrowings were paid off.
borrowings
Taxes and fares
-3,276.29 146.39 -3,422.67 -2338% Due to the production and sale cycle
payable
Dividends for 2011 were paid in this period and
Dividend payable 371.02 283.81 87.21 31%
some shareholders were unpaid.
Deferred income tax The fair value of transactional and available-for-sale
5.36 67.15 -61.79 -92%
liabilities financial assets decreased.
Affected by the industry and market environment,
Operating revenues 457,511.83 936,577.16 -479,065.33 -51%
the sales volume decreased.
Decreased along with the decrease of the sales
Operating costs 356,685.50 782,325.23 -425,639.74 -54%
income
Administrative The Company reduced operating risks and enhanced
18,888.64 31,242.09 -12,353.45 -40%
expenses cost control.
Financial expenses -5,190.64 197.56 -5,388.20 -2727% Increase of saving interest income
Asset impairment Accounts receivable decreased over the same period
-472.14 2,385.29 -2,857.43 -120%
loss of last year.
Gains on fair value Gains on fair value changes of foreign exchange
-401.11 877.74 -1,278.85 -146%
changes forward contracts decreased.
In the same period of last year, there were some
Investment income 535.70 6,500.87 -5,965.17 -92%
gains on subsidiary disopsal.
Non-operating Governmental subsidies and gains on fixed asset
2,750.17 曎z 6,008.08 -3,257.91 -54%
income disposal both decreased.
Non-operating Local fees decreased accordingly as the sales
539.94 1,165.81 -625.87 -54%
expense income decreased.
Income tax 5,043.42 11,556.92 -6,513.50 -56% Decreased along with the total profit
Minority shareholder Profit from non-wholly-funded subsidiaries
1,296.10 7,667.75 -6,371.65 -83%
income decreased on a year-on-year basis.
Other
Translation difference of foreign-currency
comprehensive 10.80 -138.30 149.10 108%
statements decreased.
income
Net cash flows from
-10,103.99 -15,721.43 5,617.44 36% Cash paid to acquire fixed assets decreased.
investing activities
Net cash flows from
-12,562.01 -7,532.12 -5,029.89 -67% Cash paid for dividends increased.
financing activities
（II）Progress of significant events and its influence, as well as the analysis and explanation on
solutions
1. About non-standard audit opinion
□Applicable √Inapplicable
2. The Company offers capital to the controlling shareholder or its related parties or provides
external guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
4
3. Signing and execution of significant contracts concerning routine operation
□Applicable √Inapplicable
4. Others
□Applicable √Inapplicable
（III）Commitments of the Company or shareholders with an over 5% shareholding made in or carried
down into the reporting period
√Applicable □Inapplicable
Time
Com
of Period
mit
makin of Fulfil
Commitment ment Contents
g commi lment
mak
commi tment
er
tment
Cont Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea Holding) In the
rolli plans to sell the Company’s shares released from trading moratorium held by it via proce
28
Commitment on ng the bid trading system of the Shenzhen Stock Exchange, and Midea Holding ss of
Feb.
share reform shar decreases over 5% shares within six months since the first reduction of holdings, imple
2008
ehol Midea Holding will disclose the suggestive announcement on share selling through menta
der the Company two trading days before its first reduction of holdings. tion
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.
Cont
3. As for the commitment for regulating related-party transactions, GD
rolli
Midea Holding (the controlling shareholder) and Mr. He Xiangjian (the actual
ng
controller) have promised that when there are inevitable related-party transactions
shar In the
Commitment in or such transaction incurred with rational reasons after the completion of the
ehol proce
the acquisition transaction, they will follow the fair, reasonable and market principles in
der 1 Dec. ss of
report or the formulating and signing relevant agreements on such related-party transactions and
and 2010 imple
report on equity ensure that no harm will be done to interests of the Company and other
actu menta
changes shareholders. Where GD Midea Holding and Mr. He Xiangjian act against the
al tion
promise above and damage interests of the Company and other shareholders, they
cont
will assume liabilities for compensation according to relevant provisions.
rolle
r 4. As for the commitment on independence, GD Midea Holding has promised to
protect Little Swan’s independence in terms of assets, staff, finance, organization
and business.
5. As for the commitment on related-party deposits and borrowings, up to 8
Apr. 2010, the Financial Settlement Center of GD Midea Holding had settled all
internal deposits and borrowings with Hefei Royalstar Washing Equipment
Manufacturing Co., Ltd.; and GD Midea Holding has promised that there will be no
more deposits, borrowings or other funds flows incurred between the Financial
Settlement Center and Hefei Royalstar Washing Equipment Manufacturing Co.,
Ltd..
6. The commitment by GD Midea Holding on housing properties with no
ownership certificates of the target company for sale is detailed as follows. Two
pieces of the buildings of Royalstar Washing Equipment assessed and sold to the
Company are of no ownership certificates—the warehouse for half-finished
5
products (176 square meters) and the workshop for injection molding (834 square
meters), both located in the old factory of Royalstar Washing Equipment, Hewa
Road, Hefei. GD Midea Holding has promised that if loss occurs due to the said
two buildings without ownership certificates in the asset disposal process in the
future, it will assume the loss thus caused and make compensation to the Company.
7. The commitment by GD Midea Holding on trademarks is detailed as
follows. (1) Concerning the “Midea” trademark: Upon approval and
implementation of the equity transfer transaction, GD Midea Holding has promised
that it will make sure that Royalstar Washing Equipment uses the “Midea”
trademark in a proper manner. Royalstar Washing Equipment will be allowed to use
the “Midea” trademark with a trademark use fee not more than that paid by Midea
Group (the controlling shareholder of GD Midea Holding) and its subsidiaries
(currently 3‰ of the annual sales income generated by products using the “Midea”
trademark), and upon negotiation and signing of the “Agreement for Trademark
Use”. The related-party transactions incurred due to the said use of the “Midea”
trademark will be submitted to the decision-making organ of the Company for
approval according to the stipulated procedure. As such, interests of the Company
and its minority shareholders will be safeguarded. (2) Concerning the “Royalstar”
trademark: GD Midea Holding has signed the “Contract for Trademark Use” with
Royalstar Group and obtained the ordinary use rights of the “Royalstar” (or “荣事
达”) trademark. As the transferor in the transfer transaction of equity interests of
Royalstar Washing Equipment, GD Midea Holding has promised that within the
scope as agreed in the “Contract for Trademark Use”, if any dispute arises between
Royalstar Washing Equipment and Royalstar Group over the former’s execution of
the “Contract for Trademark Use”, Little Swan will not be involved. If Royalstar
Washing Equipment and Little Swan have to assume any responsibility or loss due
to the aforesaid dispute, GD Midea Holding is willing to take on the responsibility
instead and make compensations to Royalstar Washing Equipment and Little Swan
at full amount.
8. The commitment by GD Midea Holding on social security payment and tax
risks is detailed as follows. GD Midea Holding has promised that upon the
completion of the said equity transfer deal, if Royalstar Washing Equipment is
obliged to take on any responsibility or pay relevant fares as required by relevant
government authorities due to its social security payment before the said deal, GD
Midea Holding is willing to pay relevant fares for Royalstar Washing Equipment to
relevant government authorities in a timely manner and assume any other liability.
If any loss thus occurs to Royalstar Washing Equipment or Little Swan, GD Midea
Holding is willing to assume relevant responsibilities for compensation. Upon the
completion of the said equity transfer deal, if income tax evasion or any other tax
risk is found in Royalstar Washing Equipment, GD Midea Holding is willing to
assume relevant legal responsibilities and risks and pay relevant taxes in a timely
manner to relevant government authorities; and if any loss thus occurs to Little
Swan, GD Midea Holding will assume the corresponding responsibility for
compensation.
Commitments
made in an asset
exchange
Commitments
made in share
issuance
Other
commitments
made to minority
shareholders
Executed timely
√Yes □No □Inapplicable
or not?
Detailed reason
for failing to
Inapplicable
execute and the
next plan
Make
commitments on √Yes □No □Inapplicable
causing the
problems of
6
horizontal
competition and
related-party
transactions or
not?
Settlement period
Naught
of commitment
When the Company’s controlling shareholder and actual controller remains unchanged, GD Midea Holding, Mr.
He Xiangjian and other subsidiary companies under their control excluding the Company and the Company’s
subordinate companies will not increase business or establish new subsidiary companies engaged in business
which is the same with or similar to the Company’s main business or forms substantial horizontal competition
Way of settlement
with the Company; when there 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 strictly
commitment
（IV）Predict the 2012 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the
beginning of the year to the end of the next reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
（V）Other significant events that need to be explained
1. Securities investment
□Applicable √Inapplicable
2. Investments in derivatives
√Applicable □Inapplicable
The Company has formulated the Management Methods for Futures Hedging
Business and the Management Methods for Exchange Funds upon review to
thoroughly assess and control derivative investment risks, which are detailed as
follows:
1. Market risk
Price movements of bulk raw materials and fluctuations of exchange rates may
incur a great market risk in the futures business and the foreign exchange funds
business. Meanwhile, if the Company fails to input enough funds in time to create
and maintain hedging positions in its futures hedging operations, or fails to input
foreign exchanges on time for contract execution in the foreign exchange funds
Analysis on risks and control measures of business, hedging loss and contract breach risk may incur.
derivative products held in the reporting period Counter-measures: The Company will not carry out speculative trading in its
(including but not limited to market risk, futures hedging business and foreign exchange funds business. And the Company
liquidity risk, credit risk, operation risk, law will stick to the principle of being prudent in operations. As for the futures
risk, etc.) hedging business, the hedging volume should be determined and futures trading
applications should be filed in strict accordance with production and operation
needs. In principle, the hedging volume shall not exceed one third of the planned
volume for the year. And a stop-loss mechanism is adopted. Guarantee deposits
are paid as required and increased according to production and operation needs.
As for the foreign exchange funds business, a from-the-bottom-up management
mechanism is adopted. When subsidiaries or product enterprises file applications
for funds business, they will give a risk analysis on conditions or circumstances
that might affect gains and losses, estimate the maximum gain and loss, and state
the ratio or total amount of guarantee deposits they can bear. And the Company
will, according to their applications, update operations in time in its funds
7
business and make funds arrangements before the maturity date.
2. Operation risk
The Company may suffer loss in its hedging business and foreign exchange funds
business due to faulty internal procedures, staff, systems and external events.
Counter-measures: Responsibility division and approval procedures for the
hedging and foreign exchange business have been specified in relevant
management rules. And a sound supervision mechanism has been established. And
operation risk can be effectively reduced by enhancing risk control over
procedures for operation, decision-making and trading.
3. Risk concerning laws and regulations
The Company carries out its hedging and foreign exchange business in
compliance with applicable laws and regulations, with rights and duties between
the Company and agencies being stated clearly.
Counter-measures: The Company urges responsible departments to understand
better about relevant laws, regulations and market rules; be strict in contract
re-checks; make clear relevant rights and duties; and enhance compliance checks
to make sure that the Company operates derivative investments in compliance
with applicable laws, regulations and the Company’s internal management rules.
Changes of market prices or fair values in the
reporting period of the invested derivatives.
The Company adopts public quotations in the futures market or forward foreign
And the analysis on the fair value of the
exchange quotations declared by the People’s Bank of China in its analysis on fair
derivatives should include the specific use
values of derivative products.
methods and the relevant assumptions and
parameters.
Whether significant changes occurred to the
Company’s accounting policy and specific
accounting principles of derivatives in the No significant changes.
reporting period compared to the previous
reporting period
Independent directors of the Company believe that: 1. the Company has
formulated the Management Methods for Exchange Funds and the Management
Methods for Futures Hedging Business as well as other derivatives investment
systems, so as to effectively control the derivatives investment risks; 2. the
Company’s derivatives investment business for the reporting period has fulfilled
relevant approval procedures, and is conducted in strict accordance with the
Specific opinion from independent directors on
approval amount limit and ways of Shareholders’ General Meeting; 3. the
the Company’s derivatives investment and risk
Company’s derivatives investment business for the reporting period mainly
control
focuses on export business, and it adopts the way of signing forward foreign
exchange contract, which benefits the Company to lock exchange rate and avoid
exchange rate fluctuation risk; it has no speculative operations and performance
risk; the periods for all transaction are basically within one year, and all
transactions are operated according to the receivables and payables budget of the
Company, so there is no influence on the Company’s liquidity.
3. Derivative investments held at the period-end
√Applicable □Inapplicable
Proportion of the closing
Opening contract amount Closing contract amount Gain or loss in the contract amount in the
Type of contract
(RMB Yuan) (RMB Yuan) reporting period closing net assets of the
Company (%)
Forward foreign
234,646,900.00 75,514,400.00 1,118,300.00 1.81%
exchange contracts
Total 234,646,900.00 75,514,400.00 1,118,300.00 1.81%
8
4. Researches, visits and interviews received in the reporting period
Main discussion and
Place of Way of
Time of reception Visitor type Visitor materials provided
reception reception
by the Company
Barclays Capital Asia Limited, Dodge
Meeting Room Field Overall operation of
19 Sept. 2012 Institution &Cox, Jupiter Asset Management,
of the Company research the Company
Food Asset management
5. Corporate bonds issued
Any corporate bonds issued?
□ Yes √ No
IV. Appendix
(I) Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The currency unit for data of the financial statements below is RMB Yuan unless otherwise specified.
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Items Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 2,832,101,839.20 2,415,450,351.24
Settlement reserves
Intra-group lendings
Transactional financial assets 281,200.00 4,292,300.00
Notes receivable 1,556,330,441.58 2,757,923,958.94
Accounts receivable 850,373,366.08 929,389,061.45
Accounts paid in advance 208,297,862.34 250,051,980.25
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 19,841,041.70 15,548,447.50
Financial assets purchased under
agreements to resell
Inventories 1,135,129,579.63 809,400,728.98
Non-current assets due within 1 year
Other current assets 44,746,485.44 112,052,669.26
Total current assets 6,647,101,815.97 7,294,109,497.62
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 176,400.00 284,592.00
9
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 5,903,024.89 5,838,851.75
Investing property 5,097,884.73 5,242,947.48
Fixed assets 1,320,444,706.36 1,365,332,660.33
Construction in progress 4,271,268.42
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 311,042,262.54 316,860,016.08
R&D expense
Goodwill
Long-term deferred expenses 34,748,502.11 52,754,858.43
Deferred income tax assets 102,814,786.85 104,762,053.25
Other non-current assets
Total of non-current assets 1,784,498,835.90 1,851,075,979.32
Total assets 8,431,600,651.87 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 1,316,925,529.74 1,539,319,483.44
Accounts payable 2,163,203,817.13 2,815,488,171.38
Accounts received in advance 508,205,936.68 485,754,049.80
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 119,684,349.96 135,480,654.26
Tax payable -32,762,866.74 1,463,883.21
Interest payable
Dividend payable 3,710,206.21 2,838,070.21
Other accounts payable 156,627,568.24 165,405,271.16
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 4,235,594,541.22 5,152,711,069.82
Non-current liabilities:
Long-term borrowings
Bonds payable
10
Long-term payables
Specific payables
Estimated liabilities 25,496,171.77 20,152,637.08
Deferred income tax liabilities 53,595.00 671,488.80
Other non-current liabilities 7,292,450.00 6,621,250.00
Total non-current liabilities 32,842,216.77 27,445,375.88
Total liabilities 4,268,436,757.99 5,180,156,445.70
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,096,065,351.31 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 1,650,676,375.07 1,465,610,508.78
Foreign exchange difference -2,344,584.55 -2,544,562.12
Total equity attributable to owners of the
3,626,318,818.11 3,441,144,937.45
Company
Minority interests 536,845,075.77 523,884,093.79
Total owners’ (or shareholders’) equity 4,163,163,893.88 3,965,029,031.24
Total liabilities and owners’ (or
8,431,600,651.87 9,145,185,476.94
shareholders’) 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
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 1,922,756,003.14 1,550,043,784.36
Transactional financial assets 33,700.00 2,668,300.00
Notes receivable 752,436,890.07 1,764,588,946.47
Accounts receivable 670,689,460.19 707,158,935.38
Accounts paid in advance 280,080,505.12 338,046,007.02
Interest receivable
Dividend receivable
Other accounts receivable 13,881,813.21 11,930,349.24
Inventories 656,743,447.09 449,255,444.14
Non-current assets due within 1 year
Other current assets 31,001,292.92 75,984,449.98
Total current assets 4,327,623,111.74 4,899,676,216.59
Non-current assets:
Available-for-sale financial assets 176,400.00 284,592.00
Held-to-maturity investments
11
Long-term accounts receivable
Long-term equity investment 1,669,647,103.96 1,669,582,930.82
Investing property 5,097,884.73 5,242,947.48
Fixed assets 612,615,370.93 630,160,566.16
Construction in progress 454,668.42
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 107,618,222.69 109,720,754.23
R&D expense
Goodwill
Long-term deferred expenses 33,115,106.82 46,948,131.13
Deferred income tax assets 51,601,439.78 61,626,184.39
Other non-current assets
Total of non-current assets 2,480,326,197.33 2,523,566,106.21
Total assets 6,807,949,309.07 7,423,242,322.80
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 779,935,460.11 1,046,275,176.33
Accounts payable 1,579,376,509.13 1,923,823,612.54
Accounts received in advance 298,403,659.23 385,922,579.96
Employee’s compensation payable 45,100,315.03 42,610,721.50
Tax payable -19,355,315.64 54,075,370.51
Interest payable
Dividend payable 3,710,206.21 2,838,070.21
Other accounts payable 183,654,028.09 192,113,998.82
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 2,870,824,862.16 3,647,659,529.87
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities 8,002,162.01 1,199,402.08
Deferred income tax liabilities 16,470.01 427,888.80
Other non-current liabilities 900,000.00 1,200,000.00
Total non-current liabilities 8,918,632.02 2,827,290.88
Total liabilities 2,879,743,494.18 3,650,486,820.75
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,258,117,406.54 1,258,209,369.74
Less: Treasury stock
Specific reserves
12
Surplus reserves 236,783,768.38 236,783,768.38
Provisions for general risks
Retained profits 1,800,816,875.97 1,645,274,599.93
Foreign exchange difference
Total owners’ (or shareholders’) equity 3,928,205,814.89 3,772,755,502.05
Total liabilities and owners’ (or
6,807,949,309.07 7,423,242,322.80
shareholders’) equity
Legal representative: Mr. Fang Hongbo Person in-charge of the accounting work: Ms. Xiao Li
Chief of the accounting division: Mr. Zhong Fangliu
3. Consolidated income statement for the reporting period
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total operating revenues 1,473,789,609.57 2,618,257,493.85
Including: Sales income 1,473,789,609.57 2,618,257,493.85
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 1,374,306,687.61 2,475,096,367.66
Including: Cost of sales 1,112,974,410.55 2,211,452,501.32
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 8,542,279.13 3,008,780.65
Selling and distribution expenses 216,375,597.77 169,011,614.80
Administrative expenses 65,261,521.75 72,438,775.04
Financial expenses -21,366,401.26 863,796.20
Asset impairment loss -7,480,720.33 18,320,899.64
Add: Gain/(loss) from change in fair value
281,200.00 -2,911,679.94
(“-” means loss)
Gain/(loss) from investment (“-”
294,185.63 35,396,790.78
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 100,058,307.59 175,646,237.04
Add: non-operating income 8,440,955.85 24,267,030.60
Less: non-operating expense 1,711,969.16 3,125,146.26
13
Including: loss from
non-current asset disposal
IV. Total profit (“-” means loss) 106,787,294.28 196,788,121.38
Less: Income tax expense 16,405,085.55 31,133,827.49
V. Net profit (“-” means loss) 90,382,208.73 165,654,293.89
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the
95,335,283.53 141,943,072.46
Company
Minority shareholders’ income -4,953,074.81 23,711,221.43
VI. Earnings per share -- --
(I) Basic earnings per share 0.15 0.22
(II) Diluted earnings per share 0.15 0.22
VII. Other comprehensive incomes 36,326.82 -636,603.93
VIII. Total comprehensive incomes 90,418,535.55 165,017,689.96
Attributable to owners of the
95,371,610.36 141,306,468.54
Company
Attributable to minority shareholders -4,953,074.81 23,711,221.42
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
Legal representative: Mr. Fang Hongbo Person in-charge of the accounting work: Ms. Xiao Li
Chief of the accounting division: Mr. Zhong Fangliu
4. Income statement of the Company for the reporting period
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total sales 1,013,933,264.74 1,420,570,178.96
Less: cost of sales 700,993,561.56 1,248,466,197.71
Business taxes and surcharges 3,977,493.09
Distribution expenses 165,040,093.01 59,199,717.69
Administrative expenses 36,581,382.90 40,007,288.27
Financial costs -15,244,321.67 140,531.57
Impairment loss -1,489,990.46 -68,462,890.25
Add: gain/(loss) from change in fair value
33,700.00 -2,284,437.56
(“-” means loss)
Gain/(loss) from investment (“-” means
13,285.62 31,795,991.51
loss)
Including: income form investment on
associates and joint ventures
II. Business profit (“-” means loss) 124,122,031.94 170,730,887.93
Add: non-business income 4,981,749.12 9,185,864.19
Less: non-business expense 1,287,694.69 3,366,553.29
Including: loss from non-current asset
disposal
III. Total profit (“-” means loss) 127,816,086.37 176,550,198.83
Less: income tax expense 19,172,412.95 26,482,529.83
14
IV. Net profit (“-” means loss) 108,643,673.42 150,067,669.00
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income -43,982.40 -53,978.40
VII. Total comprehensive income 108,599,691.02 150,013,690.60
Legal representative: Mr. Fang Hongbo Person in-charge of the accounting work: Ms. Xiao Li
Chief of the accounting division: Mr. Zhong Fangliu
5. Consolidated income statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total operating revenues 4,575,118,340.72 9,365,771,616.38
Including: Sales income 4,575,118,340.72 9,365,771,616.38
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 4,223,607,892.39 8,873,452,118.62
Including: Cost of sales 3,566,854,991.74 7,823,252,342.62
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 24,274,034.12 18,817,214.73
Selling and distribution expenses 500,220,233.73 693,133,218.92
Administrative expenses 188,886,422.93 312,420,908.49
Financial expenses -51,906,392.02 1,975,566.89
Asset impairment loss -4,721,398.11 23,852,866.97
Add: Gain/(loss) from change in fair value
-4,011,100.00 8,777,385.90
(“-” means loss)
Gain/(loss) from investment (“-”
5,356,978.26 65,008,690.75
means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 352,856,326.59 566,105,574.41
Add: non-operating income 27,501,683.28 60,080,831.42
Less: non-operating expense 5,399,416.28 11,658,099.15
Including: loss from non-current asset
15
disposal
IV. Total profit (“-” means loss) 374,958,593.59 614,528,306.68
Less: Income tax expense 50,434,192.50 115,569,220.15
V. Net profit (“-” means loss) 324,524,401.09 498,959,086.53
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the
311,563,419.10 422,281,555.25
Company
Minority shareholders’ income 12,960,981.99 76,677,531.28
VI. Earnings per share -- --
(I) Basic earnings per share 0.49 0.67
(II) Diluted earnings per share 0.49 0.67
VII. Other comprehensive incomes 108,014.36 -1,382,992.42
VIII. Total comprehensive incomes 324,632,415.45 497,576,094.11
Attributable to owners of the
311,671,433.46 420,898,562.83
Company
Attributable to minority shareholders 12,960,981.99 76,677,531.28
Where business mergers under the same control occurred from 1 Jan. 2012 to 30 Sept. 2012, the net profit achieved by the merged
parties before the business mergers was RMB 0.
Legal representative: Mr. Fang Hongbo Person in-charge of the accounting work: Ms. Xiao Li
Chief of the accounting division: Mr. Zhong Fangliu
6. Income statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total sales 2,909,107,810.99 5,924,077,774.14
Less: cost of sales 2,166,587,179.72 5,107,724,283.40
Business taxes and surcharges 16,671,668.22 7,417,194.31
Distribution expenses 348,600,437.79 377,350,080.42
Administrative expenses 109,141,723.73 193,482,465.37
Financial costs -40,419,972.40 894,144.24
Impairment loss -1,503,842.51 -56,256,756.00
Add: gain/(loss) from change in fair value
-2,634,600.00 6,558,918.00
(“-” means loss)
Gain/(loss) from investment (“-” means
3,241,278.25 104,113,088.77
loss)
Including: income form investment on
associates and joint ventures
II. Business profit (“-” means loss) 310,637,294.69 404,138,369.17
Add: non-business income 17,087,896.34 26,993,711.46
Less: non-business expense 4,512,357.11 10,040,628.89
Including: loss from non-current asset
disposal
III. Total profit (“-” means loss) 323,212,833.92 421,091,451.74
Less: income tax expense 41,173,005.09 70,376,416.45
IV. Net profit (“-” means loss) 282,039,828.83 350,715,035.29
16
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income -91,963.20 -45,981.60
VII. Total comprehensive income 281,947,865.63 350,669,053.69
Legal representative: Mr. Fang Hongbo Person in-charge of the accounting work: Ms. Xiao Li
Chief of the accounting division: Mr. Zhong Fangliu
7. Consolidated cash flow statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
4,726,491,546.63 7,072,822,081.65
and rendering of service
Net increase of deposits from customers
and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of original
insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase
business
Tax refunds received 122,164,028.80 133,055,441.26
Other cash received relating to operating
81,125,915.46 134,107,933.76
activities
Subtotal of cash inflows from operating
4,929,781,490.89 7,339,985,456.67
activities
Cash paid for goods and services 3,078,017,111.66 5,148,321,416.37
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
17
Cash paid to and for employees 336,128,353.42 402,277,932.02
Various taxes paid 262,413,830.49 295,550,308.69
Other cash payment relating to operating
606,253,355.51 734,133,558.80
activities
Subtotal of cash outflows from operating
4,282,812,651.08 6,580,283,215.88
activities
Net cash flows from operating activities 646,968,839.81 759,702,240.79
II. Cash flows from investing activities:
Cash received from withdrawal of
investments
Cash received from return on
5,292,805.12 22,767,064.50
investments
Net cash received from disposal of fixed
assets, intangible assets and other 6,614,626.30 18,151,988.90
long-term assets
Net cash received from disposal of
-3,027,789.49
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from investing
11,907,431.42 37,891,263.91
activities
Cash paid to acquire fixed assets,
112,947,355.47 195,105,572.15
intangible assets and other long-term assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from investing
112,947,355.47 195,105,572.15
activities
Net cash flows from investing activities -101,039,924.05 -157,214,308.24
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
76,635,770.48
activities
Repayment of borrowings 6,961,486.36 75,246,626.25
Cash paid for interest expenses and
118,658,592.00 76,710,330.27
distribution of dividends or profit
Including: dividends or profit paid by
15,714,000.00
subsidiaries to minority shareholders
Other cash payments relating to
financing activities
Sub-total of cash outflows from financing
125,620,078.36 151,956,956.52
activities
Net cash flows from financing activities -125,620,078.36 -75,321,186.04
18
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
420,308,837.40 527,166,746.51
equivalents
Add: Opening balance of cash and
2,279,653,302.57 2,119,023,194.93
cash equivalents
VI. Closing balance of cash and cash
2,699,962,139.97 2,646,189,941.44
equivalents
Legal representative: Mr. Fang Hongbo Person in-charge of the accounting work: Ms. Xiao Li
Chief of the accounting division: Mr. Zhong Fangliu
8. Cash flow statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities
3,089,189,408.94 4,586,865,918.86
and rendering of service
Tax refunds received 21,382,312.81 42,352,986.54
Other cash received relating to operating
61,646,897.27 31,308,569.29
activities
Subtotal of cash inflows from operating
3,172,218,619.02 4,660,527,474.69
activities
Cash paid for goods and services 1,901,352,605.16 3,379,149,907.63
Cash paid to and for employees 184,973,898.17 217,830,253.16
Various taxes paid 202,975,442.16 148,011,853.04
Other cash payment relating to operating
338,055,410.80 475,305,167.04
activities
Subtotal of cash outflows from operating
2,627,357,356.29 4,220,297,180.87
activities
Net cash flows from operating activities 544,861,262.73 440,230,293.82
II. Cash flows from investing activities:
Cash received from retraction of
investments
Cash received from return on
3,137,105.12 53,166,370.00
investments
Net cash received from disposal of fixed
assets, intangible assets and other 6,203,160.22 16,635,964.50
long-term assets
Net cash received from disposal of
37,500,000.00
subsidiaries or other business units
Other cash received relating to investing
activities
Subtotal of cash inflows from investing
9,340,265.34 107,302,334.50
activities
Cash paid to acquire fixed assets,
79,937,012.50 50,804,882.99
intangible assets and other long-term assets
Cash paid for investment
Net cash paid to acquire subsidiaries and
200,000.00
other business units
19
Other cash payments relating to
investing activities
Subtotal of cash outflows from investing
79,937,012.50 51,004,882.99
activities
Net cash flows from investing activities -70,596,747.16 56,297,451.51
III. Cash Flows from Financing Activities:
Cash received from capital
contributions
Cash received from borrowings 76,635,770.48
Cash received from issuance of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
0.00 76,635,770.48
activities
Repayment of borrowings 75,246,626.25
Cash paid for interest expenses and
118,658,592.00 60,996,330.27
distribution of dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from financing
118,658,592.00 136,242,956.52
activities
Net cash flows from financing activities -118,658,592.00 -59,607,186.04
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
355,605,923.57 436,920,559.29
equivalents
Add: Opening balance of cash and
1,470,854,364.19 1,492,995,931.54
cash equivalents
VI. Closing balance of cash and cash
1,826,460,287.76 1,929,916,490.83
equivalents
Legal representative: Mr. Fang Hongbo Person in-charge of the accounting work: Ms. Xiao Li
Chief of the accounting division: Mr. Zhong Fangliu
(II) Audit report
Auditor’s opinion This quarterly Financial Statements was un-audited by a CPAs firm.
Wuxi Little Swan Company Limited
Legal representative: Mr. Fang Hongbo
22 Oct., 2012
20
