2013 Semi-annual Report of Wuxi Little Swan Company Limited
Wuxi Little Swan Company Limited
2013 Semi-annual Report
August 2013
1
2013 Semi-annual Report of Wuxi Little Swan Company Limited
I. Important Reminders, Contents & Explanation
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Wuxi Little Swan Company Limited (hereinafter referred to as “the Company”)
warrant that this report is factual, accurate and complete without any false record, misleading
statement or material omission. And they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Mr. Fang Hongbo, chairman of the Board of Directors, Mr. Zhang Zhaofeng, CFO, and Mr. Zhong
Fangliu, chief of the accounting organ (chief of accounting), hereby confirm that the Financial
Report enclosed in this report is factual, accurate and complete.
This report involves futures plans and some other forward-looking statements, which shall not be
considered as virtual promises to investors. Investors are kindly reminded to pay attention to
possible risks.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
2
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Contents
I. Important Reminders, Contents & Explanation……………………………………………… 2
II. Company Profile ……………………………………………………………………………… 5
III. Accounting & Business Highlights…………………………………………………………… 7
IV. Report of the Board of Directors……………………………………………………………… 9
V. Significant Events……………………………………………………………………………… 18
VI. Change in Shares & Shareholders ………………………………………………………… 31
VII. Directors, Supervisors, Senior Management Staff & Employees………………………… 36
VIII. Financial Report…………………………………………………………………………… 37
IX. Documents Available for Reference ……………………………………………………… 128
3
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Explanation
Term Refers to Contents
Company, the Company or Little Swan Refers to Wuxi Little Swan Company Limited
Midea Group Refers to Midea Group Co., Ltd.
Midea Holding Refers to GD Midea Holding Co., Ltd.
Reporting period Refers to 1 Jan. 2013-30 Jun. 2013
4
2013 Semi-annual Report of Wuxi Little Swan Company Limited
II. Company Profile
I. Basic information of the Company
Stock abbreviation XTEA, XTEB Stock code 000418, 200418
Stock exchange listed with Shenzhen Stock Exchange
Chinese name of the Company 无锡小天鹅股份有限公司
Abbr. of the Chinese name of the Company (if any) 小天鹅
English name of the Company (if any) Wuxi Little Swan Company Limited
Legal representative of the Company Mr. Fang Hongbo
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. Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the
Company during the reporting period?
□ Applicable √ Inapplicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2012 Annual Report.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report
and the location where this report is placed did not change during the reporting period. The said information can be found in the 2012
Annual Report.
5
2013 Semi-annual Report of Wuxi Little Swan Company Limited
3. Change of the registered information
Did any change occur to the registered information during the reporting period?
□ Applicable √ Inapplicable
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not
change during the reporting period. The said information can be found in the 2012 Annual Report.
4. Other relevant information
Did any change occur to other relevant information during the reporting period?
□ Applicable √ Inapplicable
6
2013 Semi-annual Report of Wuxi Little Swan Company Limited
III. Accounting & Business Highlights
I. Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or
correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB Yuan) 3,998,224,336.31 3,101,328,731.14 28.92%
Net profit attributable to shareholders of
220,961,466.94 216,228,135.55 2.19%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains 186,709,366.62 202,605,458.74 -7.85%
and losses (RMB Yuan)
Net cash flows from operating activities
931,122,295.82 909,437,610.73 2.38%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.35 0.34 2.94%
Diluted EPS (RMB Yuan/share) 0.35 0.34 2.94%
Weighted average ROE (%) 5.82% 6.09% -0.27%
As at the end of the
As at the end of last year YoY +/-（％）
reporting period
Total assets (RMB Yuan) 8,131,964,906.48 8,403,705,443.29 -3.23%
Net assets attributable to shareholders of
3,716,855,941.94 3,686,210,495.87 0.83%
the Company (RMB Yuan)
II. Items and amounts of extraordinary gains and losses
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the
1,068,313.60
offset part of asset impairment provisions)
Government grants recognized in the current period, except for those
acquired in the ordinary course of business or granted at certain 7,073,551.50
quotas or amounts according to the country’s unified standards
Gain on wealth
Gain/loss on entrusting others with investments or asset management 33,824,376.42
management entrustment
Reversal of provision for impairment that made impairment test
72,146.16
independently
7
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Other non-operation income and expenses other than the above 4,615,649.96
Less: Income tax effects 7,002,321.69
Minority interests effects (after tax) 5,399,615.63
Total 34,252,100.32 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
8
2013 Semi-annual Report of Wuxi Little Swan Company Limited
IV. Report of the Board of Directors
I. Overview
In the reporting period, the washing machine industry of China took quite a hit from the changing macro-economic environment, new
competitors joining in and relocation of some manufacturing bases in China due to anti-dumping by some countries. The structure of
the washing machine industry was gradually changing with an increasingly fierce competition. The domestic market was in a weak
growth due to the real estate macro-control, the expiration of the energy-saving subsidy policy and the economic slowdown. As for
the overseas markets, demand was also weak because of political, economic, exchange rate and some other reasons.
During the reporting period, closely adhering to the strategic axis of “leading products, efficiency-driven and global operation”, the
Company focused on changes in the industry, improved products, optimized management, bettered operation and kept pushing
forward and deepening operation transformation. As a result, great progress was achieved in almost all kinds of work.
In terms of domestic sale, with dropout of the Royalstar brand, the Company further integrated and optimized the agent platform,
beefed up expansion of the distribution network and increased the network coverage and effectiveness. It also carried forward the
chain lean management to increase the market share in retail. Meanwhile, it made a greater marketing input for the Midea brand,
promoted independently developed products and rapidly boosted the brand recognition. The reporting period saw a growth rebound
of the domestic sale of the Company. In terms of export, despite a complex and changeable international environment including
political unrest in some countries and exchange rate fluctuations, the Company continued to optimize its product structure and
customer structure and look for new growth points, which produced some good results. In the first half of the year, the weight of
full-automatic products in sale increased considerably and export profitability improved markedly. Concerning the product strength,
the Company developed over 200 kinds of products in the reporting period, including a new Midea series. About the operating
efficiency, the Company carried out a rigid program to increase the supporting efficiency by optimizing the supplier layout and
long-term material management. It also carried out a lean logistics program, optimized the plant layout, decreased the warehousing
area and increased the asset utilization efficiency. As for quality control, the Company adhered to the one-vote-down system. Starting
from the very beginning of product making, it strictly controlled design quality, product quality and the manufacturing process to
thoroughly improve product quality.
For the reporting period, the Company achieved operating revenues of RMB 3.998 billion and net profit attributable to shareholders
of the Company (without subsidiaries) of RMB 221 million.
In the second half of the year, the Company will continue to push forward all kinds of work to ensure that operation transformation
proceeds well. It will study harder on consumer demands for more successful product plans. It will also finish product upgrading to
meet new standards at home and abroad. Meanwhile, it will try its best to make products a strong driving force in marketing. While
ensuring the scale, it will improve the sales structure and thoroughly increase operating quality and capability. It will seize
opportunities arising from emerging marketing channels and proactively promote sales online. It will also further expand cooperation
9
2013 Semi-annual Report of Wuxi Little Swan Company Limited
with overseas customers and improve customer services. At the same time, it will produce in strict accordance to sales and implement
the order system; promote balanced production between Wuxi and Hefei; and keep promoting technical innovation and automation,
improve the manufacturing technique and increase the asset utilization efficiency. It will also keep pushing forward the platform
improvement, standardization of products, as well as studying product reliability to further improve product quality.
II. Main business analysis
Overview
For the first half of the year, the Company achieved operating revenues of RMB 3.687 billion from the washing machine sector, up
31.45% on the year-on-year basis, including domestic sales of RMB 2.872 billion, a year-on-year growth of 64.64%, and export sales
of RMB 815 million, a year-on-year decrease of 23.14%.
YoY change of major financial data:
Unit: RMB Yuan
Same period of
Reporting period YoY +/-% Main reasons for change
last year
Operating revenues 3,998,224,336.31 3,101,328,731.14 28.92%
Operating costs 3,005,810,911.14 2,453,880,581.19 22.49%
Adjustment of the sale mode, increase of the
Selling expenses 539,966,097.76 283,844,635.96 90.23%
sale scale and change of the sale structure
Administrative expenses 173,092,190.68 123,624,901.19 40.01% Increase of R&D input
Exchange rate fluctuations, increase of
exchange loss and reclassification of gain on
Financial expenses 20,143,097.74 -30,539,990.76 165.96%
bank wealth management products to
investment gain
Income tax expenses 42,992,351.93 34,029,106.95 26.34%
R&D input 149,156,933.04 108,911,440.87 36.95% More efforts in new product R&D
Net cash flows from operating
931,122,295.82 909,437,610.73 2.38%
activities
Net cash flows from investing Cash paid for investments in bank wealth
-600,144,036.70 -75,888,980.58 -690.82%
activities management products increased.
Net cash flows from financing
-182,583,655.47 -125,620,078.36 -45.35% Cash paid for dividends increased.
activities
Net increase in cash and cash Cash paid to acquire bank wealth management
148,394,603.65 707,928,551.79 -79.04%
equivalents products
Major changes to the profit structure or sources of the Company during the reporting period:
□ Applicable √ Inapplicable
No major changes occurred to the profit structure or sources of the Company during the reporting period.
Reporting period progress of the future development planning in the disclosed documents of the Company such as share-soliciting
10
2013 Semi-annual Report of Wuxi Little Swan Company Limited
prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Inapplicable
The Company did not mention any future planning for the reporting period in its disclosed documents such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of the previously disclosed business plan in the reporting period:
In the reporting period, according to the plan set at the beginning of the year, the Company proactively pushed forward all kinds of
work and achieved some phasic progress. For details, see “I. Overview” in this section.
III. Breakdown of main business
Unit: RMB Yuan
Increase/decrease Increase/decrease Increase/decrease
of operating of operating costs of gross profit
Gross profit
Operating revenues Operating costs revenues over the over the same rate over the same
rate (%)
same period of period of last year period of last year
last year (%) (%) (%)
Classified by industry:
Household
3,687,450,129.55 2,726,631,893.14 26.06% 31.45% 23.17% 4.98%
appliances
Classified by product:
Washing
3,687,450,129.55 2,726,631,893.14 26.06% 31.45% 23.17% 4.98%
machines
Classified by region:
China 2,872,344,515.78 1,983,874,080.54 30.93% 64.64% 67.41% -1.14%
Other countries 815,105,613.77 742,757,812.60 8.88% -23.14% -27.8% 5.88%
IV. Core competitiveness analysis
The Company is one of the biggest washing machine manufacturers in China, with its main competitiveness as follows:
1. Technology-related competitiveness: The Company has been concentrating on its washing machine business all the time. Through
constant input of R&D resources over the years, the Company has owned leading technological competitiveness in the industry. The
Company has a sound technological R&D system, including one state-level technological center and two state-recognized labs. Little
Swan Lab is the first washing machine lab in China to pass the UL North American safety verification and the German VDE
verification. Little Swan holds on to independent innovation and has the internationally advanced frequency-changing, intelligent
control, structure design, industrial design and other core washing technologies.
2. Brand-related competitiveness: The Company adopts a two-brand strategy (“Little Swan” and “Midea”). As a washer brand with a
history over 30 years, Little Swan is considered a very reliable brand among consumers, with the slogan of “Whole-hearted Little
Swan” being well-known among them. In 2012, according to the evaluation of R&F Global Ranking Information Group Ltd., the
brand of Little Swan was worth 19.126 billion, ranking No. 17 among the top 100 brands in China. As for Midea, it is a well-known
home appliance brand, which is also of a high reputation as a washer brand, and its market share keeps rising.
3. Scale-related competitiveness: The Company is one of the first washer manufacturers in China and it has established the lean
manufacturing culture. It now has domestically and internationally first-class manufacturing equipments and an experienced
11
2013 Semi-annual Report of Wuxi Little Swan Company Limited
manufacturing team. The Company has now three production bases—Wuxi, Hefei and Jingzhou, with the combined production
capacity over 16 million units. Its wide product range covers tumbling-box, wave-wheel full-automatic, double-cylinder and agitator
washing machines, clothes dryers, etc., creating incomparable scale competitiveness among washer manufacturers.
4. Channel-related competitiveness: Through reform and adjustment in the recent years, the Company has formed its channel
competitiveness. In the domestic first and secondary markets, the Company mainly works with Suning, Gome and some other big
regional customers. In the tertiary and fourth markets, the Company combines traditional channels and franchised stores to distribute
its products to households. In the overseas markets, the Company keeps deepening its cooperation with customers and the overseas
markets keep expanding. With a good and long-term cooperation with all major customers, the Company enjoys good brand loyalty.
No significant change occurred to the core competitiveness of the Company in the reporting period.
V. Investment analysis
1. Investments in equities of external parties
（1）Equity-holdings in financial enterprises
Gain/los
Initial Opening Opening Closing s in the
Closing Closing book
Enterprise Enterprise investment equity-hol equity-h equity-hol reportin Accounting Equity
equity-holdi value (RMB
name variety cost (RMB dings olding dings g period title source
ng ratio (%) Yuan)
Yuan) (share) ratio (%) (share) (RMB
Yuan)
Bank of Long-term
Commerci Private
Jiangsu 1,100,000.00 2,202,564 0% 2,202,564 0% 1,210,000.00 0.00 equity
al bank offering
Co., Ltd. investment
Total 1,100,000.00 2,202,564 -- 2,202,564 -- 1,210,000.00 0.00 -- --
2. Wealth management entrustment, derivative investments and entrustment loans
（1）Wealth management entrustment
Unit: RMB Ten thousand
Actual
Related-
Principal Impairmen gain/loss
Name of Rela party Product Beginning Ending Payment Expected
Amount actually t provision for
trustee tion transacti variety date date determination gain
recovered (if any) reporting
on or not
period
Floating interest
rate and the
Floating 1 Jan. 1 Dec. contract gave
Bank No No 542,406 479,800 0 6,687.05 3,382.44
income 2013 2013 the highest
annualized rate
of return
12
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Total 542,406 -- -- -- 479,800 0 6,687.05 3,382.44
All is from the self-owned funds of the Company. The entrusted funds is cumulative. The line
Source of the entrusted funds for wealth management entrustment is RMB 1.8 billion and repeated use is allowed within the
said line.
Cumulative overdue principals
0
and gains
Disclosure date of the board
announcement approving the
6 Mar. 2013
wealth management entrustment
(if any)
（2）Derivative investments
Unit: RMB Ten thousand
Proportion
of the
closing
Actual
Related- investment
Type of Initial Opening Impairmen Closing gain/loss
party Beginning Ending amount in
Operator Relation derivative investment investment t provision investment in
transacti date date the
investment amount amount (if any) amount reportin
on or not Company’
g period
s closing
net assets
(%)
Forward
10 Jan. 7 Jan.
Bank No No exchange 106,273.84 24,245.04 0 84,266.33 19.6% 1,760.97
2013 2015
contract
Total 106,273.84 -- -- 24,245.04 0 84,266.33 19.6% 1,760.97
Capital source for derivative investment All self-owned funds
Disclosure date of the board
announcement approving the wealth 3 Nov. 2012
management entrustment (if any)
Disclosure date of the general meeting
announcement approving the wealth 21 Nov. 2012
management entrustment (if any)
The Company has formulated the Management Methods for Futures Hedging Business and
Analysis on risks and control measures
the Management Methods for Exchange Funds upon review to thoroughly assess and
of derivative products held in the
control derivative investment risks, which are detailed as follows:
reporting period (including but not
1. Market risk
limited to market risk, liquidity risk,
Price movements of bulk raw materials and fluctuations of exchange rates may incur a
credit risk, operation risk, law risk, etc.)
great market risk in the futures business and the foreign exchange funds business.
13
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Meanwhile, if the Company fails to input enough funds in time to create and maintain
hedging positions in its futures hedging operations, or fails to input foreign exchanges on
time for contract execution in the foreign exchange funds business, hedging loss and
contract breach risk may incur.
Counter-measures: The Company will not carry out speculative trading in its futures
hedging business and foreign exchange funds business. And the Company will stick to the
principle of being prudent in operations. As for the futures hedging business, the hedging
volume should be determined and futures trading applications should be filed in strict
accordance with production and operation needs. In principle, the hedging volume shall not
exceed one third of the planned volume for the year. And a stop-loss mechanism is adopted.
Guarantee deposits are paid as required and increased according to production and
operation needs. As for the foreign exchange funds business, a from-the-bottom-up
management mechanism is adopted. When subsidiaries or product enterprises file
applications for funds business, they will give a risk analysis on conditions or
circumstances that might affect gains and losses, estimate the maximum gain and loss, and
state the ratio or total amount of guarantee deposits they can bear. And the Company will,
according to their applications, update operations in time in its funds business and make
funds arrangements before the maturity date.
2. Operation risk
The Company may suffer loss in its hedging business and foreign exchange funds business
due to faulty internal procedures, staff, systems and external events.
Counter-measures: Responsibility division and approval procedures for the hedging and
foreign exchange business have been specified in relevant management rules. And a sound
supervision mechanism has been established. And operation risk can be effectively reduced
by enhancing risk control over procedures for operation, decision-making and trading.
3. Risk concerning laws and regulations
The Company carries out its hedging and foreign exchange business in compliance with
applicable laws and regulations, with rights and duties between the Company and agencies
being stated clearly.
Counter-measures: The Company urges responsible departments to understand better about
relevant laws, regulations and market rules; be strict in contract re-checks; make clear
relevant rights and duties; and enhance compliance checks to make sure that the Company
operates derivative investments in compliance with applicable laws, regulations and the
Company’s internal management rules.
Changes of market prices or fair values
in the reporting period of the invested
The Company adopts public quotations in the futures market or forward foreign exchange
derivatives. And the analysis on the fair
quotations declared by the People’s Bank of China in its analysis on fair values of
value of the derivatives should include
derivative products.
the specific use methods and the
relevant assumptions and parameters.
Whether significant changes occurred to
the Company’s accounting policy and No significant changes.
specific accounting principles of
14
2013 Semi-annual Report of Wuxi Little Swan Company Limited
derivatives in the reporting period
compared to the previous reporting
period
Independent directors of the Company believe that: A. The Company has formulated
derivative investment rules such as the Management Methods for Futures Hedging
Business and the Management Methods for Exchange Funds to help it effectively control
risks involved; B. During the reporting period, the Company performed the relevant
approval procedure before it conducted derivative investments in strict compliance with the
Specific opinion from independent
lines and ways approved by the Shareholders’ General Meeting; And C. The Company’s
directors on the Company’s derivatives
derivative investments in the reporting period mainly targeted its exports. It signed forward
investment and risk control
exchange contracts with domestic financial institutions, which helped it lock up the
exchange rate and avoid the risk of exchange rate fluctuations. The Company conducted no
speculative operations, so there was no credit risk. And transaction periods were
determined according to expectations and payment receiving and making, with no
influence on the Company’s fluidity.
3. Analysis to main subsidiaries and stock-participating companies
Main subsidiaries and stock-participating companies:
Unit: RMB Yuan
Comp Main
Company Industr Registered Operating Operating
any products/servi Total assets Net assets Net profit
name y capital revenues profit
variety ces
Hefei
Midea washing USD
Subsid Manuf
Washing machine 135.52 2,790,053,530.89 1,544,046,887.24 1,667,866,040.17 36,275,099.27 34,289,788.45
iary acture
Machine manufacture million
Co., Ltd.
Wuxi
Little
Swan
Subsid Manuf Washer-dryer RMB 28
General 210,994,988.64 142,237,504.01 86,391,216.13 -9,885,049.25 -8,381,917.44
iary acture manufacture million
Electrical
Appliance
s Co., Ltd
Development
Wuxi and
FILIN Subsid Manuf manufacture USD
335,752,472.00 253,309,017.36 133,770,966.79 27,719,691.59 25,950,307.04
Electronic iary acture of new 3,624,564
s Co., Ltd electronic
components
Little Subsid Manuf Washing RMB 105,995,748.57 28,201,803.62 139,350,267.45 3,094,711.23 2,370,891.49
15
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Swan iary acture machine 11.07
(Jingzhou) manufacture million
Sanjin
Electric
Appliance
s Co., Ltd.
4. Significant projects of investments with non-raised funds
Unit: RMB Ten thousand
Cumulative actual
Total planned Input for the Project
Project name input as at the Project earnings
investment reporting period progress
period-end
Investment plans of the Company and Immeasurable
64,870 0 19,911 30%
its subsidiaries for 2011 (Note 1) separately
Total 64,870 0 19,911 -- --
Date when the relevant interim announcement was disclosed
18 Mar. 2011
on the designated website (if any)
Note 1: In the year-begin of 2011, in regards of market demand growth forecast and tightening production capacity at that time, the
Company, based on company decision, planned to invest RMB 648.7 million to enlarge the production capacity of Jinzhou Base and
other bases. During the implementation process, the market changed a lot with decreased whole demand and slower industry growth.
According to market changes, the Company adjusted investment plans in time. Non-invested projects in investment plans of the
Company and subsidiaries in 2011 have been terminated.
VI. Predict the operating results of Jan.-Sept. 2013
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the
next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable √ Inapplicable
VII. Implementation of profit allocation during the reporting period
Profit allocation plan implemented during the reporting period, especially execution and adjustment of the cash dividend plan and the
plan for turning capital reserve into share capital:
√ Applicable □ Inapplicable
As the profit allocation plan for 2012, the Company, based on the total 632,487,764 shares as at the end of 2012, distributed a cash
dividend of RMB 3 for every 10 shares held by its shareholders. The plan was reviewed and approved at the 4th Session of the 7th
Board of Directors on 4 Mar. 2013 and then the 2012 Annual Shareholders’ General Meeting on 12 Apr. 2013. In this profit
allocation, for A-shares, the date or record was 5 Jun. 2013; for B-shares, the last trading was 5 Jun. 2013 and the date of record was
13 Jun. 2013. Implementation of the profit allocation plan was completed in the reporting period.
16
2013 Semi-annual Report of Wuxi Little Swan Company Limited
VIII. Particulars about researches, visits and interviews received in this reporting period
Main discussion and
Time of Place of Way of Visitor
Visitor materials provided by
reception reception reception type
the Company
Conference
Changjiang Securities, SWS Mu Fund Management, Overall operation of
8 Jan. 2013 Room of the Field research Institution
China Post Fund, Hua’an Funds the Company
Company
China Merchants Securities, Eastern Bay Asset
Conference
Management, Ping An Insurance, New Think Invest, Overall operation of
14 Jan. 2013 Room of the Field research Institution
BNY Fund, Western Asset Management, Haitong the Company
Company
Securities, Wanjia Asset, Aijian Securities
17
2013 Semi-annual Report of Wuxi Little Swan Company Limited
V. 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. Company
governance practice has no difference with requirements of relevant law and rules of Company Law and
CSRC
II. Significant litigations and arbitrations
□Applicable √Inapplicable
The Company was not involved in any significant lawsuit or arbitration during the reporting period.
III. Media’s questions
□Applicable √Inapplicable
The Company was not involved in any media’s questions during the reporting period.
IV. Assets transaction events
1. Sale of assets
Wheth
Relation
er or
ship Wheth
Ratio of not the
Net profit between er or
the net credito
contribute the not the
profit r’s
d to the transacti owner
contribut right
Company on party ship of
Impact ed by Related- and
from the and the the Disclo Disclo
Transaction Assets Disposal Transact to the the asset Pricing party liabilit
period-beg Compan asset sure sure
party sold date ion price compa to the principle transacti ies
in to the y involv date index
ny Compan on or not involv
disposal (applica ed has
y to the ed
date(RMB ble for been
total have
Ten related-p fully
profit been
thousand) arty transfe
(%)) fully
transacti rred
transfe
ons)
rred
18
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Jiangsu Hengtai Negotiated
kunpeng insurance according
5 Jan, inapplic inappli
investment brokers 100 00 0% to the No Yes Yes
2013 able cable
co., LTD co., LTD company's
net assets
V. Significant related-party transactions
1. Related-party transaction relevant to routine operation
Type of Content Pricing
Proportion Settlement
the of the principle of Trans Transactio
in same method of Mark Disclos
related- related-p the actio n amount Disclosure
Related party Relationship kind of the et ure
party arty related-part n (RMB Ten index
transaction related-party price date
transac transacti y price thousand)
s (%) transaction
tion on transaction
Subsidiary Cash or
Revenu Logistics s
Ningbo Annto controlled by Market acceptance
e from ervice 4,819.68 1.93%
Logistics Co., Ltd. actual price due 3-6
service
controller months On March 6,
2013, the
Hubei midea
company
refrigerator co., LTD Cash or
Subsidiary Purchase published in
（used name：Little Purcha Market acceptance
controlled by of 543.79 0.22% the tide of
Swan (Jingzhou) se price due 3-6
controller material information
Electric Appliances months
network's
Co., Ltd.）
announceme
Huaian Weiling Subsidiary Cash or
Purchase nt: little swan
Motor controlled by Purcha Market acceptance 6 Mar,
of 18,886.72 7.56% A: about to
Manufacturing Co., actual se price due 3-6 2013
material estimating
Ltd. controller months
the 2013
Subsidiary Cash or daily
Hefei Midea Purchase
controlled by Purcha Market acceptance connection
Materials Supply of 15,724.58 6.3%
controlling se price due 3-6 transaction
Co., Ltd. material
shareholder months amount
Company announceme
directly nt(NO.
Cash or
Hefei Bainian controlled by Purchase 2013-03)
Purcha Market acceptance
Molding Technology actual of 4,878.93 1.95%
se price due 3-6
Co., Ltd. controller and material
months
their close
family
19
2013 Semi-annual Report of Wuxi Little Swan Company Limited
members
Company
directly
controlled by Cash or
Hefei Huitong Purchase
actual Purcha Market acceptance
energy-saving of 4,391.73 1.76%
controller and se price due 3-6
materials co., LTD material
their close months
family
members
Subsidiary
Revenu Purchase T/T, Transfer
Annto Logistics Co., controlled by Market
e from of 64.57 0.03% or online
Ltd. actual price
service service banking
controller
Guangdong Zhengli Subsidiary Cash or
Purchase
precision machinery controlled by Purcha Market acceptance
of 8.76 0% No No
co., LTD actual se price due 3-6
service
controller months
Company On March 6,
directly 2013, the
controlled by Cash or company
Hefei Bainian
actual Sale of Market acceptance published in
Molding Technology Sales 1,666.64 0.42%
controller and material price due 3-6 the cn
Co., Ltd.
their close months information
family network's
members announceme
Sales of nt: little swan
Subsidiary Cash or A:
Hefei Midea electroni
controlled by Market acceptance Announceme
refrigerator co., LTD Sales c 2.89 0%
controlling price due 3-6 nts about
products 6 Mar,
shareholder months estimating
2013
the 2013
Huaian Weiling Subsidiary Cash or
daily
Motor controlled by Sale of Market acceptance
Sales 6.43 0% connection
Manufacturing Co., actual material price due 3-6
transaction
Ltd. controller months
amount
Party b paid (NO.2013-03
to party a in )On March 6,
Subsidiary cash, after 2013, the
Midea Electric Sale of
controlled by Market receiving the company
Trading (Singapore) Sales washing 51,723.61 12.94%
controlling price party a’s published in
Co. Pte. Ltd. machine
shareholder supply in the the cn
bill of lading information
within 120
20
2013 Semi-annual Report of Wuxi Little Swan Company Limited
days network's
announceme
Company
nt: little swan
directly
A:
controlled by Cash or
Announceme
Hefei Huitong New actual Sale of Market acceptance
Sales 805.14 0.2% nts about
Materials Co., Ltd. controller and material price due 3-6
estimating
their close months
the 2013
family
daily
members
connection
Subsidiary Cash or
Hefei Hualing transaction
controlled by Sale of Market acceptance
Electric Appliances Sales 33.08 0.01% amount
controlling material price due 3-6
Co., Ltd. (NO.2013-03
shareholder months
)
Party b paid
to party a in
cash, after
Subsidiary
Sale of receiving the
PT.Midea Planet controlled by Market
Sales washing 681.67 0.17% party a’s
Indonesia controlling price
machine supply in the
shareholder
bill of lading
within 90
days
Party b paid
to party a in
cash, after
MIDEA Subsidiary
Sale of receiving the
SCOTT&ENGLISH controlled by Market
Sales washing 743.91 0.19% party a’s
ELECTRONIICS controlling price
machine supply in the
SDN.BHD shareholder
bill of lading
within 150
days
Total -- -- 104,982.13 -- -- -- -- --
As for the prediction on the total amount of routine
related-party transactions to be occurred in the For details, see VIII. Financial report “(VIII) Related-party and related-party
reporting period by relevant types, the actual transactions, 5. Related-party transactions”.
performance in the reporting period(If any)
2. Significant credits and liabilities with related parties
Whether or not any non-business related credits and debts exist
□ Yes √ No
Whether or Opening The Closing
Forming
Related-party Relationship Type not a balance amount balance(R
reason
non-business (RMB Ten incurred in MB Ten
21
2013 Semi-annual Report of Wuxi Little Swan Company Limited
capital takes thousand) current thousand)
up period
(RMB Ten
thousand)
Creditor's
Subsidiary
rights of
Midea Electric Trading (Singapore) controlled by Sales of
related party’s No 22,648.06 50,458.44 25,769.94
Co. Pte. Ltd. controlling goods
account
shareholder
receivable
Creditor's
Subsidiary
rights of
Indonesia PT. MIDEA PLANET controlled by Sales of
related party’s No 916.27 681.67 816.44
INDONESIA controlling goods
account
shareholder
receivable
Creditor's
Subsidiary
rights of
MIDEA SCOTT&ENGLISH controlled by Sales of
related party’s No 1,224.43 743.91 745.09
ELECTRONILCS SDN.BHD controlling goods
account
shareholder
receivable
Creditor's
Subsidiary
rights of
Hefei hualing co., LTD controlled by Sales of
related party’s No 46.2 38.7 10.62
controlling goods
account
shareholder
receivable
Creditor's
Subsidiary
rights of
Hubei Midea refrigerator co., LTD controlled by Sales of
related party’s No 5.56 0 0
controlling goods
account
shareholder
receivable
Creditor's
Subsidiary
Guangdong Midea Nuantong air rights of
controlled by Sales of
conditioning equipment co., LTD related party’s No 38.33 0 0
controlling goods
account
shareholder
receivable
Creditor's
Subsidiary
rights of
controlled by Sales of
MIDEA ITALIA S.R.L related party’s No 70.67 0 0
controlling goods
account
shareholder
receivable
Subsidiary Creditor's
Hefei Midea refrigerator co., LTD Sales of
controlled by rights of No 4.35 3.38 0
goods
controlling related party’s
22
2013 Semi-annual Report of Wuxi Little Swan Company Limited
shareholder account
receivable
Creditor's
Subsidiary
rights of
Hefei Midea Materials Supply Co., controlled by Sales of
related party’s No 0 0.06 0.06
Ltd. controlling goods
account
shareholder
receivable
Creditor's
Subsidiary rights of
Huaian Weiling Motor Sales of
controlled by related party’s No 0 7.53 0.3
Manufacturing Co., Ltd. goods
actual controller account
receivable
Subsidiary Account
Huaian Weiling Motor Purchase
controlled by payable to No 4,002.3 22,097.47 2,884.22
Manufacturing Co., Ltd. of goods
actual controller related party
Subsidiary
Account
Hefei Midea Materials Supply Co., controlled by Purchase
payable to No 795.66 18397.76 2,245.12
Ltd. controlling of goods
related party
shareholder
Company directly
controlled by Account
Hefei Bainian Molding Technology Purchase
actual controller payable to No 1,593.27 3,758.38 162.16
Co., Ltd. of goods
and their close related party
family members
Company directly
controlled by Account
Hefei Huitong energy-saving Purchase
actual controller payable to No 0 4,196.31 371.74
materials co., LTD of goods
and their close related party
family members
Company directly
controlled by Account
Hefei Huitong New Materials Co., Purchase
actual controller payable to No 142.08 0 0
Ltd. of goods
and their close related party
family members
Zhongshan Media electrical Subsidiary Account
Purchase 0
engineering product installation controlled by payable to No 13.7 13.7
of goods
service co., LTD actual controller related party
Guangdong Zhengli precision Subsidiary Account
Purchase
machinery co., LTD controlled by payable to No 8.52 10.25 0
of goods
actual controller related party
Annto Logistics Co., Ltd. Subsidiary Account Purchase No 78.49 75.55 9.58
23
2013 Semi-annual Report of Wuxi Little Swan Company Limited
controlled by payable to of
actual controller related party services
Subsidiary Account Purchase
Ningbo Annto Logistics Co., Ltd. controlled by payable to of No 33.19 5,639.03 618.16
actual controller related party services
Subsidiary
Account
Hubei Midea refrigerator co., LTD controlled by Purchase
payable to No 0 636.24 142.57
controlling of goods
related party
shareholder
Subsidiary
Account
Hefei hualing co., LTD controlled by Purchase
payable to No 0 104.68 104.68
controlling of goods
related party
shareholder
Guangdong midea electric Account Purchase
controlling
appliances co., LTD payable to of No 39.06 0 0
shareholder
related party services
Subsidiary
Account
Midea Electric Trading (Singapore) controlled by Sales of
payable to No 0 1,265.17 1,265.17
Co. Pte. Ltd. controlling goods
related party
shareholder
3. 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 “0LITTLE 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.
Related queries of disclosure index of significant related-party transactions’ interim report
Name of temporary bulletins Disclosure date Disclosure index
Announcements about trademark license of related transactions
16 Dec, 2010 www.cninfo.com.cn
(NO.2010-48)
Announcements about estimating the 2013 daily connection 6 Mar, 2013 www.cninfo.com.cn
24
2013 Semi-annual Report of Wuxi Little Swan Company Limited
transaction amount (NO.2013-03)
VI. Significant contracts and execution
1. The trust, contract and lease
(1) Status of trust
Note to trust
During the reporting period, the company did not occur or incur trust, nor trust occurred or incurred in previous continue to reporting
period
The events whose profits reaching more than 10% (including 10%) of the total profits of the Company in the report period.
□ Applicable √ Inapplicable
(2)Particulars about contracting
Note to contracting
During the reporting period, the company did not occur or incur contracting, nor contracting occurred or incurred in previous
continue to reporting period
The events whose profits reaching more than 10% (including 10%) of the total profits of the Company in the report period.
□ Applicable √ Inapplicable
(3)Particulars about leasing
Note to leasing
During the reporting period, the company did not occur or incur leasing, nor leasing occurred or incurred in previous continue to
reporting period
The events whose profits reaching more than 10% (including 10%) of the total profits of the Company in the report period.
□ Applicable √ Inapplicable
2. Guarantees provided by the Company
Unit: RMB Ten Thousand
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Disclosure Actual Guarantee
Amount Actual
date of occurrence date Type of Period of Execute for a
Guaranteed party for guarantee
relevant (date of guarantee guarantee d or not related
guarantee amount
announcement agreement) party or not
Total actual occurred
Total external guarantee line
amount of external
approved during the 0 0
guarantee during the
reporting period (A1)
reporting period (A2)
Total external guarantee line Total actual external
that has been approved at guarantee balance at
0 0
the end of the reporting the end of the
period (A3) reporting period (A4)
Guarantees provided by the Company for its subsidiaries
25
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Disclosure Actual Guarantee
Amount Actual
date of occurrence date Type of Period of Execute for a
Guaranteed party for guarantee
relevant (date of guarantee guarantee d or not related
guarantee amount
announcement agreement)） party or not
General Six
6 Mar, 2013 160,000 18 Jan, 2013 5,986 No No
warranty months
General Six
6 Mar, 2013 160,000 1 Feb, 2013 6,377 No No
warranty months
General Six
6 Mar, 2013 160,000 22 Feb,2013 4,652 No No
warranty months
General Six
6 Mar, 2013 160,000 14 Mar, 2013 4,274 No No
warranty months
Hefei Midea washing
General Six
machine co., LTD 6 Mar, 2013 160,000 20 Mar, 2013 7,831 No No
warranty months
（Note1）
General Six
6 Mar, 2013 160,000 11 Apr,2013 2,327 No No
warranty months
General Six
6 Mar, 2013 160,000 12 Apr, 2013 739 No No
warranty months
General Six
6 Mar, 2013 160,000 10 May, 2013 2,475 No No
warranty months
General Six
6 Mar, 2013 160,000 8 June,2013 2,285 No No
warranty months
Total guarantee line Total actual occurred
approved for the amount of guarantee
subsidiaries during the 165,000 for the subsidiaries 36,946
reporting period during the reporting
(B1) period (B2)
Total actual guarantee
Total guarantee line that has
balance for the
been approved for the
165,000 subsidiaries at the end 36,946
subsidiaries at the end of the
of the reporting period
reporting period (B3)
(B4)
Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
Total actual occurred
Total guarantee line
amount of guarantee
approved during the 165,000 36,946
during the reporting
reporting period (A1+B1)
period (A2+B2)
Total guarantee line that has Total actual guarantee
been approved at the end of 165,000 balance at the end of 36,946
the reporting period the reporting period
26
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(A3+B3) (A4+B4)
Proportion of total guarantee amount (A4+B4) to the net assets of the
9.94%
Company
Of which:
Amount of guarantee for shareholders, actual controller and related
0
parties (C)
Amount of debt guarantee provided for the guaranteed party whose
0
asset-liability ratio is not less than 70% directly or indirectly (D)
Part of the amount of the total guarantee over 50% of net assets (E) 0
Total amount of the above three guarantees (C+D+E) 0
Note1：During the reporting period，Hefei Royalstar Washing Equipment Manufacturing Co., Ltd changed its name as Hefei Midea
washing machine co., LTD
VII. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the
report period, or such commitments carried down into the report period
Time of
Period of
Commitmen making Fulfill
Commitment Contents commitme
t maker commit ment
nt
ment
Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea
In the
Holding) plans to sell the Company’s shares released from trading
proces
Commitment moratorium held by it via the bid trading system of the Shenzhen Stock
Controlling 28 Feb. s of
on share Exchange, and Midea Holding decreases over 5% shares within six Long-term
shareholder 2008 imple
reform months since the first reduction of holdings, Midea Holding will disclose
mentat
the suggestive announcement on share selling through the Company two
ion
trading days before its first reduction of holdings.
1. As for Midea Holding’s commitment on share lock-up, it has On
committed that it will not transfer Little Swan shares held by it within 36 December
months since the date when the private share offering deal is closed. 1, item 1
2. As for the commitment of avoiding horizontal competition, Midea to 2013
Holding (the controlling shareholder) and Mr. He Xiangjian (the actual fulfilled
Commitment controller) has promised that, for the period after the said transaction Item 7 (2) In the
in the Controlling when the Company’s controlling shareholder and actual controller remain RongShiD proces
acquisition shareholder unchanged, Midea Holding, Mr. He Xiangjian and other subsidiary 1 Dec. a s of
report or the and actual companies under their control excluding the Company and the 2010 trademark imple
report on controller Company’s subordinate companies will not increase business or establish is due by mentat
equity changes new subsidiary companies engaged in business which is the same with or March 31, ion
similar to the Company’s main business or forms substantial horizontal 2013 and
competition with the Company. If they act against the commitment won’t
above, profits thus generated will be attributable to the Company. renew its
3. As for the commitment for regulating related-party transactions, contract;
GD Midea Holding (the controlling shareholder) and Mr. He Xiangjian Other
27
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(the actual controller) have promised that when there are inevitable items for a
related-party transactions or such transaction incurred with rational long term
reasons after the completion of the transaction, they will follow the fair, implement
reasonable and market principles in formulating and signing relevant
agreements on such related-party transactions and ensure that no harm
will be done to interests of the Company and other shareholders. Where
GD Midea Holding and Mr. He Xiangjian act against the promise above
and damage interests of the Company and other shareholders, they will
assume liabilities for compensation according to relevant provisions.
4. As for the commitment on independence, GD Midea Holding has
promised to protect Little Swan’s independence in terms of assets, staff,
finance, organization and business.
5. As for the commitment on related-party deposits and borrowings,
up to 8 Apr. 2010, the Financial Settlement Center of GD Midea Holding
had settled all internal deposits and borrowings with Hefei Royalstar
Washing Equipment Manufacturing Co., Ltd.; and GD Midea Holding
has promised that there will be no more deposits, borrowings or other
funds flows incurred between the Financial Settlement Center and Hefei
Royalstar Washing Equipment Manufacturing Co., Ltd..
6. The commitment by GD Midea Holding on housing properties
with no ownership certificates of the target company for sale is
detailed as follows. Two pieces of the buildings of Royalstar Washing
Equipment assessed and sold to the Company are of no ownership
certificates—the warehouse for half-finished products (176 square
meters) and the workshop for injection molding (834 square meters), both
located in the old factory of Royalstar Washing Equipment, Hewa Road,
Hefei. GD Midea Holding has promised that if loss occurs due to the said
two buildings without ownership certificates in the asset disposal process
in the future, it will assume the loss thus caused and make compensation
to the Company.
7. The commitment by GD Midea Holding on trademarks is detailed
as follows. (1) Concerning the “Midea” trademark: Upon approval and
implementation of the equity transfer transaction, GD Midea Holding has
promised that it will make sure that Royalstar Washing Equipment uses
the “Midea” trademark in a proper manner. Royalstar Washing
Equipment will be allowed to use the “Midea” trademark with a
trademark use fee not more than that paid by Midea Group (the
controlling shareholder of GD Midea Holding) and its subsidiaries
(currently 3‰ of the annual sales income generated by products using the
“Midea” trademark), and upon negotiation and signing of the “Agreement
for Trademark Use”. The related-party transactions incurred due to the
said use of the “Midea” trademark will be submitted to the
decision-making organ of the Company for approval according to the
stipulated procedure. As such, interests of the Company and its minority
28
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 “RongShiDa”) 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 Naught
asset exchange
Commitment
s made in
first public Naught
issuance or
refinancing.
Other
commitments
made to Naught
minority
shareholders
29
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Executed
Yes
timely or not?
Detailed
reason for
failing to
Inapplicable
execute and
the next
plan( If any)
VIII. Particulars about engagement and disengagement of CPAs firm
Has this semi-annual report been audited?
□Yes √ No
30
2013 Semi-annual Report of Wuxi Little Swan Company Limited
VI. Change in Shares & Shareholders
I. Changes in share capital
Before the change Increase/decrease (+, -) After the change
Issuance Capitalizatio
Proportion Bonus Subtot Proportion
Amount of new n of public Others Amount
(%) shares al (%)
shares reserve fund
I. Shares subject to trading
252,003,449 39.84% 252,003,449 39.84%
moratorium
1.Share held by the state 0% 0%
2. Share held by
0% 0%
state-owned legal person
3. Other domestic shares 221,148,735 34.96% 221,148,735 34.96%
Including: Shares held by
221,148,735 34.96% -756,000 220,392,735 34.85%
domestic legal persons
Shares held by
0% 756,000 756,000 0.12%
domestic individuals
4. Shares held by overseas
30,851,714 4.88% 30,851,714 4.88%
shareholders
Including: Shares held by
30,851,714 4.88% 30,851,714 4.88%
overseas legal persons
Shares held by
0% 0%
overseas individuals
5. Shares held by senior
3,000 0% 3,000 0%
management staff
II. Shares not subject to
380,484,315 60.16% 380,484,315 60.16%
trading moratorium
1. Ordinary shares
220,300,157 34.83% 220,300,157 34.83%
denominated in RMB
2、2. Domestically listed
160,184,158 25.33% 160,184,158 25.33%
foreign shares
3. Oversea listed foreign
0% 0%
shares
4.Other 0% 0%
III. Total shares 632,487,764 100% 632,487,764 100%
Reason for the changes in share capital
31
2013 Semi-annual Report of Wuxi Little Swan Company Limited
√Applicable □Inapplicable
On April 8, 2013, Jiangyin shen gang hardware casting factory transferred its holdings of 756000 limited A shares to Yang Jiezhen.
Approval for changes in share capital
□ Applicable √ Inapplicable
Transfer for changes in share capital
□ Applicable √ Inapplicable
Effects of changes in share capital on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the
Company and other financial indexes over the last year and last period
□ Applicable √ Inapplicable
Other contents that the Company considers necessary or required by the securities regulatory authorities to disclose
□ Applicable √ Inapplicable
Explanation on changes in total shares of the Company, or the shares structure or the asset-liability structure of the Company.
□ Applicable √ Inapplicable
II. Total number of shareholders and their shareholding
Unit: share
Total number of shareholders at the
32,667
reporting period
Particulars about shares held by shareholders with a shareholding percentage over 5%
Pledged or
Increase/d
Sharehol Number of frozen shares
Total shares ecrease Number of
Nature of ding tradable Num
Name of shareholder held at the during the non-tradable Status
shareholder percenta shares ber of
period-end reporting shares held of
ge (%) held share
period shares
s
Domestic
GD MIDEA HOLDING CO.,
non-state-owned 35.2% 222,661,571 0 216,342,015 6,319,556
LTD.
corporation
Overseas
GAOLING FUND,L.P. 8.35% 52,835,581 467,538
corporation
TITONI INVESTMENTS Overseas
4.88% 30,851,714 0
DEVELOPMENT LTD. corporation
FINANCE BUREAU OF On behalf of the
3.49% 22,057,657 0
WUXI state
Overseas
BOCI SECURITIES LIMITED 3.29% 20,837,431 -638,225
corporation
NATIONAL SOCIAL Domestic
SECURITY FUND non-state-owned 2.21% 14,000,000 -1,133,169
PORTFOLIO 102 corporation
GUOTAI JUNAN Overseas 2.13% 13,463,740 -186,702
32
2013 Semi-annual Report of Wuxi Little Swan Company Limited
SECURITIES(HONGKONG) corporation
LIMITED
AGRICULTURAL BANK O F
CHINA – CHINA Domestic
RENAISSANCE EQUITY non-state-owned 1.39% 8,786,639 8,786,639
SECURITIES INVESTMENT corporation
FUND
CHINA CONSTRUCTION
BSNK- BOSHI THEME Domestic
INDUSTRIAL STOCK non-state-owned 1.19% 7,499,149 7,199,191
SECURITIES INVESTMENT corporation
FUND
NATIONAL SOCIAL Domestic
SECURITY FUND non-state-owned 1.14% 7,180,101 2,395,868
PORTFOLIO 108 corporation
Strategic investor or general corporation becoming a
top ten shareholder due to placing of new shares (if Inapplicable
any)（See note3）
Explanation on associated relationship or persons
GD MIDEA HOLDING CO., LTD. and TITONI INVESTMENTS
acting in concert among the above-mentioned
DEVELOPMENT LTD. are parties acting in concert.
shareholders:
Particulars about shares held by the top ten shareholders holding shares not subject to trading moratorium
Number of tradable shares Type of shares
Name of shareholder
held at the year-end Type Number
Domestically
GAOLING FUND,L.P. 52,835,581 listed foreign 52,835,581
shares
Renminbi
FINANCE BUREAU OF WUXI 22,057,657 22,057,657
ordinary shares
Domestically
BOCI SECURITIES LIMITED 20,837,431 listed foreign 20,837,431
shares
Renminbi
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 102 14,000,000 14,000,000
ordinary shares
Domestically
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 13,463,740 listed foreign 13,463,740
shares
AGRICULTURAL BANK O F CHINA – CHINA
Renminbi
RENAISSANCE EQUITY SECURITIES INVESTMENT 8,786,639 8,786,639
ordinary shares
FUND
33
2013 Semi-annual Report of Wuxi Little Swan Company Limited
CHINA CONSTRUCTION BSNK- BOSHI THEME
Renminbi
INDUSTRIAL STOCK SECURITIES INVESTMENT 7,499,149 7,499,149
ordinary shares
FUND
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108 Renminbi
7,180,101 7,180,101
ordinary shares
CHINA CONSTRUCTION BANK － PENGHUA VALUE Renminbi
7,093,148 7,093,148
ADVANCED STOCK FUND ordinary shares
SUN HUNG KAI INVESTMENT SERVICES Domestically
LTD-CUSTOMERS A/C 6,962,181 listed foreign 6,962,181
shares
Explanation on associated relationship or/and persons acting
in concert among the top ten tradable shareholders and GD MIDEA HOLDING CO., LTD. and TITONI INVESTMENTS
between the top ten tradable shareholders and the top ten DEVELOPMENT LTD. are parties acting in concert.
shareholders
Explanation on shareholders participating in the margin
Naught
trading business (if any) （See note4）
Whether the shareholders of a company conducted the transaction of repurchase under the agreement during the reporting period
□ Yea √ No
III. Particulars about the controlling shareholder
Change of the controlling shareholder during the reporting period
□ Applicable √ Inapplicable
Note : on 28 Mar, 2013, Midea Electric Appliances and their controlling shareholders Midea group co., LTD. (hereinafter referred to
as the Midea Group) has signed The Absorption merger agreement of the Midea group co., LTD and Guangdong Midea electric
appliances co., LTD. (hereinafter referred to as "absorption merger agreement") According to absorb the merger agreement, the
Midea group plans to issue A share to merge Midea Electric Appliances, and as the combined party, all of Midea Electric
Appliances’s assets and liabilities and equity will go to the Midea group, at the same time it would cancel its registration (hereinafter
referred to as the merger).
Before the merger, Midea Electric Appliances directly and indirectly holds 40.08% stocks of the company The Midea group, after the
completion of the merger shall inherit Midea Electric Appliances directly and indirectly holds 40.08%stocks of the company. The
controlling shareholder of the company: Midea Electric Appliances change into the Media Group,. After the merger Midea Electric
Appliances ' commitment to the company will be continued by the Media Group, there is no change in the actual controller of the
company.
On July 30, 2013, Midea group has been received an announcement approved the Midea group co., LTD., Wuxi little swan co., LTD
purchase report and exemption from the obligation of making a takeover offer approval (regulatory permits [2013] no. 1015 issued
by the China securities regulatory commission (hereinafter referred to as the China securities regulatory commission) The China
securities regulatory commission has no objection on the Midea group’s announcement of the purchase report of Wuxi little swan co.,
LTD. The approval exempted the Midea group’ s obligation of making a takeover bid, because of merger control, Wuxi little swan
co., LTD., 253513285 shares accounted for about 40.08% of the company's total equity.
34
2013 Semi-annual Report of Wuxi Little Swan Company Limited
The company has been on April 1 and July 31, respectively published suggestive announcement about changes in controlling
shareholder and statement on the progress of the changes in controlling shareholder, and will notice the subsequent progress timely
according to the requirements.
Change of the actual controller during the reporting period
□ Applicable √ Inapplicable
35
2013 Semi-annual Report of Wuxi Little Swan Company Limited
VII. Directors, Supervisors, Senior Management Staff & Employees
I. Changes in shareholding of directors, supervisors and senior management staffs
□ Applicable √ Inapplicable
There is no change in directors, supervisors and senior management staffs during the reporting period, for details please refer to the
annual report of 2012.
36
2013 Semi-annual Report of Wuxi Little Swan Company Limited
VIII. Financial Report
I Audit opinion
Has this semi-annual report been audited?
□Yes √ No
The financial report for the first half of 2013 has not been audited.
II. Financial statements
The unit of financial in notes to the statements is: RMB Yuan
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Co., Ltd.
Unit: RMB Yuan
Item 30 Jun. 2013 31 Dec. 2012
Current Assets:
Monetary funds 1,545,016,690.32 1,404,291,094.65
Settlement reserves
Intra-group lendings
Transactional financial assets 11,809,250.00 1,224,590.00
Notes receivable 1,552,287,876.27 2,262,814,443.87
Accounts receivable 751,477,026.48 722,198,904.66
Accounts paid in advance 113,496,958.64 97,188,434.21
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 90,081,196.64 16,984,517.49
Financial assets purchased under agreements to resell
Inventories 656,106,685.70 952,747,860.68
Non-current assets due within 1 year
Other current assets 1,810,548,618.45 1,201,171,819.72
Total current assets 6,530,824,302.50 6,658,621,665.28
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 242,256.00 286,944.00
Held-to-maturity investments
37
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Long-term accounts receivable
Long-term equity investment 4,748,975.83 5,695,850.80
Investing property 4,952,732.73 5,049,500.73
Fixed assets 1,242,514,876.24 1,297,298,526.31
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 225,177,591.13 308,714,119.44
R&D expense
Goodwill
Long-term deferred expenses 15,766,638.57 27,729,917.87
Deferred income tax assets 107,737,533.48 100,308,918.86
Other non-current assets
Total of non-current assets 1,601,140,603.98 1,745,083,778.01
Total assets 8,131,964,906.48 8,403,705,443.29
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Customer bank deposits and due to banks and other financial
institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 876,871,919.98 1,003,090,693.95
Accounts payable 1,973,791,312.28 2,129,979,583.30
Accounts received in advance 737,668,513.87 804,441,642.84
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 109,888,309.66 125,902,663.09
Tax payable 56,522,351.56 -3,821,048.41
Interest payable
Dividend payable 5,129,542.23 3,710,206.21
Other accounts payable 56,031,246.85 71,726,352.37
38
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 3,815,903,196.43 4,135,030,093.35
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables 2,549,025.30 2,607,427.30
Estimated liabilities 14,652,284.36 14,041,361.41
Deferred income tax liabilities 1,792,680.90 211,685.10
Other non-current liabilities 920,200.00 1,271,800.00
Total non-current liabilities 19,914,190.56 18,132,273.81
Total liabilities 3,835,817,386.99 4,153,162,367.16
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,129,371,328.91 1,129,409,313.71
Less: Treasury stock
Specific reserves
Surplus reserves 270,617,248.93 270,617,248.93
Provisions for general risks
Retained profits 1,687,532,438.05 1,656,317,300.32
Foreign exchange difference -3,152,837.95 -2,621,131.09
Total equity attributable to owners of the Company 3,716,855,941.94 3,686,210,495.87
Minority interests 579,291,577.55 564,332,580.26
Total owners’ (or shareholders’) equity 4,296,147,519.49 4,250,543,076.13
Total liabilities and owners’ (or shareholders’) equity 8,131,964,906.48 8,403,705,443.29
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangliu
2. Balance sheet of the Company
Prepared by Wuxi Little Swan Co., Ltd.
Unit: RMB Yuan
39
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Item 30 Jun. 2013 31 Dec. 2012
Current Assets:
Monetary funds 854,600,437.02 922,427,475.16
Transactional financial assets 7,517,390.00 1,003,870.00
Notes receivable 1,009,159,092.04 1,630,477,941.72
Accounts receivable 595,992,040.76 315,755,445.34
Accounts paid in advance 60,239,343.65 56,491,157.88
Interest receivable
Dividend receivable
Other accounts receivable 69,816,567.70 14,097,542.06
Inventories 384,907,502.50 595,440,128.45
Non-current assets due within 1 year
Other current assets 1,067,687,194.89 510,244,753.07
Total current assets 4,049,919,568.56 4,045,938,313.68
Non-current assets:
Available-for-sale financial assets 242,256.00 286,944.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,668,493,054.90 1,669,439,929.87
Investing property 4,952,732.73 5,049,500.73
Fixed assets 583,120,851.33 599,765,994.35
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 105,520,250.54 106,918,898.60
R&D expense
Goodwill
Long-term deferred expenses 15,074,761.82 26,516,523.53
Deferred income tax assets 73,756,150.22 65,508,358.77
Other non-current assets
Total of non-current assets 2,451,160,057.54 2,473,486,149.85
Total assets 6,501,079,626.10 6,519,424,463.53
40
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 507,416,919.98 557,839,790.34
Accounts payable 1,283,642,777.91 1,340,509,488.90
Accounts received in advance 491,514,482.27 540,385,145.87
Employee’s compensation payable 35,433,935.88 38,376,269.86
Tax payable 90,869,391.74 15,517,733.11
Interest payable
Dividend payable 5,129,542.23 3,710,206.21
Other accounts payable 208,644,466.12 130,963,937.18
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 2,622,651,516.13 2,627,302,571.47
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 1,148,901.90 178,577.10
Other non-current liabilities 300,000.00 600,000.00
Total non-current liabilities 1,448,901.90 778,577.10
Total liabilities 2,624,100,418.03 2,628,081,148.57
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,291,423,384.14 1,291,461,368.94
Less: Treasury stock
Specific reserves
Surplus reserves 257,967,105.03 257,967,105.03
Provisions for general risks
Retained profits 1,695,100,954.90 1,709,427,076.99
Foreign exchange difference
Total owners’ (or shareholders’) equity 3,876,979,208.07 3,891,343,314.96
41
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Total liabilities and owners’ (or shareholders’) equity 6,501,079,626.10 6,519,424,463.53
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangliu
3. Consolidated income statement
Prepared by Wuxi Little Swan Co., Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun. 2012
I. Total operating revenues 3,998,224,336.31 3,101,328,731.14
Including: Sales income 3,998,224,336.31 3,101,328,731.14
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 3,778,696,264.86 2,849,301,204.78
Including: Cost of sales 3,005,810,911.14 2,453,880,581.19
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 25,957,616.21 15,731,754.99
Selling and distribution expenses 539,966,097.76 283,844,635.96
Administrative expenses 173,092,190.68 123,624,901.19
Financial expenses 20,143,097.74 -30,539,990.76
Asset impairment loss 13,726,351.33 2,759,322.21
Add: Gain/(loss) from change in fair value (“-” means loss) 10,584,660.00 -4,292,300.00
Gain/(loss) from investment (“-” means loss) 38,581,681.44 5,062,792.63
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 268,694,412.89 252,798,018.99
Add: non-operating income 17,650,895.21 19,060,727.43
Less: non-operating expense 7,432,491.94 3,687,447.12
Including: loss from non-current asset disposal
42
2013 Semi-annual Report of Wuxi Little Swan Company Limited
IV. Total profit (“-” means loss) 278,912,816.16 268,171,299.30
Less: Income tax expense 42,992,351.93 34,029,106.95
V. Net profit (“-” means loss) 235,920,464.23 234,142,192.35
Including: Net profit achieved by combined parties before the
combinations
Attributable to owners of the Company 220,961,466.94 216,228,135.55
Minority shareholders’ income 14,958,997.29 17,914,056.80
VI. Earnings per share -- --
(I) Basic earnings per share 0.35 0.34
(II) Diluted earnings per share 0.35 0.34
Ⅶ. Other comprehensive incomes -569,691.66 71,687.54
Ⅷ. Total comprehensive incomes 235,350,772.57 234,213,879.89
Attributable to owners of the Company 220,391,775.28 216,299,823.09
Attributable to minority shareholders 14,958,997.29 17,914,056.80
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangliu
4. Income statement of the Company
Prepared by Wuxi Little Swan Co., Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun. 2012
I. Total sales 2,910,402,363.86 1,895,174,546.25
Less: cost of sales 2,197,383,259.40 1,465,593,618.16
Business taxes and surcharges 20,320,831.11 12,694,175.13
Distribution expenses 394,075,467.07 183,560,344.78
Administrative expenses 109,549,513.68 72,560,340.83
Financial costs 12,174,679.39 -25,175,650.73
Impairment loss 2,850,533.92 -13,852.04
Add: gain/(loss) from change in fair value (“-” means loss) 6,513,520.00 -2,668,300.00
Gain/(loss) from investment (“-” means loss) 22,742,688.68 3,227,992.63
Including: income form investment on associates and joint ventures
II. Business profit (“-” means loss) 203,304,287.97 186,515,262.75
Add: non-business income 7,992,467.00 12,106,147.22
Less: non-business expense 4,601,303.60 3,224,662.42
Including: loss from non-current asset disposal
43
2013 Semi-annual Report of Wuxi Little Swan Company Limited
III. Total profit (“-” means loss) 206,695,451.37 195,396,747.55
Less: income tax expense 31,275,244.26 22,000,592.14
IV. Net profit (“-” means loss) 175,420,207.11 173,396,155.41
V. Earnings per share -- --
(I) Basic earnings per share 0.28 0.27
(II) Diluted earnings per share 0.28 0.27
VI. Other comprehensive income -37,984.80 -47,980.80
VII. Total comprehensive income 175,382,222.31 173,348,174.61
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangliu
5. Consolidated cash flow statement
Prepared by Wuxi Little Swan Co., Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 3,863,185,024.86 3,674,745,722.64
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 50,388,592.37 79,016,919.17
Other cash received relating to operating activities 18,947,986.23 53,681,539.89
Subtotal of cash inflows from operating activities 3,932,521,603.46 3,807,444,181.70
Cash paid for goods and services 1,835,326,159.78 2,160,266,283.46
Net increase of customer lendings and advances
Net increase of funds deposited in the central bank and amount due
from banks
44
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 309,287,589.09 248,006,127.35
Various taxes paid 221,545,520.17 172,805,301.91
Other cash payment relating to operating activities 635,240,038.60 316,928,858.25
Subtotal of cash outflows from operating activities 3,001,399,307.64 2,898,006,570.97
Net cash flows from operating activities 931,122,295.82 909,437,610.73
II. Cash flows from investing activities:
Cash received from withdrawal of investments 4,832,824,376.42
Cash received from return on investments 4,704,180.00 5,011,905.12
Net cash received from disposal of fixed assets, intangible assets
16,794,737.42 5,409,242.65
and other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 4,854,323,293.84 10,421,147.77
Cash paid to acquire fixed assets, intangible assets and other
30,407,330.54 86,310,128.35
long-term assets
Cash paid for investment 5,424,060,000.00
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 5,454,467,330.54 86,310,128.35
Net cash flows from investing activities -600,144,036.70 -75,888,980.58
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder investments
by subsidiaries
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities
Repayment of borrowings 6,961,486.36
Cash paid for interest expenses and distribution of dividends or 182,583,655.47 118,658,592.00
45
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 182,583,655.47 125,620,078.36
Net cash flows from financing activities -182,583,655.47 -125,620,078.36
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 148,394,603.65 707,928,551.79
Add: Opening balance of cash and cash equivalents 1,293,126,217.00 2,279,653,302.57
VI. Closing balance of cash and cash equivalents 1,441,520,820.65 2,987,581,854.36
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangliu
6. Cash flow statement of the Company
Prepared by Wuxi Little Swan Co., Ltd.
Unit: RMB Yuan
Item Jan.-Jun. 2013 Jan.-Jun. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 2,373,009,947.22 2,247,822,270.50
Tax refunds received 23,034,383.44 12,058,954.37
Other cash received relating to operating activities 12,592,559.37 42,551,391.25
Subtotal of cash inflows from operating activities 2,408,636,890.03 2,302,432,616.12
Cash paid for goods and services 1,049,033,086.46 1,096,066,119.14
Cash paid to and for employees 193,294,387.88 137,373,199.90
Various taxes paid 166,569,207.35 132,773,784.78
Other cash payment relating to operating activities 298,898,195.89 185,171,318.69
Subtotal of cash outflows from operating activities 1,707,794,877.58 1,551,384,422.51
Net cash flows from operating activities 700,842,012.45 751,048,193.61
II. Cash flows from investing activities:
Cash received from retraction of investments 2,072,567,723.65
Cash received from return on investments 3,121,840.00 3,137,105.12
Net cash received from disposal of fixed assets, intangible assets
1,722,280.00 5,297,792.57
and other long-term assets
Net cash received from disposal of subsidiaries or other business
46
2013 Semi-annual Report of Wuxi Little Swan Company Limited
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 2,077,411,843.65 8,434,897.69
Cash paid to acquire fixed assets, intangible assets and other
19,877,046.82 62,176,366.55
long-term assets
Cash paid for investment 2,620,000,000.00
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 2,639,877,046.82 62,176,366.55
Net cash flows from investing activities -562,465,203.17 -53,741,468.86
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or
182,583,655.47 118,658,592.00
profit
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 182,583,655.47 118,658,592.00
Net cash flows from financing activities -182,583,655.47 -118,658,592.00
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -44,206,846.19 578,648,132.75
Add: Opening balance of cash and cash equivalents 848,257,647.96 1,470,854,364.19
VI. Closing balance of cash and cash equivalents 804,050,801.77 2,049,502,496.94
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangliu
47
2013 Semi-annual Report of Wuxi Little Swan Company Limited
7. Consolidated statement of changes in owners’ equity
Prepared by Wuxi Little Swan Co., Ltd.
Reporting period
Unit: RMB Yuan
Reporting period
Equity attributable to owners of the Company
Paid-u
p Minority Total owners’
Item Less:
capital Less: interests equity
Paid-up capital treasur Paid-up capital (or Capital
Capital reserve (or Capital reserve treasury Less: treasury Paid-up capital (or
(or share capital) y share capital) reserve
share stock stock share capital)
stock
capital
)
I. Balance at the end of the previous
632,487,764.00 1,129,409,313.71 270,617,248.93 1,656,317,300.32 -2,621,131.09 564,332,580.25 4,250,543,076.12
year
Add: change of accounting policy
Correction of errors in previous
periods
Other
II. Balance at the beginning of the year 632,487,764.00 1,129,409,313.71 270,617,248.93 1,656,317,300.32 -2,621,131.09 564,332,580.25 4,250,543,076.12
III. Increase/ decrease of amount in the
-37,984.80 31,215,137.74 -531,706.86 14,958,997.29 45,604,443.37
year (“-” means decrease)
(I) Net profit 220,961,466.94 14,958,997.29 235,920,464.23
(II) Other comprehensive incomes -37,984.80 -531,706.86 -569,691.66
Subtotal of (I) and (II) -37,984.80 220,961,466.94 -531,706.86 14,958,997.29 235,350,772.57
(III) Capital paid in and reduced by
48
2013 Semi-annual Report of Wuxi Little Swan Company Limited
owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
(IV) Profit distribution -189,746,329.20 -189,746,329.20
1. Appropriations to surplus
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-189,746,329.20 -189,746,329.20
shareholders)
4. Other
(V) Internal carry-forward of
owners’ 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
49
2013 Semi-annual Report of Wuxi Little Swan Company Limited
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
IV. Closing balance 632,487,764.00 1,129,371,328.91 270,617,248.93 1,687,532,438.06 -3,152,837.95 579,291,577.54 4,296,147,519.49
Last year Unit: RMB Yuan
Last year
Equity attributable to owners of the Company
Item Minority Total owners’
Less: General
Paid-up capital (or Specific
Capital reserve treasury Surplus reserve risk Retained profit Others interests equity
share capital) reserve
stock reserve
I. Balance at the end of the previous
632,487,764.00 1,096,157,314.51 249,433,912.28 1,465,610,508.78 -2,544,562.12 523,884,093.79 3,965,029,031.24
year
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
632,487,764.00 1,096,157,314.51 249,433,912.28 1,465,610,508.78 -2,544,562.12 523,884,093.79 3,965,029,031.24
year
III. Increase/ decrease of amount in
33,251,999.20 21,183,336.65 190,706,791.54 -76,568.97 40,448,486.47 285,514,044.89
the year (“-” means decrease)
(I) Net profit 338,387,680.99 40,448,486.47 378,836,167.46
50
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(II) Other comprehensive incomes 1,999.20 -76,568.97 -74,569.77
Subtotal of (I) and (II) 1,999.20 338,387,680.99 -76,568.97 40,448,486.47 378,761,597.69
(III) Capital paid in and reduced by
33,250,000.00 33,250,000.00
owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’ 33,250,000.00 33,250,000.00
equity
3. Others
(IV) Profit distribution 21,183,336.65 -147,680,889.45 -126,497,552.80
1. Appropriations to surplus
21,183,336.65 -21,183,336.65
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-126,497,552.80 -126,497,552.80
shareholders)
4. Other
(V) Internal carry-forward of
owners’ 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
51
2013 Semi-annual Report of Wuxi Little Swan Company Limited
up losses
4. Other
(Ⅵ) Specific reserve
1. Withdrawn for the period
2. Used in the period
(Ⅶ) Other
IV. Closing balance 632,487,764.00 1,129,409,313.71 270,617,248.93 1,656,317,300.32 -2,621,131.09 564,332,580.26 4,250,543,076.13
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangliu
8. Statement of changes in owners’ equity of the Company
Prepared by Wuxi Little Swan Co., Ltd.
Reporting period Unit: RMB Yuan
Reporting period
Item Paid-up Paid-up
Paid-up capital (or Paid-up capital (or Paid-up capital (or Paid-up capital (or Paid-up capital (or Paid-up capital (or
capital (or capital (or
share capital) share capital) share capital) share capital) share capital) share capital)
share capital) share capital)
I. Balance at the end of the previous
632,487,764.00 1,291,461,368.94 257,967,105.03 1,709,427,076.99 3,891,343,314.96
year
Add: change of accounting policy
Correction of errors in previous
periods
Other
II. Balance at the beginning of the
632,487,764.00 1,291,461,368.94 257,967,105.03 1,709,427,076.99 3,891,343,314.96
year
52
2013 Semi-annual Report of Wuxi Little Swan Company Limited
III. Increase/ decrease of amount in
-37,984.80 -14,326,122.09 -14,364,106.89
the year (“-” means decrease)
(I) Net profit 175,420,207.11 175,420,207.11
(II) Other comprehensive incomes -37,984.80 -37,984.80
Subtotal of (I) and (II) -37,984.80 175,420,207.11 175,382,222.31
(III) Capital paid in and reduced by
owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’
equity
3. Others
(IV) Profit distribution -189,746,329.20 -189,746,329.20
1. Appropriations to surplus
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-189,746,329.20 -189,746,329.20
shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital (or
share capital) from capital public
reserves
53
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 632,487,764.00 1,291,423,384.14 257,967,105.03 1,695,100,954.90 3,876,979,208.07
Last year Unit: RMB Yuan
Last year
Paid-up Paid-up
Item Paid-up capital (or Paid-up capital (or Paid-up capital (or Paid-up capital (or Paid-up capital (or Paid-up capital (or
capital (or capital (or
share capital) share capital) share capital) share capital) share capital) share capital)
share capital) share capital)
I. Balance at the end of the previous
632,487,764.00 1,258,209,369.74 236,783,768.38 1,645,274,599.93 3,772,755,502.05
year
Add: change of accounting policy
Correction of errors in previous
periods
Other
II. Balance at the beginning of the
632,487,764.00 1,258,209,369.74 236,783,768.38 1,645,274,599.93 3,772,755,502.05
year
III. Increase/ decrease of amount in 33,251,999.20 21,183,336.65 64,152,477.06 118,587,812.91
54
2013 Semi-annual Report of Wuxi Little Swan Company Limited
the year (“-” means decrease)
(I) Net profit 211,833,366.51 211,833,366.51
(II) Other comprehensive incomes 1,999.20 1,999.20
Subtotal of (I) and (II) 1,999.20 211,833,366.51 211,835,365.71
(III) Capital paid in and reduced by
33,250,000.00 33,250,000.00
owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’ 33,250,000.00 33,250,000.00
equity
3. Others
(IV) Profit distribution 21,183,336.65 -147,680,889.45 -126,497,552.80
1. Appropriations to surplus
21,183,336.65 -21,183,336.65
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-126,497,552.80 -126,497,552.80
shareholders)
4. Other
(V) Internal carry-forward of
owners’ equity
1. New increase of capital (or
share capital) from capital public
reserves
2. New increase of capital (or
55
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 632,487,764.00 1,291,461,368.94 257,967,105.03 1,709,427,076.99 3,891,343,314.96
Legal representative: Mr. Fang Hongbo
Person-in-charge of the accounting work: Mr. Zhang Zhaofeng
Chief of the accounting division: Mr. Zhong Fangli
56
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(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 RMB 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 221,151,735 shares, accounting for 34.96% of the whole shares;
the unrestricted exchange-traded A shares are 220,300,157 shares, accounting for 34.83%; 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 6 Aug.
2013.
57
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(IV) Main accounting policies, accounting estimates and corrections of prior accounting errors
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
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. Relevant expenses
because of the combination, including audit fee, evaluation fee, legal service charge, etc. shall be reckoned into
current profits and losses. But handing charges, commissions from issuing equity securities or bonds because of
the Company combination shall be reckon into shareholder’s equities or initial measurement cost of liabilities,
(2) The business combinations which are not under the same control
The acquirer shall recognize the initial cost of combination under the following principles:
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; 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.
58
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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.
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:
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.
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.
(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
59
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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.
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.
(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.
(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:
The Company transfers the right to another party for receiving the cash flow of the financial asset; and;
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
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
60
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 date, 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:
A serious financial difficulty occurs to the issuer or debtor;
The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of interests
or the principal, etc.;
The creditor makes any concession to the debtor which is in financial difficulties due to economic or legal factors,
etc.
The debtor will probably become bankrupt or carry out other financial reorganizations;
The financial asset can no longer continue to be traded in the active market due to serious financial difficulties of
the issuer;
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.;
Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc.
wherein the debtor operates its business, which makes the investor of an equity instrument unable to take back its
investment;
Where the fair value of the equity instrument investment drops significantly or not contemporarily;
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.
61
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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.
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
Definition or amount criteria for an account
millions (and including 10 millions); the other receivable whose individual
receivable with a 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
Making individual bad-debt provisions for accounts individually; the Company withdraws provision for impairment loss for the
receivable with a significant single amount amount which is 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
As for account receivables with a significant single amount,
together with single testing account receivables before
impairment, shall be divided into several groups. Calculation
Aging group Aging analysis
shall be made according to the balance of the account receivables
groups in the period-end to define impairment loss and withdraw
provision for bad debts.
Accounts receivable within the scope of
Other methods Accounts receivable within the scope of consolidated statements
consolidated statements
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Aging Provision rate for Accounts Receivable (%) Provision rate for Other Receivables (%)
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%
62
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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
Group name Notes of method
Accounts receivable within the scope of
There was not impairment after test; withdrawal of bad debt provision was not needed.
consolidated statements
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
independently
Account receivable with big credit risk because of company liquidation of clients,
litigation
Reason for bad debt provision
Account receivable with an aging over 3 years (deductive significant single account
receivable).
The bad-debt provision is recognized impairment loss and made according to the
Withdrawal method 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, and products in process, stock merchandises (finished goods) and consigned goods.
(2) Pricing method for distributed inventories
Method: Weighted average method
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 date, inventories with contract prices will be determined
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
63
2013 Semi-annual Report of Wuxi Little Swan Company Limited
of inventories, cost and net realizable value are determined based on categories of inventories.
(4) Inventory system of inventories
Inventory system: Perpetual inventory system
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
Packages
Amortization method: one time method
12. Long-term equity investment
(1) Recognition for long-term equity investment
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. Relevant expenses because of the combination, including audit fee, evaluation fee,
legal service charge, etc. shall be reckoned into current profits and losses. But handing charges, commissions from
issuing equity securities or bonds because of the Company combination shall be reckon into shareholder’s equities
or initial measurement cost of liabilities.
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.
Relevant expenses because of the combination, including audit fee, evaluation fee, legal service charge, etc. shall
be reckoned into current profits and losses. But handing charges, commissions from issuing equity securities or
bonds because of the Company combination shall be reckon into shareholder’s equities or initial measurement
cost of liabilities.
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
the fair value of the long-tern equity investment.
64
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(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 shares 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
accounts.
65
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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. Except for the fixed assets which is still using after being
fully depreciated, the Company withdraws depreciation of all the fixed assets with a method of straight-line
depreciation.
(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.
66
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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
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
Categories Estimated useful life (years) Residual value (%) Annual depreciation rate (%)
Houses & buildings 30-40 5% 2.38-3.17%
Machineries 10-18 5% 5.28-9.5%
Electronic equipment 3-8 5% 11.88-31.67%
Vehicles 4-12 5% 7.92-23.75%
Other equipments 8 5% 19%
(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
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.;
⑦ Other evidence indicates that the impairment of assets has probably occurred.
15. Construction in Progress
(1) Categories of construction in process
Construction in progress is accounted according to projects approval classification and defined project costs in
compliance with actual expenses. Self-operating project is calculated according to direct materials, direct wages
and direct construction fees, etc; contract project is calculated according to payable project costs; plant
67
2013 Semi-annual Report of Wuxi Little Swan Company Limited
engineering is calculated according to the value of the installation equipment, installation fee and project test run.
Costs of construction in progress contains borrowing costs which should be capitalized and exchange gains and
losses.
(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. 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.
(3) Period for suspending capitalization of borrowing costs
Provided assets which meet the condition of capitalization in acquisition and construction or manufacture occur
abnormal continuous interruption over 3 months, capitalization of borrowing expenses shall be suspended. During
the interruption period, borrowing expenses are defined as costs reckoned into current gains and losses until the
restart of assets acquisition and construction or manufacture activities. Provided assets which meet the condition
68
2013 Semi-annual Report of Wuxi Little Swan Company Limited
of capitalization in acquisition and construction or manufacture and which reach the standard of expected usage
stage or salable stage, capitalization of borrowing expenses shall continue.
Assets meet the condition of capitalization in acquisition and construction or manufacture and reach the standard
of expected usage stage or salable stage, capitalization of borrowing expenses shall suspended.
(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. 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.
⑥ The use of the intangible products cycle is more than 1 year.
(2) Estimated useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land usage right Beneficial years Straight-line method
69
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Years stimulated in contract or
Non-patented technology Straight-line method
beneficial years
(3) 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；
Other facts that prove the assets actually impaired.
(4) 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.
(5) Calculation of the expenditures of internal R&D project
Expenditures of internal R&D project in researching stage shall be reckoned into current gains and losses;
expenditures of internal R&D project in developing stage which meet the conditions as following are referred to
as intangible assets, otherwise it shall be reckoned into current gains and losses:
① Completing the intangible asset in order to enable it to be used or sold or technically feasible;
② Having the intention to complete the intangible asset and use or sale;
③ The way intangible asset producing economic benefit, including providence of making the products produced
by the intangible asset or the intangible assets in the market. Intangible asset which is used internally shall be
proved its feasibility;
④ having enough support from technology, financial resources and other resources to complete the development
of the intangible asset, and enabling to sale or use the intangible asset.
⑤ Expenditures of the intangible asset in developing stage can be definitely calculated.
The expenses which are reckoned into gains and losses in the period-begin are not longer defined as assets.
Expenses which are capitalized in developing stage shall be marked in balance sheet as developing expenditure,
and transferred into intangible assets when the project reaches the stage of usage.
18. 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.
19. Estimated liabilities
70
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(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 on the balance sheet date, and adjustment will
be made to reflect current best estimation.
20. Share-based payment and equity instruments
(1) Categories of share-based payment
Share-based payment is divided into payment based on equity and cash.
(2) Recognition method of fair value of equity instruments
As for equity instrument such as option in active market, the Company determines its fair value in accordance to
the offer in active market. As for equity instrument such as option in inactive market, the Company determines its
fair value by equity pricing model.
(3) Recognition basis of the best estimate of the vested equity instruments
On every balance sheet date in the waiting period, the company shall reason out the best course to estimate
according to the newly information of the vested employee variation and revise the amounts of expected vested
equity instruments. On vested days, the amounts of final expected vested equity instruments shall comply with
actual vested amounts.
21. 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.
71
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(3) Recognition basis of revenue from rendering labour services
Revenue from rendering labour services can be determined only when the general revenues and costs of services
can be definitely calculated, economic benefits relating to trading can flow into the Company, the degree of the
completion of labour services can be determined.
(4) 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
Labor services which begin and finish in the same accounting year shall be determined its revenues upon the
completion of the services; Labor services which begin and finish not in the same accounting year shall be
determined its revenues by percentage-of-completion method if the outcome of services can be reliably valued on
the balance sheet date. The Company measures the completion progress (percentage-of-completion) in accordance
with the proportion of the costs incurred against the estimated total costs.
22. Government grants
(1) Types
Government grant is monetary assets and non-monetary assets the Company gets from government for free,
excluding capital invested by government as owner. Government grants contain subsidiaries relating to assets and
revenue.
(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.
23. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
Pursuant to the discrepancies between the book value of assets and liabilities and the tax basis, deferred income
tax assets shall be defined by applicable rate during the period of expected withdrawal of the assets or repayment
of the liabilities. 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. On
the balance sheet date, the book value of the deferred income tax assets would be re-checked. If the taxable
income amounts that may probably not be obtained in the future periods to deduct benefits of deferred income tax
assets, the book value of the deferred income tax assets shall be written down. When it is probable to gain enough
taxable income amounts, the write-downs shall be retrieved.
(2) Recognition basis of deferred income tax liabilities
Pursuant to the discrepancies between the book value of assets and liabilities and the tax basis, deferred income
tax assets shall be defined by applicable rate during the period of expected withdrawal of the assets or repayment
of the liabilities.
72
2013 Semi-annual Report of Wuxi Little Swan Company Limited
24. 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.
25. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the reporting period?
□Yes √No
(1) Change of accounting policies
Were the main accounting policies changed during the reporting period?
□Yes √No
(2) Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
□Yes √No
26. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the reporting period?
□Yes √No
(1) Retrospective restatement method
Was any previous accounting errors adopting retrospective restatement method discovered in the reporting period?
□Yes √No
(2) Prospective application method
Was any previous accounting errors adopting prospective application method discovered in the reporting period?
□Yes √No
(V) Taxation
73
2013 Semi-annual Report of Wuxi Little Swan Company Limited
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 Taxation revenue 5%
Urban maintenance and construction tax Payable circulating tax amount 7%
Corporate income tax Payable income tax amount 25% or15%
Education Surcharge Payable circulating tax amount 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
2. Tax preference and official documents
The Company and its subsidiaries Hefei Media Washing Machine Co., Ltd., Wuxi Little Swan GE Co., Ltd., Wuxi
Filin Electronics Co., Ltd. and Jingzhou Little Swan Sanjin Electrical Appliances Co., Ltd. got “High Technology
Enterprises Certificate” respectively in March 2009, November 2008, March 2009, May 2009 and November
2011 with certificate number respectively GR200932000077, GR200834000011, GR200932000078,
GR200932000397 and GR201142000211. The Company and its subsidiaries Hefei Media Washing Machine Co.,
Ltd., Wuxi Little Swan GE Co., Ltd., Wuxi Filin Electronics Co., Ltd. have expired 3 years and passed the
reexamination, obtaining reexamination certificates respectively in June 2012, October 2011, May 2012, August
2012 with certificate number respectively GF201232000096, GF201134000043, GF201232000077,
GF201232000673. 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%.
(VI) Business combination and consolidated financial statements
1. Subsidiaries
74
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(1) Subsidiaries obtained by establishment and investment
Balance of parent
company’s equity
Included
Actual amount The The Deducti after deducting the
Other in
Registered Business Registered Business of investments proportion proportion Minority ble difference that loss of
Subsidiaries Type essential consolidat
place nature capital scope at the of holding of voting interest minority minority interests
investment ed
period-end shares (%) rights (%) interests exceed equity
statement
obtained by minority
shareholders
Manufacture
Wuxi Little Swan General
Holding of washing
Electric Appliances Co. , Wuxi Production 28,000,000.00 19,600,000.00 70% 70% Yes 36,966,644.54
subsidiaries machine and
Ltd.
dryers
Development
Wuxi Little Swan Driving
Holding & research of
& Control Development Wuxi R&D 5,000,000.00 driving& 4,500,000.00 97.3% 100% Yes 311,417.25
subsidiaries control
Technology Co. , Ltd.
technology
Manufacture
of computer
Wuxi Filin Electronics Holding 3,624,600.00 control
Wuxi Production 19,620,000.00 73% 73% Yes 68,393,434.68
Co. , Ltd. subsidiaries USD components
for washing
machine
Manufacture
and sale of
Wuxi Little Swan commercial
Holding
Washing Machine Co. , Wuxi Production 49,679,500.00 washing 37,259,600.00 99.91% 99.91% Yes -38,040,019.50
subsidiaries
Ltd. machine ,
dryers and
spare parts
Wuxi Meitian Refrigerator Holding Wuxi Trading 4,000,000.00 Sales of 24,840,000.00 75% 75% Yes -28,469,737.60
75
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Market Co., Ltd. subsidiaries USD refrigerator
Jiangsu Little Swan Sales of
Holding 419,500,000.0 household
Marketing and Sales Co. , Wuxi Trading 417,550,000.00 99.63% 99.63% Yes -65,591,286.57
subsidiaries 0 electrical
Ltd. appliances
Import &
Wuxi Little Swan Import Holding Import & export of
Wuxi 65,000,000.00 electric 57,500,000.00 88.46% 88.46% Yes -15,448,148.75
& Export Co. , Ltd subsidiaries Export machine
products
Wholly-own Manufacture
MIDAQI. Little Swan 1,000,000.00 of washing
ed Malaysia Sales machine and 4,224,700.00 51% 51% No
Prima Industries USD airconditioner
subsidiary s
Wholly-own
Little Swan International Investmen 5,000,000.00
ed Singapore Investment 34,052,500.00 100% 100% Yes
(Singapore) Co., Ltd. t USD
subsidiary
(2) Subsidiaries obtained by business combination under same control
Unit: RMB Yuan
Balance of parent
The company’s equity
Actual amount proporti The after deducting the
Other Included in Deductible
Register Business Registered Business of investments on of proportion difference that loss of
Subsidiaries Type essential consolidated Minority interest minority
ed place nature capital scope at the holding of voting minority interests
investment statement interests
period-end shares rights (%) exceed equity
(%) obtained by minority
shareholders
Little Swan
Manufacture
(Jing Zhou) Wholly-owned
Jingzhou Production 11,070,200.00 of washing 11,869,400.00 100% 100% Yes
Electronic subsidiary
machines
Appliances
76
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Co., Ltd.
Hefei Media
Washing 135,520,000.00 Manufacture
Holding Hefei Production of washing 830,962,300.00 69.47% 69.47% Yes 471,555,023.96
Machine Co., USD machines
subsidiaries
Ltd.
Hefei Midea
Washing Manufacture
Holding
Machine Hefei Production 20,000,000.00 of washing 20,000,000.00 90% 90% Yes 2,065,057.11
subsidiaries
Manufacture machines
Co., Ltd.
77
2013 Semi-annual Report of Wuxi Little Swan Company Limited
2. 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
(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 Exchange Amount in
Exchange rate
foreign currency rate foreign currency
Cash: -- -- 8,000.20 -- -- 169,620.72
RMB -- -- 8,000.20 -- -- 169,620.72
Bank deposit: -- -- 1,441,512,820.44 -- -- 1,292,956,596.28
RMB -- -- 1,218,971,441.06 -- -- 1,139,055,658.75
USD 29,942,582.10 6.1787 185,006,232.01 22,185,864.08 6.2855 139,449,248.67
EUR 428,766.65 8.0536 3,453,115.09 587,330.39 8.3176 4,885,179.25
JPY 544,380,537.00 0.0626 34,082,032.28 130,960,172.08 0.0730 9,566,509.61
Other monetary funds: -- -- 103,495,869.68 -- -- 111,164,877.65
RMB -- -- 103,495,869.68 -- -- 111,164,877.65
Total -- -- 1,545,016,690.32 -- -- 1,404,291,094.65
2. Trading financial assets
(1) Trading financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Derivative financial assets 11,809,250.00 1,224,590.00
Total 11,809,250.00 1,224,590.00
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance bill 1,552,287,876.27 2,262,814,443.87
Total 1,552,287,876.27 2,262,814,443.87
78
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(2) 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
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Suning Yunshang Group Co., Ltd.
2013.03.07 2013.09.07 10,000,000.00
Procurement Center
Suning Yunshang Group Co., Ltd.
2013.03.07 2013.09.07 10,000,000.00
Procurement Center
Suning Yunshang Group Co., Ltd.
2013.05.10 2013.11.10 10,000,000.00
Procurement Center
Jiangsu Wuxing Electrical Appliance Co.,
2013.05.24 2013.11.24 9,100,000.00
Ltd.
Suning Yunshang Group Co., Ltd.
2013.05.17 2013.11.17 8,293,533.30
Procurement Center
Total -- -- 47,393,533.30 --
4. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance
Category
Proporti Amou Proport
Amount Proportion (%) Amount
on (%) nt ion (%)
Accounts receivable for which bad debt provisions are made on the group basis
Aging group 793,985,030.33 99.88% 42,508,003.85 5.35% 761,867,357.16 99.87% 39,668,452.50 5.21%
Account receivable within
the scope of consolidated
sheet
Subtotal of group 793,985,030.33 99.88% 42,508,003.85 5.35% 761,867,357.16 99.87% 39,668,452.50 5.21%
Accounts receivable with
insignificant single amount
933,477.52 0.12% 933,477.52 100% 1,005,623.68 0.13% 1,005,623.68 100%
and individually withdrawn
bad debt provision
Total 794,918,507.85 -- 43,441,481.37 -- 762,872,980.84 -- 40,674,076.18 --
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:
79
2013 Semi-annual Report of Wuxi Little Swan Company Limited
√Applicable □Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging Book balance Provision for bad
Book balance
Amount Proportion debts Amount Proportion
Within 1 year
Including: -- -- -- --
Subtotal of within
759,425,727.32 95.65% 37,971,286.37 752,659,402.92 98.79% 37,632,970.15
1 year
1-2 years 26,488,726.85 3.34% 2,648,872.68 409,218.54 0.05% 40,921.85
2-3 years 7,550,768.72 0.95% 1,510,153.74 8,376,218.80 1.1% 1,675,243.76
Over 3 years 355,290.94 0.04% 213,174.56 258,000.40 0.04% 154,800.24
3 to 4 years 355,290.94 0.04% 213,174.56 258,000.40 0.03% 154,800.24
4 to 5 years 164,516.50 0.02% 164,516.50 164,516.50 0.02% 164,516.50
Over 5 years 793,985,030.33 -- 42,508,003.85 761,867,357.16 -- 39,668,452.50
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
Withdrawal Reason for
Content of accounts receivable Book balance Bad debt provision
proportion withdrawal
Wuxi Shengchao Petrochemical Difficult to
801,084.02 801,084.02 100%
Metallurgy Factory withdraw
Difficult to
Wuxi Panasonic Refrigerator Co., Ltd. 76,255.55 76,255.55 100%
withdraw
Yanfeng Weishitong Automotive Difficult to withdraw
21,342.86 21,342.86 100%
Electronics Co., Ltd.
Shanghai Rujing Electronics Difficult to withdraw
15,564.15 15,564.15 100%
Technology Co., Ltd.
Shanghai Fushitong General Co., Ltd. 13,768.98 13,768.98 100% Difficult to withdraw
Yanfeng Weishitong Yidong Difficult to withdraw
5,461.96 5,461.96 100%
Motormeter Co., Ltd.
Total 933,477.52 933,477.52 -- --
80
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
Recognition basis of Reversed or collected
Reversed or collected Reversed or
Content of accounts receivable original bad debt amount of the accrued
reason collected amount
provision bad debt provision
Through continuous
Left-over from history,
operating business to
Suzhou Huagao Technology Co., Ltd. several times change of 12,146.16 12,146.16
withdraw the creditor’s
salesmen
rights
Wuxi Shengchao Petrochemical Advanced received
Difficult to withdraw 861,084.02 60,000.00
Metallurgy Factory offsetting
Total -- -- 873,230.18 --
(3) Information of top 5 accounts receivable
Unit: RMB Yuan
The relationship
Name of entity with the Amount Aging Proportion
Company
Singapore Media Electronics Trading Co.,
retailer 257,699,410.57 Within 1 year 32.42%
Ltd.
Suning Yunshang Group Co., Ltd. Suning retailer
185,417,601.48 Within 1 year 23.33%
Procurement Center
Jilin Media Refrigeration Product Sales Co., retailer
27,559,931.03 Within 1 year 3.47%
Ltd.
Brazil ELECTROLUX DO BRASIL retailer 17,952,495.22 Within 1 year 2.26%
Yunnan Media Refrigeration Product Sales retailer
16,006,278.57 Within 1 year 2.01%
Co., Ltd.
Total -- 504,635,716.87 -- 63.49%
(4) The amounts due from related parties
Unit: RMB Yuan
Name of entity The relationship with the Company Amount Proportion
Singapore Media Electronics Trading Co., Ltd. Shareholder controlling company 257,699,410.57
2.42%
PT.Midea Planet Indonesia Shareholder joint stock company 8,164,361.55 1.03%
MIDEA SCOTT&ENGLISH ELECTRONIICS
Shareholder joint stock company 7,450,899.95 0.94%
SDN.BHD
81
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Hefei Hualing Co., Ltd. Shareholder controlling company 106,215.43 0.01%
Total -- 273,420,887.50 34.4%
7. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Book balance Book balance
Category debts debts
Proportion Proportio Proportio
Proporti
Amount Amount Amount n (%)
(%) on (%) Amount n (%)
Other accounts receivable that provisions for bad debts by group
Aging group 95,364,383.55 99.28% 5,283,186.91 5.54% 21,500,115.42 98.98% 4,515,597.93 21%
Other account
receivable with in the
scope of consolidated
sheet
Subtotal of group 95,364,383.55 99.28% 5,283,186.91 5.54% 21,500,115.42 98.98% 4,515,597.93 21%
Other accounts
receivable that is
individually
692,931.39 0.72% 692,931.39 100% 221,066.34 1.02% 221,066.34 100%
insignificant but
provisions for bad debts
individually
Total 96,057,314.94 -- 5,976,118.30 -- 21,721,181.76 -- 4,736,664.27 --
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□Applicable √Inapplicable
In the group, other accounts receivable that provision for bad debts by aging analysis:
√Applicable □Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Book balance
Aging Provision for bad
Proportio Book balance
Amount debts Amount Proportion
n
Within 1 year
Including:
82
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Within 1 year 92,278,485.13 96.76% 4,614,242.44 12,717,942.28 59.15% 635,897.12
Subtotal of within 1 year 1,414,248.41 1.48% 141,424.85 782,868.30 3.64% 78,286.83
1-2 years 1,188,675.89 1.25% 237,735.16 2,638,772.31 12.27% 527,754.46
2-3 years 482,974.12 0.51% 289,784.47 5,217,182.53 24.27% 3,130,309.52
Over 3 years 5,203,958.41 24.2% 3,122,375.05
3 to 4 years 482,974.12 0.51% 289,784.47 13,224.12 0.06% 7,934.47
4 to 5 years 143,350.00 0.67% 143,350.00
Over 5 years 95,364,383.55 -- 5,283,186.92 21,500,115.42 -- 4,515,597.93
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
Unit: RMB Yuan
Provision for bad Withdrawal
Content Book balance Reason
debts percentage
Difficult to
Guangzhou Shibang Human Resource Co., Ltd. 399,265.05 399,265.05 100%
withdraw
Difficult to
Qindao Biqin Electromechanical Co., Ltd. 126,359.50 126,359.50 100%
withdraw
Difficult to
Suzhou Huichuang Electromechanical Co., Ltd. 51,000.00 51,000.00 100%
withdraw
Wuxi Jitong Electromechanical Technology and Difficult to
40,780.00 40,780.00 100%
Development Co., Ltd. withdraw
Difficult to
Wuxi Dongcheng Plastic Metallergy Co., Ltd. CNY 30,100.06 30,100.06 100%
withdraw
Difficult to
Wuxi Meipusuote Electronics Technology Co., Ltd. 21,600.00 21,600.00 100%
withdraw
Shenzhen Emerson Household Appliance Applied Difficult to
15,586.02 15,586.02 100%
Technology Co., Ltd. withdraw
Difficult to
Wuxi Xishan Hengfeng Paper Industry Co., Ltd. 2,287.00 2,287.00 100%
withdraw
Difficult to
Wuxi Pengde Auto Parts Co., Ltd. 2,136.10 2,136.10 100%
withdraw
Difficult to
Wuxi Ruilong Print Co., Ltd. 2,000.00 2,000.00 100%
withdraw
83
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Difficult to
Wuxi Second Plastic Factory Co., Ltd. 1,074.66 1,074.66 100%
withdraw
Qinzhou Yongsheng Color-printing and Packaging Difficult to
500.00 500.00 100%
Co., Ltd. withdraw
Difficult to
Wuxi Wanji Washing Machine Appliance Co., Ltd. 243.00 243.00 100%
withdraw
Total 692,931.39 692,931.39 -- --
(2) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship with the Proportion of the
Name of entity Amount Aging
Company total (%)
Wuxi People’ Government Newly Area Within one
Government sector 61,614,548.70 64.46%
Management Council Finance Bureau year
Hefei Financial Treasury Payment Center Government sector 19,780,310.00 Within one year 20.69%
Wangruiqun staff 1,839,000.00 Within one year 1.92%
Industrial and Commercial Bank of China
cooperator 1,200,000.00 Within one year 1.26%
Limited, Beijing Branch Assets Custody Account
Wuxi China Resources Natural Gas Co., Ltd. cooperator 688,983.70 Within one year 0.72%
Total -- 85,122,842.40 -- 89.05%
6. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 105,940,641.86 93.34% 88,507,679.47 91.07%
1 year to 2 years 6,100,626.29 5.38% 8,131,834.74 8.37%
2 years to 3 years 1,455,690.49 1.28% 548,920.00 0.56%
Total 113,496,958.64 -- 97,188,434.21 --
(2) Information of the top 5 prepayment
Unit: RMB Yuan
84
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Relationship
Reason for
Name of entity with the Amount Aging
unsettled
Company
Yanshan Operating Dept. of Sinopec Chemical Sales Advance land
Supplier 16,985,200.00 Within one year
Company Limited payment
Advance land
Suzhou Jiahe Plastic Industry Co., Ltd. Supplier 16,500,000.00 Within one year
payment
Not service was
Shanghai Shabo Basis Trade&Commerce Co., Ltd. Supplier 13,676,000.00 Within one year
provided
Advance material
East China Chemical Sales of PetroChina Company Limited Supplier 13,395,000.00 Within one year
payment
Advance material
Anhui Power Company Hefei Power Supply Company Supplier 6,111,708.00 Within one year
payment
Total -- 66,667,908.00 -- --
7. 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 41,676,802.04 10,282,088.44 31,394,713.60 51,824,769.90 717,694.85 51,107,075.05
Construction
9,414,188.02 9,414,188.02 10,576,555.01 10,576,555.01
contract assets
Inventory goods 640,581,273.39 25,283,489.31 615,297,784.08 916,584,493.31 25,520,262.69 891,064,230.62
Total 691,672,263.45 35,565,577.75 656,106,685.70 978,985,818.22 26,237,957.54 952,747,860.68
(2) Impairment of inventories
Unit: RMB Yuan
Decrease
Category Opening balance Increase Closing balance
Reversal Written off
Raw materials 717,694.85 9,564,393.59 10,282,088.44
Inventory goods 25,520,262.69 155,098.50 391,871.88 25,283,489.31
Total 26,237,957.54 9,719,492.09 391,871.88 35,565,577.75
8. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
85
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Bank financing 1,798,000,000.00 1,171,940,000.00
Deferred expense-module 12,548,618.45 29,231,819.72
Total 1,810,548,618.45 1,201,171,819.72
9. 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 equity instruments 242,256.00 286,944.00
Total 242,256.00 286,944.00
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.
10. Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Percentage Total
Voting Net profit
of holding operation
percentage of Total closing Total closing Net closing of the
Name of investee shares of revenue of the
the Company assets liabilities assets reporting
the reporting
in investee period
Company period
I. Joint ventures
II. Associated enterprises
Attend Logistics Co., Ltd. 20% 20% 21,844,469.59 5,149,590.46 16,694,879.13 4,601,237.96 265,625.13
11. Long-term equity investment
(1) List of long-term equity investment
Unit: RMB Yuan
Explanatio Withdr
n for awn
Share indifferenc impair Cash
Voting
holding es between ment bonus
Accou Initial percent
Opening Increase/decrea Closing percent the share Impairment provisi in the
Investee nting investment age in
balance se balance age in holding provision on in reporti
method cost investe
investe percentage the ng
e
e and voting reporti period
percentage ng
in investee period
Attend Equity 2,000,000.00 3,285,850.80 53,125.03 3,338,975.83 20% 20%
86
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Logistics method
Co., Ltd.
Hengtai
Insurance Cost
1,000,000.00 1,000,000.00 -1,000,000.00
Brokers Co., method
Ltd
Suzhou
People's Cost 50,000.
150,000.00 150,000.00 150,000.00
Shopping method 00
Mall
Bank of
Cost
Jiangsu Co., 1,100,000.00 1,210,000.00 1,210,000.00
method
Ltd
Inner
Mongolia
Baotou Cost
50,000.00 50,000.00 50,000.00
Department method
Store Co.,
Ltd.
(Malaysia)
Midaqi Little Cost
4,224,744.00 51% 51% 4,224,744.00
Swan Prima method
Industries
50,000.
Total -- 8,524,744.00 5,695,850.80 -946,874.97 4,748,975.83 -- -- -- 4,224,744.00
00
12. Investment property
(1) Investment property calculated by cost
Unit: RMB Yuan
Item Opening book value Increase in this period Decrease in this period Closing book value
I. Total of original book value 6,948,011.11 6,948,011.11
1. Property and building 6,948,011.11 6,948,011.11
II. Total of accumulated
1,898,510.38 96,768.00 1,995,278.38
depreciation and amortization
1. Property and building 1,898,510.38 96,768.00 1,995,278.38
III. Total of the net book value of
5,049,500.73 -96,768.00 4,952,732.73
the investment real estate
1. Property and building 5,049,500.73 -96,768.00 4,952,732.73
IV. Total of book value of real 5,049,500.73 -96,768.00 4,952,732.73
87
2013 Semi-annual Report of Wuxi Little Swan Company Limited
estate investment
1. Property and building 5,049,500.73 -96,768.00 4,952,732.73
Unit: RMB Yuan
Reporting period
Depreciation and amortization amount 96,768.00
13. Fixed assets
Unit: RMB Yuan
Decrease in the
Item Opening book balance Increase in the reporting period Closing book balance
reporting period
I. Total original book value 1,771,191,499.59 20,005,010.22 27,163,462.33 1,764,033,047.48
Including: Property and
832,445,990.38 597,215.14 833,043,205.52
building
Machineries 822,132,516.71 15,923,892.62 25,786,325.57 812,270,083.76
Vehicles 26,378,509.82 246,101.67 867,448.00 25,757,163.49
Electronic equipments and
90,234,482.68 3,237,800.79 509,688.76 92,962,594.71
other
Increase in
Withdrawal in Decrease in the
-- Opening book balance reporting Closing book balance
reporting period reporting period
period
II.Accumulated depreciation 457,587,977.26 61,900,273.15 14,275,075.19 505,213,175.22
Including: Property and
114,521,682.82 16,862,103.00 131,383,785.82
building
Machineries 276,580,778.39 36,473,849.37 13,549,395.90 299,505,231.86
Vehicles 12,099,850.20 1,450,165.42 394,690.79 13,155,324.83
Electronic equipments and
54,385,665.85 7,114,155.36 330,988.50 61,168,832.71
other
-- Opening book balance -- Closing book balance
III. The net book value of
1,313,603,522.33 -- 1,258,819,872.26
fixed assets
Including: Property and
717,924,307.56 -- 701,659,419.70
building
Machineries 545,551,738.32 -- 512,764,851.90
Vehicles 14,278,659.62 -- 12,601,838.66
Other equipment 35,848,816.83 -- 31,793,762.00
IV. Total impairment
16,304,996.02 -- 16,304,996.02
provision
Including: Property and
15,098,707.55 -- 15,098,707.55
building
Machineries 776,585.55 -- 776,585.55
Vehicles 24,351.50 -- 24,351.50
Electronic equipments and 405,351.42 -- 405,351.42
88
2013 Semi-annual Report of Wuxi Little Swan Company Limited
other
V. Total book value of fixed
1,297,298,526.31 -- 1,242,514,876.24
assets
Including: Property and
702,825,600.01 -- 686,560,712.15
building
Machineries 544,775,152.77 -- 511,988,266.35
Vehicles 14,254,308.12 -- 12,577,487.16
Electronic equipments and
35,443,465.41 -- 31,388,410.58
other
Depreciation amount of this reporting period was RMB 61,900,273.15; original value of RMB 0.000 was transferred into fixed assets
from construction project.
14. Construction in progress
(1) Construction in progress
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Tianjing Rotary Drum Factory
Household Pile Foundation 5,533,291.00 5,533,291.00
Project
Total 5,533,291.00 5,533,291.00
(2) Changes in significant construction in progress Unit: RMB Yuan
Trans Including:
Project Capitaliz Sour Closin
ferred Capitaliz capitalizati
Name of Opening Incre Other input Project ation of ce of g
Budget to ation of on of
project balance ase decrease percentage process interest fundi balanc
fixed interest interest this
of budget rate (%) ng e
assets period
Tianjing
Rotary Drum
Factory
Household 7,617,600.00 5,533,291.00 5,533,291.00 72.64%100 0.00
Pile
Foundation
Project
Total 7,617,600.00 5,533,291.00 5,533,291.00 -- -- -- -- 0.00
(3) Impairment provision of construction in progress
Unit: RMB Yuan
Increase in
Opening Decrease in the Closing
Item the reporting Reason for withdrawal
amount reporting period balance
period
Tianjing Rotary Drum Land and above-ground structures
5,533,291.00 5,533,291.00 0.00
Factory Household Pile were returned to local government
89
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Foundation Project according to the original land selling
prices in January.
Total 5,533,291.00 5,533,291.00 --
15. Intangible assets
(1) Information
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening balance Closing balance
period reporting period
I. Total original book value 347,207,335.42 83,226,485.67 263,980,849.75
Land use right 343,533,013.86 83,226,485.67 260,306,528.19
Non-patent technology 1,992,000.00 1,992,000.00
Software, etc. 1,682,321.56 1,682,321.56
II. Accumulative
38,026,790.18 2,886,528.31 2,110,059.87 38,803,258.62
amortization
Land use right 34,650,420.55 2,792,729.76 2,110,059.87 35,333,090.44
Non-patent technology 1,992,000.00 1,992,000.00
Software, etc. 1,384,369.63 93,798.55 1,478,168.18
III. Total net book value of
309,180,545.24 -2,886,528.31 81,116,425.80 225,177,591.13
intangible assets
Land use right 308,882,593.31 -2,792,729.76 81,116,425.80 224,973,437.75
Non-patent technology
Software, etc. 297,951.93 -93,798.55 204,153.38
IV. Total impairment
466,425.80 466,425.80
provision
Land use right 466,425.80 466,425.80
Non-patent technology
Software, etc.
Total book value of
308,714,119.44 -2,886,528.31 80,650,000.00 225,177,591.13
intangible assets
Land use right 308,416,167.51 -2,792,729.76 80,650,000.00 224,973,437.75
Non-patent technology
Software, etc. 297,951.93 -93,798.55 204,153.38
Amortization was of RMB 2,886,528.31 in the reporting period.
16. Long-term amortization expense
Unit: RMB Yuan
Amortization Reason for other
Item Opening balance Increase Other decrease Closing balance
balance decrease
Module 23,756,706.29 1,185,470.08 11,994,070.95 12,948,105.42
IT consultant 3,217,355.94 516,000.00 1,315,827.51 2,417,528.43
90
2013 Semi-annual Report of Wuxi Little Swan Company Limited
expense
Improvement of
755,855.64 354,850.92 401,004.72
lease expense
Total 27,729,917.87 1,701,470.08 13,664,749.38 15,766,638.57 --
17. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
Confirmed deferred tax assets and liabilities
Unit: RMB Yuan
Item Closing amount Opening amount
Deferred income tax assets:
Provision for assets impairment 12,841,573.76 10,841,379.05
Remuneration and dismiss expense 5,778,963.10 6,335,180.75
Withdrawal expense 79,242,392.92 69,848,344.20
Internal unrealized profit 6,221,287.66 9,669,597.27
Estimated liabilities 2,197,842.66 2,106,204.21
Deferred income (government subsidy) 138,030.00 190,770.00
Investment differences 1,317,443.38 1,317,443.38
Subtotal 107,737,533.48 100,308,918.86
Deferred income tax liabilities:
Estimated value of trading financial instruments,
1,771,387.50 183,688.50
derivative financial instruments
Fair value changes on available-for-sale financial
21,293.40 27,996.60
assets that recognized into capital reserves
Subtotal 1,792,680.90 211,685.10
Unconfirmed deferred tax assets and liabilities
Unit: RMB Yuan
Item Closing amount Opening amount
Deductible temporary differences 15,668,879.30 21,677,550.56
Deductible losses 58,934,274.13 56,550,772.09
91
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Total 74,603,153.43 78,228,322.65
Notes of taxable differences and deductible differences between projects
Unit: yuan
Amount
Item
End of the period Opening of the period
Item of taxable differences
Estimated value of trading financial instruments 11,809,250.00 1,224,590.00
Changes in the fair value of Available-for-sale
141,956.00 186,644.00
financial assets
Subtotal 11,951,206.00 1,411,234.00
Item of deductible differences
Preparation for the impairment of assets 85,610,491.85 72,244,281.49
Payment and dismissal costs 38,526,420.67 42,234,538.30
Accrued expenses 528,282,619.45 465,655,628.05
Internal unrealized profits 41,475,251.07 64,463,981.81
Anticipation liabilities 14,652,284.36 14,041,361.41
Deferred income (government subsidies 920,200.00 1,271,800.00
Investment differences 8,782,955.88 8,782,955.88
Subtotal 718,250,223.28 668,694,546.94
18. Notes of preparation for the impairment of assets
Unit: yuan
Book value at Decrease in the period
Increase in the Book value at the
Item the opening of
period Reversal Written off end of the period
the period
1. Provision for bad debts 45,410,740.45 4,377,995.19 371,135.95 49,417,599.69
2. Inventory falling price reserves 26,237,957.54 9,719,492.09 391,871.88 35,565,577.75
3. Long-term equity investment devaluation
4,224,744.00 4,224,744.00
provision
4. Fixed assets depreciation reserves 16,304,996.02 16,304,996.02
5. Construction-in-process depreciation reserves 5,533,291.00 5,533,291.00
6. Reserve for intangible assets impairment 466,425.80 466,425.80
Total 98,178,154.81 14,097,487.28 371,135.95 6,391,588.68 105,512,917.46
Notes: Naught
92
2013 Semi-annual Report of Wuxi Little Swan Company Limited
19. Notes payable
Unit: yuan
Category Closing amount Opening amount
Banker's acceptance bill 876,871,919.98 1,003,090,693.95
Total 876,871,919.98 1,003,090,693.95
The amount due of next accounting period is RMB 876,871,919.98.
20. Accounts receivable
(1) Notes
Unit: yuan
Item Closing amount Opening amount
Within 1 year 1,871,368,933.05 2,044,635,160.07
1 to 2 years 59,548,265.71 47,405,124.51
2 to 3 years 18,173,168.35 9,750,315.03
3 to 5 years 16,204,412.48 15,836,998.95
Over 5 years 8,496,532.69 12,351,984.74
Total 1,973,791,312.28 2,129,979,583.30
(2) Notes of large amount of accounts payable aged over one year
The total of the accounts payable aged over one year is RMB 10,242,240,000, mainly is the not yet settled
accounts payable for equipment and payment for goods.
21. Deposit received
(1) Notes
Unit: yuan
Item Closing amount Opening amount
Within 1 year 701,364,046.75 770,534,048.23
1 to 2 years 5,583,954.73 7,213,629.28
2 to 3 years 6,098,426.76 1,928,106.72
3 to 5 years 12,881,517.72 12,450,147.61
Over 5 years 11,740,567.91 12,315,711.00
Total 737,668,513.87 804,441,642.84
93
2013 Semi-annual Report of Wuxi Little Swan Company Limited
(2) Notes of the advances received aging over one year
The total is RMB 3,630,450,000, mainly is the unsettled advances received.
22. Payroll payable
Unit: yuan
Book value at the Book value at the end
Item Increase in the period Decrease in the period
opening of the period of the period
I. Salary, bonus, allowance,
58,136,514.42 222,061,836.19 236,583,102.77 43,615,247.84
subsidy
II. Employee welfare 4,222,517.84 9,559,769.82 9,946,667.29 3,835,620.37
III. Social insurance 7,797,272.02 47,850,484.79 44,282,762.60 11,364,994.21
IV. Housing fund 6,161,915.24 9,147,145.00 9,244,219.56 6,064,840.68
V. Redemption for terminations of
45,774,549.79 1,725,749.98 6,218,175.89 41,282,123.88
labor contract
VI. Others 3,809,893.78 2,928,249.88 3,012,660.98 3,725,482.68
Total 125,902,663.09 293,273,235.66 309,287,589.09 109,888,309.66
RMB 0.00 is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB 3,725,482.68, and the non-monetary
benefits are RMB0.00, as well as the compensation for terminating the labor contract is RMB
41,282,123.88.
23. Taxes payable
Unit: yuan
Item Closing amount Opening amount
Value-added tax -54,438,252.61 -59,759,954.01
Consumption tax 1,898,963.13 1,930,713.13
Business tax 73,932,244.39 38,520,975.00
Corporate income tax 1,829,045.41 1,541,484.10
Personal income tax 1,966,281.88 498,728.40
Urban maintenance and construction tax 1,340,618.95 131,494.23
Property tax 1,774,570.96 1,376,460.23
Land use tax 350,261.21
Stamp tax 1,433,796.64 106,658.87
Education surtax 14,747,418.00 9,612,869.00
Other 12,037,664.81 1,869,261.43
94
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Total 56,522,351.56 -3,821,048.41
24. Other accounts payable
(1) Notes
Unit: yuan
Item Closing amount Opening amount
Within 1 year 24,150,519.86 39,791,570.09
1 to 2 years 23,632,082.33 17,330,598.41
2 to 3 years 1,626,148.80 5,188,603.80
3 to 5 years 6,342,345.86 7,999,362.70
Over 5 years 280,150.00 1,416,217.37
Total 56,031,246.85 71,726,352.37
(2) Notes of the other large amount accounts payable aging over 1 year
Mainly led by the unsettled temporary receipts and owed receipts.
(3) Notes of other accounts payable with significant amount
Other accounts payable with significant amount is the temporary income margin.
25. Estimated liabilities
Unit: yuan
Item Opening amount Increase in the period Decrease in the period Closing amount
Product quality assurance 14,041,361.41 832,543.55 221,620.60 14,652,284.36
Total 14,041,361.41 832,543.55 221,620.60 14,652,284.36
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.
2013, the company has a risk loss of RMB 1,465,230,000 for the sold products.
26. Account payable special funds
Unit: yuan
95
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Increase in the Decrease in the
Item Opening amount Closing amount Notes
period period
Relocation compensation 2,607,427.30 58,402.00 2,549,025.30
Total 2,607,427.30 58,402.00 2,549,025.30 --
Notes:
The account payable special funds at the end of the period owns to the needs of urban planning. Wuxi New
District Xin’an Street Relocation Office had replaced land with the Company’s holding subsidiary, Wuxi
Feiling Electronics Co., Ltd., and at the same time made up for the original buildings on the land.
27. Other non-current liabilities
Unit: yuan
Item Book value at the end of the period Book value at the opening of the period
Funding of National enterprise technology cent
300,000.00 600,000.00
er innovation capability project
Substation reconstruction aid 302,600.00 327,800.00
Special guide funding of provincial modern
317,600.00 344,000.00
service industry development
Total 920,200.00 1,271,800.00
Notes of other non-current liabilities, including all kinds of government grants and closing balance
associated with assets and income.
28. Share capital
Unit: yuan
Increase/Decrease (+/-)
Opening Closing
Issuing new Capitalization of public
amount Bonus shares Other Subtotal amount
shares reserves
Total shares 632,487,764.00 632,487,764.00
29. Capital reserves
Unit: yuan
Increase in the
Item Opening amount Decrease in the period Closing amount
period
Capital premium (share
1,055,182,718.57 1,055,182,718.57
capital premium)
Capital reserves transferred
39,179,385.00 39,179,385.00
from original system
Gains and losses from fair value
158,647.40 37,984.80 120,662.60
changes
96
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Equity investment preparation 1,638,562.74 1,638,562.74
Share-based payment 33,250,000.00 33,250,000.00
Total 1,129,409,313.71 37,984.80 1,129,371,328.91
Notes:
The amount decreased in this period is RMB 37,984.80, which is the changes of gains and losses of
fair value of available-for-sale financial assets this year.
30. Surplus reserves
Unit: yuan
Item Opening amount Increase in the period Decrease in the period Closing amount
Statutory surplus reserves 270,617,248.93 270,617,248.93
Total 270,617,248.93 270,617,248.93
31、Retained profits
Unit: yuan
Withdrawal or distributed
Item Amount
proportion
Opening balance of retained profits before adjustments 1,656,317,300.32 --
Opening balance of retained profits after adjustments 1,656,317,300.32 --
Add: Net profit attributable to owners of the Company 220,961,466.94 --
Dividend of common stock payable 189,746,329.20
Closing retained profits 1,687,532,438.05 --
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.
97
2013 Semi-annual Report of Wuxi Little Swan Company Limited
32. Revenue and Cost of Sales
(1) Revenue and Cost of Sales
Unit: yuan
Item Reporting period Same period of last year
Sales of main business 3,687,450,129.55 2,805,116,121.47
Other operating income 310,774,206.76 296,212,609.67
Cost of sales 3,005,810,911.14 2,453,880,581.19
(2) Main business (Classified by industry)
Unit: yuan
Reporting period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Home appliances 3,687,450,129.55 2,726,631,893.14 2,805,116,121.47 2,213,791,209.14
Total 3,687,450,129.55 2,726,631,893.14 2,805,116,121.47 2,213,791,209.14
(3) Main business (Classified by product)
Unit: yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Washing machine 3,687,450,129.55 2,726,631,893.14 2,805,116,121.47 2,213,791,209.14
Total 3,687,450,129.55 2,726,631,893.14 2,805,116,121.47 2,213,791,209.14
(4) Main business (Classified by area)
Unit: yuan
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Domestic 2,872,344,515.78 1,983,874,080.54 1,744,614,729.04 1,185,059,471.28
Other countries 815,105,613.77 742,757,812.60 1,060,501,392.43 1,028,731,737.86
Total 3,687,450,129.55 2,726,631,893.14 2,805,116,121.47 2,213,791,209.14
(5) The revenue of sales from the top five customers
Unit: yuan
98
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Proportion of total business revenue
Customer Main business revenue
(%)
Midea Electric Trading (Singapore) Co.Pte.Ltd. 517,236,107.28 12.94%
Suning Yunshang Group Co., Ltd., Suning Procurement Center 362,762,958.33 9.07%
Guizhou Midea Refrigeration Product Marketing Co., Ltd. 80,289,625.97 2.01%
TOSHIBA INTERNATIONAL PROCUREMENT HONG
78,350,015.91 1.96%
KONG,LTD.
Kunming Midea Refrigeration Product Marketing Co., Ltd. 55,387,326.38 1.39%
Total 1,094,026,033.87 27.37%
33. Business tax and surtax
Unit: yuan
Calculation and payment
Item Reporting period Same period of last year
standard
Business tax 5,000.00 451,411.83
Urban maintenance and construction tax 15,156,953.78 8,913,533.50
Education surtax 10,795,662.43 6,366,809.66
Total 25,957,616.21 15,731,754.99 --
34. Selling expenses
Unit: yuan
Item Reporting period Same period of last year
Employee compensation 76,234,924.20 37,591,671.52
Transportation and handling charges 130,242,382.58 100,095,591.85
Travel expense 12,797,757.82 1,564,617.30
Rental expense 32,455,094.80 46,479,525.65
Installation expense 48,906,375.12
Spare part expense 14,295,051.53 4,160,039.10
Maintenance expense 39,098,324.93 6,683,604.24
Advertisement, sales promotional
169,723,315.28 49,367,239.28
expense
Others 16,212,871.50 37,902,347.02
Total 539,966,097.76 283,844,635.96
99
2013 Semi-annual Report of Wuxi Little Swan Company Limited
35. Administration expense
Unit: yuan
Item Reporting period Same period of last year
Employee compensation 64,056,529.49 52,808,310.65
Depreciation 11,377,056.42 11,287,000.77
Utility bills 3,688,956.75 5,096,584.20
Quality loss 5,826,771.54 5,004,594.69
Building taxes 5,896,626.16 3,822,657.84
Product certification fee 572,756.78 695,355.19
Share-based payment
Others 81,673,493.54 44,910,397.85
Total 173,092,190.68 123,624,901.19
36. Financial expense
Unit: yuan
Item Reporting period Same period of last year
Interest expense 1,760,399.50 4,723,438.16
Less: interest income -6,020,314.35 -34,084,424.15
Add: exchange loss 22,963,618.21 -2,620,805.28
Add: others 1,439,394.38 1,441,800.51
Total 20,143,097.74 -30,539,990.76
37. Gains and losses from changes in fair value
Unit: yuan
Source Reporting period Same period of last year
Trading financial assets 10,584,660.00 -4,292,300.00
Total 10,584,660.00 -4,292,300.00
38. Investment income
(1) Notes
Unit: yuan
Item Reporting period Same period of last year
Long-term equity investment income 50,000.00 163,405.12
100
2013 Semi-annual Report of Wuxi Little Swan Company Limited
accounted by cost method
Long-term equity investment income
53,125.03 50,887.51
accounted by equity method
Investment income received from
4,654,180.00 4,848,500.00
holding of trading financial assets
Others 33,824,376.41
Total 38,581,681.44 5,062,792.63
(2) Long-term equity investment income accounted by cost method
Unit: yuan
Name of investee Reporting period Same period of last year Reason for increase/decrease
Suzhou People's Shopping Mall 50,000.00 40,000.00
Bank of Jiangsu 123,405.12
Total 50,000.00 163,405.12 --
(3) Long-term equity investment income accounted by equity method
Unit: yuan
Name of investee Reporting period Same period of last year Reason for increase/decrease
Attend Logistics Co., Ltd. 53,125.03 50,887.51
Total 53,125.03 50,887.51 --
39. Impairment losses
Unit: yuan
Item Reporting period Same period of last year
I. Bad debts losses 4,006,859.24 3,378,437.94
II. Inventory falling price losses 9,719,492.09 -619,115.73
Total 13,726,351.33 2,759,322.21
40. Non-operating gains
(1) Notes
Unit: yuan
Included in the amount of the
Item Reporting period Same period of last year non-recurring gains and losses
of the current period
101
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Total gains from disposal of
4,258,090.27 8,366,649.38 4,258,090.27
non-current assets
Including：Gains from disposal of
4,258,090.27 8,366,649.38 4,258,090.27
fixed assets
Government grants 7,073,551.50 4,578,571.99 7,073,551.50
Penalty income 4,054,332.64 3,752,149.92 4,054,332.64
Others 2,264,920.80 2,363,356.14 2,264,920.80
Total 17,650,895.21 19,060,727.43 17,650,895.21
(2) List of government grants
Unit: yuan
Item Reporting period Same period of last year Notes
VAT refund upon collection 2,708,323.50 902,394.27
Government grants of foreign trade and economic
262,000.00 640,000.00
cooperation for regional development
Relocation allowance
500,000.00
of industrial design
Foreign trade promoting rewards 1,364,082.00
Patent grants and new product
116,646.00
benefits
Award of cleaner production
100,000.00
projects
Special guide funding of provincial modern service industry
26,400.00
development
Subsidy on export letter of credit 1,623,000.00 353,200.00
Subsidy on technology development plan project 300,000.00 300,000.00
Special funds on business development 1,694,300.00
Subsidy on developing international famous brand of
200,000.00
Jiangsu Province
Special funds on attracting investment 150,000.00
Subsidies for AICA of export products 115,200.00
Rewards on patent by Science Bureau 63,400.00
102
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Reward for Commending Excellent Enterprises 2011 by
50,000.00
Economic and Trade Bureau
Financial subsidy on the Top Ten Software Corporations of
35,000.00
Wuxi
Others 73,100.00 75,077.72
Total 7,073,551.50 4,578,571.99 --
41. Non-operating expenses
Unit: yuan
Included in the amount of
Item Reporting period Same period of last year the non-recurring gains and
losses of the current period
Including: Loss on disposal of fixed assets 3,189,776.67 816,841.83 3,189,776.67
Penalty expense 361,628.40 75,975.18 361,628.40
Local fees (flood prevention and security
2,539,111.79 1,989,888.75
funds etc.)
Others 1,341,975.08 804,741.36 1,341,975.08
Total 7,432,491.94 3,687,447.12 4,893,380.15
42. Income tax expense
Unit: yuan
Item Reporting period Same period of last year
Current income tax expense accounted by
48,833,267.58 16,508,665.99
tax and relevant regulations
Adjustment of income tax -5,840,915.65 17,520,440.96
Total 42,992,351.93 34,029,106.95
43. Calculation procedure of basic earnings per share and diluted earnings per share
Same period of last
Item No. Reporting period
year
Net profit attributable to common shareholders of the
1 220,961,466.94
Company(NP) 216,228,135.55
103
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Non-recurring gains and losses of net profit
attributable to common shareholders of the Company 2 34,252,100.32
13,622,676.81
after deducting influence on income tax
Net profit attributable to common shareholders of the
Company after deducting non-recurring gains and 3=1-2
186,709,366.62 202,605,458.74
losses
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
0.35 0.34
Basic earnings per share(Ⅱ) 15=3÷12
0.30 0.32
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 19
104
2013 Semi-annual Report of Wuxi Little Swan Company Limited
exercising of company bond, subscription certificate, - -
or share option
20=[1+(16-18)×(1-17)
Diluted EPS(Ⅰ)
]÷(13+19) 0.35 0.34
21=[3+(16-18)×(1-17)
Diluted EPS(Ⅱ)
]÷(12+19) 0.30 0.32
44. Other comprehensive income
Unit: yuan
Item Reporting period Same period of last year
1. Profits/(losses) from available-for-sale financial assets -44,688.00 -56,448.00
Less: Effects on income tax generating from
-6,703.20 -8,467.20
available-for-sale financial assets
Subtotal -37,984.80 -47,980.80
2. Converted amount of foreign currency financial
-531,706.86 119,668.34
statements
Subtotal -531,706.86 119,668.34
Total -569,691.66 71,687.54
45. Notes of Cash Flow Statement
（1）Other cash received relevant to operating activities
Unit: yuan
Item Amount
Penalty income 4,054,332.64
Subsidy on income, etc. 4,334,144.58
Interest income from normal bank deposit 6,020,314.35
Actual rent received from operating lease 570,000.00
Other cash income from non-operation 3,969,194.66
Total 18,947,986.23
（2）Other cash paid relevant to operating activities
Unit: yuan
Item Amount
Sales expense paid in reporting period 530,039,605.03
Administration expense paid in reporting period 100,200,294.22
Handling charges for financial expense in reporting period 1,439,394.38
105
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Others 3,560,744.97
Total 635,240,038.60
46. Appendix of Cash Flow Statement
（1）Appendix of Cash Flow Statement
Unit: yuan
Item Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated
-- --
from operating activities
Net profit 235,920,464.23 234,142,192.35
Add: Provision for impairment of assets 13,726,351.33 2,759,322.21
Depreciation of fixed assets, of oil-gas assets, of productive
61,997,041.15 62,992,296.64
biological assets
Amortization of intangible assets 2,886,528.31 3,894,350.32
Amortization of long-term deferred expense 13,664,749.38 17,686,233.60
Losses on disposal of property, plant and equipment,
intangible assets and other -1,068,313.60 -7,549,807.55
long-term assets (gains: negative)
Losses from changes in fair value (gains: negative) -10,584,660.00 4,292,300.00
Investment loss (gains: negative) -38,581,681.44 -5,062,792.63
Decrease in deferred income tax assets (gains: negative) -7,428,614.62 18,164,285.98
Increase in deferred income tax liabilities (decrease:
1,587,699.00 -643,845.00
negative)
Decrease in inventory (gains: negative) 287,313,554.77 191,820,788.31
Decrease in accounts receivable from operating activities
577,251,722.96 1,659,302,504.82
(gains: negative)
Increase in payables from operating activities (decrease:
-205,562,545.66 -1,272,360,218.32
negative)
Net cash flows generated from operating activities 931,122,295.82 909,437,610.73
II. Investing and financing activities that do not involving
-- --
cash receipts and payment:
III. Net increase in cash and cash equivalents -- --
Closing balance of cash 1,441,520,820.65 2,987,581,854.36
Less: Opening balance of cash 1,293,126,217.00 2,279,653,302.57
Net increase in cash and cash equivalents 148,394,603.65 707,928,551.79
106
2013 Semi-annual Report of Wuxi Little Swan Company Limited
（2）Composition of cash and cash equivalents
Unit: yuan
Item Closing amount Opening amount
I. Cash 1,441,520,820.65 1,293,126,217.00
Including: cash in hand 8,000.20 169,620.72
Bank deposit can be used for payment at any time 1,441,512,820.44 1,292,956,596.28
II. Closing balance of cash and cash equivalents 1,441,520,820.65 1,293,126,217.00
XIII. Relationship and Related Party Transactions
1. Particulars about the parent company
Proportion Proportion
s of parent s of parent
Ultimate
Name of Legal company’s company’s
Relations Enterprise Registration Business Registered controller Organization
parent represen shareholdi voting
-hip nature place nature capital of the code
company tative ng to the right to the
company
company company
(%) (%)
Manufacture
and sales of
commercial
air
GD conditioners,
Midea Parent Joint stock Foshan, Fang refrigerators 3,384,350, He
40.08% 40.08% 19033709-2
Holding company company Guangdong Hongbo washing-mach 000.00 Xiangjian
Co., Ltd. ines and
compressors,
after-sale
service of
productions
2. Particulars about the subsidiaries
Sharehol Voting
Regist Legal
Relationsh Business Business Registered ding to right to Organizatio
Name of subsidiaries ration represen
ip type nature capital the the n code
place tative
compan compan
107
2013 Semi-annual Report of Wuxi Little Swan Company Limited
y (%) y (%)
Wholly-o Limited
Wuxi Little Swan General Chai Producti
wned liability Wuxi 28,000,000.00 70% 70% 76355342-0
Electric Appliances Co. , Ltd. Xinjian on
subsidiary company
Wuxi Little Swan Driving & Wholly-o Limited
Chai
Control Development wned liability Wuxi R&D 5,000,000.00 97.3% 100% 79538539-6
Xinjian
Technology Co. , Ltd. subsidiary company
Wholly-o Limited
Wuxi Filin Electronics Co. , Chai Producti
wned liability Wuxi 3,624,600.00 73% 73% 74815875-6
Ltd. Xinjian on
subsidiary company
Wholly-o Limited
Wuxi Little Swan Washing Chai Producti
wned liability Wuxi 49,679,500.00 99.91% 99.91% 60792331-1
Machine Co. , Ltd. Xinjian on
subsidiary company
Wholly-o Limited
Wuxi Meitian Refrigerator Chai
wned liability Wuxi Trading 4,000,000.00 75% 75% 71490141-7
Market Co., Ltd. Xinjian
subsidiary company
Jiangsu Little Swan Wholly-o Limited
Chai
Marketing and Sales Co. , wned liability Wuxi Trading 419,500,000.00 99.63% 99.63% 73330538-9
Xinjian
Ltd. subsidiary company
Wholly-o Limited Import
Wuxi Little Swan Import & Chai
wned liability Wuxi & 65,000,000.00 88.46% 88.46% 13600714-8
Export Co. , Ltd Xinjian
subsidiary company Export
Wholly-o Limited
P.T. Little Swan Prima Malay Zhu
wned liability Trading 1,000,000.00 51% 51%
Industries sia Dekun
subsidiary company
Wholly-o Limited
Little Swan International Singap Chai Investm
wned liability 5,000,000.00 100% 100%
(Singapore) Co., Ltd. ore Xinjian ent
subsidiary company
Wholly-o Limited Producti
Tianji Fang
Tianjin Little Swan Co., Ltd. wned liability on 200,000,000.00 100% 100% 57230359-2
n Hongbo
subsidiary company
producti
Little Swan (Jingzhou) Wholly-o Limited
Jingzh Chai on of
Electronic Appliances Co., wned liability 11,070,200.00 100% 100% 72614223-5
ou Xinjian washing
Ltd. subsidiary company
machine
Hefei producti
Wholly-o Limited
Hefei Midea Washing Fang on of
wned liability 135,520,000.00 69.47% 69.47% 14906761-7
Machine Co., Ltd. Hongbo washing
subsidiary company
machine
108
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Hefei producti
Hefei Midea Washing Wholly-o Limited
Fang on of 67423
Machine Manufacture Co., wned liability 20,000,000.00 62.523% 90%
Hongbo washing 819-7
Ltd. subsidiary company
machine
3. Information on co-operated or joint operated of the Company
Legal Proportion Proportion
Registrat Business Registered Relationsh Organizat
Item Business Type represen of holding of voting
ion place scope capital ip ion code
tative shares (%) rights (%)
1. Co-operated
2.Joint operated
Guangzhou Attend Limited liability Guangzh Ye Logistics 72993557
10,000,000.00 20% 20% Associates
Logistics Co. Ltd. company ou Weilong services -2
4. Other related parties of the Company
Name of the parties Relationship Organization code
GD Midea Holding Co., Ltd. Company controlling shareholder 19033709-2
Under control of controlling shareholder of
Hubei Midea Refrigerator Co. Ltd. 70696333-5
the Company
Under control of controlling shareholder of
Midea Electric Trading (Singapore) Co. Pte Ltd
the Company
Under control of controlling shareholder of
Hefei Midea Materials Supply Co., Ltd. 55183611-1
the Company
Under control of controlling shareholder of
Hefei Midea Refrigerator Co. Ltd. 14906759-6
the Company
Under control of controlling shareholder of
Hefei Hua Ling Share Holding Co. , Ltd. 61031550-1
the Company
Under control of controlling shareholder of
Hefei Midea Heating & Ventilating Equipment Co., Ltd. 78115339-1
the Company
Holding shares of controlling shareholder of
MIDEA EUROPE GMBH
the Company
Holding shares of controlling shareholder of
PT. Midea Planet Indonesia
the Company
Under control of controlling shareholder of
MIDEA SCOTT&ENGLISH ELECTRONILCS SDN.BHD
the Company
MIDEA ITALIA S.R.L. Under control of controlling shareholder of
109
2013 Semi-annual Report of Wuxi Little Swan Company Limited
the Company
Under control of controlling shareholder of
Midea Electric Espana, S.L.
the Company
Under control of family member close to the
Hefei Bainian Molding Technology Co., Ltd. 66293360-0
actual controller
Under control of family member close to the
Hefei Huitong Energy-saving Materials Co., Ltd. 56636693-3
actual controller
Zhongshan Midea Environmental Electric Engineering Under control of controlling shareholder of
68445743-0
Products Installation Service Co., Ltd. the Company's parent company
Under control of controlling shareholder of
Wuhu Bainian Technology Development Co., Ltd. 75096265-5
the Company's parent company
Under control of controlling shareholder of
Annto Logistics Co. Ltd. 71992943-5
the Company's parent company
Under control of controlling shareholder of
Ningbo Annto Logistics Co. Ltd. 57051088-9
the Company's parent company
Under control of controlling shareholder of
Jiangsu Midea Chunhua Electric Appliance Co., Ltd. 13479435-2
the Company's parent company
Under control of controlling shareholder of
Huai'an Welling Motor Manufacturing Co., Ltd. 75968160-6
the Company's parent company
Under control of controlling shareholder of
Guangdong Zhengli Precision Machinery Co., Ltd. 72111191-5
the Company's parent company
Under control of controlling shareholder of
Handan Midea Refrigeration Equipment Co., Ltd. 67468889-2
the Company's parent company
Foshan Shunde District Bainian Technology Development Under control of controlling shareholder of
70807868-X
Co., Ltd. the Company's parent company
Foshan Shunde District Bainian Tongchuang Plastic Under control of family member close to the
79462671-7
Industrial Co., Ltd. actual controller
5. Related party transactions
(1) Purchase of goods, services received among the related-party
Unit: yuan
Content Pricing Amount of this period Amount of last period
of related principle of Proportion in Proportion in
Name of company
transactio related Amount transactions of Amount transactions of
n parties the same kind the same kind
Logistics
Ningbo Annto Logistics Co. Ltd. Market price 48,196,839.91 1.93% 23,463,717.88 1.18%
service
110
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Material
Hubei Midea Refrigerator Co. Ltd. Market price 5,437,926.04 0.22% 194,845.68 0.01%
purchase
Huai'an Welling Motor Material
Market price 188,867,242.92 7.56% 132,395,847.71 6.64%
Manufacturing Co., Ltd. purchase
Foshan Shunde District Bainian Mold mat
Market price 222,222.22 0.01%
Technology Development Co., Ltd. erial
Hefei Midea Materials Supply Co., Material
Market price 157,245,794.25 6.3% 121,688,477.77 6.1%
Ltd. purchase
Hefei Bainian Molding Technology Material
Market price 48,789,326.26 1.95% 39,481,301.16 1.98%
Co., Ltd. purchase
Hefei Huitong Energy-saving Material
Market price 43,917,322.82 1.76%
Materials Co., Ltd. purchase
Hefei Huitong New Materials Co., Material
Market price 29,484,171.35 1.48%
Ltd. purchase
Logistics
Annto Logistics Co. Ltd. Market price 645,694.94 0.03%
service
Guangdong Zhengli Precision Purchase
Market price 87,606.84 0%
Machinery Co., Ltd. service
Total 493,187,753.98 19.75% 346,930,583.77 17.39%
Sales of goods, services provided among the related-party
Unit: yuan
Pricing Amount of this period Amount of last period
Content of related principle Proportion in Proportion in
Name of company
transaction of related Amount transactions of Amount transactions of
parties the same kind the same kind
Hefei Bainian Molding Market
Sales of materials 16,666,419.17 0.42% 26,257,407.35 0.85%
Technology Co., Ltd. price
Hefei Midea Refrigerator Co. Sales of electronic Market
28,879.20 0% 1,183,120.26 0.04%
Ltd. products price
Huai'an Welling Motor Market
Sales of materials 64,330.59 0% 0%
Manufacturing Co., Ltd. price
Hubei Midea Refrigerator Co. Sales of electronic Market
0% 3,835,200.67 0.12%
Ltd. products price
Midea Electric Trading Sales of washing Market
517,236,107.28 12.94% 585,119,029.41 18.87%
(Singapore) Co. Pte Ltd machines price
Hefei Huitong Energy-saving Market
Sales of materials 8,051,388.90 0.2%
Materials Co., Ltd. price
Hefei Huitong New Materials Sales of materials Market 14,882,970.07 0.48%
111
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Co., Ltd. price
Hefei Hua Ling Share Holding Market
Sales of materials 330,788.91 0.01% 4,366,304.17 0.14%
Co. , Ltd. price
Sales of washing Market
PT.Midea Planet Indonesia 6,816,739.22 0.17% 7,192,798.91 0.23%
machines price
MIDEA SCOTT&ENGLISH Sales of washing Market
7,439,098.97 0.19% 15,056,432.44 0.49%
ELECTRONIICS SDN.BHD machines price
Total 556,633,752.25 13.92% 657,893,263.28 21.21%
(2) Particulars about related guarantees
Unit: yuan
Amount Starting date of Ending date of Whether guarantee is
Guarantor Guaranteed party
guaranteed guarantee guarantee completely fulfilled
Hefei Midea Washing
Wuxi Lillte Swan Co. Ltd. 59,860,000.00 18, Jan, 2013 18, July, 2013 No
Machine Co, Ltd.
Hefei Midea Washing
Wuxi Lillte Swan Co. Ltd. 63,770,200.00 1, Feb, 2013 28, July, 2013 No
Machine Co, Ltd.
Hefei Midea Washing
Wuxi Lillte Swan Co. Ltd. 46,520,697.80 22, Feb, 2013 22, Aug, 2013 No
Machine Co, Ltd.
Hefei Midea Washing
Wuxi Lillte Swan Co. Ltd. 42,740,000.00 14, Mar, 2013 14, Sep, 2013 No
Machine Co, Ltd.
Hefei Midea Washing No
Wuxi Lillte Swan Co. Ltd. 78,312,800.00 20, Mar, 2013 20, Sep, 2013
Machine Co, Ltd.
Hefei Midea Washing No
Wuxi Lillte Swan Co. Ltd. 23,269,000.00 11, Apr, 2013 11, Oct, 2013
Machine Co, Ltd.
Hefei Midea Washing No
Wuxi Lillte Swan Co. Ltd. 23,269,000.00 12, Apr, 2013 12, Oct, 2013
Machine Co, Ltd.
Hefei Midea Washing No
Wuxi Lillte Swan Co. Ltd. 24,746,000.00 10, May, 2013 14, Nov, 2013
Machine Co, Ltd.
Hefei Midea Washing No
Wuxi Lillte Swan Co. Ltd. 22,847,000.00 8, June, 2013 8, Dec, 2013
Machine Co, Ltd.
Total 369,455,697.80 No
(3) Details of property transfer and debt restructuring between related parties
Unit: yuan
Type of related Content of Pricing Amount of
Related party Amount of last period
transaction related decision-maki current period
112
2013 Semi-annual Report of Wuxi Little Swan Company Limited
transaction ng procedure Proportion in Proportion
of related similar in similar
Amount Amount
transaction transactions transactions
(%) (%)
Handan Midea Refrigeration Sales of Market price
Asset transferring 840,577.60 5.01%
Equipment Co., Ltd. equipment
Wuhu Bainian Technology Sales of Market price
Asset transferring 2,293,061.07 13.65%
Development Co., Ltd. equipment
Foshan Shunde District Market price
Sales of
Bainian Technology Asset transferring 1,361,792.35 8.11%
equipment
Development Co., Ltd.
Foshan Shunde District Market price
Sales of
Bainian Tongchuang Plastic Asset transferring 3,249,127.47 19.35%
equipment
Industrial Co., Ltd.
Total 7,744,558.49 46.11%
6. Amount due to/from related parties
Receivable from the related parties
Unit: yuan
Closing amount Opening amount
Item Name of related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Midea Electric Trading (Singapore) Co.
Accounts receivable 257,699,410.57 12,884,970.53 226,480,645.57 11,324,830.37
Ltd
Accounts receivable PT. MIDEA PLANET INDONESIA 8,164,361.55 408,218.08 9,162,679.13 458,133.96
MIDEA SCOTT&ENGLISH
Accounts receivable 7,450,899.95 372,545.00 12,244,315.71 612,215.79
ELECTRONILCS SDN.BHD
Accounts receivable Hefei Hua Ling Share Holding Co. , Ltd. 106,215.43 5,310.77 461,954.29 25,921.50
Accounts receivable Hubei Midea Refrigerator Co. Ltd. 55,579.28 2,778.96
GD Midea Heating & Ventilating
Accounts receivable 383,283.04 19,164.15
Equipment Co., Ltd.
Accounts receivable MIDEA ITALIA S.R.L 706,673.25 70,557.33
Accounts receivable Hefei Midea Refrigerator Co. Ltd. 43,547.38 2,777.66
Total 273,420,887.50 13,671,044.38 249,538,677.65 12,516,379.72
Advanced money Hefei Midea Materials Supply Co., Ltd. 582.92
Huai'an Welling Motor Manufacturing
Advanced money 3,000.00
Co., Ltd.
113
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Total 3,582.92
Payable to the related parties
Unit: yuan
Item Name of related parties Closing amount Opening amount
Accounts receivable Huai'an Welling Motor Manufacturing Co., Ltd. 28,842,211.40 40,022,965.01
Accounts receivable Hefei Midea Materials Supply Co., Ltd. 22,451,239.65 7,956,562.94
Accounts receivable Hefei Bainian Molding Technology Co., Ltd. 1,621,616.66 15,932,705.63
Accounts receivable Hefei Huitong Energy-saving Materials Co., Ltd. 3,717,374.49
Accounts receivable Hefei Huitong New Materials Co., Ltd. 1,420,794.54
Zhongshan Midea Environmental Electric
Accounts receivable 137,032.00 137,032.00
Engineering Products Installation Service Co., Ltd.
Accounts receivable Guangdong Zhengli Precision Machinery Co., Ltd. 85,200.00
Accounts receivable Annto Logistics Co. Ltd. 95,833.16 784,905.06
Accounts receivable Ningbo Annto Logistics Co. Ltd. 6,181,555.67 331,939.49
Accounts receivable Hubei Midea Refrigerator Co. Ltd. 1,425,666.88
Accounts receivable Hefei Hua Ling Share Holding Co. , Ltd. 1,046,811.72
Total 65,519,341.63 66,672,104.67
Other payable GD Midea Holding Co., Ltd. 390,636.00
Total 390,636.00
Advance receipt Midea Electric Trading (Singapore) Co. Ltd 12,651,697.07
Total 12,651,697.07
IX. Contingencies
As of 30 June, 2013, no significant Contingencies.
X. Commitments
1. Significant commitments
As of 30 June, 2013, no significant commitments should be disclosed.
XI. Events after the balance sheet date
Naught
114
2013 Semi-annual Report of Wuxi Little Swan Company Limited
XII. Other significant events
1. Assets and liabilities measured by fair value
Unit: yuan
Gains and losses The cumulative fair Provision for
Opening
Item of fair value in value recognized in impairment in this Closing amount
amount
this period equity movements period
1.Financial assets
2.Derivative financial assets 1,224,590.00 10,584,660.00 11,809,250.00
3. Financial assets available for sale 286,944.00 -44,688.00 120,662.60 242,256.00
Subtotal of financial assets 1,511,534.00 10,539,972.00 120,662.60 12,051,506.00
Total 1,511,534.00 10,539,972.00 120,662.60 12,051,506.00
Financial liabilities 0.00 0.00 0.00 0.00
2. Financial liabilities and foreign financial liabilities
Unit: yuan
Gains and losses The cumulative fair Provision for
Opening
Item of fair value in value recognized in impairment in this Closing amount
amount
this period equity movements period
1,Financial assets
2.Derivative financial assets 1,224,590.00 10,584,660.00 11,809,250.00
Subtotal of financial assets 1,224,590.00 10,584,660.00 11,809,250.00
Financial liabilities 0.00 0.00 0.00
XIII. Notes to the financial statements of Parent Company
1. Accounts receivable
(1) Accounts receivable
Unit: yuan
Closing balance Opening balance
Provision for bad
Book value Book value Provision for bad debts
Items debts
Propor Proporti Proport
Amount Proportion Amount Amount Amount
tion on ion
Account receivable with consolidated provision for bad debt
Consolidation 1: aging 364,236,166.34 59.12% 19,280,091.11 5.29% 333,592,268.24 99.74% 17,836,822.90 5.35%
115
2013 Semi-annual Report of Wuxi Little Swan Company Limited
consolidation
Consolidation 2: account
received in the range of 251,035,965.53 40.75%
consolidated statements
Subtotal of consolidation 615,272,131.87 99.87% 19,280,091.11 3.13% 333,592,268.24 99.74% 17,836,822.90 5.35%
Account receivable with
small individual amount 801,084.02 0.13% 801,084.02 100% 861,084.02 0.26% 861,084.02 100%
and provision for bad debt
Total 616,073,215.89 -- 20,081,175.13 -- 334,453,352.26 -- 18,697,906.92 --
Note to type of account receivable:
Naught.
Account receivable with large individual amount and provision for bad debt at the end of period
□ Applicable √ Inapplicable
Account receivable in the consolidation with provision for bad debt by aging analysis method:
√ Applicable □ Inapplicable
Unit: 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: -- -- -- -- -- --
Subtotal 357,234,955.61 98.86% 17,862,000.80 325,737,081.06 97.65% 16,286,854.06
1 to 2 years 210,680.56 0.03% 21,068.06 210,685.97 0.06% 21,068.60
2 to 3 years 6,693,239.63 1.09% 1,338,647.92 7,644,501.21 2.29% 1,528,900.24
Over 3 years 97,290.54 0.02% 58,374.32
3 to 4 years 97,290.54 0.02% 58,374.32
Total 364,236,166.34 -- 19,280,091.11 333,592,268.24 -- 17,836,822.90
Account receivable in the consolidation with provision for bad debt by balance percentage method:
□ Applicable √ Inapplicable
Account receivable in the consolidation with provision for bad debt by other method:
□ Applicable √ Inapplicable
Account receivable with small individual amount and provision for bad debt at the end of period
√Applicable □ Inapplicable
Unit: yuan
Content of account receivable Book balance Amount of bad debt Proportion (%) Reason
Wuxi Shengchao Petrochemical 801,084.02 801,084.02 100% Hard to take back
116
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Metallurgical Equipment Parts Factory
Total 801,084.02 801,084.02 -- --
(2) Particulars about account receivable returned or withdrawn in the reporting period
Unit: yuan
Foundation to Accumulated amount of
Reason of return or Amount returned
Content of account receivable confirm provision provision for bad debt
withdrawal or withdrawn
for bad debt before return or withdrawal
Offset and reduce of
Wuxi Shengchao Petrochemical
the Consolidation
Metallurgical Equipment Parts Hard to take back 861,084.02 60,000.00
of advances received
Factory
accounts
Total -- -- 861,084.02 --
(3) Top 5 companies with largest amount of account receivable
Unit:
yuan
Proportion in total amount
Company name Relationship Amount Years limit
of account receivable (%)
Suning Yunshang Group Co., LTD. Suning
seller 144,358,294.43 Within 1 year 23.43%
Purchasing Center
ELECTROLUX DO BRASIL seller 18,646,620.51 Within 1 year 3.03%
Jijin Province Midea Refrigeration Sales Co., Ltd. seller 16,791,811.34 Within 1 year 2.73%
Harbin Heiji Midea Refrigeration Sales Co., Ltd. seller 12,982,470.06 Within 1 year 2.11%
GOME Electrical Appliances Co., Ltd seller 7,288,421.51 Within 1 year 1.18%
Total -- 200,067,617.85 -- 32.48%
(4) Account receivable from related parties
Unit: yuan
Proportion in total amount
Company name Relationship Amount
of account receivable (%)
MIDEA SCOTT&ENGLISH ELECTRONILCS Holding shares of controlling
114,219.51 0.02%
SDN.BHD shareholder of the Company
Holding shares of controlling
PT.Midea Planet Indonesia 3,848,290.84 0.62%
shareholder of the Company
Hefei Midea Washing Machine Co, Ltd Subsidiary 251,035,965.53 40.75%
Total -- 254,998,475.88 41.39%
117
2013 Semi-annual Report of Wuxi Little Swan Company Limited
2. Other receivables
(1) Other receivables
Unit: yuan
Closing balance Opening balance
Provision for bad Provision for bad
Book value Book value
Items debts debts
Proporti Proport
Amount Proportion Amount Amount Proportion Amount
on ion
Other receivables with consolidated provision for bad debt
Consolidation 1: aging
73,803,624.85 44.31% 4,003,657.15 5.42% 17,806,355.81 16.26% 3,787,364.45 21.27%
consolidation
Consolidation 2: other
receivables in the range of 92,302,217.12 55.41% 92,285,617.12 99.98% 91,716,023.13 83.74% 91,637,472.43 99.91%
consolidated statements
Subtotal of consolidation 166,105,841.97 99.72% 96,289,274.27 57.97% 109,522,378.94 100% 95,424,836.88 87.13%
Other receivables with
small individual amount 471,865.05 0.28% 471,865.05 100%
and provision for bad debt
Total 166,577,707.02 -- 96,761,139.32 -- 109,522,378.94 -- 95,424,836.88 --
Note to type of other receivables:
Naught.
Other receivables with large individual amount and provision for bad debt at the end of period:
□Applicable √ Inapplicable
Other receivables in the consolidation with provision for bad debt by aging analysis method:
√ Applicable □ Inapplicable
Unit: 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: -- -- -- -- -- --
Subtotal 71,347,539.99 96.67% 3,567,695.18 11,323,747.98 63.59% 566,187.40
1 to 2 years 1,164,446.41 1.58% 116,444.65 532,175.30 2.99% 53,217.53
2 to 3 years 1,138,664.33 1.54% 227,732.86 1,034,500.00 5.81% 206,900.00
Over 3 years 152,974.12 0.21% 91,784.47 4,887,182.53 27.45% 2,932,309.52
118
2013 Semi-annual Report of Wuxi Little Swan Company Limited
3 to 4 years 152,974.12 0.21% 91,784.47 4,887,182.53 27.45% 2,932,309.52
Over 5 years 28,750.00 0.16% 28,750.00
Total 73,803,624.85 -- 4,003,657.15 17,806,355.81 -- 3,787,364.45
Other receivables in the consolidation with provision for bad debt by balance percentage method:
□ Applicable √ Inapplicable
Other receivables in the consolidation with provision for bad debt by other methods:
□ Applicable √Inapplicable
Other receivables with small individual amount and provision for bad debt at the end of period:
□ Applicable √Inapplicable
(2) Top 5 companies with largest amount of other receivables
Unit: yuan
Proportion in total
Company name Relationship Amount Years limit amount of account
receivable (%)
Wuxi People's Government New District Management Government
61,614,548.70 Within 1 year 37.09%
Committee Finance Bureau sector
Wang Ruiqun Staff 1,839,000.00 Within 1 year 1.11%
Industrial and Commercial Bank of China Beijing Branch
Partner 1,200,000.00 Within 1 year 0.72%
Special Account for Asset Custody
Wuxi Huarun Gas Co., Ltd. Partner 688,983.70 Within 1 year 0.41%
Huang Qingqing Staff 459,870.00 Within 1 year 0.28%
Total -- 65,802,402.40 -- 39.61%
(3) Other account receivables from related parties
Unit: yuan
Proportion in total amount of
Company name Relationship Amount
other account receivable (%)
Wuxi Midea Refrigerator Sales Co., Ltd. Subsidiary 10,968,856.34 6.6%
Wuxi Little Swan Washing Machinery Co., Ltd. Subsidiary 3,396,698.02 2.04%
Wuxi Little Swan General Electric Co., Ltd. Subsidiary 16,600.00 0.01%
Wuxi Little Swan Import and Export Co., Ltd. Subsidiary 1,107,029.55 0.67%
Jiangsu Little Swan Marketing Co., Ltd. Subsidiary 76,813,033.21 46.24%
Total -- 92,302,217.12 55.56%
119
2013 Semi-annual Report of Wuxi Little Swan Company Limited
3. Long-term equity investments Unit: yuan
Explanatio
ns on
difference Accr
Proporti
Proporti s between ued
on of
Amount of Initial Increase/decre ons of shareholdi Impairment impai Cash
Invested entities Method Opening amount Closing amount voting
investment ase sharehol ng provision rment dividends
rights
ding (%) proportion provi
(%)
and voting sion
right
proportion
Equity
Guangzhou Antaida Logistical Co., Ltd. 2,000,000.00 3,285,850.80 53,125.03 3,338,975.83 20% 20%
method
Wuxi Little Swan Import & Export Co. ,
Cost method 57,500,000.00 57,500,000.00 57,500,000.00 88.46% 88.46%
Ltd
Wuxi Little Swan Washing Machine Co. ,
Cost method 37,259,587.50 37,259,587.50 37,259,587.50 75% 75%
Ltd.
Wuxi Meitian Refrigerator Marketing and
Cost method 24,840,000.00 24,840,000.00 24,840,000.00 75% 75%
Sale Co., Ltd.
Jiangsu Little Swan Marketing and Sales
Cost method 417,550,000.00 417,550,000.00 417,550,000.00 99.54% 99.54%
Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. Cost method 19,620,041.50 25,660,308.10 25,660,308.10 73% 73%
Wuxi Little Swan General Electric
Cost method 19,600,000.00 19,600,000.00 19,600,000.00 70% 70%
Appliances Co. , Ltd.
San Jin(Jing Zhou) Electrical Appliances
Cost method 11,869,431.12 11,869,431.12 11,869,431.12 100% 100%
Co. , Ltd.
Wuxi Little Swan Driving & Control Cost method 4,500,000.00 4,500,000.00 4,500,000.00 90% 90%
120
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Development Technology Co. , Ltd.
Little Swan International(Singapore) Co.,
Cost method 34,052,500.00 34,052,500.00 34,052,500.00 100% 100%
Ltd.
Hefei Midea Washing Machine Co, Ltd Cost method 830,962,252.35 830,962,252.35 830,962,252.35 69.47% 69.47%
Tianjin Little Swan Washing Machine
Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100% 100%
Co. , Ltd.
(Malaysia) Midaqi Little Swan Industry
Cost method 4,224,744.00 51% 51% 4,224,744.00
Co., Ltd.
Hengtai Insurance Brokers Co., Ltd. Cost method 1,000,000.00 1,000,000.00 -1,000,000.00
Suzhou People's Shopping Mall(100,000
Cost method 150,000.00 150,000.00 150,000.00 50,000.00
shares)
Bank of Jiangsu Inc. (2,202,564 shares) Cost method 1,100,000.00 1,210,000.00 1,210,000.00
Total -- 1,666,228,556.47 1,669,439,929.87 -946,874.97 1,668,493,054.90 -- -- -- 4,224,744.00 50,000.00
121
2013 Semi-annual Report of Wuxi Little Swan Company Limited
4. Operating revenues and costs
(1) Operating revenues and costs
Unit: yuan
Item Amount of current period Amount of last period
Revenue from main business 2,727,383,248.53 1,729,468,582.51
Revenue from other business 183,019,115.33 165,705,963.74
Total 2,910,402,363.86 1,895,174,546.25
Operating costs 2,197,383,259.40 1,465,593,618.16
(2) Main business (by industry)
Unit: yuan
Amount of current period Amount of last period
Industry
Operating income Operating costs Operating income Operating costs
Appliances Manufacturing 2,727,383,248.53 2,027,184,268.86 1,729,468,582.51 1,321,093,348.83
Total 2,727,383,248.53 2,027,184,268.86 1,729,468,582.51 1,321,093,348.83
(3) Main business (by product)
Unit: yuan
Amount of current period Amount of last period
Product
Operating income Operating costs Operating income Operating costs
Washing machine 2,727,383,248.53 2,027,184,268.86 1,729,468,582.51 1,321,093,348.83
Total 2,727,383,248.53 2,027,184,268.86 1,729,468,582.51 1,321,093,348.83
(4) Main business (by region)
Unit: yuan
Amount of current period Amount of last period
Region
Operating income Operating costs Operating income Operating costs
Domestic 2,441,391,796.73 1,761,028,103.60 1,422,198,309.92 994,550,309.79
Other countries 285,991,451.80 266,156,165.26 307,270,272.59 326,543,039.04
Total 2,727,383,248.53 2,027,184,268.86 1,729,468,582.51 1,321,093,348.83
(5) Operating revenues of the top 5 clients of the company
Unit: yuan
122
2013 Semi-annual Report of Wuxi Little Swan Company Limited
Proportion in total
Name of client Total operating revenues
operating revenue(%)
Suning Yunshang Group Co., LTD. Suning Purchasing Center 240,301,560.82 8.26%
Midea Electric Trading(Singapore) Co. Ltd 135,672,092.59 4.66%
TOSHIBA INTERNATIONAL PROCUREMENT HONG
78,350,015.91 2.69%
KONG,LTD.
Guizhou Midea Refrigeration Sales Co., Ltd. 51,293,541.25 1.76%
Ganshu Midea Refrigeration Sales Co., Ltd. 36,697,719.45 1.26%
Total 542,314,930.02 18.63%
5. Investment income
(1) Details of investment income
Unit: yuan
Item Amount of current period Amount of last period
Income from long-term equity investment calculated by cost
50,000.00 163,405.12
method
Income from long-term equity investment calculated by
53,125.03 50,887.51
equity method
Investment income gained during the period of holding
3,071,840.00 3,013,700.00
marketable financial assets
Others 19,567,723.65
Total 22,742,688.68 3,227,992.63
(2) Income from long-term equity investment calculated by cost method
Unit: yuan
Amount of current Amount of last Reason of increase/decrease in current
Invested company
period period period
Suzhou People’s Department Store 50,000.00 40,000.00
Bank of Jiangsu, Inc. 123,405.12
Total 50,000.00 163,405.12 --
(3) Income from long-term equity investment calculated by equity method
Unit: yuan
Invested company Amount of current Amount of last Reason of increase/decrease in current
123
2013 Semi-annual Report of Wuxi Little Swan Company Limited
period period period
Guangzhou Antaida Logistical Co., Ltd. 53,125.03 50,887.51
Total 53,125.03 50,887.51 --
6. Appendix of Cash Flow Statement
Unit: yuan
Item Amount of this period Amount of last period
1. Reconciliation of net profit to net cash flows generated from
-- --
operating activities
Net profit 175,420,207.11 173,396,155.41
Add: Provision for impairment of assets 2,850,533.92 -13,852.04
Depreciation of fixed assets, of oil-gas assets, of productive
29,124,372.80 24,461,367.47
biological assets
Amortization of intangible assets 1,398,648.06 1,402,556.16
Amortization of long-term deferred expense 11,994,070.95 13,639,702.36
Losses on disposal of property, plant and equipment, intangible
assets and other 9,094.71 -5,449,947.67
long-term assets(gains: negative)
Loss on retirement of fixed assets(gains: negative) -6,513,520.00 2,668,300.00
Investment loss(gains: negative) -22,742,688.68 -3,227,992.63
Decrease in deferred income tax assets(gains: negative) -8,247,791.44 14,421,731.43
Increase in deferred income tax liabilities(decrease: negative) 977,028.00 -400,245.00
Decrease in inventory(gains: negative) 210,786,341.44 96,058,899.86
Decrease in accounts receivable from operating activities(gains:
257,042,104.21 1,096,344,881.03
negative)
Increase in payables from operating activities(decrease: negative) 48,743,611.37 -662,253,362.78
Net cash flows generated from operating activities 700,842,012.45 751,048,193.61
II. Investing and financing activities that do not involving
-- --
cash receipts and payment:
III. Net increase in cash and cash equivalents -- --
Closing balance of cash 804,050,801.77 2,049,502,496.94
Less: Opening balance of cash 848,257,647.96 1,470,854,364.19
Net increase in cash and cash equivalents -44,206,846.19 578,648,132.75
124
2013 Semi-annual Report of Wuxi Little Swan Company Limited
XIV. Supplementary information
1. List of non-recurring gains and losses in the period
Unit: yuan
Item Amount Notes
Loss and gains on disposal of non-current assets (Including
1,068,313.60
write-off part of the provision for asset impairment)
Governmental subsidy included in the current profits and losses(is
closely related with the business event, except for the
7,073,551.50
governmental subsidy that according to the national unity
standard quota or the quantitative regal assets)
Gains and losses of committing others of investment or managing Mainly is entrust financial
33,824,376.42
assets benefits
The reversal of impairment of receivables of the individual
72,146.16
impairment test
Income and expenses of the other operation except for the
4,615,649.96
mentioned above
The other items of gains and losses conforming the definition of
7,002,321.69
non-recurring gains and losses
Less：the effect of income tax 5,399,615.63
the effect of minority interest (after tax) 34,252,100.32 --
The company, who defines the gains and losses as the non-recurring items according to the definition
outlined in the "Public Company's Information Disclosure Explanatory Notice No. 1 – Extraordinary Items
Gains and Losses" and as the recurrent gains and losses which are listed in the "Public Company's
Information Disclosure Explanatory Notice No. 1 – Extraordinary Items Gains and Losses" as
non-recurring gains and losses, should explain the reason.
□ Applicable √ Inapplicable
2. Return on equity and earnings per share
Unit: yuan
Weighted average return on Earnings per share
Profits in the reporting period
equity (%) Basic EPS Diluted EPS
Net profits belonging to shareholders of common shares 5.82% 0.35 0.35
Net profits belonging to shareholders of common shares
4.92% 0.3 0.3
after deducting non-recurring profit and loss
125
2013 Semi-annual Report of Wuxi Little Swan Company Limited
3. Main items in the accounting statements and movements thereof
31 Dec.
Item 30 Jun. 2012 Increase/decrease Increase/decrease Reasons for movement
2011
Notes receivable Increase of the foreign
exchange long-term
1,180.93 1,058.47 864%
122.46 contracting business
contracted with banks
Other receivables Collections from due
155,228.79 226,281.44 -71,052.66 -31%
notes decreased
Inventory Subsidies for energy
9,008.12 1,698.45 7,309.67 430% payments receivable
increased
Other current assets Operating risk reduced
65,610.67 95,274.79 -29,664.12 -31% and control the scale of
Inventories
Notes receivable Purchasing bank financi
181,054.86 120,117.18 60,937.68 51%
al products increased
Production molds
Long-term deferred
1,576.66 2,772.99 -1,196.33 -43% amortized and
expense
devaluated
Tax payble Tax payable increased
due to impact of
5,652.24 -382.10 6,034.34 1579%
production and
marketing circle
Dividends payble Dividends of 2012 not
512.95 371.02 141.93 38% paid to certain
shareholders
Deferred income tax Fair value of transaction
179.27 21.17 158.10 747%
liabilities financial assets increased
Sales tax and addi Increased along with the
2,595.76 1,573.18 1,022.59 65%
tion current turnover tax
Sales expenses Due to the adjustment
and increase of the
53,996.61 28,384.46 25,612.15 90% modes of sales and
changing of the sales
structure.
Management Mainly due to the
expenses 17,309.22 12,362.49 4,946.73 40% increase of the R&D
investment.
Financial expenses Exchange rate changed,
2,014.31 -3,054.00 5,068.31 166% exchange losses
increased and the
126
2013 Semi-annual Report of Wuxi Little Swan Company Limited
gains of bank
financial product in
this period had been
reclassified into
investment income.
Loss from Losses of the devaluation
impairment of 1,372.64 1,096.70 397% of raw materials
275.93
assets increased
Income from Income from change in
change in fair value fair value of foreign
1,058.47 -429.23 1,487.70 347%
exchange long-term
contract increased.
Income from Reclassified the gains of
investments bank financial product
3,858.17 3,351.89 662% in this period from
506.28
financial expenses into
this item.
Non-operating Losses of disposal of
743.25 374.50 102%
revenues 368.74 fixed assets increased.
Exchange rate and the
Other
foreign currency
comprehensive -56.97 -64.14 -895%
7.17 translation differences
incomes
changed.
Net cash flows from Due to the
investment activities investment of bank
-60,014.40 -7,588.90 -52,425.51 -691% financial products,
the cash paid for the
investment increased.
Net cash flows from Cash paid for dividend
-18,258.37 -12,562.01 -5,696.36 -45%
financing activities distribution increased
127
2013 Semi-annual Report of Wuxi Little Swan Company Limited
IX. Documents Available for Reference
1. Text of the Interim Report 2013 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
Wuxi Little Swan Company Limited
6 August 2013
128
