2015 Semi-annual Report of Wuxi Little Swan Company Limited
Wuxi Little Swan Company Limited
2015 Semi-annual Report
August 2015
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section 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, Mr. Sun Yunan, 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.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Contents
Section I. Important Reminders, Contents & Explanation ............................................................ 2
Section II. Company Profile .............................................................................................................. 5
Section III. Highlights of Accounting Data & Financial Indicators .............................................. 7
Section IV. Report of the Board of Directors ................................................................................... 9
Section V. Significant Events ........................................................................................................... 21
Section VI. Change in Shares & Shareholders .............................................................................. 33
Section VII. Preference Shares........................................................................................................ 37
Section VIII. Directors, Supervisors & Senior Management Staff .............................................. 37
Section IX. Financial Report ........................................................................................................... 38
Section X. Documents Available for Reference ........................................................................... 137
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2015 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.
TITONI Refers to TITONI INVESTMENTS DEVELOPMENT LTD.
Midea Group Finance Refers to Midea Group Finance Co., Ltd.
Midea Holding Refers to GD Midea Holding Co., Ltd.
Hefei Midea Washing Machine Refers to Hefei Midea Washing Machine Co., Ltd.
Wuxi Little Swan General Appliance Refers to Wuxi Little Swan General Appliance Co., Ltd.
Wuxi FILIN Electronics Refers to Wuxi FILIN Electronics Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
Reporting period Refers to 1 Jan. 2015-30 Jun. 2015
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section II. Company Profile
I. Basic information of the Company
Stock abbreviation XTEA, XTEB Stock code 000418, 200418
Stock abbreviation after change (if any) N/A
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
Abbr. of the English name of the Company (if any) None
Legal representative of the Company Mr. Fang Hongbo
II. For Contact
Company Secretary Securities Affairs Representative
Name Ms. Zhou Sixiu Mr. Zhao Yulin
No. 18, Changjiang Road S., National Hi-tech No. 18, Changjiang Road S., National Hi-tech
Contact address
Development Zone, Wuxi, Jiangsu Province, P.R. China Development Zone, Wuxi, Jiangsu Province, P.R. China
Tel. 0510-81082320 0510-81082377
Fax 0510-83720879 0510-83720879
E-mail IR_littleswan@littleswan.com.cn IR_littleswan@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 2014 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
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
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 2014Annual Report.
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 2014
Annual Report.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section III. Highlights of Accounting Data & Financial Indicators
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) 6,101,903,864.60 4,974,057,020.56 22.67%
Net profit attributable to shareholders of the
430,694,268.55 316,358,532.13 36.14%
Company (RMB Yuan)
Net profit attributable to shareholders of the
Company after extraordinary gains and losses 369,115,221.99 272,497,997.10 35.46%
(RMB Yuan)
Net cash flows from operating activities (RMB
1,365,269,483.46 825,104,435.83 65.47%
Yuan)
Basic EPS (RMB Yuan/share) 0.68 0.50 36.00%
Diluted EPS (RMB Yuan/share) 0.68 0.50 36.00%
Weighted average ROE (%) 9.28% 7.78% 1.50%
As at the end of the reporting period As at the end of last year +/- (%)
Total assets (RMB Yuan) 11,230,158,118.77 11,376,793,928.71 -1.29%
Net assets attributable to shareholders of the
4,580,881,426.28 4,427,982,112.33 3.45%
Company (RMB Yuan)
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √ Inapplicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Inapplicable
No difference.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
III. Items and amounts of extraordinary gains and losses
√Applicable □ Inapplicable
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the offset part of asset
-1,543,093.94
impairment provisions)
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to 11,077,408.20
the country’s unified standards
Gain/loss on entrusting others with investments or asset management 71,346,929.06
Reversal of impairment provisions for the accounts receivable on which
341,340.00
impairment tests were carried out separately
Non-operating income and expenses other than the above 2,966,563.60
Less: Income tax effects 12,627,967.94
Minority interests effects (after tax) 9,982,132.42
Total 61,579,046.56 --
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
No such cases.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section IV. Report of the Board of Directors
I. Overview
(I) Business review
1. Macro-environment
In the reporting period, macro economic growth slowed down with some real estate recovery and low prices of
raw materials. As the Internet is rapidly hitting and transforming traditional industries, cross-field operation,
cooperation and innovation have become an inevitable choice in this new time. The information technology and
the manufacturing industry are closely integrated, triggering profound industrial reform. More opportunities and
challenges are to come in the innovation and transformation of the manufacturing industry.
2. Development trends in the industry
In the reporting period, obvious upgrading in consumption speeded up restructuring in the washing machine
industry, with the proportion of middle and high-end products getting bigger and inverter, large-capacity, roller
and intelligent products growing fast. The industry was stable; however, competition was increasingly fierce
among brands and the industry became more centralized as a result. According to ChinaIOL statistics, the first
half of 2015 saw a total domestic output of 26,485,500 washing machines, down 1.79% year on year, of which
18,207,500 were sold domestically, up 1.91% year on year, while 8,277,900 were exported, down 9.07% year on
year.
(II) Work done in the first half of 2015
In face of rapid changes in the internal and external environment in the reporting period, we closely adhered to our
main strategy of ―advanced products, efficiency-driven development and global operations‖, focused on our main
business, customers and products and kept pushing forward and deepening operational transformation. For the
reporting period, the Company achieved operating revenues of RMB 6.102 billion, up 22.67% year on year, a net
profit attributable to the shareholders of the Company of RMB 431 million, up 36.14% from a year earlier, and a
gross profit rate of 26.95%, a year-on-year increase of 0.44 percentage points.
In the reporting period, we persisted in improving our strength in ―marketing, products, manufacturing, quality
and supply‖ as our core mission by working on the following main projects:
1. Product innovation and upgrading
We proactively promoted product innovation and upgrading. With the needs of markets and customers as the
direction, we developed such products as to solve customers’ problems and keep up with this time of Internet
through more efforts towards user experience and studies. We launched the Little Swan Intelligent Roller Water
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Cube series, the Midea Fast and Clean series, the C2B
tailor-made ―Hornet‖ product, etc., all good in sales and
reputation. In the reporting period, we won quite a few
important awards in the industry, with our strength in products
improved significantly when compared with the same period of
last year.
2. Reform of the marketing model
We proactively promoted reform of our marketing model amid
huge changes in marketing channels in this new era.
Domestically, we reconstructed our market appraisal mechanism
and enhanced distribution and sales to accelerate turnover;
strengthened brand recognition, pushed forward more noticeable
retail settings and built up the ―triple screen interactive‖ training
platform; improved the proportion of middle and high-end products in sales by increasing the portion of high
gross profit rate products such as roller and inverter products; vigorously developed e-commerce through closer
cooperation with all famous online shopping platforms. Overseas, we continued to optimize the sales layout by
solidifying the regions contributing strong sales and exploring new markets and customers and at the same time
enhance the promotion of our own brands. In the reporting period, our domestic and overseas sales both grew
steadily, with the online retail sales surging over 150% year on year.
3. T+3 order mechanism
We continued to improve our lean manufacturing and management capability by vigorously pushing forward the
T+3 order mechanism in production, building a highly responsive supply chain system and materializing flexible
production and supporting step by step to satisfy orders. Meanwhile, we improved our off-line logistics model and
pushed forward the off-line direct distribution of our finished products to realize fast delivery and turnover, which
greatly reduced the warehousing area when compared with the same period of last year. As such, the T+3 order
mechanism produced an excellent result in the reporting period.
4. Quality campaign
We vigorously promoted the quality campaign, tried to implant quality awareness in all employees, built up a
quality standard system and beefed up old product improvement and new product input to thoroughly increase our
product quality and fine product coverage. Meanwhile, we continued to improve the quality control system, firmly
upheld the rigid principle of quality and adopted the ―One-vote Veto System‖ for quality. In the reporting period,
our maintenance rate of sold products further decreased from the same period of last year while our product
quality and reputation further improved.
5. Automation campaign
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
We input more for the automation campaign, materializing automation regarding clutch and metal plate
production, injection molding, testing, etc. and pushing forward the example automotive production line project
step by step. In the reporting period, our product quality and per-capita output both improved significantly with
higher manufacturing efficiency than the same period of last year.
(III) Work plan for the second half of 2015
In the second half of 2015, in order to keep up with the development of the mobile Internet era, we will
proactively reform our organization with the Internet thinking, building four platforms (products, markets,
manufacturing and services) centering on ―customers and products‖. Through the platformization thinking and
operation, we will reshape our organization, technological processes, talent team, operating results and corporate
culture to materialize reform of our operational model.
In terms of the product platform, we will center on ―customers, innovation and intelligence‖ and introduce
intelligent technology, maker and geek micro-teams to further stimulate vitality for innovation through
organizational pattern and incentive mechanism reform; and in the meantime increase input for intelligent
technology development to plan for our development in the smart home market. Concerning the market platform,
we will reconstruct the domestic and overseas market operation platforms to achieve synergy of our resources,
strengthening e-commerce and brand recognition in domestic marketing and enhancing the business development
of our own brands in overseas marketing. Regarding the manufacturing platform, we will adhere to the Industry
4.0 concept, constantly improve our lean manufacturing capability, transform towards automotive interconnected
production gradually and at the same time push forward the T+3 order mechanism, which will result in constant
improvement of standardization, the rigidness of plans, the flexibility of manufacturing, the efficiency of
manufacturing, supplier management, etc. As for the service platform, we will reconstruct our organizational
process, our appraisal mechanism and our management mechanism and create a culture led by fair, just and open
operating results to truly materialize the organizational operation model centering on ―customers, products and
manufacturing‖.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
II. Main business analysis
YoY change of major financial data:
Unit: RMB Yuan
Same period of
Reporting period YoY +/-% Main reasons for change
last year
Operating revenues 6,101,903,864.60 4,974,057,020.56 22.67%
Operating costs 4,457,541,472.66 3,655,315,076.59 21.95%
Selling expenses 849,993,249.30 708,872,153.90 19.91%
Administrative expenses 272,955,998.10 210,082,884.69 29.93%
Financial expenses -11,205,277.58 -9,899,828.86 -13.19%
Income tax expenses 78,916,402.71 66,436,602.59 18.78%
Cash received from selling goods and
Net cash flows from
1,365,269,483.46 825,104,435.83 65.47% provision of services increased as the
operating activities
business scale expanded.
Cash paid for investment increased as
Net cash flows from
-1,507,353,631.94 -134,495,207.51 -1,020.75% the investment into bank wealth
investing activities
management products increased.
Cash paid as dividends increased
Net cash flows from
-270,220,502.96 -134,190,940.03 -101.37% while short-term borrowings
financing activities
decreased.
Net increase in cash and Cash outflows from investing and
-412,304,651.44 556,418,288.29 -174.10%
cash equivalents financing activities increased.
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 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
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Increase/decreas Increase/decreas Increase/decreas
e of operating e of operating e of gross profit
Gross profit rate
Operating revenues Operating costs revenues over costs over the rate over the
(%)
the same period same period of same period of
of last year (%) last year (%) last year (%)
Classified by industry:
Household
5,620,828,547.48 4,072,244,009.19 27.55% 23.34% 24.13% -0.46%
appliances
Classified by product:
Washing
5,620,828,547.48 4,072,244,009.19 27.55% 23.34% 24.13% -0.46%
machines
Classified by region:
China 4,389,668,158.68 2,979,225,532.72 32.13% 23.01% 25.03% -1.10%
Other countries 1,231,160,388.80 1,093,018,476.47 11.22% 24.53% 21.73% 2.04%
IV. Core competitiveness analysis
The core competitiveness of the Company is demonstrated in the following aspects:
1. Our knowledge and experience accumulated in the long history of our washing machine business. We are
the sole company in China that has focused on the washing machine industry since the end of 1970s. Profound
knowledge and experience has been accumulated through these several decades in technology, R&D and
innovation, market research, business operation, etc., which has been transformed into tacit knowledge of the
Company through the accumulation and inheritance by our talent team and has thus become the most important
core competitiveness of the Company.
2. Our capability of seeing the industry clearly and R&D. We have our unique capability of judging and
foreseeing developments in the industry and technology. 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 technologies.
3. Our relationship management capability at the upstream and downstream ends of our business. We keep
building a customer-oriented supply chain management system, have set up an industry-leading cross-enterprise
procurement platform with the help of Midea Group, constantly increase the efficiency of our supply chain and
foster a strategic partnership with our suppliers. In terms of channels, 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 agent channels, flagship stores and franchised stores to distribute its products to
households. In e-commerce, we proactively make plans about online channels by enhancing our cooperation with
all famous online shopping platforms and our online sales have achieved a fast growth. Overseas, the Company
keeps deepening its cooperation with customers, expanding strategic overseas markets and enhancing the
promotion of its own brands in the regional markets. The Company enjoys a good and long-term cooperation with
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
its major customers at home and abroad.
4. Our capability to respond to needs of consumers. As a consumer appliance manufacturer, we have been
working on marketing and brand operation as an important task in our operation and management, keeping a
watchful eye on changes in market demand, studying consumers’ needs, and focusing on improvement of the
whole process experience of customers in shopping, product use and after-sales service. In recent years, we have
adopted a two-brand strategy (―Little Swan‖ and ―Midea‖) to further satisfy diversified needs of consumers. With
a history of over three decades, Little Swan is considered a very reliable brand among consumers, with the slogan
of ―Whole-hearted Little Swan‖ being well-known among them. As for Midea, a comprehensive home appliance
brand, its share in the washing machine market keeps rising with increasing recognition.
5. Our capability of innovation and self-improvement. The Company is one of the earliest washer
manufacturers in China. Through years of innovation and accumulation, we have developed a corporate culture of
R&D innovation, lean production and self-reform. We now have domestically and internationally first-class
manufacturing equipment and an experienced manufacturing team. Our wide product range covers roller,
wave-wheel full-automatic, double-cylinder and agitator washing machines, clothes dryers, etc., creating
incomparable scale competitiveness among washer manufacturers as well as a complete series of product lines.
Along with the constant developments of the market needs, we will further improve our capability of intelligent
manufacture. We have established a sound corporate governance mechanism, an effective performance appraisal
mechanism, a mature professional manager mechanism and a mature talent cultivating mechanism. Along with
changes in the market and this new era, we will keep reforming our organizational structure and operating model
so as to ensure our capability of sustainable development.
No significant changes occurred to the core competitiveness of the Company in the reporting period.
V. Investment analysis
1. Investments in equities of external parties
(1) Foreign investment
□ Applicable √ Inapplicable
There was no foreign investment of the Company in the reporting period.
(2) Equity-holdings in financial enterprises
□ Applicable √ Inapplicable
No such cases in the reporting period.
(3) Investment in securities
□ Applicable √ Inapplicable
The Company did not invest in any securities in the reporting period.
(4) Shareholdings in other listed companies
□ Applicable √ Inapplicable
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
No such cases in the reporting period.
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
Unit: RMB Ten thousand
Actual
Related- Impairm
Name Principal gain/loss
party Product Amount Beginning Ending Payment ent Predicte
of Relation actually in
transacti variety entrusted date date determination provisio d gain
trustee recovered reporting
on or not n (if any)
period
Floating
Bank interest rate,
wealth 29 Aug. 12 Apr. contractual
Bank No No 328,530 309,100 7,135 7,135
manageme 2014 2016 highest
nt product annualized
income rate
Total 328,530 -- -- -- 309,100 7,135 7,135
All is from the self-owned funds of the Company. The entrusted funds are cumulative. The
Source of the entrusted funds line for wealth management entrustment is no more than RMB 4.4 billion and repeated use
is allowed within the said line.
Cumulative overdue principals and
0
gains
Lawsuits (if applicable) Inapplicable
Disclosure date of the Board f
Directors’ announcement approving
18 Mar. 2015
the wealth management entrustment
(if any)
Disclosure date of the Board f
Shareholders’ announcement
20 Apr. 2015
approving the wealth management
entrustment (if any)
(2) Derivative investment
Unit: RMB Ten thousand
Related- Initial Impairm Proportion Actual
Type of Opening Closing
party invest Beginning Ending ent of the gain/loss
Operator Relation derivative investment investment
transacti ment date date provisio closing in
investment amount amount
on or not amoun n (if investment reporting
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
t any) amount in period
the
Company’s
closing net
assets (%)
Forward
16 May 19 May
Bank No No exchange 5,770 5,770 0 0.00% 35
2013 2015
contract
Total 5,770 -- -- 5,770 0 0.00% 35
Capital source for derivative investment All self-owned funds
Lawsuits (if applicable) Inapplicable
Disclosure date of the board
announcement approving the derivative 18 Mar. 2015
investment (if any)
Disclosure date of the general meeting
announcement approving the derivative 20 Apr. 2015
investment (if any)
The Company has formulated the Management Methods for Exchange Funds upon
review to thoroughly assess and control derivative investment risks, which are detailed as
follows:
1. Market risk
Fluctuations of exchange rates may incur a great market risk in the foreign exchange
funds business. Meanwhile, if the Company fails to input foreign exchanges on time for
contract execution in the foreign exchange funds business, contract breach risk may
incur.
Counter-measures: The Company will not carry out speculative trading in its foreign
Analysis on risks and control measures of exchange funds business. And the Company will stick to the principle of being prudent in
derivative products held in the reporting operations. A from-the-bottom-up management mechanism is adopted. When subsidiaries
period (including but not limited to or product enterprises file applications for funds business, they will give a risk analysis
market risk, liquidity risk, credit risk, on conditions or circumstances that might affect gains and losses, estimate the maximum
operation risk, law risk, etc.) 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
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
reduced by enhancing risk control over procedures for operation, decision-making and
trading.
3. Risk concerning laws and regulations
The Company carries out its foreign exchange business in compliance with applicable
laws and regulations, with rights and duties between the Company and agencies being
stated clearly.
Counter-measures: The Company urges responsible departments to understand better
about relevant laws, regulations and market rules; be strict in contract re-checks; make
clear relevant rights and duties; and enhance compliance checks to make sure that the
Company operates derivative investments in compliance with applicable laws,
regulations and the Company’s internal management rules.
Changes of market prices or fair values in
the reporting period of the invested
derivatives. And the analysis on the fair The Company adopts forward foreign exchange quotations declared by the People’s
value of the derivatives should include the Bank of China in its analysis on fair values of derivative products.
specific use methods and the relevant
assumptions and parameters.
Whether significant changes occurred to
the Company’s accounting policy and
specific accounting principles of No significant changes.
derivatives in the reporting period
compared to the previous reporting period
Independent directors of the Company believe that: The Company has formulated
derivative investment rules such as the Management Methods for Exchange Funds to
help it effectively control risks involved; the Company’s derivative investments in the
Specific opinion from independent reporting period mainly targeted its exports. It signed forward exchange contracts with
directors on the Company’s derivatives domestic financial institutions, which helped it to lock up the exchange rate and avoid the
investment and risk control 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) Entrustment loans
□ Applicable √ Inapplicable
There was no entrustment loan of the Company in the reporting period.
3. Use of raised funds
□ Applicable √ Inapplicable
No such cases in the reporting period.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
4. Analysis to main subsidiaries and stock-participating companies
Total Operating Operating
Net assets Net profit
Company Company Registered assets revenues profit
Industry Main product (RMB Ten (RMB Ten
name variety capital (RMB Ten (RMB Ten (RMB Ten
thousand) thousand)
thousand) thousand) thousand)
Hefei Midea
Washing USD
Washing
Subsidiary Manufacture machine 135.52 442,862.44 204,426.01 288,915.80 19,616.91 16,376.54
Machine
manufacture million
Co., Ltd.
Wuxi Little
Swan
Washing
General RMB 28
Subsidiary Manufacture machine 26,246.69 17,496.42 11,915.00 987.04 822.62
Electrical million
manufacture
Appliances
Co., Ltd
Development
and
Wuxi FILIN
manufacture USD
Electronics Subsidiary Manufacture 56,374.65 42,257.73 23,741.86 5,966.69 5,684.93
of new 3,624,564
Co., Ltd
electronic
components
5. Significant projects invested with non-raised funds
□ Applicable √ Inapplicable
No significant projects of investments with non-raised funds during the reporting period.
VI. Predict the operating results of Jan.-Sept. 2015
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. Explanation by the Board of Directors and the Supervisory Committee about the
“non-standard audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
VIII. Explanation by the Board of Directors about the “non-standard audit report” for last
year
□ Applicable √ Inapplicable
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
IX. 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:
As the profit allocation plan for 2014, the Company, based on the total 632,487,764 shares as at the end of 2014,
distributed a cash dividend of RMB 4.50 and 0 bonus shares for every 10 shares held by its shareholders. And the
Company did not turn capital reserve into share capital for 2014. The plan was reviewed and approved at the 14th
Session of the 7th Board of Directors on 18 Mar. 2015 and then the 2014 Annual Shareholders’ General Meeting
on 20 Apr. 2015. The was published on 4
Jun. 2015. Implementation of the profit allocation plan was completed in the reporting period.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and the resolution of the general meeting Yes
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors fulfilled their responsibilities and played their due role. Yes
Minority shareholders have the chance to fully express their opinion and desire and their legal rights and
Yes
interests were fully protected.
In adjustment or alteration of the cash dividend policy, the conditions and procedure were in compliance with
Inapplicable
regulations and transparent.
X. Preplan for profit distribution and turning capital reserve into share capital for the
reporting period
□ Applicable √ Inapplicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital for
the reporting period.
XI. Researches, visits and interviews received in the reporting period
Main discussion and
Way of Visitor
Time Place Visitor materials provided
reception type
by the Company
Changjiang Securities, Huatai Asset
Management, Fullgoal Fund, China Asset
Conference Room Management, Sinolink Securities, Zhong Ou Overall operation of
22 Jan. 2015 Field research Institution
of the Company Asset Management, Essence Securities, Bank of the Company
Communications Schroder Fund, Ping An Asset
Management
Conference Room Overall operation of
23 Apr. 2015 Field research Institution Guolian Securities
of the Company the Company
27 Apr. 2015 Conference Room Field research Institution Kim Eng Hong Kong, Credit Suisse Overall operation of
19
2015 Semi-annual Report of Wuxi Little Swan Company Limited
of the Company the Company
Conference Room Overall operation of
6 May 2015 Field research Institution Acru Asset, Ginkgo Capital Partners
of the Company the Company
Conference Room Overall operation of
15 May 2015 Field research Institution Orient Securities
of the Company the Company
Conference Room Overall operation of
30 Jun. 2015 Field research Institution Kingsmead Asset Management Pte. Ltd
of the Company the Company
20
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section 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. Litigations
Significant litigations and arbitrations
□ Applicable √ Inapplicable
The Company was not involved in any significant lawsuit or arbitration during the reporting period.
Other litigations
□ Applicable √ Inapplicable
III. Media’s questions
□Applicable √Inapplicable
The Company was not involved in any media’s questions during the reporting period.
IV. Related Events of bankruptcy reorganization
□ Applicable √ Inapplicable
The Company was not involved in any related events of bankruptcy reorganization.
V. Assets transaction events
1. Purchase of assets
□ Applicable √ Inapplicable
The Company was not involved in any purchase of assets.
2. Sales of assets
□ Applicable √ Inapplicable
The Company was not involved in any sale of assets.
21
2015 Semi-annual Report of Wuxi Little Swan Company Limited
3. Combination of enterprises
□ Applicable √ Inapplicable
The Company was not involved in any combination of enterprises.
VI. Implementation of equity incentive and its influence
□ Applicable √ Inapplicable
The Company was not involved in any implementation of equity incentive and its execution.
VII. Significant related-party transactions
1. Related-party transaction relevant to routine operation
Pricin
Settleme
Conte g Transact
Type Proporti nt
nt of princip ion
of the Tran on in method
the le of amount Disclo Relati
Relationsh related sacti same of the Marke Disclosure Relate
Related party related the (RMB sure onshi
ip -party on kind of related-p t price date d party
-party related Ten index p
transac price transacti arty
transac -party thousand
tion ons (%) transacti
tion transac )
on
tion
Logisti On 20
Subsidiary Reven
Ningbo Annto cs, Mar.
controlled ue Marke
Logistics Co., storag 17,217 4.26% 37,300 No 2015,
by from t price
Ltd. e the
controller service
service comp
Manag any
Subsidiary Reven publis
Midea Group ement
controlled ue Marke hed
E-commerce and 139 0.03% 1,000 No
by from t price on the
Co., Ltd. promo Cash or
controller service 20 infor
tion acceptance
Mar. matio
Hefei Hualing Subsidiary due 3-6
Provid Rental 2015 n
Electric controlled Marke months
ing housin 583 0.10% 1,500 No netwo
Appliances Co., by t price
service g rk's
Ltd. controller
annou
Huaian Weiling Subsidiary Purcha ncem
Motor controlled Purcha se of Marke ent:
24,827 6.14% 58,600 No
Manufacturing by se materi t price (Ann
Co., Ltd. controller als ounce
Ningbo Midea Subsidiary Purcha ment
Purcha Marke 24,510 6.06% 76,000 No
Joint Supplies controlled se of No.:
22
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Co., Ltd. by se materi t price 2015-
controller als 04)
MIDEA
Subsidiary Sales
CONSUMER
controlled of Marke
ELECTRIC Sales 92 0.02% 1,700 No
by produc t price
(VIETNAM)
controller ts
CO.,LTD
Midea Electric Subsidiary Sales
Trading controlled of Marke
Sales 90,515 14.83% 250,000 No
(Singapore) Co. by produc t price
Pte. Ltd. controller ts
Midea Scott & Subsidiary Sales
English controlled of Marke
Sales 2,254 0.37% 4,000 No
Electronics by produc t price
SDN.BHD controller ts
Subsidiary Sales
PT. MIDEA
controlled of Marke
PLANET Sales 523 0.09% 2,800 No
by produc t price
INDONESIA
controller ts
Subsidiary Sales
Hefei Midea
controlled of Marke
Materials Sales 9 0.00% 0 No
by produc t price
Supply Co., Ltd.
controller ts
None None
Subsidiary Purcha
Zhejiang GMCC
controlled Purcha se of Marke
Compressor Co., 175 0.04% 0 No
by se materi t price
Ltd.
controller als
Total -- -- 160,844 -- 432,900 -- -- -- -- --
As for the prediction on the total amount of
routine related-party transactions to be
For details, see IX. Financial report ―(X) Related-party and related-party transactions,
occurred in the reporting period by relevant
5. Related-party transactions‖.
types, the actual performance in the
reporting period(If any)
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Inapplicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Inapplicable
23
2015 Semi-annual Report of Wuxi Little Swan Company Limited
The Company was not involved in any related-party transaction with joint investments during the reporting period.
4. Credits and liabilities with related parties
□ Applicable √ Inapplicable
The Company was not involved in any credit and liability with related parties during the reporting period.
5. Other significant related-party transactions
(1) The Company convened the 2014 Annual General Meeting on 20 Apr. 2015, which reviewed and approved the
proposals on:
① The Proposal on Adjusting the Announcement about the Financial Service Agreement which signed with the
Midea Group Finance Co., Ltd. of related transaction
It was agreed that, the financial company should provide the service of deposit, loan, note discount, guarantee,
settlement, and the series of the financial services that approved by the CBRC according to the requirements of
the Company as well as its subsidiaries. During the three-year validity after date of the validation of the agreement,
the maximum of the deposit balance that the Company and its subsidiaries disposed in the financial company
should not exceed the amount of RMB 2 billion per day; and the maximum of the outstanding loan principal and
interest balance that the financial company granted to the Company and its subsidiaries should not exceed the
amount of RMB 2 billion per day.
At the report-end, the deposit balance of the Company at Midea Group Finance Co., Ltd. was of RMB 0.72billion,
with no any loan.
② The Proposal on the Announcements about trademark license of related transactions
The Company permitted GD Midea Holding Co., Ltd. and its controlled subsidiaries to use trademark of
LITTLE SWAN and picture in air conditioner commodities; permitted Hubei Midea Refrigerator Co., Ltd. and its
controlled subsidiaries to use to use trademark of LITTLE SWAN and picture in the refrigerators and the
freezers; at the same time 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. 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 permitting period last from the 1 Jan. 2014 to 31 Dec. 2016.
(Notes: Approved by [2013] No. 1014 document of China Securities Regulatory Commission, Midea Group had
made share swap absorption merger of the original controlling shareholder—GD Midea Holding Co., Ltd. on 18
Sep. 2013, after which, Midea Group inherited and carried on the whole obligations and right such as the whole
assets and liabilities of GD Midea Holding Co., Ltd. as a remainder enterprise as well as had completed the
relevant share transfer registration procedures on 31 Dec. 2013.)
(2) The Company held the 2014 Annual General Meeting on 20 Apr. 2015 which reviewed and approved the
Proposal on Estimating the 2015 Daily Related Transactions of the Company.
(3) The Company held the 16th Session of the 7th Board of Directors on 4 Aug. 2015, which reviewed and
approved the Proposal on Adjusting the Amount of the 2015 Daily Related Transactions.
For the specific content of the daily related transactoins, please refer to the Notes X. Related-party and
24
2015 Semi-annual Report of Wuxi Little Swan Company Limited
related-party transactions of Section X. Financial Report.
Index for the interim announcements on related-party transactions disclosed on the relevant website:
Title of the interim announcement Disclosure date Disclosure website
Announcements about Trademark License of Related Transactions (No. 2013-18) 6 Aug. 2013 www.cninfo.com.cn
Proposal on Adjusting the Announcement about the Financial Service Agreement which
20 Mar. 2015 www.cninfo.com.cn
signed with the Midea Group Finance Co., Ltd. of related transaction (No. 2015-08)
Proposal on Estimating the 2015 Daily Related Transactions of the Company (No.
20 Mar. 2015 www.cninfo.com.cn
2015-04)
Announcements about Adjusting the 2015Daily Connection Transaction Amount
6 Aug. 2015 www.cninfo.com.cn
(No.2015-17)
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Inapplicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Inapplicable
There was no any trusteeship of the Company in the reporting period.
(2) Contract
□ Applicable √ Inapplicable
There was no any contract of the Company in the reporting period.
(3) Lease
□ Applicable √ Inapplicable
There was no any lease of the Company in the reporting period.
2. Guarantees provided by the Company
25
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Unit: RMB ’000
Guarantees provided by the company for external parties (excluding those for subsidiaries)
Disclosure date Guarante
on relevant Actual occurrence Actual e for a
Amount for Type of Period of Execute
Guaranteed party announcement date (date of guarantee related
guarantee guarantee guarantee d or not
of guaranteed agreement) amount party or
amount not
Total actual occurred
Total external guarantee line
amount of external
approved during the reporting 0 0
guarantee during the
period (A1)
reporting period (A2)
Total actual external
Total external guarantee line that
guarantee balance at the
has been approved at the end of the 0 0
end of the reporting period
reporting period (A3)
(A4)
Guarantees provided by the company for its subsidiaries
Guarante
Disclosure date on
Amount Actual occurrence Actual e for a
relevant Type of Period of Execute
Guaranteed party for date (date of guarantee related
announcement of guarantee guarantee d or not
guarantee agreement) amount party or
guaranteed amount
not
Hefei Midea Joint
22 Mar.
Washing Machine 7 Mar. 2014 127,000 22 Sep. 2014 26.31 liability Yes No
2015
Co., Ltd. guarantee
Total actual occurred
Total guarantee line approved for the
amount of guarantee for
subsidiaries during the reporting period 125,000 26.31
the subsidiaries during the
(B1)
reporting period (B2)
Total actual guarantee
Total guarantee line that has been
balance for the
approved for the subsidiaries at the end 125,000 0
subsidiaries at the end of
of the reporting period (B3)
the reporting period (B4)
Guarantees provided by the subsidiaries for their subsidiaries
Guarante
Disclosure date on
Amount Actual occurrence Actual e for a
relevant Type of Period of Execute
Guaranteed party for date (date of guarantee related
announcement of guarantee guarantee d or not
guarantee agreement) amount party or
guaranteed amount
not
Total guarantee line approved for the Total actual occurred
subsidiaries during the reporting period 0 amount of guarantee for 0
(C1) the subsidiaries during the
26
2015 Semi-annual Report of Wuxi Little Swan Company Limited
reporting period (C2)
Total actual guarantee
Total guarantee line that has been
balance for the
approved for the subsidiaries at the end 0 0
subsidiaries at the end of
of the reporting period (C3)
the reporting period (C4)
Total guarantee amount provided by the Company (total of the above-mentioned three kinds of guarantees)
Total actual occurred
Total guarantee line approved during amount of guarantee
125,000 26.31
the reporting period (A1+B1+C1) during the reporting
period (A2+B2+C2)
Total actual guarantee
Total guarantee line that has been
balance at the end of the
approved at the end of the reporting 125,000 0
reporting period
period (A3+B3+C3)
(A4+B4+C4)
Proportion of total guarantee amount (A4+B4+C4) to the net assets of
0.00%
the Company
Of which:
Amount of guarantee for shareholders, actual controller and related parties (D) 0
Amount of debt guarantee provided for the guaranteed party whose asset-liability ratio is not less
0
than 70% directly or indirectly (E)
Part of the amount of the total guarantee over 50% of net assets (F) 0
Total amount of the above three guarantees (D+E+F) 0
Explanation on possibility to bear joint liability due to undue guarantees (if any) Inapplicable
Explanation on the external guarantees in violation of stipulated procedures (if any) Inapplicable
(1) Particulars about illegal external guarantee
□ Applicable √ Inapplicable
There was no particular about illegal external guarantee of the Company in the reporting period.
3. Other significant contracts
□ Applicable √ Inapplicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable √ Inapplicable
There was no other significant transaction of the Company in the reporting period.
27
2015 Semi-annual Report of Wuxi Little Swan Company Limited
X. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period
Time of Period
Commitmen making of Fulfil
Commitment Contents
t maker commitme commi lment
nt tment
Where the controlling shareholder GD Midea Holding Co., Ltd.
(Midea Holding) plans to sell the Company’s shares released from In the
trading moratorium held by it via the bid trading system of the proce
Commitment on share Controlling Shenzhen Stock Exchange, and Midea Holding decreases over 28 Feb. Long-t ss of
reform shareholder 5% shares within six months since the first reduction of holdings, 2008 erm imple
Midea Holding will disclose the suggestive announcement on menta
share selling through the Company two trading days before its tion
first reduction of holdings.
1. As for the commitment of avoiding horizontal competition,
Midea Group (the controlling shareholder) and Mr. He Xiangjian
(the actual controller) has promised that, for the period after the
said transaction when the Company’s controlling shareholder and
actual controller remain unchanged, the actual controller Mr. He
Xiangjian, his immediate family, Midea Group and its controlled
other enterprises neither recently nor in the future will engage in
any production or operation activity the same as or similar to the
recently main business of Little Swan or its controlled enterprises,
as well as will neither engage in nor participate in any In the
Controlling competitive business the same as the recently main business of proce
1 Dec.
shareholder Little Swan or its controlled enterprises through controlling other Long-t ss of
2010, 6
and actual economic entities, institutions, economic organizations. If Little erm imple
Commitment in the Jun. 2014
controller Swan and its controlled enterprises further developed its scope of menta
acquisition report or the
the operation business on the basis of the recently business, and if tion
report on equity changes
the actual controller Mr. He Xiangjian, his immediate family,
Midea Group and its controlled other enterprises had executed
production of that, would solve the corresponding horizontal
competition problems within the reasonable period. If recently
there was no any production or operation, would not engage in the
similar new business that competed with Little Swan and its
controlled enterprises. If there was any situation violated the
above commitments, the profits gained from the business related
to operation were belongs to Little Swan.
Controlling 2. The commitment by Midea Group and the actual controller on In the
1 Dec.
shareholder the specification of the related-party transaction. Midea Group Long-t proce
2010, 6
and actual (the controlling shareholder) and Mr. He Xiangjian (the actual erm ss of
Jun. 2014
controller controller) has promised that, for the period after the said imple
28
2015 Semi-annual Report of Wuxi Little Swan Company Limited
transaction when the Company’s controlling shareholder and menta
actual controller remain unchanged, the actual controller Mr. He tion
Xiangjian, his immediate family, Midea Group and its controlled
other enterprises will specify and try their best to reduce the
related-party transactions with Little Swan and its controlled
enterprises. If occurred the unavoidable related transactions with
Little Swan and its controlled enterprises, would sign the
normative related-party transactions agreement Little Swan
according to laws and would execute the approval procedure
according to the relevant regulations to ensure the fairness of the
price of the related-party transactions; ensure to execute the
information disclose obligation of related-party transactions
according to the relevant regulations; ensure not to make
advantage of the related-party transactions for illegally
transferring the assets and profits of Little Swan, as well as not to
make advantage of the related-party transactions for harming to
the interests of Little Swan and the shareholders; would not
require Little Swan to offer any more favorable condition
compared with that offered to the independent third party in any
fair trade market transaction; execute the voting debarb obligation
when involved in the voting of the related events of the actual
controller Mr. He Xiangjian, his immediate family, Midea Group
and its controlled other enterprises. If Midea Group and Mr. He
Xiangjian violated the above commitments and promises that led
to the harm for the equity of Little Swan or other shareholders,
Midea Group and Mr. He Xiangjian should take the responsibility
of the corresponding liability for damage.
3. As for the commitment on independence, Midea Group has
promised to protect Little Swan’s independence in terms of assets,
staff, finance, organization and business. 3. As for the In the
commitment on independence, Midea Group and the actual proce
1 Dec.
Controlling controller Mr. He Xiangjian has promised that, to further ensure Long-t ss of
2010, 6
shareholder the independent operation of Little Swan, Mr. He Xiangjian, erm imple
Jun. 2014
Midea Group and its controlled other enterprises would maintain menta
the mutual independent in terms of personnel, finance, assets, tion
business and institutions with Little Swan according to the
relevant laws and regulations as well as the normative documents.
4. As for the commitment on related-party deposits and
In the
borrowings, up to 8 Apr. 2010, the Financial Settlement Center of
proce
Midea Group had settled all internal deposits and borrowings with
Controlling 1 Dec. Long-t ss of
Hefei Royalstar Washing Equipment Manufacturing Co., Ltd.;
shareholder 2010 erm imple
and Midea Group has promised that there will be no more
menta
deposits, borrowings or other funds flows incurred between the
tion
Financial Settlement Center and Hefei Royalstar Washing
29
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Equipment Manufacturing Co., Ltd..
5. The commitment by Midea Group 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 In the
ownership certificates—the warehouse for half-finished products proce
Controlling (176 square meters) and the workshop for injection molding (834 1 Dec. Long-t ss of
shareholder square meters), both located in the old factory of Royalstar 2010 erm imple
Washing Equipment, Hewa Road, Hefei. Midea Group has menta
promised that if loss occurs due to the said two buildings without tion
ownership certificates in the asset disposal process in the future, it
will assume the loss thus caused and make compensation to the
Company.
6. The commitment by Midea Group on trademarks is detailed as
follows. (1) Concerning the ―Midea‖ trademark: Upon approval
and implementation of the equity transfer transaction, Midea
Group has promised that it will make sure that Royalstar Washing No.
Equipment uses the ―Midea‖ trademark in a proper manner. (2),
Royalstar Washing Equipment will be allowed to use the ―Midea‖ RongS
trademark with a trademark use fee not more than that paid by hiDa
Midea Group (the controlling shareholder of Midea Group) and tradem
its subsidiaries (currently 3‰ of the annual sales income ark is
generated by products using the ―Midea‖ trademark), and upon due by
negotiation and signing of the ―Agreement for Trademark Use‖. March
The related-party transactions incurred due to the said use of the 31,
In the
―Midea‖ trademark will be submitted to the decision-making 2013
proce
organ of the Company for approval according to the stipulated and
Controlling 1 Dec. ss of
procedure. As such, interests of the Company and its minority won’t
shareholder 2010 imple
shareholders will be safeguarded. (2) Concerning the ―Royalstar‖ renew
menta
trademark: Midea Group has signed the ―Contract for Trademark its
tion
Use‖ with Royalstar Group and obtained the ordinary use rights contra
of the ―Royalstar‖ (or ―RongShiDa‖) trademark. As the transferor ct;
in the transfer transaction of equity interests of Royalstar Washing Other
Equipment, Midea Group has promised that within the scope as items
agreed in the ―Contract for Trademark Use‖, if any dispute arises for a
between Royalstar Washing Equipment and Royalstar Group over long
the former’s execution of the ―Contract for Trademark Use‖, term
Little Swan will not be involved. If Royalstar Washing Equipment imple
and Little Swan have to assume any responsibility or loss due to ment
the aforesaid dispute, Midea Group is willing to take on the
responsibility instead and make compensations to Royalstar
Washing Equipment and Little Swan at full amount.
Controlling 7. The commitment by Midea Group on social security payment 1 Dec. Long-t In the
30
2015 Semi-annual Report of Wuxi Little Swan Company Limited
shareholder and tax risks is detailed as follows. Midea Group has promised 2010 erm proce
that upon the completion of the said equity transfer deal, if ss of
Royalstar Washing Equipment is obliged to take on any imple
responsibility or pay relevant fares as required by relevant menta
government authorities due to its social security payment before tion
the said deal, Midea Group 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, Midea
Group 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, Midea Group 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, Midea Group will assume the
corresponding responsibility for compensation.
8. The commitment by Midea Group on capital safety at the
finance companies of the Company: during the validity period of In the
the Financial Services Agreement, when Midea Group occurred 3 proce
Controlling emergency situation of payment difficulty at finance companies, it 18 Mar. years ss of
shareholder should adopt the effective measures such as increase the capital 2015 validit imple
fund of the finance companies according to the actual needs of y menta
solving the payment difficulty to ensure the capital safety of the tion
Company.
Commitments made
upon the assets
reorganization
Commitments made
upon IPO or refinancing
Other commitments
made to minority
shareholders
Executed timely or not? Yes
Specific reasons fail to
complete execution and Inapplicable
further plans (if any)
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
31
2015 Semi-annual Report of Wuxi Little Swan Company Limited
The semi-annual financial report had not been audited.
XII. Punishment and Rectification
□ Applicable √ Inapplicable
There was no any punishment and rectification of the Company in the reporting period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Inapplicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
XIV. Explanation about other significant matters
□ Applicable √ Inapplicable
There was no any other significant matter needed to be explained in the reporting period.
32
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section VI. Changes in Share Capital and Particulars about
Shareholders
I. Changes in share capital
Unit: Share
Before this change Increase/decrease (+, -) After the change
Issuance Capitalizatio
Proportion Bonus Proportion
Amount of new n of public Other Subtotal Amount
(%) share (%)
shares reserve fund
I. Shares subject to trading
3,686,890 0.58% 18,225 3,705,115 0.59%
moratorium
3. Other domestic shares 3,686,890 0.58% 18,225 3,705,115 0.59%
Including: Shares held by
3,686,890 0.58% 3,686,890 0.58%
domestic legal persons
Shares held by domestic
18,225 18,225 0.01%
individuals
II. Shares not subject to
628,800,874 99.42% -18,225 628,782,649 99.41%
trading moratorium
1. Ordinary shares
437,765,002 69.21% -18,225 437,746,777 69.21%
denominated in RMB
2. Domestically listed
191,035,872 30.20% 191,035,872 30.20%
foreign shares
III. Total of shares 632,487,764 100.00% 632,487,764 100.00%
Reason for the change in shares
√ Applicable □ Inapplicable
The Vice GM, Mr. Mao Zhiliang had purchased 24,300 shares of the Company on 28 May 2015, and according to
the 142nd regulation of Company law, the annual transfer of shares shall not exceed 25% of the total number of
shares of the Company he held, so 75% of his total shares were locked and the 18,225 shares turned into the
shares subject to trading moratorium.
Approval of the change in shares
□ Applicable √ Inapplicable
Transfer of share ownership
□ Applicable √ Inapplicable
Effects of the change in shares on the basic EPS, diluted EPS, net assets per share attributable to common
33
2015 Semi-annual Report of Wuxi Little Swan Company Limited
shareholders of the Company and other financial indexes over the last year and last period
□ Applicable √ Inapplicable
Other contents that the Company considered necessary or were required by the securities regulatory authorities to
disclose
□ Applicable √ Inapplicable
Explanation of the changes in the sum of the shares and the structure of the shareholders and the structure of the
assets as well as the liabilities of the Company
□ Applicable √ Inapplicable
II. Number of shareholders and shareholding
Unit: share
Total number of common Total number of preferred shareholders that had
shareholders at the end of the 28,708 restored the voting right at the end of the reporting 0
reporting period period (if any) (note 8)
Shareholding of the common shareholders holding more than 5% shares or the top 10 common shareholders
Number of Pledged or
Increase and
Number of shares Number of frozen shares
decrease of
shareholding held shares held
Nature of Holding shares Num
Name of shareholder at the end of subject to not subject to Status
shareholder percentage during ber of
the reporting trading trading of
reporting share
period moratoriu moratorium shares
period s
m
Domestic
MIDEA GROUP CO., LTD. non-state-owned 37.78% 238,948,117 0 238,948,117
corporation
TITONI INVESTMENTS Overseas
14.89% 94,204,942 0 94,204,942
DEVELOPMENT LTD. corporation
Overseas
GAOLING FUND,L.P. 3.51% 22,226,072 -4,501,614 22,226,072
corporation
FINANCE BUREAU OF On behalf of the
2.70% 17,054,071 -5,003,586 17,054,071
WUXI government
GREENWOODS CHINA Overseas
1.30% 8,207,357 8,207,357 8,207,357
ALPHA MASTER FUND corporation
NATIONAL SOCIAL Domestic
SECURITY FUND non-state-owned 0.98% 6,180,101 0 6,180,101
PORTFOLIO 108 corporation
NATIONAL SOCIAL Domestic
SECURITY FUND non-state-owned 0.95% 6,000,093 -2,499,907 6,000,093
PORTFOLIO 102 corporation
34
2015 Semi-annual Report of Wuxi Little Swan Company Limited
DEUTSCHE BANK Overseas
0.86% 5,454,794 -1,907,178 5,454,794
AKTIENGESELLSCHAFT corporation
CHINA MERCHANTS Domestic
SECURITIES CO., LTD. – non-state-owned 0.72% 4,538,078 4,538,078 4,538,078
CLIENTS’ CAPITAL corporation
ICBC – SOUTH BIG DATA Domestic
INDEX 100 SECURITIES non-state-owned 0.70% 4,398,661 4,398,661 4,398,661
INVESTMENT FUND corporation
Strategic investors or the general legal person due
to the placement of new shares become the top 10 Inapplicable
shareholders (if any) (note 3)
Explanation on associated relationship or/and MIDEA GROUP CO., LTD. and TITONI INVESTMENTS DEVELOPMENT
persons LTD. are parties acting in concert.
Particulars about shares held by top 10 shareholders not subject to trading moratorium
Number of shares held not subject to Type of share
Name of shareholder trading moratorium at the end of the
Type of share Number
period
MIDEA GROUP CO., LTD. 238,948,117 RMB ordinary share 238,948,117
TITONI INVESTMENTS DEVELOPMENT Domestically listed
94,204,942 94,204,942
LTD. foreign share
Domestically listed
GAOLING FUND,L.P. 22,226,072 22,226,072
foreign share
FINANCE BUREAU OF WUXI 17,054,071 RMB ordinary share 17,054,071
GREENWOODS CHINA ALPHA MASTER Domestically listed
8,207,357 8,207,357
FUND foreign share
NATIONAL SOCIAL SECURITY FUND
6,180,101 RMB ordinary share 6,180,101
PORTFOLIO 108
NATIONAL SOCIAL SECURITY FUND
6,000,093 RMB ordinary share 6,000,093
PORTFOLIO 102
DEUTSCHE BANK AKTIENGESELLSCHAFT 5,454,794 RMB ordinary share 5,454,794
CHINA MERCHANTS SECURITIES CO., LTD.
4,538,078 RMB ordinary share 4,538,078
– CLIENTS’ CAPITAL
ICBC – SOUTH BIG DATA INDEX 100
4,398,661 RMB ordinary share 4,398,661
SECURITIES INVESTMENT FUND
Explanation on associated relationship among the
top ten common shareholders of tradable share
MIDEA GROUP CO., LTD. and TITONI INVESTMENTS DEVELOPMENT
not subject to trading moratorium, as well as
LTD. are parties acting in concert.
among the top ten common shareholders of
tradable share not subject to trading moratorium
35
2015 Semi-annual Report of Wuxi Little Swan Company Limited
and top ten shareholders, or explanation on
acting-in-concert
Particular about the top 10 common shareholders
participate in the securities lending and borrowing Naught
business (if any) (note 4)
Did any top 10 common shareholder and top 10 shareholder of tradable share not subject to trading moratorium of
the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
The top 10 common shareholder and top 10 shareholder of tradable share not subject to trading moratorium of the
Company had not carried out any agreed buy-back in the reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or
implemented by the shareholders and act-in-concert persons
□ Applicable √ Inapplicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any
shareholding increase plan during the reporting period.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section VII. Relevant Situation of the Preferred Shares
□ Applicable √ Inapplicable
There was no any preferred share of the Company during the reporting period.
Section VIII. Directors, Supervisors, Senior Management Staffs
I. Changes in shareholding of directors, supervisors and senior management staffs
Number of
Amount of Amount of Number of Number of
Amount of the granted
Shares held shares shares the granted the granted
shares held restricted
Tenure at the increased at decreased at restricted restricted
Name Office title at the shares at the
status year-begin the reporting the reporting shares at the shares at the
period-end reporting
(share) period period period-begin period-end
(share) period
(share) (share) (share) (share)
(share)
Mao
Vice GM Current 0 24,300 0 24,300 0 0 0
Zhiliang
Total -- -- 0 24,300 0 24,300 0 0 0
II. Changes in directors, supervisors and senior management staffs
Name Position Type Date Reason
Liu Chunlin Independent Director Left 20 Apr. 2015 Personal reason
Tao Xiangnan Independent Director Elected 20 Apr. 2015 By-election of Independent Director
The Company held the 16th Session of the 7th Board of Directors on 4 Aug. 2015, which reviewed and approved
the Proposal on the General Election of the Board of Directors, and the 7th Board of Directors nominated Mr. Fang
Hongbo, Mr. Yin Bitong, Mr. Xiao Mingguang, Mr. Zhang Zhaofeng, Ms Zhou Sixiu, Mr. Sun Yunan, Mr. Jiang
Qingyun, Mr. Tao Xiangnan and Mr. Zhu Heping as the candidates of the Directors of the 8 th Board of Directors,
while the proposal was still needed to be reviewed by the Annual General Meeting.
The Company held the 16th Session of the 7th Board of Supervisors on 4 Aug. 2015, which reviewed and approved
the Proposal on the General Election of the Board of Supervisors, and the 7th Board of Supervisors nominated Mr.
Liang Pengfei and Mr. Wang Shouhu as the candidates of the Shareholder Representative Supervisors of the 8th
Board of Supervisors, while the proposal was still needed to be reviewed by the Annual General Meeting.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section IX. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 2,816,973,344.05 3,059,914,956.21
Settlement reserves
Intra-group lendings
Financial assets measured by fair value with the changes be
248,907.75
included in the current gains and losses
Derivative financial assets
Notes receivable 2,055,783,435.17 3,147,153,535.61
Accounts receivable 844,704,089.67 856,343,229.70
Accounts paid in advance 165,286,324.83 142,977,522.28
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 27,248,397.37 34,611,969.22
Financial assets purchased under agreements to resell
Inventories 458,234,419.10 605,616,993.25
Assets divided available for sale
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Non-current assets due within 1 year
Other current assets 3,314,447,877.26 1,947,972,214.72
Total current assets 9,682,677,887.45 9,794,839,328.74
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 200,000.00 200,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 2,726,599.21 2,850,040.45
Investing property 71,109,600.25 73,229,177.52
Fixed assets 1,026,039,242.28 1,065,820,898.65
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 200,141,101.35 202,760,577.70
R&D expense
Goodwill
Long-term deferred expenses 5,492,490.39 1,851,978.15
Deferred income tax assets 241,771,197.84 235,241,927.50
Other non-current assets
Total of non-current assets 1,547,480,231.32 1,581,954,599.97
Total assets 11,230,158,118.77 11,376,793,928.71
Current liabilities:
Short-term borrowings 15,234,122.32
Borrowings from Central Bank
Customer bank deposits and due to banks and other financial
institutions
Intra-group borrowings
Financial liabilities measured by fair value with the changes
be included in the current gains and losses
Derivative financial liabilities
Notes payable 1,367,635,597.24 1,173,851,127.31
Accounts payable 3,474,609,646.37 3,614,077,813.37
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Accounts received in advance 514,283,156.52 851,592,826.03
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 200,327,168.56 250,377,809.92
Tax payable 221,331,717.38 273,648,854.64
Interest payable
Dividend payable 5,400,652.06 4,088,128.36
Other accounts payable 49,991,787.58 48,540,416.84
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities divided available for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 5,848,813,848.03 6,216,176,976.47
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preferred shares
Perpetual capital securities
Long-term payables
Long-term payroll payables
Specific payables 2,073,957.30 2,073,957.30
Estimated liabilities 9,773,637.38 9,960,830.74
Deferred income 3,622,133.31 3,848,733.33
Deferred income tax liabilities 37,336.16
Other non-current liabilities
Total non-current liabilities 15,469,727.99 15,920,857.53
Total liabilities 5,864,283,576.02 6,232,097,834.00
Owners’ equity
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: preferred shares
40
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Perpetual capital securities
Capital reserves 1,146,807,620.92 1,139,956,336.03
Less: Treasury stock
Other comprehensive income -3,476,435.26 -3,449,689.57
Specific reserves
Surplus reserves 332,594,722.29 332,594,722.29
Provisions for general risks
Retained profits 2,472,467,754.33 2,326,392,979.58
Total equity attributable to owners of the Company 4,580,881,426.28 4,427,982,112.33
Minority interests 784,993,116.47 716,713,982.38
Total owners’ equity 5,365,874,542.75 5,144,696,094.71
Total liabilities and owners’ equity 11,230,158,118.77 11,376,793,928.71
2. Balance sheet of the Company
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,696,316,273.38 1,911,559,698.48
Financial assets measured by fair value with the changes be
169,471.35
included in the current gains and losses
Derivative financial assets
Notes receivable 1,503,548,274.29 1,995,701,371.99
Accounts receivable 792,441,311.26 599,080,895.73
Accounts paid in advance 114,183,452.88 82,118,815.39
Interest receivable
Dividend receivable
Other accounts receivable 21,451,160.69 16,162,292.29
Inventories 302,376,677.46 391,600,972.50
Assets divided available for sale
Non-current assets due within 1 year
Other current assets 1,715,405,114.46 1,024,148,072.06
Total current assets 6,145,722,264.42 6,020,541,589.79
Non-current assets:
Available-for-sale financial assets 150,000.00 150,000.00
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,342,421,090.78 1,342,544,532.02
Investing property 8,572,174.81 9,112,459.48
Fixed assets 519,927,573.75 536,196,976.55
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 96,626,618.10 97,971,768.25
R&D expense
Goodwill
Long-term deferred expenses 5,064,712.59 1,525,311.48
Deferred income tax assets 154,120,639.30 156,000,386.72
Other non-current assets
Total of non-current assets 2,126,882,809.33 2,143,501,434.50
Total assets 8,272,605,073.75 8,164,043,024.29
Current liabilities:
Short-term borrowings 15,234,122.32
Financial liabilities measured by fair value with the changes
be included in the current gains and losses
Derivative financial liabilities
Notes payable 884,048,101.15 584,317,575.73
Accounts payable 2,633,280,380.67 2,548,193,911.40
Accounts received in advance 313,153,546.66 536,032,679.79
Employee’s compensation payable 123,017,135.51 156,971,021.63
Tax payable 155,961,967.03 178,868,538.14
Interest payable
Dividend payable 5,400,652.06 4,088,128.36
Other accounts payable 14,653,077.61 15,256,765.11
Liabilities divided available for sale
Non-current liabilities due within 1 year
Other current liabilities
42
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Total current liabilities 4,144,748,983.01 4,023,728,620.16
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preferred shares
Perpetual capital securities
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
Deferred income tax liabilities 25,420.70
Other non-current liabilities
Total non-current liabilities 25,420.70
Total liabilities 4,144,748,983.01 4,023,754,040.86
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: preferred shares
Perpetual capital securities
Capital reserves 1,305,880,748.62 1,300,124,962.20
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 319,944,578.39 319,944,578.39
Retained profits 1,869,542,999.73 1,887,731,678.84
Total owners’ equity 4,127,856,090.74 4,140,288,983.43
Total liabilities and owners’ equity 8,272,605,073.75 8,164,043,024.29
3. Consolidated income statement
Unit: RMB Yuan
Item Jan.-Jun. 2015 Jan.-Jun 2014
I. Total operating revenues 6,101,903,864.60 4,974,057,020.56
Including: Sales income 6,101,903,864.60 4,974,057,020.56
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 5,605,657,906.32 4,606,970,952.57
Including: Cost of sales 4,457,541,472.66 3,655,315,076.59
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 37,697,582.26 31,180,668.93
Selling and distribution expenses 849,993,249.30 708,872,153.90
Administrative expenses 272,955,998.10 210,082,884.69
Financial expenses -11,205,277.58 -9,899,828.86
Asset impairment loss -1,325,118.42 11,419,997.31
Add: Gain/(loss) from change in fair value (―-‖ means loss) -248,907.75 -13,529,790.00
Gain/(loss) from investment (―-‖ means loss) 71,820,527.82 56,378,070.46
Including: share of profits in associates and joint ventures
Foreign exchange gains (―-‖ means loss)
III. Business profit (―-‖ means loss) 567,817,578.35 409,934,348.45
Add: non-operating income 14,656,202.67 11,614,209.80
Of which: gains from non-current asset disposal 223,996.80 497,193.03
Less: non-operating expense 5,048,356.25 4,748,238.66
Of which: losses from non-current asset disposal 1,767,090.74 1,475,989.61
IV. Total profit (―-‖ means loss) 577,425,424.77 416,800,319.59
Less: Income tax expense 78,916,402.71 66,436,602.59
V. Net profit (―-‖ means loss) 498,509,022.06 350,363,717.00
Attributable to owners of the Company 430,694,268.55 316,358,532.13
Minority shareholders’ income 67,814,753.51 34,005,184.87
VI. After-tax net amount of other comprehensive incomes -26,745.69 226,008.76
After-tax net amount of other comprehensive incomes
-26,745.69 226,008.76
attributable to owners of the Company
44
2015 Semi-annual Report of Wuxi Little Swan Company Limited
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes
in investees that cannot be reclassified into gains and losses
under the equity method
(II) Other comprehensive incomes that will be
-26,745.69 226,008.76
reclassified into gains and losses
1. Enjoyable shares in other comprehensive incomes
in investees that will be reclassified into gains and losses under
the equity method
2. Gains and losses on fair value changes of
available-for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
-26,745.69 226,008.76
difference
6. Other
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
VII. Total comprehensive incomes 498,482,276.37 350,589,725.76
Attributable to owners of the Company 430,667,522.86 316,584,540.89
Attributable to minority shareholders 67,814,753.51 34,005,184.87
VIII. Earnings per share
(I) Basic earnings per share 0.68 0.50
(II) Diluted earnings per share 0.68 0.50
4. Income statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2015 Jan.-Jun 2014
I. Total sales 4,508,543,230.27 3,642,700,222.95
Less: cost of sales 3,419,135,539.67 2,718,742,930.62
Business taxes and surcharges 25,391,195.75 21,764,077.70
Distribution expenses 621,942,553.41 518,302,677.11
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Administrative expenses 194,171,028.26 144,963,100.14
Financial costs -5,454,990.37 -4,561,649.19
Impairment loss -1,238,040.83 -5,948,475.57
Add: gain/(loss) from change in fair value (―-‖ means loss) -169,471.35 -7,835,910.00
Gain/(loss) from investment (―-‖ means loss) 43,144,562.43 23,473,873.16
Of which: income form investment on associates and joint
ventures
II. Business profit (―-‖ means loss) 297,571,035.46 265,075,525.30
Add: non-business income 3,372,126.64 3,734,536.38
Of which: gains from non-current asset disposal 198,814.00 378,164.90
Less: non-business expense 3,352,099.47 3,191,532.34
Of which: losses from non-current asset disposal 1,441,396.64 173,442.21
III. Total profit (―-‖ means loss) 297,591,062.63 265,618,529.34
Less: income tax expense 31,160,247.93 38,492,571.05
IV. Net profit (―-‖ means loss) 266,430,814.70 227,125,958.29
V. After-tax net amount of other comprehensive incomes -51,979.20
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes
in investees that cannot be reclassified into gains and losses
under the equity method
(II) Other comprehensive incomes that will be
-51,979.20
reclassified into gains and losses
1. Enjoyable shares in other comprehensive incomes
in investees that will be reclassified into gains and losses under
the equity method
2. Gains and losses on fair value changes of
-51,979.20
available-for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
difference
6. Other
VI. Total comprehensive incomes 266,430,814.70 227,073,979.09
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
VII. Earnings per share
(I) Basic earnings per share 0.42 0.36
(II) Diluted earnings per share 0.42 0.36
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Jun. 2015 Jan.-Jun 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
5,396,428,114.25 3,811,640,189.96
service
Net increase of deposits from customers and dues from
banks
Net increase of loans from the central bank
Net increase of funds borrowed from other financial
institutions
Cash received from premium of original insurance
contracts
Net cash received from reinsurance business
Net increase of deposits of policy holders and investment
fund
Net increase of dispose of the financial assets measured by
fair value with the changes be included in the current gains and
losses
Cash received from interest, handling charges and
commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 32,534,853.37 3,315,534.83
Other cash received relating to operating activities 21,410,402.27 15,703,387.98
Subtotal of cash inflows from operating activities 5,450,373,369.89 3,830,659,112.77
Cash paid for goods and services 2,425,834,978.83 1,682,161,655.09
Net increase of customer lendings and advances
Net increase of funds deposited in the central bank and
amount due from banks
Cash for paying claims of the original insurance contracts
Cash for paying interest, handling charges and
47
2015 Semi-annual Report of Wuxi Little Swan Company Limited
commissions
Cash for paying policy dividends
Cash paid to and for employees 476,015,698.91 378,843,499.77
Various taxes paid 349,459,845.85 332,132,100.43
Other cash payment relating to operating activities 833,793,362.84 612,417,421.65
Subtotal of cash outflows from operating activities 4,085,103,886.43 3,005,554,676.94
Net cash flows from operating activities 1,365,269,483.46 825,104,435.83
II. Cash flows from investing activities:
Cash received from withdrawal of investments 3,091,000,000.00 4,001,000,000.00
Cash received from return on investments 71,943,969.06 56,358,222.89
Net cash received from disposal of fixed assets, intangible
32,937.80 264,120.00
assets 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 3,162,976,906.86 4,057,622,342.89
Cash paid to acquire fixed assets, intangible assets and
39,130,538.80 28,747,550.40
other long-term assets
Cash paid for investment 4,631,200,000.00 4,163,370,000.00
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 4,670,330,538.80 4,192,117,550.40
Net cash flows from investing activities -1,507,353,631.94 -134,495,207.51
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received from borrowings 114,978,442.79 50,117,340.00
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 114,978,442.79 50,117,340.00
Repayment of borrowings 99,744,320.47
Cash paid for interest expenses and distribution of
285,454,625.28 184,308,280.03
dividends or profit
48
2015 Semi-annual Report of Wuxi Little Swan Company Limited
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 385,198,945.75 184,308,280.03
Net cash flows from financing activities -270,220,502.96 -134,190,940.03
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -412,304,651.44 556,418,288.29
Add: Opening balance of cash and cash equivalents 1,516,739,804.86 1,558,204,866.53
VI. Closing balance of cash and cash equivalents 1,104,435,153.42 2,114,623,154.82
6. Cash flow statement of the Company
Unit: RMB Yuan
Item Jan.-Jun. 2015 Jan.-Jun 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of
3,089,800,740.60 2,579,939,149.03
service
Tax refunds received 4,291,106.27
Other cash received relating to operating activities 8,399,689.06 9,230,784.56
Subtotal of cash inflows from operating activities 3,102,491,535.93 2,589,169,933.59
Cash paid for goods and services 1,277,647,053.39 1,106,675,777.67
Cash paid to and for employees 317,513,278.75 244,060,695.70
Various taxes paid 213,430,780.42 244,269,676.94
Other cash payment relating to operating activities 583,408,996.69 443,271,306.57
Subtotal of cash outflows from operating activities 2,392,000,109.25 2,038,277,456.88
Net cash flows from operating activities 710,491,426.68 550,892,476.71
II. Cash flows from investing activities:
Cash received from retraction of investments 1,985,000,000.00 2,040,000,000.00
Cash received from return on investments 43,268,003.67 31,967,080.07
Net cash received from disposal of fixed assets, intangible
28,497.80
assets and other long-term assets
Net cash received from disposal of subsidiaries or other
38,977.14
business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 2,028,296,501.47 2,072,006,057.21
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Cash paid to acquire fixed assets, intangible assets and
18,704,544.76 13,518,301.57
other long-term assets
Cash paid for investment 2,630,000,000.00 2,013,000,000.00
Net cash paid to acquire subsidiaries and other business
units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 2,648,704,544.76 2,026,518,301.57
Net cash flows from investing activities -620,408,043.29 45,487,755.64
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings 15,234,122.32
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 15,234,122.32
Repayment of borrowings
Cash paid for interest expenses and distribution of
284,619,493.79 184,964,713.60
dividends or profit
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 284,619,493.79 184,964,713.60
Net cash flows from financing activities -269,385,371.47 -184,964,713.60
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -179,301,988.08 411,415,518.75
Add: Opening balance of cash and cash equivalents 600,231,105.51 882,413,120.18
VI. Closing balance of cash and cash equivalents 420,929,117.43 1,293,828,638.93
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
7. Consolidated Statement of Changes in Owners’ Equity
Jan.-Jun. 2015
Unit: RMB Yuan
Jan.-Jun. 2015
Equity attributable to owners of the Company
Other equity
instruments
Item Perp Less: Specif Gener Total owners’
Pref Other Minority interests
etual treasu ic al risk equity
Share capital erre Capital reserve comprehensiv Surplus reserve Retained profit
capit Othe ry reserv reserv
d e income
al r stock e e
shar
secu
es
rities
I. Balance at the end of the previous
632,487,764.00 1,139,956,336.03 -3,449,689.57 332,594,722.29 2,326,392,979.58 716,713,982.38 5,144,696,094.71
year
Add: change of accounting policy
Correction of errors in previous
periods
Business combination under the
same control
Other
II. Balance at the period-begin 632,487,764.00 1,139,956,336.03 -3,449,689.57 332,594,722.29 2,326,392,979.58 716,713,982.38 5,144,696,094.71
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
III. Increase/ decrease in the period
6,851,284.89 -26,745.69 146,074,774.75 68,279,134.09 221,178,448.04
(―-‖ means decrease)
(I) Total amount of the
-26,745.69 430,694,268.55 67,814,753.51 498,482,276.37
comprehensive income
(II) Capital paid in and reduced by
6,851,284.89 464,380.58 7,315,665.47
owners
1. Common shares invested by the
shareholders
2. Capital invested by the owners of
other equity instruments
3. Amounts of share-based payments
6,851,284.89 464,380.58 7,315,665.47
recognized in owners’ equity
4. Others
(III) Profit distribution -284,619,493.80 -284,619,493.80
1. Appropriations to surplus reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-284,619,493.80 -284,619,493.80
shareholders)
4. Other
(IV) Internal carry-forward of
owners’ equity
1. New increase of capital (or share
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other
IV. Closing balance 632,487,764.00 1,146,807,620.92 -3,476,435.26 332,594,722.29 2,472,467,754.33 784,993,116.47 5,365,874,542.75
Jan.-Jun. 2014
Unit: RMB Yuan
Jan.-Jun. 2014
Equity attributable to owners of the Company
Other equity
instruments
Item Less: Specif Minority Total owners’
Pref Perp Other Genera
treasur ic interests equity
Share capital erre etual Capital reserve comprehensiv Surplus reserve l risk Retained profit
Othe y reserv
d capit e income reserve
r stock e
shar al
es secu
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
rities
I. Balance at the end of the previous
632,487,764.00 1,129,250,666.31 -3,379,075.16 290,958,368.49 1,859,579,931.10 625,431,730.92 4,534,329,385.66
year
Add: change of accounting policy
Correction of errors in previous
periods
Business combination under the
same control
Other
II. Balance at the period-begin 632,487,764.00 1,129,250,666.31 -3,379,075.16 290,958,368.49 1,859,579,931.10 625,431,730.92 4,534,329,385.66
III. Increase/ decrease in the period
10,705,669.72 -70,614.41 41,636,353.80 466,813,048.48 91,282,251.46 610,366,709.05
(―-‖ means decrease)
(I) Total amount of the
10,705,669.72 -70,614.41 698,195,731.48 92,630,372.83 790,755,489.90
comprehensive income
(II) Capital paid in and reduced by
-1,348,121.37 9,357,548.35
owners
1. Common shares invested by the
shareholders
2. Capital invested by the owners of
other equity instruments
3. Amounts of share-based payments
10,805,421.89 836,369.32 11,641,791.21
recognized in owners’ equity
4. Others -99,752.17 -2,184,490.69 -2,284,242.86
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(III) Profit distribution 41,636,353.80 -231,382,683.00 -189,746,329.20
1. Appropriations to surplus reserves 41,636,353.80 -41,636,353.80
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-189,746,329.20 -189,746,329.20
shareholders)
4. Other
(IV) 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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other
IV. Closing balance 632,487,764.00 1,139,956,336.03 -3,449,689.57 332,594,722.29 2,326,392,979.58 716,713,982.38 5,144,696,094.71
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
8. Statement of changes in owners’ equity of the Company
Jan.-Jun. 2015
Unit: RMB Yuan
Jan.-Jun. 2015
Other equity instruments
Other
Perpetua Less:
Item compreh Specific Total owners’
Share capital Preferre l capital Capital reserve treasury Surplus reserve Retained profit
Other ensive reserve equity
d shares securitie stock
income
s
I. Balance at the end of the previous year 632,487,764.00 1,300,124,962.20 319,944,578.39 1,887,731,678.84 4,140,288,983.43
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the period-begin 632,487,764.00 1,300,124,962.20 319,944,578.39 1,887,731,678.84 4,140,288,983.43
III. Increase/ decrease in the period (―-‖ means
5,755,786.42 -18,188,679.11 -12,432,892.69
decrease)
(I) Total amount of the comprehensive income 266,430,814.70 266,430,814.70
(II) Capital paid in and reduced by owners 5,755,786.42 5,755,786.42
1. Common shares invested by the shareholders
2. Capital invested by the owners of other equity
instruments
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
3. Amounts of share-based payments recognized
5,755,786.42 5,755,786.42
in owners’ equity
4. Others
(III) Profit distribution -284,619,493.81 -284,619,493.81
1. Appropriations to surplus reserves
2. Appropriations to general risk provisions -284,619,493.81 -284,619,493.81
3. Appropriations to owners (or shareholders)
4. Other
(IV) 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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other 632,487,764.00 1,305,880,748.62 319,944,578.39 1,869,542,999.73 4,127,856,090.74
Jan.-Jun. 2014
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Unit: RMB Yuan
Jan.-Jun. 2014
Other equity instruments
Other
Perpetua Less:
Item compreh Specific Total owners’
Share capital Preferre l capital Capital reserve treasury Surplus reserve Retained profit
Other ensive reserve equity
d shares securitie stock
income
s
I. Balance at the end of the previous year 632,487,764.00 1,291,302,721.54 278,308,224.59 1,702,750,823.87 3,904,849,534.00
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the period-begin 632,487,764.00 1,291,302,721.54 278,308,224.59 1,702,750,823.87 3,904,849,534.00
III. Increase/ decrease in the period (―-‖ means
8,822,240.66 41,636,353.80 184,980,854.97 235,439,449.43
decrease)
(I) Total amount of the comprehensive income 416,363,537.97 416,363,537.97
(II) Capital paid in and reduced by owners 8,822,240.66 8,822,240.66
1. Common shares invested by the shareholders
2. Capital invested by the owners of other equity
instruments
3. Amounts of share-based payments recognized
8,820,742.83 8,820,742.83
in owners’ equity
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
4. Others 1,497.83 1,497.83
(III) Profit distribution 41,636,353.80 -231,382,683.00 -189,746,329.20
1. Appropriations to surplus reserves 41,636,353.80 -41,636,353.80
2. Appropriations to general risk provisions -189,746,329.20 -189,746,329.20
3. Appropriations to owners (or shareholders)
4. Other
(IV) 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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other 632,487,764.00 1,300,124,962.20 319,944,578.39 1,887,731,678.84 4,140,288,983.43
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2015 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 an 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 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.
After approved by CSRC through [2013]1014 document, Midea Group had split off as well as consolidated and
combined the original controller GD Midea Holding on 18 Sep. 2013. After the consolidation and combination,
Midea Group inherited and undertook the whole rights and obligations of the whole assets and liabilities etc of
GD Midea Holding as the reminder enterprise and had finished the relevant registration procedures of shares
transfer on 31 Dec. 2013.
As of 30 Jun. 2015, registered capital of the company are 632,487,764 shares, among which the restricted
exchange-traded A shares are 3,705,115 shares, accounting for 0.59% of the whole shares; the unrestricted
exchange-traded A shares are 437,746,777 shares, accounting for 69.21%; and the unrestricted exchange-traded B
shares are 191,035,872 shares, account for 30.20% 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
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
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 4
Aug. 2015.
IV. Basis for the preparation of financial statements
1. Preparation basis
With the going-concern assumption as the basis and based on transactions and other events that actually occurred,
the Company prepared financial statements in accordance with and other various of the specific accounting standards, application guides, rules and
explanations as well as the Rules for Preparation Convention of Disclosure of Public Providing Companies No.15
– General Regulations for Financial Reporting (revised in 2014) by China Securities Regulatory Commission.
In accordance with relevant provisions of the Accounting Standards for Business Enterprises, the Group adopted
the accrual basis in accounting. Except for some financial instruments, where impairment occurred on an asset, an
impairment reserve was withdrawn accordingly pursuant to relevant requirements.
2. Continuation
The current operation situation of the Company was normal and after comprehensively appraised the acquired
information, came out that there was no any factor that obviously influenced the continuation of the Company
within 12 months since the end of the reporting period and estimated that the operation activities of the Company
would continue in future 12 months. The financial report compiled based on the continuation.
V. Important accounting policies and estimations
Indication of specific accounting policies and estimations: the Company and its subsidiaries mainly engaged in the
production and sales of the household electrical appliances. The Company and its subsidiaries according to the
actual production and operation characteristics and the rules of the relevant ASBE, formulated certain specific
accounting policies and accounting estimations, which mainly reflected in the withdrawal methods of the bad debt
provision of the accounts receivables (Notes V. 10), pricing methods of the inventories (Notes V. 11),
depreciation of the fixed assets and the amortization of the intangible assets (Notes V. 14/17) and so on.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
1. 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.
2. Accounting period
The company’s accounting year is from 1st January to 31st December for each calendar year.
3. Fiscal period
The fiscal periods of an enterprise includes fiscal years and fiscal periods shorter than a complete fiscal year. The
fiscal period of the Company is 12 months.
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
A business combination under the same control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or the same parties both before and after the business
combination and on which the control is not temporary.
For the merger of enterprises under the same control, if the consideration of the merging enterprise is that it makes
payment in cash, transfers non-cash assets or bear its debts, it shall, on the date of merger, regard the share of the
book value among the consolidated financial statement of the ultimate control party of the owner's equity of the
merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of
the long-term equity investment and the payment in cash, non-cash assets transferred as well as the book value of
the debts borne by the merging party shall offset against the capital reserve. If the capital reserve is insufficient to
dilute, the retained earnings shall be adjusted.
If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger,
regard the share of the book value among the consolidated financial statement of the ultimate control party of the
owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The total face value
of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the
long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the
capital reserve is insufficient to dilute, the retained earnings 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. As for the handing charges, commissions and so on from issuing equity
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
securities or bonds because of the Company combination should deduct the premium revenue of the equity
securities, and if the premium revenue is insufficient to dilute, the retained earnings shall be diluted.
If the Company is able to execute the control of the investees under the same control as a result of additional
investment or other reasons, for the equity investment held before acquiring the control right of the combiner and
the relevant gains and losses, other comprehensive income and other changes of the net assets had recognized
since the later date between the date that acquired the original equity and the date the combining party as well as
the combined party under the same control and the merger date, should respectively dilute the retained earnings or
the current gains and losses during the comparative statement period.
(2) Business combinations not under the same control
A business combination not under the same control is a business combination in which the combining enterprises
are not ultimately controlled by the same party or the same parties both before and after the business combination.
The merger cost of the Company as the purchaser and the net identifiable assets acquired from the merger should
be measured by the fair value on the purchase date. 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, shall be
recorded in the profit and loss of the current period. The direct relevant expenses for executing the enterprise
merger should be recorded in the current gains and losses. The trading expenses for the equity securities or debt
securities issued by the acquirer as the combination consideration shall be recorded into the amount of initial
measurement of the equity securities or debt securities. The difference between the fair value of the paid assets
and the book value of the Company should be recorded in the current gains and losses. The purchase date refers to
the date the purchaser actually acquires the control right of the purchasee.
In a business combination not under same control realized by two or more transactions of exchange, as for the
equity interests that the Company holds in the acquiree before the acquiring date, they shall be re-measured
according to their fair values at the acquiring date; the positive difference between their fair values and carrying
amounts shall be recorded into the investment gains for the period including the acquiring date; as for the equities
held before the purchase date which involved with the other comprehensive income under the equity method
measurement and the changes of other owners’ equities except for the net gains and losses, other comprehensive
income and the profits distribution, the other comprehensive income as well as the changes of other owners’
equities should be transferred current investment revenue that belongs to the purchase date except for the other
comprehensive income cause from the changes of the net liabilities or the net assets owning to the
re-measurement of the defined benefit plans by the investees.
6. Preparation method of consolidated financial statements
The consolidation scope for financial statements is determined on the basis of control and the Company includes
the subsidiaries which own the actual control right into the scope of the consolidated financial statement.
The consolidated financial statements will be subject to the No. 33 Enterprise Accounting Standards –
Consolidated Financial Statement. In preparing the consolidated financial statements, the balance, investment,
transactions and the unrealized profits of all the significant intercompany events will be offset. The parts the
owners’ equities, the current gains and losses and the current comprehensive income of the subsidiaries which not
belongs to the parent company should be separately listed respectively under the items of the owners’ equities
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
among the consolidated balance sheet, under the items of the net profits of the consolidated statement of income
and under the items of the total amount of the comprehensive income. If the current losses burdened by the
minority shareholders of the subsidiaries exceeded the balance formed by the shares enjoyed by the minority
shareholders of the owners’ equities at the period-begin of the subsidiaries, the equities of the minority
shareholders should be diluted.
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 but not adjusted the opening
balance and the comparative amount of the consolidated financial statement; 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.
As for a disposed subsidiary, its operating results and cash flows before the disposal date has been appropriately
included in the consolidated income statement and cash flow statement; and as for subsidiaries disposed in the
current period, the opening items in the consolidated balance sheet are not adjusted.
Where the Company losses control on its original subsidiaries due to disposal of some equity investments or other
reasons, the residual equity interests are re-measured according to the fair value on the date when such control
ceases. The summation of the consideration obtained from the disposal of equity interests and the fair value of the
residual equity interests, minus the difference of the summation of the portion and the goodwill in the original
subsidiary’s net assets and the measured on a continuous basis from the acquisition date that is enjoyable by the
Company according to the original shareholding percentage in the subsidiary, is recorded in investment gains for
the period when the Company’s control on the subsidiary ceases. Other comprehensive incomes in relation to the
equity investment in the original subsidiary or the changes of the other owners’ equities except for the net gains
and losses, other comprehensive income and the profits distributions, should all be transferred into current
investment gains when losing the control right, which except for the other comprehensive income caused from the
changes of the net liabilities or net assets owning to the re-measurement of the defined benefit plans by the
investees. And subsequent measurement is conducted on the residual equity interests according to the No. 2
Accounting Standard for Business Enterprises-Long-term Equity Investments or the No. 22 Accounting Standard
for Business Enterprises-Recognition and Measurement of Financial Instruments.
If the relevant transactions of the Company losses control on its subsidiaries due to disposal of equity investments
belonging to a package deal, should considered each transaction as a transaction that disposes the subsidiaries and
loses the control right and conduct accounting treatment. However, Before losing control, every disposal cost and
corresponding net assets balance of subsidiary of disposal investment are confirmed as other comprehensive
income in consolidated financial statements, which together transferred into the current profits and losses in the
lose of control , when the Group losing control on its subsidiary.
If the relevant transactions of the Company losses control on its subsidiaries due to disposal of equity investments
not belonging to a package deal, before losing the control right, should conduct the accounting treatment on the
relevant policies on partly dispose the equity investment of the subsidiaries under the situation not losing the
control right; conducts the accounting treatment according to the general treatments of disposing the subsidiaries
when losing the control right.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
As for the unrealized gains and losses of the internal transactions from the sales of the assets to the subsidiaries of
the Company, should be offset the ―net profits belongs to the owners of the parent company‖ in full amount. The
unrealized gains and losses of the internal transactions from the sales of the assets to the Company by the
subsidiaries, should be offset with assignment between the ―net profits belongs to the owners of the parent
company‖ and the ―gains and losses of the minority shareholders‖ according to the distribution proportion of the
subsidiaries of the Company. The unrealized gains and losses of the internal transactions from the sales of the
assets between the subsidiaries, should be offset with assignment between the ―net profits belongs to the owners
of the parent company‖ and the ―gains and losses of the minority shareholders‖ according to the distribution
proportion of the subsidiaries of the Company which are the sellers.
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.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(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 translation reserve from the above
translations should be recognized as other comprehensive income and be separatively listed among the
shareholders’ equities. When disposing the fremd business, should transfer the other comprehensive income
related to the fremd business into the disposal of the current gains and losses while the partly disposed portion
should be measured by the disposal proportion. 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
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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
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.
The equity investment held by the Company that without any control, jointly control or significant influence on
the investees (which means below the significant influences) and without any quotation in the active market as
well as the fair value could not be reliable measured, should be divided as the available-for-sale financial assets
and should be measured by cost.
(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.
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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 who 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.
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.
When it judged that the decrease of fair value of the available-for-sale equity instrument investment is serious and
not temporarily after comprehensive considering relevant factors, it reflected that the available-for-sale equity
instrument investment occurred impairment. Of which, when the fair value lower than its initial investment cost of
more than 50% (including 50%) or the lasting time of the fair value lower than its initial investment cost for more
than 12 months (including 12 months), that indicates there is impairment.
Where an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of the
fair value of the capital reserve which is directly included are transferred out and recorded in the profits and losses
for the current period. The accumulative losses transferred out are the balance obtained from the initially obtained
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cost of the said financial asset after deducting the principals as taken back, the amortized amount, the current fair
value and the impairment loss originally recorded in the profits and losses. Where the impairment loss has been
recognized for an available-for-sale financial asset, if, within the accounting periods thereafter, there is any
objective evidence proving that the value of the said financial asset has been restored and the restoration is
objectively related to the events that occur after the impairment loss was recognized, the originally recognized
impairment loss is reversed. The impairment losses on the available-for-sale equity instrument investments are
reversed and recognized as other comprehensive incomes, and the impairment losses on the available-for-sale
liability instruments are reversed and recorded in the profits and losses for the current period.
10. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made
individually
The accounts receivable whose individual amount accounts for over 10% (including
10%) of accounts receivable balance at the end of this period or amount of the
individual account receivable which is greater than RMB 10 millions (and including
Definition or amount criteria for an account
10 millions); the other receivable whose individual amount accounts for over 10%
receivable with a significant single amount
(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
individually; the Company withdraws provision for impairment loss for the amount
accounts receivable with a significant single
which is measured as the difference between the asset's carrying amount and the
amount
present value of estimated future cash flows.
(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
Name of portfolios Bad debt provision method
Group 1: Aging group Aging analysis
Group 2: Accounts receivable within the scope of
Other methods
consolidated statements
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Inapplicable
Provision rate for Accounts
Aging Provision rate for Other Receivables
Receivable
Within 1 year (including 1 year) 5.00% 5.00%
1-2 years 10.00% 10.00%
2-3 years 30.00% 30.00%
3-4 years 50.00% 50.00%
4-5 years 50.00% 50.00%
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Over 5 years 100.00% 100.00%
In the groups, those adopting balance percentage method to withdraw bad debt provision:
□Applicable √Inapplicable
In the groups, those adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
independently
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 difference
Withdrawal method
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
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
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of inventories, cost and net realizable value are determined based on categories of inventories.
(4) Inventory system of inventories
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
(1) Low-value consumption goods
Amortization method: one time method
(2) 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 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 the intermediary fees such as the audit fee, legal service
charge, evaluation fee and other relevant management expenses, 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. Long-term equity investment acquired by paying cash, the initial investment cost should be recognized
accroding to the actual paid purchase price.
B. The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair
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value of the equity securities issued.
C. 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.
D. 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.
(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.
After the Company obtains a long-term equity investment, it shall, in accordance with the attributable share of the
net profits or losses of the invested entity, recognize the investment profits or losses and adjust the book value of the
long-term equity investment at the same time；the Company shall, in the light of the profits or cash dividends
declared to distribute by the invested entity, calculate the proportion it shall obtain, and shall reduce the book value
of the long-term equity investment correspondingly; where any change is made to the owner's equity other than the
net profits and losses, the other comprehensive income and profits distributions of the invested entity, the book
value of the long-term equity investment shall be adjusted and be included in the owner's equity.
The Company shall, on the ground of the fair value of all identifiable assets of the invested entity when it obtains the
investment, recognize the attributable share of the net profits and losses of the invested entity after it adjusts the net
profits of the invested entity.
If the accounting policies and accounting periods adopted by the invested entity are different from those adopted by
the Company, an adjustment shall be made to the financial statements of the invested entity in accordance with the
accounting policies and accounting periods of the investing enterprise and recognize the investment profits or losses
as well as the other comprehensive income and so on.
The Company shall recognize the net losses of the invested enterprise in the following order for processing: firstly,
dilutes the book value of the long-term equity investment.Secondly, if the book value of the long-term equity
investment was insufficient to be diluted, should continue to recognize the investment losses not exceeds the book
value of the long-term equity which substantially formed the net investment on the investees and dilutes the book
value such as the long-term accounts receivable. Lastly, through the above disposal, if the Company has any liability
of undertaking extra losses according to the investment contracts or the protocol agreements, then the estimated
debts shall be recognized in compliance with projected undertaken duties and recorded into gains and losses of
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investment at the current period. If the invested entity realized net profits in subsequent period, then the Group shall
resume recognition of the shared amount of incomes after making up unrecognized shared amount of losses with the
shared amount incomes.
During the preparation of consolidated financial statements, capital reserves shall be adjusted in light of balance
between long-term equity investments, which are newly increased because of the purchase of minority stakes, and
the share of net assets of subsidiaries, which should be enjoyed and has been sustainably calculated since the
acquisition date (or merger date) in accordance with newly increased shareholding proportion. Retained earnings
shall be adjusted if capital reserves are insufficient to dilute; under the circumstance of keeping control power, the
Company shall partially dispose long-term equity investments, and the balance between the disposed price and the
enjoyed net assets of subsidiaries correspondent to disposed long-term equity investment shall be recorded into
shareholders’ equity.
As for disposal of long-term equity investment under other circumstances, the balance between book value of
disposed equity and its actually acquired price shall be included into profit or loss in the period in which it is
incurred.
As for long-term equity investments with the employment of equity method, if the retained equity after disposed is
still measured by equity method, the part of the other comprehensive income which originally be recorded in the
shareholders’ equities should according to the corresponding proportion and bases on the same basic of the
investees directly dispose the relevant assets or the liabilities for conducting accounting treatment. The owners’
equities recognized from the changes of the other owners’ equities except for the net gains and losses, other
comprehensive income and profits distribution of the investees, should be transferred in the current gains and
losses according to the proportion.
For the long-term equity investment which adopts the cost method of measurement, if the remained equity still
adopt the cost method, the other comprehensive income recognized owning to adopting the equity method for
measurement or the recognition and measurement standards of financial instrument before acquiring the control of
the investees, should adopt the same basis of the accounting disposal of the relevant assets or liabilities directly
disposed by the investees and should be carried forward into the current gains and losses according to the
proportion; the changes of the other owners’ equity except for the net gains and losses, other comprehensive
income and the profits distribution among the net assets of the investees which recognized by adopting the equity
method for measurement, should be carried forward into the current gains and losses according to the proportion.
For those the Company lost the control of the investees by disposing part of the equity investment as well as the
remained equity after disposal could execute joint control or significant influences on the investees, should change
to measure by equity method when compiling the individual financial statement and should adjust the
measurement of the remained equity to equity method as adopted since the time acquired; if the remained equity
after disposal could not execute joint control or significant influences on the investees, should change the
accounting disposal according to the relevant regulations of the recognition and measurement standards of
financial instrument, and its difference between the fair value and book value on the date lose the control right
should be included in the current gains and losses. For the other comprehensive income recognized by adopting
equity method for measurement or the recognition and measurement standards of financial instrument before the
Company acquired the control of the investees, should execute the accounting disposal by adopting the same basis
of the accounting disposal of the relevant assets or liabilities directly disposed by the investees when lose the
control of them, while the changes of the other owners’ equity except for the net gains and losses, other
comprehensive income and the profits distribution among the net assets of the investees which recognized by
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adopting the equity method for measurement, should be carried forward into the current gains and losses
according to the proportion. Of which, for the disposed remained equity which adopted the equity method for
measurement, the other comprehensive income and the other owners’ equity should be carried forward according
to the proportion; for the disposed remained equity which changed to execute the accounting disposal according to
the recognition and measurement standards of financial instrument, the other comprehensive income and the other
owners’ equity should be carried forward in full amount.
For those the Company lost the control of the investees by disposing part of the equity investment, the disposed
remained equity should change to calculate according to the recognition and measurement standards of financial
instrument, and difference between the fair value and book value on the date lose the control right should be
included in the current gains and losses. For the other comprehensive income recognized from the original equity
investment by adopting the equity method, should execute the accounting disposal by adopting the same basis of
the accounting disposal of the relevant assets or liabilities directly disposed by the investees when terminate the
equity method for measurement, while for the owners’ equity recognized owning to the changes of the other
owner’s equity except for the net gains and losses, other comprehensive income and the profits distribution of the
investees, should be transferred into the current investment income with full amount when terminate adopting the
equity method.
(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 of long-term investment
For the details, please refer to Notes 18 ―Impairment of long-term assets‖ of the chapter.
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).
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14. Fixed assets
(1) Recognition method
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) Depreciation method
Categories Depreciation method Estimated useful life Residual value Annual depreciation rate
Houses & buildings Average method of useful life 20-35 years 5% 2.71-4.75%
Machineries Average method of useful life 10-15 years 5% 6.33-9.50%
Electronic equipment Average method of useful life 3-5 years 5% 19-31.67%
Vehicles Average method of useful life 5 years 5% 19%
Other equipment Average method of useful life 5 years 5% 19%
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
When the fixed assets by leasing of the Company satisfy one or more of the following criteria, which should be
recognized as the as fixed assets by finance lease:
① The ownership of the leased asset is transferred to the Company when the term of lease expires.
② The lessee 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 Company, 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 assets by finance lease, on the lease beginning date, a lessee 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 by adopting the effective interest rate method.
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In calculating the depreciation of a leased asset, the Company adopts a depreciation policy for leased assets
consistent with that for depreciable assets which are owned by the lessee. If it is reasonable to be certain that the
lessee will obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully
depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the
leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the
lease term or its useful life.
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
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
For the details, please refer to Notes 18 ―Impairment of long-term assets‖ of the chapter.
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.
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(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) 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, useful life, impairment test
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 and as the
difference between the book value of the debt restructuring and the fair value of the intangible assets for debt
should be recorded in the current gains and losses.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
② Estimated useful life of intangible assets with limited useful life
Item Estimated useful life Amortization method
Land usage right Beneficial years Straight-line method
Non-patented technology Years stimulated in contract or beneficial years Straight-line method
③ Impairment provision of intangible assets
For the details of the impairment test method of the intangible assets, please refer to Notes III. 18 ―Impairment of
long-term assets‖.
(2) Accounting policies of the internal R&D expenses
① 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.
② 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:
a. Completing the intangible asset in order to enable it to be used or sold or technically feasible;
b. Having the intention to complete the intangible asset and use or sale;
c. 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;
d. 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.
e. 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.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
18. Impairment of long-term assets
Long-term assets such as the long-term equity investment, investment property measured by cost mode, fixed
assets, construction in progress and intangible assets, if the impairment of assets has probably occurred on the
balance sheet date, should be executed impairment test. If the result of the impairment test indicates that the
recoverable amount of the assets lower than the book value, should be withdrawn impairment provision according
to the difference and be recorded in the impairment losses. The recoverable amount shall be determined in light of
the higher one of the net amount of the fair value of the assets minus the disposal expenses and the current value
of the expected future cash flow of the assets. Asset depreciation reserves should be calculated on the basis of
single Assets. If it is difficult to predict the recoverable amounts for single assets, recoverable amounts should be
determined according to the belonging asset group. Asset group is the minimum asset combination producing cash
flow independently.
For the intangible assets with uncertain goodwill and useful life as well as the intangible assets which had not
reached the available state, no matter whether the impairment occurs or not, should be executed impairment test
every year.
In impairment test, book value of the business reputation in financial report should be shared to beneficial asset
group and asset group combination in collaboration of business merger. It is shown in the test that if recoverable
amounts of shared business reputation asset group or asset group combination are lower than book value, it should
determine the impairment loss. Impairment loss amount should firstly be deducted and shared to the book value of
business reputation of asset group or asset group combination, then deduct book value of all assets according to
proportions of other book value of above assets in asset group or asset group combination except business
reputation.
After the asset impairment loss is determined, recoverable value amounts would not be returned in future.
19. 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.
20. Payroll
(1) Accounting treatment of short-term compensation
During the accounting period that the Company providing the service for the employees, the actual occurred
short-term compensation should be recognized as liabilities and be recorded in the current gains and losses except
for those be required by other ASBE or be allowed to be recorded in the assets cost; the occurred employee
services and benefits, should be recorded in the current gains and losses or the relevant assets cost according to the
actual occur amount when actually occurred. If the employee services and benefits are the non-monetary benefits,
should be measured according to the fair value; during the accounting period that the service workers providing
the service for the Company, the social insurance charges such as the medical insurance premiums, the industrial
injury insurance premiums, the birth insurance premiums and the housing funds the enterprise pays for the
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
employees, as well as the labor union expenditures and personnel education funds withdrawn according to the
rules, should be measured and confirmed the corresponding amount of the employee compensation according to
the specified withdraw basis and the withdraw proportion, and should confirm the corresponding liabilities that
record which in the current gains and losses or the relevant assets cost.
(2) Accounting treatment of the welfare after demission
Defined contribution plans: the Company pays the basic endowment insurance and the unemployment insurance
for the employees according to the relevant regulations of the local government, and during the accounting period
the service workers providing service for the Company, should calculate the payable amount according to the
cardinal number and proportion of the payment specified by the local authority and should recognize which as the
liabilities as well as record in the current gains and losses or the relevant assets cost.
(3) Accounting treatment of the demission welfare
When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the
layoff proposal, or when the Company is recognizing the costs or expenses (the earlier one between the two)
related to the reorganization of paying the demission welfare, should recognize the liabilities of the employee
compensation from the demission welfare and record which in the current gains and losses.
21. Estimated liabilities
(1) Criteria of estimated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied,
they are recognized as estimated liability in the balance sheet:
① The 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.
22. Share-based payment
(1) Categories of share-based payment
Share-based payment is divided into payment based on equity and cash.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(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 valuation technique, including referring to the prices of the market trade used recently by all parties
who know well of the situation and trade by voluntary, referring to the recently fair value of other financial
instruments which are essentially the same, discount cash flow method and options pricing model etc.
(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.
(4) Relevant accounting treatment of executing, revising and terminating the share-based payment plans
① The equity-settled share-based payments
As to an equity-settled share-based payment in return for services of employees, if the right may be exercised
immediately after the grant, the fair value of the equity instruments shall, on the date of the grant, be included in
the relevant cost or expense and the capital reserves shall be adjusted accordingly. As to a equity-settled
share-based payment in return for employee services, if the right cannot be exercised until the vesting period
comes to an end or until the prescribed performance conditions are met, then on each balance sheet date within the
vesting period, the services obtained in the current period shall, based on the best estimate of the number of vested
equity instruments, be included in the relevant costs or expenses and the capital reserves at the fair value of the
equities instruments on the date of the grant and the capital reserves shall be adjusted accordingly.
As for the equity-settled share-based payment in return for the service of any other party, if the fair value of the
service of any other party can be measured in a reliable way, should be measured according to the fair value of the
service on the acquisition date by any other service party; if the fair value of the service of any other party can not
be measured in a reliable way, but the fair value of the equity instruments can be measured in a reliable way, the
fair value of the equity instruments on date of the service acquisition shall be included in the relevant costs or
expenses, and the owner's equities shall be increased accordingly.
② The cash-settled share-based payments
As to a cash-settled share-based payment instruments, if the right may be exercised immediately after the grant,
the fair value of the liability undertaken by the enterprise shall, on the date of the grant, be included in the relevant
costs or expenses, and the liabilities shall be increased accordingly. As to a cash-settled share-based payment, if
the right may not be exercised until the vesting period comes to an end or until the specified performance
conditions are met, on each balance sheet date within the vesting period, the services obtained in the current
period shall, based on the best estimate of the information about the exercisable right, be included in the relevant
costs or expenses and the corresponding liabilities at the fair value of the liability undertaken by the enterprise.
③ Revision and termination of share-based payment plans
If the fair value of the granted equity instrument increases after the revision, it shall recognize the increase of the
service gained according to the increase of the fair value of equity instrument; if the quantity of the granted equity
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
instrument increases after the revision, it shall recognize the increase of the service gained according to the
increase of the fair value of equity instrument; if the Company revises the vesting conditions according to the
methods that in favor of the employees, when the Company is executing the vesting conditions, should consider
the vesting conditions after the revision.
If the fair value of the granted equity instrument decreased after the revision, the Company will continue to
recognize the amount of the service gained based on the fair value on the grant date of the equity instrument but
not consider the decrease of the fair value of the equity instrument; if the quantity of the granted equity instrument
decreased after the revision, the Company will reduce the cancellation of part of the granted equity instrument; if
the Company revises the vesting conditions not in favor of the employees, the Company will not consider the
vesting conditions when handling the vesting conditions.
If the Company cancels the granted equity instrument during the waiting period or settles the granted equity
instrument (except for those be cancelled owning to not satisfy the vesting conditions), should take the
cancellation or settlement as the accelerated vesting for managing and immediately recognize the originally
amount recognized during the retained waiting period.
23. Revenue
(1) Criteria for recognition time of revenue from sale of goods
When all of the following conditions are satisfied, the sales of goods are recognized as sales income according to
the contract amount received or receivable from the buyer:
① Main risks and rewards attached to the ownership of the goods have been transferred to the buyer;
② No succeeding power of administration or effective control is reserved which are usually attached to
ownership;
③ Amount received can be reliably measured;
④ Related financial benefit may inflow to the Company;
⑤ Relative costs occurred or will occur, can be reliably measured;
⑥ When collection of contract payment is by differed way, and practically with financing characters, sales
income shall be recognized at the fair value of the receivable contract amount.
(2) Recognition basis of revenue from transferring use rights of assets
Income is recognized when the financial benefit in connection with the demising of asset using rights was
received and the amount can be reliably measured.
(3) Recognition basis of revenue from rendering labor services
Revenue from rendering labor 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 labor services can be determined.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(4) Recognition basis and method for the schedule of contracted project when recognizing the revenue from
providing labor 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.
24. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
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.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The government subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances
as follows:
① Those subsidies used for compensating the related future expenses or losses of the Company shall be
recognized as deferred income and shall included in the current profits and losses during the period when the
relevant expenses are recognized.
② Those subsidies used for compensating the related expenses or losses incurred to the Company shall be
directly included in the current profits and losses.
25. Deferred income tax assets/deferred income tax 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.
For recognizing the deferred income tax assets, which should be limited to the taxable amount acquired probably
for deducting the deductible temporary difference. 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.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(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.
The special situation of not recognizing the deferred income tax assets or the deferred income tax liabilities
including: the initial recognition of the goodwill; the other transactions or events occur neither influence the
accounting profits nor influence the taxable amount (or the deductible losses) except for the enterprise merger.
26. Lease
(1) Accounting treatment of operating lease
The rent expenses from operating leases shall be recorded by the Company which as the leasee in the relevant
asset costs or the profits and losses of the current period by using the straight-line method over each period of the
lease term. The initial direct costs shall be directly recognized as the profits and losses of the current period. The
contingent rents shall be recorded into the profits and losses of the current period in which they actually arise.
The rent incomes from operating leases shall be recognized as the profits and losses of the current period by using
the straight-line method over each period of the lease term when the Company is the leasor. The initial direct costs
except for those of large amount which shall be capitalized when incurred and be recorded in the gains and losses
by stages, the rest should be recorded into current profits and losses. The contingent rents shall be recorded into
the profits and losses of the current period in which they actually arise.
(2) Accounting treatments of financial lease
Assets under finance rent-in: 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 Company amortizes the unrecognized
leasing fees by adopting the effective interest method during the assets leasing period and record which in the
financial expenses. The occurred initial direct expenses should be recorded in the leased assets value.
Assets under finance rent-out: on the renting beginning date,the Company recognizes the unrealized financing
income from the difference between the sum of the finance lease receivable and the unguaranteed residual value
and the current value and recognizes which as the rental income during each period when receiving the rent in the
future. The initial direct expenses occurred in the Company that related to the renting transactions should be
recorded in the initial measurement of the finance lease receivable and reduce the amount of the revenue
recognized during the renting period.
27. Other significant accounting policies and accounting estimates
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
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
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.
28. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable √ Inapplicable
(2) Change of main accounting estimates
□ Applicable √ Inapplicable
VI. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
Balance of output tax of taxation revenue after
VAT 17%
deducting input tax.
Business tax Taxation revenue 5%
Urban maintenance and construction tax Payable circulating tax amount 7%
Enterprise income tax Payable income tax amount 25% or 15%
Education surtax Payable circulating tax amount 5%
Flood Control Security Fund Operating revenue 0.1% or 0.06%
Levee fee Circulating tax amount 2%
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
2. Tax preference
The Company and its subsidiaries Wuxi Little Swan GE Co., Ltd., Wuxi Filin Electronics Co., Ltd. and Hefei
Midea Washing Machine Co., Ltd. got ―High Technology Enterprises Certificate‖ respectively in March 2009,
March 2009, May 2009 and Jul. 2014 with certificate number respectively of GR200932000077,
GR200932000078, GR200932000397 and GR201434000147. Of which, the Company and its subsidiaries Wuxi
Little Swan GE Co., Ltd. and Wuxi Filin Electronics Co., Ltd. have expired 3 years and passed the reexamination,
obtaining reexamination certificates respectively in Jun. 2012, May 2012 and Aug. 2012 with certificate number
respectively of GF201232000096, GF201232000077 and GF201232000673. The reexamination certificates of the
above three companies will expire at the end of Y2015, and had applied for new high-tech enterprise again, which
was in the approval procedure. Each index of the Company was met with the application standards, so according
to the 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, Wuxi Little Swan GE Co., Ltd., Wuxi Filin
Electronics Co., Ltd. and Hefei Midea Washing Machine Co., Ltd. were all approved to enjoy income tax rate
15%.
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Item Closing balance Opening balance
Cash on hand 8,158.18 8,158.18
Bank deposits 2,744,426,995.23 2,996,731,646.68
Other monetary funds 72,538,190.64 63,175,151.35
Total 2,816,973,344.05 3,059,914,956.21
Of which: total amount of the accounts deposited abroad 30,305,830.74 30,358,441.79
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Unit: RMB Yuan
Item Closing balance Opening balance
Trading financial assets 0.00 248,907.75
Total 0.00 248,907.75
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
3. Notes receivable
(1) Notes receivable listed by category
Unit: RMB Yuan
Item Closing balance Opening balance
Bank acceptance bill 2,055,783,435.17 3,147,153,535.61
Total 2,055,783,435.17 3,147,153,535.61
(2) Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
Unit: RMB Yuan
Amount of recognition termination at the Amount of not terminated recognition at the
Item
period-end period-end
Bank acceptance bill 1,807,528,635.15
Total 1,807,528,635.15
4. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB Yuan
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdr Withdr
Propor awal Book value Propor awal Book value
Amount Amount Amount Amount
tion propor tion propor
tion tion
Accounts
receivable
withdrawn
bad debt
provision 889,179,283 99% 44,475,193 5% 844,704,090 901,464,563 99% 45,121,333 5% 856,343,230
according to
credit risks
characteristic
s
Accounts
receivable 11,006,018 1% 11,006,018 100 % 12,059,453 1% 12,059,453 100%
with
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
insignificant
single
amount for
which bad
debt
provision
separately
accrued
Total 900,185,301 100 % 55,481,211 6% 844,704,090 913,524,016 100% 57,180,786 6% 856,343,230
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Inapplicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Subtotal within 1 year 889,018,025.60 44,450,901.28 5.00%
1 to 2 years 120,426.39 12,042.64 10.00%
2 to 3 years 40,830.36 12,249.11 30.00%
3 to 4 years 0.36 0.18 50.00%
4 to 5 years 0.36 0.18 50.00%
Over 5 years 0.00 0.00
Total 889,179,283.07 44,475,193.39 5.00%
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB -987,480.11; the
amount of the reversed or collected part during the reporting period was of RMB 341,340.00.
Of which the significant amount of the reversed or collected part during the reporting period was of RMB 000:
Unit: RMB Yuan
Name of the units Reversed or collected amount Method
Chongqing Zhishang Real Estate Development Co., Ltd. 73,000.00 Recovering the money
CNPEC 168,340.00 Recovering the money
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Hunan Huitang Hot Spring Huatian City Real Estate Co., Ltd. 100,000.00 Recovering the money
Total 341,340.00 --
(3) The actual write-off accounts receivable
Unit: RMB Yuan
Item Amount
Actual write-off accounts receivable 712,094.43
Of which the significant actual write-off accounts receivable:
Unit: RMB Yuan
Whether
occurred from
Name of the units Nature Amount Reason Process
the related
transactions
Resolution of
Goods Difficult to
Jiangyin Changyi Auto Parts Co., Ltd. 240,000.00 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
Hisense (Zhejiang) Air Conditioner Co., Ltd. 100,012.74 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
AVEST 316,184.64 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
WEST INDIA MERCANTILE 23,826.77 Board of No
payment withdraw
Directors
Resolution of
MOHAMMAD TAGHI NAYEB HABIB Goods Difficult to
13,606.39 Board of No
TRADING payment withdraw
Directors
Resolution of
Goods Difficult to
PKM GMBH & CO. KG 6,990.34 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
AL-GHAITH TRADING CO. 3,510.23 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
MCT CONSTRUCTION MATERIALS SDN BHD 1,620.49 Board of No
payment withdraw
Directors
Goods Difficult to Resolution of
MCT CONSTRUCTION MATERIALS SDN BHD 1,262.56 No
payment withdraw Board of
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Directors
Resolution of
Goods Difficult to
WHIRLPOOL CHILE LIMITADA 992.32 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
AL-GHAITH TRADING CO. 952.26 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
EURO TECH DESIGN 917.85 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
AIR FRIOD 789.35 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
LEANVAL S.A. 642.50 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
KIRIAZI 414.26 Board of No
payment withdraw
Directors
Resolution of
Goods Difficult to
OSUN 277.50 Board of No
payment withdraw
Directors
Resolution of
GODREJ & BOYCE MANUFACTURING Goods Difficult to
94.23 Board of No
COMPANY LIMITED payment withdraw
Directors
Total -- 712,094.43 -- -- --
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Aging Proportion of the
Closing balance
total year end
Name of units Nature Closing balance of the bad debt
balance of the
provision
accounts receivable
Midea Electric Trading (Singapore) Co. Pte. Goods
273,241,410.46 Within 1 year 30.35% 13,662,070.52
Ltd. payment
Suning Yunshang Group Co., Ltd. Goods
88,061,652.50 Within 1 year 9.78% 4,403,082.63
Procurement Center payment
Goods
KRONEN INTERNACIONAL S.A. 23,369,083.50 Within 1 year 2.60% 1,168,454.18
payment
Samsung Electronics Co., Ltd. Goods 20,325,507.12 Within 1 year 2.26% 1,016,275.36
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
payment
Goods
Beijing Jingdong Century Trading Co., Ltd. 17,514,676.58 Within 1 year 1.95% 875,733.83
payment
Total -- 422,512,330.16 -- 46.94% 21,125,616.51
5. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 159,985,549.39 97.13% 139,582,987.93 97.63%
1 to 2 years 4,531,598.18 2.45% 2,448,887.67 1.71%
2 to 3 years 749,177.26 0.41% 925,646.68 0.65%
Over 3 years 20,000.00 0.01% 20,000.00 0.01%
Total 165,286,324.83 -- 142,977,522.28 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
The prepayments age over 1 year mainly were the fixed assets and the prepayment of the mould, which had not be
charged against the provisional estimate payables owning to the not reached bills.
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Nature of the
Name of entity Amount Aging Proportion
account
East China Chemical Commercial Holding Company Limited of
Materials 33,932,000.00 Within 1 year 20.53%
PetroChina Company Limited
Hefei Huitong Energy Saving Material Co., Ltd. Materials 30,477,969.53 Within 1 year 18.44%
Samsung Total Petrochemical Co., Ltd. Materials 6,202,343.35 Within 1 year 3.75%
MIRAMONDI IMPIANTI SPAMIRAMONDI IMPIANTI SPA Materials 5,963,098.50 Within 1 year 3.61%
Yanshan Businees Department of Sinopec Chemical
Materials 5,796,805.00 Within 1 year 3.51%
Commercial Holding Company Limited
Total 82,372,216.38 49.84%
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
6. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
Closing balance Opening balance
Bad debt
Book balance Bad debt provision Book balance
provision
Category
Withdr Withd
Book value Book value
Proportio awal Propor rawal
Amount Amount Amount Amount
n propor tion propor
tion tion
Other accounts
receivable
withdrawn bad
debt provision 31,102,692 100% 3,854,295 12% 27,248,397 39,207,574 100% 4,595,605 12% 34,611,969
according to credit
risks
characteristics
Other accounts
receivable with
insignificant
single amount for 0% 0% 0%
which bad debt
provision
separately accrued
Total 31,102,692 100% 3,854,295 12% 27,248,397 39,207,574 100% 4,595,605 12% 34,611,969
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□ Applicable √ Inapplicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Subtotal within 1 year 13,772,151.63 688,607.58 5.00%
1 to 2 years 13,559,652.11 1,355,965.21 10.00%
2 to 3 years 453,610.50 136,083.15 30.00%
3 to 4 years 2,751,778.06 1,375,889.00 50.00%
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
4 to 5 years 535,500.00 267,750.00 50.00%
Over 5 years 30,000.00 30,000.00 100.00%
Total 31,102,692.31 3,854,294.94 12.39%
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Inapplicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Inapplicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB -337,657.58; the
amount of the reversed or collected part during the reporting period was of RMB 0.00.
(3) The actual write-off other accounts receivable
Of which the significant write-off other accounts receivable:
Unit: RMB Yuan
Whether
occurred from
Name of units Nature Amount Reason Process
the related
transactions
Resolution of
Risk fund of production safety Margin &cash pledge 28,750.00 Irrecoverable board of No
directors
Resolution of
Wuxi Real Estate Administrative Bureau Margin &cash pledge 13,224.12 Irrecoverable board of No
directors
Resolution of
TAIZHOU HUANGYAN ZHIWEI
Margin &cash pledge 269,230.76 Irrecoverable board of No
MOULD CO,LTD,
directors
Foshan Weihansen, Mechanical And Resolution of
Electrical Automation Equipment Co., Margin &cash pledge 39,000.00 Irrecoverable board of No
Ltd. directors
Resolution of
Wuxi Dehai Kemao Co., Ltd. Margin &cash pledge 35,300.00 Irrecoverable board of No
directors
Resolution of
Hoffman/New Yoke, Inc Margin &cash pledge 6,866.00 Irrecoverable board of No
directors
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Resolution of
Wuxi Mingjie Machine Co., Ltd. Margin &cash pledge 5,742.40 Irrecoverable board of No
directors
Resolution of
Zhejiang Aolong Science & Technology
Margin &cash pledge 2,606.80 Irrecoverable board of No
Development Co. , Ltd.
directors
Resolution of
Lapauw Margin &cash pledge 2,232.11 Irrecoverable board of No
directors
Resolution of
Occasional supplier Margin &cash pledge 700.00 Irrecoverable board of No
directors
Total -- 403,652.19 -- -- --
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB Yuan
Nature Closing book balance Opening book balance
Margin &cash pledge 916,650.00 1,198,434.11
Advance money for another 10,248,673.60 6,422,274.77
Subsidies for energy saving & benefit the
12,609,841.10 12,609,841.10
people
Overdue bill 3,502,643.00
Employee loan 7,327,527.61 4,513,767.48
Export rebates 10,960,613.45
Total 31,102,692.31 39,207,573.91
(5) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB Yuan
Proportion of the total Closing
year end balance of balance of bad
Name of units Nature Closing balance Aging
the accounts debt provision
receivable (%)
Subsidies for
energy saving &
Ministry of Industry and Information 12,609,841.10 1-2years 40.54% 1,260,984.11
benefit the
people
Wang Ruiqun Marketing fee 2,178,000.00 1-2 years 7.00% 217,800.00
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Margin &cash
Zhejiang Tmall Technology Co., Ltd. 1,764,450.59 Within 1 years 5.67% 88,222.53
pledge
Leshan NewCentury Advertisement
Marketing fee 941,595.85 3-4years 3.03% 470,797.93
Marketing & Planning Co., Ltd.
Qingdao Zhongyuan Logistics
Logistics cost 751,069.50 3-4years 2.41% 375,534.74
Warehousing Distribution Co., Ltd.
Total -- 18,244,957.04 -- 58.66% 2,413,339.31
7. Inventory
(1) Category of inventory
Unit: RMB Yuan
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 24,857,952.64 1,373,569.84 23,484,382.80 34,295,334.89 3,831,331.14 30,464,003.75
Goods in process 12,821,943.06 12,821,943.06 11,071,881.49 11,071,881.49
Inventory goods 461,186,678.15 39,258,584.91 421,928,093.24 604,929,570.05 40,848,462.04 564,081,108.01
Total 498,866,573.85 40,632,154.75 458,234,419.10 650,296,786.43 44,679,793.18 605,616,993.25
(2) Falling price reserves of inventory
Unit: RMB Yuan
Increased amount Decreased amount
Item Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 3,831,331.14 2,457,761.30 1,373,569.84
Inventory goods 40,848,462.04 1,589,877.13 39,258,584.91
Total 44,679,793.18 4,047,638.43 40,632,154.75
8. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Bank financing 3,285,300,000.00 1,905,100,000.00
Deferred expense-module 20,971,394.04 17,166,993.73
Tax prepaid 8,176,483.22 25,705,220.99
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Total 3,314,447,877.26 1,947,972,214.72
9. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB Yuan
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity
300,300.00 100,300.00 200,000.00 300,300.00 100,300.00 200,000.00
instruments
Measured by fair
100,300.00 100,300.00 100,300.00 100,300.00
value
Measured by cost 200,000.00 200,000.00 200,000.00 200,000.00
Total 300,300.00 100,300.00 200,000.00 300,300.00 100,300.00 200,000.00
10. Long-term equity investment
Unit: RMB Yuan
Increase/decrease
Closing
Withdr
Addi Gains and Adjustm balance
Red Cash awal
tiona losses ent of Chang of
uced bonus or of Closing
Investees Opening balance l recognized other es of Othe impair
inve profits impair balance
inve under the compreh other r ment
stme announced ment
stme equity ensive equity provisi
nt to issue provisi
nt method income on
on
I. Joint ventures
II. Associated enterprises
Guangzhou Attend
2,850,040.45 -123,441.24 2,726,599.21
Logistics Co., Ltd.
Total 2,850,040.45 -123,441.24 2,726,599.21
11. Investment property
(1) Investment property adopted the cost measurement mode
Unit: RMB Yuan
Item Houses and buildings Land use right construction in progress Total
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
I. Original book value
1. Opening balance 88,227,510.86 22,949,959.07 111,177,469.93
2. Increased amount of the
175,803.43 175,803.43
period
(1) Outsourcing 175,803.43 175,803.43
(2) Transfer of inventory\fixed
assets\project under construction
(3) Increased from enterprise
merger
3. Decreased amount of the
period
(1) Disposal
(2) Other transfer
4. Closing balance 88,403,314.29 22,949,959.07 111,353,273.36
II. Accumulative depreciation and
accumulative amortization
1.Opening balance 20,111,084.24 5,261,142.88 25,372,227.12
2. Increased amount of the
539,572.96 1,755,807.74 2,295,380.70
period
(1) Withdrawal or
539,572.96 1,755,807.74 2,295,380.70
amortization
3. Decreased amount of the
period
(1) Disposal
(2) Other transfer
4. Closing balance 20,650,657.20 7,016,950.62 27,667,607.82
III. Depreciation reserves
1. Opening balance 12,576,065.29 12,576,065.29
2. Increased amount of the
period
(1) Withdrawal
3. Decreased amount of the
period
(1) Disposal
(2) Other transfer
4. Closing balance 12,576,065.29 12,576,065.29
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
IV. Book value
1. Closing book value 55,176,591.80 15,933,008.45 71,109,600.25
2. Opening book value 55,540,361.33 17,688,816.19 73,229,177.52
12. Fixed assets
(1) List of fixed assets
Unit: RMB Yuan
Houses and Machinery Electronic Transportation
Item Total
buildings equipment equipment equipment
I. Original book value
1. Opening balance 749,250,686.72 836,947,222.57 101,029,311.62 26,537,578.36 1,713,764,799.27
2. Increased amount of the
3,290,172.43 20,147,484.61 7,217,772.53 76,923.08 30,732,352.65
period
(1) Purchase 3,290,172.43 20,147,484.61 7,217,772.53 76,923.08 30,732,352.65
(2) Transfer of project
under construction
(3) Increased from
enterprise merger
3. Decreased amount of the
27,587,207.10 9,211,423.97 1,806,794.60 352,538.48 38,957,964.15
period
(1) Disposal or scrap 27,587,207.10 9,211,423.97 1,806,794.60 352,538.48 38,957,964.15
4. Closing balance 724,953,652.05 847,883,283.21 106,440,289.55 26,261,962.96 1,705,539,187.77
II. Accumulative depreciation
1.Opening balance 159,354,270.53 377,215,896.11 73,259,754.43 20,681,795.73 630,511,716.80
2. Increased amount of the
10,618,325.25 36,382,072.84 6,740,050.45 1,574,282.32 55,314,730.86
period
(1) Withdrawal 10,618,325.25 36,382,072.84 6,740,050.45 1,574,282.32 55,314,730.86
3. Decreased amount of the
17,829,974.32 3,638,849.71 1,566,731.33 322,587.93 23,358,143.29
period
(1) Disposal or scrap 17,829,974.32 3,638,849.71 1,566,731.33 322,587.93 23,358,143.29
4. Closing balance 152,142,621.46 409,959,119.24 78,433,073.55 21,933,490.12 662,468,304.37
III. Depreciation reserves
1.Opening balance 3,918,452.47 13,200,786.02 284,488.39 28,456.94 17,432,183.82
2. Increased amount of the
period
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(1) Withdrawal
3. Decreased amount of the
304,204.21 92,233.05 4,105.44 400,542.70
period
(1) Disposal or scrap 304,204.21 92,233.05 4,105.44 400,542.70
4. Closing balance 3,918,452.47 12,896,581.81 192,255.34 24,351.50 17,031,641.12
IV. Book value
1. Closing book value 568,892,578.12 425,027,582.16 27,814,960.66 4,304,121.34 1,026,039,242.28
2. Opening book value 585,977,963.72 446,530,540.44 27,485,068.80 5,827,325.69 1,065,820,898.65
13. Intangible assets
(1) Information
Unit: RMB Yuan
Item Land use right Patent Non-patents Other Total
I. Total original book value 242,666,890.39 1,992,000.00 1,395,014.56 246,053,904.95
1. Opening balance
2. Increase in the
reporting period
(1) Purchase
(2) Internal R &D
(3) Increase from
enterprise combination
3. Decrease in the
reporting period
(1) Purchase
4. Closing balance 242,666,890.39 1,992,000.00 1,395,014.56 246,053,904.95
II. Total accrued
amortization
1. Opening balance 39,906,312.69 1,992,000.00 1,395,014.56 43,293,327.25
2. Increase in the
2,619,476.35 2,619,476.35
reporting period
(1) Withdrawal 2,619,476.35 2,619,476.35
3. Decrease in the
reporting period
(1) Disposal
4. Closing balance 42,525,789.04 1,992,000.00 1,395,014.56 45,912,803.60
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
III. Total impairment
provision
1. Opening balance
2. Increase in the
reporting period
(1) Withdrawal
3. Decrease in the
reporting period
(1) Disposal
4. Closing balance
IV. Total book value of
intangible assets
1. Book value of the
200,141,101.35 200,141,101.35
period-end
2. Book value of the
202,760,577.70 202,760,577.70
period-begin
14. Long-term unamortized expenses
Unit: RMB Yuan
Item Opening balance Increase Amortization amount Decrease Closing balance
Module 489,387.55 1,212,820.56 1,702,208.11 0.00
IT consultant expense 1,362,590.60 210,000.00 435,811.17 1,136,779.43
Renovation costs 5,232,530.68 876,819.72 4,355,710.96
Total 1,851,978.15 6,655,351.24 3,014,839.00 5,492,490.39
Other notes
15. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income
difference assets difference tax assets
Assets impairment provision 104,773,439.90 15,716,015.98 111,660,322.99 16,749,048.47
Internal unrealized profit 38,927,912.29 5,839,186.85 47,563,017.07 7,134,452.56
Remuneration and dismiss 33,505,487.09 5,025,823.06 36,765,633.21 5,514,844.98
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
expense
Withdrawal expense 1,415,630,752.98 212,344,612.96 1,353,081,356.67 202,962,203.50
Estimated liabilities 9,773,637.38 1,466,045.61 9,960,830.74 1,494,124.61
Deferred income (government
413,800.00 62,070.00 465,400.00 69,810.00
subsidy)
Investment differences 8,782,955.88 1,317,443.38 8,782,955.88 1,317,443.38
Total 1,611,807,985.52 241,771,197.84 1,568,279,516.56 235,241,927.50
(2) Deferred income tax liabilities had not been off-set
Unit: RMB Yuan
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Valuation of tradable financial
248,907.75 37,336.16
instruments
Total 248,907.75 37,336.16
(3) List of unrecognized deferred income tax assets
Unit: RMB Yuan
Item Closing amount Opening amount
Deductible temporary difference 24,904,410.07 24,904,410.07
Deductible losses 41,829,038.02 70,854,758.45
Total 66,733,448.09 95,759,168.52
(4) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB Yuan
Years Closing amount Opening amount Note
Y 2015 4,554,328.15 4,554,328.15
Y 2016 287,136.58 287,136.58
Y 2017 89,186.59 89,186.59
Y 2018 16,303,166.71 16,303,166.71
Y 2019 20,595,220.25 49,620,940.42
Total 41,829,038.28 70,854,758.45 --
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
16. Short-term loans
(1) Category of short-term loans
Unit: RMB Yuan
Item Closing balance Opening balance
Trade financing 15,234,122.32
Total 15,234,122.32
17. Notes payable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance bill 1,367,635,597.24 1,173,851,127.31
Total 1,367,635,597.24 1,173,851,127.31
The total amount of the due but not pay notes payable at the period-end was of RMB 000.
18. Accounts payable
(1) List of accounts payable
Unit: RMB Yuan
Category Closing balance Opening balance
Within 1 year 3,333,181,149.57 3,528,221,756.10
1 to 2 years 67,239,287.93 18,735,241.51
2 to 3 years 22,102,420.74 26,717,312.50
3 to 5 years 34,050,378.84 24,132,516.93
Over 5 years 18,036,409.29 16,270,986.33
Total 3,474,609,646.37 3,614,077,813.37
(2) Notes of the accounts payable aging over one year
Unit: RMB Yuan
Name of creditor Amount Unpaid reason
Shanghai Xinweims Moulds Manufacturing Co ., Ltd 3,763,726.00 Not yet settle
Ninghai County Ganyuan Moulds Co ., Ltd 3,606,400.00 Not yet settle
Guangzhou Borch Machiney Co., Ltd. 2,658,243.33 Not yet settle
Chuzhou Ed Moulds Equipment Co., Ltd. 2,376,080.00 Not yet settle
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Suzhou Industrial Park Jinxin Mould Manufacturing Co., Ltd. 1,156,100.00 Not yet settle
Total 13,560,549.33 --
19. Advance from customers
(1) List of advance from customers
Unit: RMB Yuan
Item Closing balance Opening balance
Within 1 year 470,185,430.85 802,146,552.81
1 to 2 years 9,375,484.35 12,791,491.30
2 to 3 years 6,106,842.88 8,139,806.08
3 to 5 years 4,550,392.03 4,448,311.48
Over 5 years 24,065,006.41 24,066,664.36
Total 514,283,156.52 851,592,826.03
(2) Significant advance from customers aging over one year
Unit: RMB Yuan
Unpaid/ Un-carry-over
Item Closing balance
reason
Foshan City Shunde District Midea HVAC Equipment Co., Ltd. 2,291,178.05 Not yet settle
Nanyang Jianye Hotel Co., Ltd. 1,369,500.00 Not yet settle
Zhejiang Midea Refregeration Equipments Sales Co., Ltd 947,965.74 Not yet settle
Baoding Midea Refregeration Equipments Sales Co., Ltd 634,076.55 Not yet settle
Guangxi Guibei Midea Refregeration Equipments Sales Co., Ltd 594,305.95 Not yet settle
Total 5,837,026.29 --
20. Payroll payable
(1) List of Payroll payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 207,053,076.75 370,878,040.57 419,212,124.78 158,718,992.54
II. Welfare after departure-
5,469,599.96 47,235,674.85 43,844,038.38 8,861,236.43
defined contribution plans
III. Dismission welfare 37,855,133.21 7,851,342.13 12,959,535.75 32,746,939.59
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Total 250,377,809.92 425,965,057.55 476,015,698.91 200,327,168.56
(2) List of Short-term salary
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus, allowance,
184,980,055.05 307,807,576.59 355,217,229.81 137,570,401.83
subsidy
2. Employee welfare 8,440,970.34 22,013,748.16 24,202,962.29 6,251,756.21
3. Social insurance 2,595,681.91 22,929,938.96 21,242,538.02 4,283,082.85
Including: 1. Medical insurance
2,122,080.36 18,284,287.81 16,948,576.78 3,457,791.39
premiums
Work-related injury insurance 300,678.25 3,457,035.09 3,203,080.28 554,633.06
Maternity insurance 172,923.30 1,188,616.06 1,090,880.96 270,658.40
4. Housing fund 6,685,080.62 12,264,706.51 12,762,006.09 6,187,781.04
5. Labor union budget and
4,351,288.83 5,862,070.35 5,787,388.57 4,425,970.61
employee education budget
Total 207,053,076.75 370,878,040.57 419,212,124.78 158,718,992.54
(3) List of drawing scheme
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 5,075,081.72 43,939,940.26 40,788,672.78 8,226,349.20
2. Unemployment insurance 394,518.24 3,295,734.59 3,055,365.60 634,887.23
Total 5,469,599.96 47,235,674.85 43,844,038.38 8,861,236.43
21. Taxes payable
Unit: RMB Yuan
Item Closing balance Opening balance
VAT 30,348,274.58 2,480,795.51
Business tax 228,438.77 925,318.28
Corporate income tax 150,282,012.54 239,342,772.35
Personal income tax 4,088,819.44 2,176,903.49
Urban maintenance and construction tax 854,583.42 2,370,741.48
Property tax 3,622,896.62 3,269,324.31
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Land use tax 3,200,975.59 3,107,842.26
Stamp tax 173,492.82 397,990.84
Education Surcharge 609,612.85 1,930,360.51
House appliance recycling funds 14,688,240.00 16,234,575.00
Other 13,234,370.75 1,412,230.61
Total 221,331,717.38 273,648,854.64
22. Dividends payable
Unit: RMB Yuan
Item Closing balance Opening balance
Common stock dividends 5,400,652.06 4,088,128.36
Total 5,400,652.06 4,088,128.36
23. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB Yuan
Item Closing balance Opening balance
Margin &cash pledged 18,001,118.91 14,905,101.19
Reimbursed expenses 19,437,697.79 16,256,757.54
Third party payment 2,719,450.31 4,648,736.95
Other 9,833,520.57 12,729,821.16
Total 49,991,787.58 48,540,416.84
(2) Other significant accounts payable with aging over one year
Unit: RMB Yuan
Item Closing balance Unpaid/ Un-carry-over reason
Hefei Datong Gelan Suye Plastic Industry Co., Ltd. 1,810,000.00 Margin
Gao Shouqun 1,100,000.00 Fund for purchase house
Zhang Lei 1,100,000.00 Fund for purchase house
Anhui Hualong Plastic Co. , Ltd 665,000.00 Margin
Hefei Shangcheng Plastic Industry Co., Ltd. 555,000.00 Margin
Total 5,230,000.00 --
After the mediation work of the people's court of Ji Nan City Huai Yin District, the original renter Gao Shouqun,
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Zhang Lei had reached an agreement with the Company that purchasing the houses(Construction area of 893.51
square meters) of Jing Three Wei Eight Road, Ji Nan City Huai Yin District, with a total price of RMB 4.4 million.
So far the house money had been paid 50% but had not yet to complete the transferring ownership.
24. Special payable
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance Formation reasons
The relocation compensation 2,073,957.30 2,073,957.30 House removal
Total 2,073,957.30 2,073,957.30 --
The special payable at period-end due to the need of urban planning, the resettlement office of Xin an Sub-District,
New District of Wuxi replace the land with the subsidiary of the Company Wuxi FILIN Electronics Co., Ltd and
made compensation to the houses and buildings of the land.
25. Accrued liabilities
Unit: RMB Yuan
Item Closing balance Opening balance Formation reasons
Product quality assurance 9,773,637.38 9,960,830.74 Settlement of loss
Total 9,773,637.38 9,960,830.74 --
The subsidiary of the Company Wuxi Little Swan General Electrical Appliances Co., Ltd, its production of
washing machine were mainly sold to the United States and other foreign markets which had the mainly two claim
risks: when there was quality problem in the washing machine, the amount of insurance compensation are not
enough for the risk and the risk of compensation of over PCR (incidence of fault) agreed in the contract with
General Electrical Appliances Co., Ltd. As of 30 Jun. 2015, the Company paid compensation of PCR and losses of
insurance compensation are not enough for the risk of the production sold was estimate RMB 997.36 million.
26. Deferred income
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance Formation reasons
Government Government
3,848,733.33 226,600.02 3,622,133.31
subsidies allocations
Total 3,848,733.33 226,600.02 3,622,133.31 --
Items involved in government subsidies:
Unit: RMB Yuan
Amount of Amount accrued
Other Closing Related to the
Item Opening balance newly in non-business
changes balance assets/ income
subsidy income
Hefei Midea Washing 3,383,333.33 175,000.00 3,208,333.31 Related to the
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Machine Automation assets
promotion & technological
upgrading projects
Subsidies of substation Related to the
227,000.00 25,200.00 201,800.00
reformation assets
Special guide subsidies of
Related to the
modern service industry 238,400.00 26,400.00 212,000.00
assets
development
Total 3,848,733.33 226,600.00 3,622,133.31 --
27. Share capital
Unit: RMB Yuan
Increase/decrease (+/-)
Capitalization Closing
Opening balance Newly issue Bonus
of public Other Subtotal balance
share shares
reserves
The sum of
632,487,764.00 632,487,764.00
shares
28. Capital reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Capital premium 1,055,182,718.57 1,055,182,718.57
Equity investment preparation 1,538,810.57 1,538,810.57
Share-based payment 44,055,421.89 6,851,284.89 50,906,706.78
Transfer into capital reserves in the
39,179,385.00 39,179,385.00
original system
Total 1,139,956,336.03 6,851,284.89 1,146,807,620.92
The capital reserves increase RMB 6,851,284.89, mainly was Media Group’s the stock incentive to the top and
middle level managers of the Company.
29. Other comprehensive income
Unit: RMB Yuan
Reporting period
Opening Closing
Item Amount Less: Amount Less: After-tax After-tax
balance balance
incurred transferred into profit income attribute to attribute to
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
before and loss in the current tax the parent minority
income tax period that recognized expense company shareholder
into other
comprehensive
income in prior period
II. Other comprehensive
income reclassified into -3,449,689.57 -26,745.69 -26,745.69 -3,476,435.26
profit and loss in future
Converted amount of
foreign currency financial -3,449,689.57 -26,745.69 -26,745.69 -3,476,435.26
statements
Total -3,449,689.57 -26,745.69 -26,745.69 -3,476,435.26
30. Surplus reserves
Unit: RMB Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus
332,594,722.29 332,594,722.29
reserves
Total 332,594,722.29 332,594,722.29
31. Retained profits
Unit: RMB Yuan
Item Amount Withdrawal or distributed proportion
Opening balance of retained profits before adjustments 2,326,392,979.58 1,859,579,931.10
Opening balance of retained profits after adjustments 2,326,392,979.58 1,859,579,931.10
Add: Net profit attributable to owners of the Company 430,694,268.55 316,358,532.13
Dividend of common stock payable 284,619,493.80 189,746,329.20
Closing retained profits 2,472,467,754.33 1,986,192,134.03
List of adjustment of opening retained profits:
1) RMB 000 opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB 000 opening retained profits was affected by changes on accounting policies.
3) RMB 000 opening retained profits was affected by correction of significant accounting errors.
4) RMB 000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 000 opening retained profits was affected totally by other adjustments.
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32. Revenue and Cost of Sales
Unit: RMB Yuan
2015 2014
Item
Revenue Cost Revenue Cost
Main operation 5,620,828,547.48 4,072,244,009.19 4,557,126,125.99 3,280,741,426.30
Other operation 481,075,317.12 385,297,463.47 416,930,894.57 374,573,650.29
Total 6,101,903,864.60 4,457,541,472.66 4,974,057,020.56 3,655,315,076.59
33. Business tax and surcharges
Unit: RMB Yuan
Item 2015 2014
Business tax 443,157.75 322,440.93
Urban maintenance and construction tax 20,892,565.70 17,347,782.20
Education surtax 16,361,858.81 13,510,445.80
Total 37,697,582.26 31,180,668.93
34. Sales expenses
Unit: RMB Yuan
Item 2015 2014
Employee compensation 54,328,998.47 73,992,301.57
Transportation and handling charges 198,520,619.70 155,628,481.76
Travel expense 14,465,865.45 13,073,313.35
Rental expense 20,647,050.03 18,647,338.57
Installation expense 62,321,234.41 48,998,580.73
Spare part expense 17,648,289.99 21,676,208.69
Maintenance expense 62,908,749.65 46,371,434.61
Advertisement, sales promotional
368,110,547.57 308,607,736.97
expense
Others 51,041,894.03 21,876,757.65
Total 849,993,249.30 708,872,153.90
35. Administrative expenses
Unit: RMB Yuan
109
2015 Semi-annual Report of Wuxi Little Swan Company Limited
Item 2015 2014
Employee compensation 86,671,466.03 82,621,273.67
Depreciation 11,167,732.62 14,187,273.51
Utility bills 4,826,372.33 4,129,792.72
Quality loss 15,423,605.08 1,417,018.85
Building taxes 4,859,435.99 4,592,771.25
Product certification fee 1,463,541.68 1,541,366.30
Share-based payment 7,315,665.45 5,809,948.33
Others 141,228,178.92 95,783,440.06
Total 272,955,998.10 210,082,884.69
36. Financial expenses
Unit: RMB Yuan
Item 2015 2014
Interest expense 3,803,155.38 2,431,394.70
Less: interest income 11,526,158.20 9,196,425.25
Add: exchange loss -4,959,722.86 -4,461,581.30
Handling charge 1,477,448.10 1,326,782.99
Total -11,205,277.58 -9,899,828.86
37. Asset impairment loss
Unit: RMB Yuan
Item 2015 2014
I. Bad debt loss -1,325,118.42 -2,372,669.49
II. Inventory falling price loss 55,229.03
III. Fixed assets impairment losses 13,737,437.77
Total -1,325,118.42 11,419,997.31
38. Gains on the changes in the fair value
Unit: RMB Yuan
Source 2015 2014
Financial assets measured at fair value and changes recorded into
-248,907.75 -13,529,790.00
current profits and losses
Total -248,907.75 -13,529,790.00
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
39. Investment income
Unit: RMB Yuan
Item 2015 2014
Long-term equity investment income accounted by equity method -123,441.24 19,847.57
Investment income gained from disposal of financial assets
measured at fair value and changes recorded into current profits 597,040.00 3,946,180.00
or losses
Investment income gained in the period of the hold of bank
71,346,929.06 52,412,042.89
financial products
Total 71,820,527.82 56,378,070.46
40. Non-operating gains
Unit: RMB Yuan
Recorded in the amount of the
Item 2015 2014
non-recurring gains and losses
Total gains from disposal of non-current assets 223,996.80 497,193.03 223,996.80
Including: Gains from disposal of fixed assets 223,996.80 497,193.03 223,996.80
Government grants 11,077,408.20 6,454,141.22 11,077,408.20
Confiscated income 1,603,401.99 205,112.93 1,603,401.99
Other 1,751,395.68 2,769,562.28 1,751,395.68
Total 14,656,202.67 11,614,209.80 14,656,202.67
Government subsidies recorded into current profits and losses
Unit: RMB Yuan
Item 2015 2014 Related to the assets/ income
VAT refund upon collection 7,954,833.07 3,240,786.67 Related to income
Foreign trade promoting rewards 1,668,000.00 1,715,200.00 Related to income
Patent grants and subsidy for new products 253,000.00 173,500.00 Related to income
Industrial design Taihu Lake award 250,000.00 10,000.00 Related to income
Technology innovation subsidies 200,000.00 Related to income
Automation project subsidies 175,000.02 Related to income
Industrial development special funds for technical
150,000.00 Related to income
standard projects
Subsidy on export letter of credit 94,381.00 500,000.00 Related to income
Dr. Subsidies 75,000.00 75,000.00 Related to income
Xi demonstration enterprise of integration of 70,000.00 Related to income
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
information technology and industrialization
projects
Subsidy for equipment investment 51,600.00 51,600.00 Related to the assets
Intellectual property advantage enterprises
50,000.00 200,000.00 Related to income
subsidies
Subsidy for IRS upgrading the VAT invoicing
45,594.11 Related to income
system
Hefei energy subsidies 30,000.00 Related to income
Hefei municipal federation of trade unions model
10,000.00 Related to income
worker innovation funds
Special guide funding of provincial modern
2,100.00 Related to income
service industry development
Subsidies for AICA of export products 200,000.00 Related to income
Social security reward for talent policies 125,786.55 Related to income
Production efficiency and advanced statistical
110,000.00 Related to income
awards
Special subsidies for R&D 50,168.00 Related to income
Total 11,077,408.20 6,454,141.22 --
41. Non-operating expenses
Unit: RMB Yuan
The amount included in the
Item 2015 2014 current non-recurring gains
and losses
Total losses of disposal of non-current assets 1,767,090.74 1,475,989.61 1,767,090.74
Of which: Loss on disposal of fixed assets 1,767,090.74 1,475,989.61 1,767,090.74
Donation expense 385,875.00 896,062.50 385,875.00
Local fees (flood prevention and security funds
2,893,031.44 1,744,406.84
etc.)
Penalty expense 1,000.00 90,201.32 1,000.00
Others 1,359.07 541,578.39 1,359.07
Total 5,048,356.25 4,748,238.66 2,155,324.81
42. Income tax expense
(1) Lists of income tax expense
Unit: RMB Yuan
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Item 2015 2014
Current income tax expense 85,483,009.22 117,060,681.30
Deferred income tax expense -6,566,606.51 -50,624,078.71
Total 78,916,402.71 66,436,602.59
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB Yuan
Item 2015
Total profits 577,425,424.77
Current income tax expense accounted by tax and relevant regulations 86,613,813.72
Influence of not deductable costs, expenses and losses -8,314,019.81
Influence of deductible temporary difference or deductible losses of deferred income
616,608.80
tax assets derecognized at period-end
Income tax expense 78,916,402.71
43. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item 2015 2014
Interest income 11,526,158.20 9,196,425.25
Government subsidies 3,122,575.07 3,138,606.39
Penalty & claim 1,603,401.99 205,112.93
Other 5,158,267.01 3,163,243.41
Total 21,410,402.27 15,703,387.98
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item 2015 2014
Sales expense paid in reporting period 658,681,986.38 488,083,830.35
Administration expense paid in reporting period 166,592,183.42 111,480,111.74
Handling charges for financial expense in reporting period 1,477,448.10 1,326,782.99
Intercourse funds 7,041,744.94 11,526,696.57
Total 833,793,362.84 612,417,421.65
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
44. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
Unit: RMB Yuan
Item 2015 2014
1. Reconciliation of net profit to net cash flows generated
-- --
from operating activities
Net profit 498,509,022.06 350,363,717.00
Add: Provision for impairment of assets -1,325,118.42 11,419,997.31
Depreciation of fixed assets, of oil-gas assets, of productive
57,610,111.52 67,451,231.08
biological assets
Amortization of intangible assets 2,619,476.35 2,893,989.24
Amortization of long-term deferred expense 3,014,839.00 6,551,177.05
Losses on disposal of property, plant and equipment,
intangible assets and other 16,780.87 -591,204.60
long-term assets (gains: negative)
Losses from changes in fair value (gains: negative) 248,907.75 13,529,790.00
Financial expense (gains: negative) 835,131.49 656,433.57
Investment loss (gains: negative) -71,820,527.82 -56,378,070.46
Decrease in deferred income tax assets (gains: negative) -6,529,270.35 -48,594,610.18
Increase in deferred income tax liabilities (decrease:
-37,336.16 -2,029,468.50
negative)
Decrease in inventory (gains: negative) 151,430,212.58 218,968,580.59
Decrease in accounts receivable from operating activities
1,090,041,707.37 34,104,953.91
(gains: negative)
Increase in payables from operating activities (decrease:
-359,344,452.78 226,757,919.82
negative)
Net cash flows generated from operating activities 1,365,269,483.46 825,104,435.83
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 1,104,435,153.42 2,114,623,154.82
Less: Opening balance of cash 1,516,739,804.86 1,558,204,866.53
Net increase in cash and cash equivalents -412,304,651.44 556,418,288.29
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(2) Cash and cash equivalents
Unit: RMB Yuan
Item Closing balance Opening balance
I. Cash 1,104,435,153.42 1,516,739,804.86
Including: cash in hand 8,158.18 8,158.18
Bank deposit can be used for payment at any time 2,744,426,995.23 2,996,731,646.68
Other monetary funds can be used for payment at any time 72,538,190.64 63,175,151.35
III. Closing balance of cash and cash equivalents 1,104,435,153.42 1,516,739,804.86
45. The assets with the ownership or use right restricted
Unit: RMB Yuan
Monetary capital Monetary
The bank acceptance deposit RMB 69,566,530.71, L/C Guarantee deposits
Monetary capital 1,712,538,190.64
RMB 2,971,659.93, structured deposits RMB 1.64 billion
Total 1,712,538,190.64
46. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB Yuan
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary funds
Including: USD 42,257,124.75 6.1136 258,343,157.87
EUR 690,160.82 6.8699 4,741,335.82
JPY 15.00 0.0501 0.75
Accounts receivable
Including: USD 75,640,545.52 6.1136 462,436,039.08
EUR 19.25 6.8699 132.25
Prepayment
Including: USD 914,922.74 6.1136 5,593,471.66
EUR 8,472.00 6.8699 58,201.79
Accounts payable
Including: USD 4,882,477.84 6.1136 29,849,516.52
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
EUR 30,430.08 6.8699 209,051.61
Accounts receivable in advance
Including: USD 2,156,018.02 6.1136 13,181,031.75
EUR 13,710.71 6.8699 94,191.17
JPY 79,163.35 0.0501 3,962.28
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the
reason.
Name of entity Main opeating palce Currency Changes
Little Swan International (Singapore) Co.,
Singapore USD No
Ltd.
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Proportion of
Main operating Registration Nature of
Name of the subsidiary shareholding Way of gaining
place place business
Directly Indirectly
Wuxi Little Swan General Electric
Wuxi Wuxi Production 70.00% Setting-up
Appliances Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. Wuxi Wuxi Production 73.00% Setting-up
Jiangsu Little Swan Marketing and
Wuxi Wuxi Trading 99.54% 0.09% Setting-up
Sales Co. , Ltd.
Wuxi Little Swan Import & Export Import &
Wuxi Wuxi 88.46% Setting-up
Co. , Ltd Export
Little Swan International (Singapore)
Singapore Singapore Investment 100.00% Setting-up
Co., Ltd.
Enterprise
Little Swan (Jingzhou) Electronic
Jingzhou Jingzhou Production 100.00% combination under
Appliances Co., Ltd.
same control
Enterprise
Hefei Midea Washing Machine Co.,
Hefei Hefei Production 69.47% combination under
Ltd.
same control
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(2) Significant not wholly owned subsidiary
Unit: RMB Yuan
Shareholding
The profits and losses Declaring dividends Balance of minority
proportion of
Name arbitrate to the distribute to minority shareholder at closing
minority
minority shareholders shareholder period
shareholder
Wuxi Little Swan General Electric
30.00% 2,467,869.01 46,784,651.34
Appliances Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. 27.00% 15,349,322.58 114,095,859.05
Hefei Midea Washing Machine Co.,
30.53% 49,997,561.92 624,112,606.07
Ltd.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB Yuan
Closing balance Opening balance
Name Non-current Current Non-current Non-current Current Non-current
Current assets Total assets Total liability current assets Total assets Total liability
assets liabilities liability assets liabilities liability
Wuxi Little
Swan General
Electric 245,058,018 17,408,913 262,466,931 77,729,100 9,773,637 87,502,738 213,881,741 19,098,218 232,979,959 56,406,736 9,960,831 66,367,567
Appliances Co. ,
Ltd.
Wuxi Filin
Electronics Co. , 507,770,850 55,975,619 563,746,469 138,681,456 2,487,757 141,169,213 444,295,307 57,312,843 501,608,149 133,657,734 2,539,357 136,197,091
Ltd.
Hefei Midea
Washing
3,778,898,129 649,726,267 4,428,624,395 2,381,155,970 3,208,333 2,384,364,303 3,680,238,071 660,915,331 4,341,153,402 2,458,370,427 3,395,249 2,461,765,675
Machine Co.,
Ltd.
Unit: RMB Yuan
2015 2014
Total Total
Name
Operation revenue Net profit comprehensive Operating cash flow Operation revenue Net profit comprehensive Operating cash flow
income income
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Wuxi Little Swan General Electric
119,149,999 8,226,230 8,226,230 -4,492,352 126,305,682 9,997,412 9,997,412 5,377,314
Appliances Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. 237,418,559 56,849,343 56,849,343 -85,141,565 174,990,191 36,455,880 36,455,880 -20,696,682
Hefei Midea Washing Machine Co.,
2,889,158,007 163,765,352 163,765,352 411,781,210 2,212,744,961 69,175,802 69,175,802 74,175,397
Ltd.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
2. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting treatment of
Main operating Registration Business the investment of joint
Name
place place nature Directly Indirectly venture or associated
enterprise
Guangzhou Antaida Logistics
Guangzhou Guangzhou 20.00% Equity method
Logistical Co., Ltd. transportation
(2) Main financial information of significant joint venture
Unit: RMB Yuan
Closing balance /2015 Opening balance/2014
Current assets 13,369,467.50 14,842,601.50
Non-current assets 251,532.50 474,347.77
Total assets 13,621,000.00 15,316,949.27
Current liabilities -11,996.06 1,066,747.03
Total liabilities -11,996.06 1,066,747.03
Equity attributable to the parent company shareholders 13,632,996.06 14,250,202.24
Share of net asset calculated by shareholding proportion 2,726,599.21 2,850,040.45
Book value of investment to associated enterprise 2,726,599.21 2,850,040.45
IX. Risks related to financial tools
The financial risks the Company faced during operation are: financial risk: credit risk, market risk and liquidity
risk. The board of directors of the Company will be entirely responsible for the determination of risk management
goals and policies, and bear the ultimate responsibility for them. The Company management levels management
and monitoring the risks, to ensure timely and effectively take the appropriate measures.
The overall goal of the risk management of the Company is under the condition of without excessive impact to
competitiveness and resilience of the Company, formulating risk management policy to reduce risk as much as
possible.
(I) Credit risk
Credit risk is referring to the financial losses of one party incurred when the other party fails to perform its
obligations. The Company mainly faces the credit risk lead to customer credit risk. Before signing a new contract,
the company will know about and understand the new customer credit risk. The Company based on the existing
customer credit rating and the accounts receivable using aging analysis to ensure that the Company's overall credit
risk in the controllable range.
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(II) Market risk
Market risk of financial instruments is referring to the fair value and future cash flow of financial instruments
changes due to the change of market price, including foreign currency risk, interest rate risk and other price risk.
(III) Liquidity risk
Liquidity risk is referring to the risk of capital shortage when the Company performing settlement by cash or other
financial assets. The policies of Company are to ensure that there are sufficient cash to pay due liabilities.
Liquidity risk centralized control by the Company's financial department. The financial department through
supervising the cash balance, securities can be converted into cash at anytime and rolling forecast of cash flow in
future 12 months, ensure that there are sufficient capital to pay liabilities under all reasonable forecast.
X. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of voting
Proportion of share
rights owned by
Name of parent Registered held by parent
Registered place Business scope parent company
company capital company against the
against the Company
Company (%)
(%)
Manufacture, sales and after
Midea Group Co., Foshan, sale service of household
4,290,122,597 52.67% 52.67%
Ltd Guangdong appliances and its
equipments
Notes: Information on the parent company:
The final control party of the enterprise is He Xiangjian.
2. Subsidiaries of the Company
See details to Notes VIII.
3. Information on the joint ventures and associated enterprises of the Company
See details to Notes VIII.
4. Information on other related parties of the Company
Name Relationship
Midea Group Finance Co., Ltd Under control of controlling shareholder of the Company
Hefei Midea Materail Supply Co.,Ltd Under control of controlling shareholder of the Company
Hefei Midea Refrigerator Co., Ltd Under control of controlling shareholder of the Company
Hefei Hua Ling Share Holding Co. , Ltd. Under control of controlling shareholder of the Company
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Guangdong Midea HVAC Equipment Co. , Ltd. Under control of controlling shareholder of the Company
Midea Electric Trading (Singapore) Co. Pte. Ltd. Under control of controlling shareholder of the Company
PT. Midea Planet Indonesia Holding shares of controlling shareholder of the Company
MIDEA SCOTT & ENGLISH SDN BHD Holding shares of controlling shareholder of the Company
MIDEA ITALIA S.R.L. Under control of controlling shareholder of the Company
Midea Life Electric (Vietnam) Co. , Ltd. Under control of controlling shareholder of the Company
HandanMidea Refrigeration Equipment Co., Ltd Under control of controlling shareholder of the Company
Hefei Bainian Molding Technology Co., Ltd. Under control of family member close to the actual controller
Zhongshan Midea Midea Environment Appliances Engineering
Under control of controlling shareholder of the Company
Product Installation Service Co., Ltd.
Foshan Shunde District Bainian Technology Development Co., Ltd. Under control of controlling shareholder of the Company
Foshan Shunde District Bainian Tongchuang Plastic Industrial Co.,
Under control of controlling shareholder of the Company
Ltd.
Ningbo Annto Logistics Co. Ltd. Under control of controlling shareholder of the Company
Annto Logistics Co. Ltd. Under control of controlling shareholder of the Company
Huai'an Welling Motor Manufacturing Co., Ltd. Under control of controlling shareholder of the Company
Hubei Midea Refrigerator Co., Ltd. Under control of controlling shareholder of the Company
Wuhu Bainian Technology Development Co., Ltd. Under control of controlling shareholder of the Company
Wuhu MeizhiAir-conditioning Co., Ltd Under control of controlling shareholder of the Company
Wuhu Midea Kitchenware Appliances Manufacturing Co., Ltd. Under control of controlling shareholder of the Company
Wuhu Midea Household Appliances Information Service Co., Ltd. Under control of controlling shareholder of the Company
Guangdong Midea Group Wuhu Refrigeration Equipment Co., Ltd Under control of controlling shareholder of the Company
Guangdong Midea Refrigeration Equipment Co., Ltd Under control of controlling shareholder of the Company
Ningbo Midea United Material Supply Co., Ltd Under control of controlling shareholder of the Company
Guangdong Midea Environment Appliances Co. Ltd. Under control of controlling shareholder of the Company
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan
Acquisition of goods and reception of labor service
Unit: RMB Yuan
Trading limit Over the trading
Related-party Content 2015 2014
approved limit or not?
Huai’an Welling Motor Electrical
248,274,543.85 586,000,000.00 No 191,827,058.83
Manufacturing Co., Ltd. Machine
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Ningbo Midea United Material
Materials 245,095,214.95 760,000,000.00 No 114,393,353.84
Supply Co., Ltd
Logistics
Ningbo Annto Logistics Co. Ltd. 172,170,984.31 373,000,000.00 No 37,152,578.97
service
Zhejiang Meizhi Plasticator Co. Ltd. Materials 1,751,675.19 0.00 No
Midea Group Electronic Commerce
Materials 1,389,420.21 10,000,000.00 No
Co. Ltd.
Hefei Midea Material Supply Co.,
Materials 79,038,575.14
Ltd
Guangdong Midea Environment
Materials 4,288,888.90
Appliances Co. Ltd.
Hubei Midea Refrigerator Co. Ltd. Materials 770,148.67
Logistics
Annto Logistics Co. Ltd. 88,989.25
service
Hefei Hua Ling Share Holding Co. ,
Materials 40,259.03
Ltd.
Total 668,681,838.51 427,599,852.63
Information of sales of goods and provision of labor service
Unit: RMB Yuan
Related-party Content 2015 2014
Midea Electric Trading (Singapore) Co. Pte. Ltd. Materials &washing machine 905,147,968.25 676,907,927.34
MIDEA SCOTT&ENGLISH ELECTRONIICS
Washing machine 22,538,129.98 12,553,510.03
SDN.BHD
Hefei Hua Ling Share Holding Co. , Ltd. Rent 5,833,768.80
PT. Midea Planet Indonesia Materials &washing machine 5,225,547.41 2,055,545.17
Midea Life Electric (Vietnam) Co. , Ltd. Washing machine 919,302.64 816,211.03
Hefei Midea Material Supply Co., Ltd Materials 93,979.49
Huai'an Welling Motor Manufacturing Co., Ltd. Materials 51,192.77
Total 939,758,696.57 693,200,597.38
(2) Related party asset transfer and debt restructuring
Unit: RMB Yuan
Related party Content 2015 2014
Guangdong Midea Refrigeration
Equipment 8,210.40 0.00
Equipment Co., Ltd
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(3) Rewards for the key management personnel
Unit: RMB Yuan
Item 2015 2014
Rewards for the key management
1,724,800.00 3,061,800.00
personnel
Notes: the key management personnel were the directors, supervisors and senior management personnel who
obtaining remuneration in the Company during reporting period, due to personnel changes, the personnel and the
number were different.
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB Yuan
Closing period Opening period
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Midea Electric Trading (Singapore)
Account receivable 273,241,410.46 13,662,070.52 229,629,569.18 11,481,478.46
Co. Pte. Ltd.
MIDEA SCOTT&ENGLISH
Account receivable 15,341,386.65 767,069.33 6,096,576.22 304,828.81
ELECTRONILCS SDN.BHD
Account receivable PT MIDEA PLANET INDONESIA 4,642,741.20 232,137.06 4,378,064.95 218,903.25
Hefei Midea Material Supply Co.,
Account receivable 109,956.00 5,497.80
Ltd
Guangdong Midea Refrigeration
Account receivable 8,210.40 410.52 2,472,238.03 123,611.90
Equipment Co., Ltd
Midea Life Electric (Vietnam) Co. ,
Account receivable 1,763,032.11 88,151.61
Ltd.
Account receivable Ningbo Annto Logistics Co. Ltd. 1,531,491.60 76,574.58
Account receivable Hubei Midea Refrigerator Co. Ltd. 1,365,053.13 68,252.66
Subtotal 293,343,704.71 14,667,185.24 247,236,025.22 12,361,801.27
Hefei Hua Ling Share Holding Co. ,
Other receivables 972,294.80 48,614.74
Ltd.
Subtotal 972,294.80 48,614.74
Ningbo Midea United Material
Prepayment 88,275.94 18,549,101.34
Supply Co., Ltd
Subtotal 88,275.94 18,549,101.34
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(2) Payables
Unit: RMB Yuan
Opening book
Item Related party Closing book value
value
Accounts payable Huai'an Welling Motor Manufacturing Co., Ltd. 65,334,696.34 67,504,962.19
Accounts payable Ningbo Midea United Material Supply Co., Ltd 31,254,265.83 16,775,725.20
Accounts payable Zhejiang Meizhi Plasticator Co. Ltd. 215,283.82
Accounts payable Ningbo Annto Logistics Co. Ltd. 128,380.63 137,829.53
Accounts payable Annto Logistics Co. Ltd. 81,649.55 90,630.06
Accounts payable Hefei Bainian Molding Technology Co., Ltd. 880.73 880.73
Accounts payable Hefei Midea Material Supply Co., Ltd 22,735.18
Accounts payable Midea Group Co., Ltd 5,576,397.45
Accounts payable Foshan Shunde District Bainian Technology Development Co., Ltd. 8,800.00
Total 97,015,156.90 90,117,960.34
XI. Stock payment
1. The Stock payment overall situation
1. Overall of share-based payment
During the reporting period, the Midea Group and the high-level management personnel and technical backbone
personnel of its subsidiaries implemented stock options incentive plan Phase II, the grant date of phase I stock
options incentive plan was on 18 Feb. 2014, the grant date of phase II was on 27 May. 2015. As of the end of
reporting period, in the phase I stock options incentive plan, authorized to the Company and its subsidiaries
incentive personnel was 45 people, authorized the incentive personnel stock options 6.5925 million, the first
exercise period had reached an agreement on 15 May 2015 and began to exercise; in stock options incentive plan
Phase II, authorized to the Company and its subsidiaries incentive personnel was 45 people, authorized the
incentive personnel stock options 5.07 million.
2. The Stock payment settled by equity
□ Applicable √ Inapplicable
3. The Stock payment settled by cash
□ Applicable √ Inapplicable
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
4. Modification and termination of the stock payment
Naught
5. Other
Naught
XII. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of 30 Jun. 2015, there was no significant commitment or contingency in the Group.
2. Contingency
(1) Significant contingency at balance sheet date
As of 30 Jun. 2015, there was no significant contingency in the Group.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3. Other
XIII. Events after balance sheet date
1. Significant events had not adjusted
Naught
XIV. Other significant events
1. Segment information
(1) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
The business of the Company and its subsidiaries are unitary, which mainly is the production and sale of
household appliances. The Management considered it as a whole to implementing administration and evaluating
the operating results, thus the financial report did not have segment information.
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XV. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Unit: RMB Yuan
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Withdr
Category Withdra
Propor awal Book value Propor Book value
wal
Amount tion Amount Propor Amount tion Amount
Proporti
(%) tion (%)
on (%)
(%)
Accounts
receivable
withdrawal
of bad debt
provision of 814,069,104 99% 21,627,793 3% 792,441,311 621,923,990 98% 22,843,095 4% 599,080,896
by credit
risks
characteristi
cs:
Accounts
receivable
with
insignificant
single
amount but
11,006,018 1% 11,006,018 100% 11,347,358 2% 11,347,358 100%
large risks of
groups after
grouping by
credit risks
characteristi
cs
Total 825,075,123 100% 32,633,811 4% 792,441,311 633,271,348 100% 34,190,453 5% 599,080,896
Accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks
characteristics at the end of reporting period.
□ Applicable √ Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □ Inapplicable
Unit: RMB Yuan
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Closing balance
Aging
Accounts receivable Provision for bad debts Proportion (%)
Subentry within 1 year
Subtotal of within 1 year 432,299,645.72 21,614,982.29 5.00%
1-2 years 5,613.68 561.37 10.00%
2-3 years 40,830.36 12,249.11 30.00%
3-4 years 0.36 0.18 50.00%
4-5 years 0.36 0.18 50.00%
Total 432,346,090.48 21,627,793.12
Notes:
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:
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB -1,556,641.45; the amount of reversed or recovered bad debt
provision in the report period was of RMB 341,340.00.
(3) Top five of account receivable of closing balance collected by arrears party
Name of the entity Relationship Amount Year Proportion (%)
Hefei Midea Washing Machine Co., Ltd 381,723,013.91 Within 1 year 46.27% 0.00
Midea Electric Trading (Singapore) Co. Pte. Ltd. 100,274,727.88 1 Within 1 year 12.15% 5,013,736.39
Suning Yunshang Group Co., LTD. Suning Purchasing 63,678,040.83 1 Within 1 year 7.72% 3,183,902.04
Center
DEILAMI GENERAL TRADING CO. (L.L.C.) 15,924,111.06 1 Within 1 year 1.93% 796,205.55
Jiangsu 5 Star Appliance Co., Ltd 13,403,393.61 1 Within 1 year 1.62% 670,169.68
Total 575,003,287.29 69.69 9,664,013.67
2. Other account receivable
(1) Other account receivable classified by category
Unit: RMB Yuan
Closing balance Opening balance
Category
Provision for bad Provision for bad
Book balance Book value Book balance Book value
debts debts
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Withdr Withd
Propor Propor
awal rawal
Amount tion Amount Amount tion Amount
propor propor
(%) (%)
tion tion
Accounts
receivable
withdrawal of
bad debt 99,120,229 100% 77,669,068 78% 21,451,161 93,916,412 100% 77,754,120 83% 16,162,292
provision of by
credit risks
characteristics:
Total 99,120,229 100% 77,669,068 78% 21,451,161 93,916,412 100% 77,754,120 83% 16,162,292
Other accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks
characteristics at the end of reporting period
□ Applicable √ Inapplicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance
Aging
Other account receivable Provision for bad debts Proportion (%)
Subentry within 1 year
Subtotal of within 1 year 12,375,469.09 618,773.45 5.00%
1-2 years 10,338,072.11 1,033,807.21 10.00%
2-3 years 307,714.50 92,314.35 30.00%
3-4 years 349,600.00 174,800.00 50.00%
Total 23,370,855.70 1,919,695.02 8.21%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Inapplicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Inapplicable
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB 318,600.62, the amount of reversed or recovered bad debt provision
in the report period RMB 000.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
(3) Particulars of the actual verification of other accounts receivable during the reporting period
Unit: RMB Yuan
Item Amount
Risk fund of production safety 28,750.00
Wuxi Real Estate Administrative Bureau 13,224.00
TAIZHOU HUANGYAN ZHIWEI MOULD CO,LTD, 269,231.00
Foshan Weihansen, Mechanical And Electrical Automation Equipment Co., Ltd. 39,000.00
Wuxi Dehai Kemao Co., Ltd. 35,300.00
Hoffman/New Yoke,Inc 6,866.00
Wuxi Mingjie Machine Co., Ltd. 5,742.00
Zhejiang Aolong Science & Technology Development Co. , Ltd 2,607.00
Lapauw 2,232.00
Occasional supplier 700.00
Total 403,652.19
(4) Other account receivable classified by account nature
Unit: RMB Yuan
Nature Closing book value Opening book value
Margin &cash pledge 71,150.00 362,934.12
Advance money for another 6,901,539.19 2,722,807.25
Subsidies for energy saving & benefit the people 9,738,261.10 9,738,261.10
Overdue bill 6,659,905.41 3,645,699.48
Employee loan 1,700,000.00
Export rebates 75,749,372.91 75,746,709.83
Total 99,120,228.61 93,916,411.78
(5) The top five other account receivable classified by debtor at period end
Unit: RMB Yuan
Closing balance
Entity Nature Closing balance Aging Proportion% of bad debt
provision
Jiangsu Little Swan Marketing
Intercourse funds 74,639,209.96 2-3 years 75.30% 74,639,209.96
and Sales Co. , Ltd.
Ministry of Industry and Subsidies for energy 9,738,261.10 1-2 years 9.82% 973,826.11
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Information saving & benefit the
people
Wang Ruiqun Marketing costs 2,178,000.00 1-2 years 2.20% 111,400.00
Zhejiang Tmall Technology Co.,
Margin &cash pledge 984,110.25 1-2 years 0.99% 49,205.51
Ltd.
Gas payment in
Wuxi Huarun Gas Co., Ltd. 725,800.00 Within 1 year 0.73% 36,290.00
advance /cash pledge
Total -- 88,265,381.31 -- 13.75% 75,809,931.58
3. Long term equity investment
Unit: RMB Yuan
Closing balance Opening balance
Item bad debt bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
1,397,194,491.57 57,500,000.00 1,339,694,491.57 1,397,194,491.57 57,500,000.00 1,339,694,491.57
subsidiary
Investment to
joint ventures and
2,726,599.21 2,726,599.21 2,850,040.45 2,850,040.45
associated
enterprises
Total 1,399,921,090.78 57,500,000.00 1,342,421,090.78 1,400,044,532.02 57,500,000.00 1,342,544,532.02
(1) Investment to the subsidiary
Unit: RMB Yuan
Withdrawn
Closing
impairment
balance of
Entity Opening balance Increase Decrease Closing balance provision in
impairment
the reporting
provision
period
Wuxi Little Swan Import & Export
57,500,000.00 57,500,000.00 57,500,000.00
Co. , Ltd
Jiangsu Little Swan Marketing and
417,550,000.00 417,550,000.00
Sales Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. 25,660,308.10 25,660,308.10
Wuxi Little Swan General Electric
19,600,000.00 19,600,000.00
Appliances Co. , Ltd.
San Jin(Jing Zhou) Electrical
11,869,431.12 11,869,431.12
Appliances Co. , Ltd.
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Little Swan
34,052,500.00 34,052,500.00
International(Singapore) Co., Ltd.
Hefei Midea Washing Machine Co.,
830,962,252.35 830,962,252.35
Ltd.
Total 1,397,194,491.57 1,397,194,491.57 57,500,000.00
(2) Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Increase/decrease in reporting period
Closing
Investment
Adjustm Withdr balance
profit and
Addition ent of Declaratio awn of
Name of Opening Negative loss Other Closing
al other n of cash impair impair
investee balance investme recognized equity Other balance
investme compreh dividends ment ment
nt under the changes
nt ensive or profits provisi provisi
equity
income on on
method
I. Joint ventures
II. Associated enterprises
Guangzho
u Attend
2,850,040.45 -123,441.24 2,726,599.21
Logistics
Co., Ltd.
Subtotal 2,850,040.45 -123,441.24 2,726,599.21
Total 2,850,040.45 -123,441.24 2,726,599.21
(3) Other notes
4. Revenues and operating costs
Unit: RMB Yuan
Reporting period Same period of last year
Item
Revenues Operating costs Revenues Operating costs
Main operations 4,228,136,811.27 3,176,678,635.30 3,402,936,436.54 2,497,703,786.49
Other operations 280,406,419.00 242,456,904.37 239,763,786.41 221,039,144.13
Total 4,508,543,230.27 3,419,135,539.67 3,642,700,222.95 2,718,742,930.62
5. Investment income
Unit: RMB Yuan
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Item Reporting period Same period of last year
Long-term equity investment income accounted by equity method -123,441.24 19,847.57
Investment income from disposal of long term equity investment -8,513,054.48
Investment income from disposal of financial assets measured at fair value and
362,690.00 2,341,450.00
changes recorded into current profits and losses
Investment income gained in the period of the hold of bank financial products 42,905,313.67 29,625,630.07
Total 43,144,562.43 23,473,873.16
XVI. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Amount Note
Loss and gains on disposal of non-current assets -1,543,093.94
Governmental subsidy included in the current profits and losses(is closely related with the
business event, except for the governmental subsidy that according to the national unity standard 11,077,408.20
quota or the quantitative regal assets)
Gains and losses of committing others of investment or managing assets 71,346,929.06
Income and expenses of the other operation except for the mentioned above 341,340.00
The other items of gains and losses conforming the definition of non-recurring gains and losses 2,966,563.60
Less：the effect of income tax 12,627,967.94
the effect of minority interest 9,982,132.42
Total 61,579,046.56 --
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
2. Return on equity (ROE) and earnings per share (EPS)
Weighted average EPS（Yuan/share）
Profit as of reporting period
ROE (%) EPS-basic EPS-diluted
Net profit attributable to common shareholders of the Company 9.28% 0.68 0.68
Net profit attributable to common shareholders of the Company after deduction
7.95% 0.58 0.58
of non-recurring profit and loss
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2015 Semi-annual Report of Wuxi Little Swan Company Limited
Section X. Documents Available for Reference
1. Text of the Semi-annual Report 2015 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.
Wuxi Little Swan Co., Ltd.
Legal Representative: Fang Hongbo
6 Aug. 2015
134
