Wuxi Little Swan Company Limited Report for the Third Quarter of 2016
Wuxi Little Swan Company Limited
Report for the Third Quarter of 2016
October 2016
1
Wuxi Little Swan Company Limited Report for the Third Quarter of 2016
Section I Important Statements
The Board of Directors, Supervisory Committee, directors, supervisors and senior management of
Wuxi Little Swan Company Limited (hereinafter referred to as the “Company”) hereby guarantee
that the information presented in this Report is factual, accurate and complete, and shall be jointly
and severally liable for any false information, misleading statements or material omissions carried
in this Report.
All directors attended the board meeting for the review of this Report.
Mr. Fang Hongbo, Chairman of the board, Mr. Sun Yunan, CFO, and Mr. Xu Yunwei, chief of the
accounting organ (chief of accounting), hereby confirm that the financial report carried in this
Report is factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
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Wuxi Little Swan Company Limited Report for the Third Quarter of 2016
Section II Financial Highlights & Shareholder Changes
I Highlights of accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year
due to change in accounting policies or correction of accounting errors
□ Yes √ No
30 September 2016 31 December 2015 +/- (%)
Total assets (RMB) 16,629,381,295.68 14,327,655,366.60 16.06%
Net assets attributable to shareholders of the
5,718,554,534.42 5,124,866,173.14 11.58%
Company (RMB)
July-September 2016 YoY +/- (%) January-September 2016 YoY +/- (%)
Operating revenues (RMB) 4,070,848,719.32 15.98% 12,055,635,914.24 25.42%
Net profit attributable to shareholders of the
332,295,999.87 30.28% 913,122,562.45 33.16%
Company (RMB)
Net profit attributable to shareholders of the
Company excluding exceptional profit and 326,278,938.30 48.45% 893,722,941.36 51.76%
loss (RMB)
Net cash flows from operating activities
-- -- 1,927,294,085.23 -25.10%
(RMB)
Basic earnings per share (RMB/share) 0.53 32.50% 1.44 33.33%
Diluted earnings per share (RMB/share) 0.53 32.50% 1.44 33.33%
Weighted average return on equity 5.99% 0.58% 16.81% 1.86%
Notes: In the fourth quarter of 2015, “to make financial investments with the Company’s own funds” was added to
the business scope of the Company. As such, profit/loss on financial investments has been restated as recurrent
profit/loss. In order to help investors better understand the business results of the Company, the “net profit
attributable to shareholders of the Company after exceptional profit and loss” is restated in the table on the same
basis, with the data as follows:
July-September 2016 YoY +/- (%) January-September 2016 YoY +/- (%)
Net profit attributable to shareholders of the
Company excluding exceptional profit and 326,278,938.30 36.25% 893,722,941.36 35.03%
loss (RMB Yuan)
Exceptional profit and loss
√ Applicable □ Not applicable
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Wuxi Little Swan Company Limited Report for the Third Quarter of 2016
Unit: RMB Yuan
Item January-September 2016 Note
Profit/loss on disposal of non-current assets (including offset amount of asset
-472,842.63
impairment provisions)
Government grants charged to the profit/loss for the Reporting Period (except for
the government grants closely related to the business of the Company and given 28,148,291.80
at a fixed quota or amount in accordance with the State’s uniform standards)
Non-operating income and expense other than the above 2,032,437.79
Less: Corporate income tax 4,456,258.04
Minority interests (after tax) 5,852,007.83
Total 19,399,621.09 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the
said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders and shareholdings of top 10 shareholders at the period-end
1. Total number of ordinary shareholders and preference shareholders who had resumed their voting right
& shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of ordinary shareholders Total number of preference shareholders who had resumed
19,879 0
at the end of the Reporting Period their voting right at the end of the Reporting Period (if any)
Shareholdings of top 10 shareholders
Number of Pledged or frozen
Shareholding Number of
Name of shareholder Nature of shareholder restricted shares
percentage shares held
shares held Status Number
Domestic non-state-owned
MIDEA GROUP CO., LTD. 37.78% 238,948,117
corporation
TITONI INVESTMENTS
Foreign corporation 14.89% 94,204,942
DEVELOPMENT LTD.
GAOLING FUND, L.P. Foreign corporation 3.43% 21,694,456
NATIONAL SOCIAL SECURITY Domestic non-state-owned
3.08% 19,498,991
FUND PORTFOLIO 108 corporation
GREENWOODS CHINA ALPHA
Foreign corporation 2.82% 17,846,794
MASTER FUND
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Wuxi Little Swan Company Limited Report for the Third Quarter of 2016
FINANCE BUREAU OF WUXI On behalf of the State 2.70% 17,054,071
NATIONAL SOCIAL SECURITY Domestic non-state-owned
2.13% 13,454,035
FUND PORTFOLIO 101 corporation
CENTRAL HUIJIN ASSET
State-owned corporation 1.61% 10,156,300
MANAGEMENT CO., LTD.
BILL & MELINDA GATES
Foreign corporation 0.87% 5,517,200
FOUNDATION TRUST
NORGES BANK Foreign corporation 0.69% 4,333,315
Shareholdings of top 10 non-restricted shareholders
Number of non-restricted Type of shares
Name of shareholder
shares held at the period-end Type Number
MIDEA GROUP CO., LTD. 238,948,117 RMB ordinary share 238,948,117
Domestically listed
TITONI INVESTMENTS DEVELOPMENT LTD. 94,204,942 94,204,942
foreign share
Domestically listed
GAOLING FUND, L.P. 21,694,456 21,694,456
foreign share
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108 19,498,991 RMB ordinary share 19,498,991
Domestically listed
GREENWOODS CHINA ALPHA MASTER FUND 17,846,794 17,846,794
foreign share
FINANCE BUREAU OF WUXI 17,054,071 RMB ordinary share 17,054,071
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 101 13,454,035 RMB ordinary share 13,454,035
CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD. 10,156,300 RMB ordinary share 10,156,300
BILL & MELINDA GATES FOUNDATION TRUST 5,517,200 RMB ordinary share 5,517,200
Domestically listed
NORGES BANK 4,333,315 4,333,315
foreign share
MIDEA GROUP CO., LTD. and TITONI INVESTMENTS
Related or act-in-concert parties among the shareholders above
DEVELOPMENT LTD. are parties acting in concert.
Top 10 ordinary shareholders conducting securities margin
Not applicable
trading (if any)
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company
conduct any promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top 10 of them at the period-end
□ Applicable √ Not applicable
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Section III Significant Events
I Changes in main accounting statement items and financial indicators in the Reporting
Period, as well as reasons for the changes
Unit: RMB Ten Thousand Yuan
30 September 31 December
Item +/- +/- (%) Note
2016 2015
Purchase of more banks’ wealth management
Monetary funds 207,232.67 304,284.39 -97,051.72 -32%
products
In the current period, sales on credit grew
Accounts receivable 158,769.15 89,607.55 69,161.60 77% considerably, while in the same period of last year,
accounts receivable were settled early
Accounts paid in
22,662.05 9,762.86 12,899.19 132% Increase in prepayments for raw materials
advance
Other accounts Increase in suspense payments for non-operating
1,467.43 920.82 546.61 59%
receivable purposes
Purchase of more banks’ wealth management
Other current assets 836,693.02 573,318.86 263,374.16 46%
products
Long-term deferred
246.70 423.82 -177.12 -42% Decrease in amortised expenses on molds
expenses
Banker’s acceptance bills drawn by the Company
Notes payable 319,980.09 195,306.53 124,673.56 64%
were adopted more often in payment
The dividends for some shareholders were unpaid in
Dividends payable 715.07 540.07 175.00 32%
the profit distribution for Y2015 in the current period
January-Sept January-Sept
Item +/- +/- (%) Note
ember 2016 ember 2015
Increase in bad-debt provision as a result of increased
Asset impairment loss 5,301.58 866.84 4,434.74 512%
accounts receivable
Profit on fair value No forward forex contracts signed in the current
0.00 -24.89 24.89 100%
changes period
Non-operating
394.14 845.29 -451.15 -53% Decrease in expenses on the flood control fund
expense
Corporate income tax 20,013.06 13,394.46 6,618.60 49% Increase in total profit
Net profit 106,449.35 79,871.63 26,577.72 33% Increase in sales
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Minority interests’
15,137.10 11,296.40 3,840.70 34% Net profit of subsidiary increased
income
Net cash flows from
-37,600.18 -18,585.37 -19,014.81 -102% Increase in cash paid as dividends
financing activities
II Progress on significant events, as well as the influence and solutions
□ Applicable √ Not applicable
III Commitments of the Company, its shareholders, actual controller, acquirer, directors,
supervisors, senior management or other related parties fulfilled in the Reporting Period or
ongoing at the period-end
Date of
Commitment Type of Term of
Commitment Contents commitment Fulfillment
maker commitment commitment
making
Where the controlling shareholder Midea Group plans to
sell the Company’s shares released from trading
Commitmen moratorium held by it via the bid trading system of the
Commitments
Controlling t concerning Shenzhen Stock Exchange, and Midea Group decreases
made in share 2008.02.28 Long-standing In execution
shareholder shareholding over 5% shares within six months since the first reduction
reform
reduction of holdings, Midea Group will disclose an indicative public
announcement on share selling through the Company two
trading days before its 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,
Commitments
his immediate family, Midea Group and its controlled other
made in
Controlling Commitmen enterprises neither recently nor in the future will engage in
acquisition
shareholder t of avoiding any production or operation activity the same as or similar 2010.12.01,
documents or Long-standing In execution
and actual horizontal to the recently main business of Little Swan or its 2014.06.06
shareholding
controller competition controlled enterprises, as well as will neither engage in nor
alteration
participate in any competitive business the same as the
documents
recently main business of Little Swan or its controlled
enterprises through controlling other economic entities,
institutions, economic organizations. If Little Swan and its
controlled enterprises further developed its scope of the
operation business on the basis of the recently business, and
if the actual controller Mr. He Xiangjian, his immediate
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Wuxi Little Swan Company Limited Third Quarter Report 2016
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.
2. The commitment by Midea Group and the actual
controller on the specification of the related-party
transaction. 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 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
Commitmen execute the approval procedure according to the relevant
Controlling t on the regulations to ensure the fairness of the price of the
shareholder specification related-party transactions; ensure to execute the information 2010.12.01,
Long-standing In execution
and actual of the disclose obligation of related-party transactions according 2014.06.06
controller related-party to the relevant regulations; ensure not to make advantage of
transaction 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.
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Wuxi Little Swan Company Limited Third Quarter Report 2016
3. As for the commitment on independence, Midea Group
and the actual controller Mr. He Xiangjian has promised
Controlling Commitmen that, to further ensure the independent operation of Little
shareholder t on Swan, Mr. He Xiangjian, Midea Group and its controlled 2010.12.01,
Long-standing In execution
and actual independenc other enterprises would maintain the mutual independent in 2014.06.06
controller e terms of personnel, finance, assets, 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
borrowings, up to 8 April 2010, the Financial Settlement
Commitmen
Center of Midea Group had settled all internal deposits and
t on
Controlling borrowings with Hefei Midea Washing Machine Co., Ltd.;
related-party 2010.12.01 Long-standing In execution
shareholder and Midea Group has promised that there will be no more
deposits and
deposits, borrowings or other funds flows incurred between
borrowings
the Financial Settlement Center and Hefei Midea Washing
Machine 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
Commitmen Hefei Midea Washing Machine Co., Ltd. assessed and sold
t on housing to the Company are of no ownership certificates—the
Controlling properties warehouse for half-finished products (176 square meters)
2010.12.01 Long-standing In execution
shareholder with no and the workshop for injection molding (834 square
ownership meters), both located in the old factory on Hewa Road,
certificates Hefei. Midea Group has promised that if loss occurs due to
the said two buildings without ownership certificates in the
asset disposal process in the future, it will assume the loss
thus caused and make compensation to the Company.
6. The commitment by Midea Group on trademarks is
detailed as follows. (1) Concerning the “Midea” trademark:
The use right
Upon approval and implementation of the equity transfer
of the
transaction, Midea Group has promised that it will make
“Royalstar”
sure that Hefei Midea Washing Machine Co., Ltd. uses the
trademark
“Midea” trademark in a proper manner. Hefei Midea
detailed in (2)
Commitmen Washing Machine Co., Ltd. will be allowed to use the
Controlling expired on 31
t on “Midea” trademark with a trademark use fee not more than 2010.12.01 In execution
shareholder March 2013
trademarks that paid by Midea Group (the controlling shareholder of
and was not
Midea Group) and its subsidiaries (currently 3‰ of the
renewed. And
annual sales income generated by products using the
the other
“Midea” trademark), and upon negotiation and signing of
commitment
the “Agreement for Trademark Use”. The related-party
continues.
transactions incurred due to the said use of the “Midea”
trademark will be submitted to the decision-making organ
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Wuxi Little Swan Company Limited Third Quarter Report 2016
of the Company for approval according to the stipulated
procedure. As such, interests of the Company and its
minority shareholders will be safeguarded. (2) Concerning
the “Royalstar” trademark: Midea Group has signed the
“Contract for Trademark Use” with Hefei Royalstar Group
and obtained the ordinary use rights of the “Royalstar”
(both in Chinese and English) trademark. As the transferor
in the transfer transaction of equity interests of Royalstar
Washing Equipment, Midea Group has promised that within
the scope as agreed in the “Contract for Trademark Use”, if
any dispute arises between Hefei Midea Washing Machine
Co., Ltd. and Hefei Royalstar Group over the former’s
execution of the “Contract for Trademark Use”, Little Swan
will not be involved. If Hefei Midea Washing Machine Co.,
Ltd. and Little Swan have to assume any responsibility or
loss due to the aforesaid dispute, Midea Group is willing to
take on the responsibility instead and make compensations
to Hefei Midea Washing Machine Co., Ltd. and Little Swan
at full amount.
7. The commitment by Midea Group on social security
payment and tax risks is detailed as follows. Midea Group
has promised that upon the completion of the said equity
transfer deal, if Hefei Midea Washing Machine Co., Ltd. is
obliged to take on any responsibility or pay relevant fares
as required by relevant government authorities due to its
social security payment before the said deal, Midea Group
is willing to pay relevant fares for Hefei Midea Washing
Commitmen
Machine Co., Ltd. to relevant government authorities in a
t on social
Controlling timely manner and assume any other liability. If any loss
security 2010.12.01 Long-standing In execution
shareholder thus occurs to Hefei Midea Washing Machine Co., Ltd. or
payment and
Little Swan, Midea Group is willing to assume relevant
tax risks
responsibilities for compensation. Upon the completion of
the said equity transfer deal, if income tax evasion or any
other tax risk is found in Hefei Midea Washing Machine
Co., Ltd., 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
Commitmen finance companies of the Company: during the validity
Controlling
t on capital period of the Financial Services Agreement, when Midea 2015.03.18 Three years In execution
shareholder
safety Group occurred emergency situation of payment difficulty
at finance companies, it should adopt the effective measures
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Wuxi Little Swan Company Limited Third Quarter Report 2016
such as increase the capital fund of the finance companies
according to the actual needs of solving the payment
difficulty to ensure the capital safety of the Company.
Commitments
made in time of
asset
restructuring
Commitments
made in time of
IPO or
refinancing
Commitments
concerning
stock ownership
incentive
Other
commitments
made to
minority
shareholders
Executed on
Yes
time
Specific reasons
for failing to
fulfill
N/A
commitments on
time and plans
for next step
IV Performance forecast for Y2016
Warning of possible loss or considerable YoY change in the accumulative net profit made during the
year-beginning to the end of the next reporting period, as well as the reasons
□Applicable √ Not applicable
V Securities investment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Wuxi Little Swan Company Limited Third Quarter Report 2016
VI Investment in derivative financial instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits paid to the Company for purposes of research, communication, interview, etc.
during the Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
Sheet of Investor Relations Activities on 5, 6 July 2016 (No.
2016-07-05 to 2016-07-06 Field research Institution
2016-04) on www.cninfo.com.cn
Sheet of Investor Relations Activities on 10-17 August 2016
2016-08-10 to 2016-08-17 Field research Institution
(No. 2016-05) on www.cninfo.com.cn
Sheet of Investor Relations Activities on 22-28 September
2016-09-22 to 2016-09-28 Field research Institution
2016 (No. 2016-06) on www.cninfo.com.cn
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 2,072,326,734.13 3,042,843,924.81
Settlement reserves
Lendings to banks and other financial institutions
Financial assets measured at fair value with fair value changes included in the
profit and loss for the Reporting Period
Derivative financial assets
Notes receivable 1,953,085,588.14 2,205,189,379.10
Accounts receivable 1,587,691,496.49 896,075,475.63
Accounts paid in advance 226,620,522.71 97,628,578.17
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable 22,536,571.63 22,932,602.74
Dividends receivable
Other accounts receivable 14,674,339.33 9,208,180.08
Financial assets purchased under agreement to resell
Inventories 811,050,787.55 745,412,967.52
Assets held for sale
Non-current assets due within one year
Other current assets 8,366,930,158.87 5,733,188,604.23
Total current assets 15,054,916,198.85 12,752,479,712.28
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 200,000.00 200,000.00
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments
Investment property 65,428,381.37 68,843,047.52
Fixed assets 976,470,361.91 1,019,528,291.60
Construction in progress
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 193,593,020.90 197,521,625.03
R&D expense
Goodwill
Long-term deferred expenses 2,466,998.75 4,238,244.38
Deferred income tax assets 306,719,068.57 251,881,220.89
Other non-current assets 29,587,265.33 32,963,224.90
Total non-current assets 1,574,465,096.83 1,575,175,654.32
Total assets 16,629,381,295.68 14,327,655,366.60
Current liabilities:
Short-term borrowings
Borrowings from the Central Bank
Money deposits accepted and inter-bank deposits
Loans from banks and other financial institutions
Financial liabilities measured at fair value with fair value changes included in the
profit and loss for the Reporting Period
Derivative financial liabilities
Notes payable 3,199,800,850.15 1,953,065,274.06
Accounts payable 2,675,939,708.45 2,419,807,341.95
Accounts received in advance 1,296,793,781.53 1,652,908,781.44
Financial assets sold for repurchase
Handling charges and commissions payable
Payroll payable 209,250,904.65 248,280,716.92
Taxes and fares payable 315,052,471.75 325,108,227.91
Interest payable
Dividends payable 7,150,684.06 5,400,652.06
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Other accounts payable 217,172,901.20 171,807,137.94
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 1,930,899,475.92 1,521,734,293.24
Total current liabilities 9,852,060,777.71 8,298,112,425.52
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable 24,901,715.48 28,439,299.25
Special payables
Estimated liabilities 9,784,866.43 9,981,021.44
Deferred income 3,055,633.26 3,395,533.29
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 37,742,215.17 41,815,853.98
Total liabilities 9,889,802,992.88 8,339,928,279.50
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 1,189,171,898.76 1,164,014,947.85
Less: Treasury stock
Other composite income 69,714,790.97 34,813,284.64
Special reserves
Surplus reserves 332,594,722.29 332,594,722.29
Provisions for general risks
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Retained profit 3,494,585,358.40 2,960,955,454.36
Total equity attributable to owners of the Company 5,718,554,534.42 5,124,866,173.14
Minority interests 1,021,023,768.38 862,860,913.96
Total owners’ equity 6,739,578,302.80 5,987,727,087.10
Total liabilities and owners’ equity 16,629,381,295.68 14,327,655,366.60
2. Balance sheet of the Company
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,197,622,090.28 2,092,430,579.63
Financial assets measured at fair value with fair value changes included in the
profit and loss for the Reporting Period
Derivative financial assets
Notes receivable 1,122,362,535.34 1,410,210,597.47
Accounts receivable 2,841,147,444.70 1,183,394,794.67
Accounts paid in advance 193,294,747.91 98,437,350.05
Interest receivable 18,777,618.64 18,918,219.18
Dividends receivable
Other accounts receivable 20,884,912.71 6,351,010.17
Inventories 532,982,821.58 482,807,868.13
Assets held for sale
Non-current assets due within one year
Other current assets 3,918,154,430.67 3,178,113,808.28
Total current assets 9,845,226,601.83 8,470,664,227.58
Non-current assets:
Available-for-sale financial assets 150,000.00 150,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 1,306,323,041.57 1,306,323,041.57
Investment property 7,246,792.45 8,040,536.02
Fixed assets 488,728,518.74 514,950,803.50
Construction in progress
Engineering materials
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 93,263,742.75 95,281,467.96
R&D expense
Goodwill
Long-term deferred expenses 2,295,495.48 3,873,799.88
Deferred income tax assets 211,768,968.20 159,759,565.25
Other non-current assets 22,289,730.15 23,027,173.60
Total non-current assets 2,132,066,289.34 2,111,406,387.78
Total assets 11,977,292,891.17 10,582,070,615.36
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair value with fair value changes included in the
profit and loss for the Reporting Period
Derivative financial liabilities
Notes payable 1,992,190,097.99 1,519,749,295.73
Accounts payable 2,731,595,434.41 2,038,397,769.71
Accounts received in advance 753,423,299.24 1,060,643,231.20
Payroll payable 153,874,955.15 184,287,498.34
Taxes and fares payable 204,353,801.54 224,024,964.68
Interest payable
Dividends payable 7,150,684.06 5,400,652.06
Other accounts payable 139,188,067.08 95,009,275.20
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 1,293,632,088.86 944,905,437.98
Total current liabilities 7,275,408,428.33 6,072,418,124.90
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Special payables
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 7,275,408,428.33 6,072,418,124.90
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 1,341,908,852.05 1,319,496,538.02
Less: Treasury stock
Other composite income 35,719,567.85 13,608,826.40
Special reserves
Surplus reserves 319,944,578.39 319,944,578.39
Retained profit 2,371,823,700.55 2,224,114,783.65
Total owners’ equity 4,701,884,462.84 4,509,652,490.46
Total liabilities and owners’ equity 11,977,292,891.17 10,582,070,615.36
3. Consolidated income statement for the Reporting Period
Unit: RMB Yuan
July-September
Item July-September 2016
2015
1. Operating revenues 4,070,848,719.32 3,510,072,100.54
Including: Sales income 4,070,848,719.32 3,510,072,100.54
Interest income
Premium income
Fee and commission income
2. Operating costs 3,669,637,983.51 3,198,907,863.33
Including: Cost of sales 3,016,876,202.80 2,583,468,348.47
Interest expenses
Fee and commission expenses
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Business tax and surtaxes 17,636,853.40 19,754,705.85
Selling expenses 539,563,649.92 495,065,883.50
Administrative expenses 101,096,489.36 161,344,800.11
Finance costs -30,617,265.06 -70,719,418.82
Asset impairment loss 25,082,053.07 9,993,544.22
Add: Profit on fair value changes (“-” means loss)
Return on investment (“-” means loss) 63,442,725.63 25,864,076.79
Including: Share of profit/loss of associates and joint ventures
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) 464,653,461.44 337,028,314.00
Add: Non-operating revenue 9,451,463.63 21,611,774.63
Including: Profit on disposal of non-current assets 20,217.78
Less: Non-operating expense 1,706,463.30 3,404,577.63
Including: Loss on disposal of non-current assets 371,314.11
4. Total profit (“-” means loss) 472,398,461.77 355,235,511.00
Less: Corporate income tax 72,828,206.62 55,028,201.18
5. Net profit (“-” means loss) 399,570,255.15 300,207,309.82
Net profit attributable to owners of the Company 332,295,999.87 255,058,086.34
Minority interests’ income 67,274,255.28 45,149,223.48
6. Other comprehensive income net of tax 4,246,647.68 1,226,885.57
Other comprehensive income net of tax attributable to owners of the Company 1,964,616.39 1,226,885.57
6.1 Other comprehensive income that will not be reclassified into profit/loss
6.1.1 Changes in net liabilities or assets with a defined benefit plan upon
re-measurement
6.1.2 Share of other comprehensive income of investees that cannot be
reclassified into profit/loss under the equity method
6.2 Other comprehensive income to be subsequently reclassified into
1,964,616.39 1,226,885.57
profit/loss
6.2.1 Share of other comprehensive income of investees that will be
reclassified into profit/loss under the equity method
6.2.2 Profit/loss on fair value changes of available-for-sale financial assets 1,962,537.08
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Wuxi Little Swan Company Limited Third Quarter Report 2016
6.2.3 Profit/loss on reclassifying held-to-maturity investments into
available-for-sale financial assets
6.2.4 Effective profit/loss on cash flow hedges
6.2.5 Currency translation differences 2,079.31 1,226,885.57
6.2.6 Other
Other comprehensive income net of tax attributable to minority interests 2,282,031.29
7. Total comprehensive income 403,816,902.83 301,434,195.39
Attributable to owners of the Company 334,260,616.26 256,284,971.92
Attributable to minority interests 69,556,286.57 45,149,223.47
8. Earnings per share
8.1 Basic earnings per share 0.53 0.40
8.2 Diluted earnings per share 0.53 0.40
4. Income statement of the Company for the Reporting Period
Unit: RMB Yuan
July-September
Item July-September 2016
2015
1. Operating revenues 2,922,039,454.40 2,647,909,682.72
Less: Operating costs 2,334,276,302.85 2,045,857,912.17
Business tax and surtaxes 12,900,966.92 12,612,735.77
Selling expenses 335,708,432.38 349,207,178.77
Administrative expenses 72,985,560.69 118,831,368.42
Finance costs -20,072,180.35 -48,976,872.61
Asset impairment loss 16,504,313.87 3,828,984.75
Add: profit on fair value changes (“-” means loss)
Return on investment (“-” means loss) 30,279,080.67 16,566,655.20
Including: Share of profit/loss of associates and joint ventures
2. Operating profit (“-” means loss) 200,015,138.70 183,115,030.65
Add: Non-operating revenue 3,387,007.20 10,604,914.48
Including: Profit on disposal of non-current assets
Less: Non-operating expense 674,514.67 1,749,739.07
Including: Loss on disposal of non-current assets 347,731.17
3. Total profit (“-” means loss) 202,727,631.23 191,970,206.06
Less: Corporate income tax 31,992,675.86 29,992,841.90
4. Net profit (“-” means loss) 170,734,955.37 161,977,364.16
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Wuxi Little Swan Company Limited Third Quarter Report 2016
5. Other comprehensive income net of tax -3,229,072.28
5.1 Other comprehensive income that will not be reclassified into profit and loss
5.1.1 Changes in net liabilities or assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other comprehensive income of investees that cannot be
reclassified into profit/loss under the equity method
5.2 Other comprehensive income to be subsequently reclassified into profit/loss -3,229,072.28
5.2.1 Share of other comprehensive income of investees that will be reclassified
into profit/loss under the equity method
5.2.2 Profit/loss on fair value changes of available-for-sale financial assets -3,229,072.28
5.2.3 Profit/loss on reclassifying held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective profit/loss on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 167,505,883.09 161,977,364.16
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated income statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB Yuan
January-September January-September
Item
2016 2015
1. Operating revenues 12,055,635,914.24 9,611,975,965.14
Including: Sales income 12,055,635,914.24 9,611,975,965.14
Interest income
Premium income
Fee and commission income
2. Operating costs 10,948,766,070.41 8,804,565,769.65
Including: Cost of sales 8,829,467,976.48 7,041,009,821.12
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Business tax and surtaxes 62,360,730.86 57,452,288.11
Selling expenses 1,730,895,706.04 1,345,059,132.80
Administrative expenses 367,042,544.04 434,300,798.21
Finance costs -94,016,729.52 -81,924,696.40
Asset impairment loss 53,015,842.51 8,668,425.80
Add: Profit on fair value changes (“-” means loss) -248,907.75
Return on investment (“-” means loss) 130,758,204.67 97,684,604.61
Including: Share of profit/loss of associates and joint ventures
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) 1,237,628,048.50 904,845,892.35
Add: Non-operating revenue 30,937,449.39 36,267,977.30
Including: Profit on disposal of non-current assets 137,055.45 444,371.81
Less: Non-operating expense 3,941,368.67 8,452,933.88
Including: Loss on disposal of non-current assets 609,898.08 684,135.21
4. Total profit (“-” means loss) 1,264,624,129.22 932,660,935.77
Less: Corporate income tax 200,130,598.37 133,944,603.89
5. Net profit (“-” means loss) 1,064,493,530.85 798,716,331.88
Net profit attributable to owners of the Company 913,122,562.45 685,752,354.91
Minority interests’ income 151,370,968.40 112,963,976.97
6. Other comprehensive income net of tax 40,511,423.04 1,200,139.88
Other comprehensive income net of tax attributable to owners of the Company 34,901,506.32 1,200,139.88
6.1 Other comprehensive income that will not be reclassified into profit/loss
6.1.1 Changes in net liabilities or assets with a defined benefit plan upon
re-measurement
6.1.2 Share of other comprehensive income of investees that cannot be
reclassified into profit/loss under the equity method
6.2 Other comprehensive income to be subsequently reclassified into
34,901,506.32 1,200,139.88
profit/loss
6.2.1 Share of other comprehensive income of investees that will be
reclassified into profit/loss under the equity method
6.2.2 Profit/loss on fair value changes of available-for-sale financial assets 34,892,633.31
6.2.3 Profit/loss on reclassifying held-to-maturity investments into
available-for-sale financial assets
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Wuxi Little Swan Company Limited Third Quarter Report 2016
6.2.4 Effective profit/loss on cash flow hedges
6.2.5 Currency translation differences 8,873.01 1,200,139.88
6.2.6 Other
Other comprehensive income net of tax attributable to minority interests 5,609,916.72
7. Total comprehensive income 1,105,004,953.89 799,916,471.76
Attributable to owners of the Company 948,024,068.77 686,952,494.78
Attributable to minority interests 156,980,885.12 112,963,976.98
8. Earnings per share
8.1 Basic earnings per share 1.44 1.08
8.2 Diluted earnings per share 1.44 1.08
6. Income statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB Yuan
January-September January-September
Item
2016 2015
1. Operating revenues 8,967,860,546.46 7,156,452,912.99
Less: Operating costs 6,859,231,278.20 5,464,993,451.84
Business tax and surtaxes 46,137,270.20 38,003,931.52
Selling expenses 1,230,788,719.89 971,149,732.18
Administrative expenses 282,209,180.40 313,002,396.68
Finance costs -65,789,102.80 -54,431,862.98
Asset impairment loss 38,000,316.38 2,590,943.92
Add: profit on fair value changes (“-” means loss) -169,471.35
Return on investment (“-” means loss) 47,585,175.04 59,711,217.63
Including: Share of profit/loss of associates and joint ventures
2. Operating profit (“-” means loss) 624,868,059.23 480,686,066.11
Add: Non-operating revenue 6,170,352.44 13,977,041.12
Including: Profit on disposal of non-current assets 99,572.65 184,324.80
Less: Non-operating expense 1,109,079.32 5,101,838.54
Including: Loss on disposal of non-current assets 582,622.45 111,821.73
3. Total profit (“-” means loss) 629,929,332.35 489,561,268.69
Less: Corporate income tax 102,727,757.06 61,153,089.84
4. Net profit (“-” means loss) 527,201,575.29 428,408,178.85
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Wuxi Little Swan Company Limited Third Quarter Report 2016
5. Other comprehensive income net of tax 22,110,741.45
5.1 Other comprehensive income that will not be reclassified into profit and loss
5.1.1 Changes in net liabilities or assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other comprehensive income of investees that cannot be
reclassified into profit/loss under the equity method
5.2 Other comprehensive income to be subsequently reclassified into profit/loss 22,110,741.45
5.2.1 Share of other comprehensive income of investees that will be reclassified
into profit/loss under the equity method
5.2.2 Profit/loss on fair value changes of available-for-sale financial assets 22,110,741.45
5.2.3 Profit/loss on reclassifying held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective profit/loss on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 549,312,316.74 428,408,178.85
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated cash flow statement for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB Yuan
January-September January-September
Item
2016 2015
1. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 10,031,334,899.28 8,539,671,109.04
Net increase in money deposits from customers and interbank placements
Net increase in loans from the Central Bank
Net increase in funds borrowed from other financial institutions
Cash received from premium of original insurance contracts
Net cash received from reinsurance business
Net increase in deposits of policy holders and investment fund
Net increase in disposal of financial assets at fair value through profit/loss
Interest, fees and commissions received
Net increase in interbank borrowings
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Net increase in funds in repurchase business
Tax refunds received 60,063,076.13 47,592,234.87
Cash received from other operating activities 72,368,190.31 88,908,550.74
Subtotal of cash inflows from operating activities 10,163,766,165.72 8,676,171,894.65
Cash paid for goods and services 5,404,416,316.25 3,685,447,682.88
Net increase in loans and advances to customers
Net increase in funds deposited in the Central Bank and interbank placements
Cash paid for claims of original insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 679,507,180.35 658,321,640.98
Taxes and fares paid 640,844,887.26 475,664,243.74
Cash paid for other operating activities 1,511,703,696.63 1,283,515,207.24
Subtotal of cash outflows from operating activities 8,236,472,080.49 6,102,948,774.84
Net cash flows from operating activities 1,927,294,085.23 2,573,223,119.81
2. Cash flows from investing activities:
Cash received from retraction of investments 6,210,000,000.00 5,143,950,000.00
Cash received as return on investments 130,758,204.67 97,933,583.98
Net cash received from disposal of fixed assets, intangible assets and other
823,553.94 462,167.75
long-term assets
Net cash received from disposal of subsidiaries or other business units
Cash received from other investing activities 48,649,720.52
Subtotal of cash inflows from investing activities 6,390,231,479.13 5,242,345,751.73
Cash paid to acquire fixed assets, intangible assets and other long-term assets 17,222,953.39 63,575,280.09
Cash paid for investment 8,756,000,000.00 7,681,050,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities
Subtotal of cash outflows from investing activities 8,773,222,953.39 7,744,625,280.09
Net cash flows from investing activities -2,382,991,474.26 -2,502,279,528.36
3. Cash flows from financing activities:
Cash received from capital contributions
Including: Cash received from minority shareholder investments by subsidiaries
Cash received as borrowings 214,745,075.98
Cash received from issuance of bonds
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Cash received from other financing activities
Subtotal of cash inflows from financing activities 214,745,075.98
Repayment of borrowings 114,978,442.79
Cash paid for interest expenses and distribution of dividends or profit 376,001,781.77 285,620,324.29
Including: dividends or profit paid by subsidiaries to minority interests
Cash paid for other financing activities
Sub-total of cash outflows from financing activities 376,001,781.77 400,598,767.08
Net cash flows from financing activities -376,001,781.77 -185,853,691.10
4. Effect of foreign exchange rate changes on cash and cash equivalents
5. Net increase in cash and cash equivalents -831,699,170.80 -114,910,099.65
Add: Opening balance of cash and cash equivalents 2,792,685,328.69 1,516,739,804.86
6. Closing balance of cash and cash equivalents 1,960,986,157.89 1,401,829,705.21
8. Cash flow statement of the Company for the period from the year-beginning to the end of the Reporting
Period
Unit: RMB Yuan
January-September January-September
Item
2016 2015
1. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 5,783,703,284.45 4,942,262,530.17
Tax refunds received 4,291,106.27
Cash received from other operating activities 38,053,714.94 57,770,418.14
Subtotal of cash inflows from operating activities 5,821,756,999.39 5,004,324,054.58
Cash paid for goods and services 3,722,465,740.78 1,827,998,436.15
Cash paid to and for employees 458,460,415.27 435,882,808.80
Taxes and fares paid 449,874,162.78 285,171,204.10
Cash paid for other operating activities 1,083,982,648.54 896,760,873.18
Subtotal of cash outflows from operating activities 5,714,782,967.37 3,445,813,322.23
Net cash flows from operating activities 106,974,032.02 1,558,510,732.35
2. Cash flows from investing activities:
Cash received from retraction of investments 3,685,000,000.00 3,495,100,000.00
Cash received as return on investments 47,585,175.04 59,960,197.00
Net cash received from disposal of fixed assets, intangible assets and other
791,986.33 98,032.70
long-term assets
Net cash received from disposal of subsidiaries or other business units
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Wuxi Little Swan Company Limited Third Quarter Report 2016
Cash received from other investing activities 39,953,305.21
Subtotal of cash inflows from investing activities 3,773,330,466.58 3,555,158,229.70
Cash paid to acquire fixed assets, intangible assets and other long-term assets 5,841,421.83 29,652,085.40
Cash paid for investment 4,236,000,000.00 4,537,000,000.00
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities
Subtotal of cash outflows from investing activities 4,241,841,421.83 4,566,652,085.40
Net cash flows from investing activities -468,510,955.25 -1,011,493,855.70
3. Cash flows from financing activities:
Cash received from capital contributions
Cash received as borrowings 15,234,122.32
Cash received from issuance of bonds
Cash received from other financing activities
Subtotal of cash inflows from financing activities 15,234,122.32
Repayment of borrowings 15,234,122.32
Cash paid for interest expenses and distribution of dividends or profit 376,001,781.77 284,785,192.80
Cash paid for other financing activities
Sub-total of cash outflows from financing activities 376,001,781.77 300,019,315.12
Net cash flows from financing activities -376,001,781.77 -284,785,192.80
4. Effect of foreign exchange rate changes on cash and cash equivalents
5. Net increase in cash and cash equivalents -737,538,705.00 262,231,683.85
Add: Opening balance of cash and cash equivalents 1,866,443,114.64 600,231,105.51
6. Closing balance of cash and cash equivalents 1,128,904,409.64 862,462,789.36
II Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is unaudited.
Legal representative: Fang Hongbo
Wuxi Little Swan Company Limited
25 October 2016
27
