Wuxi Little Swan Company Limited Semi-Annual Report 2017 (Abstract) Stock Code: 000418, 200418 Stock Name: Little Swan A, Little Swan B Announcement No.: 2017-17 WUXI LITTLE SWAN COMPANY LIMITED SEMI-ANNUAL REPORT 2017 (ABSTRACT) I Important Notes This Abstract is based on the full text of the Semi-Annual Report. In order for a full understanding of the operating results, financial condition and future development planning of the Company, investors are kindly reminded to read the full text carefully on the media designated by the China Securities Regulatory Commission (the “CSRC”). All directors attended the board meeting for the review of this Report. This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. II Company Profile 1. Stock Profile Stock name Little Swan A, Little Swan B Stock code 000418, 200418 Stock exchange Shenzhen Stock Exchange Contact information Board Secretary Securities Representative Name Ms. Zhou Sixiu Mr. Zhao Yulin No. 18, Changjiang Road S., National Hi-tech No. 18, Changjiang Road S., National Hi-tech Office address Development Zone, Wuxi, Jiangsu Province, Development Zone, Wuxi, Jiangsu Province, P.R.China P.R.China Tel. 0510-81082320 0510-81082377 E-mail ir@littleswan.com.cn ir@littleswan.com.cn 2. Key Operating Results Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. □ Yes √ No Reporting Period Same period of last year +/- (%) Operating revenues (RMB) 10,568,060,854.21 7,984,787,194.92 32.35% Net profit attributable to shareholders of the Company (RMB) 731,540,502.47 580,826,562.58 25.95% Net profit attributable to shareholders of the Company before 714,797,214.75 567,444,003.06 25.97% exceptional profit and loss (RMB) 1 Wuxi Little Swan Company Limited Semi-Annual Report 2017 (Abstract) Net cash generated by operating activities (RMB) -142,410,692.24 1,607,097,392.88 -108.86% Basic earnings per share (RMB/share) 1.16 0.92 26.09% Diluted earnings per share (RMB/share) 1.16 0.92 26.09% Weighted average return on equity (%) 11.69% 10.82% 0.87% End of Reporting Period End of last year +/- (%) Total assets (RMB) 18,655,287,176.82 18,885,986,837.64 -1.22% Net assets attributable to shareholders of the Company (RMB) 6,237,082,827.17 5,983,847,862.72 4.23% 3. Shareholders and Their Holdings at Period-End Unit: share Total number of common shareholders at Total number of preference shareholders with 20,964 0 period-end resumed voting rights at period-end (if any) Top 10 shareholders Pledged or frozen Restricted shares Shareholding Total shares Name of shareholder Nature of shareholder shares percentage held 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 3.74% 23,664,125 NATIONAL SOCIAL SECURITY Domestic non-state-owned 3.34% 21,097,464 FUND PORTFOLIO 108 corporation GREENWOODS CHINA ALPHA Foreign corporation 2.82% 17,846,794 MASTER FUND FINANCE BUREAU OF WUXI State-owned corporation 2.70% 17,054,071 NATIONAL SOCIAL SECURITY Domestic non-state-owned 2.17% 13,709,256 FUND PORTFOLIO 101 corporation CENTRAL HUIJIN ASSET State-owned corporation 1.61% 10,156,300 MANAGEMENT CO., LTD. HONG KONG SECURITIES Foreign corporation 1.34% 8,471,606 CLEARING COMPANY LTD. INDUSTRIAL AND COMMERCIAL BANK OF CHINA-CHINA Domestic non-state-owned UNIVERSAL GROWTH FOCUS 1.15% 7,288,881 corporation MIXED SECURITIES INVESTMENT FUND Midea Group Co., Ltd. and Titoni Investments Development Related or acting-in-concert parties among shareholders above Ltd. are parties acting in concert. Shareholders conducting securities margin trading (if any) N/A 2 Wuxi Little Swan Company Limited Semi-Annual Report 2017 (Abstract) III Performance Discussion and Analysis 1. Performance Review for Reporting Period In the first half of 2017, China’s economy expanded steadily while the world economy continued to recover. With real estate tightening policies and the RMB in stabilization and recovery, China’s home appliance industry kept seeking for growth in the “New Normal Economic State”. In the Reporting Period, increased general costs of home appliance makers caused by high-priced raw materials boosted the prices of end products; large-capacity, intelligent and healthy household appliances have become more and more favored; and factors such as changing consumption, evolving manufacturing and distribution systems and deeper technological research and development have changed the value chain substantially. Domestically, with the popularization of washing machines, the future growth point for such manufacturers lies in product structure upgrading by developing and introducing new types of products and products with new functions. Considering the burgeoning clothes drying demand resulted from changing living environments and habits, washer-dryers and freestanding dryers are expected to be in great need. Internationally, mature markets such as the American and European countries with a high washer ownership rate, mainly look for renewal; while emerging markets with fewer washers seek for new machines largely. Due to the noticeable pick-up in export of washing machines as a result of the gradual recovery of the global economy, international business is estimated to be more profitable. According to ChinaIOL, a surveying company, China saw the sales of 30.021 million washing machines in the first half of 2017, up 9.2% on a year-on-year basis, of which 20.3 million units were sold domestically, representing an increase of 6.9%, and 9.721 million units were exported, up 14.4%. In the first six months of 2017, the Company continued to adhere closely to its core strategy of “Advanced Products, Efficiency-Driven Growth and Global Operations” and focus on its main business of washing machines, as well as the needs of its customers. It furthered its operational transformation, strengthened research and development, improved product quality, expanded overseas markets and promoted manufacturing and efficiency improvement, which has helped increase its core competitiveness and resulted in good operating results. For the six months ended June 30, 2017, the Company achieved consolidated operating revenues of RMB10.57 billion, up 32.4% compared to the same period of last year. The net profit attributable to shareholders of the Company stood at RMB0.73 billion, representing a 26.0% growth. And the consolidated gross profit margin was 25.6%. 2. Matters Related to Financial Report (1) Changes in Accounting Policies, Accounting Estimations and Measurement Methods Compared to Last Accounting Period □ Applicable √ Not applicable No such cases. 3 Wuxi Little Swan Company Limited Semi-Annual Report 2017 (Abstract) (2) Retroactive Restatements due to Correction of Significant Accounting Errors in the Reporting Period □ Applicable √ Not applicable No such cases. (3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting Period □ Applicable √ Not applicable No such cases. Wuxi Little Swan Company Limited Legal Representative: Fang Hongbo August 5, 2017 4