Wuxi Little Swan Company Limited First Quarter Report 2018
WUXI LITTLE SWAN COMPANY LIMITED
FIRST QUARTER REPORT 2018
April 2018
1
Wuxi Little Swan Company Limited First Quarter Report 2018
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of Wuxi Little Swan Company Limited (inclusive of its
consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent
Company”, except where the context otherwise requires) hereby guarantee the factuality,
accuracy and completeness of the contents of this Report, and shall be jointly and severally
liable for any misrepresentations, misleading statements or material omissions in this Report.
All the Company’s Directors have attended the Board meeting for the review of this Report.
Mr. Fang Hongbo, the Company’s legal representative, Mr. Sun Yunan, the Company’s Chief
Financial Officer, and Mr. Xu Yunwei, the Company’s Financial Manager hereby guarantee
that the Financial Statements carried in this Report are 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 First Quarter Report 2018
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
January-March 2018 January-March 2017 Change
Sales revenue (RMB) 6,811,940,933.68 5,690,391,543.42 19.71%
Net income attributable to shareholders of the listed company
511,022,240.89 397,203,444.77 28.66%
(RMB)
Net income attributable to shareholders of the listed company
501,731,839.62 395,282,206.35 26.93%
before nonrecurring gains and losses (RMB)
Net cash flows from operating activities (RMB) 284,655,859.29 -168,999,611.82 268.44%
Basic earnings per share (RMB/share) 0.81 0.63 28.57%
Diluted earnings per share (RMB/share) 0.81 0.63 28.57%
Weighted average return on equity (%) 7.00% 6.44% 0.56%
March 31, 2018 December 31, 2017 Change
Total assets (RMB) 20,206,161,602.80 21,338,421,243.67 -5.31%
Equity attributable to shareholders of the listed company (RMB) 7,579,336,795.32 7,047,090,800.97 7.55%
Nonrecurring gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2018 Note
Gains/Losses on disposal of non-current assets (inclusive of offset impairment allowances) 87,113.61
Gains/Losses on changes in fair value of trading financial assets and liabilities &
investment income from disposal of trading financial assets and liabilities and
6,945,462.90
available-for-sale financial assets (exclusive of effective portion of hedges related to
normal business operations of the Company)
Other 7,404,991.62
Less: Income tax effects 3,071,540.09
Non-controlling interests effects (net of tax) 2,075,626.77
Total 9,290,401.27 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
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Wuxi Little Swan Company Limited First Quarter Report 2018
Public—Nonrecurring Gains and Losses, or reclassifies any nonrecurring gain/loss item listed in the said
explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Top 10 Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Preferred shareholders with resumed voting
Common shareholders at period-end 16,192 0
rights at period-end (if any)
Top 10 shareholders
Shareholding Pledged or
Restricted
Name of shareholder Nature of shareholder percentage at Shares frozen shares
shares
period-end (%) Status Shares
Domestic non-state-owned
MIDEA GROUP CO., LTD. 37.78% 238,948,117
juridical person
TITONI INVESTMENTS
Foreign juridical person 14.89% 94,204,942
DEVELOPMENT LTD.
GAOLING FUND,L.P. Foreign juridical person 3.74% 23,664,125
NATIONAL SOCIAL SECURITY Domestic non-state-owned
3.02% 19,104,112
FUND PORTFOLIO 108 juridical person
HONGKONG SECURITIES
Foreign juridical person 2.96% 18,697,422
CLEARING CO., LTD
GREENWOODS CHINA ALPHA
Foreign juridical person 2.81% 17,787,068
MASTER FUND
FINANCE BUREAU OF WUXI State-owned juridical person 2.70% 17,054,071
NATIONAL SOCIAL SECURITY Domestic non-state-owned
1.64% 10,362,275
FUND PORTFOLIO 101 juridical person
AGRICULTURAL BANK OF
CHINA－E FUND COMSUMPTION Domestic non-state-owned
1.62% 10,240,504
SECTOR STOCK SECURITIES juridical person
INVESTMENT FUND
CENTRAL HUIJIN ASSET
State-owned juridical person 1.61% 10,156,300
MANAGEMENT CO., LTD.
Top 10 non-restricted shareholders
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Wuxi Little Swan Company Limited First Quarter Report 2018
Non-restricted shares Type of shares
Name of shareholder
held at period-end Type Shares
MIDEA GROUP CO., LTD. 238,948,117 RMB common stock 238,948,117
Domestically listed stock
TITONI INVESTMENTS DEVELOPMENT LTD. 94,204,942 94,204,942
for foreign investors
Domestically listed stock
GAOLING FUND,L.P. 23,664,125 23,664,125
for foreign investors
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108 19,104,112 RMB common stock 19,104,112
HONGKONG SECURITIES CLEARING CO., LTD 18,697,422 RMB common stock 18,697,422
Domestically listed stock
GREENWOODS CHINA ALPHA MASTER FUND 17,787,068 17,787,068
for foreign investors
FINANCE BUREAU OF WUXI 17,054,071 RMB common stock 17,054,071
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 101 10,362,275 RMB common stock 10,362,275
AGRICULTURAL BANK OF CHINA－E FUND
COMSUMPTION SECTOR STOCK SECURITIES 10,240,504 RMB common stock 10,240,504
INVESTMENT FUND
CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD. 10,156,300 RMB common stock 10,156,300
MIDEA GROUP CO., LTD. and TITONI INVESTMENTS
Related or acting-in-concert parties among shareholders above
DEVELOPMENT LTD. are parties acting in concert.
Shareholders conducting securities margin trading (if any) N/A
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Wuxi Little Swan Company Limited First Quarter Report 2018
Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
Unit: RMB’0,000 (in RMB ten thousand)
March 31, December
Item Change Change (%) Explanation of why
2018 31, 2017
Increase in receivable interest on
Interest receivable 14,473.93 6,094.39 8,379.54 137.50%
structured deposits
Decrease in receivables from third-party
Other receivables 2,436.92 4,722.45 -2,285.53 -48.40%
payment platforms
Inventories 93,979.50 198,076.62 -104,097.12 -52.55% Faster inventory turnover
Increase in advance equipment and
Other non-current assets 6,177.72 2,733.19 3,444.53 126.03%
tooling
Short-term borrowings 0 8,139.37 -8,139.37 -100.00% Repayment of due borrowings
Increase in self-issued bank acceptance
Notes payable 394,771.28 280,580.46 114,190.82 40.70%
bills used in payment
Advances from
97,759.93 306,581.58 -208,821.65 -68.11% Effect of sales cycle
customers
Payment of 2017 year-end performance
Payroll payable 23,943.17 34,948.38 -11,005.21 -31.49%
bonuses to employees
January-Ma January-Ma
Item Change Change (%) Explanation of why
rch 2018 rch 2017
Finance costs -6,954.22 -1,840.06 -5,114.16 277.93% Increase in interest income
Decreased losses on accounts receivable
Asset impairment loss -994.28 -372.09 -622.19 -167.21%
and other receivables
Decreased income from investments in
Investment income 3,911.33 10,318.76 -6,407.43 -62.09%
bank’s wealth management products due
Income tax expense 12,497.34 7,958.56 4,538.78 57.03% Growing sales
Net income 56,939.91 43,841.57 13,098.34 29.88% Growing sales
Net income attributable
to non-controlling 5,837.68 4,121.23 1,716.45 41.65% Increased net income of subsidiaries
interests
Increase in proceeds from sale of
Net cash flows from commodities and rendering of services, as
28,465.59 -16,899.96 45,365.55 268.44%
operating activities well as decrease in cash used in other
operating activities
Net cash flows from Increased expenditure on purchase of
-51,063.11 -3,112.29 -47,950.82 -1540.69%
investing activities structured deposits
Net cash flows from Increase in borrowing repayments and
-9,066.94 -6,035.80 -3,031.14 -50.22%
financing activities interest payments
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Wuxi Little Swan Company Limited First Quarter Report 2018
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018,
as well as explanation of why:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
Unit: RMB’0,000
Openi
Relation Rela Initial Impair Proportion of Actual
ng Purchase Sold in Closing
ship ted Type of invest ment closing investment gain/loss
Operat Startin Endin invest d in the the investme
with the trans derivativ ment provisi amount in the in the
or g date g date ment Reportin Reportin nt
Compan actio e amoun on (if Company’s Reporting
amoun g Period g Period amount
y n t any) closing net assets Period
t
Forward
Not 09/11/ 03/06/
Bank Not forex 17,676 17,676 9,581 12,098 0 15,159 1.72% 695
related 2017 2019
contract
Total 17,676 -- -- 17,676 9,581 12,098 0 15,159 1.72% 695
Source of money used for investment All from the Company’s own funds
Legal matters involved (if applicable) N/A
Disclosure date of board announcement
03/13/2018
approving derivative investment (if any)
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Wuxi Little Swan Company Limited First Quarter Report 2018
Disclosure date of shareholders’
meeting announcement approving 04/12/2018
derivative investment (if any)
The Company has considered and formulated the Management Methods for Forex Trading
Business to implement full assessment and control on its derivative investments, with
highlights as follows:
1. About market risk: Exchange rate fluctuations may cause great risk to the Company’s
forex trading business. For instance, failure of capital required to arrive in time for
performance in forex trading could result in loss and default.
Control measures: Speculative trading is not allowed and a prudent and steady principle is
adopted. A hierarchical management mechanism has been implemented, whereby the
operating unit which has submitted applications for funds business should conduct a risk
analysis on the conditions and environment that could affect the operating profit and loss,
evaluate the possible greatest revenue and loss, and report the greatest acceptable margin
ratio or total margin amount, so that the Company can update the operating status of the
funds business on a timely basis thus ensuring the arrangement of proper funds before
Analysis of risks and control measures
expiry dates.
associated with derivative investments
2. About operational risk: Risks caused by imperfect internal processes, staff, systems and
held in Reporting Period (including but
external issues may cause the Company to incur losses during the course of its forex
not limited to market risk, liquidity risk,
trading business.
credit risk, operational risk, legal risk,
Control measures: The Company has not only developed relevant management systems
etc.)
that clearly define the assignment of responsibility and approval process for forex trading,
but has also established a well-developed monitoring mechanism, aimed at effectively
reducing operational risk by strengthening its risk control over the business,
decision-making and trading processes.
3. About legal risk: The Company's forex trading business is conducted in compliance
with laws and regulations, with clearly defined responsibilities and obligations between
the Company and agencies.
Control measures: The Company has designated relevant departments with the
responsibility for enhancing expertise in laws, regulations and market rules, conducting
strict examination and verification of contracts, defining responsibility and obligations,
and strengthening compliance checks, so as to ensure that the Company's derivatives
investment and position operations meet the requirements of the laws and regulations and
internal management system of the Company.
Changes in market prices or fair value
of derivative investments in Reporting
Forward forex quotations announced by the Bank of China are used in the fair value
Period (fair value analysis should
analysis of the Company’s derivative investments.
include measurement method and
related assumptions and parameters)
Significant changes in accounting
policies and specific accounting No significant changes
principles adopted for derivative
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Wuxi Little Swan Company Limited First Quarter Report 2018
investments in Reporting Period
compared to last reporting period
The independent directors of the Company are of the opinion that the Company has
formulated the Management Methods for Forex Trading Business to, which enables the
Company to effectively control risks associated with derivative investment; that for the
Reporting Period, derivative investment was conducted mainly on the Company’s export
Opinion of independent directors on
business by signing forward forex contracts with domestic financial institutions to lock in
derivative investments and risk control
exchange rates and avoid risk caused by exchange rate fluctuations; that no speculative
trading is allowed, leading to no risk of non-performance; and that trading deadlines are
all set according to the Company’s expected payments and collections of payments, with
no impact on the Company’s liquidity.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
Date of visit Way of visit Type of visitor About
Little Swan A: The Sheet of Interactions with Investors for
01/24/2018-02/02/2018 By one-on-one meeting Institution
01/24/2018-02/02/2018 (No. 2018-01) on www.cninfo.com.cn
Little Swan A: The Sheet of Interactions with Investors for
03/15/2018-03/22/2018 By one-on-one meeting Institution
03/15/2018-03/22/2018 (No. 2018-02) on www.cninfo.com.cn
VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Money by Its Controlling Shareholder or Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Wuxi Little Swan Company Limited First Quarter Report 2018
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Unit: RMB
Item March 31, 2018 December 31, 2017
Current assets:
Monetary assets 1,271,773,331.64 1,588,264,516.05
Settlement reserve
Interbank loans granted
Financial assets at fair value through profit or loss 5,613,055.93 5,270,238.03
Derivative financial assets
Notes receivable 1,412,435,821.52 1,283,192,684.28
Accounts receivable 1,570,536,470.78 1,736,724,496.10
Prepayments 86,962,767.01 84,346,792.38
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Interest receivable 144,739,297.76 60,943,907.98
Dividends receivable
Other receivables 24,369,209.61 47,224,454.09
Financial assets purchased under resale agreements
Inventories 939,795,035.02 1,980,766,196.14
Assets classified as held for sale
Current portion of non-current assets
Other current assets 12,958,089,894.05 12,778,240,745.22
Total current assets 18,414,314,883.32 19,564,974,030.27
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 200,000.00 200,000.00
Held-to-maturity investments
Long-term receivables
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Wuxi Little Swan Company Limited First Quarter Report 2018
Long-term equity investments
Investment property 60,732,798.00 61,695,825.00
Property, plant and equipment 1,023,793,861.63 1,029,668,355.84
Construction in progress 37,972,252.60 37,972,252.60
Construction materials
Proceeds from disposal of property, plant and equipment
Productive living assets
Oil and gas assets
Intangible assets 185,735,812.56 187,045,347.27
R&D expense
Goodwill
Long-term prepaid expense 20,298,651.93 22,382,020.52
Deferred income tax assets 401,336,178.27 407,151,474.64
Other non-current assets 61,777,164.49 27,331,937.53
Total non-current assets 1,791,846,719.48 1,773,447,213.40
Total assets 20,206,161,602.80 21,338,421,243.67
Current liabilities:
Short-term borrowings 81,393,672.34
Borrowings from central bank
Customer deposits and deposits from banks and other financial institutions
Interbank loans obtained
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable 3,947,712,802.38 2,805,804,600.41
Accounts payable 2,917,691,285.52 3,827,025,700.10
Advances from customers 977,599,266.52 3,065,815,801.93
Financial assets sold under repurchase agreements
Handling charges and commissions payable
Payroll payable 239,431,744.09 349,483,844.76
Taxes payable 585,241,670.62 638,017,523.31
Interest payable
Dividends payable 6,996,784.06 6,996,784.06
Other payables 172,114,674.22 221,120,863.48
Reinsurance payables
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Wuxi Little Swan Company Limited First Quarter Report 2018
Insurance contract reserve
Payables for trading of securities
Payables for underwriting of securities
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities
Other current liabilities 2,533,953,221.38 2,107,700,604.61
Total current liabilities 11,380,741,448.79 13,103,359,395.00
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable 10,766,220.39 12,021,620.17
Specific payables
Provisions 2,253,082.25 2,253,082.25
Deferred income 2,375,833.20 2,489,133.21
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 15,395,135.84 16,763,835.63
Total liabilities 11,396,136,584.63 13,120,123,230.63
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 1,273,836,088.24 1,252,947,546.80
Less: Treasury shares
Other comprehensive income 40,831,578.90 40,496,366.85
Specific reserve
Surplus reserves 332,594,722.29 332,594,722.29
General reserve
Retained earnings 5,299,586,641.89 4,788,564,401.03
Total equity attributable to owners of Parent Company 7,579,336,795.32 7,047,090,800.97
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Wuxi Little Swan Company Limited First Quarter Report 2018
Non-controlling interests 1,230,688,222.85 1,171,207,212.07
Total owners’ equity 8,810,025,018.17 8,218,298,013.04
Total liabilities and owners’ equity 20,206,161,602.80 21,338,421,243.67
2. Parent Company Balance Sheet
Unit: RMB
Item March 31, 2018 December 31, 2017
Current assets:
Monetary assets 618,859,499.84 1,030,061,384.78
Financial assets at fair value through profit or loss 3,977,876.32 3,724,810.47
Derivative financial assets
Notes receivable 886,592,162.01 938,342,347.95
Accounts receivable 2,730,601,135.45 2,805,194,600.27
Prepayments 35,435,471.89 67,278,861.92
Interest receivable 86,493,401.98 32,913,208.23
Dividends receivable
Other receivables 16,493,060.57 28,973,048.36
Inventories 607,667,918.37 1,206,334,183.68
Assets classified as held for sale
Current portion of non-current assets
Other current assets 7,363,835,377.77 7,259,605,039.27
Total current assets 12,349,955,904.20 13,372,427,484.93
Non-current assets:
Available-for-sale financial assets 150,000.00 150,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 958,235,041.57 958,235,041.57
Investment property 7,793,054.18 7,882,440.32
Property, plant and equipment 533,240,289.57 532,803,209.18
Construction in progress 37,321,733.68 37,321,733.68
Construction materials
Proceeds from disposal of property, plant and equipment
Productive living assets
Oil and gas assets
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Wuxi Little Swan Company Limited First Quarter Report 2018
Intangible assets 89,228,292.25 89,900,867.32
R&D expense
Goodwill
Long-term prepaid expense 5,380,109.33 5,905,684.35
Deferred income tax assets 256,020,042.65 225,186,332.58
Other non-current assets 37,047,261.57 17,138,349.61
Total non-current assets 1,924,415,824.80 1,874,523,658.61
Total assets 14,274,371,729.00 15,246,951,143.54
Current liabilities:
Short-term borrowings 16,806,882.34
Financial liabilities at fair value through profit or loss
Derivative financial liabilities
Notes payable 2,430,401,571.97 1,678,546,630.26
Accounts payable 3,552,213,880.40 4,395,361,312.16
Advances from customers 541,459,104.70 1,862,974,982.38
Payroll payable 177,588,225.93 268,065,495.23
Taxes payable 396,756,392.17 353,920,883.93
Interest payable
Dividends payable 6,996,784.06 6,996,784.06
Other payables 108,050,202.27 146,982,721.63
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities
Other current liabilities 1,591,423,865.26 1,336,384,942.60
Total current liabilities 8,804,890,026.76 10,066,040,634.59
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income
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Wuxi Little Swan Company Limited First Quarter Report 2018
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 8,804,890,026.76 10,066,040,634.59
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 1,423,834,473.93 1,405,575,239.68
Less: Treasury shares
Other comprehensive income 27,894,950.78 27,970,054.39
Specific reserve
Surplus reserves 319,944,578.39 319,944,578.39
Retained earnings 3,065,319,935.14 2,794,932,872.49
Total owners’ equity 5,469,481,702.24 5,180,910,508.95
Total liabilities and owners’ equity 14,274,371,729.00 15,246,951,143.54
3. Consolidated Income Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Operating revenue 6,811,940,933.68 5,690,391,543.42
Including: Sales revenue 6,811,940,933.68 5,690,391,543.42
Interest revenue
Premium revenue
Handling charge and commission revenue
2. Cost of operating revenue 6,177,665,009.55 5,288,019,742.72
Including: Cost of sales 4,955,290,678.71 4,228,707,468.84
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
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Wuxi Little Swan Company Limited First Quarter Report 2018
Reinsurance premium expense
Taxes and surtaxes 31,716,440.26 29,239,701.58
Selling expense 1,026,609,941.05 862,300,832.44
Administrative expense 243,532,933.75 189,893,301.82
Finance costs -69,542,219.96 -18,400,643.85
Asset impairment losses -9,942,764.26 -3,720,918.11
Add: Gains on changes in fair value (“-” for losses) 342,817.90
Investment income (“-” for loss) 39,113,264.51 103,187,613.01
Including: Share of profit or loss of joint ventures and associates
Foreign exchange gains (“-” for losses)
Asset disposal income (“-” for loss) 87,113.61 354,558.14
Other income 18,401,624.34
3. Operating income (“-” for loss) 692,220,744.49 505,913,971.85
Add: Non-operating revenue 2,325,811.45 12,394,166.45
Less: Non-operating expense 174,119.84 306,775.41
4. Pretax income (“-” for loss) 694,372,436.10 518,001,362.89
Less: Income tax expense 124,973,358.33 79,585,643.44
5. Net income (“-” for net loss) 569,399,077.77 438,415,719.45
5.1 Net income from continuing operations (“-” for net loss)
5.2 Net income from discontinued operations (“-” for net loss)
Attributable to owners of Parent Company 511,022,240.89 397,203,444.77
Attributable to non-controlling interests 58,376,836.88 41,212,274.68
6. Other comprehensive income, net of tax 518,838.47 -32,896,936.37
Attributable to owners of Parent Company 335,212.02 -26,288,602.05
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes in net liabilities or assets caused by re-measurements on
defined benefit pension schemes
6.1.2 Share of other comprehensive income of investees that will not be
reclassified to profit or loss under equity method
6.2 Items that may subsequently be reclassified to profit or loss 335,212.02 -26,288,602.05
6.2.1 Share of other comprehensive income of investees that will be
reclassified to profit or loss under equity method
6.2.2 Gains/Losses on changes in fair value of available-for-sale
1,949,466.01 -26,287,126.90
financial assets
6.2.3 Gains/Losses arising from reclassification of held-to-maturity
investments to available-for-sale financial assets
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Wuxi Little Swan Company Limited First Quarter Report 2018
6.2.4 Effective gains/losses on cash flow hedges -1,606,733.75
6.2.5 Differences arising from translation of foreign
-7,520.20 -1,475.15
currency-denominated financial statements
6.2.6 Other
Attributable to non-controlling interests 183,626.45 -6,608,334.32
7. Total comprehensive income 569,917,916.24 405,518,783.08
Attributable to owners of Parent Company 511,357,452.90 370,914,842.72
Attributable to non-controlling interests 58,560,463.34 34,603,940.36
8. Earnings per share
8.1 Basic earnings per share 0.81 0.63
8.2 Diluted earnings per share 0.81 0.63
4. Parent Company Income Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Sales revenue 4,767,686,978.91 4,189,686,640.88
Less: Cost of sales 3,605,293,753.66 3,213,206,584.63
Taxes and surtaxes 19,507,963.32 19,175,030.95
Selling expense 693,236,807.81 559,809,986.80
Administrative expense 202,560,097.58 164,027,140.24
Finance costs -37,055,059.17 -16,399,560.75
Asset impairment losses -13,543,369.25 -1,435,675.97
Add: Gains on changes in fair value (“-” for losses) 253,065.85
Investment income (“-” for loss) 22,701,985.06 44,422,835.24
Including: Share of profit or loss of joint ventures and associates
Asset disposal income (“-” for loss) -440,752.80 56,502.60
Other income
2. Operating income (“-” for loss) 320,201,083.07 295,782,472.82
Add: Non-operating revenue 1,256,241.40 1,356,324.27
Less: Non-operating expense 132,679.98 298,795.41
3. Pretax income (“-” for loss) 321,324,644.49 296,840,001.68
Less: Income tax expense 50,937,581.81 46,081,671.31
4. Net income (“-” for net loss) 270,387,062.68 250,758,330.37
4.1 Net income from continuing operations (“-” for net loss)
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Wuxi Little Swan Company Limited First Quarter Report 2018
4.2 Net income from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax -75,103.61 -9,653,870.47
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes in net liabilities or assets caused by re-measurements on
defined benefit pension schemes
5.1.2 Share of other comprehensive income of investees that will not be
reclassified into profit or loss under equity method
5.2 Items that may subsequently be reclassified to profit or loss -75,103.61 -9,653,870.47
5.2.1 Share of other comprehensive income of investees that will be
reclassified into profit or loss under equity method
5.2.2 Gains/Losses on changes in fair value of available-for-sale financial
1,531,630.14 -9,653,870.47
assets
5.2.3 Gains/Losses arising from reclassification of held-to-maturity
investments to available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges -1,606,733.75
5.2.5 Differences arising from translation of foreign
currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income 270,311,959.07 241,104,459.90
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Cash generated by or used in operating activities:
Proceeds from sale of commodities and rendering of services 4,265,171,195.76 3,956,810,503.02
Net increase in customer deposits and deposits from banks and other
financial institutions
Net increase in loans from central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Net increase in proceeds from disposal of financial assets at fair value
through profit or loss
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Wuxi Little Swan Company Limited First Quarter Report 2018
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Tax rebates 13,193,598.89 16,580,287.82
Cash generated by other operating activities 20,560,607.10 21,257,432.18
Subtotal of cash generated by operating activities 4,298,925,401.75 3,994,648,223.02
Payments for commodities and services 3,053,498,810.41 2,973,752,966.09
Net increase in loans and advances to customers
Net increase in deposits in central bank and in interbank loans granted
Payments for claims on original insurance contracts
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 462,414,920.99 368,240,959.82
Taxes paid 314,170,117.48 173,229,722.56
Cash used in other operating activities 184,185,693.58 648,424,186.37
Subtotal of cash used in operating activities 4,014,269,542.46 4,163,647,834.84
Net cash flows from operating activities 284,655,859.29 -168,999,611.82
2. Cash generated by or used in investing activities:
Proceeds from disinvestments 2,700,000,000.00 1,535,000,000.00
Investment income 39,113,264.51 103,187,613.01
Net proceeds from disposal of property, plant and equipment, intangible
731,585.54 425,120.74
assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other business units
Cash generated by other investing activities 27,027,230.60 14,223,931.51
Subtotal of cash generated by investing activities 2,766,872,080.65 1,652,836,665.26
Payments for acquisition of property, plant and equipment, intangible assets
127,503,144.01 53,959,515.98
and other long-lived assets
Payments for investments 3,150,000,000.00 1,630,000,000.00
Net increase in pledged loans granted
Net payments for acquisition of subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 3,277,503,144.01 1,683,959,515.98
Net cash flows from investing activities -510,631,063.36 -31,122,850.72
3. Cash generated by or used in financing activities:
Capital contributions received
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Wuxi Little Swan Company Limited First Quarter Report 2018
Including: Capital contributions by non-controlling interests to
subsidiaries
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities
Repayment of borrowings 81,393,672.34 60,357,981.22
Payments for interest and dividends 9,275,732.98
Including: Dividends paid by subsidiaries to non-controlling interests
Cash used in other financing activities
Subtotal of cash used in financing activities 90,669,405.32 60,357,981.22
Net cash flows from financing activities -90,669,405.32 -60,357,981.22
4. Effect of foreign exchange rate changes on cash and cash equivalents -6,380,666.78
5. Net increase in cash and cash equivalents -323,025,276.17 -260,480,443.76
Add: Cash and cash equivalents, beginning of the period 1,417,489,071.71 4,171,689,917.21
6. Cash and cash equivalents, end of the period 1,094,463,795.54 3,911,209,473.45
6. Parent Company Cash Flow Statement
Unit: RMB
Item January-March 2018 January-March 2017
1. Cash generated by or used in operating activities:
Proceeds from sale of commodities and rendering of services 2,894,256,697.65 2,642,335,799.19
Tax rebates
Cash generated by other operating activities 5,580,871.84 8,534,729.25
Subtotal of cash generated by operating activities 2,899,837,569.49 2,650,870,528.44
Payments for commodities and services 2,366,907,563.95 1,837,967,509.35
Cash paid to and for employees 337,491,044.51 270,566,541.10
Taxes paid 129,207,442.27 90,098,052.42
Cash used in other operating activities 156,061,239.87 451,445,149.64
Subtotal of cash used in operating activities 2,989,667,290.60 2,650,077,252.51
Net cash flows from operating activities -89,829,721.11 793,275.93
2. Cash generated by or used in investing activities:
Proceeds from disinvestments 1,250,000,000.00 885,000,000.00
Investment income 22,683,420.34 44,422,835.24
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Wuxi Little Swan Company Limited First Quarter Report 2018
Net proceeds from disposal of property, plant and equipment, intangible
203,719.13 105,897.44
assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other business units
Cash generated by other investing activities 11,094,833.33 11,123,931.51
Subtotal of cash generated by investing activities 1,283,981,972.80 940,652,664.19
Payments for acquisition of property, plant and equipment, intangible assets
94,911,055.59 26,323,172.01
and other long-lived assets
Payments for investments 1,500,000,000.00 910,000,000.00
Net payments for acquisition of subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 1,594,911,055.59 936,323,172.01
Net cash flows from investing activities -310,929,082.79 4,329,492.18
3. Cash generated by or used in financing activities:
Capital contributions received
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities
Repayment of borrowings 16,806,882.34 44,453,274.62
Payments for interest and dividends 7,262,107.77
Cash used in other financing activities
Sub-total of cash used in financing activities 24,068,990.11 44,453,274.62
Net cash flows from financing activities -24,068,990.11 -44,453,274.62
4. Effect of foreign exchange rate changes on cash and cash equivalents -3,472,400.30
5. Net increase in cash and cash equivalents -428,300,194.31 -39,330,506.51
Add: Cash and cash equivalents, beginning of the period 945,759,061.62 2,353,708,554.75
6. Cash and cash equivalents, end of the period 517,458,867.31 2,314,378,048.24
II Independent Auditor’s Report
Indicate by tick mark whether the Q1 financial statements have been audited by an independent auditor.
□Yes √ No
The Q1 financial statements have not been audited by such an auditor.
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Wuxi Little Swan Company Limited First Quarter Report 2018
Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo
April 25, 2018
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