Wuxi Little Swan Company Limited Third Quarter Report 2018
WUXI LITTLE SWAN COMPANY LIMITED
THIRD QUARTER REPORT 2018
October 2018
1
Wuxi Little Swan Company Limited Third Quarter Report 2018
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Wuxi Little Swan Company Limited (together with its
consolidated subsidiaries, the “Company”, except where the context otherwise requires)
hereby guarantee the factuality, accuracy and completeness of the contents of this Report and
its summary, and shall be jointly and severally liable for any misrepresentations, misleading
statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Mr. Fang Hongbo, Chairman of the Board of the Company, Mr. Sun Yunan, the Company’s
Chief Financial Officer (CFO), 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 and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2018 31 December 2017 Change (%)
Total assets (RMB) 19,562,400,332.39 21,338,421,243.67 -8.32%
Equity attributable to the listed company’s
7,788,272,297.02 7,047,090,800.97 10.52%
shareholders (RMB)
Q3 2018 YoY change (%) Q1-Q3 2018 YoY change (%)
Operating revenue (RMB) 5,359,920,386.18 -0.91% 17,416,858,672.22 9.01%
Net profit attributable to the listed company’s
445,019,926.40 8.15% 1,347,066,972.81 17.85%
shareholders (RMB)
Net profit attributable to the listed company’s
427,541,808.27 7.08% 1,319,332,870.63 18.42%
shareholders before exceptional items (RMB)
Net cash generated from/used in operating
-- -- 285,503,757.43 -58.58%
activities (RMB)
Basic earnings per share (RMB/share) 0.70 8.15% 2.13 17.85%
Diluted earnings per share (RMB/share) 0.70 8.15% 2.13 17.85%
Weighted average return on equity (%) 6.15% -0.24% 18.15% 0.21%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2018 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -907,555.01
Gain or loss on fair-value changes in trading financial assets and liabilities & investment income
from disposal of trading financial assets and liabilities and available-for-sale financial assets -7,724,180.68
(exclusive of effective portion of hedges that arise in the Company’s ordinary course of business)
Other 44,139,723.61
Less: Income tax effects 6,044,625.22
Non-controlling interests effects (net of tax) 1,729,260.52
Total 27,734,102.18 --
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred shareholders with resumed voting
Number of ordinary shareholders 19,612 0
rights (if any)
Top 10 shareholders
Shares in pledge
Shareholding Number of Restricted
Name of shareholder Nature of shareholder or frozen
percentage shares shares
Status Shares
Domestic non-state-owned
MIDEA GROUP CO., LTD. 37.78% 238,948,117
legal person
TITONI INVESTMENTS
Foreign legal person 14.89% 94,204,942
DEVELOPMENT LTD.
HONGKONG SECURITIES
Foreign legal person 5.23% 33,073,348
CLEANING CO., LTD
GAOLING FUND,L.P. Foreign legal person 3.74% 23,664,125
GREENWOODS CHINA ALPHA
Foreign legal person 2.81% 17,787,068
MASTER FUND
FINANCE BUREAU OF WUXI State-owned legal person 2.20% 13,887,710
NATIONAL SOCIAL SECURITY FUND Domestic non-state-owned
2.07% 13,100,947
PORTFOLIO 108 legal person
AGRICULTURAL BANK OF CHINA- E
Domestic non-state-owned
FUND CONSUMPTION SECTOR 1.72% 10,876,259
legal person
STOCK INVESTMENT FUND
CENTRAL HUIJIN ASSET
State-owned legal person 1.61% 10,156,300
MANAGEMENT CO., LTD.
BILL & MELINDA GATES
Foreign legal person 1.28% 8,070,506
FOUNDATION TRUST
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Top 10 unrestricted shareholders
Unrestricted Shares by type
Name of shareholder
shares Type Shares
MIDEA GROUP CO., LTD. 238,948,117 RMB-denominated ordinary stock 238,948,117
TITONI INVESTMENTS DEVELOPMENT LTD. 94,204,942 Domestically listed foreign stock 94,204,942
HONGKONG SECURITIES CLEANING CO., LTD 33,073,348 RMB-denominated ordinary stock 33,073,348
GAOLING FUND,L.P. 23,664,125 Domestically listed foreign stock 23,664,125
GREENWOODS CHINA ALPHA MASTER FUND 17,787,068 Domestically listed foreign stock 17,787,068
FINANCE BUREAU OF WUXI 13,887,710 RMB-denominated ordinary stock 13,887,710
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108 13,100,947 RMB-denominated ordinary stock 13,100,947
AGRICULTURAL BANK OF CHINA- E FUND
10,876,259 RMB-denominated ordinary stock 10,876,259
CONSUMPTION SECTOR STOCK INVESTMENT FUND
CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD. 10,156,300 RMB-denominated ordinary stock 10,156,300
BILL & MELINDA GATES FOUNDATION TRUST 8,070,506 RMB-denominated ordinary stock 8,070,506
Midea Group Co., Ltd. and TITONI Investments Development
Related or acting-in-concert parties among shareholders above
Ltd. are parties acting in concert.
Top 10 ordinary shareholders involved in securities margin
N/A
trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
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 Third Quarter Report 2018
Part III Significant Events
I Changes in Key Consolidated Financial Statement Line Items and Explanation of why
Unit: RMB’0,000
30 September 31 December Change
Item Change Explanation of why
2018 2017 (%)
Other receivables 23,594.47 10,816.84 12,777.63 118% Increase in income on structured deposits receivable
Inventories 91,160.11 198,076.62 -106,916.51 -54% Effect of the sales cycle
Other non-current assets 4,472.18 2,733.19 1,738.99 64% Rise in prepayments for equipment in the current period
Advances from
83,192.59 306,581.58 -223,388.99 -73% Effect of the sales cycle
customers
Change
Item Q1~Q3 2018 Q1~Q3 2017 Change Explanation of why
(%)
Rises in interest income from structured deposits and
Finance costs -41,157.51 -2,633.59 -38,523.92 -1463%
exchange gains due to exchange rate fluctuations
Income on wealth management products decreased as
Investment income 11,399.05 23,858.99 -12,459.94 -52%
such investments declined in the current period
Gain on changes in fair Loss on the fair value of forward forex contracts in the
-1,209.34 727.90 -1,937.24 -266%
value current period due to exchange rate fluctuations
Reclassification of other income and asset disposal
Non-operating income 1,219.65 2,399.44 -1,179.79 -49%
income for the current period
Shift from asset disposal loss to asset disposal income for
Non-operating expense 148.77 315.31 -166.54 -53%
the current period
Other comprehensive Changes in the fair value of available-for-sale financial
-4,129.06 -2,863.72 -1,265.34 -44%
income, net of tax assets
Net cash generated
from/used in operating 28,550.38 68,922.22 -40,371.84 -59% Rise in payments for commodities and services
activities
Net cash generated
from/used in investing 2,815.71 -145,498.58 148,314.29 102% Disinvestment of wealth management capital
activities
Net cash generated
from/used in financing -73,528.80 -53,385.95 -20,142.85 -38% Rise in cash dividends paid
activities
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Wuxi Little Swan Company Limited Third Quarter Report 2018
II Progress, Influence and Solutions Associated with Significant Events
Midea Group Co., Ltd. (hereinafter referred to as “Midea Group”) intends to merge with Wuxi Little Swan
Company Limited (hereinafter referred to as “Little Swan”) via a share swap as the acquirer. To be more specific,
Midea Group will issue A-shares to all the Little Swan shareholders who agree to the share swap, other than
Midea Group and Titoni Investments Development Ltd. (hereinafter referred to as “Titonni”), in exchange for
their Little Swan A- and B-shares. The Little Swan A- and B-shares held by Midea Group and Titoni, not a part of
the share swap, will be retired after the share swap.
Upon completion of the merger, Little Swan will be delisted and deregistered, and Midea Group or its
wholly-owned subsidiary will inherit and undertake all assets, liabilities, business, personnel, contracts and other
rights and obligations of Little Swan. The new A-shares issued by Midea Group in the share swap are expected to
be listed on the main board of the Shenzhen Stock Exchange.
The merger constitutes a major asset restructuring for Little Swan, which has been approved at Little Swan and
Midea Group’s board meetings on 23 October 2018. The merger plan and the relevant information have been
disclosed on the next day. As per both parties’ articles of association and other regulations, the merger is still
subject to the approval by their general meetings, as well as by the China Securities Regulatory Commission.
Given the uncertainties of this merger, investors are reminded to exercise caution when making investment
decisions.
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as
explanation of why:
□ Applicable √ Not applicable
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Wuxi Little Swan Company Limited Third Quarter Report 2018
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Wealth Management Entrustment
Unit: RMB’0,000
Type of wealth management Funding source Principal Outstanding amount before maturity Overdue amount
Wealth management product
Self-funded 248,500 20,000 0
purchased from bank
Wealth management product
Self-funded 125,000 0 0
purchased from entrustment
Total 373,500 20,000 0
Note: the principal disclosed according to the type refers to the highest balance of the wealth management
entrustment in a single day in the Reporting Period, that is, the maximum of the total outstanding amount before
maturity of the wealth management entrustment in a single day in the Reporting Period; outstanding amount
before maturity refers to the total outstanding amount before maturity of the wealth management entrustment at
the Period-end.
High-risk wealth management entrustments with amounts that are individually significant, or with low security,
low liquidity, or no protection of the principal:
□ Applicable √ Not applicable
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VII Investments in Derivative Financial Instruments
Unit: RMB’0,000
Rela Ending
Relate Actual
tions Impair investmen
d-part Initial Begin Purchased Sold in Endin gain/los
hip Type of ment t as % of
Counter y investme ning in Reporti g s in
with derivativ Start date End date allowan the
party transac nt invest Reporting ng invest Reporti
the e ce (if Company’
tion or amount ment Period Period ment ng
Com any) s ending
not Period
pany net assets
Bank No No Forward 17,676 11 24 May 17,676 19,125 27,157 9,645 1.24% -772
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Wuxi Little Swan Company Limited Third Quarter Report 2018
forex September 2019
contract 2017
Futures
Futures 30 January 15 June
compan No No 0 0 4,168 4,168 0 0% 81
contract 2018 2018
y
Total 17,676 -- -- 17,676 23,293 31,325 9,645 1.24% -691
Funding source Self-funded
Legal matters involved (if
N/A
applicable)
Disclosure date of board
announcement approving 13 March 2018
derivative investment (if any)
Disclosure date of general
meeting announcement
12 April 2018
approving derivative investment
(if any)
The Company has considered and formulated the Management Methods for Forex Trading
Business and the Management Methods for Futures Hedging Business to implement full
assessment and control on its derivative investments, with highlights as follows:
1. About legal risk: The Company's futures and forex trading business are 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
Analysis of risks and control
the requirements of the laws and regulations and internal management system of the Company.
measures associated with
2. About operational risk: Risks caused by imperfect internal processes, staff, systems and
derivative investments held in
external issues may cause the Company to incur losses during the course of its futures and forex
Reporting Period (including but
trading business.
not limited to market risk,
Control measures: The Company has not only developed relevant management systems that
liquidity risk, credit risk,
clearly define the assignment of responsibility and approval process for futures and forex trading,
operational risk, legal risk, etc.)
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 market Risk: the uncertainty in staple commodity price changes and exchange rate
fluctuations in the foreign exchange market has led to greater market risks existing in the futures
business and the foreign exchange capital business. At the same time, during the operation of
futures, it is unable to raise funds in time to establish and maintain the hedge position, or in terms
of the foreign exchange business, the foreign exchange funds used for performance cannot be paid
on time, which may lead to any loss from such futures operation and any default risk.
Control Measures: the Company will adhere to the principle of prudent and steady operation to
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Wuxi Little Swan Company Limited Third Quarter Report 2018
operate its futures business and foreign exchange fund business. For the futures business, the
Company will strictly determine the business volume according to the needs of production and
operation, apply for the futures trading, and implement the stop-loss mechanism. Besides, the
Company will also establish a futures risk measurement system to calculate the amount of margin
used, the floating profit and loss, the amount of available margin and the needed amount of
margin for establishing the proposed position so as to determine the amount of margin that may be
required. For the foreign exchange fund business, the tiered management mechanism will be
implemented. If a business unit applies for any fund business, it needs to conduct risk analysis on
the conditions or environment that affect the business’s profit and loss, estimate the maximum
possible gains and losses, and report the acceptable margin ratio or the total amount. Meanwhile,
the Company needs to timely update the operation of the fund business and guarantee the funding
arrangement before the due date.
Changes in market prices or fair
value of derivative investments
1. The income from futures contract was RMB0.81 million during the Reporting Period;
in Reporting Period (fair value
2. The loss from Forex forward contract was RMB7.72 million during the Reporting Period;
analysis should include
3. Public offer in futures market or forward forex quotations announced by the Bank of China are
measurement method and
used in the fair value analysis of the derivative investments.
related assumptions and
parameters)
Major changes in accounting
policies and specific accounting
principles adopted for derivative
No significant changes
investments in Reporting Period
compared to last reporting
period
In the opinion of the Company’s independent director, the Company has formulated various
derivative investment systems including Administrative Measures for Foreign Exchange Fund
Business and Administrative Measures for Futures Hedging Business, which can effectively
Opinion of independent control the risk of derivative investment; the Company will regard the futures hedging business as
directors on derivative an effective tool to stabilize any price fluctuation by strengthening the internal control,
investments and risk control implementing effective risk prevention measures and improving the operational management; the
Company’s derivative investment business mainly focuses on the export business, which can help
the Company lock the exchange rate and avoid any exchange rate fluctuation risk. Since there is
no speculative operation and no compliance risk, the Company’s liquidity will not be affected.
VIII 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
24 January 2018 to 2 By one-on-one Little Swan A: Sheet of Investor Relations Activities from 24 January
Institution
February 2018 meeting 2018 to 2 February 2018 (No. 2018-01) on www.cninfo.com.cn
15 March 2018 to 22 By one-on-one Institution Little Swan A: Sheet of Investor Relations Activities from 15 March
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Wuxi Little Swan Company Limited Third Quarter Report 2018
March 2018 meeting 2018 to 22 March 2018 (No. 2018-02) on www.cninfo.com.cn
8 August 2018 to 17 By one-on-one Little Swan A: Sheet of Investor Relations Activities from 8 August
Institution
August 2018 meeting 2018 to 17 August 2018 (No. 2018-03) on www.cninfo.com.cn
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by Controlling Shareholder or Its 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 Third Quarter Report 2018
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Unit: RMB
Item 30 September 2018 31 December 2017
Current assets:
Monetary capital 1,163,865,240.32 1,588,264,516.05
Settlement reserve
Interbank loans granted
Financial assets at fair value through profit or loss 5,270,238.03
Derivative financial assets
Notes and accounts receivable 2,710,407,604.36 3,019,917,180.38
Including: Notes receivable 395,641,656.25 1,283,192,684.28
Accounts receivable 2,314,765,948.11 1,736,724,496.10
Prepayments 95,567,736.21 84,346,792.38
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 235,944,692.26 108,168,362.07
Financial assets purchased under resale agreements
Inventories 911,601,051.34 1,980,766,196.14
Assets classified as held for sale
Current portion of non-current assets
Other current assets 12,608,060,657.21 12,778,240,745.22
Total current assets 17,725,446,981.70 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
Long-term equity investments
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Investment property 58,806,744.00 61,695,825.00
Fixed assets 1,078,246,771.48 1,029,668,355.84
Construction in progress 40,331,385.08 37,972,252.60
Productive living assets
Oil and gas assets
Intangible assets 183,249,989.66 187,045,347.27
R&D expense
Goodwill
Long-term prepaid expense 25,664,611.43 22,382,020.52
Deferred income tax assets 405,732,083.43 407,151,474.64
Other non-current assets 44,721,765.61 27,331,937.53
Total non-current assets 1,836,953,350.69 1,773,447,213.40
Total assets 19,562,400,332.39 21,338,421,243.67
Current liabilities:
Short-term borrowings 81,393,672.34
Borrowings from central bank
Customer deposits and interbank deposits
Interbank loans obtained
Financial liabilities at fair value through profit or loss 6,823,112.65
Derivative financial liabilities
Notes and accounts payable 6,147,327,483.37 6,632,830,300.51
Advances from customers 831,925,860.40 3,065,815,801.93
Financial assets sold under repurchase agreements
Handling charges and commissions payable
Payroll payable 325,999,773.55 349,483,844.76
Taxes payable 469,500,143.68 638,017,523.31
Other payables 181,522,157.17 228,117,647.54
Reinsurance payables
Insurance contract reserve
Payables for acting 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 2,473,489,467.29 2,107,700,604.61
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Total current liabilities 10,436,587,998.11 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 7,427,582.25 12,021,620.17
Provisions 1,867,338.50 2,253,082.25
Deferred income 5,775,149.85 2,489,133.21
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 15,070,070.60 16,763,835.63
Total liabilities 10,451,658,068.71 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 1,314,361,857.47 1,252,947,546.80
Less: Treasury stock
Other comprehensive income 5,684,343.46 40,496,366.85
Specific reserve
Surplus reserves 332,594,722.29 332,594,722.29
General reserve
Retained earnings 5,503,143,609.80 4,788,564,401.03
Total equity attributable to owners of the Company as the parent 7,788,272,297.02 7,047,090,800.97
Non-controlling interests 1,322,469,966.66 1,171,207,212.07
Total owners’ equity 9,110,742,263.68 8,218,298,013.04
Total liabilities and owners’ equity 19,562,400,332.39 21,338,421,243.67
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Wuxi Little Swan Company Limited Third Quarter Report 2018
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 September 2018 31 December 2017
Current assets:
Monetary capital 601,410,400.85 1,030,061,384.78
Financial assets at fair value through profit or loss 3,724,810.47
Derivative financial assets
Notes and accounts receivable 2,305,318,670.12 3,743,536,948.22
Including: Notes receivable 241,982,051.18 938,342,347.95
Accounts receivable 2,063,336,618.94 2,805,194,600.27
Prepayments 69,369,953.05 67,278,861.92
Other receivables 166,722,832.53 61,886,256.59
Inventories 544,323,042.80 1,206,334,183.68
Assets classified as held for sale
Current portion of non-current assets
Other current assets 8,122,124,546.48 7,259,605,039.27
Total current assets 11,809,269,445.83 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 7,614,281.90 7,882,440.32
Fixed assets 569,562,664.31 532,803,209.18
Construction in progress 40,331,385.08 37,321,733.68
Productive living assets
Oil and gas assets
Intangible assets 87,883,142.11 89,900,867.32
R&D expense
Goodwill
Long-term prepaid expense 8,627,140.00 5,905,684.35
Deferred income tax assets 246,151,357.55 225,186,332.58
Other non-current assets 26,300,896.99 17,138,349.61
Total non-current assets 1,944,855,909.51 1,874,523,658.61
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Total assets 13,754,125,355.34 15,246,951,143.54
Current liabilities:
Short-term borrowings 16,806,882.34
Financial liabilities at fair value through profit or loss 3,532,061.36
Derivative financial liabilities
Notes and accounts payable 5,748,002,361.60 6,073,907,942.42
Advances from customers 503,582,080.26 1,862,974,982.38
Payroll payable 245,759,989.00 268,065,495.23
Taxes payable 281,748,898.97 353,920,883.93
Other payables 121,346,058.02 153,979,505.69
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities
Other current liabilities 1,456,621,775.82 1,336,384,942.60
Total current liabilities 8,360,593,225.03 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
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 8,360,593,225.03 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 1,459,654,395.50 1,405,575,239.68
Less: Treasury stock
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Other comprehensive income 7,891,726.00 27,970,054.39
Specific reserve
Surplus reserves 319,944,578.39 319,944,578.39
Retained earnings 2,973,553,666.42 2,794,932,872.49
Total owners’ equity 5,393,532,130.31 5,180,910,508.95
Total liabilities and owners’ equity 13,754,125,355.34 15,246,951,143.54
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2018 Q3 2017
1. Revenue 5,359,920,386.18 5,409,053,680.82
Including: Operating revenue 5,359,920,386.18 5,409,053,680.82
Interest income
Premium income
Handling charge and commission income
2. Operating costs and expenses 4,849,290,788.28 4,915,302,618.03
Including: Cost of sales 4,005,492,977.88 4,025,713,025.98
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 29,137,926.12 33,914,345.16
Selling expense 751,526,153.22 702,045,545.50
Administrative expense 36,540,329.54 29,863,462.55
R&D expense 183,934,738.45 122,013,987.36
Finance costs -180,222,942.95 -2,812,709.83
Including: Interest expense 20,620,659.47 20,940,427.54
Interest income -151,137,099.25 -50,625,125.14
Asset impairment loss 22,881,606.02 4,564,961.31
Add: Other income 20,679,764.88 6,835,783.31
Investment income (“-” for loss) 37,087,710.06 56,923,988.62
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Wuxi Little Swan Company Limited Third Quarter Report 2018
Including: Share of profit or loss of joint ventures and associates
Gain on changes in fair value (“-” for loss) -2,022,499.18 2,361,168.20
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss) -1,542,010.91
3. Operating profit (“-” for loss) 564,832,562.75 559,872,002.92
Add: Non-operating income 4,830,086.83 8,370,654.72
Less: Non-operating expense 696,994.00 73,435.06
4. Profit before tax (“-” for loss) 568,965,655.58 568,169,222.58
Less: Income tax expense 70,205,908.60 87,620,162.08
5. Net profit (“-” for net loss) 498,759,746.98 480,549,060.50
5.1 Net profit from continuing operations (“-” for net loss) 498,759,746.98 480,549,060.50
5.2 Net profit from discontinued operations (“-” for net loss)
Net profit attributable to owners of the Company as the parent 445,019,926.40 411,479,306.87
Net profit attributable to non-controlling interests 53,739,820.58 69,069,753.63
6. Other comprehensive income, net of tax -28,816,666.40 3,779,053.96
Attributable to owners of the Company as the parent -22,859,924.64 8,467,880.09
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes in net liabilities or assets caused by remeasurements 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 -22,859,924.64 8,467,880.09
6.2.1 Share of other comprehensive income of investees that will be
reclassified to profit or loss under equity method
6.2.2 Gain/Loss on changes in fair value of available-for-sale
-22,865,710.30 8,472,611.20
financial assets
6.2.3 Gain/Loss arising from reclassification of held-to-maturity
investments to available-for-sale financial assets
6.2.4 Effective gain/loss on cash flow hedges
6.2.5 Differences arising from translation of foreign
5,785.66 -4,731.11
currency-denominated financial statements
6.2.6 Other
Attributable to non-controlling interests -5,956,741.76 -4,688,826.13
7. Total comprehensive income 469,943,080.58 484,328,114.46
Attributable to owners of the Company as the parent 422,160,001.76 419,947,186.96
Attributable to non-controlling interests 47,783,078.82 64,380,927.50
8. Earnings per share
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Wuxi Little Swan Company Limited Third Quarter Report 2018
8.1 Basic earnings per share 0.70 0.65
8.2 Diluted earnings per share 0.70 0.65
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2018 Q3 2017
1. Operating revenue 3,738,328,973.70 4,137,270,472.44
Less: Cost of sales 2,883,934,194.90 3,238,940,527.27
Taxes and surcharges 18,731,071.73 21,653,606.79
Selling expense 478,245,271.45 492,184,783.36
Administrative expense 26,303,259.55 20,615,625.60
R&D expense 143,703,854.15 93,902,641.09
Finance costs -116,415,244.63 -343,883.61
Including: Interest expense 10,007,267.82 14,509,528.69
Interest income -94,946,975.02 -29,399,183.67
Asset impairment loss 13,020,356.31 3,457,037.13
Add: Other income 12,278,235.20
Investment income (“-” for loss) 12,077,836.78 16,012,684.13
Including: Share of profit or loss of joint ventures and associates
Gain on changes in fair value (“-” for loss) -1,244,758.38 2,204,741.62
Asset disposal income (“-” for loss) -976,922.91
2. Operating profit (“-” for loss) 312,940,600.93 285,077,560.56
Add: Non-operating income 3,976,028.28 4,425,956.50
Less: Non-operating expense 825,042.84
3. Profit before tax (“-” for loss) 316,091,586.37 289,503,517.06
Less: Income tax expense 24,318,773.26 45,420,985.67
4. Net profit (“-” for net loss) 291,772,813.11 244,082,531.39
4.1 Net profit from continuing operations (“-” for net loss) 291,772,813.11 244,082,531.39
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax -9,311,342.47 18,981,275.77
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes in net liabilities or assets caused by remeasurements on
defined benefit pension schemes
5.1.2 Share of other comprehensive income of investees that will not be
reclassified to profit or loss under equity method
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Wuxi Little Swan Company Limited Third Quarter Report 2018
5.2 Items that may subsequently be reclassified to profit or loss -9,311,342.47 18,981,275.77
5.2.1 Share of other comprehensive income of investees that will be
reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-sale financial
-9,311,342.47 18,981,275.77
assets
5.2.3 Gain/Loss arising from reclassification of held-to-maturity
investments to available-for-sale financial assets
5.2.4 Effective gain/loss on cash flow hedges
5.2.5 Differences arising from translation of foreign
currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income 282,461,470.64 263,063,807.16
7. Earnings per share
7.1 Basic earnings per share 0.70 0.65
7.2 Diluted earnings per share 0.70 0.65
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Revenue 17,416,858,672.22 15,977,114,535.05
Including: Operating revenue 17,416,858,672.22 15,977,114,535.05
Interest income
Premium income
Handling charge and commission income
2. Operating costs and expenses 15,779,367,508.20 14,717,291,930.91
Including: Cost of sales 12,855,294,810.89 11,887,084,837.76
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 95,955,629.23 98,446,618.90
Selling expense 2,521,232,812.16 2,235,935,416.90
Administrative expense 148,230,609.99 127,164,979.65
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Wuxi Little Swan Company Limited Third Quarter Report 2018
R&D expense 523,407,513.68 352,875,575.67
Finance costs -411,575,061.93 -26,335,907.67
Including: Interest expense 51,973,885.75 26,838,380.55
Interest income -397,480,076.04 -114,465,903.30
Asset impairment loss 46,821,194.18 42,120,409.70
Add: Other income 48,651,416.88 22,642,337.07
Investment income (“-” for loss) 113,990,451.60 238,589,870.73
Including: Share of profit or loss of joint ventures and associates
Gain on changes in fair value (“-” for loss) -12,093,350.68 7,279,041.33
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss) -907,555.01
3. Operating profit (“-” for loss) 1,787,132,126.81 1,528,333,853.27
Add: Non-operating income 12,196,548.70 23,994,408.02
Less: Non-operating expense 1,487,734.84 3,153,092.92
4. Profit before tax (“-” for loss) 1,797,840,940.67 1,549,175,168.37
Less: Income tax expense 295,616,684.08 235,865,857.86
5. Net profit (“-” for net loss) 1,502,224,256.59 1,313,309,310.51
5.1 Net profit from continuing operations (“-” for net loss) 295,616,684.08 235,865,857.86
5.2 Net profit from discontinued operations (“-” for net loss) 1,502,224,256.59 1,313,309,310.51
Net profit attributable to owners of the Company as the parent 1,347,066,972.81 1,143,019,809.34
Net profit attributable to non-controlling interests 155,157,283.78 170,289,501.17
6. Other comprehensive income, net of tax -41,290,604.99 -28,637,223.77
Attributable to owners of the Company as the parent -34,812,023.36 -18,953,155.82
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes in net liabilities or assets caused by remeasurements 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 -34,812,023.36 -18,953,155.82
6.2.1 Share of other comprehensive income of investees that will be
reclassified to profit or loss under equity method
6.2.2 Gain/Loss on changes in fair value of available-for-sale
-34,820,125.30 -18,941,998.21
financial assets
6.2.3 Gain/Loss arising from reclassification of held-to-maturity
investments to available-for-sale financial assets
6.2.4 Effective gain/loss on cash flow hedges
21
Wuxi Little Swan Company Limited Third Quarter Report 2018
6.2.5 Differences arising from translation of foreign
8,101.94 -11,157.61
currency-denominated financial statements
6.2.6 Other
Attributable to non-controlling interests -6,478,581.63 -9,684,067.95
7. Total comprehensive income 1,460,933,651.60 1,284,672,086.74
Attributable to owners of the Company as the parent 1,312,254,949.45 1,124,066,653.52
Attributable to non-controlling interests 148,678,702.15 160,605,433.22
8. Earnings per share
8.1 Basic earnings per share 2.13 1.81
8.2 Diluted earnings per share 2.13 1.81
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Operating revenue 12,193,529,742.41 11,896,493,564.73
Less: Cost of sales 9,302,193,376.22 9,234,940,559.84
Taxes and surcharges 59,812,891.13 66,089,061.73
Selling expense 1,679,547,962.57 1,510,957,356.69
Administrative expense 118,321,990.55 91,198,512.38
R&D expense 415,321,273.68 293,455,274.62
Finance costs -256,571,814.47 -28,382,799.86
Including: Interest expense 24,198,321.79 18,618,267.89
Interest income -242,395,256.35 -76,262,118.24
Asset impairment loss 17,327,265.54 18,602,355.25
Add: Other income 15,106,377.54
Investment income (“-” for loss) 59,934,823.87 109,372,200.95
Including: Share of profit or loss of joint ventures and associates
Gain on changes in fair value (“-” for loss) -7,256,871.83 6,482,343.61
Asset disposal income (“-” for loss) -1,400,600.16
2. Operating profit (“-” for loss) 923,960,526.61 825,487,788.64
Add: Non-operating income 10,028,342.36 12,887,071.45
Less: Non-operating expense 1,487,734.84 1,598,940.52
3. Profit before tax (“-” for loss) 932,501,134.13 836,775,919.57
Less: Income tax expense 121,537,080.01 131,027,695.66
22
Wuxi Little Swan Company Limited Third Quarter Report 2018
4. Net profit (“-” for net loss) 810,964,054.12 705,748,223.91
4.1 Net profit from continuing operations (“-” for net loss) 810,964,054.12 705,748,223.91
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax -20,078,328.39 3,618,137.72
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes in net liabilities or assets caused by remeasurements on
defined benefit pension schemes
5.1.2 Share of other comprehensive income of investees that will not be
reclassified to profit or loss under equity method
5.2 Items that may subsequently be reclassified to profit or loss -20,078,328.39 3,618,137.72
5.2.1 Share of other comprehensive income of investees that will be
reclassified to profit or loss under equity method
5.2.2 Gain/Loss on changes in fair value of available-for-sale financial
-20,078,328.39 3,618,137.72
assets
5.2.3 Gain/Loss arising from reclassification of held-to-maturity
investments to available-for-sale financial assets
5.2.4 Effective gain/loss on cash flow hedges
5.2.5 Differences arising from translation of foreign
currency-denominated financial statements
5.2.6 Other
6. Total comprehensive income 790,885,725.73 709,366,361.63
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 13,119,826,375.57 11,502,461,367.12
Net increase in customer deposits and interbank deposits
Net increase in borrowings 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
23
Wuxi Little Swan Company Limited Third Quarter Report 2018
through profit or loss
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Tax rebates 29,970,565.12 60,061,335.71
Cash generated from other operating activities 113,957,228.91 86,857,031.47
Subtotal of cash generated from operating activities 13,263,754,169.60 11,649,379,734.30
Payments for commodities and services 10,623,045,879.77 7,437,740,147.06
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 1,125,920,458.93 918,519,618.20
Taxes paid 801,559,780.76 634,889,870.55
Cash used in other operating activities 427,724,292.71 1,969,007,881.07
Subtotal of cash used in operating activities 12,978,250,412.17 10,960,157,516.88
Net cash generated from/used in operating activities 285,503,757.43 689,222,217.42
2. Cash flows from investing activities:
Proceeds from disinvestment 12,085,000,000.00 6,895,000,000.00
Investment income 113,990,451.60 238,758,884.14
Net proceeds from disposal of fixed assets, intangible assets and other
4,226,057.10 840,384.69
long-lived assets
Net proceeds from disposal of subsidiaries or other business units 2,415,000.00
Cash generated from other investing activities 218,207,652.98 57,042,308.02
Subtotal of cash generated from investing activities 12,421,424,161.68 7,194,056,576.85
Payments for acquisition of fixed assets, intangible assets and other
243,267,106.03 104,042,380.39
long-lived assets
Payments for investments 12,150,000,000.00 8,545,000,000.00
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 12,393,267,106.03 8,649,042,380.39
Net cash generated from/used in investing activities 28,157,055.65 -1,454,985,803.54
3. Cash flows from financing activities:
24
Wuxi Little Swan Company Limited Third Quarter Report 2018
Capital contributions received
Including: Capital contributions by non-controlling interests to
subsidiaries
Increase in borrowings obtained 429,950,000.00
Net proceeds from issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities 429,950,000.00
Repayment of borrowings 81,393,672.34 464,293,064.12
Payments for interest and dividends 653,894,346.91 499,516,450.57
Including: Dividends paid by subsidiaries to non-controlling interests
Cash used in other financing activities
Subtotal of cash used in financing activities 735,288,019.25 963,809,514.69
Net cash generated from/used in financing activities -735,288,019.25 -533,859,514.69
4. Effect of foreign exchange rate changes on cash and cash equivalents 283,110.30
5. Net increase in cash and cash equivalents -421,344,095.87 -1,299,623,100.81
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 996,144,975.84 2,872,066,816.40
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2018 Q1~Q3 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 9,982,234,962.36 9,850,148,284.12
Tax rebates
Cash generated from other operating activities 39,199,702.69 38,736,675.26
Subtotal of cash generated from operating activities 10,021,434,665.05 9,888,884,959.38
Payments for commodities and services 7,293,496,640.59 6,852,988,102.23
Cash paid to and for employees 790,707,722.05 645,646,594.51
Taxes paid 412,788,269.97 370,064,700.60
Cash used in other operating activities 328,777,838.65 1,350,354,065.27
Subtotal of cash used in operating activities 8,825,770,471.25 9,219,053,462.61
Net cash generated from/used in operating activities 1,195,664,193.80 669,831,496.77
2. Cash flows from investing activities:
Proceeds from disinvestment 5,935,000,000.00 3,185,000,000.00
25
Wuxi Little Swan Company Limited Third Quarter Report 2018
Investment income 59,934,823.87 104,184,719.36
Net proceeds from disposal of fixed assets, intangible assets and other
1,378,421.40 192,710.01
long-lived assets
Net proceeds from disposal of subsidiaries or other business units 2,415,000.00
Cash generated from other investing activities 109,415,609.59 38,174,499.80
Subtotal of cash generated from investing activities 6,105,728,854.86 3,329,966,929.17
Payments for acquisition of fixed assets, intangible assets and other
169,367,095.97 46,670,938.80
long-lived assets
Payments for investments 6,900,000,000.00 4,475,000,000.00
Net payments for acquisition of subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 7,069,367,095.97 4,521,670,938.80
Net cash generated from/used in investing activities -963,638,241.11 -1,191,704,009.63
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained 243,000,000.00
Net proceeds from issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities 243,000,000.00
Repayment of borrowings 16,806,882.34 258,943,093.80
Payments for interest and dividends 645,367,374.65 492,786,139.87
Cash used in other financing activities
Sub-total of cash used in financing activities 662,174,256.99 751,729,233.67
Net cash generated from/used in financing activities -662,174,256.99 -508,729,233.67
4. Effect of foreign exchange rate changes on cash and cash equivalents -1,379,355.61
5. Net increase in cash and cash equivalents -431,527,659.91 -1,030,601,746.53
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 514,231,401.71 1,323,106,808.22
II Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
26
Wuxi Little Swan Company Limited Third Quarter Report 2018
Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo
31 October 2018
27
