WUXI LITTLE SWAN COMPANY LIMITED
THE FIRST QUARTERLY REPORT FOR 2009
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and
other senior management personnel of Wuxi Little Swan Company Limited
(hereinafter referred to as “the Company”) hereby guarantee that this report carries no
false information, misleading statements or major omissions, and accept, individually
and collectively, the responsibility for the factuality, accuracy and completeness of the
information set forth herein.
1.2 The 1st Quarterly Financial Report of the Company has not been audited by
accounting firm.
1.3 Mr. Fang Hongbo (Chairman of the Board), Mr. Chai Xinjian (General Manager)
and Mr. Zhang Zhaofeng (Chief Financial Officer) hereby confirm that the Financial
Report enclosed in this quarterly report is factual and complete.
§2. Company Profile
2.1 Main accounting data and financial indices
Unit: (RMB) Yuan
At the end of this
reporting period
At the end of last
reporting period
Increase or decrease (%)
Total assets 3,372,221,320.06 3,339,288,243.96 0.99%
Equities attributable to owners of the parent company 1,652,278,937.17 1,606,316,559.12 2.86%
Share capital 547,655,760.00 547,655,760.00 0.00%
Net assets per share attributable to owners of the parent
company
3.02 2.93 3.07%
The reporting period Same period of last year Increase or decrease (%)
Total operation income 974,105,929.15 1,137,955,453.88 -14.40%
Net profit attributable to owners of the parent company 43,639,765.08 33,183,579.89 31.51%
Net cash flow arising from operating activities 24,940,968.36 -168,450,941.12 114.81%
Net cash flow per share arising from operating activities 0.05 -0.46 110.87%
Basic earnings per share 0.08 0.09 -11.11%
Diluted earnings per share 0.08 0.09 -11.11%
Profit margin on net assets 2.64% 2.06% 0.58%
Profit margin on net assets after deducting non-recurring
gains and losses
1.85% 2.02% -0.17%
Items of non-recurring gains and losses Amount from year-begin to the end ofthe reporting period
Gains from disposal of non-current assets 13,967,372.14
Government subsidies recorded into current gains and losses 3,010,000.00
Other non-operating incomes 693,514.75
Losses from disposal of non-current assets -2,045,155.92
Other non-operating expenses -550,800.13
Impact on income tax -2,148,196.48
Impact on minority interests 216,818.28
Total 13,143,552.64
Notes to items of non-recurring gains and losses:
Gains from disposal of non-current assets: the revenues from selling moulds, etc..
Government subsidies recorded into current gains and losses: The Company’s R&D
Department received the government subsidy for technological innovation.
2.2 Total number of shareholders at the end of the reporting period, as well as
the shares held by the top ten shareholders holding shares not subject to trading
moratorium
Unit: Share
Total number of shareholders at period-end 40,851
Tradable shares held by the top ten shareholders holding shares not subject to trading moratorium
Full name of shareholder
Number of tradable shares not subject to
trading moratorium held at period-end
Type of share
TITONI INVESTMENTS DEVELOPMENT LTD. 30,851,714 Domestically listed foreign shares
GREATER CHINA DEVELOPMENT CO., LTD. 30,212,211 Domestically listed foreign shares
Finance Bureau of Wuxi 24,945,531 RMB ordinary shares
GAO-LING FUND, L.P. 16,102,749 Domestically listed foreign shares
Shanghai Wanguo (Hong Kong) Securities 9,653,429 Domestically listed foreign shares
Bank of China—AIA-Huatai Aggressive-growth
Mixed Securities Investment Fund
8,977,814 RMB ordinary shares
Rongtong New Blue-chip Securities Investment Fund 7,673,939 RMB ordinary shares
Commercial Bank of China—Penghua Quality
Governance Stock Securities Investment Fund (LOF)
7,419,286 RMB ordinary shares
China Construction Bank—Huabao Industrial
Multi-strategy Growth Securities Investment Fund
7,297,046 RMB ordinary shares
National Social Security Fund Portfolio 110 5,680,741 RMB ordinary shares
§3. Significant Events
3.1 Particulars about major changes of items and financial indexes of the main
accounting statements, as well as the reasons for changes
√Applicable □Inapplicable
Index Amount in this Amount at year-begin Rate of Reasonsperiod change
Accounts receivable 724,503,729.73 422,669,603.61 71%
The peak period for the subsidiaries’ export sales arrived,
which considerably increased the revenue.
Prepayment 158,986,246.56 105,361,611.66 51%
The Company invested into the new industrial park project
to expand the production scale, which increased the
construction-related prepayment.
Inventory 413,334,213.12 694,973,687.18 -41%
The Company strengthened the inventory management,
increased the turnover rate of the inventory and reduced the
inventory scale.
Financial assets
available for sale
9,685,386.00 7,045,326.00 37% The price of the shares held by the Company rose.
Investment real
estate
- 30,474,370.10 -100%
The Company terminated the house leasing to Indesit
Company and turned the relevant properties into fixed
assets.
Long-term deferred
expenses
47,743,781.58 16,339,825.28 192%
The subsidiary strengthened the production of new products
and increased the investment in moulds.
Tax payable 61,362,168.26 36,310,470.23 69%
The Company strengthened the inventory management and
reduced the purchase of raw materials, with the increase of
the deductible VAT input tax.
Interest payable 197,360.00 562,686.25 -65% The interest for loans was paid.
Deferred income
tax liabilities
1,197,117.90 801,108.90 49%
The stock price rose. Also on the rise was the fair value of
the financial assets available for sale.
Index
Amount in this
period
Amount in the same
period of last year
Rate of
change
Business taxes and
surcharges
7,247,483.23 5,119,721.30 42% The VAT payable rose in this period.
Financial expenses 749,646.93 11,695,243.28 -94%
The Company strengthened its capital management,
increased the use ratio of its own capital and reduced the
discounted notes and other financing business. Meanwhile,
the interest for loans decreased over last year.
Gains from
investment
11,055,072.87 16,222,974.79 -32%
The Company’s investment profit measured by equity
method registered a decrease.
Non-operating
income
16,751,638.84 2,722,818.91 515%
The Company optimized the product structure and sold
some washer-drier moulds. Meanwhile, the Company’s
R&D department received the government subsidy for
technological innovation.
Non-operating
expenses
2,649,092.76 5,720,311.48 -54% The losses from disposing fixed assets decreased.
Minority interest
income
-7,771,125.33 2,517,466.84 -409% The controlling subsidiary ran a deficit.
Net cash flow
arising from
operating activities
24,940,968.36 -168,450,941.12 115%
The Company strengthened the inventory management and
cost control, with the considerable decrease of expenses for
purchasing goods and operating expenses.
Net cash flow -1,793,422.67 17,191,806.85 -110% The short-term loans decreased considerably compared
toarising from
financing activities
the same period of last year. Also on the decrease were the
cash expenses for debt repayment.
3.2 Analysis and explanation on the progress of significant events and the
influence, as well as the solutions
□Applicable √Inapplicable
3.3 Execution of commitments made by the Company, shareholders and actual
controller
√Applicable □Inapplicable
Commitments made Contents of commitment Execution
Commitment on share reform
1. Since the implementation date of share merger reform, all the Company’s
non-tradable share holders should not list for trading or transfer. And the said
commitment has already been fulfilled in the reporting period. 2. Jiangsu Little
Swan Group Co., Ltd. made the commitment that the original non-tradable
shares of Little Swan A held would not be listed for trading through Shenzhen
Stock Exchange within 36 months since the date of obtaining the circulation
right for the said shares.
During the
commitment period,
there existed no
violation of the said
commitments.
Commitments concerning share
trading moratorium
1. Guangdong Midea Electric Appliances Co., Ltd. made the commitment that
before 7 Aug. 2009, it would not list and trade through stock exchanges the
shares of Little Swan A held by it (Midea received 24.01% of the shares of
Little Swan held by Wuxi Guolian Development Group Co., Ltd. on 7 Apr.
2008.). 2. Wuxi Guolian Development Group Co., Ltd. made the commitment
that before 7 Aug. 2009, it would not list and trade through stock exchanges
the shares of Little Swan A held by it (Guolian received 0.62% of the shares of
Little Swan A held by Jiangsu Little Swan Group Co., Ltd. in Mar. 2009.)
As a continuation of
the commitments
concerning share
reform, the said
commitments were
still being executed,
with no violation to
the commitments.
Commitments made in the purchase
report or the report on equity changes
－ －
Commitments made in major assets
reorganization
－ －
Commitments made in stock issuance － －
Other commitments (including
additional commitments)
－ －
3.4 Warnings of possible losses or significant changes of the accumulative net
profit made during the period from the year-begin to the end of the next
reporting period compared to the same period of last year according to
prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities Investment
□Applicable √Inapplicable3.5.2 Interviews and visits in the reporting period
Reception date Reception site Reception way Reception object Topics discussed and materials provided
10 Feb. 2009 The Company’s meeting room Field research Orient Securities Co., Ltd. Overall operation of
the Company
10 Feb. 2009 The Company’s meeting room Field research
China Galaxy Securities Co.,
Ltd.
Overall operation of the Company
10 Feb. 2009 The Company’s meeting room Field research Guoxin Securities Co., Ltd. Overall operation of
the Company
9 Mar. 2009 Communication by phone
Communication
by phone
Citic Securities Co., Ltd.
Overall operation of the Company in
2008
3.5.3 Other significant events
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Wuxi Little Swan Company Limited 31 Mar. 2009 Unit: RMB Yuan
Balance at period-end Balance at year-begin
Items
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 637,784,672.40 493,990,307.93 617,998,210.34 408,475,277.00
Deposit reservation for balance
Dismantle fund
Transaction financial assets
Notes receivable 373,577,966.78 361,937,966.78 381,032,680.58 366,380,243.73
Accounts receivable 724,503,729.73 329,150,322.37 422,669,603.61 269,374,201.45
Prepayments 158,986,246.56 131,748,420.41 105,361,611.66 86,084,578.33
Premium receivable
Reinsurance accountants receivable
Reinsurance contract reserve receivables
Interest receivable
Dividend receivable 1,798,815.52 1,798,815.52 1,798,815.52 1,798,815.52
Other receivables 102,060,279.42 132,406,981.05 99,682,875.67 127,640,209.34
Buying back the sale of financial assets
Inventories 413,334,213.12 136,621,937.58 694,973,687.18 336,687,306.24
Non-current assets due within 1 year
Other current assets 1,254,966.10
Total current assets 2,413,300,889.63 1,587,654,751.64 2,323,517,484.56 1,596,440,631.61
Non-current assets
Loans and advances
Financial assets available for sale 9,685,386.00 9,685,386.00 7,045,326.00 7,045,326.00
Investments held to maturity
Long-term accounts receivableLong-term equity investment 223,695,565.96 906,885,166.58 218,856,545.67 938,059,586.29
Investment real estate 30,474,370.10 30,474,370.10
Fixed assets 444,080,120.67 268,657,621.42 502,382,574.01 248,254,016.23
Construction in progress 18,171,591.76 17,831,136.76 14,371,339.58 11,349,269.50
Construction materials
Fixed assets disposal
Productive biological assets
Oil assets
Intangible assets 136,632,298.56 117,523,353.85 152,351,167.32 118,260,757.99
Development expenses
Goodwill
Long-term deferred expenses 47,743,781.58 16,339,825.28
Deferred income tax assets 78,911,685.90 72,733,683.76 73,949,611.44 66,461,324.37
Other non-current assets
Total of non-current assets 958,920,430.43 1,393,316,348.37 1,015,770,759.40 1,419,904,650.48
Total assets 3,372,221,320.06 2,980,971,100.01 3,339,288,243.96 3,016,345,282.09
Current liabilities
Short-term borrowings 74,910,000.00 74,930,000.00
Borrowings from Central Bank
Deposits and sue to banks and other
financial institutions
Call loan received
Transaction financial liabilities
Notes payable 95,994,702.20 114,000,000.00
Accounts payable 1,009,823,975.92 568,445,025.62 989,965,462.97 626,896,030.80
Advances from customers 229,383,275.96 162,413,138.85 225,481,656.23 157,288,864.35
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 31,049,803.65 6,326,372.75 43,537,479.54 9,308,289.00
Taxes payable 61,362,168.26 52,191,341.53 36,310,470.23 29,816,057.11
Interest payable 197,360.00 562,686.25
Dividend payable 3,527,937.47 2,917,374.60 3,527,937.47 2,917,374.60
Other payables 112,776,493.18 68,618,089.10 135,832,343.39 90,089,986.19
Reinsurance payable
Insurance contract reserve
Acting trading securities
Acting underwriting securities
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 1,619,025,716.64 860,911,342.45 1,624,148,036.08 916,316,602.05
Non-current liabilities:
Long-term borrowings
Bonds payableLong-term payables
Special payables
Estimated liabilities 18,541,858.03 4,000,000.00 18,541,858.03 4,000,000.00
Deferred income tax liabilities 1,197,117.90 1,197,117.90 801,108.90 801,108.90
Other non-current liabilities
Total non-current liabilities 19,738,975.93 5,197,117.90 19,342,966.93 4,801,108.90
Total liabilities 1,638,764,692.57 866,108,460.35 1,643,491,003.01 921,117,710.95
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) 547,655,760.00 547,655,760.00 547,655,760.00 547,655,760.00
Capital surplus 482,708,754.04 486,213,914.67 480,464,703.04 483,969,863.67
Less: treasury stock
Surplus reserve 153,321,373.03 148,613,248.65 153,321,373.03 148,613,248.65
General risk reserve
Retained earnings 470,344,140.12 932,379,716.34 426,704,375.03 914,988,698.82
Foreign exchange difference -1,751,090.02 0.00 -1,829,651.98
Total equity attributable to owners of the
parent company
1,652,278,937.17 2,114,862,639.66 1,606,316,559.12 2,095,227,571.14
Minority interest 81,177,690.32 89,480,681.83
Total owners’ equity 1,733,456,627.49 2,114,862,639.66 1,695,797,240.95 2,095,227,571.14
Total liabilities and owners’ equity 3,372,221,320.06 2,980,971,100.01 3,339,288,243.96 3,016,345,282.09
4.2 Income Statement
Prepared by Wuxi Little Swan Company Limited Jan.-Mar. 2009 Unit: RMB Yuan
Amount in this period Amount in the previous period
Items
Consolidation Parent company Consolidation Parent company
. Total Ⅰ operation revenue 974,105,929.15 643,211,676.28 1,137,955,453.88 769,196,190.29
Including: sales revenue 974,105,929.15 643,211,676.28 1,137,955,453.88 769,196,190.29
Interest income
Premium income
Fee and commission income
Ⅱ. Total operation cost 955,306,070.43 610,505,844.13 1,107,364,875.79 739,702,934.87
Including: cost of sales 788,361,309.11 481,199,710.50 880,605,260.81 555,819,760.99
Interest expenses
Fee and commission expenses
Payments on surrenders
Net claim expenses
Net amount of withdrawn from the insurance
contract reserve
Policyholder dividends
Amortized reinsurance expenses
Business taxes and surcharges 7,247,483.23 6,639,280.74 5,119,721.30 2,421,400.88
Selling expenses 117,938,509.69 96,239,397.28 165,154,471.45 161,081,948.24
Administrative expenses 40,946,880.74 26,763,192.87 44,790,178.95 23,827,009.50Financial expenses
749,646.93 -335,737.26 11,695,243.28 -3,447,184.740
Asset impairment loss 62,240.73
Add: gain/loss from changes in fair value (“-” for loss)
Gain/loss from investment (“-” for loss) 11,055,072.87 -23,362,768.60 16,222,974.79 13,171,415.98
Including: investment gains from affiliated
enterprises and joint ventures
Gains/losses from foreign exchange difference (“-”
for loss)
. Operation Ⅲ profit (“-” for loss) 29,854,931.59 9,343,063.55 46,813,552.88 42,664,671.40
Add: non-business income 16,751,638.84 16,001,189.70 2,722,818.91 1,840,127.41
Less: non-business expense 2,649,092.76 1,351,979.87 5,720,311.48 3,972,681.59
Including: losses from non-current asset disposal
Ⅳ. Total profit (“-” for loss) 43,957,477.67 23,992,273.38 43,816,060.31 40,532,117.22
Less: income tax expenses 8,088,837.93 6,601,255.86 8,115,013.58 6,931,463.25
Ⅴ. Net profit (“-” for loss) 35,868,639.74 17,391,017.52 35,701,046.73 33,600,653.97
Attributable to owners of parent company 43,639,765.08 33,183,579.89
Minority interest -7,771,125.33 2,517,466.84
Ⅵ. Earnings per share
(I) Basic earnings per share 0.08 0.09
(II) Diluted earnings per share 0.08 0.09
4.3 Cash Flow Statement
Prepared by Wuxi Little Swan Company Limited Jan.-Mar. 2009 Unit: RMB Yuan
Amount of this period Amount of the previous period
Items
Consolidation Parent company Consolidation Parent company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of
services
414,241,264.40 393,283,633.12 1,538,014,040.12 634,967,641.29
Deposits from customers and placements with banks
and other financial institutions
Net increase of borrowings from central banks
Net increase of inter-bank loans from other financial
institutions
Cash received against original insurance contract
Net cash received from reinsurance
Net increase of policyholder deposits and investments
Net increase in disposal of transaction financial assets
Interest, handling charges and commissions received
Net increase of placements from banks
Net increase of cash received under repurchasing
Tax and fare refunded 9,293,677.80 8,390,108.21
Other cash received from operating activities 11,813,087.24 9,465,437.16 63,424,853.38 42,355,987.50
Sub-total of cash inflows from operating activities 435,348,029.44 402,749,070.28 1,609,829,001.71
677,323,628.79Cash paid for goods and services 190,471,891.92 139,904,796.51 1,285,113,076.27 629,477,938.75
Net increase of loans and advances for customers
Net increase of deposits in central bank, banks and other
financial institutions
Cash paid for original contract claims
Cash paid for interest, fees and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 60,764,481.97 38,678,932.88 91,378,078.03 42,330,155.32
Taxes and fares paid 68,956,107.53 60,082,565.89 61,438,994.53 21,988,577.86
Other cash paid relating to operating activities 90,214,579.66 77,643,059.31 340,349,794.00 150,298,594.97
Sub-total of cash outflows from operating activities 410,407,061.08 316,309,354.59 1,778,279,942.83
844,095,266.90
Net cash flows from operating activities 24,940,968.36 86,439,715.69 -168,450,941.12 -166,771,638.11
2. Cash flows from investing activities
Cash received from return of investments
Cash received from investment income 6,022,050.00 22,050.00
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets
1,155,562.81 2,607,704.65 2,607,704.65
Net cash received from disposal of subsidiaries and
other operating units
480.00
Other cash received from investing activities 111,394.50 111,394.50
Sub-total of cash inflows of investing activities 1,155,562.81 8,741,629.15 2,741,149.15
Cash paid for acquiring fixed assets, intangible assets
and other long-term assets
4,516,646.44 924,684.76 13,393,754.72 3,908,265.74
Cash paid for investments
Net increase of pledge loans
Net cash paid for acquisition of subsidiaries and other
operating units
Other cash paid relating to investing activities
Sub-total of cash outflows of investing activities 4,516,646.44 924,684.76 13,393,754.72 3,908,265.74
Net cash flows of investing activities -3,361,083.63 -924,684.76 -4,652,125.57 -1,167,116.59
3. Cash flows of financing activities
Cash received from absorbing investments
Including: Cash received from minority shareholders of
subsidiaries
Cash received from borrowings 18,900,000.00 133,000,000.00 80,000,000.00
Cash received from bonds issuing
Other cash received relating to financing activities 321,731.76
Sub-total of cash inflows of financing activities 18,900,000.00 133,321,731.76 80,000,000.00
Cash paid for settling debts 18,900,000.00 111,000,000.00 80,000,000.00
Cash paid for distribution of dividends or profit or
reimbursing interest
1,793,422.67 4,433,220.68 327,025.00
Including: dividends or profits paid to minority
shareholders by subsidiariesOther cash paid relating to financing activities 696,704.23 192,975.00
Sub-total of cash outflows of financing activities 20,693,422.67 116,129,924.91 80,520,000.00
Net cash flows of financing activities -1,793,422.67 0.00 17,191,806.85 -520,000.00
4. Effect of foreign exchange rate changes on cash and cash
equivalents
0.00 0.00 -3,040,918.50
5. Net increase of cash and cash equivalents 19,786,462.06 85,515,030.93 -158,952,178.34 -168,458,754.70
Add: cash and cash equivalents at period-begin 617,998,210.34 408,475,277.00 907,613,092.06 563,587,076.68
6. Cash and cash equivalents at period-end 637,784,672.40 493,990,307.93 748,660,913.72 395,128,321.98
4.4 Auditor’s report
Audit opinion: Un-audited
