Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Wuxi Little Swan Company Limited
Report for the Third Quarter of 2013
October 2013
1
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Wuxi Little Swan Company Limited (hereinafter referred to as “the Company”)
warrant that this report is factual, accurate and complete without any false record, misleading
statement or material omission. And they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
Mr. Fang Hongbo, chairman of the Board of Directors, Mr. Yin Bitong, GM, Mr. Zhang Zhaofeng,
CFO, and Mr. Zhong Fangliu, chief of the accounting organ (chief of accounting), hereby confirm
that the financial statements enclosed in this report are factual, accurate and complete.
On 18 Sept. 2013, Midea Group Co., Ltd. absorbed GD Midea Holding Co., Ltd. and thus the
controlling shareholder of the Company will change from GD Midea Holding Co., Ltd. to Midea
Group Co., Ltd. The transfer formalities are in the process. Despite the change of the controlling
shareholder, the actual controller of the Company remains the same.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Section II. Financial Highlights & Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
□ Yes √ No
30 Sept. 2013 31 Dec. 2012 Increase/decrease (%)
Total assets (RMB Yuan) 8,714,933,876.04 8,403,705,443.29 3.7%
Net assets attributable to shareholders
3,819,597,488.63 3,686,210,495.87 3.62%
of the Company (RMB Yuan)
YoY
YoY
Jul.-Sept. 2013 increase/decrease Jan.-Sept. 2013
increase/decrease (%)
(%)
Operating revenues (RMB Yuan) 2,351,890,369.69 59.58% 6,350,114,706.00 38.8%
Net profit attributable to shareholders
102,844,386.41 7.88% 323,805,853.35 3.93%
of the Company (RMB Yuan)
Net profit attributable to shareholders
of the Company after extraordinary 76,911,384.65 - 11.27% 263,620,751.27 -8.87%
gains and losses (RMB Yuan)
Net cash flows from operating
-- -- 924,148,130.89 42.84%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.16 7.88% 0.51 3.93%
Diluted EPS (RMB Yuan/share) 0.16 7.88% 0.51 3.93%
Weighted average ROE (%) 2.73% 2.45% 8.56% -1.23%
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Item Amount as of Jan.-Sept. 2013 Note
Gains/losses on the disposal of non-current assets (including the
-1,384,872.97
offset part of asset impairment provisions)
Government grants recognized in the current period, except for those
acquired in the ordinary course of business or granted at certain 13,879,398.54
quotas or amounts according to the country’s unified standards
Gain/loss on entrusting others with investments or asset management 62,702,834.77
Asset impairment provisions due to acts of God such as natural
72,146.16
disasters
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Other non-operating income and expenses other than the above 6,609,894.90
Less: Income tax effects 12,295,730.04
Minority interests effects (after tax) 9,398,569.28
Total 60,185,102.08 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public?Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
II. Total number of shareholders at the period-end and shares held by the top ten
shareholders
Unit: share
Total number of shareholders at the
35,688
period-end
Shares held by the top ten shareholders
Pledged or frozen
Shareholding Number of Number of the
Nature of shares
Name of shareholder percentage the shares restricted shares
shareholder Status of Number of
(%) held held
shares shares
Domestic
GD MIDEA HOLDING CO., LTD. non-state-owned 35.2% 222,661,571 216,342,015
corporation
Overseas
GAOLING FUND,L.P. 8.56% 54,149,586
corporation
TITONI INVESTMENTS Overseas
4.88% 30,851,714 30,851,714
DEVELOPMENT LTD. corporation
On behalf of the
FINANCE BUREAU OF WUXI 3.49% 22,057,657
government
Overseas
BOCI SECURITIES LIMITED 3.31% 20,920,731
corporation
GUOTAI JUNAN Overseas
2.12% 13,379,642
SECURITIES(HONGKONG) LIMITED corporation
Domestic
NATIONAL SOCIAL SECURITY FUND
non-state-owned 1.9% 12,000,000
PORTFOLIO 102
corporation
CHINA CONSTRUCTION BSNK- BOSHI Domestic
1.42% 8,999,108
THEME INDUSTRIAL STOCK FUND non-state-owned
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
corporation
Domestic
NATIONAL SOCIAL SECURITY FUND
non-state-owned 1.14% 7,180,101
PORTFOLIO 108
corporation
CHINA CONSTRUCTION BSNK－ Domestic
PENGHUA VALUE ADVANCED STOCK non-state-owned 1.12% 7,093,148
FUND corporation
Shares held by the top ten non-restricted share holders
Number of non-restricted shares Type of shares
Name of shareholder
held Type Number
Domestically listed foreign
GAOLING FUND,L.P. 54,149,586 54,149,586
shares
FINANCE BUREAU OF WUXI 22,057,657 RMB ordinary shares 22,057,657
Domestically listed foreign
BOCI SECURITIES LIMITED 20,920,731 20,920,731
shares
GUOTAI JUNAN Domestically listed foreign
13,379,642 13,379,642
SECURITIES(HONGKONG) LIMITED shares
NATIONAL SOCIAL SECURITY FUND
12,000,000 RMB ordinary shares 12,000,000
PORTFOLIO 102
CHINA CONSTRUCTION BSNK- BOSHI
8,999,108 RMB ordinary shares 8,999,108
THEME INDUSTRIAL STOCK FUND
NATIONAL SOCIAL SECURITY FUND
7,180,101 RMB ordinary shares 7,180,101
PORTFOLIO 108
CHINA CONSTRUCTION BSNK－
PENGHUA VALUE ADVANCED STOCK 7,093,148 RMB ordinary shares 7,093,148
FUND
SUN HUNG KAI INVESTMENT Domestically listed foreign
6,496,979 6,496,979
SERVICES LTD-CUSTOMERS A/C shares
GD MIDEA HOLDING CO., LTD. 6,319,556 RMB ordinary shares 6,319,556
Explanation on associated relationship or
GD MIDEA HOLDING CO., LTD. and TITONI INVESTMENTS DEVELOPMENT
persons acting in concert among the
LTD. are parties acting in concert.
above-mentioned shareholders
Shareholders taking part in margin
Naught
financing and securities lending (if any)
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes
Unit: RMB Ten thousand
30 Sept. 31 Dec. Increase/ Increase/
Statement items Note
2013 2012 decrease decrease (%)
Transactional Forward exchange contracts signed with
1,517.63 122.46 1,395.17 1139%
financial assets banks increased.
Accounts receivable 94,925.12 72,219.89 22,705.23 31% Sales increased.
Prepayments 16,771.66 9,718.84 7,052.81 73% Prepayments for materials increased.
Energy-saving & people-benefiting
Other receivables 13,878.70 1,698.45 12,180.25 717%
subsidies receivable increased.
The Company purchased more bank
Other current assets 181,274.14 120,117.18 61,156.96 51%
wealth management products.
Construction in Input to the preliminary phase of the
1.13 - 1.13 100%
process construction work
Long-term deferred The book value of molds decreased due
1,115.13 2,772.99 -1,657.86 -60%
expenses to amortization.
The deductible temporary differences
Deferred income tax
14,830.02 10,030.89 4,799.12 48% increased as the operating payables
assets
increased.
Notes payable 41,744.84 100,309.07 -58,564.23 -58% Some notes payable were honored.
Other payables 4,985.52 7,172.64 -2,187.11 -30% Operating advances received decreased.
Deferred income tax The fair value of transactional financial
230.66 21.17 209.49 990%
liabilities assets increased.
Other non-current The deferred incomes decreased due to
74.44 127.18 -52.74 -41%
liabilities amortization.
Jan.-Sept. Jan.-Sept. Increase/ Increase/
Statement items Note
2013 2012 decrease decrease (%)
Sales increased due to recovery of the
Operating revenues 635,011.47 457,511.83 177,499.64 39%
market.
It increased as the sales income
Operating costs 477,923.26 356,685.50 121,237.76 34%
increased.
Business taxes and 4,066.91 2,427.40 1,639.51 68% It increased as the turnover tax
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
surtaxes increased.
The sales mode changed and the sales
Selling expenses 87,377.19 50,022.02 37,355.16 75%
increased.
Administrative
28,347.49 18,888.64 9,458.85 50% The Company increased the R&D input.
expenses
The exchange loss increased due to
exchange rate fluctuations. And the gain
Financial expenses 2,210.16 -5,190.64 7,400.80 143%
on bank wealth management products
was reclassified as investment gain.
The raw material falling price loss
Asset impairment increased and the bad debt provisions
2,333.03 -472.14 2,805.17 594%
loss increased as accounts receivable
increased.
Gain on fair value The gain on the fair value changes of the
1,395.17 -401.11 1,796.28 448%
changes forward exchange contracts increased.
The gain on bank wealth management
Investment gains 7,381.29 535.70 6,845.59 1278% products was reclassified from financial
expenses to this item.
Non-operating The loss on disposal of fixed assets
1,448.66 539.94 908.72 168%
expenses increased.
Income tax expenses 6,559.94 5,043.42 1,516.52 30% It increased as the total profit increased.
Minority interest
4,068.58 1,296.10 2,772.48 214% The gains on subsidiaries increased.
income
Other The foreign-currency statement
comprehensive -67.25 10.80 -78.05 -723% translation differences changed on
incomes foreign exchange fluctuations.
Net cash flows from Cash received from sale of goods and
92,414.81 64,696.88 27,717.93 43%
operating activities rendering of services increased.
Net cash flows from Cash paid to buy bank wealth
-60,771.69 -10,103.99 -50,667.69 -501%
investing activities management products increased.
Net cash flows from
-18,331.20 -12,562.01 -5,769.19 -46% Cash paid as dividends increased.
financing activities
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
II. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the reporting period or such
commitments carried down into the reporting period
Time of
Commitmen Period of
Commitment Contents making Fulfillment
t maker commitment
commitment
Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea Holding) plans to sell the
Company’s shares released from trading moratorium held by it via the bid trading system of the
Commitment on share Controlling In the process of
Shenzhen Stock Exchange, and Midea Holding decreases over 5% shares within six months since the 28 Feb. 2008 Long-term
reform shareholder implementation
first reduction of holdings, Midea Holding will disclose the suggestive announcement on share selling
through the Company two trading days before its first reduction of holdings.
1. As for Midea Holding’s commitment on share lock-up, it has committed that it will not transfer
Little Swan shares held by it within 36 months since the date when the private share offering deal is
Fulfillment of
closed.
Commitment 1 was
2. As for the commitment of avoiding horizontal competition, Midea Holding (the controlling
completed by 1 Dec.
shareholder) and Mr. He Xiangjian (the actual controller) has promised that, for the period after the
2013.
said transaction when the Company’s controlling shareholder and actual controller remain unchanged,
About Commitment
Midea Holding, Mr. He Xiangjian and other subsidiary companies under their control excluding the
7 (2), the contract
Controlling Company and the Company’s subordinate companies will not increase business or establish new
Commitment in the about the
shareholder subsidiary companies engaged in business which is the same with or similar to the Company’s main In the process of
acquisition report or the 1 Dec. 2010 “Royalstar”
and actual business or forms substantial horizontal competition with the Company. If they act against the implementation
report on equity changes trademark expired
controller commitment above, profits thus generated will be attributable to the Company.
on 31 Mar. 2013 and
3. As for the commitment for regulating related-party transactions, GD Midea Holding (the was not renewed.
controlling shareholder) and Mr. He Xiangjian (the actual controller) have promised that when there Other commitments
are inevitable related-party transactions or such transaction incurred with rational reasons after the are still in
completion of the transaction, they will follow the fair, reasonable and market principles in formulating implementation.
and signing relevant agreements on such related-party transactions and ensure that no harm will be
done to interests of the Company and other shareholders. Where GD Midea Holding and Mr. He
Xiangjian act against the promise above and damage interests of the Company and other shareholders,
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
they will assume liabilities for compensation according to relevant provisions.
4. As for the commitment on independence, GD Midea Holding has promised to protect Little
Swan’s independence in terms of assets, staff, finance, organization and business.
5. As for the commitment on related-party deposits and borrowings, up to 8 Apr. 2010, the
Financial Settlement Center of GD Midea Holding had settled all internal deposits and borrowings
with Hefei Midea Washing Machine Co., Ltd. (formerly known as “Hefei Royalstar Washing
Equipment Manufacturing Co., Ltd.; hereinafter referred to as “Midea Washing Machine”); and GD
Midea Holding has promised that there will be no more deposits, borrowings or other funds flows
incurred between the Financial Settlement Center and Midea Washing Machine.
6. The commitment by GD Midea Holding on housing properties with no ownership certificates
of the target company for sale is detailed as follows. Two pieces of the buildings of Midea Washing
Machine assessed and sold to the Company are of no ownership certificates?the warehouse for
half-finished products (176 square meters) and the workshop for injection molding (834 square
meters), both located in the old factory of Midea Washing Machine, Hewa Road, Hefei. GD Midea
Holding has promised that if loss occurs due to the said two buildings without ownership certificates in
the asset disposal process in the future, it will assume the loss thus caused and make compensation to
the Company.
7. The commitment by GD Midea Holding on trademarks is detailed as follows. (1) Concerning
the “Midea” trademark: Upon approval and implementation of the equity transfer transaction, GD
Midea Holding has promised that it will make sure that Midea Washing Machine uses the “Midea”
trademark in a proper manner. Midea Washing Machine will be allowed to use the “Midea” trademark
with a trademark use fee not more than that paid by Midea Group (the controlling shareholder of GD
Midea Holding) and its subsidiaries (currently 3‰ of the annual sales income generated by products
using the “Midea” trademark), and upon negotiation and signing of the “Agreement for Trademark
Use”. The related-party transactions incurred due to the said use of the “Midea” trademark will be
submitted to the decision-making organ of the Company for approval according to the stipulated
procedure. As such, interests of the Company and its minority shareholders will be safeguarded. (2)
Concerning the “Royalstar” trademark: GD Midea Holding has signed the “Contract for Trademark
Use” with Royalstar Group and obtained the ordinary use rights of the “Royalstar” (and “荣事达” in
Chinese) trademark. As the transferor in the transfer transaction of equity interests of Midea Washing
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Machine, GD Midea Holding has promised that within the scope as agreed in the “Contract for
Trademark Use”, if any dispute arises between Midea Washing Machine and Royalstar Group over the
former’s execution of the “Contract for Trademark Use”, Little Swan will not be involved. If Midea
Washing Machine and Little Swan have to assume any responsibility or loss due to the aforesaid
dispute, GD Midea Holding is willing to take on the responsibility instead and make compensations to
Midea Washing Machine and Little Swan at full amount.
8. The commitment by GD Midea Holding on social security payment and tax risks is detailed as
follows. GD Midea Holding has promised that upon the completion of the said equity transfer deal, if
Midea Washing Machine is obliged to take on any responsibility or pay relevant fares as required by
relevant government authorities due to its social security payment before the said deal, GD Midea
Holding is willing to pay relevant fares for Midea Washing Machine to relevant government authorities
in a timely manner and assume any other liability. If any loss thus occurs to Midea Washing Machine
or Little Swan, GD Midea Holding is willing to assume relevant responsibilities for compensation.
Upon the completion of the said equity transfer deal, if income tax evasion or any other tax risk is
found in Midea Washing Machine, GD Midea Holding is willing to assume relevant legal
responsibilities and risks and pay relevant taxes in a timely manner to relevant government authorities;
and if any loss thus occurs to Little Swan, GD Midea Holding will assume the corresponding
responsibility for compensation.
Commitments made in an
Naught
asset exchange
Commitments made in
first public issuance or Naught
refinancing.
Other commitments made
Naught
to minority shareholders
Executed in time or not? Yes
Detailed reason for failing
to execute and the plan for Inapplicable
the next step (If any)
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
III. Predict the 2013 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the year to the end of the next reporting
period compared with the same period of the last year according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
IV. Securities investment
Unit: RMB Ten thousand
Proportion of the closing Actual
Related-party Initial Opening Impairment Closing
Type of derivative investment amount in the gain/loss in
Operator Relation transaction or investment Beginning date Ending date investment provision (if investment
investment Company’s closing net reporting
not amount amount any) amount
assets (%) period
Forward exchange
Bank No No 65,525.96 10 Jan. 2013 7 Jan. 2015 24,245.04 66,314.29 14.99% 2,502.21
contract
Total 65,525.96 -- -- 24,245.04 0 66,314.29 14.99% 2,502.21
Capital source for derivative investment All self-owned funds
Litigation cases situation (if applicable) Inapplicable
Disclosure date of the board announcement approving the
3 Nov. 2012, 6 Aug. 2013
wealth management entrustment (if any)
Disclosure date of the general meeting announcement
21 Nov. 2012, 28 Aug. 2013
approving the wealth management entrustment (if any)
The Company has formulated the Management Methods for Futures Hedging Business and the Management Methods for Exchange
Analysis on risks and control measures of derivative products Funds upon review to thoroughly assess and control derivative investment risks, which are detailed as follows:
held in the reporting period (including but not limited to 1. Market risk
market risk, liquidity risk, credit risk, operation risk, law risk, Price movements of bulk raw materials and fluctuations of exchange rates may incur a great market risk in the futures business and the
etc.) foreign exchange funds business. Meanwhile, if the Company fails to input enough funds in time to create and maintain hedging
positions in its futures hedging operations, or fails to input foreign exchanges on time for contract execution in the foreign exchange
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
funds business, hedging loss and contract breach risk may incur.
Counter-measures: The Company will not carry out speculative trading in its futures hedging business and foreign exchange funds
business. And the Company will stick to the principle of being prudent in operations. As for the futures hedging business, the hedging
volume should be determined and futures trading applications should be filed in strict accordance with production and operation
needs. In principle, the hedging volume shall not exceed one third of the planned volume for the year. And a stop-loss mechanism is
adopted. Guarantee deposits are paid as required and increased according to production and operation needs. As for the foreign
exchange funds business, a from-the-bottom-up management mechanism is adopted. When subsidiaries or product enterprises file
applications for funds business, they will give a risk analysis on conditions or circumstances that might affect gains and losses,
estimate the maximum gain and loss, and state the ratio or total amount of guarantee deposits they can bear. And the Company will,
according to their applications, update operations in time in its funds business and make funds arrangements before the maturity date.
2. Operation risk
The Company may suffer loss in its hedging business and foreign exchange funds business due to faulty internal procedures, staff,
systems and external events.
Counter-measures: Responsibility division and approval procedures for the hedging and foreign exchange business have been
specified in relevant management rules. And a sound supervision mechanism has been established. And operation risk can be
effectively reduced by enhancing risk control over procedures for operation, decision-making and trading.
3. Risk concerning laws and regulations
The Company carries out its hedging and foreign exchange business in compliance with applicable laws and regulations, with rights
and duties between the Company and agencies being stated clearly.
Counter-measures: The Company urges responsible departments to understand better about relevant laws, regulations and market
rules; be strict in contract re-checks; make clear relevant rights and duties; and enhance compliance checks to make sure that the
Company operates derivative investments in compliance with applicable laws, regulations and the Company’s internal management
rules.
Changes of market prices or fair values in the reporting
period of the invested derivatives. And the analysis on the fair The Company adopts public quotations in the futures market or forward foreign exchange quotations declared by the People’s Bank of
value of the derivatives should include the specific use China in its analysis on fair values of derivative products.
methods and the relevant assumptions and parameters.
Whether significant changes occurred to the Company’s
No significant changes.
accounting policy and specific accounting principles of
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
derivatives in the reporting period compared to the previous
reporting period
Independent directors of the Company believe that: A. The Company has formulated derivative investment rules such as the
Management Methods for Futures Hedging Business and the Management Methods for Exchange Funds to help it effectively control
risks involved; B. During the reporting period, the Company performed the relevant approval procedure before it conducted derivative
Specific opinion from independent directors on the investments in strict compliance with the lines and ways approved by the Shareholders’ General Meeting; And C. The Company’s
Company’s derivatives investment and risk control derivative investments in the reporting period mainly targeted its exports. It signed forward exchange contracts with domestic financial
institutions, which helped it lock up the exchange rate and avoid the risk of exchange rate fluctuations. The Company conducted no
speculative operations, so there was no credit risk. And transaction periods were determined according to expectations and payment
receiving and making, with no influence on the Company’s fluidity.
V. Researches, visits and interviews received in the reporting period
Time of Place of Way of Visitor Main discussion and materials provided
Visitor
reception reception reception type by the Company
Changjiang Securities, Broad Capital, Nanjing Securities, Orient Securities Asset Management,
Conference PICC Asset Management, Zhonghai Fund, CPIC Asset Management, China Post Fund, Soochow
Field
13 Aug. 2013 Room of the Institution Securities, Everbright Securities Asset Management, China Life Asset Management, Hua’an Overall operation of the Company
research
Company Funds, Wanjia Asset, J-high Investment, Fullgoal Fund Management, Dacheng Fund, Shanghai
Congrong Investment Management, Shanghai Elegant Investment.
Conference
Field
6 Sep. 2013 Room of the Institution Morgan Stanley Overall operation of the Company
research
Company
Conference
Field
12 Sep. 2013 Room of the Institution Bohai Securities Overall operation of the Company
research
Company
13
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,470,176,770.74 1,404,291,094.65
Settlement reserves
Intra-group lendings
Transactional financial assets 15,176,250.00 1,224,590.00
Notes receivable 1,731,820,586.81 2,262,814,443.87
Accounts receivable 949,251,177.84 722,198,904.66
Accounts paid in advance 167,716,569.23 97,188,434.21
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 138,787,020.67 16,984,517.49
Financial assets purchased under agreements to resell
Inventories 817,683,242.52 952,747,860.68
Non-current assets due within 1 year
Other current assets 1,812,741,395.82 1,201,171,819.72
Total current assets 7,103,353,013.63 6,658,621,665.28
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 301,056.00 286,944.00
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 4,685,470.12 5,695,850.80
Investing property 4,904,348.73 5,049,500.73
Fixed assets 1,218,231,681.21 1,297,298,526.31
Construction in progress 11,271.70
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 223,995,542.93 308,714,119.44
R&D expense
Goodwill
Long-term deferred expenses 11,151,330.72 27,729,917.87
Deferred income tax assets 148,300,161.00 100,308,918.86
Other non-current assets
Total of non-current assets 1,611,580,862.41 1,745,083,778.01
Total assets 8,714,933,876.04 8,403,705,443.29
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Customer bank deposits and due to banks and other
financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 417,448,393.73 1,003,090,693.95
Accounts payable 2,583,906,478.01 2,129,979,583.30
Accounts received in advance 963,659,588.73 804,441,642.84
Financial assets sold for repurchase
Handling charges and commissions payable
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Employee’s compensation payable 156,698,339.24 125,902,663.09
Tax payable 96,779,918.15 -3,821,048.41
Interest payable
Dividend payable 4,401,175.07 3,710,206.21
Other accounts payable 49,855,208.43 71,726,352.37
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of securities
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 4,272,749,101.36 4,135,030,093.35
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables 2,073,957.30 2,607,427.30
Estimated liabilities 12,444,043.27 14,041,361.41
Deferred income tax liabilities 2,306,550.90 211,685.10
Other non-current liabilities 744,400.00 1,271,800.00
Total non-current liabilities 17,568,951.47 18,132,273.81
Total liabilities 4,290,318,052.83 4,153,162,367.16
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,129,421,308.91 1,129,409,313.71
Less: Treasury stock
Specific reserves
Surplus reserves 270,617,248.93 270,617,248.93
Provisions for general risks
Retained profits 1,790,376,824.46 1,656,317,300.32
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Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Foreign exchange difference -3,305,657.67 -2,621,131.09
Total equity attributable to owners of the Company 3,819,597,488.63 3,686,210,495.87
Minority interests 605,018,334.58 564,332,580.26
Total owners’ (or shareholders’) equity 4,424,615,823.21 4,250,543,076.13
Total liabilities and owners’ (or shareholders’) equity 8,714,933,876.04 8,403,705,443.29
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
2. Balance sheet of the Company
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 730,101,547.98 922,427,475.16
Transactional financial assets 9,335,400.00 1,003,870.00
Notes receivable 1,263,227,270.23 1,630,477,941.72
Accounts receivable 602,861,346.05 315,755,445.34
Accounts paid in advance 79,541,595.41 56,491,157.88
Interest receivable
Dividend receivable
Other accounts receivable 106,222,830.76 14,097,542.06
Inventories 521,331,194.03 595,440,128.45
Non-current assets due within 1 year
Other current assets 950,703,113.14 510,244,753.07
Total current assets 4,263,324,297.60 4,045,938,313.68
Non-current assets:
Available-for-sale financial assets 301,056.00 286,944.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,668,429,549.19 1,669,439,929.87
17
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Investing property 4,904,348.73 5,049,500.73
Fixed assets 581,335,666.93 599,765,994.35
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 104,875,926.50 106,918,898.60
R&D expense
Goodwill
Long-term deferred expenses 10,628,943.46 26,516,523.53
Deferred income tax assets 100,224,139.86 65,508,358.77
Other non-current assets
Total of non-current assets 2,470,699,630.67 2,473,486,149.85
Total assets 6,734,023,928.27 6,519,424,463.53
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 265,220,993.73 557,839,790.34
Accounts payable 1,683,596,584.98 1,340,509,488.90
Accounts received in advance 673,758,704.94 540,385,145.87
Employee’s compensation payable 82,132,700.38 38,376,269.86
Tax payable 86,083,422.13 15,517,733.11
Interest payable
Dividend payable 4,401,175.07 3,710,206.21
Other accounts payable 12,999,104.09 130,963,937.18
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 2,808,192,685.32 2,627,302,571.47
Non-current liabilities:
18
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 1,430,423.40 178,577.10
Other non-current liabilities 150,000.00 600,000.00
Total non-current liabilities 1,580,423.40 778,577.10
Total liabilities 2,809,773,108.72 2,628,081,148.57
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,291,473,364.14 1,291,461,368.94
Less: Treasury stock
Specific reserves
Surplus reserves 257,967,105.03 257,967,105.03
Provisions for general risks
Retained profits 1,742,322,586.38 1,709,427,076.99
Foreign exchange difference
Total owners’ (or shareholders’) equity 3,924,250,819.55 3,891,343,314.96
Total liabilities and owners’ (or shareholders’) equity 6,734,023,928.27 6,519,424,463.53
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
3. Consolidated income statement for the reporting period
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Jul.-Sept. 2013 Jul.-Sept. 2012
I. Total operating revenues 2,351,890,369.69 1,473,789,609.57
Including: Sales income 2,351,890,369.69 1,473,789,609.57
II. Total operating cost 2,243,884,051.21 1,374,306,687.61
19
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Including: Cost of sales 1,773,421,672.92 1,112,974,410.55
Taxes and associate charges 14,711,505.82 8,542,279.13
Selling and distribution expenses 333,805,764.77 216,375,597.77
Administrative expenses 110,382,703.36 65,261,521.75
Financial expenses 1,958,463.49 -21,366,401.26
Asset impairment loss 9,603,940.85 -7,480,720.33
Add: Gain/(loss) from change in fair value (“-” means
3,367,000.00 281,200.00
loss)
Gain/(loss) from investment (“-” means loss) 35,231,232.64 294,185.63
III. Business profit (“-” means loss) 146,604,551.12 100,058,307.59
Add: non-operating income 11,627,742.66 8,440,955.85
Less: non-operating expense 7,054,088.32 1,711,969.16
IV. Total profit (“-” means loss) 151,178,205.46 106,787,294.28
Less: Income tax expense 22,607,062.03 16,405,085.55
V. Net profit (“-” means loss) 128,571,143.43 90,382,208.73
Attributable to owners of the Company 102,844,386.41 95,335,283.53
Minority shareholders’ income 25,726,757.02 -4,953,074.80
VI. Earnings per share -- --
(I) Basic earnings per share 0.16 0.15
(II) Diluted earnings per share 0.16 0.15
Ⅶ. Other comprehensive incomes -102,839.73 36,326.83
Ⅷ. Total comprehensive incomes 128,468,303.70 90,418,535.56
Attributable to owners of the Company 102,741,546.68 95,371,610.37
Attributable to minority shareholders 25,726,757.02 -4,953,074.81
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
4. Income statement of the Company for the reporting period
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Jul.-Sept. 2013 Jul.-Sept. 2012
20
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
I. Total sales 1,674,972,222.91 1,013,933,264.74
Less: cost of sales 1,313,528,463.00 700,993,561.56
Business taxes and surcharges 10,712,797.70 3,977,493.09
Distribution expenses 243,078,146.76 165,040,093.01
Administrative expenses 70,987,207.69 36,581,382.90
Financial costs 55,060.61 -15,244,321.67
Impairment loss 3,791,558.79 -1,489,990.46
Add: gain/(loss) from change in fair value (“-” means
1,818,010.00 33,700.00
loss)
Gain/(loss) from investment (“-” means loss) 19,663,159.44 13,285.62
II. Business profit (“-” means loss) 54,300,157.80 124,122,031.93
Add: non-business income 3,467,962.17 4,981,749.12
Less: non-business expense 2,213,259.41 1,287,694.69
III. Total profit (“-” means loss) 55,554,860.56 127,816,086.36
Less: income tax expense 8,333,229.08 19,172,412.94
IV. Net profit (“-” means loss) 47,221,631.48 108,643,673.42
V. Earnings per share -- --
(I) Basic earnings per share 0.07
(II) Diluted earnings per share 0.07
VI. Other comprehensive income 49,980.00 -43,982.40
VII. Total comprehensive income 47,271,611.48 108,599,691.02
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
5. Consolidated income statement for Jan.-Sept. 2013
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Total operating revenues 6,350,114,706.00 4,575,118,340.72
Including: Sales income 6,350,114,706.00 4,575,118,340.72
Interest income
21
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Premium income
Handling charge and commission income
II. Total operating cost 6,022,580,316.08 4,223,607,892.39
Including: Cost of sales 4,779,232,584.06 3,566,854,991.74
Interest expenses
Handling charge and commission expenses
Surrenders
Net claims paid
Net amount withdrawn for the insurance contract
reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 40,669,122.03 24,274,034.12
Selling and distribution expenses 873,771,862.53 500,220,233.73
Administrative expenses 283,474,894.04 188,886,422.93
Financial expenses 22,101,561.23 -51,906,392.02
Asset impairment loss 23,330,292.19 -4,721,398.11
Add: Gain/(loss) from change in fair value (“-” means
13,951,660.00 -4,011,100.00
loss)
Gain/(loss) from investment (“-” means loss) 73,812,914.09 5,356,978.26
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 415,298,964.01 352,856,326.59
Add: non-operating income 29,278,637.87 27,501,683.28
Less: non-operating expense 14,486,580.26 5,399,416.28
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) 430,091,021.62 374,958,593.59
Less: Income tax expense 65,599,413.96 50,434,192.50
V. Net profit (“-” means loss) 364,491,607.66 324,524,401.09
Including: Net profit achieved by combined parties
before the combinations
22
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Attributable to owners of the Company 323,805,853.35 311,563,419.10
Minority shareholders’ income 40,685,754.31 12,960,981.99
VI. Earnings per share -- --
(I) Basic earnings per share 0.51 0.49
(II) Diluted earnings per share 0.51 0.49
Ⅶ. Other comprehensive incomes -672,531.38 108,014.36
Ⅷ. Total comprehensive incomes 363,819,076.28 324,632,415.45
Attributable to owners of the Company 323,133,321.97 311,671,433.46
Attributable to minority shareholders 40,685,754.31 12,960,981.99
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
6. Income statement of the Company for Jan.-Sept. 2013
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Total sales 4,585,374,586.77 2,909,107,810.99
Less: cost of sales 3,510,911,722.40 2,166,587,179.72
Business taxes and surcharges 31,033,628.81 16,671,668.22
Distribution expenses 637,153,613.83 348,600,437.79
Administrative expenses 180,536,721.37 109,141,723.73
Financial costs 12,229,740.00 -40,419,972.40
Impairment loss 6,642,092.71 -1,503,842.51
Add: gain/(loss) from change in fair value (“-” means
8,331,530.00 -2,634,600.00
loss)
Gain/(loss) from investment (“-” means loss) 42,405,848.12 3,241,278.25
Including: income form investment on associates and
joint ventures
II. Business profit (“-” means loss) 257,604,445.77 310,637,294.69
Add: non-business income 11,460,429.17 17,087,896.34
Less: non-business expense 6,814,563.01 4,512,357.11
Including: loss from non-current asset disposal
III. Total profit (“-” means loss) 262,250,311.93 323,212,833.92
23
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Less: income tax expense 39,608,473.35 41,173,005.09
IV. Net profit (“-” means loss) 222,641,838.58 282,039,828.83
V. Earnings per share -- --
(I) Basic earnings per share 0.35
(II) Diluted earnings per share 0.35
VI. Other comprehensive income 11,995.20 -91,963.20
VII. Total comprehensive income 222,653,833.78 281,947,865.63
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
7. Consolidated cash flow statement for Jan.-Sept. 2013
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering
5,442,525,374.24 4,726,491,546.63
of service
Net increase of deposits from customers and dues from
banks
Net increase of loans from the central bank
Net increase of funds borrowed from other financial
institutions
Cash received from premium of original insurance
contracts
Net cash received from reinsurance business
Net increase of deposits of policy holders and
investment fund
Net increase of disposal of tradable financial assets
Cash received from interest, handling charges and
commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 83,523,076.70 122,164,028.80
Other cash received relating to operating activities 29,429,979.50 81,125,915.46
24
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Subtotal of cash inflows from operating activities 5,555,478,430.44 4,929,781,490.89
Cash paid for goods and services 2,786,581,207.50 3,078,017,111.66
Net increase of customer lendings and advances
Net increase of funds deposited in the central bank and
amount due from banks
Cash for paying claims of the original insurance
contracts
Cash for paying interest, handling charges and
commissions
Cash for paying policy dividends
Cash paid to and for employees 448,347,381.57 336,128,353.42
Various taxes paid 364,241,388.70 262,413,830.49
Other cash payment relating to operating activities 1,032,160,321.78 606,253,355.51
Subtotal of cash outflows from operating activities 4,631,330,299.55 4,282,812,651.08
Net cash flows from operating activities 924,148,130.89 646,968,839.81
II. Cash flows from investing activities:
Cash received from withdrawal of investments 7,593,702,834.77
Cash received from return on investments 11,120,460.00 5,292,805.12
Net cash received from disposal of fixed assets,
21,044,377.77 6,614,626.30
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or other
business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 7,625,867,672.54 11,907,431.42
Cash paid to acquire fixed assets, intangible assets and
77,524,540.48 112,947,355.47
other long-term assets
Cash paid for investment 8,156,060,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other business
units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 8,233,584,540.48 112,947,355.47
Net cash flows from investing activities -607,716,867.94 -101,039,924.05
III. Cash Flows from Financing Activities:
25
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Cash received from capital contributions
Including: Cash received from minority shareholder
investments by subsidiaries
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities
Repayment of borrowings 6,961,486.36
Cash paid for interest expenses and distribution of
183,312,022.63 118,658,592.00
dividends or profit
Including: dividends or profit paid by subsidiaries to
minority shareholders
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 183,312,022.63 125,620,078.36
Net cash flows from financing activities -183,312,022.63 -125,620,078.36
IV. Effect of foreign exchange rate changes on cash and
cash equivalents
V. Net increase in cash and cash equivalents 133,119,240.32 420,308,837.40
Add: Opening balance of cash and cash equivalents 1,293,126,217.00 2,279,653,302.57
VI. Closing balance of cash and cash equivalents 1,426,245,457.32 2,699,962,139.97
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
8. Cash flow statement of the Company for Jan.-Sept. 2013
Prepared by Wuxi Little Swan Company Limited Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering
3,297,310,258.35 3,089,189,408.94
of service
Tax refunds received 26,272,444.49 21,382,312.81
Other cash received relating to operating activities 17,751,046.44 61,646,897.27
Subtotal of cash inflows from operating activities 3,341,333,749.28 3,172,218,619.02
26
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Cash paid for goods and services 1,475,159,756.56 1,901,352,605.16
Cash paid to and for employees 277,552,402.16 184,973,898.17
Various taxes paid 276,251,059.17 202,975,442.16
Other cash payment relating to operating activities 807,407,602.30 338,055,410.80
Subtotal of cash outflows from operating activities 2,836,370,820.19 2,627,357,356.29
Net cash flows from operating activities 504,962,929.09 544,861,262.73
II. Cash flows from investing activities:
Cash received from retraction of investments 3,655,470,698.80
Cash received from return on investments 6,945,530.00 3,137,105.12
Net cash received from disposal of fixed assets,
2,172,280.00 6,203,160.22
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or other
business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 3,664,588,508.80 9,340,265.34
Cash paid to acquire fixed assets, intangible assets and
58,489,377.34 79,937,012.50
other long-term assets
Cash paid for investment 4,067,000,000.00
Net cash paid to acquire subsidiaries and other business
units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 4,125,489,377.34 79,937,012.50
Net cash flows from investing activities -460,900,868.54 -70,596,747.16
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities
Repayment of borrowings
Cash paid for interest expenses and distribution of
183,315,363.93 118,658,592.00
dividends or profit
27
Report for the Third Quarter of 2013 of Wuxi Little Swan Company Limited
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 183,315,363.93 118,658,592.00
Net cash flows from financing activities -183,315,363.93 -118,658,592.00
IV. Effect of foreign exchange rate changes on cash and
cash equivalents
V. Net increase in cash and cash equivalents -139,253,303.38 355,605,923.57
Add: Opening balance of cash and cash equivalents 848,257,647.96 1,470,854,364.19
VI. Closing balance of cash and cash equivalents 709,004,344.58 1,826,460,287.76
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
II. Audit report
Is this report audited?
□ Yes √ No
This report is not audited.
Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo
23 Oct. 2013
28
