Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Wuxi Little Swan Company Limited
Report for the First Quarter of 2014
April 2014
1
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of Wuxi
Little Swan Company Limited (hereinafter referred to as “the Company”) warrant that the information carried in
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.
Mr. Fang Hongbo, company principal, Mr. Yin Bitong, General Manager,Mr. Zhang Zhaofeng, chief of the
accounting work, and Mr. Zhong Fangliu, chief of the accounting organ (chief of accounting), hereby confirm that
the Financial Report enclosed in this report is factual, accurate and complete.
All directors have attended the board session for reviewing this report.
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 First Quarter of 2014 of Wuxi Little Swan Company Limited
Section II. Financial Highlights & Change of Shareholders
I. Main accounting data and financial indicators
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
Jan.-Mar. 2014 Jan.-Mar. 2013 +/- (%)
Operating revenues (RMB Yuan) 2,576,160,088.43 2,359,241,990.64 9.19%
Net profit attributable to shareholders of
170,774,457.85 111,003,706.39 53.85%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 151,478,381.44 97,158,049.17 55.91%
losses (RMB Yuan)
Net cash flows from operating activities
271,964,312.53 277,826,039.48 -2.11%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.27 0.18 50%
Diluted EPS (RMB Yuan/share) 0.27 0.18 50%
Weighted average ROE (%) 4.28% 2.97% 1.31%
31 Mar. 2014 31 Dec. 2013 +/- (%)
Total assets (RMB Yuan) 9,185,771,871.64 9,222,527,380.74 -0.4%
Net assets attributable to shareholders of
4,079,910,391.09 3,908,897,654.74 4.37%
the Company (RMB Yuan)
Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item 1 Jan. 2014-31 Mar. 2014 Explanation
Gain/loss on the disposal of non-current assets (including the
7,808.97
offset part of the asset impairment provisions)
Government grants recognized in the current period, except for
those acquired in the ordinary course of business or granted at
3,223,476.09
certain quotas or amounts according to the government’s unified
standards
Gain/loss on entrusting others with investments or asset
20,060,768.66
management
Gain/loss on debt restructuring 129,996.52
Other gain and loss items that meet the definition of an 3,991,820.23
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
extraordinary gain/loss
Less: Income tax effects 4,112,080.57
Minority interests effects (after tax) 4,005,713.49
Total 19,296,076.41 --
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 shareholdings of top 10 shareholders
Unit: share
Total number of shareholders at the
31,796
period-end
Shareholdings of top 10 shareholders
Pledged or
Sharehol frozen shares
Number of
Nature of ding Number of Num
Name of shareholder restricted
shareholder percenta shares held Status of ber of
shares held
ge (%) shares share
s
Domestic
MIDEA GROUP CO., LTD. non-state-owned 35.2% 222,661,571
corporation
Overseas
GAOLING FUND,L.P. 8.56% 54,151,586
corporation
Overseas
TITONI INVESTMENTS DEVELOPMENT LTD. 4.88% 30,851,714
corporation
State-owned
FINANCE BUREAU OF WUXI 3.49% 22,057,657
corporation
Overseas
BOCI SECURITIES LIMITED 3.35% 21,189,109
corporation
GUOTAI JUNAN SECURITIES(HONGKONG) Overseas
2.29% 14,477,631
LIMITED corporation
NATIONAL SOCIAL SECURITY FUND PORTFOLIO
Other 1.9% 12,000,000
102
ICBC－CHINA UNIVERSAL EQUILIBRIUM
GROWTH STOCK SECURITIES Other 1.32% 8,332,125
INVESTMENT FUND
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
CHINA CONSTRUCTION BANK—PENGHUA
ADVANCED STOCK SECURITIES INVESTMENT Other 1.12% 7,093,148
FUND
NATIONAL SOCIAL SECURITY FUND
Other 0.98% 6,180,101
PORTFOLIO 108
Shareholdings of top 10 non-restricted shareholders
Number of non-restricted Variety of shares
Name of shareholder
shares held Variety Number
RMB ordinary
MIDEA GROUP CO., LTD. 222,661,571 222,661,571
shares
Domestically listed
GAOLING FUND,L.P. 54,151,586 54,151,586
foreign shares
Domestically listed
TITONI INVESTMENTS DEVELOPMENT LTD. 30,851,714 30,851,714
foreign shares
RMB ordinary
FINANCE BUREAU OF WUXI 22,057,657 22,057,657
shares
Domestically listed
BOCI SECURITIES LIMITED 21,189,109 21,189,109
foreign shares
GUOTAI JUNAN SECURITIES(HONGKONG) Domestically listed
14,477,631 14,477,631
LIMITED foreign shares
NATIONAL SOCIAL SECURITY FUND PORTFOLIO RMB ordinary
12,000,000 12,000,000
102 shares
ICBC－CHINA UNIVERSAL EQUILIBRIUM
RMB ordinary
GROWTH STOCK SECURITIES 8,332,125 8,332,125
shares
INVESTMENT FUND
CHINA CONSTRUCTION BANK—PENGHUA
RMB ordinary
ADVANCED STOCK SECURITIES INVESTMENT 7,093,148 7,093,148
shares
FUND
NATIONAL SOCIAL SECURITY FUND RMB ordinary
6,180,101 6,180,101
PORTFOLIO 108 shares
Explanation on associated relationship or persons acting MIDEA GROUP CO., LTD. and TITONI INVESTMENTS
in concert among the above-mentioned shareholders DEVELOPMENT LTD. are parties acting in concert.
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 First Quarter of 2014 of Wuxi Little Swan Company Limited
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the
reporting period, as well as the reasons for these changes
31 Mar. 31 Dec.
2014/Jan.-Mar. 2013/Jan.-Mar. +/- (RMB Ten
Statement item +/-% Notes
2014 (RMB Ten 2013 (RMB Ten thousand)
thousand) thousand)
Affected by RMB depreciation, the fair
Transactional
309.09 1,501.67 -1,192.58 -79.42% value of forward exchange contracts
financial assets
decreased.
Inventories 47,452.44 79,814.18 -32,361.75 -40.55% Due to the production and sale cycle
The banker’s acceptance bills issued by
Notes payable 58,142.61 38,567.31 19,575.30 50.76%
the Company increased.
Accounts received in
46,948.81 105,795.26 -58,846.45 -55.62% Due to the sale cycle
advance
Taxes and fares
31,746.36 19,920.38 11,825.98 59.37% The sales and profit increased.
payable
Financial expenses -270.63 886.19 -1,156.82 -130.54% The exchange loss decreased.
Affected by exchange rate fluctuations,
Gain on fair value
-1,192.58 391.95 -1,584.53 -404.27% the gain on the fair value of forward
changes
exchange contracts decreased.
The investment in bank wealth
management products and their
Investment gain 2,298.71 1,640.62 658.10 40.11%
earning rates both increased,
resulting in more gain.
Non-operating The loss on disposal of wasted fixed
140.86 325.44 -184.58 -56.72%
expense assets decreased.
The sales and the gross profit rate both
Total profit 21,929.55 14,165.12 7,764.43 54.81%
increased.
Income tax expenses 3,160.22 2,144.73 1,015.49 47.35% Total profit increased.
The sales and the gross profit rate both
Net profit 18,769.33 12,020.39 6,748.94 56.15%
increased.
Subsidiary Hefei Midea Washing
Minority interests 1,691.89 920.02 771.87 83.90%
Machine Co., Ltd. recorded increased net
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
profit.
Due to exchange rate fluctuations, the
Other
foreign-currency statement translation
comprehensive 23.83 -3.07 26.89 877.03%
difference of the Singapore subsidiary
incomes
changed.
II. Progress of significant events and analysis & explanations on their influence and solutions
Naught
III. Commitments made by the Company or any shareholder with a shareholding over 5% in
the reporting period or such commitments made in previous period and carried down into the
reporting period
Date of Term of
Commitmen Executio
Commitment Contents of commitment commitme commitme
t maker n
nt nt
Where the controlling shareholder Midea Group Co.,
Ltd. plans to sell the Company’s shares released from
trading moratorium held by it via the bid trading system In the
of the Shenzhen Stock Exchange, and Midea Group process
Commitment on share Controlling 28 Feb.
decreases over 5% shares within six months since the Long-term of
reform shareholder 2008
first reduction of holdings, Midea Group will disclose implemen
the suggestive announcement on share selling through tation
the Company two trading days before its first reduction
of holdings.
Commitment made in an
acquisition report or a
report on equity changes
1. As for the commitment of avoiding horizontal
competition made by Midea Group and the actual
controller, Midea Group and Mr. He Xiangjian (the
actual controller) has promised that, for the period after
Controlling the said transaction when the Company’s controlling In the
shareholder shareholder and actual controller remain unchanged, process
Commitment made in 1 Dec.
and actual Midea Group, Mr. He Xiangjian and other subsidiary Long-term of
asset reorganization 2010
controller companies under their control excluding the Company implemen
and the Company’s subordinate companies will not tation
increase business or establish new subsidiary
companies engaged in business which is the same with
or similar to the Company’s main business or forms
substantial horizontal competition with the Company. If
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
they act against the commitment above, profits thus
generated will be attributable to the Company.
2. As for the commitment made by Midea Group and
the actual controller concerning regulating related-party
transactions, Midea Group and Mr. He Xiangjian (the
actual controller) have promised that when there are
inevitable related-party transactions or such transaction
Controlling incurred with rational reasons after the completion of In the
shareholder the transaction, they will follow the fair, reasonable and process
1 Dec.
and actual market principles in formulating and signing relevant Long-term of
2010
controller agreements on such related-party transactions and implemen
ensure that no harm will be done to interests of the tation
Company and other shareholders. Where Midea Group
and Mr. He Xiangjian act against the promise above
and damage interests of the Company and other
shareholders, they will assume liabilities for
compensation according to relevant provisions.
In the
3. As for the commitment made by Midea Group on
process
Controlling ensuring independence, Midea Group has promised to 1 Dec.
Long-term of
shareholder protect Little Swan’s independence in terms of assets, 2010
implemen
staff, finance, organization and business.
tation
4. As for the commitment made by Midea Group on the
related-party deposits and borrowings with Hefei Midea
Washing Machine Co., Ltd. (formerly known as “Hefei
Royalstar Washing Equipment Manufacturing Co., In the
Ltd.”), up to 8 Apr. 2010, the Financial Settlement process
Controlling 1 Dec.
Center of Midea Group had settled all internal deposits Long-term of
shareholder 2010
and borrowings with Hefei Midea Washing Machine; implemen
and Midea Group has promised that there will be no tation
more deposits, borrowings or other funds flows
incurred between the Financial Settlement Center and
Hefei Midea Washing Machine.
5. The commitment made by Midea Group on housing
properties with no ownership certificates of the target
company for sale is detailed as follows: Two pieces of
the buildings of Hefei Midea Washing Machine In the
assessed and sold to the Company are of no ownership process
Controlling 1 Dec.
certificates—the warehouse for half-finished products Long-term of
shareholder 2010
(176 square meters) and the workshop for injection implemen
molding (834 square meters), both located in the old tation
factory of Hefei Midea Washing Machine, Hewa Road,
Hefei. Midea Group has promised that if loss occurs
due to the said two buildings without ownership
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
certificates in the asset disposal process in the future, it
will assume the loss thus caused and make
compensation to the Company.
6. The commitment made by Midea Group on
trademarks is detailed as follows: (1) Concerning the
“Midea” trademark: Upon approval and implementation
of the equity transfer transaction, Midea Group has
promised that it will make sure that Hefei Midea
Washing Machine uses the “Midea” trademark in a
proper manner. Hefei Midea Washing Machine will be
allowed to use the “Midea” trademark with a trademark
(2)
use fee not more than that paid by Midea Group and its
Concernin
subsidiaries, and upon negotiation and signing of the
g the
“Agreement for Trademark Use”. The related-party
“Royalstar
transactions incurred due to the said use of the “Midea”
”
trademark will be submitted to the decision-making
trademark
organ of the Company for approval according to the
was
stipulated procedure. As such, interests of the Company In the
expired on
and its minority shareholders will be safeguarded. (2) process
Controlling 1 Dec. 31 Mar.
Concerning the “Royalstar” trademark: Midea Group of
shareholder 2010 2013 and
has signed the “Contract for Trademark Use” with implemen
will not be
Royalstar Group and obtained the ordinary use rights of tation
renewed,
the “Royalstar” (and “荣事达”) trademark. As the
others are
transferor in the transfer transaction of equity interests
in the
of Royalstar Washing Equipment, Midea Group has
process of
promised that within the scope as agreed in the
long term
“Contract for Trademark Use”, if any dispute arises
implement
between Royalstar Washing Equipment and Royalstar
ation
Group over the former’s execution of the “Contract for
Trademark Use”, Little Swan will not be involved. If
Royalstar Washing Equipment and Little Swan have to
assume any responsibility or loss due to the aforesaid
dispute, Midea Group is willing to take on the
responsibility instead and make compensations to
Royalstar Washing Equipment and Little Swan at full
amount.
7. The commitment made by Midea Group on social
security payment and tax risks is detailed as follows:
In the
Midea Group has promised that upon the completion of
process
Controlling the said equity transfer deal, if Hefei Midea Washing 1 Dec.
Long-term of
shareholder Machine Co., Ltd. (formerly known as “Hefei Royalstar 2010
implemen
Washing Equipment Manufacturing Co., Ltd.”) is
tation
obliged to take on any responsibility or pay relevant
fares as required by relevant government authorities due
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
to its social security payment before the said deal,
Midea Group is willing to pay relevant fares for Hefei
Midea Washing Machine to relevant government
authorities in a timely manner and assume any other
liability. If any loss thus occurs to Hefei Midea Washing
Machine or Little Swan, Midea Group 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
Hefei Midea Washing Machine, Midea Group 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, Midea Group will assume the
corresponding responsibility for compensation.
Commitment made in IPO
or re-financing
Commitment made to
minority shareholders of
the Company
Executed in time or not Yes
Specific reason for failing
to fulfill the commitment
Inapplicable
and the plan for the next
step ( If any)
IV. Predict the operating results of Jan.-Jun. 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin
to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable √ Inapplicable
V. Securities investments
Sharehold Sharehold Gain/loss
Initial Number Number Closing
ing ing for
investmen of shares of shares book
Variety of Code of Name of percentag percentag reporting Accounti Source of
t cost held at held at value
securities securities securities e at e at period ng title securities
(RMB period-be period-en (RMB
period-be period-en (RMB
Yuan) gin d Yuan)
gin d Yuan)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Disclosure date of the board
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
announcement on securities
investment approval
Disclosure date of the general
meeting announcement on
securities investment approval
(if any)
Shareholdings in other listed companies
□ Applicable √ Inapplicable
VI. Investments in derivatives
Unit: RMB Ten thousand yuan
Proportio
n of the
closing
Type of Actual
Related-p Impairme investmen
derivativ Initial Opening Closing gain/loss
arty Beginnin Ending nt t amount
Operator Relation e investment investmen investmen in
transactio g date date provision in the
investme amount t amount t amount reporting
n or not (if any) Company
nt period
’s closing
net assets
(%)
Forward
exchang Jan. 1 Jan. 7
Bank No No 48,371.34 48,371.34 35,916.08 9.2% -898.06
e 2014 2015
contract
Total 48,371.34 -- -- 48,371.34 35,916.08 9.2% -898.06
Capital source for derivative investment All self-owned funds
Lawsuits ( if applicable ) Inapplicable
Disclosure date of the board
announcement approving the wealth
Mar. 7 2014
management entrustment (if any)
Disclosure date of the general meeting
announcement approving the wealth
Apr. 17 2014
management entrustment (if any)
Analysis on risks and control measures of The Company has formulated the Management Methods for Futures Hedging Business
derivative products held in the reporting and the Management Methods for Exchange Funds upon review to thoroughly assess
11
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
period (including but not limited to and control derivative investment risks, which are detailed as follows:
market risk, liquidity risk, credit risk, 1. Market risk
operation risk, law risk, etc.) The forward foreign exchange settlement business: the Company will according to the
cost of the product (constituent basic was RMB) and market risk to ensure whether sign
the forward foreign exchange settlement agreement or not, signing the contract was
equivalent to lock the exchanged costs and profits. through forward foreign exchange
settlement business will effectively resist market volatility risk and ensure reasonable
and stable level of profit of the Company.
2. Liquidity risk
This foreign exchange funds business was simple; transaction time limit was operated
according to the Company’s budget of future account payable and receivable and had no
impact on the Company's liquidity.
3. The performance risk
The corresponding relevant import and export business of the Company’s foreign
exchange funds business had no speculative operations, nor performance risk.
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
value of the derivatives should include the
exchange quotations declared by the People’s Bank of China in its analysis on fair
specific use methods and the relevant
values of derivative products.
assumptions and parameters.
Whether significant changes occurred to
the Company’s accounting policy and
specific accounting principles of
derivatives in the reporting period No significant changes.
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
Specific opinion from independent
relevant approval procedure before it conducted derivative investments in strict
directors on the Company’s derivatives
compliance with the lines and ways approved by the Shareholders’ General Meeting;
investment and risk control
And C. The Company’s 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.
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
VII. Researches, visits and interviews received in the reporting period
Main discussion and
Time of reception Place of reception Way of reception Visitor type Visitor materials provided by the
Company
Changjiang
Conference Room Securities, Overall operation of the
Jan. 14 2014 Field research Institution
of the Company Hongyuan Company
Securities
Baring Asset
Conference Room Overall operation of the
Jan. 15 2014 Field research Institution Management, First
of the Company Company
State Investments
Founder Securities,
Macro Vision
Investment,
Conference Room Overall operation of the
Jan. 16 2014 Field research Institution Matthews
of the Company Company
International
Capital
Management
Conference Room Industrial Overall operation of the
Mar. 12 2014 Field research Institution
of the Company Securities Company
Conference Room Overall operation of the
Mar. 26 2014 Field research Institution Cinda Securities
of the Company Company
13
Report for the First Quarter of 2014 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 1,668,174,675.28 1,617,373,088.50
Settlement reserves
Intra-group lendings
Transactional financial assets 3,090,940.00 15,016,740.00
Notes receivable 2,353,623,960.99 2,449,770,225.41
Accounts receivable 949,532,381.03 777,744,132.32
Accounts paid in advance 118,165,028.12 140,841,924.06
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable
Other accounts receivable 24,792,645.11 26,163,524.13
Financial assets purchased under
agreements to resell
Inventories 474,524,361.28 798,141,838.58
Non-current assets due within 1 year
Other current assets 1,982,328,232.56 1,791,288,539.62
Total current assets 7,574,232,224.37 7,616,340,012.62
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 270,480.00 312,816.00
Held-to-maturity investments
14
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Long-term accounts receivable
Long-term equity investment 4,560,311.21 4,579,148.88
Investing property 9,214,185.97 9,466,777.10
Fixed assets 1,165,403,863.86 1,194,244,286.86
Construction in progress 2,184,273.62
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 218,000,617.69 219,445,532.87
R&D expense
Goodwill
Long-term deferred expenses 5,185,794.33 7,147,835.74
Deferred income tax assets 206,720,120.59 170,990,970.67
Other non-current assets
Total of non-current assets 1,611,539,647.27 1,606,187,368.12
Total assets 9,185,771,871.64 9,222,527,380.74
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 581,426,083.92 385,673,110.34
Accounts payable 2,871,729,647.48 2,768,046,095.46
Accounts received in advance 469,488,073.63 1,057,952,597.52
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 151,074,583.82 207,323,619.92
Tax payable 317,463,648.66 199,203,856.56
Interest payable
Dividend payable 3,213,112.33 3,740,152.33
Other accounts payable 53,731,239.81 50,021,093.66
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Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
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 4,448,126,389.65 4,671,960,525.79
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables 2,073,957.30 2,073,957.30
Estimated liabilities 11,119,498.30 11,310,523.59
Deferred income tax liabilities 1,648,222.52 2,284,388.40
Other non-current liabilities 542,800.00 568,600.00
Total non-current liabilities 15,384,478.12 16,237,469.29
Total liabilities 4,463,510,867.77 4,688,197,995.08
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,129,395,319.31 1,129,431,304.91
Less: Treasury stock
Specific reserves
Surplus reserves 290,958,368.49 290,958,368.49
Provisions for general risks
Retained profits 2,030,354,388.97 1,859,579,931.10
Foreign exchange difference -3,285,449.68 -3,559,713.76
Total equity attributable to owners of
4,079,910,391.09 3,908,897,654.74
the Company
Minority interests 642,350,612.78 625,431,730.92
Total owners’ (or shareholders’) equity 4,722,261,003.87 4,534,329,385.66
Total liabilities and owners’ (or
9,185,771,871.64 9,222,527,380.74
shareholders’) equity
16
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Chief of the accounting organ: 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 760,225,483.95 910,325,739.17
Transactional financial assets 1,879,130.00 8,727,740.00
Notes receivable 1,724,744,735.04 1,541,082,811.22
Accounts receivable 508,299,591.70 731,446,199.69
Accounts paid in advance 68,676,012.45 56,620,106.39
Interest receivable
Dividend receivable
Other accounts receivable 18,004,029.46 18,752,200.83
Inventories 309,765,239.74 543,401,541.27
Non-current assets due within 1 year
Other current assets 1,369,104,473.90 939,664,538.10
Total current assets 4,760,698,696.24 4,750,020,876.67
Non-current assets:
Available-for-sale financial assets 270,480.00 312,816.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,401,704,802.78 1,601,723,640.45
Investing property 9,214,185.97 9,466,777.10
Fixed assets 551,784,216.23 568,924,123.24
Construction in progress 2,184,273.62
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 100,367,182.92 101,069,007.28
R&D expense
17
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Goodwill
Long-term deferred expenses 4,408,893.48 6,781,326.79
Deferred income tax assets 145,386,058.84 119,667,809.75
Other non-current assets
Total of non-current assets 2,215,320,093.84 2,407,945,500.61
Total assets 6,976,018,790.08 7,157,966,377.28
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 345,881,550.92 273,399,760.34
Accounts payable 2,000,138,881.86 1,766,585,288.21
Accounts received in advance 290,231,147.34 724,228,146.67
Employee’s compensation payable 81,651,511.46 118,237,120.06
Tax payable 240,877,542.25 156,722,107.53
Interest payable
Dividend payable 3,213,112.33 3,740,152.33
Other accounts payable 14,562,986.46 208,682,591.14
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 2,976,556,732.62 3,251,595,166.28
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 1,465,977.00 1,341,038.40
Other non-current liabilities
Total non-current liabilities 1,465,977.00 1,341,038.40
Total liabilities 2,978,022,709.62 3,252,936,204.68
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
Capital reserves 1,291,447,374.54 1,291,483,360.14
18
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Less: Treasury stock
Specific reserves
Surplus reserves 278,308,224.59 278,308,224.59
Provisions for general risks
Retained profits 1,795,752,717.33 1,702,750,823.87
Foreign exchange difference
Total owners’ (or shareholders’) equity 3,997,996,080.46 3,905,030,172.60
Total liabilities and owners’ (or
6,976,018,790.08 7,157,966,377.28
shareholders’) equity
Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Chief of the accounting organ: Zhong Fangliu
3. Consolidated income statement
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Operating revenues 2,576,160,088.43 2,359,241,990.64
Including: Sales income 2,576,160,088.43 2,359,241,990.64
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 2,373,449,895.21 2,240,011,104.63
Including: Cost of sales 1,863,580,470.12 1,782,597,479.96
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 18,158,736.21 17,327,435.34
19
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Selling and distribution expenses 384,822,055.79 328,751,508.21
Administrative expenses 99,867,200.75 94,490,588.19
Financial expenses -2,706,279.81 8,861,929.20
Asset impairment loss 9,727,712.15 7,982,163.73
Add: Gain/(loss) from change in fair
-11,925,800.00 3,919,510.00
value (“-” means loss)
Gain/(loss) from investment (“-”
22,987,140.99 16,406,187.35
means loss)
Including: share of profits in associates
and joint ventures
Foreign exchange gains (“-” means
loss)
III. Business profit (“-” means loss) 213,771,534.21 139,556,583.36
Add: non-operating income 6,932,588.41 5,349,057.97
Less: non-operating expense 1,408,605.94 3,254,442.84
Including: loss from
non-current asset disposal
IV. Total profit (“-” means loss) 219,295,516.68 141,651,198.49
Less: Income tax expense 31,602,176.95 21,447,270.34
V. Net profit (“-” means loss) 187,693,339.73 120,203,928.15
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
170,774,457.85 111,003,706.39
Company
Minority shareholders’ income 16,918,881.88 9,200,221.76
VI. Earnings per share -- --
(I) Basic earnings per share 0.27 0.18
(II) Diluted earnings per share 0.27 0.18
Ⅶ. Other comprehensive incomes 238,278.48 -30,665.17
Ⅷ. Total comprehensive incomes 187,931,618.21 120,173,262.98
Attributable to owners of the
171,012,736.33 110,973,041.22
Company
Attributable to minority
16,918,881.88 9,200,221.76
shareholders
Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
20
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Chief of the accounting organ: Zhong Fangliu
4. Income statement of the Company
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Operating revenues 1,894,175,621.32 1,730,234,964.83
Less: operating costs 1,390,057,329.94 1,315,047,547.80
Business taxes and surcharges 13,547,483.63 12,169,504.53
Distribution expenses 292,227,018.27 255,824,327.32
Administrative expenses 77,795,813.89 61,089,128.95
Financial costs 808,182.35 6,476,360.62
Impairment loss 6,171,520.43 7,620,160.27
Add: gain/(loss) from change in fair
-6,848,610.00 2,241,900.00
value (“-” means loss)
Gain/(loss) from investment (“-”
1,511,386.24 8,527,122.76
means loss)
Including: income form investment
on associates and joint ventures
II. Business profit (“-” means loss) 108,231,049.06 82,776,958.10
Add: non-business income 3,999,006.92 2,502,917.60
Less: non-business expense 2,816,063.68 2,821,645.74
Including: loss from non-current
asset disposal
III. Total profit (“-” means loss) 109,413,992.30 82,458,229.96
Less: income tax expense 16,412,098.85 12,359,561.70
IV. Net profit (“-” means loss) 93,001,893.45 70,098,668.26
V. Earnings per share -- --
(I) Basic earnings per share 0.15 0.11
(II) Diluted earnings per share 0.15 0.11
VI. Other comprehensive income -35,985.60 51,979.20
VII. Total comprehensive income 92,965,907.85 70,150,647.46
Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Chief of the accounting organ: Zhong Fangliu
21
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
5. Consolidated cash flow statement
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of
1,646,521,888.52 1,900,494,571.74
commodities and rendering 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 1,379,269.70 8,641,019.92
Other cash received relating to
8,523,758.56 8,476,911.76
operating activities
Subtotal of cash inflows from operating
1,656,424,916.78 1,917,612,503.42
activities
Cash paid for goods and services 723,257,042.69 1,112,603,553.86
Net increase of customer lendings
and advances
Net increase of funds deposited in the
central bank and amount due from
banks
22
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
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 211,254,229.32 145,551,958.80
Various taxes paid 148,479,258.31 62,526,204.16
Other cash payment relating to
301,470,073.93 319,104,747.12
operating activities
Subtotal of cash outflows from
1,384,460,604.25 1,639,786,463.94
operating activities
Net cash flows from operating activities 271,964,312.53 277,826,039.48
II. Cash flows from investing activities:
Cash received from withdrawal of
2,298,000,000.00 2,420,499,865.02
investments
Cash received from return on
23,005,978.66 415,750.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 72,000.00 4,750,805.93
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
2,321,077,978.66 2,425,666,420.95
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 22,942,809.96 17,033,366.40
assets
Cash paid for investment 2,489,370,000.00 2,661,080,000.00
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
2,512,312,809.96 2,678,113,366.40
investing activities
Net cash flows from investing activities -191,234,831.30 -252,446,945.45
23
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
III. Cash flows from financing
Activities:
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
Cash paid for interest expenses and
distribution of 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
Net cash flows from financing activities
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
80,729,481.23 25,379,094.03
equivalents
Add: Opening balance of cash and
1,543,513,880.63 1,293,126,217.00
cash equivalents
VI. Closing balance of cash and cash
1,624,243,361.86 1,318,505,311.03
equivalents
Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Chief of the accounting organ: Zhong Fangliu
6. Cash flow statement of the Company
Prepared by Wuxi Little Swan Company Limited
24
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of
1,387,187,542.05 1,147,973,657.85
commodities and rendering of service
Tax refunds received 4,250,944.97
Other cash received relating to
6,135,064.74 5,578,616.43
operating activities
Subtotal of cash inflows from operating
1,393,322,606.79 1,157,803,219.25
activities
Cash paid for goods and services 613,008,773.48 701,454,690.27
Cash paid to and for employees 139,756,464.02 99,816,582.05
Various taxes paid 113,320,106.80 43,800,824.48
Other cash payment relating to
229,543,047.77 154,932,694.85
operating activities
Subtotal of cash outflows from
1,095,628,392.07 1,000,004,791.65
operating activities
Net cash flows from operating activities 297,694,214.72 157,798,427.60
II. Cash flows from investing activities:
Cash received from retraction of
1,000,000,000.00 877,248,800.44
investments
Cash received from return on
10,043,278.39 247,750.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 4,747,079.00
long-term assets
Net cash received from disposal of
38,977.14
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
1,010,082,255.53 882,243,629.44
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 15,764,370.14 13,390,812.17
assets
Cash paid for investment 1,430,000,000.00 1,297,000,000.00
Net cash paid to acquire subsidiaries
and other business units
25
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
Other cash payments relating to
investing activities
Subtotal of cash outflows from
1,445,764,370.14 1,310,390,812.17
investing activities
Net cash flows from investing activities -435,682,114.61 -428,147,182.73
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 dividends or profit
Other cash payments relating to
financing activities
Sub-total of cash outflows from
financing activities
Net cash flows from financing activities
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-137,987,899.89 -270,348,755.13
equivalents
Add: Opening balance of cash and
882,413,120.18 848,257,647.96
cash equivalents
VI. Closing balance of cash and cash
744,425,220.29 577,908,892.83
equivalents
Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Chief of the accounting organ: Zhong Fangliu
II. Audit report
Is this report audited?
26
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
□ Yes √ No
This report is not audited.
Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo
22 April 2014
27