Wuxi Little Swan Company Limited
2014 Semi-annual Report
August 2014
Section I. Important Reminders, Contents & Explanation
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.
The Company plans not to distribute cash dividends or bonus shares or turn
capital reserve into share capital.
Mr. Fang Hongbo, chairman of the Board of Directors, Mr. Zhang Zhaofeng,
CFO, 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.
This report involves futures plans and some other forward-looking statements,
which shall not be considered as virtual promises to investors. Investors are
kindly reminded to pay attention to possible risks.
This report is prepared in both Chinese and English. Should there be any
discrepancy between the two versions, the Chinese version shall prevail.
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Contents
Section I. Important Reminders, Contents & Explanation............................................................ 1
Section II. Company Profile .............................................................................................................. 4
Section III. Highlights of Accounting Data & Financial Indicators .............................................. 6
Section IV. Report of the Board of Directors ................................................................................... 8
Section V. Significant Events ........................................................................................................... 19
Section VI. Change in Shares & Shareholders .............................................................................. 33
Section VII. Preferred Shares ......................................................................................................... 38
Section VIII. Directors, Supervisors & Senior Management Staff .............................................. 39
Section IX. Financial Report ........................................................................................................... 40
Section X. Documents Available for Reference ........................................................................... 140
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Explanation
Term Refers to Contents
Company, the Company or Little Swan Refers to Wuxi Little Swan Company Limited
Midea Group Refers to Midea Group Co., Ltd.
TITONI Refers to TITONI INVESTMENTS DEVELOPMENT LTD.
Midea Holding Refers to GD Midea Holding Co., Ltd.
Reporting period Refers to 1 Jan. 2014-30 Jun. 2014
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Section II. Company Profile
I. Basic information of the Company
Stock abbreviation XTEA, XTEB Stock code 000418, 200418
Stock exchange listed with Shenzhen Stock Exchange
Chinese name of the Company 无锡小天鹅股份有限公司
Abbr. of the Chinese name of the
小天鹅
Company (if any)
English name of the Company (if any) Wuxi Little Swan Company Limited
Legal representative of the Company Mr. Fang Hongbo
II. For Contact
Company Secretary Securities Affairs Representative
Name Ms. Zhou Sixiu Mr. Zhao Yulin
No. 18, Changjiang Road S., National Hi-tech No. 18, Changjiang Road S., National
Contact address
Development Zone, Wuxi Hi-tech Development Zone, Wuxi
Tel. 0510-81082320 0510-81082377
Fax 0510-83720879 0510-83720879
E-mail IR_littleswan@littleswan.com.cn zhaoyl@littleswan.com.cn
III. Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email address of the
Company during the reporting period?
□ Applicable √ Inapplicable
The registered address, office address and their postal codes, website address and email address of the Company did not change
during the reporting period. The said information can be found in the 2013 Annual Report.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report
and the location where this report is placed did not change during the reporting period. The said information can be found in the 2013
Annual Report.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
3. Change of the registered information
Did any change occur to the registered information during the reporting period?
□ Applicable √ Inapplicable
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not
change during the reporting period. The said information can be found in the 2013 Annual Report.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Section III. Highlights of Accounting Data & Financial Indicators
I. Major 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
Reporting period Same period of last year YoY +/- (%)
Operating revenues (RMB Yuan) 4,974,057,020.56 3,998,224,336.31 24.41%
Net profit attributable to shareholders of
316,358,532.13 220,961,466.94 43.17%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains and 272,497,997.10 186,709,366.62 45.95%
losses (RMB Yuan)
Net cash flows from operating activities
825,104,435.83 931,122,295.82 -11.39%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.50 0.35 42.86%
Diluted EPS (RMB Yuan/share) 0.50 0.35 42.86%
Weighted average ROE (%) 7.78% 5.82% 1.96%
As at the end of the
As at the end of last year +/- (%)
reporting period
Total assets (RMB Yuan) 9,686,393,875.10 9,222,527,380.74 5.03%
Net assets attributable to shareholders of
4,041,109,118.33 3,908,897,654.74 3.38%
the Company (RMB Yuan)
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √ Inapplicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Inapplicable
No difference.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
III. Items and amounts of extraordinary gains and losses
√Applicable □ Inapplicable
Unit: RMB Yuan
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the
-1,184,389.51
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
6,454,141.22
certain quotas or amounts according to the country’s unified
standards
Gain/loss on entrusting others with investments or asset
52,412,042.89
management
Gain/loss on debt restructuring 1,688,200.34
Reversal of impairment provisions for the accounts receivable on
5,548,244.81
which impairment tests were carried out separately
Other non-operating income and expenses other than the above 1,652,425.93
Other gain/loss items that meet the definition of an extraordinary
-5,809,948.33
gain/loss
Less: Income tax effects 9,985,599.85
Minority interests effects (after tax) 6,914,582.47
Total 43,860,535.03 --
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
No such cases.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Section IV. Report of the Board of Directors
I. Overview
In the first half of 2014, affected by the downward macro-economy, the withdrawal of the consumption stimulus package and the real
estate policies, the washing machine industry as a whole slowed down in growth, with the market being stable. Consumption was
upgrading in an obvious manner and the business restructuring accelerated, with an increased weight of middle and high-end
products, as well as roller washing machines. There was a significant growth in the sale of high-capacity, inverter and intelligent
washing machines. The industry became more centralized.
During the reporting period, closely adhering to the strategic axis of “leading products, efficiency-driven and global operation”, we
continued to focus on changes in the industry, improved products and kept pushing forward and deepening operation transformation.
As a result, great progress was achieved in almost all kinds of work. For the reporting period, the Company achieved operating
revenues of RMB 4.97 billion, up 24.4% year on year, and a net profit attributable to the shareholders of the Company of RMB 320
million, up 43.2% from a year earlier.
During the reporting period, we mainly carried out the following work:
In terms of domestic sale, we implemented the “Spring Ploughing Plan” to speed up expansion of the distribution network, which
increased the network coverage and effectiveness; vigorously expanded the e-commerce channel and pushed forward the online and
off-line channel layout, which enlarged the market share of our retail; and promoted terminal standardization and improved user
experience. In the reporting period, domestic sale grew steadily, with an obvious increase in profitability. And the e-business was in
fast development. For the domestic sale in the reporting period, the income stood at RMB 3.57 billion, up 24.2% year on year, and
the gross profit rate at 33.2%, up by 2.3 percentage points from a year earlier.
In terms of export, we continued to optimize the product and customer structures, enhanced our efforts in strategy and market access,
and withdrew some overseas operations with no market. We allowed branches in some regions to launch their own brands to increase
business incomes and profits. The reporting period saw a strong growth in Europe, the largest market share in Latin America as
before and a major breakthrough in the drying machine business. For the reporting period, the export generated an income of RMB
990 million, up 21.3% when compared with the same period of last year; and the gross profit rate of export stood at 9.2%, up 0.3%
year on year.
In regard to product strength, we developed over 200 new products, launching the third generation automatic throw-in washing
machines—the I-intelligent product series. And we continued to improve our strength in R&D and innovation, especially that of
intelligent and networked products. During the reporting period, the Company was awarded the “Appliance” Low-carbon
Environmental Protection Award by China Household Electrical Appliances Association, and Little Swan Beverly Roller Washing
Machine won the Germany IF Product Design Award, and so on.
Concerning quality improvement, with “Prevent Massive Quality Problems and Reduce Repair Needs” as the main line and “Focus
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
on the Beginning of the Production Process and Control the Process” as the means, we focused on massive quality problem
prevention, solidified what was fundamental and became more systematic in quality management. With market as the guidance and
products as the core, we particularly improved the key indicators about products that decided customers’ satisfaction and our market
reputation, enhancing management of “two sources and one process”. As a result, our product quality improved significantly, along
with our reputation on the market.
As for operating efficiency, we further regulated and optimized our authorization mechanism, decision-making procedure and
management mechanism. Meanwhile, we continued to push forward the project of “produce according to sale”, organized lean
logistics improvement projects, and input more resources in replacing workers with machines, so as to increase our overall operating
efficiency.
In the coming six months, we will continue to push forward all the work and deepen operation transformation; continue to explore
traditional channels and vigorously expand online channels; promote delicacy channel management, continuously optimize the
product sale structure and increase the weight of middle and high-end products; deepen the strategic cooperation with overseas
customers, solidify competitive areas, explore new markets, update business modes and move manufacture overseas; continue to
focus on products, enhance research in consumer demand, promote planning management and standardization, and build an efficient
R&D supporting system; firmly stick to the quality principle and improve the quality of new products and suppliers; carry out quality
engineering, particularly improve reliability and realize the transition from “qualified and satisfactory quality” to “charming and
habit-forming quality”; and continue to optimize the organization flow and managerial mechanism, implement the order commitment
mechanism, constantly optimize the logistics layout, increase the operating and turnover efficiency, accelerate the automation
strategy and build a lean manufacture system characteristic of stability, automation and flexibility.
II. Main business analysis
YoY change of major financial data:
Unit: RMB Yuan
Reporting period Same period of last year YoY +/-% Main reasons for change
Operating revenues 4,974,057,020.56 3,998,224,336.31 24.41%
Operating costs 3,655,315,076.59 3,005,810,911.14 21.61%
Increased along with the sales
Selling expenses 708,872,153.90 539,966,097.76 31.28%
income
Administrative expenses 210,082,884.69 173,092,190.68 21.37% Increase in the R&D input
Exchange loss decreased on
Financial expenses -9,899,828.86 20,143,097.74 -149.15%
exchange rate fluctuations.
Increased along with total
Income tax expenses 66,436,602.59 42,992,351.93 54.53%
profits
R&D input 188,396,276.35 149,156,933.04 26.31%
Net cash flows from operating
825,104,435.83 931,122,295.82 -11.39%
activities
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
The cash paid to acquire
Net cash flows from investing financing products and the
-134,495,207.51 -600,144,036.70 77.59%
activities cash returns on maturity were
almost even.
Net cash flows from financing
-134,190,940.03 -182,583,655.47 26.50%
activities
Net increase in cash and cash
556,418,288.29 148,394,603.65 274.96%
equivalents
Major changes to the profit structure or sources of the Company during the reporting period:
□ Applicable √ Inapplicable
No major changes occurred to the profit structure or sources of the Company during the reporting period.
Reporting period progress of the future development planning in the disclosed documents of the Company such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Inapplicable
The Company did not mention any future planning for the reporting period in its disclosed documents such as share-soliciting
prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of the previously disclosed business plan in the reporting period:
In the reporting period, according to the plan set at the beginning of the year, the Company proactively pushed forward all kinds of
work and achieved some phasic progress. For details, see “I. Overview” in this section.
III. Breakdown of main business
Unit: RMB Yuan
Increase/decreas Increase/decreas
Increase/decrease of
e of operating e of operating
Operating Gross profit gross profit rate over
Operating costs revenues over costs over the
revenues rate (%) the same period of last
the same period same period of
year (%)
of last year (%) last year (%)
Classified by industry:
Household
4,557,126,125.99 3,280,741,426.30 28.01% 23.58% 20.32% 1.95%
appliances
Classified by product:
Washing
4,557,126,125.99 3,280,741,426.30 28.01% 23.58% 20.32% 1.95%
machines
Classified by region:
China 3,568,465,105.73 2,382,803,528.64 33.23% 24.24% 20.11% 2.30%
Other countries 988,661,020.26 897,937,897.66 9.18% 21.29% 20.89% 0.30%
IV. Core competitiveness analysis
The Company is one of the biggest washing machine manufacturers in China, with its main competitiveness as follows:
1. Technology-related competitiveness: The Company has been concentrating on its washing machine business all the time. Through
constant input of R&D resources over the years, the Company has owned leading technological competitiveness in the industry. The
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Company has a sound technological R&D system, including one state-level technological center and two state-recognized labs. Little
Swan Lab is the first washing machine lab in China to pass the UL North American safety verification and the German VDE
verification. Little Swan holds on to independent innovation and has the internationally advanced frequency-changing, intelligent
control, structure design, industrial design and other core washing technologies.
2. Brand-related competitiveness: The Company adopts a two-brand strategy (“Little Swan” and “Midea”). As a washer brand with a
history over 30 years, Little Swan is considered a very reliable brand among consumers, with the slogan of “Whole-hearted Little
Swan” being well-known among them. In 2013, according to the evaluation of R&F Global Ranking Information Group Ltd., the
brand of Little Swan was worth 19.308 billion, keeping its place in the “Most Valuable Brands in China”. As for Midea, it is a
well-known home appliance brand, which is also of a high reputation as a washer brand, and its market share keeps rising.
3. Scale-related competitiveness: The Company is one of the first washer manufacturers in China and it has established the lean
manufacturing culture. It now has domestically and internationally first-class manufacturing equipments and an experienced
manufacturing team. The Company’s two production bases—Wuxi and Hefei—have a combined production capacity over 16 million
units. Its wide product range covers tumbling-box, wave-wheel full-automatic, double-cylinder and agitator washing machines,
clothes dryers, etc., creating incomparable scale competitiveness among washer manufacturers.
4. Channel-related competitiveness: Through reform and adjustment in the recent years, the Company has formed its channel
competitiveness. In the domestic first and secondary markets, the Company mainly works with Suning, Gome and some other big
regional customers. In the tertiary and fourth markets, the Company combines traditional channels and franchised stores to distribute
its products to households. In e-commerce, we proactively make plans about online channels by working with JD, TMALL and some
other major online channels, as well as making use of the online shopping mall—I. Midea—built by Midea Group.
In the overseas markets, the Company keeps deepening its cooperation with customers and the overseas markets keep expanding.
With a good and long-term cooperation with all major customers, the Company enjoys good brand loyalty.
No significant change occurred to the core competitiveness of the Company in the reporting period.
V. Investment analysis
1. Investments in equities of external parties
(1) Foreign investment
□ Applicable √ Inapplicable
There was no foreign investment of the Company in the reporting period.
(2) Equity-holdings in financial enterprises
√Applicable □ Inapplicable
Gain/loss
Initial Opening Closing Closing in the
Enterpr Opening Closing
Enterprise investment equity-hol equity-hol book value reporting Accountin Equity
ise equity-hol equity-hol
name cost (RMB dings dings (RMB period g title source
variety ding ratio ding ratio
Yuan) (share) (share) Yuan) (RMB
Yuan)
Bank of Comm Long-term
Private
Jiangsu Co., ercial 1,100,000 2,202,564 0.00% 2,202,564 0.00% 1,210,000 0.00 equity
offering
Ltd. bank investment
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Total 1,100,000 2,202,564 -- 2,202,564 -- 1,210,000 0.00 -- --
(3) Investment in securities
□ Applicable √ Inapplicable
The Company did not invest in any securities in the reporting period.
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
√Applicable □Inapplicable
Unit: RMB Ten thousand
Actual
Related- Impairme
Principal gain/loss
Name of party Product Amount Beginning Ending Payment nt Predicted
Relation actually in
trustee transacti variety entrusted date date determination provision gain
recovered reporting
on or not (if any)
period
Floating
interest rate,
Floating 3 Jan. 22 May contractual
Bank No No 416,337 400,100 5,241.2 5,241.2
gains 2014 2015 highest
annualized
income rate
Total 416,337 -- -- -- 400,100 5,241.2 5,241.2
All is from the self-owned funds of the Company. The entrusted funds are cumulative. The
Source of the entrusted funds line for wealth management entrustment is RMB 2 billion and repeated use is allowed
within the said line.
Cumulative overdue principals and
0
gains
Disclosure date of the board
announcement approving the wealth 7 Mar. 2014
management entrustment (if any)
(2) Derivative investment
√ Applicable □ Inapplicable
Unit: RMB Ten thousand
Proportion
Actual
Related- Opening Closing of the
Type of Initial Impairmen gain/loss
party Beginning Ending investm investm closing
Operator Relation derivative investment t provision in
transacti date date ent ent investment
investment amount (if any) reporting
on or not amount amount amount in
period
the
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Company’s
closing net
assets (%)
Forward
16 May
Bank No No exchange 48,371 7 Jan. 2015 48,371 18,773 3.99% -958.36
2013
contract
Total 48,371 -- -- 48,371 18,773 3.99% -958.36
Capital source for derivative investment All self-owned funds
Disclosure date of the board
announcement approving the wealth 7 Mar. 2014
management entrustment (if any)
Disclosure date of the general meeting
announcement approving the wealth 16 Apr. 2014
management entrustment (if any)
The Company has formulated the Management Methods for Futures Hedging Business
and the Management Methods for Exchange Funds upon review to thoroughly assess and
control derivative investment risks, which are detailed as follows:
1. Market risk
Price movements of bulk raw materials and fluctuations of exchange rates may incur a
great market risk in the futures business and the 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 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
Analysis on risks and control measures
volume should be determined and futures trading applications should be filed in strict
of derivative products held in the
accordance with production and operation needs. In principle, the hedging volume shall
reporting period (including but not
not exceed one third of the planned volume for the year. And a stop-loss mechanism is
limited to market risk, liquidity risk,
adopted. Guarantee deposits are paid as required and increased according to production
credit risk, operation risk, law risk, etc.)
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
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
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
The Company adopts public quotations in the futures market or forward foreign exchange
derivatives. And the analysis on the fair
quotations declared by the People’s Bank of China in its analysis on fair values of
value of the derivatives should include
derivative products.
the specific use methods and the
relevant assumptions and parameters.
Whether significant changes occurred to
the Company’s accounting policy and
specific accounting principles of
No significant changes.
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 investments in strict compliance with
Specific opinion from independent
the lines and ways approved by the Shareholders’ General Meeting; And C. The
directors on the Company’s derivatives
Company’s derivative investments in the reporting period mainly targeted its exports. It
investment and risk control
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.
(3) Entrustment loans
□ Applicable √ Inapplicable
There was no entrustment loan of the Company in the reporting period.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
3. Use of raised funds
(1) Overview of the use of raised funds
□ Applicable √ Inapplicable
(2) Projects invested with raised funds as promised
□ Applicable √ Inapplicable
(3) Change of raised-funds-invested projects
□ Applicable √ Inapplicable
No change of raised-funds-invested projects during the reporting period.
4. Analysis to main subsidiaries and stock-participating companies
√ Applicable □ Inapplicable
Main subsidiaries and stock-participating companies:
Unit: RMB Ten thousand
Company Main Registered Operating Operating
Company name Industry Total assets Net assets Net profit
variety products/services capital revenues profit
Hefei Midea
Washing Manufac washing machine 13,552
Subsidiary 362,850.19 173,137.07 221,274.50 8,212.11 6,917.58
Machine Co., ture manufacture (USD)
Ltd.
Wuxi Little
Swan General
Manufac Washer-dryer
Electrical Subsidiary 2,800 26,340.56 163,843.52 12,630.57 1,176.17 999.74
ture manufacture
Appliances Co.,
Ltd
Development and
Wuxi FILIN
Manufac manufacture of 362.4564
Electronics Co., Subsidiary 42,234.33 31,613.65 17,499.02 3,847.17 3,645.59
ture new electronic (USD)
Ltd
components
5. Significant projects invested with non-raised funds
□ Applicable √ Inapplicable
No significant projects of investments with non-raised funds during the reporting period.
VI. Predict the operating results of Jan.-Sept. 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable √ Inapplicable
VII. Explanation by the Board of Directors and the Supervisory Committee about the
“non-standard audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
VIII. Explanation by the Board of Directors about the “non-standard audit report” for last
year
□ Applicable √ Inapplicable
IX. Implementation of profit allocation during the reporting period
Profit allocation plan implemented during the reporting period, especially execution and adjustment of the cash dividend plan and the
plan for turning capital reserve into share capital:
√ Applicable □ Inapplicable
As the profit allocation plan for 2013, the Company, based on the total 632,487,764 shares as at the end of 2013, distributed a cash
dividend of RMB 3 for every 10 shares held by its shareholders. And the Company did not turn capital reserve into share capital for
2013. The plan was reviewed and approved at the 8th Session of the 7th Board of Directors on 5 Mar. 2014 and then the 2013 Annual
Shareholders’ General Meeting on 16 Apr. 2014. The was
published on 6 Jun. 2014. Implementation of the profit allocation plan was completed in the reporting period.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and the resolution of the general meeting Yes
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors fulfilled their responsibilities and played their due role. Yes
Minority shareholders have the chance to fully express their opinion and desire and their legal rights and
Yes
interests were fully protected.
In adjustment or alteration of the cash dividend policy, the conditions and procedure were in compliance with
Inapplicable
regulations and transparent.
X. Preplan for profit distribution and turning capital reserve into share capital for the
reporting period
□ Applicable √ Inapplicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital for the reporting
period.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
XI. Researches, visits and interviews received in the reporting period
√ Applicable □ Inapplicable
Way of Main discussion and materials
Time Place Visitor type Visitor
reception provided by the Company
Conference Room of the Changjiang Securities,
14 Jan. 2014 Field research Institution Overall operation of the Company
Company Hongyuan Securities
Baring Asset
Conference Room of the
15 Jan. 2014 Field research Institution Management, First Overall operation of the Company
Company
State Investments
Founder Securities,
Macro Vision
Conference Room of the
16 Jan. 2014 Field research Institution Investment, Matthews Overall operation of the Company
Company
International Capital
Management
Conference Room of the
12 Mar. 2014 Field research Institution Industrial Securities Overall operation of the Company
Company
Conference Room of the
26 Mar. 2014 Field research Institution Cinda Securities Overall operation of the Company
Company
Conference Room of the
27 Mar. 2014 Field research Institution Mirae Asset Overall operation of the Company
Company
Conference Room of the
28 May 2014 Field research Institution Industrial Securities Overall operation of the Company
Company
Conference Room of the Tianhong Asset
6 Jun. 2014 Field research Institution Overall operation of the Company
Company Management
Conference Room of the China Galaxy
17 Jun. 2014 Field research Institution Overall operation of the Company
Company Securities
Conference Room of the
27 Jun. 2014 Field research Institution GM Investment Overall operation of the Company
Company
17
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Section V. Significant Events
I. Corporate governance
The Company continuously perfected its corporate governance, set up modern enterprise system and standardized its operation
strictly in accordance with the requirements of relevant laws and rules such as Company Law, Securities Law and Administrative
Rule for Listed Companies issued by CSRC. Company governance practice has no difference with requirements of relevant law and
rules of Company Law and CSRC.
II. Significant litigations and arbitrations
□Applicable √Inapplicable
The Company was not involved in any significant lawsuit or arbitration during the reporting period.
III. Media’s questions
□Applicable √Inapplicable
The Company was not involved in any media’s questions during the reporting period.
IV. Related Events of bankruptcy reorganization
□Applicable √Inapplicable
The Company was not involved in any related events of bankruptcy reorganization.
V. Assets transaction events
1. Purchase of assets
□Applicable √Inapplicable
The Company was not involved in any purchase of assets.
2. Sales of assets
√Applicable □Inapplicable
Net profit Ratio of Relation Whether Whether
contribute the net ship or not or not
Impac Related-
d to the profit between the the
Transact Transact t to Pricing party Disclos
Assets Disposa Company contribu the ownersh creditor’ Disclos
ion ion the principl transacti ure
sold l date from the ted by transacti ip of the s right ure date
party price comp e on or index
period-beg the asset on party asset and
any not
in to the to the and the involve liabilitie
disposal Compan Compan d has s
18
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
date(RMB y to the y been involve
Ten total (applica fully d have
thousand) profit ble for transferr been
related- ed fully
party transferr
transacti ed
ons)
Confirm Compan
Equities
ed y
of the
Midea accordin controll
Jiangsu
Group g to the ed by Inapplic
Comme 23 Dec. 881.03 0 N/A 0.00% Yes No
Finance market Yes the able
rcial 2013
Co., price of controlli
Bank
Ltd. similar ng
Co.,
assets sharehol
Ltd.
der
The above transfer of property right had completed on 9 Jul. 2014.
3. Combination of enterprises
□Applicable √Inapplicable
The Company was not involved in any combination of enterprises.
VI. Implementation of equity incentive and its influence
□Applicable √Inapplicable
The Company was not involved in any implementation of equity incentive and its execution.
VII. Significant related-party transactions
1. Related-party transaction relevant to routine operation
√Applicable □Inapplicable
Pricing
Type of Content Proporti
principle
the of the Transaction on in Settlement
of the Transa
related- related-p amount same method of the Market Disclos Disclosure
Related party Relationship related-p ction
party arty (RMB Ten kind of related-party price ure date index
arty price
transacti transacti thousand) transacti transaction
transacti
on on ons (%)
on
Subsidiary Revenu Logistic Cash or 7 Mar. On 7 Mar.
Ningbo Annto Market
controlled e from s, 3,715.26 1.15% acceptance 2014 2014 and 22
Logistics Co., Ltd. price
by controller service storage due 3-6 and 22 Apr. 2014,
19
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
service months Apr. the company
2014 published on
Purchase Cash or
Hubei Midea Subsidiary the
Purchas of Market acceptance
Refrigerator Co., controlled 77.01 0.02% information
e material price due 3-6
Ltd. by controller network's
s months
announceme
Huaian Weiling Purchase Cash or
Subsidiary nt:
Motor Purchas of Market acceptance
controlled 19,182.71 5.95% (Announcem
Manufacturing e material price due 3-6
by controller ent No.:
Co., Ltd. s months
2014-05 and
Purchase Cash or 2014-17)
Hefei Midea Subsidiary
Purchas of Market acceptance
Materials Supply controlled 7,903.86 2.45%
e material price due 3-6
Co., Ltd. by controller
s months
Purchase Cash or
Ningbo Midea Subsidiary
Purchas of Market acceptance
Joint Supplies Co., controlled 11,439.34 3.55%
e material price due 3-6
Ltd. by controller
s months
Hefei Hualing Purchase Cash or
Subsidiary
Electric Purchas of Market acceptance
controlled 4.03 0.00%
Appliances Co., e material price due 3-6
by controller
Ltd. s months
Guangdong Midea
Cash or
Environment Subsidiary Purchase
Purchas Market acceptance
Appliances controlled of 428.89 0.13%
e price due 3-6
Manufacturing by controller products
months
Co., Ltd.
Subsidiary Revenu T/T, Transfer
Annto Logistics Logistic Market
controlled e from 8.9 0.00% or online
Co., Ltd. s service price
by controller service banking
Huaian Weiling Cash or Naught Naught
Subsidiary Sales of
Motor Market acceptance
controlled Sales material 5.12 0.00%
Manufacturing price due 3-6
by controller s
Co., Ltd. months
Party B paid On 7 Mar.
to party A in 2014, the
MIDEA
cash, after Company
CONSUMER Subsidiary
Sales of Market receiving the 7 Mar. published on
ELECTRIC controlled Sales 81.62 0.02%
products price party A’s 2014 the
(VIETNAM) by controller
supply in the information
CO.,LTD
bill of lading network's
within 90 days announceme
20
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Party B paid nt:
to party A in (Announcem
MIDEA cash, after ent No.:
ELECTRIC Subsidiary receiving the 2014-05)
Sales of Market
TRADING(SING controlled Sales 67,690.79 13.61% party A’s
products price
APORE)CO.PTE. by controller supply in the
LTD bill of lading
within 120
days
Party B paid
to party A in
MIDEA cash, after
SCOTT&ENGLIS Subsidiary receiving the
Sales of Market
H controlled Sales 1,255.35 0.25% party A’s
products price
ELECTRONILCS by controller supply in the
SDN.BHD bill of lading
within 150
days
Party B paid
to party A in
cash, after
PT. MIDEA Subsidiary
Sales of Market receiving the
PLANET controlled Sales 205.55 0.04%
products price party A’s
INDONESIA by controller
supply in the
bill of lading
within 90 days
Total -- -- 111,998.43 -- -- -- -- --
As for the prediction on the total amount of routine
related-party transactions to be occurred in the For details, see IX. Financial report “(VIII) Related-party and related-party
reporting period by relevant types, the actual transactions, 5. Related-party transactions”.
performance in the reporting period(If any)
2. Related-party transactions arising from asset acquisition or sale
□Applicable √Inapplicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the reporting period.
3. Related-party transitions with joint investments
□Applicable √Inapplicable
The Company was not involved in any related-party transaction with joint investments during the reporting period.
21
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
4. Credits and liabilities with related parties
√Applicable □Inapplicable
Was there any non-operating credit or liability with any related party?
□Yes √No
The Company was not involved in any credits and liabilities with related parties during the reporting period.
5. Other significant related-party transactions
√Applicable □Inapplicable
(1) The Company held the 1st Special Shareholder’s General Meeting on 27 Aug. 2013, which reviewed and approved the following
proposals:
① Reviewed and approved the Proposal of the Related-party Transactions about Signing the Financial Services Agreement with
Midea Group Finance Co., Ltd.
The agreement agreed that, according to the requirements of the subsidiary of the Company, the Finance Company should provide
deposit services, loan services, bill discounting services, guarantees, settlement services and a series of financial services that what
the Finance Company could work on approved by CBRC to the Company and its subsidiary. Within the 3 years validity period since
the date of the validation of the agreement, the maximum daily deposit balance the Company and its subsidiary deposit in the
Financial Company should not exceed RMB 1 billion; the maximum daily outstanding balance of the loan principal and interest the
Financial Company grants for the Company and its subsidiary should not exceed RMB 1 billion.
The Company was not involved in any loan business with the deposit balance in the Midea Group Finance Co., Ltd. of RMB
274,842,700 at the end of the reporting period.
② Reviewed and approved the Proposal of the Related-party Transaction about the Trademark Licensing
The Company permitted GD Midea Holding and its controlled subsidiaries to use trademark of “LITTLE SWAN and picture” in air
conditioner commodities; permitted Hubei Midea Refrigerator Co., Ltd. and its controlled subsidiaries to use trademark of “LITTLE
SWAN and picture” in refrigerator and freezer commodities; at the same time GD Midea Holding Co., Ltd permitted the Company
and subsidiaries of the Company to use trademark of “Midea” in production, sales and ad campaign of washing machines and dryers.
The aforesaid licensing contracts were all contracted with 0.3% charges of net sales revenue of products with the authorized
trademark as trademark license fees, and the licensing period ranged from 1 Jan. 2014 to 31 Dec. 2016.
(Note: After approved by CSRC through [2013]1014 document, Midea Group had split off as well as consolidated and combined the
original controller GD Midea Holding on 18 Sep. 2013. After the consolidation and combination, Midea Group inherited and
undertook the whole rights and obligations of the whole assets and liabilities etc of GD Midea Holding as the reminder enterprise and
had finished the relevant registration procedures of shares transfer on 31 Dec. 2013.)
(2) The 2013 Annual Shareholder’s General Meeting was convened on 16 Apr. 2014, at which reviewed and approved the Proposal
on Prediction of the Line of Routine Related Transaction of the Company for 2014.
(3) The 9th Meeting of the 7th Board of Directors was convened on 21 Apr. 2014, at which reviewed and approved the Proposal on
Adjustment of the Line of Routine Related Transaction of the Company for 2014.
For details of the routine related-party transactions, see IX. Financial report “(VIII) Related-party and related-party transactions”.
Related queries of disclosure index of significant related-party transactions’ interim report
Disclosure date of the Website to disclose the interim
Name of the interim announcement
interim announcement announcement
Announcements about trademark license of related transactions
6 Aug. 2013 www.cninfo.com.cn
(No.: 2013-18)
22
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Proposal of the Related-party Transactions about Signing the
Financial Services Agreement with Midea Group Finance Co., 6 Aug. 2013 www.cninfo.com.cn
Ltd. (No.: 2013-17)
Proposal on Prediction of the Line of Routine Related Transaction
7 Mar. 2014 www.cninfo.com.cn
of the Company for 2014 (No.: 2014-05)
Proposal on Adjustment of the Line of Routine Related
22 Apr. 2014 www.cninfo.com.cn
Transaction of the Company for 2014 (No.: 2014-17)
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Inapplicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties
during the reporting period.
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Inapplicable
There was no any trusteeship of the Company in the reporting period.
(2) Contract
□ Applicable √ Inapplicable
There was no any contract of the Company in the reporting period.
(3) Lease
√ Applicable □ Inapplicable
Explanation on the lease
There was neither any significant lease event nor any significant lease event carried down into the reporting period.
The lease whose profits reaching more than 10% of the total profits of the Company in the reporting period.
□ Applicable √ Inapplicable
2. Guarantees provided by the company
√ Applicable □ Inapplicable
Unit: RMB Ten Thousand Yuan
Guarantees provided by the company for external parties (excluding those for subsidiaries)
Guaranteed party Disclosure Amount for Actual Actual Type of Period of Executed Guarante
23
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
date on guarantee occurrence date guarantee guarantee guarantee or not e for a
relevant (date of amount related
announcem agreement) party or
ent of not
guaranteed
amount
Total external guarantee line Total actual occurred amount
approved during the reporting 0 of external guarantee during 0
period (A1) the reporting period (A2)
Total external guarantee line that Total actual external guarantee
has been approved at the end of 0 balance at the end of the 0
the reporting period (A3) reporting period (A4)
Guarantees provided by the company for its subsidiaries
Disclosure
date on Guarante
Actual
relevant Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party announcem guarantee related
guarantee (date of guarantee guarantee or not
ent of amount party or
agreement)
guaranteed not
amount
Hefei Midea
General
Washing Machine 7 Mar. 2014 127,000 28 Mar. 2014 64.54 Six months No No
warranty
Co., Ltd.
Hefei Midea
General
Washing Machine 7 Mar. 2014 127,000 28 Mar. 2014 6.37 Six months No No
warranty
Co., Ltd.
Total actual occurred amount
Total guarantee line approved for
of guarantee for the
the subsidiaries during the 129,000 70.90
subsidiaries during the
reporting period (B1)
reporting period (B2)
Total guarantee line that has been
Total actual guarantee balance
approved for the subsidiaries at
129,000 for the subsidiaries at the end 70.90
the end of the reporting period
of the reporting period (B4)
(B3)
Total guarantee amount provided by the Company (total of the above-mentioned two kinds of guarantees)
Total guarantee line approved Total actual occurred amount
during the reporting period 129,000 of guarantee during the 70.90
(A1+B1) reporting period (A2+B2)
Total guarantee line that has been Total actual guarantee balance
approved at the end of the 129,000 at the end of the reporting 70.90
reporting period (A3+B3) period (A4+B4)
24
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Proportion of total guarantee amount (A4+B4) to the net assets
0.02%
of the Company
Of which:
Amount of guarantee for shareholders, actual controller and
0
related parties (C)
Amount of debt guarantee provided for the guaranteed party
whose asset-liability ratio is not less than 70% directly or 0
indirectly (D)
Part of the amount of the total guarantee over 50% of net assets
0
(E)
Total amount of the above three guarantees (C+D+E) 0
(1) Particulars about illegal external guarantee
□ Applicable √ Inapplicable
There was no particular about illegal external guarantee of the Company in the reporting period.
3. Other significant contracts
□ Applicable √ Inapplicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable √ Inapplicable
There was no other significant transaction of the Company in the reporting period.
X. 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
√Applicable □Inapplicable
Time of
Period of
Commitmen Commitm making Fulfil
Contents commitme
t ent maker commitme lment
nt
nt
Where the controlling shareholder GD Midea Holding Co., Ltd. (Midea
In the
Holding) plans to sell the Company’s shares released from trading
Controllin proce
Commitmen moratorium held by it via the bid trading system of the Shenzhen Stock
g 28 Feb. ss of
t on share Exchange, and Midea Holding decreases over 5% shares within six months Long-term
shareholde 2008 imple
reform since the first reduction of holdings, Midea Holding will disclose the
r menta
suggestive announcement on share selling through the Company two
tion
trading days before its first reduction of holdings.
25
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
1. As for the commitment of avoiding horizontal competition, Midea Group
(the controlling shareholder) and Mr. He Xiangjian (the actual controller)
has promised that, for the period after the said transaction when the
Company’s controlling shareholder and actual controller remain
unchanged, the actual controller Mr. He Xiangjian, his immediate family,
Midea Group and its controlled other enterprises neither recently nor in the
future will engage in any production or operation activity the same as or
similar to the recently main business of Little Swan or its controlled
Controllin In the
enterprises, as well as will neither engage in nor participate in any
g proce
competitive business the same as the recently main business of Little Swan 1 Dec.
shareholde ss of
or its controlled enterprises through controlling other economic entities, 2010, 6 Long-term
r and imple
institutions, economic organizations. If Little Swan and its controlled Jun. 2014
actual menta
enterprises further developed its scope of the operation business on the
controller tion
basis of the recently business, and if the actual controller Mr. He Xiangjian,
his immediate family, Midea Group and its controlled other enterprises had
executed production of that, would solve the corresponding horizontal
competition problems within the reasonable period. If recently there was no
any production or operation, would not engage in the similar new business
that competed with Little Swan and its controlled enterprises. If there was
Commitmen
any situation violated the above commitments, the profits gained from the
t in the
business related to operation were belongs to Little Swan.
acquisition
2. The commitment by Midea Group and the actual controller on the
report or the
specification of the related-party transaction. Midea Group (the controlling
report on
shareholder) and Mr. He Xiangjian (the actual controller) has promised
equity
that, for the period after the said transaction when the Company’s
changes
controlling shareholder and actual controller remain unchanged, the actual
controller Mr. He Xiangjian, his immediate family, Midea Group and its
controlled other enterprises will specify and try their best to reduce the
related-party transactions with Little Swan and its controlled enterprises. If
occurred the unavoidable related transactions with Little Swan and its
Controllin In the
controlled enterprises, would sign the normative related-party transactions
g proce
agreement Little Swan according to laws and would execute the approval 1 Dec.
shareholde ss of
procedure according to the relevant regulations to ensure the fairness of the 2010, 6 Long-term
r and imple
price of the related-party transactions; ensure to execute the information Jun. 2014
actual menta
disclose obligation of related-party transactions according to the relevant
controller tion
regulations; ensure not to make advantage of the related-party transactions
for illegally transferring the assets and profits of Little Swan, as well as not
to make advantage of the related-party transactions for harming to the
interests of Little Swan and the shareholders; would not require Little Swan
to offer any more favorable condition compared with that offered to the
independent third party in any fair trade market transaction; execute the
voting debarb obligation when involved in the voting of the related events
of the actual controller Mr. He Xiangjian, his immediate family, Midea
Group and its controlled other enterprises. If Midea Group and Mr. He
26
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Xiangjian violated the above commitments and promises that led to the
harm for the equity of Little Swan or other shareholders, Midea Group and
Mr. He Xiangjian should taike the responsibility of the corresponding
liability for damage.
3. As for the commitment on independence, Midea Group has promised to
protect Little Swan’s independence in terms of assets, staff, finance,
In the
organization and business. 3. As for the commitment on independence,
Controllin proce
Midea Group and the actual controller Mr. He Xiangjian has promised that, 1 Dec.
g ss of
to further ensure the independent operation of Little Swan, Mr. He 2010, 6 Long-term
shareholde imple
Xiangjian, Midea Group and its controlled other enterprises would maintain Jun. 2014
r menta
the mutual independent in terms of personnel, finance, assets, bunisess and
tion
institutions with Little Swan according to the relevant laws and regulations
as well as the normative documents.
4. As for the commitment on related-party deposits and borrowings, up to 8
In the
Apr. 2010, the Financial Settlement Center of Midea Group had settled all
Controllin proce
internal deposits and borrowings with Hefei Royalstar Washing Equipment
g 1 Dec. ss of
Manufacturing Co., Ltd.; and Midea Group has promised that there will be Long-term
shareholde 2010 imple
no more deposits, borrowings or other funds flows incurred between the
r menta
Financial Settlement Center and Hefei Royalstar Washing Equipment
tion
Manufacturing Co., Ltd..
5. The commitment 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 Royalstar Washing Equipment assessed and In the
Controllin sold to the Company are of no ownership certificates—the warehouse for proce
g half-finished products (176 square meters) and the workshop for injection 1 Dec. ss of
Long-term
shareholde molding (834 square meters), both located in the old factory of Royalstar 2010 imple
r Washing Equipment, Hewa Road, Hefei. Midea Group has promised that if menta
loss occurs due to the said two buildings without ownership certificates in tion
the asset disposal process in the future, it will assume the loss thus caused
and make compensation to the Company.
6. The commitment by Midea Group on trademarks is detailed as follows. No. (2),
(1) Concerning the “Midea” trademark: Upon approval and implementation RongShiD
of the equity transfer transaction, Midea Group has promised that it will a
make sure that Royalstar Washing Equipment uses the “Midea” trademark trademark
In the
in a proper manner. Royalstar Washing Equipment will be allowed to use is due by
Controllin proce
the “Midea” trademark with a trademark use fee not more than that paid by March 31,
g 1 Dec. ss of
Midea Group (the controlling shareholder of Midea Group) and its 2013 and
shareholde 2010 imple
subsidiaries (currently 3‰ of the annual sales income generated by won’t
r menta
products using the “Midea” trademark), and upon negotiation and signing renew its
tion
of the “Agreement for Trademark Use”. The related-party transactions contract;
incurred due to the said use of the “Midea” trademark will be submitted to Other
the decision-making organ of the Company for approval according to the items for a
stipulated procedure. As such, interests of the Company and its minority long term
27
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
shareholders will be safeguarded. (2) Concerning the “Royalstar” implement
trademark: Midea Group has signed the “Contract for Trademark Use” with
Royalstar Group and obtained the ordinary use rights of the “Royalstar” (or
“RongShiDa”) trademark. As the transferor in the transfer transaction of
equity interests of Royalstar Washing Equipment, Midea Group has
promised that within the scope as agreed in the “Contract for Trademark
Use”, if any dispute arises between Royalstar Washing Equipment and
Royalstar 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 by Midea Group on social security payment and tax
risks is detailed as follows. Midea Group has promised that upon the
completion of the said equity transfer deal, if Royalstar Washing
Equipment 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, Midea Group is willing to pay relevant fares In the
Controllin for Royalstar Washing Equipment to relevant government authorities in a proce
g timely manner and assume any other liability. If any loss thus occurs to 1 Dec. ss of
Long-term
shareholde Royalstar Washing Equipment or Little Swan, Midea Group is willing to 2010 imple
r assume relevant responsibilities for compensation. Upon the completion of menta
the said equity transfer deal, if income tax evasion or any other tax risk is tion
found in Royalstar Washing Equipment, 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.
Commitmen
ts made in
Naught
an asset
exchange
Commitmen
ts made in
first public Naught
issuance or
refinancing.
Other
commitment
s made to Naught
minority
shareholders
28
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Executed
timely or Yes
not?
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
XII. Punishment and Rectification
□ Applicable √ Inapplicable
There was no any punishment and rectification of the Company in the reporting period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Inapplicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
XIV. Explanation about other significant matters
□ Applicable √ Inapplicable
There was no any other significant matter needed to be explained in the reporting period.
29
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Section VI. Changes in Share Capital and Particulars about
Shareholders
I. Changes in share capital
Unit: Share
Before this change Increase/decrease (+, -) After the change
Capitalizat
Issuance ion of
Proportion Bonus Proportio
Amount of new public Other Subtotal Amount
(%) share n (%))
shares reserve
fund
I. Shares subject to trading
3,689,890 0.58% 1,000 1,000 3,690,890 0.58%
moratorium
1. State-owned shares
2. State-owned legal
person
shares
3. Other domestic shares 3,689,890 0.58% 1,000 1,000 3,690,890 0.58%
Including: Shares held by
3,686,890 0.58% 3,686,890 0.58%
domestic legal persons
Shares held by domestic
3,000 1,000 1,000 4,000
individuals
4. Shares held by
overseas shareholders
Including: Shares held by
overseas legal persons
Shares held by overseas
individuals
II. Shares not subject to
628,797,874 99.42% -1,000 -1,000 628,796,874 99.42%
trading moratorium
1. Ordinary shares
437,762,002 69.21% -1,000 -1,000 437,761,002 69.21%
denominated in RMB
2. Domestically listed
191,035,872 30.20% 191,035,872 30.20%
foreign shares
3. Overseas listed foreign
30
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
shares
4. Other
III. Total of shares 632,487,764 100.00% 632,487,764 100.00%
Reasons for changes in share
□ Applicable √ Inapplicable
Approval of share changes
□ Applicable √ Inapplicable
Transfers in share changes
□ Applicable √ Inapplicable
Influence of share changes towards financial indexes in the latest year and latest period such as basic EPS and diluted EPS, and net
assets per share belonging to shareholder with ordinary share
□ Applicable √ Inapplicable
Other contents that the Company thinks necessary or is asked by securities regulators to be disclosed
□ Applicable √ Inapplicable
Explanation of the changes in the sum of the shares and the structure of the shareholders and the structure of the assets as well as the
liabilities of the Company
□ Applicable √ Inapplicable
II. Number of shareholders and shareholding
Unit: Share
Total number of preferred
Total number of common
shareholders that had restored
shareholders at the end of the 29,163 0
the voting right at the end of the
reporting period
reporting period (if any)
Shareholding of shareholders holding more than 5% shares
Number Pledged or
Increase
of shares frozen shares
Number of and Number of
held
Holding shareholding decrease shares held
Nature of subject Num
Name of shareholder percenta at the end of of shares not subject to Status
shareholder to ber of
ge (%) the reporting during trading of
trading share
period reporting moratorium shares
moratori s
period
um
Domestic
MIDEA GROUP CO., LTD. non-state-owned 35.20% 222,661,571 0 222,661,571
corporation
Overseas
GAOLING FUND,L.P. 8.57% 54,207,686 56,100 54,207,686
corporation
TITONI INVESTMENTS Overseas
4.88% 30,851,714 0 30,851,714
DEVELOPMENT LTD. corporation
31
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
On behalf of the
FINANCE BUREAU OF WUXI 3.49% 22,057,657 0 22,057,657
government
Overseas
BOCI SECURITIES LIMITED 3.36% 21,273,615 63,806 21,273,615
corporation
GUOTAI JUNAN
Overseas
SECURITIES(HONGKONG) 2.39% 15,089,700 741,629 15,089,700
corporation
LIMITED
NATIONAL SOCIAL Domestic
SECURITY FUND PORTFOLIO non-state-owned 1.90% 12,000,000 0 12,000,000
102 corporation
CCB－PENGHUA VALUE
Domestic
ADVANTAGE STOCK
non-state-owned 1.04% 6,593,148 -500,000 6,593,148
SECURITIES INVESTMENT
corporation
FUND
Domestic
INDUSTRIAL SECURITIES
non-state-owned 0.98% 6,200,000 6,200,000 6,200,000
CO., LTD
corporation
NATIONAL SOCIAL Domestic
SECURITY FUND PORTFOLIO non-state-owned 0.98% 6,180,101 -1,000,000 6,180,101
108 corporation
Strategic investors or the general legal person due to
the placement of new shares become the top 10 Inapplicable
shareholders (if any)
MIDEA GROUP CO., LTD. and TITONI INVESTMENTS
Explanation on associated relationship or/and persons
DEVELOPMENT LTD. are parties acting in concert.
Particulars about shares held by top 10 shareholders not subject to trading moratorium
Number of shares held not Type of share
subject to trading
Name of shareholder
moratorium at the end of Type of share Number
the period
Midea Group Co., Ltd. 222,661,571 RMB ordinary share 222,661,571
Domestically listed
GAOLING FUND,L.P. 54,207,686 222,661,571
foreign share
Domestically listed
TITONI INVESTMENTS DEVELOPMENT LTD. 30,851,714 30,851,714
foreign share
FINANCE BUREAU OF WUXI 22,057,657 RMB ordinary share 22,057,657
Domestically listed
BOCI SECURITIES LIMITED 21,273,615 21,273,615
foreign share
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 15,089,700 Domestically listed 15,089,700
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
foreign share
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 102 12,000,000 RMB ordinary share 12,000,000
CCB－Penghua Value Advantage Stock Securities Investment
6,593,148 RMB ordinary share 6,593,148
Fund
INDUSTRIAL SECURITIES CO., LTD 6,200,000 RMB ordinary share 6,200,000
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108 6,180,101 RMB ordinary share 6,180,101
Explanation on associated relationship among the top ten
shareholders of tradable share not subject to trading
Midea Group Co., Ltd. and TITONI INVESTMENTS
moratorium, as well as among the top ten shareholders of
DEVELOPMENT LTD. are parties acting in concert.
tradable share not subject to trading moratorium and top ten
shareholders, or explanation on acting-in-concert
Particular about shareholder participate in the securities
Naught
lending and borrowing business (if any)
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
Shareholders of the Company had not carried out any agreed buy-back in the reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Inapplicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or
implemented by the shareholders and act-in-concert persons
√Applicable □Inapplicable
Disclosure date
Shares Initial disclosure for the
Amount of shares Shares Amount of
Name of shareholder / proportion date of the completion of
to be increased proportion to be shares actually
act-in-concert person increased shareholding implementing the
holding increased held
actually increase scheme shareholding
increase scheme
Midea Group and
126,497,553 20.00% 9 Jun. 2014
TITONI
For further improve the business synergistic effect between Midea Group and Little Swan, strengthen the core competition power of
the washing machine industry of Little Swan, Midea Group planed to associate with its wholly owned and controlled foreign
company TITONI to execute partly tender offer of Share A and Share B of Little Swan, in order to strengthen the control power of
Little Swan. The tender offer was not for terminating the listing status of the stocks of Little Swan. Up to the date of the disclosure of
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
the report, the period of the tender offer had expired and according to the disclosure of the Shenzhen Exchange Stock website, the
amount of the accumulative estimated offer shares was of 79,639,774 shares which was of 12.59% of the total shares of the Company.
Midea Group is going through the registration procedures of the shares transfer. For the details of the tender offer please refer to the
relevant announcements disclosed by the Company.
Section VII. Situation of the Preferred Shares
I. Situation of issue and listing of preferred shares in the reporting period
□ Applicable √ Inapplicable
II. Situation of the number and holding of the preferred shares shareholders of the Company
□ Applicable √ Inapplicable
III. Situation of buy-back or transfer of the preferred shares
1. Situation of buy-back the preferred shares
□ Applicable √ Inapplicable
2. Situation of transfer the preferred shares
□ Applicable √ Inapplicable
IV. Situation of recovery and execution of the voting right of preferred shares
□ Applicable √ Inapplicable
V. Accounting policies and reasons adopted by the preferred shares
□ Applicable √ Inapplicable
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Section VIII. Directors, Supervisors, Senior Management Staffs
I. Changes in shareholding of directors, supervisors and senior management staffs
□ Applicable √ Inapplicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific information please refer
to the 2013 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√Applicable □Inapplicable
Name Position Type Date Reason
Yang Xiaowen Supervisor Left 7 Mar. 2014 Personal reasons
Deputy General
Hu Ziqiang Left 22 Apr. 2014 Job transfer
Manager
Chen Jianwu Supervisor Selected 16 Apr. 2014 Special election of Supervisors
Chairman of the
Jiang Huafang Left 5 Aug. 2014 Job transfer
Supervisory
Chen Jianwu Supervisor Left 5 Aug. 2014 Job transfer
Supervisor of the
Ye Dexin Left 5 Aug. 2014 Personal reasons
Staff Representative
Staff-representative Became the Staff-representative
Xu Pengcheng Elected 5 Aug. 2014
supervisor Supervisor on by-election
The service term of the Independent Directors of the Company—Mr. Zhao Shuming and Mr. Ye Yongfu had expired and the
Company held the 11th Meeting of the 7th Board of Directors on 5 Aug. 2014, at which the Board nominated Mr. Jiang Qingyun and
Mr. Liu Chunlin as candidates for the Independent Directors of the 7th Board of Directors. The Company also held the 11th Session
of the 7th Supervisory Committee on 5 Aug. 2014, at which the Supervisory Committee nominated Mr. Liang Pengfei and Mr. Wang
Shouhu as supervisor candidates for the 7th Supervisory Committee. For more information, see relevant announcements of the
Company.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
IX. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 2,165,295,105.79 1,617,373,088.50
Settlement reserves
Intra-group lendings
Transactional financial assets 1,486,950.00 15,016,740.00
Notes receivable 2,376,741,559.62 2,449,770,225.41
Accounts receivable 825,357,689.50 777,744,132.32
Accounts paid in advance 163,170,120.91 140,841,924.06
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable
Dividend receivable
Other accounts receivable 25,557,616.45 26,163,524.13
Financial assets purchased under
agreements to resell
Inventories 581,264,111.18 798,141,838.58
Non-current assets due within 1 year
Other current assets 1,959,627,280.92 1,791,288,539.62
Total current assets 8,098,500,434.37 7,616,340,012.62
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 251,664.00 312,816.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 4,598,996.45 4,579,148.88
Investing property 8,961,631.44 9,466,777.10
Fixed assets 1,131,351,176.29 1,194,244,286.86
Construction in progress 2,957,911.82
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 216,719,963.63 219,445,532.87
R&D expense
Goodwill
Long-term deferred expenses 3,466,516.25 7,147,835.74
Deferred income tax assets 219,585,580.85 170,990,970.67
Other non-current assets
Total of non-current assets 1,587,893,440.73 1,606,187,368.12
Total assets 9,686,393,875.10 9,222,527,380.74
Current liabilities:
Short-term borrowings 50,117,340.00
Borrowings from Central Bank
Customer bank deposits and due to banks
and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 868,240,658.99 385,673,110.34
Accounts payable 3,157,373,388.21 2,768,046,095.46
Accounts received in advance 439,535,919.42 1,057,952,597.52
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 165,171,100.88 207,323,619.92
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Tax payable 246,020,710.21 199,203,856.56
Interest payable
Dividend payable 4,088,128.36 3,740,152.33
Other accounts payable 40,154,741.17 50,021,093.66
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 4,970,701,987.24 4,671,960,525.79
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables 3,783,957.30 2,073,957.30
Estimated liabilities 10,162,452.89 11,310,523.59
Deferred income tax liabilities 245,747.10 2,284,388.40
Other non-current liabilities 517,000.00 568,600.00
Total non-current liabilities 14,709,157.29 16,237,469.29
Total liabilities 4,985,411,144.53 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 1,134,752,577.59 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 1,986,192,134.05 1,859,579,931.10
Foreign exchange difference -3,281,725.80 -3,559,713.76
Total equity attributable to owners of the
4,041,109,118.33 3,908,897,654.74
Company
Minority interests 659,873,612.24 625,431,730.92
Total owners’ (or shareholders’) equity 4,700,982,730.57 4,534,329,385.66
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Total liabilities and owners’ (or
9,686,393,875.10 9,222,527,380.74
shareholders’) equity
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 1,319,381,125.13 910,325,739.17
Transactional financial assets 891,830.00 8,727,740.00
Notes receivable 1,775,116,288.67 1,541,082,811.22
Accounts receivable 466,793,123.77 731,446,199.69
Accounts paid in advance 49,001,417.27 56,620,106.39
Interest receivable
Dividend receivable
Other accounts receivable 20,467,623.01 18,752,200.83
Inventories 368,431,047.85 543,401,541.27
Non-current assets due within 1 year
Other current assets 915,046,019.24 939,664,538.10
Total current assets 4,915,128,474.94 4,750,020,876.67
Non-current assets:
Available-for-sale financial assets 251,664.00 312,816.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,401,743,488.02 1,601,723,640.45
Investing property 8,961,631.44 9,466,777.10
Fixed assets 540,694,322.78 568,924,123.24
Construction in progress 2,184,273.62
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Intangible assets 99,829,619.68 101,069,007.28
R&D expense
Goodwill
Long-term deferred expenses 2,991,763.99 6,781,326.79
Deferred income tax assets 148,189,983.08 119,667,809.75
Other non-current assets
Total of non-current assets 2,204,846,746.61 2,407,945,500.61
Total assets 7,119,975,221.55 7,157,966,377.28
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Notes payable 461,682,942.33 273,399,760.34
Accounts payable 2,164,235,637.83 1,766,585,288.21
Accounts received in advance 257,588,046.63 724,228,146.67
Employee’s compensation payable 91,049,261.41 118,237,120.06
Tax payable 183,250,231.91 156,722,107.53
Interest payable
Dividend payable 4,088,128.36 3,740,152.33
Other accounts payable 11,228,323.15 208,682,591.14
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 3,173,122,571.62 3,251,595,166.28
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 156,479.10 1,341,038.40
Other non-current liabilities
Total non-current liabilities 156,479.10 1,341,038.40
Total liabilities 3,173,279,050.72 3,252,936,204.68
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 632,487,764.00 632,487,764.00
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Capital reserves 1,295,769,729.27 1,291,483,360.14
Less: Treasury stock
Specific reserves
Surplus reserves 278,308,224.59 278,308,224.59
Provisions for general risks
Retained profits 1,740,130,452.97 1,702,750,823.87
Foreign exchange difference
Total owners’ (or shareholders’) equity 3,946,696,170.83 3,905,030,172.60
Total liabilities and owners’ (or shareholders’) equity 7,119,975,221.55 7,157,966,377.28
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
3. Consolidated income statement
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Total operating revenues 4,974,057,020.56 3,998,224,336.31
Including: Sales income 4,974,057,020.56 3,998,224,336.31
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 4,606,970,952.57 3,778,696,264.86
Including: Cost of sales 3,655,315,076.59 3,005,810,911.14
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 31,180,668.93 25,957,616.21
Selling and distribution expenses 708,872,153.90 539,966,097.76
Administrative expenses 210,082,884.69 173,092,190.68
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Financial expenses -9,899,828.86 20,143,097.74
Asset impairment loss 11,419,997.31 13,726,351.33
Add: Gain/(loss) from change in fair value (“-” means loss) -13,529,790.00 10,584,660.00
Gain/(loss) from investment (“-” means loss) 56,378,070.46 38,581,681.44
Including: share of profits in associates and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) 409,934,348.45 268,694,412.89
Add: non-operating income 11,614,209.80 17,650,895.21
Less: non-operating expense 4,748,238.66 7,432,491.94
Including: loss from non-current asset disposal
IV. Total profit (“-” means loss) 416,800,319.59 278,912,816.16
Less: Income tax expense 66,436,602.59 42,992,351.93
V. Net profit (“-” means loss) 350,363,717.00 235,920,464.23
Including: Net profit achieved by combined parties
before the combinations
Attributable to owners of the Company 316,358,532.13 220,961,466.94
Minority shareholders’ income 34,005,184.87 14,958,997.29
VI. Earnings per share -- --
(I) Basic earnings per share 0.50 0.35
(II) Diluted earnings per share 0.50 0.35
VII. Other comprehensive incomes 226,008.76 -569,691.66
VIII. Total comprehensive incomes 350,589,725.76 235,350,772.57
Attributable to owners of the Company 316,584,540.89 220,391,775.28
Attributable to minority shareholders 34,005,184.87 14,958,997.29
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
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Total sales 3,642,700,222.95 2,910,402,363.86
Less: cost of sales 2,718,742,930.62 2,197,383,259.40
Business taxes and surcharges 21,764,077.70 20,320,831.11
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Distribution expenses 518,302,677.11 394,075,467.07
Administrative expenses 144,963,100.14 109,549,513.68
Financial costs -4,561,649.19 12,174,679.39
Impairment loss -5,948,475.57 2,850,533.92
Add: gain/(loss) from change in fair value (“-” means
-7,835,910.00 6,513,520.00
loss)
Gain/(loss) from investment (“-” means loss) 23,473,873.16 22,742,688.68
Including: income form investment on associates and
joint ventures
II. Business profit (“-” means loss) 265,075,525.30 203,304,287.97
Add: non-business income 3,734,536.38 7,992,467.00
Less: non-business expense 3,191,532.34 4,601,303.60
Including: loss from non-current asset disposal
III. Total profit (“-” means loss) 265,618,529.34 206,695,451.37
Less: income tax expense 38,492,571.05 31,275,244.26
IV. Net profit (“-” means loss) 227,125,958.29 175,420,207.11
V. Earnings per share -- --
(I) Basic earnings per share 0.36 0.28
(II) Diluted earnings per share 0.36 0.28
VI. Other comprehensive income -51,979.20 -37,984.80
VII. Total comprehensive income 227,073,979.09 175,382,222.31
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
5. Consolidated cash flow statement
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and
3,811,640,189.96 3,863,185,024.86
rendering of service
Net increase of deposits from customers and dues
from banks
Net increase of loans from the central bank
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
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 3,315,534.83 50,388,592.37
Other cash received relating to operating activities 15,703,387.98 18,947,986.23
Subtotal of cash inflows from operating activities 3,830,659,112.77 3,932,521,603.46
Cash paid for goods and services 1,682,161,655.09 1,835,326,159.78
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 378,843,499.77 309,287,589.09
Various taxes paid 332,132,100.43 221,545,520.17
Other cash payment relating to operating activities 612,417,421.65 635,240,038.60
Subtotal of cash outflows from operating activities 3,005,554,676.94 3,001,399,307.64
Net cash flows from operating activities 825,104,435.83 931,122,295.82
II. Cash flows from investing activities:
Cash received from withdrawal of investments 4,001,000,000.00 4,832,824,376.42
Cash received from return on investments 56,358,222.89 4,704,180.00
Net cash received from disposal of fixed assets,
264,120.00 16,794,737.42
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or
other business units
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Other cash received relating to investing
activities
Subtotal of cash inflows from investing
4,057,622,342.89 4,854,323,293.84
activities
Cash paid to acquire fixed assets, intangible assets
28,747,550.40 30,407,330.54
and other long-term assets
Cash paid for investment 4,163,370,000.00 5,424,060,000.00
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 4,192,117,550.40 5,454,467,330.54
Net cash flows from investing activities -134,495,207.51 -600,144,036.70
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority
shareholder investments by subsidiaries
Cash received from borrowings 50,117,340.00
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 50,117,340.00
Repayment of borrowings
Cash paid for interest expenses and distribution of
184,308,280.03 182,583,655.47
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 184,308,280.03 182,583,655.47
Net cash flows from financing activities -134,190,940.03 -182,583,655.47
IV. Effect of foreign exchange rate changes on cash
and cash equivalents
V. Net increase in cash and cash equivalents 556,418,288.29 148,394,603.65
Add: Opening balance of cash and cash
1,558,204,866.53 1,293,126,217.00
equivalents
VI. Closing balance of cash and cash equivalents 2,114,623,154.82 1,441,520,820.65
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
6. Cash flow statement of the Company
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Item Jan.-Jun. 2014 Jan.-Jun 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and
2,579,939,149.03 2,373,009,947.22
rendering of service
Tax refunds received 23,034,383.44
Other cash received relating to operating activities 9,230,784.56 12,592,559.37
Subtotal of cash inflows from operating activities 2,589,169,933.59 2,408,636,890.03
Cash paid for goods and services 1,106,675,777.67 1,049,033,086.46
Cash paid to and for employees 244,060,695.70 193,294,387.88
Various taxes paid 244,269,676.94 166,569,207.35
Other cash payment relating to operating activities 443,271,306.57 298,898,195.89
Subtotal of cash outflows from operating activities 2,038,277,456.88 1,707,794,877.58
Net cash flows from operating activities 550,892,476.71 700,842,012.45
II. Cash flows from investing activities:
Cash received from retraction of investments 2,040,000,000.00 2,072,567,723.65
Cash received from return on investments 31,967,080.07 3,121,840.00
Net cash received from disposal of fixed assets,
1,722,280.00
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or
38,977.14
other business units
Other cash received relating to investing
activities
Subtotal of cash inflows from investing
2,072,006,057.21 2,077,411,843.65
activities
Cash paid to acquire fixed assets, intangible assets
13,518,301.57 19,877,046.82
and other long-term assets
Cash paid for investment 2,013,000,000.00 2,620,000,000.00
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing activities
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Subtotal of cash outflows from investing activities 2,026,518,301.57 2,639,877,046.82
Net cash flows from investing activities 45,487,755.64 -562,465,203.17
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
184,964,713.60 182,583,655.47
dividends or profit
Other cash payments relating to financing
activities
Sub-total of cash outflows from financing activities 184,964,713.60 182,583,655.47
Net cash flows from financing activities -184,964,713.60 -182,583,655.47
IV. Effect of foreign exchange rate changes on cash
and cash equivalents
V. Net increase in cash and cash equivalents 411,415,518.75 -44,206,846.19
Add: Opening balance of cash and cash
882,413,120.18 848,257,647.96
equivalents
VI. Closing balance of cash and cash equivalents 1,293,828,638.93 804,050,801.77
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng
Chief of the accounting division: Zhong Fangliu
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
7. Consolidated Statement of Changes in Owners’ Equity
Prepared by Wuxi Little Swan Company Limited
Jan.-Jun. 2014
Unit: RMB Yuan
Jan.-Jun. 2014
Equity attributable to owners of the Company
Item Total owners’
Less: General
Paid-up capital Specific Minority interests
Capital reserve treasury Surplus reserve risk Retained profit Others equity
(or share capital) reserve
stock reserve
I. Balance at the end of the previous
632,487,764.00 1,129,431,304.91 290,958,368.49 1,859,579,931.10 -3,559,713.76 625,431,730.92 4,534,329,385.66
year
Add: change of accounting policy
Correction of errors in previous
periods
Other
II. Balance at the beginning of the year 632,487,764.00 1,129,431,304.91 290,958,368.49 1,859,579,931.10 -3,559,713.76 625,431,730.92 4,534,329,385.66
III. Increase/ decrease in the period (“-”
5,321,272.68 126,612,202.95 277,987.96 34,441,881.32 166,653,344.91
means decrease)
(I) Net profit 316,358,532.15 34,005,184.87 350,363,717.02
(II) Other comprehensive incomes -51,979.20 277,987.96 226,008.76
Subtotal of (I) and (II) -51,979.20 316,358,532.13 277,987.96 34,005,184.87 350,589,725.76
(III) Capital paid in and reduced by
5,373,251.88 436,696.45 5,809,948.33
owners
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
1. Capital paid in by owners
2. Amounts of share-based
5,373,251.88 436,696.45 5,809,948.33
payments recognized in owners’ equity
3. Others
(IV) Profit distribution -189,746,329.20 -189,746,329.20
1. Appropriations to surplus
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-189,746,329.20 -189,746,329.20
shareholders)
4. Other
(V) Internal carry-forward of owners’
equity
1. New increase of capital (or share
capital) from capital public reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
losses
4. Other
(VI) Specific reserve
1. Withdrawn for the period
2. Used in the period
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(VII) Other
IV. Closing balance 632,487,764.00 1,134,752,577.59 290,958,368.49 1,986,192,134.05 -3,281,725.80 659,873,612.24 4,700,982,730.57
Jan.-Jun. 2013
Unit: RMB Yuan
Jan.-Jun. 2013
Equity attributable to owners of the Company
Item Total owners’
Less: General
Paid-up capital Specific Minority interests
Capital reserve treasury Surplus reserve risk Retained profit Others equity
(or share capital) reserve
stock reserve
I. Balance at the end of the previous
632,487,764.00 1,129,409,313.71 270,617,248.93 1,656,317,300.32 -2,621,131.09 564,332,580.26 4,250,543,076.13
year
Add: retrospective adjustment due to
business combination under the same
control
Add: change of accounting policy
Correction of errors in previous
periods
Other
II. Balance at the beginning of the year 632,487,764.00 1,129,409,313.71 270,617,248.93 1,656,317,300.32 -2,621,131.09 564,332,580.26 4,250,543,076.13
III. Increase/ decrease in the period (“-”
21,991.20 20,341,119.56 203,262,630.78 -938,582.67 61,099,150.66 283,786,309.53
means decrease)
(I) Net profit 413,350,079.54 61,407,620.25 474,757,699.79
(II) Other comprehensive incomes 21,991.20 -938,582.67 -916,591.47
Subtotal of (I) and (II) 21,991.20 413,350,079.54 -938,582.67 61,407,620.25 473,841,108.32
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(III) Capital paid in and reduced by
-308,469.59 -308,469.59
owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’ equity
3. Others -308,469.59 -308,469.59
(IV) Profit distribution 20,341,119.56 -210,087,448.76 -189,746,329.20
1. Appropriations to surplus
20,341,119.56 -20,341,119.56
reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
-189,746,329.20 -189,746,329.20
losses
4. Other
(V) Internal carry-forward of owners’
equity
1. New increase of capital (or share
capital) from capital public reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
losses
4. Other
(VI) Specific reserve
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
1. Withdrawn for the period
2. Used in the period
(VII) Other
IV. Closing balance 632,487,764.00 1,129,431,304.91 290,958,368.49 1,859,579,931.10 -3,559,713.76 625,431,730.92 4,534,329,385.66
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng Chief of the accounting division: Zhong Fangliu
8. Statement of changes in owners’ equity of the Company
Prepared by Wuxi Little Swan Company Limited
Jan.-Jun. 2014
Unit: RMB Yuan
Jan.-Jun. 2014
Item Paid-up capital (or Less: treasury General risk
Capital reserve Specific reserve Surplus reserve Retained profit Total owners’ equity
share capital) stock reserve
I. Balance at the end of the previous
632,487,764.00 1,291,483,360.14 278,308,224.59 1,702,750,823.87 3,905,030,172.60
year
Add: change of accounting policy
Correction of errors in previous
periods
Other
II. Balance at the beginning of the year 632,487,764.00 1,291,483,360.14 278,308,224.59 1,702,750,823.87 3,905,030,172.60
III. Increase/ decrease in the period (“-”
4,286,369.13 37,379,629.10 41,665,998.23
means decrease)
(I) Net profit 227,125,958.30 227,125,958.30
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(II) Other comprehensive incomes -51,979.20 -51,979.20
Subtotal of (I) and (II) -51,979.20 227,125,958.29 227,073,979.09
(III) Capital paid in and reduced by
4,338,348.33 4,338,348.33
owners
1. Capital paid in by owners
2. Amounts of share-based
4,338,348.33 4,338,348.33
payments recognized in owners’ equity
3. Others
(IV) Profit distribution -189,746,329.20 -189,746,329.20
1. Appropriations to surplus
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-189,746,329.20 -189,746,329.20
shareholders)
4. Other
(V) Internal carry-forward of owners’
equity
1. New increase of capital (or share
capital) from capital public reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
losses
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
4. Other
(VI) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VII) Other
IV. Closing balance 632,487,764.00 1,295,769,729.27 278,308,224.59 1,740,130,452.97 3,946,696,170.83
Jan.-Jun. 2013
Unit: RMB Yuan
Jan.-Jun. 2013
Item Paid-up capital (or Less: treasury General risk
Capital reserve Specific reserve Surplus reserve Retained profit Total owners’ equity
share capital) stock reserve
I. Balance at the end of the previous
632,487,764.00 1,291,461,368.94 257,967,105.03 1,709,427,076.99 3,891,343,314.96
year
Add: change of accounting policy
Correction of errors in previous
periods
Other
II. Balance at the beginning of the year 632,487,764.00 1,291,461,368.94 257,967,105.03 1,709,427,076.99 3,891,343,314.96
III. Increase/ decrease in the period (“-”
21,991.20 20,341,119.56 -6,676,253.12 13,686,857.64
means decrease)
(I) Net profit 203,411,195.64 203,411,195.64
(II) Other comprehensive incomes 21,991.20 21,991.20
Subtotal of (I) and (II) 21,991.20 203,411,195.64 203,433,186.84
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(III) Capital paid in and reduced by
owners
1. Capital paid in by owners
2. Amounts of share-based
payments recognized in owners’ equity
3. Others
(IV) Profit distribution 20,341,119.56 -210,087,448.76 -189,746,329.20
1. Appropriations to surplus
20,341,119.56 -20,341,119.56
reserves
2. Appropriations to general risk
provisions
3. Appropriations to owners (or
-189,746,329.20 -189,746,329.20
shareholders)
4. Other
(V) Internal carry-forward of owners’
equity
1. New increase of capital (or share
capital) from capital public reserves
2. New increase of capital (or share
capital) from surplus reserves
3. Surplus reserves for making up
losses
4. Other
(VI) Specific reserve
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
1. Withdrawn for the period
2. Used in the period
(VII) Other
IV. Closing balance 632,487,764.00 1,291,483,360.14 278,308,224.59 1,702,750,823.87 3,905,030,172.60
Legal representative: Fang Hongbo Person-in-charge of the accounting work: Zhang Zhaofeng Chief of the accounting division: Zhong Fangliu
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(III) Company profile
Wuxi Little Swan Company Ltd. was founded as an oriented-collection company limited with the approval of Su-Ti-Gai-Sheng
(1993) No. 253 document from Economic Reform Commission of Jiangsu Province. Then the Company issued 70,000,000 shares of
B-share and transformed to a state-collectively–owned enterprise with the approval of (1996) No. 52 document from Jiangsu
Province of the People’s Republic of China (the “PRC”), Zheng-Wei-Fa (1996) No. 14 document from China Securities Regulatory
Commission of the State Council and Shen-Zheng-Ban-Han (1996) No. 4 from Shenzhen Municipal Securities Regulatory Office.
And the total raised fund from this issuance of B-share totaled RMB 310 million, and the Company was formally listed in Shenzhen
Stock Exchange on Jul. 1996 with the short form of stock as Little Swan B and stock code as 200418.
In Mar. 1997, the Company publicly issued 60,000,000 shares of RMB ordinary share (including 9,000,000 shares of staff-share) by
adopting the way of internet pricing with the approval of Zheng-Jian-Fa-Zi (1997) No. 55 from CSRC. And the total raised fund from
this issuance of A-share totaled RMB 720.83 million, and the Company was formally listed in Shenzhen Stock Exchange in Mar.
1997 with the short form of stock as Little Swan A and stock code as 000418.
The Company finished the Equity Division Reform Plan on 7 Aug. 2006: the Company’s A-share holders registered on the changing
date of equity ownership gained 2.5 shares of consideration share from un-tradable shareholders with their every ten shares of
tradable A-share. All un-tradable shareholders paid for shares consideration of shares totaling 18 million, of which they acquired
shares’ rights for trading.
The Company’s resolutions of Shareholders’ General Meeting for Y2007: the newly added registered capital was RMB 182,551,920,
adding five shares to every ten shares basing on the total share capital of 365,103,840 shares at the end of 2007, transferring the
public reserves to 182,551,920 shares with par value of RMB 1 per share, thus the added share capital totaled RMB 182,551,920.
According to the resolutions of the 4th Session of the Sixth Board of Directors and the 1st Provisional Shareholders General Meeting
in 2010, having approved by China Securities Regulatory Commission (SFC license [2010] 1577), the company launched directional
add-issuance of 84,832,004 A shares to buy 69.47% of the shares of Hefei Royalstar Washing Machine Manufacture Co., Ltd from
its shareholder Midea Electric Appliances Co., Ltd. Par value per share is RMB 1, and the issue price is RMB8.63 per share. This
add-issuance increased the share capital by RMB 84,832,004.
After approved by CSRC through [2013]1014 document, Midea Group had split off as well as consolidated and combined the
original controller GD Midea Holding on 18 Sep. 2013. After the consolidation and combination, Midea Group inherited and
undertook the whole rights and obligations of the whole assets and liabilities etc of GD Midea Holding as the reminder enterprise and
had finished the relevant registration procedures of shares transfer on 31 Dec. 2013.
As of 31 Dec. 2013, registered capital of the company is RMB 632,487,764, among which the restricted exchange-traded A shares
are 3,689,890 shares, accounting for 0.583% of the whole shares; the unrestricted exchange-traded A shares are 437,762,002 shares,
accounting for 69.213%; and the unrestricted exchange-traded B shares are 191,035,872 shares, account for 30.204% of the whole
shares.
Registered Address: No. 18, Changjiang South Road, National High-tech Industrial Development Zone, Wuxi
Office Address: No. 18, Changjiang South Road, Wuxi, Jiangsu Province
Structure of the company: Share-holding Company
The Company belongs to household appliances so the main business scope is as follows: manufacture and sales as well as after-sale
service of household appliances, industrial ceramics, environmental dry-cleaning equipment, cleaning mechanical equipment,
subsequent finishing equipment and accessory; cleaning service; machinery processing; import and export business of “Little Swan”
or agent products and technologies (excluding the products or technology restricted to operate, export or import in China); technical
service for household appliances; contracting foreign engineering in international bidding (operate with effective certificate)
Parent company: GD MIDEA HOLDING CO.,LTD.
Ultimate controller: Mr. He Xiangjian
The financial statements were approved and authorized for issue by the board of directors on the date of 7 Aug. 2014.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
IV. Main accounting policies, accounting estimates and corrections of prior accounting errors
1. Preparation basis of the financial statements
The company recognizes and measures transactions occurred according to Chinese Accounting Standards – Basic standard and other
related accounting standards, prepares the financial statements based on accrual accounting and the underlying assumption of going
concern.
2. Statement of compliance with Enterprise accounting standards
The financial statements of the company comply with the requirements of Accounting Standards; the company's financial position,
operating results, cash flows and other relevant information are truly and completely disclosed in the financial statements.
3. Accounting period
The company's accounting year is from 1st January to 31st December for each calendar year.
4. Recording currency
The recording currency of the company is Renminbi
5. Accounting processing method of business combination under the same control and not under the same
control
(1) The business combinations which are under the same control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carrying
amount in the combined party on the combining date. As for the balance between the carrying amount of the net assets obtained by
the combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued), the additional
paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.
Relevant expenses because of the combination, including audit fee, evaluation fee, legal service charge, etc. shall be reckoned into
current profits and losses. But handing charges, commissions from issuing equity securities or bonds because of the Company
combination shall be reckon into shareholder’s equities or initial measurement cost of liabilities,
(2) The business combinations which are not under the same control
The acquirer shall recognize the initial cost of combination under the following principles:
When business combination is achieved through a single exchange transaction, the cost of a business combination is the aggregate of
the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in
exchange for control of the acquiree; For the business combination involved more than one exchange transaction, the cost of the
combination is the aggregate cost of the individual transactions; All direct expenses related to the combination paid by the acquirer,
including the auditor fee, evaluation expense, legal service expense, etc will be recorded into the profit and loss of
the current period.
The acquirer shall recognize the difference that the combination costs are over the fair value of the identifiable net assets obtained
from acquiree as goodwill; if the combination costs are less than the fair value of the identifiable net assets obtained from acquiree,
the acquirer shall reexamine the measurement of the fair values of the identifiable assets, liabilities and contingent liabilities obtained
from the acquiree as well as the combination costs; and then after the reexamination, the result is still the same, the difference shall
be recorded in the profit and loss of the current period.
6. Preparation method of consolidated financial statements
(1) Preparation methods for consolidated financial statements
The combination scope of the consolidated financial statement will be determined on the basis of the actual control.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
The consolidated financial statements will be subject to the No. 33 Enterprise Accounting Standards –Consolidated Financial
Statement. In preparing the consolidated financial statements, all key accounts and transactions between the company and
subsidiaries, subsidiaries and subsidiaries will be offset. The net assets of merged subsidiaries that are attributable to the minority of
shareholder equities will be separately listed in the shareholder equities of consolidated financial statements
In case the accounting policies and accounting periods of subsidiaries differ from those of parent company, the financial statements
of subsidiaries will be adjusted.
For those subsidiary acquired not under the same control, the Company has made relevant adjustment in the subsidiary’ financial
statement according to the fair value of identifiable net assets; for those subsidiary acquired under the same control, when preparing
the consolidated financial statements, the reporting subject after combination is considered to operate since the ultimate controller
carried out control, and adjusted the opening balance of consolidated balance sheet as well as the relevant items in the consolidated
statements.
7. Recognition criterion of cash and cash equivalent
For the purposes of the cash flow statement, cash refers to all cash in hand and all deposits which are readily available for payment.
Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
8. Foreign currency transactions and translations
(1) Foreign currency
All foreign currency transactions during the period have been translated in to RMB at the spot exchange rate issued by The People’s
Bank of China on the transaction date. The foreign currency conversions and any transactions involved foreign currency conversions
have been translated in to RMB at the actually used exchange rate during the transaction process.
On the balance sheet date, the company treats the foreign currency monetary items and foreign currency non-monetary items
according to the following provisions:
The foreign currency monetary assets and liabilities items have been translated at the spot exchange rate issued by The People’s Bank
of China on the balance sheet date. The exchange difference arising from the difference between the spot exchange rate on the
balance sheet date and the spot exchange rate at the time of initial recognition shall be recorded in the exchange difference in the
current period. Of which, the exchange difference arising from those foreign currency borrowings specifically for the construction of
fixed assets shall be treated by the principle for capitalization of borrowing cost; and the exchange difference happened during the
handling period shall be recorded as handling charges; other cost shall be recorded as current financial expenses.
A foreign currency non-monetary item measured at the historical costs shall still be translated at the spot exchange rate by The
People’s Bank of China on the transaction date, of which the amount of functional currency shall not be changed; the foreign
currency non-monetary items measured at their fair values have been translated at the spot exchange rate issued by The People’s
Bank of China on the recognition date for the fair value, the exchange difference thereupon shall be considered as changes in fair
value, and recorded into gains and losses of the current period.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheet about the overseas businesses of the company have been translated at the spot
exchange rate on the balance sheet date. Among the owner’s equity items, except for the items as “undistributed profits”, other items
have been translated at the spot exchange rate at the time when they are incurred. The income and expense items in the profit
statement have been translated at an exchange rate which is approximate to the spot exchange rate of the transaction date. The
differences arising from the translation of foreign currency financial statements in compliance with the aforesaid items have been
presented separately under the owner’s equities of the balance sheets. Foreign currency cash flows and the cash flows of foreign
subsidiaries have been translated at an exchange rate which is approximate to the spot exchange rate at the time when the cash flows
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
incurred. The differences arising from fluctuations in exchange have been presented separately in the statement of cash flows.
9. Financial instruments
(1) Classification of financial assets
Based on the investment purpose and economic essence, the company classifies the financial assets into the following four categories:
transactional financial assets, financial assets available for sale, account receivables and held-to-maturity investments.
The company has divided its financial liabilities into one category measured at fair value with variations accounted into current profit
and loss and another category measured at the post-amortization costs.
(2) Recognition basis and measurements for financial instruments
Transactional financial assets are measured at fair value with variations of fair value accounted into current income account; financial
assets available for sale are measured at fair value with the variations accounted into shareholders' equity; account receivables and
held-to-maturity investments are measured at the post-amortization costs.
(3) Recognition and Accounting Method for Transfer of Financial Assets
The term "transfer of a financial asset" refers to the company’s (the transferor's) transferring or delivering a financial asset to a party
other than the issuer of the financial asset (the transferee). Transfer of a financial asset could be the whole asset or part of it. It
includes the following two cases:
The Company transfers the right to another party for receiving the cash flow of the financial asset; and;
The Company transfers the financial asset to another party, but maintains the right to receive the cash flow of the financial asset and
undertakes the obligation to pay the cash flow it receives to the final recipient.
Where the Company has transferred nearly all of the risks and rewards related to the ownership of the financial asset or part of this
asset to the transferee, it shall stop recognizing the financial asset or part of this asset. The difference arising from the sum of
consideration received from the transfer and the book value of this asset should be accounted into the profit and loss. If it retained
nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing all or part of the
financial asset, and the consideration received shall be recorded as the financial liability.
Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of a financial asset, but it
does not give up its control over the financial asset, it shall, according to the extent of its continuous involvement in the transferred
financial asset, recognize the related financial asset and recognize the relevant liability accordingly.
(4) Recognition Conditions for Termination of Financial Liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial liability
be terminated in all or partly.
(5) Recognition of Financial Assets and Financial Liabilities
In the active market, the quoted prices of the Company for the financial assets it holds or the financial liabilities it plans to assume
shall be the present actual offer; where there is no available offer or charge for a financial asset or financial liability, , the enterprise
shall adopt the market quoted price of the latest transaction or market quoted price after adjustment in latest transaction to determine
the fair value of the said financial asset or financial liability, except for there is clear evidence proving that the said market quoted
price is not fair value.
Where there is no active market for a financial instrument, the enterprise concerned shall adopt value appraisal techniques to
determine its fair value. The value appraisal techniques mainly include the prices adopted by the parties, who are familiar with the
condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other financial
instruments of the same essential nature.
(6) Withdrawal of Impairment Provision for Financial Assets (excluding Accounts Receivable)
The Company shall carry out an inspection, on the balance sheet date, on the carrying amount of the financial assets other than
transactional financial assets. Where there is any objective evidence proving that such financial asset has been impaired, an
impairment provision shall be made. An impairment test shall be made on the financial assets with significant single amounts. If any
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
objective evidence shows that it has been impaired, the impairment-related losses shall be recognized and shall be recorded into the
profits and losses of the current period. With regard to the financial assets with insignificant single amounts, an independent
impairment test may be carried out, or they may be included in a combination of financial assets with similar credit risk features so as
to carry out an impairment-related test.
The expression "objective evidence proving that the financial asset has been impaired" refers to the actually incurred events which,
after the financial asset is initially recognized, have an impact on the predicted future cash flow of the said financial asset that can be
reliably measured by the enterprise.
The objective evidences that can prove the impairment of a financial asset shall include:
A serious financial difficulty occurs to the issuer or debtor;
The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of interests or the principal,
etc.;
The creditor makes any concession to the debtor which is in financial difficulties due to economic or legal factors, etc.
The debtor will probably become bankrupt or carry out other financial reorganizations;
The financial asset can no longer continue to be traded in the active market due to serious financial difficulties of the issuer;
It is impossible to identify whether the cash flow of a certain asset within a certain combination of financial assets has decreased or
not. But after making an overall appraisal according to the public data available, it is found that the predicted future cash flow of the
said combination of financial assets has indeed decreased since it was initially recognized and such decrease can be measured, for
example, the ability of the debtor of the said combination of financial assets worsens gradually, the unemployment rate of the country
or region where the debtor is situated increases, the prices of the region where the guaranty is situated are obviously dropping, or the
industrial sector concerned is in slump, etc.;
Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc. wherein the debtor
operates its business, which makes the investor of an equity instrument unable to take back its investment;
Where the fair value of the equity instrument investment drops significantly or not contemporarily;
Other objective evidences showing the impairment of the financial asset.
Where a financial asset measured on the basis of post-amortization costs is impaired, the impairment losses shall be the balance
between the carrying amount of the said financial asset and the current value of the predicted future cash flow discounted at the
original actual rate.
Where any financial asset measured on the basis of post-amortization costs is recognized as having suffered from any impairment
loss, if there is any objective evidence proving that the value of the said financial asset has been restored, and it is objectively related
to the events that occur after such loss is recognized, the impairment-related losses as originally recognized shall be reversed and be
recorded into the profits and losses of the current period. However, the reversed carrying amount shall not be any more than the
post-amortization costs of the said financial asset on the day of reverse under the assumption that no provision is made for the
impairment.
Where an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of the fair value of the
owner’s equity which was directly included shall be transferred out and recorded into the profits and losses of the current period.
10. Recognition and Withdrawal Method for Bad-debt Provisions for Accounts Receivable
(1) Provisions for Bad-debt Accounts Receivable with a significant single amount
The accounts receivable whose individual amount accounts for over 10%
Definition or amount criteria for an account (including 10%) of accounts receivable balance at the end of this period or
receivable with a significant single amount amount of the individual account receivable which is greater than RMB 10
millions (and including 10 millions); the other receivable whose individual
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
amount accounts for over 10% (including 10%) of other receivables balance at
the end of this period or amount of the individual other receivable which is
greater than RMB 5 millions (and including 5 millions).
For the individually significant receivables, the impairment test is carried on
Making individual bad-debt provisions for accounts individually; the Company withdraws provision for impairment loss for the
receivable with a significant single amount amount which is measured as the difference between the asset's carrying
amount and the present value of estimated future cash flows.
(2) Accounts receivable for which bad-debt provisions are made on the group basis
Group name Withdraw method Basis for recognition of group
As for account receivables with a significant single amount, together
with single testing account receivables before impairment, shall be
Group 1: Aging group Aging analysis divided into several groups. Calculation shall be made according to the
balance of the account receivables groups in the period-end to define
impairment loss and withdraw provision for bad debts.
Group 2: Accounts receivable within
Other methods Accounts receivable within the scope of consolidated statements
the scope of consolidated statements
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Aging Provision rate for Accounts Receivable (%) Provision rate for Other Receivables (%)
Within 1 year (including 1 year) 5.00% 5.00%
From 1-2 years 10.00% 10.00%
From 2-3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
Over 5 years 100.00% 100.00%
In the groups, those adopting balance percentage method to withdraw bad debt provision:
□Applicable √Inapplicable
In the groups, those adopting other methods to withdraw bad debt provision:
□Applicable √Inapplicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
independently
Account receivable with big credit risk because of company liquidation of clients, litigation
Reason for bad debt provision Account receivable with an aging over 3 years (deductive significant single account
receivable).
The bad-debt provision is recognized impairment loss and made according to the difference
Withdrawal method between the present value of the account’s future cash flows and the account’s carrying
amount.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
11. Inventory
(1) Category of Inventory
Inventories are those under the Company’s possession for the purpose of selling, in the process of production, or materials and goods
used in production process or providing of services, including raw materials, low-value consumables, and products in process, stock
merchandises (finished goods) and consigned goods.
(2) Pricing method for distributed inventories
Method: Weighted average method
Inventories are measured at cost when procured, including purchase cost, processing cost, and other costs. Actual costs are
recognized at weight average when delivered.
(3) Recognition basis of net realizable value of inventories and withdrawal method for impairment
provision of inventories
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the net realizable value. At
overall verification of inventories at the end of year, when the net realizable value is lower than the cost, provisions for impairment of
inventories shall be drawn. Provisions for impairment of inventories shall be accounted according to the difference between the cost
of individual inventory items and the net realizable value. Including: for inventories such as finished products, goods or materials
which will be directly sold, in the normal operation, the realizable net value will be the balance of estimated selling price less sales
expenses and relative taxations; For those inventories need further processing, in the normal operation, the realizable net value will
be the balance of estimated sales price less costs to make it finished, less estimated sales expenses, and less relative taxation. On the
balance sheet date, inventories with contract prices will be determined for realizable value separately from those without contract
prices. Where certain items of inventory have similar purposes or end uses and relate to the same product line produced and marketed
in the same geographical area, and therefore cannot be practicably evaluated separately from other items in that product line, costs
and net realizable values of those items may be determined on an aggregate basis. For large quantity and low value items of
inventories, cost and net realizable value are determined based on categories of inventories.
(4) Inventory system of inventories
Inventory system: Perpetual inventory system
The Company uses perpetual inventory system. Inventories are checked periodically and the gains and losses from inventory
checking are accounted into current gain/loss account.
(5) Amortization method of low-value consumption goods and packages
Low-value consumption goods
Amortization method: one time method
Packages
Amortization method: one time method
12. Long-term equity investment
(1) Recognition for long-term equity investment
The initial cost of the long-term equity investment formed in the merger of the Company shall be recognized in accordance with the
ways of gaining:
① For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the book value of the
owner's equity of the merged enterprise as the initial investment cost of the long-term equity investment; the difference between the
acquisition cost and the initial investment cost of the long-term equity investment shall offset against the capital reserve. If the capital
reserve is insufficient to dilute, the retained earnings shall be adjusted. Relevant expenses because of the combination, including
audit fee, evaluation fee, legal service charge, etc. shall be reckoned into current profits and losses. But handing charges,
commissions from issuing equity securities or bonds because of the Company combination shall be reckon into shareholder’s equities
or initial measurement cost of liabilities.
② For the merger of enterprises not under the same control, the initial cost of long-term equity investment is the fair value of assets
paid, equity bonds issued, or liabilities undertaken by the Company. The identifiable assets and liabilities undertaken (including
contingent liabilities) of merged party shall be measured by the fair value without considering the amount attributable to minority
interest. Where the cost of a business combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
assets, the difference shall be recognized as goodwill. Where the cost of combination is less than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets, after reassessment, the difference shall be recognized in consolidated income statement.
Relevant expenses because of the combination, including audit fee, evaluation fee, legal service charge, etc. shall be reckoned into
current profits and losses. But handing charges, commissions from issuing equity securities or bonds because of the Company
combination shall be reckon into shareholder’s equities or initial measurement cost of liabilities.
③ The initial cost of a long-term equity investment obtained by other ways
A. The initial cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair value of the
equity securities issued.
B. The initial cost of a long-term equity investment of an investor shall be the value stipulated in the investment contract or
agreement except the unfair value stipulated in the contract or agreement.
C. Long-term equity investment is acquired by exchange of non-monetary assets, if this transaction has commercial substance, the
fair values of these swap-out assets will be deemed as the initial investment cost of swap-in long-term equity investment; if the
non-currency asset exchange does not have commercial substance, the carrying amount of these swap-out assets will be deemed as
the initial investment cost of swap-in long-term equity investment.
F. The initial cost of a long-term equity investment obtained by recombination of liabilities shall be recognized as the fair value of the
long-tern equity investment.
(2) Subsequent measurement and recognition of gains and losses
① Adopting cost method for investment in subsidiaries
The subsidiary is the equity investment held by the Company, on which the Company can carry out control. If the Company holds
more than 50% equity of an entity, or the Company holds less than 50% equity but has actual control on such entity, then the entity
can be considered as the subsidiary of the Company.
② Adopting equity method for investment on joint ventures or associated enterprises
Joint venture is the equity investment held by the Company, which can carry out joint control over an invested entity with other joint
ventures; associated enterprise is the equity investment held by the Company, which can have significant influence over an invested
entity. If the Company held 20% to 50% equity of an entity, and have not actual control on such entity, or the Company holds less
than 20% equity of the entity but have not significant influence on such entity, then the entity will be the Company’s joint venture or
associated enterprise.
The investing enterprise shall, on the ground of the fair value of all identifiable assets of the invested entity when it obtains the
investment, recognize the attributable shares of the net profits and losses of the invested entity after it adjusts the net profits of the
invested entity.
If the accounting policies and accounting periods adopted by the invested entity are different from those adopted by the investing
enterprise, an adjustment shall be made to the financial statements of the invested entity in accordance with the accounting policies
and accounting periods of the Company and recognize the investment profits or losses.
Where any change is made to the owner's equity other than the net profits and losses of the invested entity, the book value of the
long-term equity investment shall be adjusted and be included in the owner's equity.
③ The long-term equity investment existing no control, joint control or significant influence by the Company
The long-term equity investment without quotation in the active market and its fair value can’t be reliably measured, which shall be
measured by cost method.
The long-term equity investment with quotation in the active market or its fair value can be reliably measured, which is listed under
the item of available-for-sale financial assets and measured by fair value, whose change in fair value shall be recorded into owners’
equity.
(3) Recognition basis of jointly control and significant influence in invested units
Common control to investee is the mutual control of investors over an economic action basing on a contract, only effective when it is
agreed by all of the investors who have the share of control on the financial and business control power.
Significant influences to investee mean an entity has the power to participate in the decision making of another, but cannot dominate
individually or jointly with other parties.
(4) Impairment test method and withdrawal method for impairment provision
At period-end, if evidence showing that impairment occurred on the long-term equity investment, the recoverable amount shall be
estimated. When the recoverable amount of the long-term equity investment is lower than the book value, asset impairment provision
should be withdrawn in accordance with the difference between the recoverable amount and the book value is recognized.
As for long-term equity investment without quotation in the active market and its fair value can’t be reliably measured, the balance of
its carrying amount lower than the current value of the future cash flow of similar financial assets capitalized according to the returns
ratio of the market at the same time shall be recognized as impairment losses and be recorded into the profits and losses of the current
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
period. Once impairment loss of the long-term equity investment, excluding available-for-sale financial assets, is recognized, it will
not be switched back in following fiscal terms, while the impairment loss of available-for-sale financial assets can be switched back,
while the said impairment provision can be written back through equity accounts.
13. Investment real estate
Investment real estate is measured according to the initial cost. Cost of real estate purchased from outside includes purchasing price,
tax, and other expenses directly related to the real estate; cost of real estate constructed by the Company itself is constructed by the
essential costs to make the real estate usable. Investment properties invested by investors are booked at the value according to the
investment contract, whereas when the contract value is not fairly acceptable, it will be booked at the fair value.
The company employs the cost mode to make a follow-up measurement on the investment properties, while employs the straight
method to calculate the depreciation and amortization during the estimated useful life. And the house property is depreciated by 20
years (adopt the lower one between the legal useful life and the predicted useful life), while the landed property is amortized by 50
years (legal useful life).
The withdrawal method of the impairment provision for investment properties is in accordance with the relevant withdrawal method
of fixed assets.
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for
operation & management, and have more than one year of service life, whose relevant economic interest is likely to flow into the
Company. Except for the fixed assets which is still using after being fully depreciated, the Company withdraws depreciation of all the
fixed assets with a method of straight-line depreciation.
(2) Recognition basis and pricing method for fixed assets acquired under finance lease
Where a lease of fixed asset satisfies one or more of the following criteria, it shall be recognized as a finance lease:
① The ownership of the leased asset is transferred to the lessee when the term of lease expires;
② The Company has the option to buy the leased asset at a price which is expected to be far lower than the fair value of the leased
asset at the date when the option becomes exercisable. Thus, on the lease beginning date, it can be reasonably determined that the
option will be exercised;
③ Even if the ownership of the asset is not transferred, the lease term covers the major part of the use life of the leased asset;
④ In the case of the lessee, the present value of the minimum lease payments on the lease beginning date amounts to substantially all
of the fair value of the leased asset on the lease beginning date;
⑤ The leased assets are of a specialized nature that only the Company can use them without making major modifications. For the
fixed asset leased by financial lease, on the lease beginning date, the Company shall record the lower one of the fair value of the
leased asset and the present value of the minimum lease payments on the lease beginning date as the entering value in an account,
recognize the amount of the minimum lease payments as the entering value in an account of long-term account payable, and treat the
balance between the recorded amount of the leased asset and the long-term account payable as unrecognized financing charges. The
initial direct costs such as commissions, attorney's fees and traveling expenses, stamp duties directly attributable to the leased item
incurred during the process of lease negotiating and signing the leasing agreement shall be recorded in the asset value of the current
period. The unrecognized financing charge shall be amortized to each period during the lease term at the actual rate.
The depreciation method of fixed assets acquired under finance lease is consistent with that for the Company’s fixed assets. If the
Company can reasonably confirm that it will obtain the ownership of leased asset at the end of lease term, the leased asset shall be
depreciated during the useful life of the leased asset. If the Company cannot reasonably confirm that it will obtain the ownership of
leased asset at the end of lease term, the leased asset shall be depreciated during shorter of the useful life of the leased asset and the
lease term.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(3) Depreciation method of various fixed assets
Categories Estimated useful life (years) Residual value (%) Annual depreciation rate (%)
Houses & buildings 20-35 years 5.00% 2.71-4.75%
Machineries 10-15 year 5.00% 6.33-9.50%
Electronic equipment 3-5 year 5.00% 19%-31.67%
Vehicles 5 year 5.00% 19%
(4) Impairment test method and withdrawal method for impairment provision of fixed assets
The Company checks the fixed asset at the period end, if it has the following situations, then the Company shall check the
recoverable amount to judge whether such asset has been impaired. Where its recoverable amount is lower than its book value, the
Company shall, basing on the difference between the recoverable amount and the relevant book value, make the provision for the
impairment of the assets. When withdrawing the impairment provision for a single asset, and if it is difficult to do so, it shall
determine the recoverable amount of the group assets on the basis of the asset group to which the asset belongs. Once the impairment
loss was recognized, it will not be switched back in coming fiscal terms.
① The current market price of assets falls, and its decrease is obviously higher than the expected drop over time or due to the normal
use;
② The assets have become obsolete or have been damaged substantially;
③ The expected usage mode of an asset has significant adverse change, such as the asset becomes idle, or the Company plans to
discontinue or to reorganize the business of the asset, or dispose of an asset before the previously expected date, etc., which cause
adverse impact on the Company;
④ The economic, technological or legal environment in which the enterprise operates, or the market where the assets is situated will
have any significant change in the current period or in the near future, which will cause adverse impact on the enterprise;
⑤ The market interest rate or any other market investment return rate at the same period has risen in the current period, and thus the
discount rate of the enterprise for calculating the expected future cash flow of the assets will be affected, which will result in great
decline of the recoverable amount of the assets;
⑥ Any evidence in the internal report of the enterprise shows that the economic performance of the assets have been or will be lower
than the expected performance, for example, the net cash flow created by assets or the operating profit (or loss) realized is lower
(higher) than the excepted amount, etc.;
⑦ Other evidence indicates that the impairment of assets has probably occurred.
15. Construction in Progress
(1) Categories of construction in process
Construction in progress is accounted according to projects approval classification and defined project costs in compliance with
actual expenses. Self-operating project is calculated according to direct materials, direct wages and direct construction fees, etc;
contract project is calculated according to payable project costs; plant engineering is calculated according to the value of the
installation equipment, installation fee and project test run. Costs of construction in progress contains borrowing costs which should
be capitalized and exchange gains and losses.
(2) Standards and time of transferring construction in process into fixed asset
Construction in progress is transferred to fixed assets by project budget, construction cost or actual project cost when the project is
substantially ready for its intended use, and made provision for depreciation from the next month. Then the Company shall
adjustment on the difference caused by the original value of fixed assets after finishing the final account.
(3) Impairment test method and withdrawal method for impairment provision of construction in process
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At the end of the year, the Company shall assess the overall construction in progress, if there is evidence providing that the value of
project was impaired, the Company shall estate the recoverable amount, and make the provision for the impairment loss in
accordance with the balance of the project’s recoverable amount lower than its book value. Once any loss of asset impairment is
recognized, it shall not be switched back in the future accounting periods.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
The borrowing costs shall include interest on borrowings, amortization of discounts or premiums on borrowings, ancillary expenses,
and exchange balance on foreign currency borrowings. The Company’s borrowing costs, caused by occupying the special borrowings
or general borrowings to gain the fixed assets, investment properties, and inventories that need one year or more than one year’s
acquisition or construction, shall be capitalized, and recorded in the cost of relevant assets. Other borrowing costs shall be recognized
as expense upon their occurrence, and recorded into current profits and losses. The relevant borrowing expenses start to be
capitalized when all of the followings are satisfied:
1 The capital expenditures have incurred;
2 The borrowing costs have incurred;
3 The acquisition and construction activities that are necessary to bring the asset to its expected usable condition have commenced.
(2) Capitalization period of borrowing costs
The borrowing costs caused by acquiring or constructing fixed assets, investment properties and inventories, which
meet the above capitalization conditions and happened before the assets reaching expected useful status or available-for-sale status,
shall be recorded into costs of assets. Capitalization of borrowing costs shall be suspended during periods in which the acquisition or
construction is interrupted abnormally, and the interruption period is three months or longer. These borrowing costs shall be
recognized directly in profit or loss during the current period until the acquisition or construction activities resume again;
Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed is substantially ready for its
intended use. Subsequent borrowing costs shall be directly recorded into current finance expense upon occurrence.
(3) Period for suspending capitalization of borrowing costs
Provided assets which meet the condition of capitalization in acquisition and construction or manufacture occur abnormal continuous
interruption over 3 months, capitalization of borrowing expenses shall be suspended. During the interruption period, borrowing
expenses are defined as costs reckoned into current gains and losses until the restart of assets acquisition and construction or
manufacture activities. Provided assets which meet the condition of capitalization in acquisition and construction or manufacture and
which reach the standard of expected usage stage or salable stage, capitalization of borrowing expenses shall continue.
Assets meet the condition of capitalization in acquisition and construction or manufacture and reach the standard of expected usage
stage or salable stage, capitalization of borrowing expenses shall suspended.
(4) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring & constructing or producing a qualifying asset, the
to-be-capitalized amount of interests shall be determined in light of the actual interests incurred of the specially borrowed loan at the
present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary
investment.
To the extent that funds are borrowed generally and used for the purpose of acquiring & constructing or producing a qualifying asset,
the Company shall calculate and determine the to-be-capitalized amount of interest from the general borrowing by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the
capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted
average interest rate of the general borrowing.
17. Intangible assets
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(1) Pricing method of intangible assets
The intangible assets refer to the land-use right, patent, non-patent technology and software.
Intangible assets purchased are booked at the actual cost to purchase and relative expenses.
Intangible assets inputted by investors are booked at the contract or agreement price, but if the contract or agreement price is not
fairly acceptable, it will be booked at fair value.
Intangible assets is acquired by exchange of non-monetary assets, if this transaction has commercial substance, the fair values of
these swap-out assets will be deemed as the initial investment cost of intangible assets; if the non-currency asset exchange does not
have commercial substance, the carrying amount of these swap-out assets will be deemed as the initial investment cost of intangible
assets.
Intangible asset is acquired by debt reorganization, which shall be recognized by the fair value.
Expenditures for the self-researched and developed intangible asset incurred during its research phase shall be recognized as current
profits and losses upon its occurrence. Expenditures incurred during the development phase shall be recognized as an intangible asset
if, and only if, the Company can demonstrate all of the following:
① It is feasible technically to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ There is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the
intangible assets itself
④ It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of
sufficient technologies, financial resources and other resources;
⑤ The development expenditures of the intangible assets can be reliably measured.
⑥ The use of the intangible products cycle is more than 1 year.
(2) Estimated useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land usage right Beneficial years Straight-line method
Years stimulated in contract or beneficial
Non-patented technology Straight-line method
years
(3) Withdrawal of impairment provision of intangible assets
The Company shall carry out impairment test on intangible assets without certain useful life, such as trade mark, at year-end. And the
Company shall estimate its recoverable amount and make the provision for impairment loss of such intangible asset by the balance of
the recoverable amount lower than its book value.
The Company shall check the other intangible assets at the year-end, where there is any evidence indicating a possible impairment of
assets, the Company shall estimate the recoverable amount, and make provision for impairment losses of such intangible asset in
accordance with the balance of the recoverable amount lower than the book value. Once intangible asset impairment losses are
recognized, they will not be written back in successive fiscal periods.
① It has been replaced by other new technologies, and significantly decreased its ability to create economic interests for the
company;
② The price fell sharply in current period, and is not expected to increase in its remaining amortization period;
③ Over the time limit of legal protection, but still has some use-value；
Other facts that prove the assets actually impaired.
(4) Criteria of dividing the research phase and development phase of internal R&D project
The term “research” refers to undertaking of collecting relevant materials, conducting market research on the basis of planned
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
investigation, which means the research project has received approval from the Board of Directors or relevant management level.
The term "development" refers to the application of research achievements and other knowledge to a certain plan or design, prior to
the commercial production or use, so as to produce any new material, device or product, or substantially improved material, device
and product.
(5) Calculation of the expenditures of internal R&D project
Expenditures of internal R&D project in researching stage shall be reckoned into current gains and losses; expenditures of internal
R&D project in developing stage which meet the conditions as following are referred to as intangible assets, otherwise it shall be
reckoned into current gains and losses:
① Completing the intangible asset in order to enable it to be used or sold or technically feasible;
② Having the intention to complete the intangible asset and use or sale;
③ The way intangible asset producing economic benefit, including providence of making the products produced by the intangible
asset or the intangible assets in the market. Intangible asset which is used internally shall be proved its feasibility;
④ having enough support from technology, financial resources and other resources to complete the development of the intangible
asset, and enabling to sale or use the intangible asset.
⑤ Expenditures of the intangible asset in developing stage can be definitely calculated.
The expenses which are reckoned into gains and losses in the period-begin are not longer defined as assets. Expenses which are
capitalized in developing stage shall be marked in balance sheet as developing expenditure, and transferred into intangible assets
when the project reaches the stage of usage.
18. Amortization method of long-term deferred expenses
The Company recognizes all expenses which have occurred during the period but shall be amortized beyond one year (excluding one
year), including expenses of molds and technical guide, etc. The Company amortizes long-term deferred expenses using straight-line
method according to relevant beneficial periods or its usage life if there are, otherwise, amortizes in five years.
19. Estimated liabilities
(1) Criteria of estimated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they are
recognized as estimated liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
(2) Measurement of estimated liabilities
Estimated liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility, and with
considerations to the relative risks, uncertainty, and periodic value of currency. When the periodic value of currency is with major
influence, then the best estimation will be determined at the discount of future cash outflow. The book value of estimated liability is
revised on the balance sheet date, and adjustment will be made to reflect current best estimation.
20. Share-based payment and equity instruments
(1) Categories of share-based payment
Share-based payment is divided into payment based on equity and cash.
(2) Recognition method of fair value of equity instruments
As for equity instrument such as option in active market, the Company determines its fair value in accordance to the offer in active
market. As for equity instrument such as option in inactive market, the Company determines its fair value by valuation technique,
including referring to the prices of the market trade used recently by all parties who know well of the situation and trade by voluntary,
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
referring to the recently fair value of other financial instruments which are essentially the same, discount cash flow method and
options pricing model etc.
(3) Recognition basis of the best estimate of the vested equity instruments
On every balance sheet date in the waiting period, the company shall reason out the best course to estimate according to the newly
information of the vested employee variation and revise the amounts of expected vested equity instruments. On vested days, the
amounts of final expected vested equity instruments shall comply with actual vested amounts.
21. Revenue
(1) Criteria for recognition time of revenue from sale of goods
When all of the following conditions are satisfied, the sales of goods are recognized as sales income according to the contract amount
received or receivable from the buyer:
① Main risks and rewards attached to the ownership of the goods have been transferred to the buyer;
② No succeeding power of administration or effective control is reserved which are usually attached to ownership;
③ Amount received can be reliably measured;
④ Related financial benefit may inflow to the Company;
⑤ Relative costs, occurred or will occur, can be reliably measured;
⑥ When collection of contract payment is by differed way, and practically with financing characters, sales income shall be
recognized at the fair value of the receivable contract amount.
(2) Recognition basis of revenue from transferring use rights of assets
Income is recognized when the financial benefit in connection with the demising of asset using rights was received and the amount
can be reliably measured.
(3) Recognition basis of revenue from rendering labor services
Revenue from rendering labor services can be determined only when the general revenues and costs of services can be definitely
calculated, economic benefits relating to trading can flow into the Company, the degree of the completion of labor services can be
determined.
(4) Recognition basis and method for the schedule of contracted project when recognizing the revenue from
providing labor services and construction contract by percentage-of-completion method
Labor services which begin and finish in the same accounting year shall be determined its revenues upon the completion of the
services; Labor services which begin and finish not in the same accounting year shall be determined its revenues by
percentage-of-completion method if the outcome of services can be reliably valued on the balance sheet date. The Company
measures the completion progress (percentage-of-completion) in accordance with the proportion of the costs incurred against the
estimated total costs.
22. Government grants
(1) Types
Government grant is monetary assets and non-monetary assets the Company gets from government for free, excluding capital
invested by government as owner. Government grants contain subsidiaries relating to assets and revenue.
(2) Accounting policy
Government grants that are obtained by enterprises used for purchase or construction, or forming the long-term assets by other ways
belongs to the government subsidies pertinent to assets; government subsides except those pertinent to assets belongs to the
government subsidies pertinent to income.
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within the useful lives of the
relevant assets, and included in the current profits and losses.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
The government subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances as follows:
① Those subsidies used for compensating the related future expenses or losses of the Company shall be recognized as deferred
income and shall included in the current profits and losses during the period when the relevant expenses are recognized;
② Those subsidies used for compensating the related expenses or losses incurred to the Company shall be directly included in the
current profits and losses
Government subsidies should be confirmed and measured according to the actual amount to the account when practically receiving
the accounts. Only when there is unambiguous evidence indicates the subsidy is appropriated according to the fixed quota standards
and there is unambiguous evidence indicates that it meet with the relevant conditions stipulated by financial support policy and is
estimated to receive the financial support funds, could confirm and measure it according to the amounts receivable.
23. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
Pursuant to the discrepancies between the book value of assets and liabilities and the tax basis, deferred income tax assets shall be
defined by applicable rate during the period of expected withdrawal of the assets or repayment of the liabilities. On the balance sheet
date, if enough evidences prove that the taxable income amounts that maybe probably obtained in the future periods may be used to
deduct the deductible temporary differences, they will be confirmed as the deferred income tax assets that have not been confirmed in
the previous accounting periods. On the balance sheet date, the book value of the deferred income tax assets would be re-checked. If
the taxable income amounts that may probably not be obtained in the future periods to deduct benefits of deferred income tax assets,
the book value of the deferred income tax assets shall be written down. When it is probable to gain enough taxable income amounts,
the write-downs shall be retrieved.
(2) Recognition basis of deferred income tax liabilities
Pursuant to the discrepancies between the book value of assets and liabilities and the tax basis, deferred income tax assets shall be
defined by applicable rate during the period of expected withdrawal of the assets or repayment of the liabilities.
24. Hedging accounting
The term " hedging" refers to one or more hedging instruments which are designated by the company for avoiding the risks of foreign
exchange, interest rate, commodity price, stock price, credit and etc., and which is expected to make the changes in fair value or cash
flow of hedging instrument(s) to offset all or part of the changes in the fair value or cash flow of the hedged item.
The "hedged items" refer to items which make the company faced with changes in fair value or cash flow and are designated as the
hedged objectives.
For a hedging which satisfies all the following conditions, the company will deal with it through the hedging accounting method.
① At the commencement of the hedging, the company shall specify the hedging relationship formally and prepare a formal written
document on the hedging relationship, risk management objectives and the strategies of hedging.
② The hedging expectation is highly efficient and meets the risk management strategy, which is confirmed for the hedging
relationship by the company at the very beginning.
③ For a cash flow hedging of forecast transaction, the forecast transaction shall be likely to occur and shall make the company faced
to the risk of changes in cash flow, which will ultimately affect the profits and losses.
④ The effectiveness of hedging can be reliably measured.
⑤ The hedging is highly effective in the accounting period in which the hedging relationship is designated.
25. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the reporting period?
√ Yes □ No
The withdrawal proportion of the bad debt provision of the creditor’s rights receivables and the accounting estimates of the
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
depreciation life of the fixed assets changed in the reporting period.
(1) Change of accounting estimates
Were the main accounting estimates changed during the reporting period?
√ Yes □ No
Specific explanation
Unit: RMB Yuan
The content and reasons of the changes of Name of the Influenced
Approval process
accounting estimates influenced report item amount
For maintain the consistency between the According to the relevant regulations of Securities
accounting policy and the accounting Law, Shenzhen Stock Exchange Listing Rules,
estimates of the controlling shareholders, Guidance No. 7 on the Information Disclosure
and for strengthen the anti-risk power of the Work of the Listed Companies of Shenzhen Stock
Company itself, the Company changed the Exchange—Accounting Policy and Accounting
withdrawal proportion of the bad debt Estimates Alternation and Articles of
Income statement
provision of the creditor’s rights receivables Associations, the alternation of the accounting
and the accounting estimates of the estimates had executed through reviewal and
depreciation life of the fixed assets approval by the Board of Directors and Board of
according to the relevant regulations of Supervisors of the Company and the Independent
Accounting Standards for Business Directors issued independent advice on the
Enterprises. matter.
For the details of the above accounting estimates changes, please refer to the announcement disclosed on www.cninfo.com.cn of the
Company on 7 Mar. 2014.
V. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
Balance of output tax of taxation revenue after
VAT 17%
deducting input tax.
Business tax Taxation revenue 5%
Urban maintenance and construction tax Payable circulating tax amount 7%
Corporate income tax Payable income tax amount 25% or 15%
Education Surcharge Payable circulating tax amount 5%
Flood Control Security Fund Operating revenue 0.1% or 0.06%
Levee fee Circulating tax amount 2%
The income tax rates adopted by each subsidiary and branch factory
2. Tax preference and official documents
The Company and its subsidiaries Hefei Media Washing Machine Co., Ltd., Wuxi Little Swan GE Co., Ltd., Wuxi Filin Electronics
72
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Co., Ltd. and Jingzhou Little Swan Sanjin Electrical Appliances Co., Ltd. got “High Technology Enterprises Certificate” respectively
in March 2009, November 2008, March 2009, May 2009 and November 2011 with certificate number respectively GR200932000077,
GR200834000011, GR200932000078, GR200932000397 and GR201142000211. The Company and its subsidiaries Hefei Media
Washing Machine Co., Ltd., Wuxi Little Swan GE Co., Ltd., Wuxi Filin Electronics Co., Ltd. have expired 3 years and passed the
reexamination, obtaining reexamination certificates respectively in June 2012, October 2011, May 2012, August 2012 with certificate
number respectively GF201232000096, GF201134000043, GF201232000077, GF201232000673. According to Circular of the State
Administration of Taxation on the Issues concerning the Administration of Enterprise Income Tax Deduction and Exemption
(Guo-Shui-Fa [2008] No. 111 document) and Circular of the State Administration of Taxation on the Issues concerning Hi-tech
Enterprise Paying Corporate Income Tax in 2008 (Guo-Shui-Han [2008] No. 985), the Company and its subsidiary, Hefei Royalstar
Water Industry Facilities Co., Ltd., and Wuxi Little Swan GE Co., Ltd. as well as Wuxi Filin Electronics Co., Ltd. were approved to
enjoy income tax rate 15%. Certificate No. GF201134000043 of Hefei Media Washing Machine Co., Ltd. had expired at the end of
Y2013, and had applied for new high-tech enterprise again, which was in the approval procedure. Each index of the Company was
met with the application standards, so the income tax expense was still calculated according to 15% of the income tax rate.
73
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
VI. Business combination and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
Balance of parent
company’s equity
after deducting the
The The
Actual amount Other Included in Deductible difference that loss
Registered Business Registered Business proportion proportion Minority
Subsidiaries Type of investments essential consolidated minority of minority interests
place nature capital scope of holding of voting interest
at the period-end investment statement interests exceed equity
shares rights
obtained by
minority
shareholders
Wuxi Little Swan Manufacture
General Electric Holding Producti of washing
Wuxi 28,000,000.00 19,600,000.00 70.00% 70.00% Yes 43,448,957.00
Appliances Co., subsidiaries on machine and
Ltd. dryers
Manufacture
Wuxi Filin of computer
Holding Producti USD control
Electronics Co., Wuxi 25,630,294.47 73.00% 73.00% Yes 85,356,866.98
subsidiaries on 3,624,600.00 components
Ltd. for washing
machine
Manufacture
Wuxi Little Swan Holding Producti
Wuxi 49,679,500.00 and sale of 37,259,780.00 99.91% 99.91% Yes -38,128,999.72
Washing Machine subsidiaries on
commercial
74
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Co., Ltd. washing
machine ,
dryers and
spare parts
Wuxi Meitian
Holding USD Sales of
Refrigerator Wuxi Trading 24,840,000.00 75.00% 75.00% Yes
subsidiaries 4,000,000.00 refrigerator
Market Co., Ltd.
Jiangsu Little
Sales of
Swan Marketing Holding 419,500,000.0 household
Wuxi Trading 417,794,000.00 99.63% 99.63% Yes -81,851,346.36
and Sales Co., subsidiaries 0 electrical
appliances
Ltd.
Import &
Wuxi Little Swan Import
Holding export of
Import & Export Wuxi & 65,000,000.00 electric 57,500,000.00 88.46% 88.46% Yes -15,266,022.30
subsidiaries machine
Co., Ltd Export
products
Little Swan
Wholly-own
International Investm USD
ed Singapore Investment 34,052,500.00 100.00% 100.00% Yes
(Singapore) Co., ent 5,000,000.00
subsidiary
Ltd.
Note: Wuxi Little Swan Washing Machine Co. Ltd. had written off on 15 Jul. 2014.
(2) Subsidiaries obtained by business combination under same control
Unit: RMB Yuan
75
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Balance of parent
Included company’s equity
Actual amount The The in after deducting the
Other Deductible
Register Business Business of investments proportion proportion consolid difference that loss of
Subsidiaries Type Registered capital essential Minority interest minority
ed place nature scope at the of holding of voting ated minority interests
investment interests
period-end shares rights statemen exceed equity
t obtained by minority
shareholders
Little Swan
Wholly-
(Jingzhou) Manufacture
owned Producti
Electronic Jingzhou 11,070,200.00 of washing 11,869,400.00 100.00% 100.00% Yes
subsidiar on
Appliances Co., machines
y
Ltd.
Hefei Media
Holding Producti USD Manufacture
Washing Machine Hefei of washing 830,962,300.00 69.47% 69.47% Yes 528,933,955.18
subsidiar on 135,520,000.00 machines
Co., Ltd.
ies
Hefei Midea
Holding Manufacture
Washing Machine Producti
subsidiar Hefei 20,000,000.00 of washing 18,000,000.00 90.00% 90.00% Yes 2,133,833.08
Manufacture Co., on
ies machines
Ltd.
76
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
2. Explanation on changes in consolidated scope
Explanation on changes in consolidated scope:
The subsidiary Tianjin Little Swan Washing Machine Co., Ltd. had been written off on 28 Jan. 2014 and not included in the
consolidation scope since the date.
√ Applicable □ Inapplicable
3. Main entities which are newly included into or are not included into consolidation scope during the
reporting period
The subsidiaries, special purpose entities and the operation entities which formed the control rights through methods such as
entrusted operation or lease etc.
Unit: RMB Yuan
Net profits from the year-begin to
Name Disposal of the daily net assets
the disposal date
Tianjin Little Swan Washing Machine Co., Ltd. 191,467,411.60 -100.00
4. Exchange rates of major items in financial statements for foreign entities
The exchange rates of the major items in financial statements for foreign entities included in the consolidation financial statements of
the reporting period are: for assets and liabilities, using the spot exchange rate on the balance sheet date with USD 1 dollar at the
period-end converted into RMB 6.1528. For the entitlement programs of the owners (except for the retained profits items), using the
spot exchange rate when obtained and for the income statement as well as the cash flow statement, using the approximate exchange
rate within the year, which means USD 1 dollar is converted to RMB 6.1431.
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
Closing balance Opening balance
Item Amount in Exchange Amount in Exchange
RMB amount RMB amount
foreign currency rate foreign currency rate
Cash: -- -- 8,158.18 -- -- 21,277.15
RMB -- -- 8,158.18 -- -- 21,277.15
Bank deposit: -- -- 2,114,614,996.65 -- -- 1,558,183,589.38
RMB -- -- 2,062,208,224.21 -- -- 1,495,172,481.08
USD 8,408,703.00 6.1528 51,737,067.80 10,072,251.52 6.0969 61,409,510.29
EUR 79,777.92 8.3946 669,703.73 190,238.29 8.4189 1,601,597.14
JPY 15.00 0.060815 0.91 15.00 0.057771 0.87
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Other monetary funds: -- -- 50,671,950.96 -- -- 59,168,221.97
RMB -- -- 46,619,468.31 -- -- 56,125,194.49
USD 658,640.40 6.1528 4,052,482.65 499,110.61 6.0969 3,043,027.48
Total -- -- 2,165,295,105.79 -- -- 1,617,373,088.50
2. Trading financial assets
(1) Trading financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Derivative financial assets 1,486,950.00 15,016,740.00
Total 1,486,950.00 15,016,740.00
3. Notes receivable
(1) Category of notes receivable
Unit: RMB Yuan
Category Closing balance Opening balance
Bank acceptance bill 2,376,741,559.62 2,449,770,225.41
Total 2,376,741,559.62 2,449,770,225.41
(2) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or
agreement, and undue notes endorsed to other parties at the end of the period
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
Issuing entity Date of issuance Expiring date Amount Remark
Suning Yunshang Group Co., Ltd. Procurement
17 Apr. 2014 17 Oct. 2014 10,000,000.00
Center
Suning Yunshang Group Co., Ltd. Procurement
17 Apr. 2014 17 Oct. 2014 10,000,000.00
Center
Suning Yunshang Group Co., Ltd. Procurement
17 Apr. 2014 17 Oct. 2014 7,087,627.41
Center
Ningbo Yongning Suning Yunshang Trading Co.,
17 Jan. 2014 17 Jul. 2014 6,803,424.56
Ltd.
Xiamen Xiangyu Trading Supply Chain Co., Ltd. 26 Feb. 2014 26 Aug. 2014 5,000,770.00
Total -- -- 38,891,821.97 --
4. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
Category Closing balance Opening balance
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Accounts receivable for which bad debt provisions are made on the group basis
Group 1: Aging group 869,491,640.31 98.64% 44,133,950.81 5.08% 819,724,441.69 97.94% 41,980,309.37 5.12%
Group 2: Account
receivable within the
scope of consolidated
sheet
Subtotal of group 869,491,640.31 98.64% 44,133,950.81 5.08% 819,724,441.69 97.94% 41,980,309.37 5.12%
Accounts receivable
with insignificant
single amount and
12,011,214.28 1.36% 12,011,214.28 100.00% 17,241,527.92 2.06% 17,241,527.92 100.00%
individually
withdrawn bad debt
provision
Total 881,502,854.59 -- 56,145,165.09 -- 836,965,969.61 -- 59,221,837.29 --
Accounts receivable with significant single amount and individually withdrawn bad debt provision
□Applicable √Inapplicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging Book balance Provision for bad Book balance Provision for bad
Amount Proportion debts Amount Proportion debts
Within 1 year
Including: -- -- -- -- -- --
Subtotal of within 1
865,881,546.48 99.58% 43,294,077.12 813,679,130.91 99.26% 40,683,956.54
year
1-2 years 2,851,779.12 0.33% 285,177.91 4,906,952.28 0.60% 490,695.24
2-3 years 3,401.36 0.00% 1,020.41 115,910.66 0.01% 23,182.13
Over 3 years 402,475.95 0.05% 201,237.97 599,930.94 0.07% 359,958.56
Over 5 years 352,437.40 0.04% 352,437.40 422,516.90 0.05% 422,516.90
Total 869,491,640.31 -- 44,133,950.81 819,724,441.69 -- 41,980,309.37
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□Applicable √Inapplicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable:
√Applicable □Inapplicable
79
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Unit: RMB Yuan
Bad debt Withdrawal Reason for
Content of accounts receivable Book balance
provision proportion withdrawal
Difficult to
AVEST 317,931.17 317,931.17 100.00%
withdraw
Difficult to
CNPEC 853,104.00 853,104.00 100.00%
withdraw
Difficult to
Chongqing Taizheng (Group) Co., Ltd. 851,500.00 851,500.00 100.00%
withdraw
Difficult to
Chongqing R&F Property Development Co., Ltd. 1,675,800.00 1,675,800.00 100.00%
withdraw
Chongqing Zhongcheng Property Development Co., Difficult to
1,655,000.00 1,655,000.00 100.00%
Ltd. withdraw
61 Households of Hunan Huitang Hot Spring Difficult to
6,657,879.11 6,657,879.11 100.00%
Huatian City Real Estate Co., Ltd. etc withdraw
Total 12,011,214.28 12,011,214.28 -- --
(2) Accounts receivable reversed or collected in the reporting period
Unit: RMB Yuan
Recognition basis Reversed or collected
Reversed or Reversed or
Content of accounts receivable of original bad amount of the accrued
collected reason collected amount
debt provision bad debt provision
Foshan Shunde Midea Nuantong Equipment Sales Negotiated Difficult to
0.30 0.30
Co., Ltd. collection withdraw
CNOOC Energy Technology & Services-Catering Negotiated Difficult to
57,662.50 57,662.50
& Support Services Co., Ltd. collection withdraw
Negotiated Difficult to
CNPE 150,500.00 107,500.00
collection withdraw
Chongqing Wanzhou Wanda Hotel Management Negotiated Difficult to
303,092.00 187,569.00
Co., Ltd. collection withdraw
Hunan Huitang Hot Spring Huatian City Real Negotiated Difficult to
1,272,000.00 260,000.00
Estate Co., Ltd. collection withdraw
Negotiated Difficult to
Tangshan Wanda Investment Real Estate Co., Ltd. 531,488.00 472,116.00
collection withdraw
Negotiated Difficult to
Hangzhou Xixi Investment Development Co., Ltd. 745,584.30 521,909.01
collection withdraw
Negotiated Difficult to
Chongqing Taizheng (Group) Co., Ltd. 1,851,500.00 1,000,000.00
collection withdraw
80
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Headquarters of Hangzhou Xihu Xixi Wetland Negotiated Difficult to
1,427,004.00 1,427,004.00
Comprehensive Protection Project collection withdraw
Negotiated Difficult to
CNPEC 2,367,588.00 1,514,484.00
collection withdraw
Total -- -- 8,706,419.10 --
(3) Information of top 5 accounts receivable
Unit: RMB Yuan
The relationship
Name of entity with the Amount Aging Proportion
Company
MIDEA ELECTRIC TRADING
Retailer 289,064,145.28 Within 1 year 32.79%
SINGAPORE)CO.PTE.LTD
Suning Yunshang Group Co., Ltd. Procurement
Retailer 99,922,892.06 Within 1 year 11.34%
Center
Kunming Midea Refrigeration Product Sales Co.,
Retailer 24,617,486.49 Within 1 year 2.79%
Ltd.
Jilin Media Refrigeration Product Sales Co., Ltd. Retailer 24,293,337.75 Within 1 year 2.76%
Xi’an Guomei Electrical Appliance Co., Ltd. Retailer 15,912,699.98 Within 1 year 1.81%
Total -- 453,810,561.56 -- 51.49%
(4) The amounts due from related parties
Unit: RMB Yuan
Name of entity The relationship with the Company Amount Proportion
MIDEA ELECTRIC TRADING
Shareholder controlling company 289,064,145.28 32.79%
SINGAPORE)CO.PTE.LTD
PT. MIDEA PLANET INDONESIA Shareholder controlling company 801,605.24 0.09%
MIDEA SCOTT&ENGLISH ELECTRONIICS
Shareholder controlling company 7,845,232.18 0.89%
SDN.BHD
MIDEA CONSUMER ELECTRIC (VIETNAM)
Shareholder controlling company 844,303.34 0.10%
CO.,LTD
Total -- 298,555,286.04 33.87%
5. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB Yuan
81
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Closing balance Opening balance
Provision for doubtful Provision for doubtful
Category Book balance Book balance
debts debts
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Other accounts receivable that provisions for bad debts by group
Group 1: Aging group 29,203,534.86 100.00% 3,645,918.41 12.48% 29,105,439.83 100.00% 2,941,915.70 10.11%
Group 2: Other account
receivable with in the
scope of consolidated
sheet
Subtotal of group 29,203,534.86 100.00% 3,645,918.41 12.48% 29,105,439.83 100.00% 2,941,915.70 10.11%
Total 29,203,534.86 -- 3,645,918.41 -- 29,105,439.83 -- 2,941,915.70 --
Explanation of the category of other accounts receivable
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□Applicable √Inapplicable
In the group, other accounts receivable that provision for bad debts by aging analysis:
√Applicable □Inapplicable
Unit: RMB Yuan
Period-end Period-begin
Aging Book balance Provision for bad Book balance Provision for bad
Amount Proportion debts Amount Proportion debts
Within 1 year
Including:
Subtotal of within 1 year 11,241,866.26 38.49% 562,093.31 24,970,133.06 85.79% 1,248,506.66
1-2 years 14,541,464.65 49.79% 1,454,146.47 1,442,035.00 4.95% 144,203.50
2-3 years 762,052.00 2.61% 228,615.60 208,868.00 0.72% 41,773.60
Over 3 years 2,514,177.83 8.61% 1,257,088.92 2,442,429.65 8.39% 1,465,457.82
Over 5 years 143,974.12 0.49% 143,974.12 41,974.12 0.15% 41,974.12
Total 29,203,534.86 -- 3,645,918.41 29,105,439.83 -- 2,941,915.70
In the group, other accounts receivable those provisions for bad debts by balance percentage:
□Applicable √Inapplicable
In the group, other accounts receivable those provisions for bad debts by other methods:
□Applicable √Inapplicable
Other closing individually insignificant but provisions for bad debts individually accounts receivable
□Applicable √Inapplicable
82
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(2) Information of top five other accounts receivable
Unit: RMB Yuan
Relationship with
Name of entity Amount Aging Proportion of the total
the Company
MIIT Government sector 13,138,701.10 Within 2 years 44.99%
Wang Ruiqun Company personnel 2,588,000.00 Within 1 year 8.86%
Wuxi China Resources Natural Gas Co., Ltd. Cooperator 1,212,830.80 Within 1 year 4.15%
Fiscal Treasury payment center of Hefei Hi
Government sector 1,000,000.00 3 to 4 years 3.42%
gh-Tech Industry Development Zone
Zhejiang Tmall Technology Co., Ltd. Cooperator 924,391.72 Within 1 year 3.17%
Total -- 18,863,923.62 -- 64.59%
6. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 159,627,528.25 97.83% 130,792,399.39 92.86%
1 to 2 years 2,978,949.72 1.83% 5,434,937.53 3.86%
2 to 3 years 563,642.94 0.35% 4,614,587.14 3.28%
Total 163,170,120.91 -- 140,841,924.06 --
(2) Information of the top 5 prepayment
Unit: RMB Yuan
Relationship
Reason for
Name of entity with the Amount Aging
unsettled
Company
Yanshan Operating Dept. of Sinopec Chemical Sales Advance material
Supplier 57,792,070.00 Within 1 year
Company Limited payment
East China Chemical Sales of PetroChina Company Advance material
Supplier 28,528,050.00 Within 1 year
Limited payment
Advance material
Ningbo Midea Joint Supplies Co., Ltd. Supplier 15,845,206.76 Within 1 year
payment
Shanghai Shabo Basis Trade & Commerce Co., Ltd. Supplier 11,325,600.00 Within 1 year Advance material
83
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
payment
Advance electric
Anhui Power Company Hefei Power Supply Company Supplier 6,580,086.42 Within 1 year
charge
Total -- 120,071,013.18 -- --
7. Inventory
(1) Category
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment of Impairment of
Book balance Book value Book balance Book value
inventories inventories
Raw materials 43,663,080.32 1,464,472.25 42,198,608.07 43,399,847.13 3,610,554.47 39,789,292.66
Construction
15,007,996.51 15,007,996.51 10,469,267.54 10,469,267.54
contract assets
Inventory goods 561,274,873.94 37,217,367.34 524,057,506.60 785,045,416.69 37,162,138.31 747,883,278.38
Total 619,945,950.77 38,681,839.59 581,264,111.18 838,914,531.36 40,772,692.78 798,141,838.58
(2) Impairment of inventories
Unit: RMB Yuan
Decrease
Category Opening balance Increase Closing balance
Reversal Written off
Raw materials 3,610,554.47 2,146,082.22 1,464,472.25
Inventory goods 37,162,138.31 55,229.03 37,217,367.34
Total 40,772,692.78 55,229.03 2,146,082.22 38,681,839.59
8. Other current assets
Unit: RMB Yuan
Item Closing balance Opening balance
Bank financing 1,942,370,000.00 1,780,000,000.00
Deferred expense-module 17,257,280.92 11,288,539.62
Total 1,959,627,280.92 1,791,288,539.62
84
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
9. Available-for-sale financial assets
(1) Information of available-for-sale financial assets
Unit: RMB Yuan
Item Closing fair value Opening fair value
Available-for-sale equity instruments 251,664.00 312,816.00
Total 251,664.00 312,816.00
In the reporting period, the Company reclassified the held-to-maturity investment into available-for-sale financial assets, a total of
RMB0.00 was reclassified, which takes 0% of total matured investment before reclassification.
10. Investment to joint ventures and associated enterprises
Unit: RMB Yuan
Percentage Voting Total
Net profit
of holding percentage operation
Total closing Total closing Net closing of the
Name of investee shares of of the revenue of the
assets liabilities assets reporting
the Company in reporting
period
Company investee period
I. Joint ventures
II. Associated enterprises
Guangzhou Attend Logistics
20.00% 20.00% 20,208,753.70 4,263,771.47 15,944,982.23 8,833,062.79 98,901.84
Co., Ltd.
11. Long-term equity investment
(1) List of long-term equity investment
Unit: RMB Yuan
With
draw
Explanation
n
for
impa Cash
indifference
Share irme bonus
Voting s between Impair
Accoun Initial holding nt in the
Opening Increase/d percenta the share ment
Investee ting investment Closing balance percenta prov report
balance ecrease ge in holding provisi
method cost ge in ision ing
investee percentage on
investee in perio
and voting
the d
percentage
repo
in investee
rting
peri
85
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
od
Guangzh
ou Attend Equity
2,000,000.00 3,169,148.88 19,847.57 3,1-188,996.45 20.00% 20.00%
Logistics method
Co., Ltd.
Suzhou
People's Cost
150,000.00 150,000.00 150,000.00
Shopping method
Mall
Bank of
Cost
Jiangsu 1,100,000.00 1,210,000.00 1,210,000.00
method
Co., Ltd.
Inner
Mongolia
Baotou Cost
50,000.00 50,000.00 50,000.00
Departme method
nt Store
Co., Ltd.
Total -- 3,300,000.00 4,579,148.88 19,847.57 4,598,996.45 -- -- --
12. Investment property
(1) Investment property calculated by cost
Unit: RMB Yuan
Decrease in this
Item Opening book value Increase in this period Closing book value
period
I. Total of original book value 30,936,720.15 30,936,720.15
1. Property and building 25,586,926.80 25,586,926.80
2. Land using right 5,349,793.35 5,349,793.35
II. Total of accumulated depreciation
8,893,877.76 505,145.66 9,399,023.42
and amortization
1. Property and building 7,003,618.26 451,647.75 7,455,266.01
2. Land using right 1,890,259.50 53,497.91 1,943,757.41
III. Total of the net book value of the
22,042,842.39 -505,145.66 21,537,696.73
investment real estate
1. Property and building 18,583,308.54 -451,647.75 18,131,660.79
2. Land using right 3,459,533.85 -53,497.91 3,406,035.94
IV. Total of accruing amount of the
12,576,065.29 12,576,065.29
investment real estate impairment
86
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
provision
1. Property and building 12,576,065.29 12,576,065.29
IV. Total of book value of real estate
9,466,777.10 -505,145.66 8,961,631.44
investment
1. Property and building 6,007,243.25 -451,647.75 5,555,595.50
2. Land using right 3,459,533.85 -53,497.91 3,406,035.94
13. Fixed assets
(1) Fixed assets
Unit: RMB Yuan
Opening book Decrease in the Closing book
Item Increase in the reporting period
balance reporting period balance
I. Total original book value 1,741,335,928.35 22,886,697.42 27,239,278.42 1,736,983,347.35
Including: Property and
815,100,557.69 1,932,811.43 723,116.23 816,310,252.89
building
Machineries 804,141,462.70 14,286,868.02 19,506,735.88 798,921,594.84
Vehicles 26,559,949.77 1,132,307.72 1,585,949.92 26,106,307.57
Electronic equipments and
95,533,958.19 5,534,710.25 5,423,476.39 95,645,192.05
other
Opening book Increase in Withdrawal in Decrease in the Closing book
--
balance reporting period reporting period reporting period balance
II. Accumulated
537,806,930.26 66,946,085.42 19,619,298.91 585,133,716.77
depreciation
Including: Property and
140,533,670.34 17,598,916.42 93,767.10 158,038,819.66
building
Machineries 315,766,343.75 35,378,377.19 13,481,424.63 337,663,296.31
Vehicles 14,408,730.42 4,900,144.71 1,150,943.83 18,157,931.30
Electronic equipments and
67,098,185.75 9,068,647.10 4,893,163.35 71,273,669.50
other
Opening book Closing book
-- --
balance balance
III. The net book value of
1,203,528,998.09 -- 1,151,849,630.58
fixed assets
Including: Property and
674,566,887.35 -- 658,271,433.23
building
Machineries 488,375,118.95 -- 461,258,298.53
Vehicles 12,151,219.35 -- 7,948,376.27
Other equipment 28,435,772.44 -- 24,371,522.55
IV. Total impairment 9,284,711.23 -- 20,498,454.29
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
provision
Including: Property and
4,550,556.97 -- 3,906,896.14
building
Machineries 4,074,257.81 -- 16,094,122.63
Vehicles 271,413.75 -- 138,534.16
Electronic equipments and
388,482.70 -- 358,901.36
other
V. Total book value of fixed
1,194,244,286.86 -- 1,131,351,176.29
assets
Including: Property and
670,016,330.38 -- 654,364,537.09
building
Machineries 484,300,861.14 -- 445,164,175.90
Vehicles 11,879,805.60 -- 7,809,842.11
Electronic equipments and
28,047,289.74 -- 24,012,621.19
other
Depreciation amount of this reporting period was RMB 66,946,085.42; original value of RMB 0.000 was transferred into fixed assets
from construction project.
14. Construction in progress
(1) Construction in progress
Unit: RMB Yuan
Closing balance Opening balance
Item Impairment Book Impairment
Book balance Book value Book value
provision balance provision
T1451633001 drum SCOTT line overhaul
2,184,273.62 2,184,273.62
under constructionT1451633001
Injection molding machine overhaul 773,638.20 773,638.20
Total 2,957,911.82 2,957,911.82
15. Intangible assets
(1) Intangible assets
Unit: RMB Yuan
Increase in the reporting Decrease in the
Item Opening balance Closing balance
period reporting period
I. Total original book value 258,801,275.07 168,420.00 258,969,695.07
Land use right 254,629,820.51 254,629,820.51
Non-patent technology 1,992,000.00 1,992,000.00
Software, etc. 2,179,454.56 168,420.00 2,347,874.56
II. Accumulative
39,355,742.20 2,893,989.24 42,249,731.44
amortization
Land use right 35,908,646.36 2,739,231.85 38,647,878.21
Non-patent technology 1,992,000.00 1,992,000.00
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Software, etc. 1,455,095.84 154,757.39 1,609,853.23
III. Total net book value of
219,445,532.87 -2,725,569.24 216,719,963.63
intangible assets
Land use right 218,721,174.15 -2,739,231.85 215,981,942.30
Non-patent technology
Software, etc. 724,358.72 13,662.61 738,021.33
Land use right
Non-patent technology
Software, etc.
Total book value of
219,445,532.87 -2,725,569.24 216,719,963.63
intangible assets
Land use right 218,721,174.15 -2,739,231.85 215,981,942.30
Non-patent technology
Software, etc. 724,358.72 13,662.61 738,021.33
Amortization was of RMB2,893,989.24 in the reporting period.
16. Long-term amortization expense
Unit: RMB Yuan
Amortization Reason for other
Item Opening balance Increase Other decrease Closing balance
balance decrease
Module 4,796,970.60 2,399,857.56 5,156,395.93 2,040,432.23
IT consultant
2,048,522.86 470,000.00 1,168,024.44 1,350,498.42
expense
Improvement of
302,342.28 226,756.68 75,585.60
lease expense
Total 7,147,835.74 2,869,857.56 6,551,177.05 3,466,516.25 --
17. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
Confirmed deferred tax assets and liabilities
Unit: RMB Yuan
Item Closing amount Opening amount
Deferred income tax assets:
Provision for assets impairment 16,084,674.12 16,382,981.18
Remuneration and dismiss expense 5,234,689.32 5,760,927.08
Withdrawal expense 189,652,304.86 135,295,945.42
Internal unrealized profit 5,694,551.24 10,451,805.07
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Estimated liabilities 1,524,367.93 1,696,578.54
Deferred income (government subsidy) 77,550.00 85,290.00
Investment differences 1,317,443.38 1,317,443.38
Subtotal 219,585,580.85 170,990,970.67
Deferred income tax liabilities:
Estimated value of trading financial instruments,
223,042.50 2,252,511.00
derivative financial instruments
Fair value changes on available-for-sale financial
22,704.60 31,877.40
assets that recognized into capital reserves
Subtotal 245,747.10 2,284,388.40
Lists of deferred tax assets and liabilities unrecognized
Unit: RMB Yuan
Item Closing amount Opening amount
Deductible temporary differences 29,467,415.77 15,798,136.82
Deductible losses 27,511,181.44 75,366,221.20
Total 56,978,597.21 91,164,358.02
Notes of taxable differences and deductible differences between projects
Unit: RMB Yuan
Amount
Item
Closing Opening
Item of taxable differences
Changes in the fair value -Tradable financial assets 1,486,950.00 15,016,740.00
Changes in the fair value - Available-for-sale
151,364.00 212,516.00
financial assets
Subtotal 1,638,314.00 15,229,256.00
Item of deductible differences
Preparation for the impairment of assets 107,231,160.84 109,219,874.55
Payment and dismissal costs 34,897,928.81 38,406,180.54
Accrued expenses 1,264,348,699.05 901,972,969.48
Internal unrealized profits 37,963,674.94 69,678,700.46
Anticipation liabilities 10,162,452.89 11,310,523.59
Deferred income (government subsidies) 517,000.00 568,600.00
Investment differences 8,782,955.88 8,782,955.88
Subtotal 1,463,903,872.41 1,139,939,804.50
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
18. Notes of preparation for the impairment of assets
Unit: RMB Yuan
Book value at the Decrease in the period
Increase in the Book value at the
Item opening of the
period Reversal Written off end of the period
period
1. Provision for bad debts 62,163,752.99 10,433,166.25 12,805,835.75 59,791,083.49
2. Inventory falling price re
40,772,692.78 55,229.03 2,146,082.22 38,681,839.59
serves
3. The investment real estate
12,576,065.29 12,576,065.29
impairment provision
4. Fixed assets impairment
9,284,711.23 13,737,437.77 2,523,694.71 20,498,454.29
provision
Total 124,797,222.29 24,225,833.05 12,805,835.75 4,669,776.93 131,547,442.66
19. Short-term borrowing
(1) The classification of short-term borrowing
Unit: RMB Yuan
Item Closing amount Opening amount
Debt of honor 50,117,340.00
Total 50,117,340.00
20. Notes payable
Unit: RMB Yuan
Category Closing amount Opening amount
Bank acceptance 868,240,658.99 385,673,110.34
Total 868,240,658.99 385,673,110.34
The amount due of next accounting period is RMB 868,240,658.99.
21. Accounts payable
(1) Accounts payable
Unit: RMB Yuan
Item Closing amount Opening amount
Within 1 year 3,050,363,216.49 2,670,837,986.87
1 to 2 years 26,290,927.95 45,299,711.81
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
2 to 3 years 30,869,764.59 22,284,494.89
3 to 5 years 36,180,695.40 17,047,547.93
Over 5 years 13,668,783.78 12,576,353.96
Total 3,157,373,388.21 2,768,046,095.46
22. Deposit received
(1) Deposit received
Unit: RMB Yuan
Item Closing amount Opening amount
Within 1 year 389,903,766.85 980,920,518.26
1 to 2 years 16,578,457.31 44,922,372.19
2 to 3 years 7,095,067.96 5,916,412.68
3 to 5 years 13,242,062.59 8,434,917.26
Over 5 years 12,716,564.71 17,758,377.13
Total 439,535,919.42 1,057,952,597.52
23. Payroll payable
Unit: RMB Yuan
Book value at the opening Book value at the end of
Item Increase in the period Decrease in the period
of the period the period
I. Salary, bonus,
137,431,309.36 246,418,485.31 282,972,639.93 100,877,154.74
allowance, subsidy
II. Employee welfare 8,043,769.84 14,146,210.98 17,516,916.03 4,673,064.79
III. Social insurance 7,670,870.72 52,670,189.60 47,614,618.85 12,726,441.47
IV. Housing fund 6,451,718.24 11,156,760.07 11,209,397.25 6,399,081.06
V. Redemption for
terminations of labor 43,366,596.83 8,370,442.31 14,535,249.04 37,201,790.10
contract
VI. Others 4,359,354.93 3,928,892.46 4,994,678.67 3,293,568.72
Total 207,323,619.92 336,690,980.73 378,843,499.77 165,171,100.88
RMB 0.00 is the amounts in arrears in the payroll payable.
The labor union budget and employee education budget is RMB 3,293,568.72, and the non-monetary benefits are RMB0.00, as well
as the compensation for terminating the labor contract is RMB 37,201,790.10.
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
24. Taxes payable
Unit: RMB Yuan
Item Closing amount Opening amount
Value-added tax 23,794,975.52 26,109,122.01
Consumption tax 360,000.00 360,000.00
Business tax 190,476,604.21 137,640,615.34
Corporate income tax 1,916,633.99 649,936.36
Personal income tax 2,459,493.70 6,945,372.39
Urban maintenance and construction tax 3,356,209.46 3,807,332.62
Property tax 1,681,437.66 3,105,747.40
Land use tax 494,204.11 599,259.73
Stamp tax 2,124,202.04 4,986,066.76
Education surtax 12,314,603.00 11,974,697.00
Other 7,042,346.52 3,025,706.95
Total 246,020,710.21 199,203,856.56
25. Dividends payable
Unit: RMB Yuan
Reason of unpaid over one
Name of entity Closing amount Opening amount
year
Other restricted legal person
4,088,128.36 3,740,152.33 Did not cash
shareholder
Total 4,088,128.36 3,740,152.33 --
26. Other accounts payable
(1) Other accounts payable
Unit: RMB Yuan
Item Closing amount Opening amount
Within 1 year 24,913,188.78 34,703,583.02
1 to 2 years 6,370,703.99 4,046,107.47
2 to 3 years 3,022,338.47 2,886,513.66
3 to 5 years 5,138,486.28 7,209,641.43
Over 5 years 710,023.65 1,175,248.08
Total 40,154,741.17 50,021,093.66
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
27. Estimated liabilities
Unit: RMB Yuan
Item Opening amount Increase in the period Decrease in the period Closing amount
Product quality assurance 11,310,523.59 1,148,070.70 10,162,452.89
Total 11,310,523.59 1,148,070.70 10,162,452.89
Notes:
The washing machines produced by subsidiary of the company, Wuxi Little Swan General Electric Co., Ltd., are mainly sold to the
United States and other foreign markets. Overseas sale of these washing machines involves the two kinds of risks:1) The insurance
company may only afford an insufficient compensation when the quality problems take place, and 2) there is a risk of liability for
damages when the failure rate is higher than FCR stipulated in the contract with General Electric Company. As of 30 Jun. 2014, the
company has a risk loss of RMB 10,162,500 for the sold products.
28. Account payable special funds
Unit: RMB Yuan
Increase in the Decrease in the
Item Opening amount Closing amount Notes
period period
Relocation compensation 2,073,957.30 1,710,000.00 3,783,957.30
Total 2,073,957.30 1,710,000.00 3,783,957.30 --
Notes:
The account payable special funds at the end of the period owns to the needs of urban planning. Wuxi New District Xin’an Street
Relocation Office had replaced land with the Company’s holding subsidiary, Wuxi Feiling Electronics Co., Ltd., and at the same time
made up for the original buildings on the land.
29. Other non-current liabilities
Unit: RMB Yuan
Item Book value at the end of the period Book value at the opening of the period
Deferred income 517,000.00 568,600.00
Total 517,000.00 568,600.00
Liabilities project involving government subsidies
Unit: RMB Yuan
Subsidies newly Non-operating Related to
Closing
Item Opening balance increased in this income recorded Other changes assets/related to
balance
period in this period income
Subsidies of
substation 277,400.00 25,200.00 252,200.00 Related to assets
reformation
Special guide
subsidies of modern
291,200.00 26,400.00 264,800.00 Related to assets
service industry
development
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Total 568,600.00 51,600.00 517,000.00 --
30. Share capital
Unit: RMB Yuan
Increase/Decrease (+/-)
Opening Capitalization Closing
Issuing new
amount Bonus shares of public Other Subtotal amount
shares
reserves
Total shares 632,487,764.00 632,487,764.00
31. Capital reserves
Unit: RMB Yuan
Item Opening amount Increase in the period Decrease in the period Closing amount
Capital premium (share
1,055,182,718.57 1,055,182,718.57
capital premium)
Other capital reserve 39,179,385.00 39,179,385.00
Gains and losses from fair value
180,638.60 51,979.20 128,659.40
changes
Equity investment preparation 1,638,562.74 1,638,562.74
Share-based payment 33,250,000.00 5,373,251.88 38,623,251.88
Total 1,129,431,304.91 5,373,251.88 51,979.20 1,134,752,577.59
Notes:
The amount increased in this period is RMB 5,373,251.88, which is the Midea Group’s stock payment to the middle and
high-level staffs of the Company, The amount decreased in this period is RMB 51,979.2, which is the change of gains and losses
of fair value of available-for-sale financial assets this year.
32. Surplus reserves
Unit: RMB Yuan
Item Opening amount Increase in the period Decrease in the period Closing amount
Statutory surplus reserves 290,958,368.49 290,958,368.49
Total 290,958,368.49 290,958,368.49
33. Retained profits
Unit: RMB Yuan
Item Amount Withdrawal or distributed proportion
Opening balance of retained profits before adjustments 1,859,579,931.10 --
95
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Opening balance of retained profits after adjustments 1,859,579,931.10 --
Add: Net profit attributable to owners of the Company 316,358,532.13 --
Dividend of common stock payable 189,746,329.20
Closing retained profits 1,986,192,134.05 --
List of adjustment of opening retained profits:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
Notes: as for IPO companies, if the accumulated profits were enjoyed by new and original shareholders according to the resolutions
made at the shareholders’ general meeting before public offering, the Company shall explain clearly; if the accumulated profits were
distributed before public offering and enjoyed by the original shareholders according to the resolutions made at the shareholders’
general meeting, the Company shall clearly disclose the audited profits of dividends payable enjoyed by the original shareholders.
34. Revenue and Cost of Sales
(1) Revenue and Cost of Sales
Unit: RMB Yuan
Item Reporting period Same period of last year
Sales of main business 4,557,126,125.99 3,687,450,129.55
Other operating income 416,930,894.57 310,774,206.76
Cost of sales 3,655,315,076.59 3,005,810,911.14
(2) Main business (Classified by industry)
Unit: RMB Yuan
Reporting period Same period of last year
Industry
Revenue of sales Costs of sales Revenue of sales Costs of sales
Home appliances 4,557,126,125.99 3,280,741,426.30 3,687,450,129.55 2,726,631,893.14
Total 4,557,126,125.99 3,280,741,426.30 3,687,450,129.55 2,726,631,893.14
(3) Main business (Classified by product)
Unit: RMB Yuan
Reporting period Same period of last year
Product
Revenue of sales Costs of sales Revenue of sales Costs of sales
Washing machine 4,557,126,125.99 3,280,741,426.30 3,687,450,129.55 2,726,631,893.14
Total 4,557,126,125.99 3,280,741,426.30 3,687,450,129.55 2,726,631,893.14
(4) Main business (Classified by area)
Unit: RMB Yuan
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Reporting period Same period of last year
Area
Revenue of sales Costs of sales Revenue of sales Costs of sales
Domestic 3,568,465,105.73 2,382,803,528.64 2,872,344,515.78 1,983,874,080.54
Other countries 988,661,020.26 897,937,897.66 815,105,613.77 742,757,812.60
Total 4,557,126,125.99 3,280,741,426.30 3,687,450,129.55 2,726,631,893.14
(5) The revenue of sales from the top five customers
Unit: RMB Yuan
Customer Main business revenue Proportion of total business revenue (%)
MIDEA ELECTRIC TRADING SINGAPORE)CO.PTE.LTD 676,907,927.34 13.61%
Suning Yunshang Group Co., Ltd., Suning Procurement Center 399,698,023.79 8.04%
Beijing Jingdong Century Information Technology Co ., Ltd 125,369,962.89 2.52%
Guizhou Midea Refrigeration Product Marketing Co., Ltd. 109,166,797.72 2.19%
PAKSHOMA COMPANY 63,556,770.56 1.28%
Total 1,374,699,482.30 27.64%
35. Business tax and surtax
Unit: RMB Yuan
Calculation and payment
Item Reporting period Same period of last year
standard
Business tax 322,440.93 5,000.00
Urban maintenance and construction
17,347,782.20 15,156,953.78
tax
Education surtax 13,510,445.80 10,795,662.43
Total 31,180,668.93 25,957,616.21 --
36. Selling expenses
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee compensation 73,992,301.57 76,234,924.20
Transportation and handling charges 155,628,481.76 130,242,382.58
Travel expense 13,073,313.35 12,797,757.82
Rental expense 18,647,338.57 32,455,094.80
Installation expense 48,998,580.73 48,906,375.12
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Spare part expense 21,676,208.69 14,295,051.53
Maintenance expense 46,371,434.61 39,098,324.93
Advertisement, sales promotional
308,607,736.97 169,723,315.28
expense
Others 21,876,757.65 16,212,871.50
Total 708,872,153.90 539,966,097.76
37. Administration expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Employee compensation 82,621,273.67 64,056,529.49
Depreciation 14,187,273.51 11,377,056.42
Utility bills 4,129,792.72 3,688,956.75
Quality loss 1,417,018.85 5,826,771.54
Building taxes 4,592,771.25 5,896,626.16
Product certification fee 1,541,366.30 572,756.78
Share-based payment 5,809,948.33
Others 95,783,440.06 81,673,493.54
Total 210,082,884.69 173,092,190.68
38. Financial expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Interest expense 2,431,394.70 1,760,399.50
Less: interest income 9,196,425.25 6,020,314.35
Add: exchange loss -4,461,581.30 22,963,618.21
Handling charge 1,326,782.99 1,439,394.38
Total -9,899,828.86 20,143,097.74
39. Gains and losses from changes in fair value
Unit: RMB Yuan
Source Reporting period Same period of last year
Trading financial assets -13,529,790.00 10,584,660.00
Total -13,529,790.00 10,584,660.00
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
40. Investment income
(1) Investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Long-term equity investment income accounted by
50,000.00
cost method
Long-term equity investment income accounted by
19,847.57 53,125.03
equity method
Investment income received from holding of trading
3,946,180.00 4,654,180.00
financial assets
Others 52,412,042.89 33,824,376.41
Total 56,378,070.46 38,581,681.44
(2) Long-term equity investment income accounted by equity method
Unit: RMB Yuan
Name of investee Reporting period Same period of last year Reason for increase/decrease
Attend Logistics Co,. Ltd 19,847.57 53,125.03
Total 19,847.57 53,125.03 --
41. Impairment losses
Unit: RMB Yuan
Item Reporting period Same period of last year
I. Bad debts losses -2,372,669.49 4,006,859.24
II. Inventory falling price losses 55,229.03 9,719,492.09
III. fixed assets impairment losses 13,737,437.77
Total 11,419,997.31 13,726,351.33
42. Non-operating revenue
(1) Non-operating revenue
Unit: RMB Yuan
Included in the amount of the non-
Item Reporting period Same period of last year recurring gains and losses of the cu
rrent period
99
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Gains from fixed assets deposition 497,193.03 4,258,090.27 497,193.03
Gains from debt restructuring 1,688,200.34 1,688,200.34
Government grants 6,454,141.22 7,073,551.50 6,454,141.22
Penalty income 205,112.93 4,054,332.64 205,112.93
Others 2,769,562.28 2,264,920.80 2,769,562.28
Total 11,614,209.80 17,650,895.21 11,614,209.80
(2) List of government grants
Unit: RMB Yuan
Whether belong to
Reporting Same period of Related to assets/ related to
Item non-current gains
period last year income
and losses
VAT refund upon collection 3,240,786.67 2,708,323.50 Related to income Yes
Foreign trade promoting rewards 1,715,200.00 1,364,082.00 Related to income Yes
Subsidy on export letter of credit 500,000.00 1,623,000.00 Related to income Yes
Patent grants and subsidy for new
173,500.00 116,646.00 Related to income Yes
products
subsidy for equipment investment 51,600.00 300,000.00 Related to income Yes
Special guide funding of provincial
2,100.00 26,400.00 Related to income Yes
modern service industry development
Intellectual property advantage
200,000.00 Related to income Yes
enterprises subsidies
Subsidies for AICA of export products 200,000.00 Related to income Yes
Social security reward for talent policies 125,786.55 Related to income Yes
Production efficiency and advanced
110,000.00 Related to income Yes
statistical awards
Dr. Subsidies 75,000.00 Related to income Yes
Special subsidies for R&D 50,168.00 Related to income Yes
Industrial design Taihu Lake award 10,000.00 Related to income Yes
Government grants of foreign trade and
economic cooperation for regional 262,000.00 Related to income Yes
development
Industrial design relocate subsidy 500,000.00 Related to income Yes
Award of cleaner production
100,000.00 Related to income Yes
projects
Other 73,100.00 Related to income Yes
100
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Total 6,454,141.22 7,073,551.50 -- --
43. Non-operating expenses
Unit: RMB Yuan
Included in the amount
of the non-recurring
Item Reporting period Same period of last year
gains and losses of the
current period
Including: Loss on disposal of fixed assets 1,475,989.61 3,189,776.67 1,475,989.61
Penalty expense 90,201.32 361,628.40 90,201.32
Donation expense 896,062.50 896,062.50
Local fees (flood prevention and security funds
1,744,406.84 2,539,111.79
etc.)
Others 541,578.39 1,341,975.08 541,578.39
Total 4,748,238.66 7,432,491.94 3,003,831.82
44. Income tax expense
Unit: RMB Yuan
Item Reporting period Same period of last year
Current income tax expense accounted by tax and relevant
117,060,681.30 48,833,267.58
regulations
Adjustment of income tax -50,624,078.71 -5,840,915.65
Total 66,436,602.59 42,992,351.93
45. Calculation procedure of basic earnings per share and diluted earnings per share
Item No. Reporting period Same period of last year
Net profit attributable to common
1
shareholders of the Company(NP) 316,358,532.13 220,961,466.94
Non-recurring gains and losses of
net profit attributable to common
2
shareholders of the Company after 43,860,535.03 34,252,100.32
deducting influence on income tax
Net profit attributable to common
shareholders of the Company after
3=1-2
deducting non-recurring gains and 272,497,997.10 186,709,366.62
losses
Total shares as at 30 Jun. 2012 4
632,487,764.00 632,487,764.00
101
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Additional shares increased due to
capital reserves converted to shares
5
or distribution of dividends, etc. in - -
reporting period
Additional shares due to issuance
of new share or debts converted 6
- -
into shares, etc. in reporting period
The number of months from the
next month when increasing shares
7
due to issuance of new share or - -
debts converted into shares, etc.
Reduced shares due to buy-back
8
business etc. in reporting period - -
The number of months from the
9
next month when reducing shares - -
Number of shares reduced in
10
reporting period - -
Number of months in reporting
11
period 6.00 6.00
Weighted average of common
12=4+5+6×7÷11-8×9÷11-10
shares issued outside(Ⅰ) 632,487,764.00 632,487,764.00
Weighted average of common
shares issued outside adjusted for 13
632,487,764.00 632,487,764.00
merger under common control(Ⅱ)
Basic earnings per share(Ⅰ) 14=1÷13
0.50 0.35
Basic earnings per share(Ⅱ) 15=3÷12
0.43 0.30
Diluting potential common share
16
interests recognized as expenses - -
Income tax rate 17 15% 15%
Transformation expense 18
- -
Amount of shares increased by
transforming or exercising of
19
company bond, subscription - -
certificate, or share option
Diluted EPS(Ⅰ) 20=[1+(16-18)×(1-17)]÷(13+19)
0.50 0.35
Diluted EPS(Ⅱ) 21=[3+(16-18)×(1-17)]÷(12+19)
0.43 0.30
102
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
46. Other comprehensive income
Unit: RMB Yuan
Item Reporting period Same period of last year
1. Profits/(losses) from available-for-sale financial assets -61,152.00 -44,688.00
Less: Effects on income tax generating from available-for-sale
-9,172.80 -6,703.20
financial assets
Subtotal -51,979.20 -37,984.80
2. Converted amount of foreign currency financial statements 277,987.96 -531,706.86
Subtotal 277,987.96 -531,706.86
Total 226,008.76 -569,691.66
47. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
Item Amount
Penalty income 205,112.93
Subsidy on income, etc. 3,138,606.39
Interest income from normal bank deposit 9,196,425.25
Actual rent received from operating lease 652,675.00
Other cash income from non-operation 2,510,568.41
Total 15,703,387.98
(2) Other cash paid relevant to operating activities
Unit: RMB Yuan
Item Amount
Sales expense paid in reporting period 488,083,830.35
Administration expense paid in reporting period 111,480,111.74
Handling charges for financial expense in reporting period 1,326,782.99
Others 11,526,696.57
Total 612,417,421.65
48. Appendix of Cash Flow Statement
(1) Appendix of Cash Flow Statement
Unit: RMB Yuan
Item Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated from operating -- --
103
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
activities
Net profit 350,363,717.00 235,920,464.23
Add: Provision for impairment of assets 11,419,997.31 13,726,351.33
Depreciation of fixed assets, of oil-gas assets, of productive biological assets 67,451,231.08 61,997,041.15
Amortization of intangible assets 2,893,989.24 2,886,528.31
Amortization of long-term deferred expense 6,551,177.05 13,664,749.38
Losses on disposal of property, plant and equipment, intangible assets and
other -591,204.60 -1,068,313.60
long-term assets (gains: negative)
Losses from changes in fair value (gains: negative) 13,529,790.00 -10,584,660.00
Financial expense (gains: negative) 656,433.57
Investment loss (gains: negative) -56,378,070.46 -38,581,681.44
Decrease in deferred income tax assets (gains: negative) -48,594,610.18 -7,428,614.62
Increase in deferred income tax liabilities (decrease: negative) -2,029,468.50 1,587,699.00
Decrease in inventory (gains: negative) 218,968,580.59 287,313,554.77
Decrease in accounts receivable from operating activities (gains: negative) 34,104,953.91 577,251,722.96
Increase in payables from operating activities (decrease: negative) 276,875,259.82 -205,562,545.65
Net cash flows generated from operating activities 875,221,775.83 931,122,295.82
II. Investing and financing activities that do not involving
-- --
cash receipts and payment:
III. Net increase in cash and cash equivalents -- --
Closing balance of cash 2,114,623,154.82 1,441,520,820.65
Less: Opening balance of cash 1,558,204,866.53 1,293,126,217.00
Net increase in cash and cash equivalents 556,418,288.29 148,394,603.65
(2) Particulars about gain or disposal of subsidiary and other business entities
Unit: RMB Yuan
Appendix information Reporting period Same period of last year
I. Information about gain subsidiary and other business entities -- --
II. Information about disposal of subsidiary and other business entities -- --
1．Cash and cash equivalents of disposal of subsidiary and other business
38,977.14
entities
Less：Cash and cash equivalents held by subsidiary and other business
38,977.14
entities
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Closing amount Opening amount
104
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
I. Cash 2,114,623,154.82 1,558,204,866.53
Including: cash in hand 8,158.18 21,277.15
Bank deposit can be used for payment at any time 2,114,614,996.65 1,558,183,589.38
II. Closing balance of cash and cash equivalents 2,114,623,154.82 1,558,204,866.53
XIII. Relationship and Related Party Transactions
1. Particulars about the parent company
Proportion Proportions
Ultimat
s of parent of parent
e
Name of Relati Enterp Legal company’s company’s
Regist Business Registered controll Organization
parent ons-hi rise represen shareholdi voting right
ration nature capital er of the code
company p nature tative ng to the to the
place compan
company company
y
(%) (%)
Manufacture, sales
Joint Fosha
Midea Parent and after sale He
stock n, Fang
Group Co., compa service of household 1,686,323,389 40.08% 40.08% Xiangji 72247334-4
compa Guang Hongbo
Ltd ny appliances and its an
ny dong
equipments
Note:
According to the 2013 profits allocation preplan of Midea Group, the Midea Group transferred capital reserve to all shareholders up
to15 shares for every 10 shares, after the completion of bonus share, the registered capital increased to RMB 4,215,808,472. As of the
disclosure date of the report, the profits allocation has been completed; however, the industrial and commercial registration change is
still in process.
2. Particulars about the subsidiaries
Register
Sharehol Voting
ed
Registrat Legal ding to right to
Relationsh Business Business capital( Organizatio
Name of subsidiaries ion represen the the
ip type nature RMB n code
place tative compan company
thousand
y (%) (%)
Yuan)
Limited
Wholly-o
Wuxi Little Swan General Electric liability Yin Producti
wned Wuxi 2,800 70.00% 70.00% 76355342-0
Appliances Co. , Ltd. compan Bitong on
subsidiary
y
Wholly-o Limited
Yin Producti 362.46
Wuxi Filin Electronics Co. , Ltd. wned liability Wuxi 73.00% 73.00% 74815875-6
Bitong on (dollars)
subsidiary compan
105
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
y
Limited
Wholly-o
Wuxi Little Swan Washing Machine liability Chai Producti
wned Wuxi 4,967.95 99.91% 99.91% 60792331-1
Co. , Ltd. compan Xinjian on
subsidiary
y
Limited
Wholly-o
Wuxi Meitian Refrigerator Market liability Chai 400(doll
wned Wuxi Trading 75.00% 75.00% 71490141-7
Co., Ltd. compan Xinjian ars)
subsidiary
y
Limited
Wholly-o
Jiangsu Little Swan Marketing and liability Chai
wned Wuxi Trading 41,950 99.63% 99.63% 73330538-9
Sales Co. , Ltd. compan Xinjian
subsidiary
y
Limited
Wholly-o Import
Wuxi Little Swan Import & Export liability Yin
wned Wuxi & 6,500 88.46% 88.46% 13600714-8
Co. , Ltd compan Bitong
subsidiary Export
y
Limited
Wholly-o
Little Swan International liability Singapor Investm 500(doll
wned 100.00% 100.00%
(Singapore) Co., Ltd. compan e ent ars)
subsidiary
y
Limited
Wholly-o
Little Swan (Jingzhou) Electronic liability Yin Producti
wned Jingzhou 1,107.02 100.00% 100.00% 72614223-5
Appliances Co., Ltd. compan Bitong on
subsidiary
y
Limited
Wholly-o
Hefei Midea Washing Machine Co., liability Yin Producti 13,552(d
wned Hefei 69.47% 69.47% 14906761-7
Ltd. compan Bitong on ollars)
subsidiary
y
Limited
Wholly-o
Hefei Midea Washing Machine liability Yin Producti
wned Hefei 2,000 90.00% 90.00% 67423819-7
Manufacture Co., Ltd. compan Bitong on
subsidiary
y
Note：Wuxi Little Swan Washing Machine Co. , Ltd. has been cancelled on July 15, 2014.
3. Information on co-operated or joint operated of the Company
Legal Proportion Relati
Business Registrat Business Registered Proportion of Organizatio
Item represen of holding onshi
Type ion place scope capital voting rights (%) n code
tative shares (%) p
1. Co-operated
2.Joint operated
Attend Logistics Co. Limited Guangzh Ye Logistics 10,000,000. 20.00% 20.00% Assoc 72993557-2
106
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Ltd. liability ou Weilong services 00 iates
company
4. Other related parties of the Company
Name of the parties Relationship Organization code
Midea Group Co., Ltd Company controlling shareholder 72247334-4
Under control of controlling shareholder
Midea Group Finance Co., Ltd 55912326-3
of the Company
Under control of controlling shareholder
Little Swan (Jingzhou) Electronic Appliances Co., Ltd. 70696333-5
of the Company
Under control of controlling shareholder
Hefei Midea Materail Supply Co.,Ltd 55183611-1
of the Company
Under control of controlling shareholder
Hefei Midea Refrigerator Co., Ltd 14906759-6
of the Company
Under control of controlling shareholder
Hefei Hua Ling Share Holding Co. , Ltd. 61031550-1
of the Company
Under control of controlling shareholder
MIDEA ELECTRIC TRADING(SINGAPORE)CO.PTE.LTD
of the Company
Holding shares of controlling
PT. MIDEA PLANET INDONESIA
shareholder of the Company
Holding shares of controlling
MIDEA SCOTT&ENGLISH ELECTRONIICS SDN.BHD
shareholder of the Company
Under control of controlling shareholder
MIDEA CONSUMER ELECTRIC (VIETNAM) CO.,LTD
of the Company
Under control of family member close
Hefei Bainian Molding Technology Co., Ltd. 66293360-0
to the actual controller
Foshan Shunde District Bainian Technology Development Co., Under control of controlling shareholder
70807868-X
Ltd. of the Company
Foshan Shunde District Bainian Tongchuang Plastic Industrial Under control of controlling shareholder
79462671-7
Co., Ltd. of the Company
Under control of controlling shareholder
Ningbo Annto Logistics Co. Ltd. 57051088-9
of the Company
Under control of controlling shareholder
Huai'an Welling Motor Manufacturing Co., Ltd. 75968160-6
of the Company
Under control of controlling shareholder
Hubei Midea Refrigerator Co., Ltd. 70696333-5
of the Company
Under control of controlling shareholder
Wuhu Bainian Technology Development Co., Ltd. 75096265-5
of the Company
Annto Logistics Co. Ltd. Under control of controlling shareholder 71992943-5
107
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
of the Company
Under control of controlling shareholder
Guangdong Midea Refrigeration Equipment Co., Ltd 72547107-X
of the Company
Under control of controlling shareholder
Ningbo Midea United Material Supply Co., Ltd 56701636-1
of the Company
5. Related party transactions
(1) Purchase of goods, services received among the related-party
Unit: RMB Yuan
Amount of this period Amount of last period
Pricing Proportion
Content of Proportion in
principle of in
Name of company related transactions
related Amount transactions Amount
transaction of the same
parties of the same
kind
kind
Logistics serv
Ningbo Annto Logistics Co. Ltd. Market price 37,152,578.97 1.15% 48,196,839.91 1.93%
ice
Material
Hubei Midea Refrigerator Co. Ltd. Market price 770,148.67 0.02% 5,437,926.04 0.22%
purchase
Electrical
Huai'an Welling Motor Manufacturing Machine&
Market price 191,827,058.83 5.95% 188,867,242.92 7.56%
Co., Ltd. Material
purchase
Hefei Midea Materials Supply Co., Material
Market price 79,038,575.14 2.45% 157,245,794.25 6.30%
Ltd. purchase
Ningbo Midea United Material Material
Market price 114,393,353.84 3.55%
Supply Co., Ltd purchase
Hefei Hua Ling Share Holding Co. , Material
Market price 40,259.03 0.00%
Ltd. purchase
Annto Logistics Share Holdings Co. Logistics
Market price 88,989.25 0.00% 645,694.94 0.03%
Ltd. service
Guangdong Midea Environment Material
Market price 4,288,888.90 0.13%
Appliances Co. Ltd. purchase
Hefei Bainian Molding Technology Material
Market price 48,789,326.26 1.95%
Co., Ltd. purchase
Hefei Huitong Energy-saving Material
Market price 43,917,322.82 1.76%
Materials Co., Ltd. purchase
Total 432,816,946.64 13.42% 493,100,147.11 19.75%
108
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Sales of goods, services provided among the related-party
Unit: RMB Yuan
Amount of this period Amount of last period
Pricing Proportion
Content of Proportion in
principle of in
Name of company related transactions
related Amount transactions Amount
transaction of the same
parties of the same
kind
kind
Hefei Bainian Molding Technology
Market price 16,666,419.17 0.42%
Co., Ltd.
Hefei Midea Refrigerator Co., Ltd Market price 28,879.20 0.00%
Huai'an Welling Motor
Market price 51,192.77 0.00% 64,330.59 0.00%
Manufacturing Co., Ltd.
Sales of
MIDEA ELECTRIC TRADING Sales of
washing 676,907,927.34 13.61% 517,236,107.28 12.94%
(SINGAPORE)CO.PTE.LTD materials
machines
Hefei Huitong Energy-saving Sales of Sales of
8,051,388.90 0.20%
Materials Co., Ltd. materials materials
Hefei Hua Ling Share Holding Co. , Sales of Sales of
330,788.91 0.01%
Ltd. materials materials
Sales of
PT. MIDEA PLANET INDONESIA washing Market price 2,055,545.17 0.04% 6,816,739.22 0.17%
machines
Sales of
MIDEA SCOTT&ENGLISH
washing Market price 12,553,510.03 0.25% 7,439,098.97 0.19%
ELECTRONIICS SDN.BHD
machines
Sales of
MIDEA CONSUMER ELECTRIC
washing Market price 816,211.03 0.02%
(VIETNAM) CO.,LTD
machines
Total 692,384,386.35 13.92% 556,633,752.25 13.92%
(2) Details of property transfer and debt restructuring between related parties
Unit: RMB Yuan
Pricing Amount of
Amount of last period
decision-m current period
Type of Content of
aking Proportion in
Related party related related Proportion in
procedure similar
transaction transaction Amount similar Amount
of related transactions
transactions (%)
transaction (%)
Handan Midea Refrigeration Asset transf Sales of Market 840,577.60 5.01%
109
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Equipment Co., Ltd. erring equipment price
Wuhu Bainian Technology Asset Sales of Market 2,293,061.0
13.65%
Development Co., Ltd. transferring equipment price 7
Foshan Shunde District Bainian Asset Sales of Market 1,361,792.3
8.11%
Technology Development Co., Ltd. transferring equipment price 5
Foshan Shunde District Bainian Market
Asset Sales of 3,249,127.4
Tongchuang Plastic Industrial Co., price 19.35%
transferring equipment 7
Ltd.
7,744,558.4
Total 46.11%
9
6. Amount due to/from related parties
Receivable from the related parties
Unit: RMB Yuan
Closing amount Opening amount
Item Name of related parties Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts rece MIDEA ELECTRIC TRADING
289,064,145.28 14,453,207.26 216,980,362.32 10,802,299.01
ivable (SINGAPORE)CO.PTE.LTD
Accounts MIDEA SCOTT&ENGLISH
7,845,232.18 392,261.61 10,020,687.97 125,393.20
receivable ELECTRONILCS SDN.BHD
Accounts rece
PT MIDEA PLANET INDONESIA 801,605.24 40,080.26 2,507,863.97 501,034.40
ivable
Accounts MIDEA CONSUMER ELECTRIC
844,303.34 42,215.17 4,651.08 232.55
receivable (VIETNAM) CO.,LTD
Accounts
Hefei Midea Refrigerator Co. Ltd. 1,788.06 357.61
receivable
Total 298,555,286.04 14,927,764.30 229,515,353.40 11,429,316.77
Receivable in Hefei Midea Materials Supply Co.,
308.96 3,074,917.50
advance Ltd.
Receivable in Ningbo Midea United Material
15,845,206.76
advance Supply Co., Ltd
Receivable in
Ningbo Annto Logistics Co. Ltd. 16,406.87
advance
Total 15,845,515.72 3,091,324.37
Payable to the related parties
Unit: RMB Yuan
Item Name of related parties Closing amount Opening amount
110
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Accounts
Hefei Midea Materials Supply Co., Ltd. 1,339,438.80 60,510,586.85
receivable
Accounts
Huai'an Welling Motor Manufacturing Co., Ltd. 44,912,510.57 39,169,018.59
receivable
Accounts
Hefei Hua Ling Share Holding Co. , Ltd. 510,238.62
receivable
Accounts Foshan Shunde District Bainian Technology Development Co.,
276,400.00 276,400.00
receivable Ltd.
Accounts
Hefei Bainian Molding Technology Co., Ltd. 172,082.75
receivable
Accounts
Ningbo Annto Logistics Co. Ltd. 128,380.63 144,787.50
receivable
Accounts
Annto Logistics Share Holding Co. Ltd. 81,649.55 90,630.06
receivable
Accounts
Ningbo Midea United Material Supply Co., Ltd 1,068,111.50
receivable
Accounts
Hubei Midea Refrigerator Co., Ltd 291,120.87
receivable
Total 47,806,491.05 101,164,865.24
Receivable
MIDEA ELECTRIC TRADING(SINGAPORE)CO.PTE.LTD 1,050,573.11 56,655,613.54
in advance
Receivable
MIDEA SCOTT&ENGLISH ELECTRONILCS SDN.BHD 30,931.47
in advance
Total 1,050,573.11 56,686,545.01
Other
accounts Midea Group Co., Ltd 0.00 390,636.00
receivable
Total 0.00 390,636.00
IX. Share-based payment
1. Overall of share-based payment
Note to share-based payment
During the reporting period, the Midea Group and the high-level management personnel and technical backbone personnel of its
subsidiaries implemented stock options incentive plan and authorized the incentive personnel stock options 40.602 million According
to the announcement of the Midea Group on 19 Feb 2014 and 27 May 2014, due to the demission of 12 incentive personnel before
using their rights, they were no longer incentive personnel and the related stock options 657000 were written off. The stock options
authorized to incentive personnel was adjusted to 39.945 million. In the year of 2013, the Midea Group distributed RMB 20 in cash
for every 10 shares to all shareholders meanwhile transferred capital reserve up to 15 shares for every 10 shares. The equity
111
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
allocation plan had been conducted on 30 Apr. 2014, according to the stipulation of Company stock options incentive plan (draft)
disclosed by the Midea Group, after the equity distribution, the stock options was adjusted to 999.8625 million.
As of the disclosure date of the report, the Company and its subsidiaries in the stock options incentive plan authorized incentive
personnel 6.2325 million stock options
2. Share-based payment by equity method
Unit: RMB Yuan
Recognition method of the authorized fair value of the equity
Adjusted based on market price
instruments
Accumulative amount of share-base payment by equity method
38,623,251.88
in capital reserve
Total amount recognized through share-base payment by equity
39,059,948.33
method
3. Service as a result of share-based payment
Unit: RMB Yuan
The total amount of the employee services as a result of
39,059,948.33
share-based payment
X. Contingencies
1The contingent liability and its financial impact arising from unsettled litigation or arbitration
Hefei Dongya Windows, Doors, Curtain Walls Decoration Co., Ltd had the project construction work contract dispute with Jiangsu
Hongda Construction Group Co., Ltd and Hefei Midea Washing Machine Co., Ltd and Applied for litigation preservation from the
people's court of Feixi County, Anhui Province; the subsidiary Hefei Midea Washing Machine Co., Ltd ‘s bank deposit RMB 620000
was frozen by the court.
2. The contingent liability and its financial impact arising from providing debt guarantees to other units
(1) According to the subsidiary's financial requirement of the production and operation and the needs of the business development, th
e company submits an application to the bank for the issuance of banker’s acceptance bills RMB709000 providing guaranteed for He
fei Midea Washing Machine Co, Ltd.
(2) The Company pledges a deposit of RMB 3.4732 million
to the Bank of China a Ltd. Wuxi Branch for the issuance of bank acceptance bills.
(3) The Company pledges a deposit of RMB 313500 to Wuxi Branch of Agricultural Bank of China
Co.,Ltd. for the issuance of bank acceptance bills.
XI. Commitments
1. Significant commitments
As of 31, Dec, 2014, no significant commitments should be disclosed.
112
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
XII. Other significant events
1. Assets and liabilities measured by fair value
Unit: RMB Yuan
Gains and losses of The cumulative fair Provision for
Item Opening amount fair value in this value recognized in impairment in this Closing amount
period equity movements period
1.Financial assets
1. Derivative financial
15,016,740.00 -13,529,790.00 1,486,950.00
assets
2. Financial assets
312,816.00 61,152.00 128,659.40 251,664.00
available for sale
Total 15,329,556.00 -13,468,638.00 128,659.40 1,738,614.00
Financial liabilities 0.00 0.00
2. Financial liabilities and foreign financial liabilities
Unit: RMB Yuan
Gains and losses of The cumulative fair Provision for
Item Opening amount fair value in this value recognized in impairment in this Closing amount
period equity movements period
Financial assets
1. Derivative financial
15,016,740.00 -13,529,790.00 1,486,950.00
assets
Subtotal of financial
15,016,740.00 -13,529,790.00 1,486,950.00
assets
Financial liabilities 0.00 0.00 0.00
XIII. Notes to the financial statements of Parent Company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Closing balance Opening balance
Book value Provision for bad debts Book value Provision for bad debts
Items
Proport Proportio Proporti Proporti
Amount Amount Amount Amount
ion n on on
Account receivable with consolidated provision for bad debt
Consolidation 1: aging
381,742,210.02 76.72% 19,124,409.26 5.01% 404,535,014.38 52.60% 20,348,820.07 5.03%
consolidation
Consolidation 2: account 104,175,323.01 20.94% 347,260,005.38 45.16%
113
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
received in the range of
consolidated statements
Subtotal of consolidation 485,917,533.03 97.65% 19,124,409.26 3.94% 751,795,019.76 97.76% 20,348,820.07 2.71%
Account receivable with
100.00
small individual amount 11,693,283.11 2.35% 11,693,283.11 100.00% 17,241,527.92 2.24% 17,241,527.92
%
and provision for bad debt
Total 497,610,816.14 -- 30,817,692.37 -- 769,036,547.68 -- 37,590,347.99 --
Account receivable with large individual amount and provision for bad debt at the end of period
□ Applicable √ Inapplicable
Account receivable in the consolidation with provision for bad debt by aging analysis method:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Aging Book balance Provision for bad Book balance Provision for bad
Amount Proportion debts Amount Proportion debts
Within 1 year
Including: -- -- -- -- -- --
Subtotal of
381,031,054.70 99.81% 19,051,552.53 402,093,647.22 99.40% 20,104,682.36
within 1 year
1 to 2 years 706,801.51 0.19% 70,680.15 2,441,359.96 0.60% 244,136.00
2 to 3 years 1.60 0.00% 0.48 6.53 0.00% 1.31
Over 3 years 4,352.21 0.00% 2,176.10 0.67 0.00% 0.40
Total 381,742,210.02 -- 19,124,409.26 404,535,014.38 -- 20,348,820.07
Account receivable in the consolidation with provision for bad debt by balance percentage method:
□ Applicable √ Inapplicable
Account receivable in the consolidation with provision for bad debt by other method:
□ Applicable √ Inapplicable
Account receivable with small individual amount and provision for bad debt at the end of period
√Applicable □ Inapplicable
Unit: RMB Yuan
Amount of bad
Content of account receivable Book balance Proportion (%) Reason
debt
Difficult to
CGNPC Engineering Co., Ltd 853,104.00 853,104.00 100.00%
recover
Difficult to
Chongqing Taizheng Group Co., Ltd 851,500.00 851,500.00 100.00%
recover
Difficult to
Chongqing R&F Properties Co., Ltd 1,675,800.00 1,675,800.00 100.00%
recover
Chongqing Zhongcheng Properties Development Co., Difficult to
1,655,000.00 1,655,000.00 100.00%
Ltd recover
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Hunan Huitang Hot Spring Huatiancheng Properties Difficult to
6,657,879.11 6,657,879.11 100.00%
Co., Ltd and such 61 portals recover
Total 11,693,283.11 11,693,283.11 -- --
(2) Particulars about account receivable returned or withdrawn in the reporting period
Unit: RMB Yuan
Foundation to Accumulated amount
Amount
Reason of return confirm of provision for bad
Content of account receivable returned or
or withdrawal provision debt before return or
withdrawn
for bad debt withdrawal
Estimated
Foshan City Shunde District Midea HVAC Equipment Negotiated
difficult to 0.30 0.30
Co., Ltd. (Stop) collection
recover
Estimated
CNOOC Energy Technology & Services - Catering & Negotiated
difficult to 57,662.50 57,662.50
Support Services Co., Ltd collection
recover
Estimated
Negotiated
China Nuclear Power Engineering Co., Ltd difficult to 150,500.00 107,500.00
collection
recover
Estimated
Chongqing Wanzhou Wanda Hotel Management Co., Negotiated
difficult to 303,092.00 187,569.00
Ltd collection
recover
Estimated
Hunan Huitang Hot Spring Huatiancheng Properties Negotiated
difficult to 1,272,000.00 260,000.00
Co., Ltd collection
recover
Estimated
Negotiated
Tangshan Wanda Investment Real Estate Co., Ltd difficult to 531,488.00 472,116.00
collection
recover
Estimated
Negotiated
Hangzhou Xixi Investment Development Co., Ltd difficult to 745,584.30 521,909.01
collection
recover
Estimated
Negotiated
Chongqing Taizheng Group Co., Ltd difficult to 1,851,500.00 1,000,000.00
collection
recover
Estimated
Hangzhou Xihu District Xixi Welt Land Negotiated
difficult to 1,427,004.00 1,427,004.00
Comprehensive Protection Project Headquarters collection
recover
Estimated
Negotiated
CGNPC Engineering Co., Ltd difficult to 2,367,588.00 1,514,484.00
collection
recover
Total -- -- 8,706,419.10 --
115
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(3) Top 5 companies with largest amount of account receivable
Unit: RMB Yuan
Proportion in total
Company name Relationship Amount Years limit amount of account
receivable (%)
Hefei Midea Washing Machine Co., Ltd Subsidiary 96,411,504.02 Within 1 year 19.37%
Suning Yunshang Group Co., LTD. Suning Non-related
84,479,958.13 Within 1 year 16.98%
Purchasing Center party
MIDEA ELECTRIC TRADING Non-related
42,301,936.23 Within 1 year 8.50%
(SINGAPORE)CO.PTE.LTD party
Kunming Midea Refregeration Equipments Non-related
17,326,247.18 Within 1 year 3.48%
Sales Co., Ltd party
Jilin province Midea Refregeration Non-related
14,057,381.36 Within 1 year 2.82%
Equipments Sales Co., Ltd party
Total -- 254,577,026.92 -- 51.15%
(4) Account receivable from related parties
Unit: RMB Yuan
Proportion in total amount
Company name Relationship Amount
of account receivable (%)
MIDEA ELECTRIC TRADING Holding shares of controlling
42,301,936.23 8.50%
(SINGAPORE)CO.PTE.LTD shareholder of the Company
MIDEA SCOTT&ENGLISH ELECTRONIICS Holding shares of controlling
228,785.78 0.05%
SDN.BHD shareholder of the Company
Holding shares of controlling
PT. MIDEA PLANET INDONESIA 325,298.54 0.07%
shareholder of the Company
Hefei Midea Washing Machine Co., Ltd Subsidiary 96,411,504.02 19.37%
Total -- 139,267,524.57 27.99%
2. Other receivables
(1) Other receivables
Unit: RMB Yuan
Closing balance Opening balance
Book value Provision for bad debts Book value Provision for bad debts
Items
Proporti Proporti Proporti Proportio
Amount Amount Amount Amount
on on on n
Other receivables with consolidated provision for bad debt
Consolidation 1: aging 22,890,885.90 22.44% 2,423,262.89 10.59% 20,350,003.60 20.45% 1,597,802.77 7.85%
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
consolidation
Consolidation 2: other
receivables in the range of 79,112,973.93 77.56% 79,112,973.93 100.00% 79,150,338.65 79.55% 79,150,338.65 100.00%
consolidated statements
Subtotal of consolidation 102,003,859.83 100.00% 81,536,236.82 79.93% 99,500,342.25 100.00% 80,748,141.42 100.00%
Total 102,003,859.83 -- 81,536,236.82 -- 99,500,342.25 -- 80,748,141.42 --
Note to type of other receivables:
Naught.
Other receivables with large individual amount and provision for bad debt at the end of period:
□Applicable √ Inapplicable
Other receivables in the consolidation with provision for bad debt by aging analysis method:
√ Applicable □ Inapplicable
Unit: RMB Yuan
Closing balance Opening balance
Book balance Book balance
Aging Provision for bad Provision for bad
Proporti Proporti
Amount debts Amount debts
on on
Within 1 year
Including: -- -- -- -- -- --
Subtotal 9,831,062.11 42.95% 491,553.10 18,164,493.72 89.26% 908,224.69
1 to 2 years 11,264,946.91 49.21% 1,126,494.69 1,145,035.00 5.63% 114,503.50
2 to 3 years 746,052.00 3.26% 223,815.60 165,000.00 0.81% 33,000.00
Over 3 years 934,850.76 4.08% 467,425.38 833,500.76 4.10% 500,100.46
3 to 4 years 113,974.12 0.50% 113,974.12 41,974.12 0.21% 41,974.12
Over 5 years 22,890,885.90 -- 2,423,262.89 20,350,003.60 -- 1,597,802.77
Other receivables in the consolidation with provision for bad debt by balance percentage method:
□ Applicable √ Inapplicable
Other receivables in the consolidation with provision for bad debt by other methods:
□ Applicable √Inapplicable
Other receivables with small individual amount and provision for bad debt at the end of period:
□ Applicable √Inapplicable
(2) Top 5 companies with largest amount of other receivables
Unit: RMB Yuan
Proportion in total amount of
Company name Relationship Amount Term
account receivable (%)
Ministry of Industry and
Government sector 10,128,571.10 Within 1 year 9.93%
Information
Wang Ruiqun Staff 2,588,000.00 Within 1 year 2.54%
Wuxi Huarun Gas Co., Ltd. Partner 1,212,830.80 Within 1 year 1.19%
Huang Qingqing Staff 829,671.14 Within 1 year 0.81%
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
The CPC Hunan Provincial
Party Committee Party Government sector 400,000.00 Within 1 year 0.39%
School,
Total -- 15,159,073.04 -- 14.86%
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
3. Long-term equity investments
Unit: RMB Yuan
Explanations on
differences Accrued
Proporti
Proportion between impairm Cash
Amount of Initial Increase/ ons of Impairment
Invested entities Method Opening amount Closing amount of voting shareholding ent dividend
investment decrease sharehol provision
rights (%) proportion and provisio s
ding (%)
voting right n
proportion
Guangzhou Antaida Logistical Co., Equity
2,000,000.00 3,169,148.88 19,847.57 3,188,996.45 20.00% 20.00%
Ltd. method
Wuxi Little Swan Import & Export Cost
57,500,000.00 57,500,000.00 57,500,000.00 88.46% 88.46%
Co. , Ltd method
Wuxi Little Swan Washing Machine Cost
37,259,587.50 75.00% 75.00% 37,259,587.50
Co. , Ltd. method
Wuxi Meitian Refrigerator Marketing Cost
24,840,000.00 75.00% 75.00% 24,840,000.00
and Sale Co., Ltd. method
Jiangsu Little Swan Marketing and Cost
417,550,000.00 417,550,000.00 417,550,000.00 99.54% 99.54%
Sales Co. , Ltd. method
Cost
Wuxi Filin Electronics Co. , Ltd. 19,620,041.50 25,660,308.10 25,660,308.10 73.00% 73.00%
method
Wuxi Little Swan General Electric Cost
19,600,000.00 19,600,000.00 19,600,000.00 70.00% 70.00%
Appliances Co. , Ltd. method
San Jin(Jing Zhou) Electrical Cost 11,869,431.12 11,869,431.12 11,869,431.12 100.00% 100.00%
119
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Appliances Co. , Ltd. method
Little Swan International(Singapore) Cost
34,052,500.00 34,052,500.00 34,052,500.00 100.00% 100.00%
Co., Ltd. method
Hefei Royalstar Washing Equipment Cost
830,962,252.35 830,962,252.35 830,962,252.35 69.47% 69.47%
Manufacturing Co., Ltd method
Tianjin Little Swan Washing Machine Cost
200,000,000.00 200,000,000.00 -200,000,000.00 0.00 100.00% 100.00%
Co. , Ltd. method
Suzhou People's Shopping Cost
150,000.00 150,000.00 150,000.00
Mall(100,000 shares) method
Bank of Jiangsu Inc. (2,202,564 Cost
1,100,000.00 1,210,000.00 1,210,000.00
shares) method
Total -- 1,656,503,812.47 1,601,723,640.45 -199,980,152.43 1,401,743,488.02 -- -- -- 62,099,587.50
Note: Wuxi Little Swan Washing Machine Co. , Ltd. had been cancelled on 15 Jul. 2017.
120
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
4. Operating revenues and costs
(1) Operating revenues and costs
Unit: RMB Yuan
Item Reporting period Same period of last year
Revenue from main business 3,402,936,436.54 2,727,383,248.53
Revenue from other business 239,763,786.41 183,019,115.33
Total 3,642,700,222.95 2,910,402,363.86
Operating costs 2,718,742,930.62 2,197,383,259.40
(2) Main business (by industry)
Unit: RMB Yuan
Reporting period Same period of last year
Industry
Operating income Operating costs Operating income Operating costs
Household appliances
3,402,936,436.54 2,497,703,786.49 2,727,383,248.53 2,027,184,268.86
Manufacturing
Total 3,402,936,436.54 2,497,703,786.49 2,727,383,248.53 2,027,184,268.86
(3) Main business (by product)
Unit: RMB Yuan
Reporting period Same period of last year
Product
Operating income Operating costs Operating income Operating costs
Washing machine 3,402,936,436.54 2,497,703,786.49 2,727,383,248.53 2,027,184,268.86
Total 3,402,936,436.54 2,497,703,786.49 2,727,383,248.53 2,027,184,268.86
(4) Main business (by region)
Unit: RMB Yuan
Reporting period Same period of last year
Region
Operating income Operating costs Operating income Operating costs
Domestic 3,032,491,395.17 2,157,882,349.17 2,441,391,796.73 1,761,028,103.60
Other countries 370,445,041.37 339,821,437.32 285,991,451.80 266,156,165.26
Total 3,402,936,436.54 2,497,703,786.49 2,727,383,248.53 2,027,184,268.86
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
(5) Operating revenues of the top 5 clients of the company
Unit: RMB Yuan
Proportion in total
Name of client Total operating revenues
operating revenue (%)
Suning Yunshang Group Co., LTD. Suning Purchasing Center 324,363,654.31 8.90%
MIDEA ELECTRIC TRADING SINGAPORE)CO.PTE.LTD 262,458,087.19 7.21%
Beijing Jingdong Century Information Technology Co., Ltd. 92,580,624.78 2.54%
Guizhou Midea Refrigeration Sales Co., Ltd. 67,985,002.52 1.87%
PAKSHOMA COMPANY 63,556,770.56 1.74%
Total 810,944,139.36 22.26%
5. Investment income
(1) Details of investment income
Unit: RMB Yuan
Item Reporting period Same period of last year
Income from long-term equity investment calculated by cost
50,000.00
method
Income from long-term equity investment calculated by
19,847.57 53,125.03
equity method
Investment income from disposal of long term equity
-8,513,054.48
investment
Investment income gained during the period of holding
2,341,450.00 3,071,840.00
marketable financial assets
Others 29,625,630.07 19,567,723.65
Total 23,473,873.16 22,742,688.68
(2) Income from long-term equity investment calculated by cost method
Unit: RMB Yuan
Same period of last Reason of increase/decrease in current
Invested company Reporting period
year period
Suzhou People’s Department Store 50,000.00
Total 50,000.00 --
(3) Income from long-term equity investment calculated by equity method
Unit: RMB Yuan
122
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Same period of last Reason of increase/decrease in current
Invested company Reporting period
year period
Guangzhou Antaida Logistical Co., Ltd. 19,847.57 53,125.03
Total 19,847.57 53,125.03 --
6. Appendix of Cash Flow Statement
Unit: RMB Yuan
Item Reporting period Same period of last year
1. Reconciliation of net profit to net cash flows generated from operating
-- --
activities
Net profit 227,125,958.29 175,420,207.11
Add: Provision for impairment of assets -5,948,475.57 2,850,533.92
Depreciation of fixed assets, of oil-gas assets, of productive biological
34,895,098.81 29,124,372.80
assets
Amortization of intangible assets 1,461,305.51 1,398,648.06
Amortization of long-term deferred expense 8,753,810.65 11,994,070.95
Losses on disposal of property, plant and equipment, intangible assets and
other -1,895,918.10 9,094.71
long-term assets(gains: negative)
Loss from fair value change (gains: negative) 7,835,910.00 -6,513,520.00
Finance expense (gains: negative) 656,433.57
Investment loss(gains: negative) -23,473,873.16 -22,742,688.68
Decrease in deferred income tax assets(gains: negative) -28,522,173.33 -8,247,791.44
Increase in deferred income tax liabilities(decrease: negative) -1,175,386.50 977,028.00
Decrease in inventory(gains: negative) 174,934,408.77 210,786,341.44
Decrease in accounts receivable from operating activities(gains: negative) 31,340,893.17 257,042,104.21
Increase in payables from operating activities(decrease: negative) 124,904,484.60 48,743,611.37
Net cash flows generated from operating activities 550,892,476.71 700,842,012.45
II. Investing and financing activities that do not involving
-- --
cash receipts and payment:
III. Net increase in cash and cash equivalents -- --
Closing balance of cash 1,293,828,638.93 804,050,801.77
Less: Opening balance of cash 882,413,120.18 848,257,647.96
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 411,415,518.75 -44,206,846.19
XIV. Supplementary information
1. List of non-recurring gains and losses in the period
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Unit: RMB Yuan
Item Amount Notes
Loss and gains on disposal of non-current assets (Including write-off part of
-1,184,389.51
the provision for asset impairment)
Governmental subsidy included in the current profits and losses(is closely
related with the business event, except for the governmental subsidy that
6,454,141.22
according to the national unity standard quota or the quantitative regal
assets)
Gains and losses of committing others of investment or managing assets 52,412,042.89
The reversal of impairment of receivables of the individual impairment test 1,688,200.34
Income and expenses of the other operation except for the mentioned above 5,548,244.81
The other items of gains and losses conforming the definition of
1,652,425.93
non-recurring gains and losses
Less：the effect of income tax -5,809,948.33
the effect of minority interest (after tax) 9,985,599.85
Loss and gains on disposal of non-current assets (Including write-off part of
6,914,582.47
the provision for asset impairment)
Governmental subsidy included in the current profits and losses(is closely
related with the business event, except for the governmental subsidy that
43,860,535.03 --
according to the national unity standard quota or the quantitative regal
assets)
The government subsidies included in the current profits and losses was the current profits and losses project, which shall be
disclosed with recognition reason.
□ Applicable √ Inapplicable
2. Return on equity and earnings per share
Unit: RMB Yuan
Weighted average return Earnings per share
Profits in the reporting period
on equity (%) Basic EPS Diluted EPS
Net profits belonging to shareholders of common shares 7.78% 0.50 0.50
Net profits belonging to shareholders of common shares
6.70% 0.43 0.43
after deducting non-recurring profit and loss
3. Main items in the accounting statements and movements thereof
Unit: RMB Ten thousand
30 Jun. 31 Dec.
2014/ 2013/ Increase/de Increase/decreas
Item Reasons for movement
Jan.-Jun. Jan.-Jun. crease e (%)
2014 2013
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2014 Semi-annual Report of Wuxi Little Swan Company Limited.
Operating activities net cash flows greatly
Monetary capital 216,529.51 161,737.31 54,792.20 34%
increased
Affected by exchange rate fluctuations,
Tradable financial foreign currency forward contracts fair value
148.70 1,501.67 -1,352.98 -90%
assets decreased and the foreign currency forward
contracts signed with the bank decreased
Long-term
346.65 714.78 -368.13 -52% The mold amortization, book value decreased
deferred expense
Payment since the opening bank acceptance
Note payable 86,824.07 38,567.31 48,256.75 125%
way increased in the reporting period
Receivable in Affected by the sales cycle, deferred revenue
43,953.59 105,795.26 -61,841.67 -58%
advance had decreased
Received relocating &rebuilding
Special account
378.40 207.40 171.00 82% compensation for this issue in the reporting
payable
period
Deferred income The book value of tradable financial assets
24.57 228.44 -203.86 -89%
tax liabilities decreased
Increased in line with the increase of sales
Sales expense 70,887.22 53,996.61 16,890.61 31%
income
Financial expense -989.98 2,014.31 -3,004.29 -149% Exchange rate change, exchange loss reduced
Assets
1,142.00 1,372.64 -230.64 -17% Raw material price loss reduced
impairment loss
Gains on the
Gains on the changes in the fair value of the
changes in the fair -1,352.98 1,058.47 -2,411.45 -228%
foreign currency forward contracts reduced
value
As the increase of bank of financial products
Investment
5,637.81 3,858.17 1,779.64 46% and yield rate, the income of bank financial
income
products increased
Non-operating Gains on the disposal of fixed assets and
1,161.42 1,765.09 -603.67 -34%
income penalty was less than that in last year
Non-operating
474.82 743.25 -268.43 -36% Decreased in the disposal of fixed assets
expenses
Other
Exchange rate changes and changes of
comprehensive 22.60 -56.97 79.57 140%
translation reserve
income
The net cash flow
The financial products pay in cash and cash
from investment -13,449.52 -60,014.40 46,564.88 78%
due to recover were comparatively balance
activities
125
2014 Semi-annual Report of Wuxi Little Swan Company Limited.
X. Documents Available for Reference
1. Text of the Semi-annual Report 2014 with the signature of the Chairman of the Board of Directors.
2. Accounting statements with signatures and seals of the legal representative, the chief financial officer and the
head of accounting.
3. Originals of all documents and announcements of the Company ever disclosed on Securities Times and Hong
Kong Ta Kung Pao in the reporting period.
Wuxi Little Swan Co., Ltd.
Legal Representative: Fang Hongbo
5 Aug. 2014
126
