2016 Semi-annual Report of Wuxi Little Swan Company Limited
Wuxi Little Swan Company Limited
2016 Semi-annual Report
August 2016
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
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, Mr. Sun Yunan, CFO, and Mr. Xu Yunwei, 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.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Contents
Section I Important Reminders, Contents & Explanation ............................................................. 2
Section II Company Profile ............................................................................................................... 5
Section III Highlights of Accounting Data & Financial Indicators ............................................... 7
Section IV Report of the Board of Directors ................................................................................... 9
Section V. Significant Events ........................................................................................................... 20
Section VI. Change in Shares & Shareholders .............................................................................. 30
Section VII. Directors, Supervisors, Senior Management Staffs ................................................. 34
Section IX. Documents Available For Reference ......................................................................... 121
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Explanation
Term Refers to Contents
Company or the Company Refers to Wuxi Little Swan Company Limited
Midea Group Refers to Midea Group Co., Ltd.
Titoni Refers to Titoni Investments Development Ltd.
Midea Group Finance Refers to Midea Group Finance Co., Ltd.
Midea Holding Refers to GD Midea Holding Co., Ltd.
Hefei Midea Washing Machine Refers to Hefei Midea Washing Machine Co., Ltd.
Wuxi Little Swan General Appliance Refers to Wuxi Little Swan General Appliance Co., Ltd.
Wuxi FILIN Electronics Refers to Wuxi FILIN Electronics Co., Ltd.
Guangzhou Attend Logistics Refers to Guangzhou Attend Logistics Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
Reporting period Refers to 1 January 2016-30 June 2016
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section II Company Profile
I Basic information about the Company
Stock name Little Swan A, Little Swan B Stock code 000418, 200418
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 无锡小天鹅股份有限公司
Abbreviation (if any) 小天鹅
Company name in English (if
Wuxi Little Swan Company Limited
any)
Legal representative Mr. Fang Hongbo
II Contact information
Board Secretary Securities Representative
Name Ms. Zhou Sixiu Mr. Zhao Yulin
No. 18, Changjiang Road S., National Hi-tech No. 18, Changjiang Road S., National Hi-tech
Address Development Zone, Wuxi, Jiangsu Province, P.R. Development Zone, Wuxi, Jiangsu Province,
China P.R. China
Tel. 0510-81082320 0510-81082377
Fax 0510-83720879 0510-83720879
E-mail ir@littleswan.com.cn ir@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 √ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the Reporting Period.
On 10 August 2016, we disclosed the Announcement on Change of Company Email Address to change our email
address from ―ir_littleswan@littleswan.com.cn‖ to ―ir@littleswan.com.cn‖. The new email address has been put
into use since the announcement date, and the old one can be used until 30 September 2016 for transition.
Investors are kindly reminded to note that.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
2. About information disclosure and the place where this report is kept
Did any change occur to information disclosure media and the place where this report is kept during the reporting
period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the place where this report is kept did not change during the reporting period. The said
information can be found in the 2015 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable √ Not applicable
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 2015
Annual Report.
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2016 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) 7,984,787,194.92 6,101,903,864.60 30.86%
Net profit attributable to shareholders of the
580,826,562.58 430,694,268.55 34.86%
Company (RMB)
Net profit attributable to shareholders of the
Company after excluding extraordinary gains and 567,444,003.06 369,115,221.99 53.73%
losses (RMB)
Net cash flows from operating activities (RMB) 1,607,097,392.88 1,365,269,483.46 17.71%
Basic EPS (RMB/share) 0.92 0.68 35.29%
Diluted EPS (RMB/share) 0.92 0.68 35.29%
Weighted average ROE (%) 10.82% 9.28% 1.54%
As at the end of the
As at the end of last year +/- (%)
reporting period
Total assets (RMB) 15,482,781,637.01 14,327,655,366.60 8.06%
Net assets attributable to shareholders of the
5,372,739,501.53 5,124,866,173.14 4.84%
Company (RMB)
Notes: In the fourth quarter of 2015, ―to make financial investments with the Company’s own funds‖ was added to
the business scope of the Company. As such, gains/losses on financial investments have been restated as recurrent
gains/losses. In order to help investors better understand the business results of the Company, the ―net profit
attributable to shareholders of the Company after excluding extraordinary gains and losses‖ of the same period of
last year is restated as follows with the same caliber:
Unit: RMB
Reporting period Same period of last year YoY +/- (%)
Net profit attributable to shareholders of the Company
567,444,003.06 422,382,161.29 34.34%
after excluding extraordinary gains and losses
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
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 √ Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
No difference.
III Items and amounts of extraordinary gains and losses
Unit: RMB
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the offset part of asset
-121,746.30
impairment provisions)
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to 19,387,917.07
the country’s unified standards
Non-operating income and expenses other than the above 1,742,326.88
Less: Income tax effects 3,151,274.65
Minority interests effects (after tax) 4,474,663.48
Total 13,382,559.52 --
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 √ Not applicable
No such cases.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section IV Report of the Board of Directors
I Overview
(I) Macro-environment
In the first half of 2016, the slowdown of macro-economic growth, the deepening divide in the real estate market,
the continuous volatility of raw material prices and the wider fluctuations of the exchange rate of RMB posed a
bigger challenge to the home appliance sector.
In the period, transformation and upgrade remained the theme for the sector. As middle-class consumers kept
growing and those born in 1980s and 1990s grew up, demand for high-end, fashionable, individualized and
diversified home appliances was increasing. Roller, large-capacity, inverter and smart washing machines, as well
as drying machines, were developing fast, which created tremendous market opportunities. The digital and smart
technologies continued to boost reform of the manufacturing model of home appliances, and ―machines instead of
human‖ and ―smart manufacturing‖ kept improving the manufacturing efficiency. Amid the deep change and
relocation of global manufacturing, as well as the faster merger among home appliance tycoons, Chinese home
appliance makers increased their pace of internationalization. Thanks to smart terminal and mobile internet, online
channels were developing much faster than traditional channels. Consumption upgrade, renewal and overseas
expansion remained the three main driving forces of the washing machine industry. According to ChinaIOL
statistics, the first half of 2016 saw a total domestic output of 27,497,300 washing machines, up 3.82% year on
year, of which 18,998,200 were sold domestically, up 4.34% year on year, while 8,499,100 were exported, up
2.67% year on year.
(II) Main business analysis
In face of the complex domestic and overseas environments, as well as a continuously weak global economy, we
continued to closely adhere to our strategic axis of ―leading products, efficiency-driven and global operations‖,
focused on our main business, put customers and products at the heart of everything we did, and pushed forward
organizational reform and operating transformation. Meanwhile, we strengthened our R&D and innovation,
improved our T+3 order mechanism and promoted manufacturing upgrade and efficiency improvement so as to
increase our core competitiveness. The first half of 2016 witnessed a further improvement of our operating quality,
with continuously improving product structure, product quality and operating efficiency. For the reporting period,
we achieved operating revenues of RMB7.985 billion, up 30.86% from the same period of last year; net profit
attributable to shareholders of the Company stood at RMB581 million, representing a YoY growth of 34.86%; and
our overall gross profit margin was 27.2%, increasing by 0.25 percentage points from the corresponding period of
last year.
(III) Work accomplished in the first half of 2016
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
1. While centering on leading products, the Company continued to make competitive products, and
promote high-end and differential product series
The Company centered on the strategic main shaft of leading products, focused on consumers, stuck to invest
more on R&D input and product innovation, continued to construct a technology R&D platform with global
competitiveness; emphasized on user survey, research in advance, intelligent research and core technology efforts,
continued to made competitive products through independent R&D and external cooperation, promoted key
products of the Beverly high-end series and Disney differential series, so as to create qualified life experience for
users. Among them, as for the Beverly high-end new series, the Company combined Italian Kaibihe technique
based on its cooperation with Italian technique research institution, applied diamond-cut technology to make
rose-diamond-type door cycles, practiced craftsmen’s spirit, and carried forward high-end transformation. The
washing machines of the Disney customized version, including children’s washing machines designed for
―adorable kids‖, the wall hanging clothes dryers, and the portable mini washing machines, were combined with
both artistry and practicability, and reflected the Company’s efforts of continuous creation of fashionable qualified
goods. In the reporting period, the Company won the honor of technology certification of ―Water Rubik’s Cube
with High-efficiency and Energy Saving‖ issued by VDE,
as well as the quality certificate of ―BLDC Electrical
Machine of 20-year Service Life‖. The Beverly roller
washing machines won the honor of product award in
―China Appliance Award‖ for Chinese home appliances in
Y2016. The Beverly wave-wheel washing machines had
the honor to win the best design reward of German ―Red
Spot Award‖ in Y2016. R&D and innovation capability of
the Company were highly recognized by the market.
2. The Company enhanced on marketing
transformation, rapidly enlarged E-Commerce
business, and stably pushed growth of overseas
self-own brands
In domestic market, the Company continued to deepen the
transformation of marketing modes, led agents transform
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
to platform operator, pushed channels for further flattening, and improve its competitiveness in terminal markets;
sustainably optimized product sales structure, raised the ratio of high and milled end products, strengthened on the
sample processing and resource input of high and middle end product series, established the Beverly special hall
and the Disney special hall; promoted sharing of channels and stocks, fully took advantage of the turnover
function of center warehouses, integrated the planning, allocation, and usage of all channels and stocks;
energetically developed the campus cloud-washing machine project, and had successfully entered into plenty of
universities, flats, and hotels, and ultimately constructed the big market of public self-help clothes-washing
service, positively promoted the market expansion for clothes dryers, reinforced on new arrivals and its promotion,
and gained the revenue of RMB156 million of clothes dryers in the 1st half of Y2016, with a year-on-year increase
of 45.79%; positively propelled the development of E-Commerce business, deepened the cooperation with
E-Commerce platforms, pushed forward the launch of Little Swan Shopping Mall, and won a breakthrough of
RMB1.83 billion as revenue of all online sales in the 1st half of Y2016, with a year-on-year increase of 101.1%. In
the reporting period, the Company obtained business revenue of RMB5.797 billion, growing by 32.07% as
compared with the same period of last year.
In overseas market, the Company further optimized the global market layout, constantly made breakthroughs in
key markets, dug out potential markets, cleared blank markets; constantly deepen strategic cooperation with key
clients, stable the scale-oriented clients, put emphasis on implementing key and large cooperation projects;
positively promoted the development of self-own brands, practiced localized operation in partial areas, enlarged
channels, refined markets, and obtained stable growth of self-own brand business; continued to promote the
outside location of manufacturing, further enlarged cooperation range, improved product competitiveness in the
market through local manufacturing; sustainably carried forward product circulation in internals and external sales
market, so as to realize resource collaboration and complementation; supplemented the product cast of high and
middle end products, as well as the self-own-brand products, and continued to optimize product sales structure.
In the reporting period, the Company obtained revenue of RMB1.53 billion for overseas sales, marking a
year-on-year increase of 24.26%.
3. The Company deepened T+3 mode, and continued to carry forward manufacturing upgrade, as well as
efficiency promotion
The Company continued to deepen the operation of T+3 order mode. As for the marketing end, the system of
pre-arrangement for online orders, as well as capacity visualization, realized visible customers’ orders, visible
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
capacity, and order pre-arrangement, practiced visual system management and control, and balanced order
allocation and speeded up its turnover. As for the supply end, the informationized monitoring system improved
logistics channel management and control, improved the on time performance and full-set preparation ratio of
supplied materials, and at the same time, continuously pushed exclusive supply clear-up, and optimized supply
layout. As for the manufacturing end, the Company continued to carry forward manufacturing upgrade and
efficiency improvement, input more on automation, and established automotive production lines for roller
washing machines. As for R&D end, the Company sustainably simplified product models, aggressively drove out
the management way in features of platformization, standardization, and universalization, and improved the
product design for manufacturability. In the reporting period, 90% of production and sales volume of the
Company applied T+3 order mode, and over 30% were through offline direct delivery, representing a sharp
upgrade of operating and turnover efficiency.
4. The Company emphasized on the principle of remarkable quality, and aggressively pushed forward the
strategy of quality projects
The Company continued to pushed forward the establishment of quality management and control system,
emphasized on the principle of remarkable quality, determinedly practiced the ―One-vote negation system‖ for
quality control; took users as the orientation, made benchmarking for basic properties in all systems, transformed
the attention from market maintenance ratio to product reliability; strengthened the management for 2 sources
(design and supply materials) and 1 process (manufacturing), strictly controlled on processes of product planning,
trial-manufacturing, trial-production, and first-production in designing period, strictly implemented process
inspection of sample confirmation, model experiment, and normal experiment in material supply period, strictly
controlled on the transparency and visualization of quality management in manufacturing period, so as to ensure
product quality in manufacturing process; continued to grasped the opportunities of quality projects, established
refine management system and evaluation standards for the overall process, gradually improved the coverage rate
of quality goods, and obtained public praises for quality. In the reporting period, the market maintenance rate of
the Company experienced a stable year-on-year decrease, and remarkably improved product quality.
(IV) Work plan for the second half of 2016
In the 2nd half of Y2016, the Company will stand firm to continue the deepening of transformation, center on users,
take production and sales as the main shaft, rigidly move forward, continuously reform the value chain, and
consolidate the capability of sustainable development of the Company. In respect of product platform, the
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Company will reinforce on R&D, ensure key new products development, intensify research on intelligent scene
applications, enhance external cooperation, plan and construct the ecosphere of intelligent washing machine
industry. In respect of marketing platform, as for domestic sales, the Company will continue to deepen T+3 order
mode, aggressively carry forward channel transformation and stock sharing, unceasingly improve the ratio of high
and middle end products, and energetically develop E-Commerce business; as for overseas sales, the Company
will continue to expand global market, constantly improve client vigor, and enhance self-own brand promotion. As
for manufacturing platform, the Company will take T+3 order mode as the pulling force, get directed by
automation and informatization, and sustainably propel manufacturing upgrade. As for service platform, the
Company will deepen the organization recreation, reinforce the introduction of key talents, impel the
transformation of remuneration mechanism, constantly motivate the energy of the organization, and improve the
integrated operation of the Company.
II Main business analysis
Unit: RMB
Same period of last
Reporting period YoY +/-% Main reasons for change
year
Operating revenues 7,984,787,194.92 6,101,903,864.60 30.86% Increase of the sales volume
Operating costs 5,812,591,773.67 4,457,541,472.66 30.40% Increased along with the revenue
Resource input increased as the sales
Selling expenses 1,191,332,056.12 849,993,249.30 40.16%
volume increased
Administrative expenses 265,946,054.68 272,955,998.10 -2.57%
Increase in exchange income and
Financial costs -63,399,464.47 -11,205,277.58 -465.80%
interest income from bank deposits
Income tax expenses 127,302,391.75 78,916,402.71 61.31% Increased as the total profit increased
Net cash flows from operating
1,607,097,392.88 1,365,269,483.46 17.71%
activities
Net cash flows from investing Bank wealth management and
-2,104,441,275.89 -1,507,353,631.94 -39.61%
activities structural deposits increased
Net cash flows from financing
-376,001,781.77 -270,220,502.96 -39.15% The cash paid as dividends increased
activities
Net increase in cash and cash Cash outflows from investing and
-873,345,664.78 -412,304,651.44 -111.82%
equivalents financing activities increased
Major changes to the profit structure or sources of the Company during the Reporting Period:
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
□ Applicable √ Not applicable
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 √ Not applicable
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
Increase/decrease of Increase/decrease Increase/decreas
operating revenues of operating costs e of gross profit
Gross profit
Operating revenues Operating costs over the same over the same margin over the
margin (%)
period of last year period of last year same period of
(%) (%) last year (%)
Classified by industry:
Home appliance
7,327,207,677.60 5,281,634,736.14 27.92% 30.36% 29.70% 0.37%
manufacturing
Classified by product:
Washing
7,327,207,677.60 5,281,634,736.14 27.92% 30.36% 29.70% 0.37%
machines
Classified by region:
China 5,797,358,361.67 3,968,971,009.52 31.54% 32.07% 33.22% -0.59%
Other countries
1,529,849,315.93 1,312,663,726.62 14.20% 24.26% 20.10% 2.98%
and regions
IV Core competitiveness analysis
Our core competitiveness is demonstrated in the following aspects:
1. Our knowledge and experience accumulated in the long history of our main business. We are the sole
company in China that has focused on the washing machine industry since the end of 1970s. Profound knowledge
and experience has been accumulated through these several decades in technology, R&D and innovation, market
research, business operation, etc., which has been transformed into our tacit knowledge through the accumulation
and inheritance by our talent team and has thus become our most important core competitiveness.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
2. Our capability of seeing the industry clearly and R&D. We have our unique capability of judging and
foreseeing developments in the industry and technology. Through constant input of R&D resources over the years,
we have owned leading technological competitiveness in the industry. We have 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. We hold on to independent innovation and have the internationally advanced frequency-changing,
intelligent control, structure design, industrial design and other core technologies. We connect technology,
products and customers through medium and long-term technological planning, and have research talent, talent
reserve and development talent for our R&D.
3. Our capability of managing the industrial chain. We keep building a customer-oriented supply chain
management system, have set up an industry-leading cross-enterprise procurement platform with the help of
Midea Group, constantly increase the efficiency of our supply chain and foster a strategic partnership with our
suppliers. In terms of channels, in the domestic first and secondary markets, we mainly work with Suning, Gome
and some other big regional customers; in the tertiary and fourth markets, we combine agent channels, flagship
stores and franchised stores to distribute our products to households. In e-commerce, we proactively make plans
about online channels and enhancing our cooperation with all famous online shopping platforms, and our online
sales have achieved a fast growth. Overseas, we keep deepening our cooperation with customers, expanding
strategic overseas markets and enhancing the promotion of our own brands in the regional markets. We enjoy a
good and long-term cooperation with our major customers at home and abroad.
4. Our capability to respond to needs of consumers. We have been keeping a watchful eye on market changes,
studying consumers’ needs, and focusing on improvement of the whole process experience of customers in
shopping, product use and after-sales service. Consumers are always looking for professional, efficient, intelligent,
green and beautifully-designed washing machines. And we satisfy customers’ needs and provide them with
extremely easy use experience through our innovative solutions of silver nano-particle sterilization, intelligent
accurate self-loading, water cube green washing and classified washing. We adopt a two-brand strategy (―Little
Swan‖ and ―Midea‖) to create differentiation for the satisfaction of different needs. With a history of over three
decades, Little Swan is considered a very reliable brand among consumers, with the slogan of ―Whole-hearted
Little Swan‖ being well-known among them. As for Midea, a comprehensive home appliance brand, its share in
the washing machine market keeps rising with increasing recognition.
5. Our capability of reform and self-improvement. Through years of accumulation, we have developed a
corporate culture of sustained reform and self-improvement. Along with rapid changes in the market and this new
era, we will keep reforming our organizational structure and operating model so as to ensure our capability of
sustainable development. In order to adapt to the era of mobile internet, we restructure the Company with the
internet thinking and create a platformized operating model. Meanwhile, we are the first in the sector to adopt the
T+3 order-oriented production and sale mechanism to cope with the fast changes of market needs. And in order
for continuing vitality, we push forward reform of our remuneration mechanism and encourage creative sidelines
as a way to keep improving our management system.
No significant changes occurred to our core competitiveness in the Reporting Period.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
V. Investment analysis
1. Investments in equities of external parties
(1) Foreign investment
□ Applicable √ Not applicable
There was no foreign investment of the Company in the Reporting Period.
(2) Equity-holdings in financial enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Investment in securities
□ Applicable √ Not applicable
The Company did not invest in any securities in the Reporting Period.
(4) Shareholdings in other listed companies
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Wealth management entrustment, derivative investments and entrustment loans
(1) Wealth management entrustment
Unit: RMB Ten thousand Yuan
Related- Actual
Principal Impairment
Name of party Product Amount Beginning Ending Payment Predicted gain/loss in
Relation actually provision (if
trustee transacti variety entrusted date date determination gain reporting
recovered any)
on or not period
Bank Floating interest
wealth 28 Jun. rate, contractual
Bank No No 594,300 27 Apr. 2015 121,000 6,732 6,732
manageme 2017 highest annualized
nt product income rate
Total 594,300 -- -- -- 121,000 6,732 6,732
All is from the self-owned funds of the Company. The line for wealth
management entrustment is no more than RMB6 billion and repeated use is
Source of the entrusted funds
allowed within the said line. And the balance of the wealth management
entrustment was of RMB5.943 billion at the period-end of the Reporting Period.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Cumulative overdue principals and gains 0
Lawsuits (if applicable) Not applicable
Disclosure date of the Board f Directors’ announcement 10 Mar. 2016
approving the wealth management entrustment (if any)
Disclosure date of the Board f Shareholders’ announcement 8 Apr. 2016
approving the wealth management entrustment (if any)
(2) Derivative investment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Entrustment loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Use of raised funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Analysis to main subsidiaries and stock-participating companies
Unit: RMB Ten Thousand Yuan
Company Company Registered Operating Operating
Industry Main product Total assets Net assets Net profit
name variety capital revenues profit
Hefei Midea
Washing Washing machine USD
Subsidiary Manufacture 680,897.44 239,581.23 349,073.91 21,334.08 18,374.46
Machine Co., manufacture 13,552
Ltd.
Wuxi Little
Swan General
Washing machine
Electrical Subsidiary Manufacture 2,800 30,568.55 20,104.24 12,057.61 1,139.15 962.20
manufacture
Appliances
Co., Ltd
Development and
Wuxi FILIN
manufacture of USD
Electronics Subsidiary Manufacture 83,157.75 61,105.44 33,009.47 9,698.26 9,301.08
new electronic 362.4564
Co., Ltd
components
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
5. Significant projects invested with non-raised funds
□ Applicable √ Not applicable
No significant projects of investments with non-raised funds during the Reporting Period.
VI. Predict the operating results of Jan.-Sept. 2016
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin
to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable √ Not applicable
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 √ Not applicable
VIII. Explanation by the Board of Directors about the “non-standard audit report” for last
year
□ Applicable √ Not applicable
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 □ Not applicable
As the profit allocation plan for 2015, the Company, based on the total 632,487,764 shares as at the end of 2015,
distributed a cash dividend of RMB6.00 (tax included) for every 10 shares held by its shareholders with the total
distributed amount of RMB379,492,658.40 and the retained earnings transferred to the following years. And the
Company neither turned capital reserve into share capital nor distributed the shares bonus.
The plan was reviewed and approved at the 4th Session of the 8th Board of Directors on 8 Mar. 2016 and then the
2015 Annual Shareholders’ General Meeting on 7 Apr. 2016. The was published on 12 May 2016. 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
18
2016 Semi-annual Report of Wuxi Little Swan Company Limited
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
Not applicable
with regulations and transparent.
X. Preplan for profit distribution and turning capital reserve into share capital for the
reporting period
□ Applicable √ Not applicable
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share
capital for the Reporting Period.
Main discussion and
Way of Visitor
Time Place Visitor materials provided by
reception type
the Company
HWABAO Investment, Korea Investment, Tokio
Marine, Huatai Securities, GTJA Allianz Funds,
Conference Guolian Securities, Tebon Securities, Nuode Fund,
22 Jan. Overall operation of
Room of the Field research Institution Shenwan Hongyuan, KING TOWER, Shanxi
2016 the Company
Company Securities, Gaoguan Investment, Changjiang
Securities, Founder Securities, CITIC Securities,
Haitong Securities
Conference
15 Mar. Overall operation of
Room of the Field research Institution Sunshine Asset Management, National Fund
2016 the Company
Company
GF Securities, Bohai Securities, APS Asset, Guotai
Conference
12 May Fund, Yulan Capital, BOC International, AJ Overall operation of
Room of the Field research Institution
2016 Securities, HFT Investment Management, HSBC the Company
Company
Jintrust
19
2016 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. Litigations
Significant litigations and arbitrations
□ Applicable √ Not applicable
The Company was not involved in any significant lawsuit or arbitration during the Reporting Period.
Other litigations
□ Applicable √ Not applicable
III. Media’s questions
□Applicable √ Not applicable
The Company was not involved in any media’s questions during the Reporting Period.
IV. Related Events of bankruptcy reorganization
□ Applicable √ Not applicable
The Company was not involved in any related events of bankruptcy reorganization.
V. Assets transaction events
1. Purchase of assets
□ Applicable √ Not applicable
The Company was not involved in any purchase of assets.
2. Sales of assets
□ Applicable √ Not applicable
The Company was not involved in any sale of assets.
20
2016 Semi-annual Report of Wuxi Little Swan Company Limited
3. Combination of enterprises
□ Applicable √ Not applicable e
The Company was not involved in any combination of enterprises.
VI. Implementation of equity incentive and its influence
□ Applicable √ Not applicable
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
For the details, please refer to ―XII. Related parties and the related-party transactions‖ of Section VIII. Financial
Report.
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
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 √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the Reporting
Period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
The Company was not involved in any credit and liability with related parties during the Reporting Period.
5. Other significant related-party transactions
(1) the related transactions about the Financial Service Agreement which signed with the Midea Group Finance
Co., Ltd.
It was agreed that, the financial company should provide the service of deposit, loan, note discount, guarantee,
settlement, and the series of the financial services that approved by the CBRC according to the requirements of
the Company as well as its subsidiaries. During the three-year validity after date of the validation of the agreement,
the maximum of the deposit balance that the Company and its subsidiaries disposed in the financial company
should not exceed the amount of RMB2 billion per day; and the maximum of the outstanding loan principal and
21
2016 Semi-annual Report of Wuxi Little Swan Company Limited
interest balance that the financial company granted to the Company and its subsidiaries should not exceed the
amount of RMB2 billion per day.
At the report-end, the deposit balance of the Company at Midea Group Finance Co., Ltd. was of RMB1.258
billion, with no any loan.
(2) Related transactions about the trademark license
The Company permitted GD Midea Holding Co., Ltd. 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 to use trademark of LITTLE SWAN and picture in the refrigerators and the
freezers; 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 permitting period last from the 1 Jan. 2014 to 31 Dec. 2016.
(Notes: Approved by [2013] No. 1014 document of China Securities Regulatory Commission, Midea Group had
made share swap absorption merger of the original controlling shareholder—GD Midea Holding Co., Ltd. on 18
Sep. 2013, after which, Midea Group inherited and carried on the whole obligations and right such as the whole
assets and liabilities of GD Midea Holding Co., Ltd. as a remainder enterprise as well as had completed the
relevant share transfer registration procedures on 31 Dec. 2013.)
② The Company permitted Midea Group and its controlling subsidiary to use trademark of BEVERLY in water
heaters and the products of the water correction plants as well as machines with 0.3% of the net sales amount of
the license trademark products as the access fee, of which the permission time limit was from 1 December 2015 to
31 December 2018.
(3) The Company held the 2015 Annual General Meeting on 7 Apr. 2016 which reviewed and approved the
Proposal on Estimating the 2016 Daily Related Transactions of the Company.
(4) The Company held the 6th Session of the 8th Board of Directors on 8 Aug. 2016, which reviewed and approved
the Proposal on Adjusting the Amount of the 2016 Daily Related Transactions.。
Index for the interim announcements on related-party transactions disclosed on the relevant website
Title of the interim announcement Disclosure date Disclosure website
Proposal on Estimating the 2016 Daily Related Transactions of the Company
10 Mar. 2016 www.cninfo.com.cn
(No. 2016-04)
Announcements about Adjusting the 2016 Daily Connection Transaction
10 Aug. 2016 www.cninfo.com.cn
Amount (No.2016-17)
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the Reporting Period.
22
2016 Semi-annual Report of Wuxi Little Swan Company Limited
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Not applicable
There was no any trusteeship of the Company in the Reporting Period.
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the Reporting Period.
(3) Lease
□ Applicable √ Not applicable
There was no any lease of the Company in the Reporting Period.
2. Guarantees provided by the Company
Unit: RMB Ten Thousand Yuan
Guarantees provided by the company for external parties (excluding those for subsidiaries)
Disclosure date on
Amount Actual occurrence Actual Guarantee
Guaranteed relevant Type of Period of Executed
for date (date of guarantee for a related
party announcement of guarantee guarantee or not
guarantee agreement) amount party or not
guaranteed amount
Total external guarantee line approved during Total actual occurred amount of external
0 0
the reporting period (A1) guarantee during the reporting period (A2)
Total external guarantee line that has been Total actual external guarantee balance at the
0 0
approved at the end of the reporting period (A3) end of the reporting period (A4)
Guarantees provided by the company for its subsidiaries
Disclosure date on
Amount Actual occurrence Actual Guarantee
Guaranteed relevant Type of Period of Executed
for date (date of guarantee for a related
party announcement of guarantee guarantee or not
guarantee agreement) amount party or not
guaranteed amount
Hefei Midea
Joint
Washing
10 Mar. 2016 125,000 27 Jun. 2016 5,999.52 liability Half year No No
Machine Co.,
guarantee
Ltd.
Total guarantee line approved for the Total actual occurred amount of guarantee for
125,000 5,999.52
subsidiaries during the reporting period (B1) the subsidiaries during the reporting period (B2)
Total guarantee line that has been approved for 125,000 Total actual guarantee balance for the 5,999.52
23
2016 Semi-annual Report of Wuxi Little Swan Company Limited
the subsidiaries at the end of the reporting subsidiaries at the end of the reporting period
period (B3) (B4)
Guarantees provided by the subsidiaries for their subsidiaries
Disclosure date on Period
Actual occurrence Actual Guarantee
Guaranteed relevant Amount for Type of of Execute
date (date of guarantee for a related
party announcement of guarantee guarantee guarante d or not
agreement) amount party or not
guaranteed amount e
Total guarantee line approved for the Total actual occurred amount of guarantee for
0 0
subsidiaries during the reporting period (C1) the subsidiaries during the reporting period (C2)
Total guarantee line that has been approved for Total actual guarantee balance for the
the subsidiaries at the end of the reporting 0 subsidiaries at the end of the reporting period 0
period (C3) (C4)
Total guarantee amount provided by the Company (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved during the Total actual occurred amount of guarantee
125,000 5,999.52
reporting period (A1+B1+C1) during the reporting period (A2+B2+C2)
Total guarantee line that has been approved at Total actual guarantee balance at the end of the
125,000 5,999.52
the end of the reporting period (A3+B3+C3) reporting period (A4+B4+C4)
Proportion of total guarantee amount (A4+B4+C4) to the net assets
1.12%
of the Company
Of which:
Amount of guarantee for shareholders, actual controller and related parties (D) 0
Amount of debt guarantee provided for the guaranteed party whose asset-liability ratio is not less than 70%
0
directly or indirectly (E)
Part of the amount of the total guarantee over 50% of net assets (F) 0
Total amount of the above three guarantees (D+E+F) 0
Explanation on possibility to bear joint liability due to undue guarantees (if any) Not applicable
Explanation on the external guarantees in violation of stipulated procedures (if any) Not applicable
(1) Particulars about illegal external guarantee
□ Applicable √ Not applicable
There was no particular about illegal external guarantee of the Company in the Reporting Period.
3. Other significant contracts
□ Applicable √ Not applicable
There was no other significant contract of the Company in the Reporting Period.
24
2016 Semi-annual Report of Wuxi Little Swan Company Limited
4. Other significant transactions
□ Applicable √ Not applicable
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
Time of
Commitment Period of
Commitment Contents making Fulfillment
maker commitment
commitment
Where the controlling shareholder GD Midea Holding Co., Ltd.
(Midea Holding) plans to sell the Company’s shares released
from trading moratorium held by it via the bid trading system of
Commitment on Controlling the Shenzhen Stock Exchange, and Midea Holding decreases over 28 Feb. In the process of
Long-term
share reform shareholder 5% shares within six months since the first reduction of holdings, 2008 implementation
Midea Holding will disclose the suggestive announcement on
share selling through the Company two trading days before its
first reduction of holdings.
1. As for 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
enterprises, as well as will neither engage in nor participate in any
Commitment in
Controlling competitive business the same as the recently main business of
the acquisition
shareholder Little Swan or its controlled enterprises through controlling other 1 Dec. 2010, In the process of
report or the Long-term
and actual economic entities, institutions, economic organizations. If Little 6 Jun. 2014 implementation
report on equity
controller Swan and its controlled enterprises further developed its scope of
changes
the operation business on the 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 any situation violated the
above commitments, the profits gained from the business related
to operation were belongs to Little Swan.
25
2016 Semi-annual Report of Wuxi Little Swan Company Limited
2. The commitment by Midea Group and the actual controller on
the specification of the related-party transaction. 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 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 controlled enterprises, would sign the
normative related-party transactions agreement Little Swan
according to laws and would execute the approval procedure
according to the relevant regulations to ensure the fairness of the
Controlling
price of the related-party transactions; ensure to execute the
shareholder 1 Dec. 2010, In the process of
information disclose obligation of related-party transactions Long-term
and actual 6 Jun. 2014 implementation
according to the relevant regulations; ensure not to make
controller
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
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 take 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, organization and business. 3. As for the
commitment on independence, Midea Group and the actual
Controlling controller Mr. He Xiangjian has promised that, to further ensure 1 Dec. 2010, In the process of
Long-term
shareholder the independent operation of Little Swan, Mr. He Xiangjian, 6 Jun. 2014 implementation
Midea Group and its controlled other enterprises would maintain
the mutual independent in terms of personnel, finance, assets,
business and institutions with Little Swan according to the
relevant laws and regulations as well as the normative documents.
Controlling 4. As for the commitment on related-party deposits and In the process of
1 Dec. 2010 Long-term
shareholder borrowings, up to 8 Apr. 2010, the Financial Settlement Center of implementation
26
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Midea Group had settled all internal deposits and borrowings
with Hefei Royalstar Washing Equipment Manufacturing Co.,
Ltd.; and Midea Group has promised that there will be no more
deposits, borrowings or other funds flows incurred between the
Financial Settlement Center and Hefei Royalstar Washing
Equipment 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 sold to the Company are of no
ownership certificates—the warehouse for half-finished products
Controlling (176 square meters) and the workshop for injection molding (834 In the process of
1 Dec. 2010 Long-term
shareholder square meters), both located in the old factory of Royalstar implementation
Washing Equipment, Hewa Road, Hefei. Midea Group has
promised that if loss occurs due to the said two buildings without
ownership certificates in the asset disposal process in the future,
it will assume the loss thus caused and make compensation to the
Company.
6. The commitment by Midea Group on trademarks is detailed as
follows. (1) Concerning the ―Midea‖ trademark: Upon approval
and implementation of the equity transfer transaction, Midea
Group has promised that it will make sure that Royalstar Washing
Equipment uses the ―Midea‖ trademark in a proper manner.
Royalstar Washing Equipment will be allowed to use the ―Midea‖
trademark with a trademark use fee not more than that paid by
Midea Group (the controlling shareholder of Midea Group) and No. (2),
its subsidiaries (currently 3‰ of the annual sales income RongShiDa
generated by products using the ―Midea‖ trademark), and upon trademark is
negotiation and signing of the ―Agreement for Trademark Use‖. due by
The related-party transactions incurred due to the said use of the March 31,
Controlling ―Midea‖ trademark will be submitted to the decision-making 2013 and In the process of
1 Dec. 2010
shareholder organ of the Company for approval according to the stipulated won’t renew implementation
procedure. As such, interests of the Company and its minority its contract;
shareholders will be safeguarded. (2) Concerning the ―Royalstar‖ Other items
trademark: Midea Group has signed the ―Contract for Trademark for a long
Use‖ with Royalstar Group and obtained the ordinary use rights term
of the ―Royalstar‖ (or ―RongShiDa‖) trademark. As the transferor implement
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
27
2016 Semi-annual Report of Wuxi Little Swan Company Limited
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 for
Royalstar Washing Equipment to relevant government authorities
Controlling in a timely manner and assume any other liability. If any loss thus In the process of
1 Dec. 2010 Long-term
shareholder occurs to Royalstar Washing Equipment or Little Swan, Midea implementation
Group is willing to assume relevant responsibilities for
compensation. Upon the completion of the said equity transfer
deal, if income tax evasion or any other tax risk is found in
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.
8. The commitment by Midea Group on capital safety at the
finance companies of the Company: during the validity period of
the Financial Services Agreement, when Midea Group occurred
Controlling emergency situation of payment difficulty at finance companies, 18 Mar. 3 years In the process of
shareholder it should adopt the effective measures such as increase the capital 2015 validity implementation
fund of the finance companies according to the actual needs of
solving the payment difficulty to ensure the capital safety of the
Company.
Commitments
made upon the
assets
reorganization
Commitments
made upon IPO
or refinancing
Other
commitments
made to
minority
shareholders
28
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Executed timely
Yes
or not?
Specific reasons
fail to complete
execution and Not applicable
further plans (if
any)
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
The semi-annual financial report had not been audited.
XII. Punishment and Rectification
□ Applicable √ Not applicable
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 √ Not applicable
There was no any delisting risk of illegal or violation of the Company in the Reporting Period.
XIV. Explanation about other significant matters
□ Applicable √ Not applicable
There was no any other significant matter needed to be explained in the Reporting Period.
XV. Related situation of the corporate bonds
□ Applicable √ Not applicable
There was no any public issuance of the corporate bonds which listed on the securities exchange that had not due
on the approved presentation date of the half-annual report or failed to pay in full amount.
29
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section VI. Change in Shares & Shareholders
I. Changes in share capital
Unit: Share
Before this change Increase/decrease (+, -) After the change
Issuance Capitalizatio
Bonus
Amount Proportion of new n of public Other Subtotal Amount Proportion
share
shares reserve fund
I. Shares subject to trading
3,711,190 0.59% -24,300 3,686,890 0.58%
moratorium
Other domestic shares 3,711,190 0.59% -24,300 3,686,890 0.58%
Including: Shares held by
3,686,890 0.58% 3,686,890 0.58%
domestic legal persons
Shares held by
24,300 0.01% -24,300
domestic individuals
II. Shares not subject to
628,776,574 99.41% 24,300 628,800,874 99.42%
trading moratorium
1. Ordinary shares
437,740,702 69.21% 24,300 437,765,002 69.22%
denominated in RMB
2. Domestically listed
191,035,872 30.20% 191,035,872 30.20%
foreign shares
III. Total of shares 632,487,764 100.00% 632,487,764 100.00%
Reason for the change in shares
√ Applicable □ Not applicable
The Vice GM, Mr. Mao Zhiliang had purchased 24,300 shares of the Company on 28 May 2015, and which had
left the position on 26 Aug. 2015. According to the 141st regulation of Company law, within half year of the
dimission, Directors, Supervisors and Senior Executives of the Company should not transfer their held Company’s
shares. Now Mr. Mao Zhiliang had left for half year, of which the 24,300 shares had relieved the trading
moratorium.
Approval of the change in shares
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of the change in shares on the basic EPS, diluted EPS, net assets per share attributable to common
shareholders of the Company and other financial indexes over the last year and last period
30
2016 Semi-annual Report of Wuxi Little Swan Company Limited
□ Applicable √ Not applicable
Other contents that the Company considered necessary or were required by the securities regulatory authorities to
disclose
□ Applicable √ Not applicable
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 √ Not applicable
II. Number of shareholders and shareholding
Unit: share
Total number of common
Total number of preferred shareholders that had restored the
shareholders at the end of the 20,965 0
voting right at the end of the reporting period (if any) (note 8)
reporting period
Shareholding of the common shareholders holding more than 5% shares or the top 10 common shareholders
Number of Increase and Number of Number of Pledged or
shareholding decrease of shares held shares held frozen shares
Nature of Holding
Name of shareholder at the end of shares during subject to not subject Status
shareholder percentage Number
the reporting reporting trading to trading of
period period moratorium moratorium shares of shares
Domestic
MIDEA GROUP CO.,
non-state-owned 37.78% 238,948,117 0 238,948,117
LTD.
corporation
TITONI INVESTMENTS Overseas
14.89% 94,204,942 0 94,204,942
DEVELOPMENT LTD. corporation
Overseas
GAOLING FUND,L.P. 3.43% 21,694,456 0 21,694,456
corporation
NATIONAL SOCIAL Domestic
SECURITY FUND non-state-owned 2.77% 17,499,071 15,899,032 17,499,071
PORTFOLIO 108 corporation
FINANCE BUREAU OF State-owned
2.70% 17,054,071 0 17,054,071
WUXI corporation
GREENWOODS CHINA Overseas
2.19% 13,869,564 1,876,183 13,869,564
ALPHA MASTER FUND corporation
NATIONAL SOCIAL Domestic
SECURITY FUND non-state-owned 2.03% 12,854,790 4,293,467 12,854,790
PORTFOLIO 101 corporation
Central Huijin Asset State-owned
1.61% 10,156,300 0 10,156,300
Management Co., Ltd. corporation
31
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Overseas
NORGES BANK 0.64% 4,024,781 3,578,861 4,024,781
corporation
BILL & MELINDA
Overseas
GATES FOUNDATION 0.59% 3,732,880 3,732,880 3,732,880
corporation
TRUST
Strategic investors or the general legal person due to the placement of
Not applicable
new shares become the top 10 shareholders (if any) (note 3)
MIDEA GROUP CO., LTD. and TITONI are parties acting
Explanation on associated relationship or/and persons
in concert.
Particulars about shares held by top 10 shareholders not subject to trading moratorium
Number of shares held Type of share
not subject to trading
Name of shareholder
moratorium at the end Type of share Number
of the period
MIDEA GROUP CO., LTD. 238,948,117 RMB ordinary share 238,948,117
Domestically listed
TITONI INVESTMENTS DEVELOPMENT LTD. 94,204,942 94,204,942
foreign share
Domestically listed
GAOLING FUND,L.P. 21,694,456 21,694,456
foreign share
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108 17,499,071 RMB ordinary share 17,499,071
FINANCE BUREAU OF WUXI 17,054,071 RMB ordinary share 17,054,071
Domestically listed
GREENWOODS CHINA ALPHA MASTER FUND 13,869,564 13,869,564
foreign share
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 101 12,854,790 RMB ordinary share 12,854,790
Central Huijin Asset Management Co., Ltd. 10,156,300 RMB ordinary share 10,156,300
Domestically listed
NORGES BANK 4,024,781 4,024,781
foreign share
BILL & MELINDA GATES FOUNDATION TRUST 3,732,880 RMB ordinary share 3,732,880
Explanation on associated relationship among the top ten common
shareholders of tradable share not subject to trading moratorium, as
MIDEA GROUP CO., LTD. and TITONI are parties acting
well as among the top ten common shareholders of tradable share not
in concert.
subject to trading moratorium and top ten shareholders, or explanation
on acting-in-concert
Particular about the top 10 common shareholders participate in the
Not applicable
securities lending and borrowing business (if any) (note 4)
Did any top 10 common shareholder and top 10 shareholder of tradable share not subject to trading moratorium of
the Company carry out an agreed buy-back in the Reporting Period?
□ Yes √ No
32
2016 Semi-annual Report of Wuxi Little Swan Company Limited
The top 10 common shareholder and top 10 shareholder of tradable share not subject to trading moratorium 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 √ Not applicable
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 √ Not applicable
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 √ Not applicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any
shareholding increase plan during the Reporting Period.
33
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section VII. Directors, Supervisors, Senior Management Staffs
I. Changes in shareholding of Directors, Supervisors and Senior Management staffs
□ Applicable √ Not applicable
No change in shareholding of Directors, Supervisors and Senior Management staffs, with the details in 2015
Annual Report.
II. Changes in Directors, Supervisors and Senior Management staffs
□ Applicable √ Not applicable
No change in Directors, Supervisors and Senior Management staffs, with the details in 2015 Annual Report.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section VIII. 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
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Company Limited
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Monetary funds 2,054,917,706.65 3,042,843,924.81
Settlement reserves
Intra-group lendings
Financial assets measured by fair value with the changes be included in the
current gains and losses
Derivative financial assets
Notes receivable 1,794,679,303.47 2,205,189,379.10
Accounts receivable 1,117,184,734.33 896,075,475.63
Accounts paid in advance 160,965,289.08 97,628,578.17
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserves
Interest receivable 28,465,678.21 22,932,602.74
Dividend receivable
Other accounts receivable 12,183,354.15 9,208,180.08
Financial assets purchased under agreements to resell
Inventories 596,940,535.68 745,412,967.52
Assets divided available for sale
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Non-current assets due within 1 year
Other current assets 8,142,145,155.23 5,733,188,604.23
Total current assets 13,907,481,756.80 12,752,479,712.28
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 200,000.00 200,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment
Investing property 66,566,603.42 68,843,047.52
Fixed assets 992,560,338.04 1,019,528,291.60
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 194,902,555.61 197,521,625.03
R&D expense
Goodwill
Long-term deferred expenses 3,009,579.20 4,238,244.38
Deferred income tax assets 288,709,031.34 251,881,220.89
Other non-current assets 29,351,772.60 32,963,224.90
Total of non-current assets 1,575,299,880.21 1,575,175,654.32
Total assets 15,482,781,637.01 14,327,655,366.60
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Customer bank deposits and due to banks and other financial institutions
Intra-group borrowings
Financial liabilities measured by fair value with the changes be included in
the current gains and losses
Derivative financial liabilities
Notes payable 2,892,196,959.47 1,953,065,274.06
Accounts payable 2,704,726,262.56 2,419,807,341.95
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Accounts received in advance 992,809,515.41 1,652,908,781.44
Financial assets sold for repurchase
Handling charges and commissions payable
Employee’s compensation payable 192,269,790.26 248,280,716.92
Tax payable 303,337,746.55 325,108,227.91
Interest payable
Dividend payable 7,150,684.06 5,400,652.06
Other accounts payable 206,605,331.90 171,807,137.94
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities divided available for sale
Non-current liabilities due within 1 year
Other current liabilities 1,820,932,196.14 1,521,734,293.24
Total current liabilities 9,120,028,486.35 8,298,112,425.52
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preferred shares
Perpetual capital securities
Long-term payables
Long-term payroll payables 26,025,528.06 28,439,299.25
Specific payables
Estimated liabilities 9,784,866.44 9,981,021.44
Deferred income 3,168,933.27 3,395,533.29
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 38,979,327.77 41,815,853.98
Total liabilities 9,159,007,814.12 8,339,928,279.50
Owners’ equity
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: preferred shares
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Perpetual capital securities
Capital reserves 1,177,617,482.13 1,164,014,947.85
Less: Treasury stock
Other comprehensive income 67,750,174.57 34,813,284.64
Specific reserves
Surplus reserves 332,594,722.29 332,594,722.29
Provisions for general risks
Retained profits 3,162,289,358.54 2,960,955,454.36
Total equity attributable to owners of the Company 5,372,739,501.53 5,124,866,173.14
Minority interests 951,034,321.36 862,860,913.96
Total owners’ equity 6,323,773,822.89 5,987,727,087.10
Total liabilities and owners’ equity 15,482,781,637.01 14,327,655,366.60
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,017,507,797.28 2,092,430,579.63
Financial assets measured by fair value with the changes be included in the
current gains and losses
Derivative financial assets
Notes receivable 1,102,315,082.72 1,410,210,597.47
Accounts receivable 2,133,195,040.94 1,183,394,794.67
Accounts paid in advance 117,293,095.52 98,437,350.05
Interest receivable 26,211,156.70 18,918,219.18
Dividend receivable
Other accounts receivable 31,858,133.78 6,351,010.17
Inventories 368,432,488.36 482,807,868.13
Assets divided available for sale
Non-current assets due within 1 year
Other current assets 4,301,081,524.22 3,178,113,808.28
Total current assets 9,097,894,319.52 8,470,664,227.58
Non-current assets:
Available-for-sale financial assets 150,000.00 150,000.00
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 1,306,323,041.57 1,306,323,041.57
Investing property 7,511,373.64 8,040,536.02
Fixed assets 497,043,734.47 514,950,803.50
Construction in progress
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 93,936,317.82 95,281,467.96
R&D expense
Goodwill
Long-term deferred expenses 2,773,762.20 3,873,799.88
Deferred income tax assets 186,670,669.67 159,759,565.25
Other non-current assets 22,394,854.80 23,027,173.60
Total of non-current assets 2,116,803,754.17 2,111,406,387.78
Total assets 11,214,698,073.69 10,582,070,615.36
Current liabilities:
Short-term borrowings
Financial liabilities measured by fair value with the changes be included in
the current gains and losses
Derivative financial liabilities
Notes payable 1,939,585,949.35 1,519,749,295.73
Accounts payable 2,519,548,496.82 2,038,397,769.71
Accounts received in advance 629,360,509.44 1,060,643,231.20
Employee’s compensation payable 141,199,559.36 184,287,498.34
Tax payable 187,093,757.66 224,024,964.68
Interest payable
Dividend payable 7,150,684.06 5,400,652.06
Other accounts payable 125,936,470.52 95,009,275.20
Liabilities divided available for sale
Non-current liabilities due within 1 year
Other current liabilities 1,141,000,941.29 944,905,437.98
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Total current liabilities 6,690,876,368.50 6,072,418,124.90
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preferred shares
Perpetual capital securities
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 6,690,876,368.50 6,072,418,124.90
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: preferred shares
Perpetual capital securities
Capital reserves 1,331,351,977.49 1,319,496,538.02
Less: Treasury stock
Other comprehensive income 38,948,640.13 13,608,826.40
Specific reserves
Surplus reserves 319,944,578.39 319,944,578.39
Retained profits 2,201,088,745.18 2,224,114,783.65
Total owners’ equity 4,523,821,705.19 4,509,652,490.46
Total liabilities and owners’ equity 11,214,698,073.69 10,582,070,615.36
3. Consolidated income statement
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun 2015
I. Total operating revenues 7,984,787,194.92 6,101,903,864.60
Including: Sales income 7,984,787,194.92 6,101,903,864.60
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 7,279,128,086.90 5,605,657,906.32
Including: Cost of sales 5,812,591,773.67 4,457,541,472.66
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 44,723,877.46 37,697,582.26
Selling and distribution expenses 1,191,332,056.12 849,993,249.30
Administrative expenses 265,946,054.68 272,955,998.10
Financial expenses -63,399,464.47 -11,205,277.58
Asset impairment loss 27,933,789.44 -1,325,118.42
Add: Gain/(loss) from change in fair value (―-‖ means loss) -248,907.75
Gain/(loss) from investment (―-‖ means loss) 67,315,479.04 71,820,527.82
Including: share of profits in associates and joint ventures
Foreign exchange gains (―-‖ means loss)
III. Business profit (―-‖ means loss) 772,974,587.06 567,817,578.35
Add: non-operating income 21,485,985.76 14,656,202.67
Of which: gains from non-current asset disposal 116,837.67 223,996.80
Less: non-operating expense 2,234,905.37 5,048,356.25
Of which: losses from non-current asset disposal 238,583.97 1,767,090.74
IV. Total profit (―-‖ means loss) 792,225,667.45 577,425,424.77
Less: Income tax expense 127,302,391.75 78,916,402.71
V. Net profit (―-‖ means loss) 664,923,275.70 498,509,022.06
Attributable to owners of the Company 580,826,562.58 430,694,268.55
Minority shareholders’ income 84,096,713.12 67,814,753.51
VI. After-tax net amount of other comprehensive incomes 36,264,775.36 -26,745.69
After-tax net amount of other comprehensive incomes attributable to
32,936,889.93 -26,745.69
owners of the Company
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(I) Other comprehensive incomes that will not be reclassified into gains
and losses
1. Changes in net liabilities or assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other comprehensive incomes in investees that
cannot be reclassified into gains and losses under the equity method
(II) Other comprehensive incomes that will be reclassified into gains
32,936,889.93 -26,745.69
and losses
1. Enjoyable shares in other comprehensive incomes in investees that
will be reclassified into gains and losses under the equity method
2. Gains and losses on fair value changes of available-for-sale
32,930,096.23
financial assets
3. Gains and losses on reclassifying held-to-maturity investments into
available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation difference 6,793.70 -26,745.69
6. Other
After-tax net amount of other comprehensive incomes attributable to
3,327,885.43
minority shareholders
VII. Total comprehensive incomes 701,188,051.06 498,482,276.37
Attributable to owners of the Company 613,763,452.51 430,667,522.86
Attributable to minority shareholders 87,424,598.55 67,814,753.51
VIII. Earnings per share
(I) Basic earnings per share 0.92 0.68
(II) Diluted earnings per share 0.92 0.68
4. Income statement of the Company
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun 2015
I. Total sales 6,045,821,092.06 4,508,543,230.27
Less: cost of sales 4,524,954,975.35 3,419,135,539.67
Business taxes and surcharges 33,236,303.28 25,391,195.75
Distribution expenses 895,080,287.51 621,942,553.41
Administrative expenses 209,223,619.71 194,171,028.26
Financial costs -45,716,922.45 -5,454,990.37
Impairment loss 21,496,002.51 -1,238,040.83
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Add: gain/(loss) from change in fair value (―-‖ means loss) -169,471.35
Gain/(loss) from investment (―-‖ means loss) 17,306,094.37 43,144,562.43
Of which: income form investment on associates and joint ventures
II. Business profit (―-‖ means loss) 424,852,920.52 297,571,035.46
Add: non-business income 2,783,345.24 3,372,126.64
Of which: gains from non-current asset disposal 99,572.65 198,814.00
Less: non-business expense 434,564.65 3,352,099.47
Of which: losses from non-current asset disposal 234,891.28 1,441,396.64
III. Total profit (―-‖ means loss) 427,201,701.11 297,591,062.63
Less: income tax expense 70,735,081.19 31,160,247.93
IV. Net profit (―-‖ means loss) 356,466,619.92 266,430,814.70
V. After-tax net amount of other comprehensive incomes 25,339,813.73
(I) Other comprehensive incomes that will not be reclassified into gains
and losses
1. Changes in net liabilities or assets with a defined benefit plan upon
re-measurement
2. Enjoyable shares in other comprehensive incomes in investees that
cannot be reclassified into gains and losses under the equity method
(II) Other comprehensive incomes that will be reclassified into gains
25,339,813.73
and losses
1. Enjoyable shares in other comprehensive incomes in investees that
will be reclassified into gains and losses under the equity method
2. Gains and losses on fair value changes of available-for-sale
25,339,813.73
financial assets
3. Gains and losses on reclassifying held-to-maturity investments into
available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation difference
6. Other
VI. Total comprehensive incomes 381,806,433.65 266,430,814.70
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
5. Consolidated cash flow statement
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun 2015
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 7,270,388,782.83 5,396,428,114.25
Net increase of deposits from customers and dues from banks
Net increase of loans from the central bank
Net increase of funds borrowed from other financial institutions
Cash received from premium of original insurance contracts
Net cash received from reinsurance business
Net increase of deposits of policy holders and investment fund
Net increase of dispose of the financial assets measured by fair value with
the changes be included in the current gains and losses
Cash received from interest, handling charges and commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 22,502,456.41 32,534,853.37
Other cash received relating to operating activities 45,513,803.23 21,410,402.27
Subtotal of cash inflows from operating activities 7,338,405,042.47 5,450,373,369.89
Cash paid for goods and services 3,658,677,508.75 2,425,834,978.83
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 524,746,031.23 476,015,698.91
Various taxes paid 509,900,003.41 349,459,845.85
Other cash payment relating to operating activities 1,037,984,106.20 833,793,362.84
Subtotal of cash outflows from operating activities 5,731,307,649.59 4,085,103,886.43
Net cash flows from operating activities 1,607,097,392.88 1,365,269,483.46
II. Cash flows from investing activities:
Cash received from withdrawal of investments 3,310,000,000.00 3,091,000,000.00
Cash received from return on investments 67,315,479.04 71,943,969.06
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Net cash received from disposal of fixed assets, intangible assets and other
708,034.20 32,937.80
long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investing activities 34,473,639.38
Subtotal of cash inflows from investing activities 3,412,497,152.62 3,162,976,906.86
Cash paid to acquire fixed assets, intangible assets and other long-term
10,938,428.51 39,130,538.80
assets
Cash paid for investment 5,506,000,000.00 4,631,200,000.00
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 5,516,938,428.51 4,670,330,538.80
Net cash flows from investing activities -2,104,441,275.89 -1,507,353,631.94
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority shareholder investments by
subsidiaries
Cash received from borrowings 114,978,442.79
Cash received from issuance of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 114,978,442.79
Repayment of borrowings 99,744,320.47
Cash paid for interest expenses and distribution of dividends or profit 376,001,781.77 285,454,625.28
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 376,001,781.77 385,198,945.75
Net cash flows from financing activities -376,001,781.77 -270,220,502.96
IV. Effect of foreign exchange rate changes on cash and cash equivalents
V. Net increase in cash and cash equivalents -873,345,664.78 -412,304,651.44
Add: Opening balance of cash and cash equivalents 2,792,685,328.69 1,516,739,804.86
VI. Closing balance of cash and cash equivalents 1,919,339,663.91 1,104,435,153.42
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
6. Cash flow statement of the Company
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun 2015
I. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 4,472,927,007.09 3,089,800,740.60
Tax refunds received 4,291,106.27
Other cash received relating to operating activities 27,847,107.11 8,399,689.06
Subtotal of cash inflows from operating activities 4,500,774,114.20 3,102,491,535.93
Cash paid for goods and services 2,689,346,047.46 1,277,647,053.39
Cash paid to and for employees 371,117,437.36 317,513,278.75
Various taxes paid 389,325,858.67 213,430,780.42
Other cash payment relating to operating activities 741,951,997.54 583,408,996.69
Subtotal of cash outflows from operating activities 4,191,741,341.03 2,392,000,109.25
Net cash flows from operating activities 309,032,773.17 710,491,426.68
II. Cash flows from investing activities:
Cash received from retraction of investments 1,915,000,000.00 1,985,000,000.00
Cash received from return on investments 17,306,094.37 43,268,003.67
Net cash received from disposal of fixed assets, intangible assets and other
699,422.23 28,497.80
long-term assets
Net cash received from disposal of subsidiaries or other business units
Other cash received relating to investing activities 27,275,633.98
Subtotal of cash inflows from investing activities 1,960,281,150.58 2,028,296,501.47
Cash paid to acquire fixed assets, intangible assets and other long-term
4,139,931.83 18,704,544.76
assets
Cash paid for investment 2,826,000,000.00 2,630,000,000.00
Net cash paid to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 2,830,139,931.83 2,648,704,544.76
Net cash flows from investing activities -869,858,781.25 -620,408,043.29
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings 15,234,122.32
Cash received from issuance of bonds
Other cash received relating to financing activities
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Subtotal of cash inflows from financing activities 15,234,122.32
Repayment of borrowings
Cash paid for interest expenses and distribution of dividends or profit 376,001,781.77 284,619,493.79
Other cash payments relating to financing activities
Sub-total of cash outflows from financing activities 376,001,781.77 284,619,493.79
Net cash flows from financing activities -376,001,781.77 -269,385,371.47
IV. Effect of foreign exchange rate changes on cash and cash equivalents
V. Net increase in cash and cash equivalents -936,827,789.85 -179,301,988.08
Add: Opening balance of cash and cash equivalents 1,866,443,114.64 600,231,105.51
VI. Closing balance of cash and cash equivalents 929,615,324.79 420,929,117.43
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
7. Consolidated Statement of Changes in Owners’ Equity
Jan.-Jun. 2016
Unit: RMB
Jan.-Jun. 2016
Equity attributable to owners of the Company
Other equity instruments
Item Minority Total owners’
Less: Other General
Perpetual Specific
Share capital Preferred Capital reserve treasury comprehensive Surplus reserve risk Retained profit interests equity
capital Other reserve
shares stock income reserve
securities
I. Balance at the end of the
632,487,764.00 1,164,014,947.85 34,813,284.64 332,594,722.29 2,960,955,454.36 862,860,913.96 5,987,727,087.10
previous year
Add: change of
accounting policy
Correction of errors in
previous periods
Business combination
under the same control
Other
II. Balance at the
632,487,764.00 1,164,014,947.85 34,813,284.64 332,594,722.29 2,960,955,454.36 862,860,913.96 5,987,727,087.10
period-begin
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
III. Increase/ decrease in the
13,602,534.28 32,936,889.93 201,333,904.19 88,173,407.39 336,046,735.79
period (―-‖ means decrease)
(I) Total amount of the
32,936,889.93 580,826,562.59 87,424,598.56 701,188,051.08
comprehensive income
(II) Capital paid in and
13,602,534.28 748,808.83 14,351,343.11
reduced by owners
1. Common shares invested
by the shareholders
2. Capital invested by the
owners of other equity
instruments
3. Amounts of share-based
payments recognized in 13,602,534.28 748,808.83 14,351,343.11
owners’ equity
4. Others
(III) Profit distribution -379,492,658.40 -379,492,658.40
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
-379,492,658.40 -379,492,658.40
(or shareholders)
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
4. Other
(IV) 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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other
IV. Closing balance 632,487,764.00 1,177,617,482.13 67,750,174.57 332,594,722.29 3,162,289,358.55 951,034,321.35 6,323,773,822.89
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Jan.-Jun. 2015
Unit: RMB
Jan.-Jun. 2015
Equity attributable to owners of the Company
Other equity instruments
Item Minority Total owners’
Less: Other General
Perpetual Specific
Share capital Preferred Capital reserve treasury comprehensive Surplus reserve risk Retained profit interests equity
capital Other reserve
shares stock income reserve
securities
I. Balance at the end of the
632,487,764.00 1,139,956,336.03 -3,449,689.57 332,594,722.29 2,326,392,979.58 716,713,982.38 5,144,696,094.71
previous year
Add: change of accounting
policy
Correction of errors in
previous periods
Business combination
under the same control
Other
II. Balance at the
632,487,764.00 1,139,956,336.03 -3,449,689.57 332,594,722.29 2,326,392,979.58 716,713,982.38 5,144,696,094.71
period-begin
III. Increase/ decrease in the
24,058,611.82 38,262,974.21 634,562,474.78 146,146,931.58 843,030,992.39
period (―-‖ means decrease)
(I) Total amount of the 38,262,974.21 919,181,968.58 144,233,621.39 1,101,678,564.18
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
comprehensive income
(II) Capital paid in and
24,058,611.82 1,913,310.19 25,971,922.01
reduced by owners
1. Common shares invested
by the shareholders
2. Capital invested by the
owners of other equity
instruments
3. Amounts of share-based
payments recognized in 22,544,356.36 1,353,341.72 23,897,698.08
owners’ equity
4. Others 1,514,255.46 559,968.47 2,074,223.93
(III) Profit distribution -284,619,493.80 -284,619,493.80
1. Appropriations to surplus
reserves
2. Appropriations to general
risk provisions
3. Appropriations to owners
-284,619,493.80 -284,619,493.80
(or shareholders)
4. Other
(IV) Internal carry-forward
of owners’ equity
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other
IV. Closing balance 632,487,764.00 1,164,014,947.85 34,813,284.64 332,594,722.29 2,960,955,454.36 862,860,913.96 5,987,727,087.10
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
8. Statement of changes in owners’ equity of the Company
Jan.-Jun. 2016
Unit: RMB
Jan.-Jun. 2016
Other equity instruments
Less: Other
Item Specific Total owners’
Perpetual
Share capital Preferred Capital reserve treasury comprehensiv Surplus reserve Retained profit
capital Other reserve equity
shares stock e income
securities
I. Balance at the end of the previous year 632,487,764.00 1,319,496,538.02 13,608,826.40 319,944,578.39 2,224,114,783.65 4,509,652,490.46
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the period-begin 632,487,764.00 1,319,496,538.02 13,608,826.40 319,944,578.39 2,224,114,783.65 4,509,652,490.46
III. Increase/ decrease in the period (―-‖ means decrease) 11,855,439.47 25,339,813.73 -23,026,038.47 14,169,214.73
(I) Total amount of the comprehensive income 25,339,813.73 356,466,619.93 381,806,433.66
(II) Capital paid in and reduced by owners 11,855,439.47 11,855,439.47
1. Common shares invested by the shareholders
2. Capital invested by the owners of other equity
instruments
3. Amounts of share-based payments recognized in 11,855,439.47 11,855,439.47
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
owners’ equity
4. Others
(III) Profit distribution -379,492,658.40 -379,492,658.40
1. Appropriations to surplus reserves
2. Appropriations to general risk provisions -379,492,658.40 -379,492,658.40
3. Appropriations to owners (or shareholders)
4. Other
(IV) 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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other 632,487,764.00 1,331,351,977.49 38,948,640.13 319,944,578.39 2,201,088,745.18 4,523,821,705.19
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Jan.-Jun. 2015
Unit: RMB
Jan.-Jun. 2015
Other equity instruments
Less: Other
Item Specific Total owners’
Perpetual
Share capital Preferred Capital reserve treasury comprehensiv Surplus reserve Retained profit
capital Other reserve equity
shares stock e income
securities
I. Balance at the end of the previous year 632,487,764.00 1,300,124,962.20 319,944,578.39 1,887,731,678.84 4,140,288,983.43
Add: change of accounting policy
Correction of errors in previous periods
Other
II. Balance at the period-begin 632,487,764.00 1,300,124,962.20 319,944,578.39 1,887,731,678.84 4,140,288,983.43
III. Increase/ decrease in the period (―-‖ means decrease) 19,371,575.82 13,608,826.40 336,383,104.81 369,363,507.03
(I) Total amount of the comprehensive income 13,608,826.40 621,002,598.61 634,611,425.01
(II) Capital paid in and reduced by owners 19,371,575.82 19,371,575.82
1. Common shares invested by the shareholders
2. Capital invested by the owners of other equity
instruments
3. Amounts of share-based payments recognized in
19,371,309.18 19,371,309.18
owners’ equity
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
4. Others 266.64 266.64
(III) Profit distribution -284,619,493.80 -284,619,493.80
1. Appropriations to surplus reserves
2. Appropriations to general risk provisions -284,619,493.80 -284,619,493.80
3. Appropriations to owners (or shareholders)
4. Other
(IV) 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
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other 632,487,764.00 1,319,496,538.02 13,608,826.40 319,944,578.39 2,224,114,783.65 4,509,652,490.46
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(III) Company profile
Wuxi Little Swan Company Ltd. was incorporated 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 on 29
November 1993. Then the Company domestically and publicly 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, which amounted to RMB310 million of the share capital of the Company
after the issuance.
In March 1997, the Company domestically and publicly issued 60,000,000 shares of RMB ordinary share
(including 9,000,000 shares of staff-share) 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 RMB720.83 million, and the Company was formally
listed in Shenzhen Stock Exchange in March 1997 with the short form of stock as Little Swan A and stock code as
000418.
On 20 July 2006, the proposal on the equity division reform of the Company reviewed and approved by the
relevant shareholders meeting with the consideration of the non-circulating shareholders paid for the circulating
stock shareholders of the Company for acquiring the circulation right for the non-circulating shares held by them:
regarded 4 Aug. 2006 as the shares alternation registration date as well as executed the consideration proposal by
paying 2.5 shares of every 10 shares for the A shares circulating stock shareholders on 7 Aug. 2006 and the shares
with consideration listed and circulated on that date. After the execution of the above consideration of the bonus,
the total amount of the shares of the Company remain the same, while the shares structure correspondingly
changed.
On 9 May 2008, the 2007 Annual General Meeting reviewed and approved the capital accumulation fund turn add
equity schemes: 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 RMB1 per share, thus the
added share capital totaled RMB182,551,920 and after which, the total share capital turned from 365,103,840
shares to 547,655,760 shares of the Company.
According to the resolutions of the 4th Session of the 6th Board of Directors and the 1st Provisional Shareholders
General Meeting in 2010, having approved by China Securities Regulatory Commission of the Reply to the
Approval of the Significant Assets Reorganization and the Purchase of the Assets of GD Midea Holding by Wuxi
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Little Swan Co., Ltd. (ZJXK [2010] 1577) on 9 November 2010, 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. This add-issuance increased the share capital by
RMB84,832,004.
After approved by CSRC through the Reply of the Approval of the Merger of GD Midea Holding by Midea
Group Co., Ltd. (ZJXK [2013] 1014 document) that issued on 29 July 2013, Midea Group had split off as well as
consolidated and combined the original controller GD Midea Holding on 18 September 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 December 2013, and after which, Midea Group changed to be the
first largest shareholder of the Company.
On 30 June 2015, the total amount of the outstanding common shares of the company were 632,487,764 shares,
among which the restricted exchange-traded A shares are 3,686,890 shares, accounting for 0.58% of the whole
shares; the unrestricted exchange-traded A shares are 437,765,002 shares, accounting for 69.21%; and the
unrestricted exchange-traded B shares are 191,035,872 shares, account for 30.20% of the whole shares.
Registered address of the Company is No. 18 of Changjiang South Road, National High-tech Industrial
Development Zone, Wuxi and the headquarters office address is No. 18 of Changjiang South Road, Wuxi.
The Company and its subsidiaries 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);
used self-owned funds to investment in financial industry.
The financial statements were approved and authorized for issue by the Board of Directors on the date of 8 Aug.
2016.
For the major subsidiaries that included in the consolidated scope of the Reporting Period, please refer to the
Notes VIII.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
IV. Basis for the preparation of financial statements
1. Preparation basis
The financial report compiled according to the ASBE-Basic Criterion issued by Ministry of Finance on 15
February 2006 and the follow-up periods, each specific accounting criterions as well as the relevant regulations
(hereinafer referred to as a whole of ―ASBE) and the Compilation Rules for Information Disclosure by Companies
Offering Securities to the Public No. 15 – General Provisions on Financial Reports (2014 Revision) issued by the
China Securities Regulatory Commission (CSRC).
2. Continuation
The current operation situation of the Company was normal and after comprehensively appraised the acquired
information, came out that there was no any factor that obviously influenced the continuation of the Company
within 12 months since the end of the reporting period and estimated that the operation activities of the Company
would continue in future 12 months. The financial report compiled based on the continuation.
V. Important accounting policies and estimations
The Company confirmed the specific accounting policies and accounting estimates according to the production
characteristics, which mainly reflected in the withdrawal methods of the bad debt provision of the accounts
receivables (Notes V (10)), pricing methods of the inventories (Notes V (11)), depreciation of the fixed assets,
amortization of the intangible assets as well as the depreciation and amortization of the investment properties
(Notes V (14), (17), (13)), the judgment criterion of the impairment of the long-term assets (Notes V (19)) and the
recognition time-point of the revenues (Notes V (23)) and so on.
1. Statement of compliance with Enterprise accounting standards
The 2016 semi-annual financial statements of the company comply with the requirements of Accounting
Standards with the merger on 30 June 2016 and the Company’s financial conditions as well as the relevant
information of the semi-annual merger of Y2016 and the operation results and the cash flow of the Company are
truly and completely disclosed in the financial statements.
2. Accounting period
The company’s accounting year is from 1st January to 31st December for each calendar year.
3. Fiscal period
The fiscal periods of an enterprise includes fiscal years and fiscal periods shorter than a complete fiscal year. The
fiscal period of the Company is 12 months.
4. Recording currency
The recording currency of the company is Renminbi
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
5. Accounting processing method of business combination under the same control and not under the same
control
(a) The business combinations which are under the same control
Combination consideration paid by the combining party and net assets acquired shall all be measured based on
their book value. Corresponding capital reserve (capital stock premium) shall be adjusted according to the
difference between the book value of such net assets and that of the combination consideration; when such capital
reserve (capital stock premium) cannot write them down, retained earnings shall be adjusted. Meanwhile, relevant
direct expenses resulting from such business combination shall be included in the profit and loss for the period,
and all transaction expenses resulting from issuing equity securities or debt securities for such business
combination shall be included in the initial recognition amount of such equity security or debt security.
(b) Business combination not under the same control
Combination costs occurred to purchaser and obtained net identifiable assets shall be calculated based on the fair
value in the purchasing date. If combination costs are greater than the seller’s balance obtained from the fair value
of net identifiable assets in the purchasing date, such surplus shall be confirmed as Goodwill; if less, such balance
shall be included in current profit and loss. Meanwhile, relevant direct expenses resulting from such business
combination shall be included in the profit and loss for the period, and all transaction expenses resulting from
issuing equity securities or debt securities for such business combination shall be included in the initial
recognition amount of such equity security or debt security.
6. Consolidated financial statement compilation method
The consolidation scope of financial statement shall include the company and all subsidiaries.
From the day when the company obtained the actual control of its subsidiaries, the company could initiate
corresponding consolidation which shall be ended up to the day of losing such actual control. Subsidiaries
obtained through business combination under the same control shall be incorporated into the consideration scope
from the day when they’re put under the control of the final controlling party, and the net profit realized before the
combination day shall be individually reflected in the consolidated income statement.
When consolidated financial statement is being formulated, the company’s accounting policy and accounting
period shall be regarded as final and binding to adjust the subsidiary’s financial statement if the subsidiary’s
accounting policy is not consistent with that of the company. For the subsidiary acquired through business
combination not under the same control, its financial statement shall be adjusted based on the fair value of the net
identifiable assets in the day of purchase.
All of the company’s major incoming and outgoing balances, transactions and unrealized profit shall be set off
during the compilation of the consolidated financial statement. The subsidiary’s shareholder equity, net profit and
loss for the period and the part of comprehensive income not belonging to the company shall be individually
indicated and shown in the consolidated financial statement under shareholder’s equity, net profit and total
comprehensive income respectively as minority equity, minority interest income and total comprehensive income
attributed to minority shareholders. All unrealized internal transaction profit and loss resulting from the
company’s sales of assets to the subsidiary shall be applied to set off the net profit attributed to the parent
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
company’s shareholders; all unrealized internal transaction profit and loss resulting from the subsidiary’s sales of
assets to the parent company shall be set off accordingly by the net profit attributed the parent company’s
shareholders and minority interest income based on corresponding distribution ratio (the company to the
subsidiary). All unrealized internal transaction profit and loss resulting from assets sales among subsidiaries shall
be set off accordingly by the net profit attributed the parent company’s shareholders and minority interest income
based on corresponding distribution ratio (the company to the seller’s subsidiary).
If any discrepancy exists between the recognition by regarding the company and its subsidiaries as the accounting
subject and the recognition by regarding the company or its subsidiary as the accounting subject in terms of the
same transaction, this transaction shall be adjusted from the perspective of combination.
7. Cash and cash equivalent recognition standard
The company’s cash and cash equivalent shall include cash in treasury, deposit that can be applied for any
payment at any time, cashes featuring short time limit, strong flowability and convenience in conversion into
known amount and investment of low risk in value variations.
8. Foreign currency transaction and foreign currency statement translation
(a) Foreign currency transaction
Foreign currency transaction shall be recorded in an account based on RMB (through applying the spot rate in the
day of transaction).
On balance sheet day, foreign currency monetary items shall be converted into RMB based on the spot rate of
exchange. The exchange difference resulting from the specific foreign currency borrowings in order to purchase
and construct the assets in conformity with corresponding capitalization conditions shall be capitalized during the
process of capitalization, and other exchange differences shall be directly included in profit and loss for the period.
Foreign currency non-monetary items measured at historical cost shall be converted based on the spot rate of
exchange on balance sheet day. The amount of cash subject to the change in exchange rate shall be individually
indicated and shown in cash flow statement.
(b) Foreign currency statement translation
Assets and liabilities stated in balance sheet statement (overseas operation) shall be converted based on the spot
rate of exchange on balance sheet day; in terms of shareholder’s equity, except undistributed profit, other items
shall be converted based on the spot rate of exchange. Income and cost items stated in balance sheet statement
(overseas operation) shall be converted based on the spot rate of exchange in the day of purchase. Corresponding
foreign currency statement translation differences mentioned above shall be included in other comprehensive
incomes. Cash flow items (overseas operation) shall be converted based on the spot rate of exchange in the day of
cash flow. Meanwhile, the amount of cash subject to the change in exchange rate shall be individually indicated
and shown in cash flow statement.
9. Financial instruments
(a) Financial assets
(i) Classification of financial assets
Upon initial recognition, financial assets shall be classified into financial assets measured based on its fair value
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
and its variations included in profit and loss for the period, account receivable, available-for-sale financial assets
and held-to-maturity investment. However, the classification of financial assets depends on the company’s
intention on and capacity of holding such financial assets. Currently, financial assets held by the company include
financial assets measured based on its fair value and its variations included in profit and loss for the period,
account receivable, and available-for-sale financial assets.
Financial assets measured based on its fair value and its variations included in profit and loss for the period
Financial assets measured based on its fair value and its variations included in profit and loss for the period shall
be derivatives-forward foreign exchange contract.
Account receivable
Account receivable refers to non-derivative financial assets with fixed or recognized recovery cost and no quoted
price in the active market, including notes receivable, accounts receivable, other receivables and structural
deposits etc.
Available-for-sale financial assets
Available-for-sale financial assets include available-for-sale non-derivative financial assets designated upon the
initial recognition and financial assets not classified into others. Within 12 months after balance sheet day, (sold)
available-for-sale financial assets shall be shown in balance sheet statement as other current assets.
(ii) Recognition and measurement
When the company becomes one party for the financial instrument contract, financial assets shall be recognized
based on its fair value in balance sheet statement. Transaction expenses resulting form financial assets measured
based on its fair value and its variations included in profit and loss for the period shall be included in profit and
loss for the period; other transaction expenses related to such financial assets shall be included in the amount after
initial recognition.
Follow-up measurement shall be conducted for financial assets measured based on its fair value and its variations
included in profit and loss for the period and available-for-sale financial assets based on their fair value while
equity instrument investment that cannot be reliably measured without any quoted price in the active market shall
be measured based on costs; receivables and held-to-maturity investment shall be measured based on amortized
cost by means of effective interest method.
The variation in fair value of financial assets measured based on its fair value and its variations included in profit
and loss for the period shall be included in profit and loss for the period as fair value variation profit and loss;
during the holding of assets, corresponding interests or cash dividends and disposal profit and loss shall all be
included in profit and loss for the period.
Except depreciation loss and corresponding exchange profit and loss resulting from foreign currency monetary
financial assets, variations of the fair value of available-for-sale financial assets shall be directly included in
shareholder’s equity. When such financial asset is derecognized, total variation previously included in equity shall
be directly transferred to profit and loss for the period. Cash dividends (related to available-for-sale equity
instrument investment) declared for distribution by the invested unit shall be included in profit and loss for the
period as income from investment.
(iii) Financial assets depreciation
Except financial assets measured based on its fair value and its variations included in profit and loss for the period,
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
the company shall check the book value of corresponding financial assets on balance sheet day; if any objective
evidence proves the depreciation of certain financial assets, corresponding depreciation reserve shall be calculated
and withdrawn.
Such objective evidence refers to any matter actually happened that will influence the future cash flow prediction
of such financial assets after the initial recognition, and the company is able to reliably measure such matter.
Objective evidences indicating the depreciation of available-for-sale equity instrument investment include any
sharp or permanent drop of corresponding fair value of such equity instrument investment. The company shall
respective check various available-for-sale equity instrument investments on balance sheet day. If such the fair
value of such equity instrument investment on balance sheet day is less than its initial investment cost (such
difference exceeding 50%) or such duration exceeds 1 year (including 1 year), it shall be the sign of depreciation;
if such difference reaches 20% (including 20%) to 50%, the company shall completely take relevant factors into
consideration including price fluctuation so as to judge whether such equity instrument investment is depreciated.
The company shall apply weighted mean method to calculate the initial investment cost of such available-for-sale
equity instrument investment.
When financial assets measured based on amortized cost is depreciated, corresponding depreciation reserve shall
be calculated and withdrawn based on the difference resulting from the current value of expected future cash flow
(excluding future credit loss not occurred) less than its book value. If any objective evidence proves the recovery
of such financial assets and it’s related to the matter after the recognition of such loss, depreciation loss originally
recognized shall be restituted and included in profit and loss for the period.
When available-for-sale financial assets measured based on fair value is depreciated, the total loss previously
included in shareholder’s equity resulting from the decrease in fair value shall be restituted and included in
depreciation loss. For available-for-sale debt instrument investment whose depreciation loss is recognized,
depreciation loss previously recognized shall be restituted and included in profit and loss for the period when it is
related to the matter happened after original depreciation loss is recognized and such value increases. For
available-for-sale equity instrument investment whose depreciation loss is recognized, the increase of fair value
shall be directly included in shareholder’s equity.
When available-for-sale financial assets measured based on cost is depreciated, the difference between its book
value and its current value recognized from its future cash flow based on its market return shall be recognized as
depreciation loss and included in profit and loss for the period. Such resulting depreciation loss shall not be
restituted any longer.
(iv) Derecognition of financial assets
Corresponding financial assets shall be derecognized when any of the following conditions is met: (1) the
contractual right to collect the cash flow of such financial assets is terminated; (2) such financial assets is
transferred, and the company has transferred all risks and rewards related to its ownership to the party accepting
such financial assets; or (3) such financial assets is transferred. Although the company does not transfer and retain
all risks and rewards related to its ownership, it gives up its control of such financial assets.
When such financial assets is derecognized, the difference between its book value and the sum of received
consideration and the total variation of fair value in shareholder’s equity shall be included in profit and loss for the
period.
(b) Financial liabilities
Upon initial recognition, financial liabilities shall be classified into financial assets measured based on its fair
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
value and its variations included in profit and loss for the period and other financial liabilities. However, the
company’s financial liabilities are mainly other financial liabilities, including account payable and borrowings etc.
Payables include account payable and other payables, which shall be initially measured based on fair value.
Meanwhile, follow-up measurement shall also be conducted by means of effective interest method based on
amortized cost.
Borrowings shall be initially measured based on fair value and the amount deducting relevant transaction
expenses. Meanwhile, follow-up measurement shall also be conducted by means of effective interest method
based on amortized cost.
Other financial liabilities with the time limit less than 1 year (including 1 year) shall be indicated and shown as
current liabilities; if such time limit exceeds 1 year, but such financial liability will be due within (including) 1
year as of balance sheet day, such financial liability shall be indicated and shown as non-current liabilities due
within one year. Others shall be reported as non-current liabilities.
When corresponding financial liability’s current obligation is fully or partially relieved, the relieved part shall be
derecognized. The difference between the book value of the derecognized part and the consideration shall be
included in profit and loss for the period.
(c) Recognition of fair value of financial instrument
The fair value of financial instrument existing in the active market shall be recognized based on its quoted price in
the active market. The fair value of financial instrument not existing in the active market shall be recognized by
means of corresponding valuation technology. During the valuation process, the company shall apply appropriate
valuation technology with strong support from adequate usable data and other information and select the input
value consistent with relevant assets or liabilities features considered by market participants in conducting
relevant transactions. Meanwhile, corresponding observable input value shall be first choice. When it’s impossible
or not feasible to obtain such observable input value, unobservable input value shall be put into service.
10. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made
individually
The single amount of the accounts receivable accounts for more than or equal
to 10% of the total accounts receivable, or the single amount is more than or
Definition or amount criteria for an account equal to RMB10,000,000; the single amount of the other accounts receivable
receivable with a significant single amount at the period-end accounts for more than or equal to 10% of the total other
accounts receivable, or the single amount is more than or equal to
RMB5,000,000.
Executes the withdrawal according to the difference that the current value of
Making individual bad-debt provisions for accounts
the expected future cash flow lowers than its book value of the accounts
receivable with a significant single amount
receivable.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
Name of portfolios Bad debt provision method
Aging group Aging analysis
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Aging Provision rate for Accounts Receivable Provision rate for Other Receivables
Within 1 year (including 1 year) 5.00% 5.00%
1-2 years 10.00% 10.00%
2-3 years 30.00% 30.00%
3-4 years 50.00% 50.00%
4-5 years 50.00% 50.00%
Within 1 year (including 1 year) 100.00% 100.00%
In the groups, those adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, those adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
independently
There is objective evidence indicate that the Company couldn’t withdraw the accounts
Reason for bad debt provision
according to the original articles of the accounts receivable.
Executes the withdrawal according to the difference that the current value of the
Withdrawal method
expected future cash flow lowers than its book value of the accounts receivable.
11. Inventory
(a) Category
Inventory includes raw materials, products in process, stock merchandises and revolving materials that measured
according to the lower one between the cost and the net realizable value.
(b) Pricing method for distributed inventories
Inventories are measured at weighted average method when procured, while the cost of the stock merchandises
and the products in process includes the raw materials, direct labor and manufacturing expenses assigned
according to the system under the normal capacity.
(c) Recognition basis of net realizable value of inventories and withdrawal method for impairment provision of
inventories
When the net realizable value is lower than the cost, provisions for impairment of inventories shall be drawn. The
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
net realizable value is confirmed according to the amount after the estimated sales price of the inventory minus the
amount of the estimated cost occur when the work finished and the estimated sales expenses as well as the
relevant taxes among the daily activities.
(d) The inventory system of the Company is perpetual inventory system.
(e) The method of amortization of the low priced and easily worn articles and the wrappages
The revolving materials include the low priced and easily worn articles and the wrappages and so on, while they
both are amortized by one time write-off method.
12. Long-term equity investment
Long-term equity investments include the company’s long-term equity investment made to the subsidiary and the
company’s long-term equity investment made to the joint venture.
The subsidiary refers to the invested unit under the company’s control; the joint venture refers to the invested unit
whose financial and operational decisions will be largely subject to the company.
The investment to the subsidiary shall be shown in the company’s financial statement based on the amount
recognized through cost method, and consolidated after corresponding adjustment according to equity law when
the consolidated financial statement is being formulated. However, the investment to the joint venture shall be
calculated by using equity method.
(a) Investment cost recognition
Long-term equity investment resulting from business combination: for long-term equity investment resulting from
business combination under the same control, corresponding investment cost shall be determined based on the
share of book value of the owner’s equity of the combined party in the day of combination; for long-term equity
investment resulting from business combination not under the same control, corresponding investment cost shall
be determined based on corresponding combination cost.
Long-term equity investment obtained by other means except business combination: for long-term equity
investment obtained by paying cash, its initial investment cost shall be the actual purchasing payment; for
long-term equity investment obtained by issuing equity securities, the fair value of such equity security shall be its
initial investment cost.
(b) Follow-up measurement and profit and loss recognition method
Long-term equity investment calculated by using cost method shall be measured based on its initial investment
cost; cash dividends or profits declared by the invested unit for distribution shall be recognized as investment
revenue and included in profit and loss for the period.
For long-term equity investment calculated by using equity method, if initial investment cost is more than the
share of fair value of the invested unit’s net identifiable assets, such initial investment cost shall be the long-term
equity investment cost; if such initial investment cost is less than the share of fair value of the invested unit’s net
identifiable assets, such resulting difference shall be included in profit and loss for the period and the long-term
equity investment cost shall be accordingly adjusted and increased.
For long-term equity investment calculated by using equity method, the company shall recognize corresponding
profit and loss for the period according to the share of net profit and loss obtained or held from the invested unit.
In terms of the recognition of the invested unit’s net loss, the long-term equity investment’s book value and other
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
long-term equities constituting the net investment made to the invested unit in reality shall be written down to
Zero, but when the company is obliged to burden corresponding extra loss and relevant expected liability
recognition conditions stated in contingency standard are met, corresponding investment loss shall still be
recognized and calculated as expected liability. As for other changes in owner’s equity of the invested unit except
net profit and loss, other comprehensive revenue and profit distribution, the book value of long-tern equity
investment shall be adjusted and included in capital reserve. Accordingly, the book value of long-term equity
investment shall be reduced based on the part attributed to the company when the profit or cash dividend is
declared and distributed by the invested unit. Meanwhile, the unrealized internal transaction profit and loss
between the company and the invested company shall be applied to determine and set off the part attributed to the
company based on corresponding shareholding ratio, on which basis, corresponding investment profit and loss
shall be recognized. In terms of the internal transaction loss resulted from the company and the invested unit, the
part belonging to assets impairment loss and corresponding unrealized loss shall not be set off.
(c) Basis for confirming joint control and important influence on the invested party
Control means that the company has the right to control the invested party and enjoy variable returns through
participating in relevant activities of the invested party. In addition, the company is also able to make use of its
control right to influence such variable return.
Joint control refers to jointly control an arrangement as agreed by both parties, and activities related to the
arrangement can only be conducted with the consent from all parties involved in such joint control.
Important influence refers to the possession of the right to make decisions about the company’s financial and
business operation policies, but the establishment of these policies cannot be controlled or jointly controlled with
other parties.
(d) Long-term equity investment depreciation
For long-term equity investments attributed to the subsidiary and the joint venture, when their recoverable amount
is less than their book value, such book value shall be written down to corresponding recoverable amount (Notes
19).
13. Investment property
Depreciation or amortization methods
An investment property includes the use rights of leased land and buildings for rental purposes, and is initially
recorded at cost. Subsequent expenditures related to an investment property shall be included into the cost under
conditions that relevant economic benefits are likely to flow in the company and the cost can be measured reliably.
Otherwise, they should be recorded into current profits and losses when incurred.
The company conducts subsequent measurement of all investment properties in the model of cost, and depreciates
or amortizes the buildings and land use rights according to their estimated useful life and net residual value. The
estimated useful life, net residual value and annual depreciation (amortization) rate are as follows:
Items Estimate Useful Life Net Residual Rate Annual Depreciation Rate
Buildings 20-35 years 5.00% 2.71%-4.75%
Land Use Rights 50 years 2.00%
Investment properties should be transferred to fixed assets or intangible assets since the date of their being
changed for self-use. As the purposes of self-use properties are changed for generating rents or capital
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
appreciation, the fixed assets or intangible assets shall be transferred to investment properties from the date of
change. In time of change, the book value before transfer should be used as the recorded value after transfer.
Reviews and appropriate adjustments shall be made annually to the estimated useful life, estimated net residual
rate and depreciation (amortization) methods of the investment properties.
When an investment property is disposed or permanently out of use with the estimation that no further economic
benefits could be obtained from its proposal, it should be derecognized. The disposal revenue of an investment
property for sale, transfer, retirement or damage should be recorded into current profits and losses after deducting
book value and relevant taxes.
As the recoverable amount of an investment property is lower than its book value, its book value should be written
down as the recoverable amount (Note 5(19)).
14. Fixed assets
(1) Recognition method
The fixed assets include the buildings, machineries and equipments, transportation tools, as well as office and
electronic equipment and so on, which are confirmed when the related economic benefits probably flow into the
Company with the cost cold be reliable measured. The purchased and the newly built fixed assets should be
executed the initially measurement according to the cost when acquired. And the follow-up expenses related to the
fixed assets should be included in the fixed assets cost when the economic benefits related to the former that
probably flow into the Company with the cost could be reliable measured; as for the part be replaced, should
derecognize its book value; all of the other follow-up expenses should be included in the current gains and losses
when occour.
(2) Depreciation method
Categories Depreciation method Estimated useful life Residual value Annual depreciation rate
Houses & buildings Average method of useful life 20-35 years 5.00% 2.71%-4.75%
Machineries Average method of useful life 10-15 years 5.00% 6.33%-9.50%
Vehicles Average method of useful life 5 years 5.00% 19%
Office and electronic
Average method of useful life 3-5 years 5.00% 19%-31.67%
equipments
(3) When the recoverable amount of the fixed assets lower than the book value, should reduce the amount
of the book value and include in the recoverable amount (Note V (19)).
(4) Disposal of the fixed assets
When the fixed assets be disposed, or expected not to produce any economic benefits through usage or disposal,
should derecognize the fixed assets. The amount of the disposal revenues of the sales, transfer, scrap or damage
that deducted the book value as well as the relevant taxes should be included in the current gains and losses.
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15. Construction in progress
Construction in progress shall be measured at actual cost. The actual cost comprises construction cost, installation
cost, borrowing costs eligible for capitalization, and other expenditures necessary for the construction in progress
to reach the intended use. Construction in progress is transferred to fixed assets when the assets are ready for their
intended use, and depreciation begins from the following month. As the recoverable amount of the construction in
progress is lower than the book value, its book value should be written down as the recoverable amount (Note
5(18)).
16. Borrowing costs
Borrowing costs incurred from the acquisition and construction of assets which require a substantially long time
before getting ready for the intended use shall be capitalized and included in the cost of the assets as the assets
expenditures and borrowing costs have occurred and the acquisition and construction necessary to get the assets
ready for the intended use have begun. Capitalization stops as the acquisition and construction of assets have got
ready for the intended use, and borrowing costs incurred thereafter shall be included in current profits and losses.
If the acquisition and construction of assets are abnormally irrupted for over three consecutive months, the
capitalization of borrowing costs should be suspended till the acquisition and construction activities of assets are
restarted.
As for the specific borrowings for the acquisition and construction of assets eligible for capitalization, the actual
current interest of the specific borrowings deducted by the deposit interests of unused borrowings in a bank or
benefits from temporary investments should reach the capitalization amount of the specific borrowing costs.
As for the general borrowings occupied for the acquisition and construction of assets eligible for capitalization,
the weighted average of capital expenditures of accumulated capital expenditures beyond special borrowings
multiplied by the weighted average of the real interest rates of general borrowings would confirm the capitalized
amount of general borrowing costs. Real interest rate is used by the initial recognized amount of the borrowings
which is discounted by the future cash flow within the expected duration of the borrowing or an even shorter
period.
17. Intangible assets
(1) Evaluation methods, useful life, impairment test
Intangible assets comprise land use rights, and non-patented technology and software etc, which are measured at
cost.
(a) Land use rights
The land use right allocated by the nation is zero-cost, and there is no specific use term in the land use right
certificate, which should not be amortized. The other land use rights should be averagely amortized based in use
term of 50 years. Charges of lands and buildings purchasing which could not be reasonably allocated between
land use rights and buildings should be used as fixed assets.
(b) Non-patented technology
Non-patented technology should be averagely amortized based on whichever is shorter among contract period,
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profits period and legally regulated period.
(c) Software
Software should be recorded based on the actual payment, and averagely amortized according to an estimated
useful life of 3 to 5 years.
(d) Regular review of useful life and amortization method
The estimated useful life and amortization methods of intangible assets with limited service life should be
reviewed and appropriately adjusted at the end of each year.
(e) Research and development
Internal research and development project expenditure could be divided into research expenditures and
development expenditures based on their nature and whether the intangible assets created by the R&D activities
have high level of uncertainty.
Expenditures of planned surveys, assessment and selections for the purpose of researching production process are
research expenditures and are recorded in current profits and losses in occurrence; expenditures of relevant
designs and tests in production process before mass production are development expenditures, and can be
capitalized if they meet all of the following conditions:
The development of production process has been fully verified by technology team;
The management has approved the budget of production process development;
Studies and analyses of pre-market researches show that the products produced based on production
process have marketing abilities.
There are sufficient technology and funds support to conduct development of production process and
follow-up large scale production;
Expenditures of production process development could be reliably merged.
Development expenditures failing to meet the above conditions would be recorded into current profits and losses.
Previously recorded development expenditures would not be reaffirmed as assets in subsequent periods.
Capitalized expenditures in development phase should be listed as development expenditures on balance sheet,
and would be transferred to intangible assets since the date of the project achieving its intended use.
(f) Impairment of intangible assets
As the recoverable amount of the intangible assets is lower than the book value, its book value should be written
down as the recoverable amount (Note 5(19)).
18. Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with limited life, investment properties measured at cost,
and long-term equity investment in subsidiaries and associates should go through impairment test as there are
signs of impairment on balance sheet; intangible assets not reaching useful status should go through impairment
tests at least annually whether there is sign of impairment or not. As the impairment test results show that the
recoverable amount of assets is lower than the book value, provision for impairment based on the difference
would be prepared and included in impairment losses. The fair value of assets deducted by the higher one between
the net value after disposal and the present value of the expected future cash flow is the recoverable amount.
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Assets impairment preparation should be calculated and confirmed based on single assets, and the assets group
where the assets belong should confirm its recoverable amount in case that the recoverable amount of single assets
is hard to estimate. Assets group is the minimum assets unit to produce cash flow independently.
Goodwill independently listed in balance sheet, intangible assets with uncertain useful life ans development
expenditures of capitalization should go through impairment tests at least annually whether there is sign of
impairment or not. In impairment tests, the book value of goodwill is allocated to assets groups and combination
of assets groups expecting to benefit from the synergies of business merging. The test results show that if the
recoverable amount of assets group or assets group combination including the goodwill allocated is lower than the
book value, relevant impairment losses should be confirmed. The amount of impairment losses firstly claims a
credit against the book value of goodwill allocated to the assets group or assets group combination, and then
claims credit against the book value of other assets in proportion according to the ratio of the book value of other
assets except for goodwill in assets group or assets group combination.
The above assets impairment losses cannot be recovered in subsequent period once confirmed.
19. Long-term unamortized expenses
Long-term unamortized expenses include operating rented fixed assets and other expenses which already happen
and should be amortized over a year and undertaken by current and subsequent phases, and they would be
averagely amortized according to benefit period and listed in the net amount of actual expenses deducted by
accumulated amortization.
20. Employee salary
(1) Accounting treatment of short-term remuneration
Short-term remuneration includes salary, bonus, allowance and subsidy, welfare, medical insurance, industrial
injury insurance, maternity insurance, housing funds, labor union and education funding. In the accounting period
of employees providing service, the company recognizes the actual short-term remuneration as reliabilities and
records it in current profits and losses and relevant asset cost.
(2) Accounting treatment of post-employment benefits
The post-employment benefits of the company are divided into defined contribution plan and defined benefit plan.
Defined contribution plan refers to the post-employment welfare plan that the company does not undertake further
liabilities after depositing fixed expenses in an independent fund; Defined benefit plan refers to the
post-employment welfare plan excluding defined construction plan. Within the period of this report, the
post-employment welfare plan of the company refers to the basic old-age pension insurance and unemployment
insurance deposit for employees, both of which belong to the defined contribution plan.
Basic old-age pension insurance
Employees of the company have joined the social basic old-age pension insurance organized and implemented by
local labor and social security departments. The company pays old-age pension insurance premiums monthly to
local social basic old-age pension insurance agencies according to local social basic old-age pension insurance
contribution base and proportion. After employees retire, local labor and social security departments are
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
responsible for payment of basic old-age pension to employees. In the accounting period of employees providing
service, the company recognizes the payable amount regulated by social security departments as reliabilities and
records it in current profits and losses and relevant asset cost.
(3) Accounting treatment of termination benefits
As the company terminates labor contract with employees before the expiration date, or encourages employees to
accept layoff voluntarily by providing certain compensation, liabilities caused by the compensation to employees
for terminating labor contract with them would be confirmed on whichever is earlier between that the company
could not withdraw the labor relationship or layoff suggestions unilaterally and costs related to paying termination
benefits are confirmed, and should be recorded in current profits and losses.
Early retirement welfare
Subsidiaries of the company provide early retirement welfare for employees accepting early retirement
arrangement. Early retirement welfare refer to salary and social insurance premiums paid to employees who
haven’t reached the retirement age regulated by the country and have stepped down their posts voluntarily after
being approved by the management of the company and the subsidiary they belong to. The subsidiaries should pay
early retirement welfare to these early retired employees from the first date of early retirement till their normal
retirement age. As for early retirement welfare, subsidiaries should conduct accounting treatment. As the
conditions of early retirement welfare are confirmed, the to-be-paid salary and social insurance premiums for
employees from the date when employees stop providing service till the date when they reach legal retirement
date should be confirmed as reliabilities and recorded into current profits and losses at one time. Difference
caused by changes in actuarial assumptions and adjustments of welfare standards for early retirement welfare
should be recorded into current profits and losses.
The estimated termination benefits within a year since the date of balance sheet date should be listed as flowing
liabilities.
21. Estimated liabilities
Current obligations in the form of product quality guarantee and onerous contract should be confirmed as
anticipation liabilities as fulfilling these obligations may lead to flowing out of economic benefits and the amounts
could be measured reliably.
The anticipated liabilities should be initially measured according to the best estimate of fulfilling related current
obligations, and comprehensive considerations should be taken in relevant risks, uncertainty and time value of
money etc. If the time value of money has significant impacts, relevant future cash flow could be discounted to
confirm the best estimate; the increased amount to the book value of anticipated liabilities caused by discount
reduction along with time would be confirmed as interest expenses.
On balance sheet date, the book value of anticipated liabilities should be reviewed and appropriately adjusted to
reflect the best current estimates.
22. Share-based payment
Equity-settled share-based payment refers to that Medea Group grants Medea Group shares to its employers in
trade of their services. As the company is to receive services and has no obligation of settlement, the share-based
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
payment transactions would be treated as equity-settled share-based payment.
The share-based payment in exchange for employees’ services should be measured at the fair value of equity
instruments granted by share-based payment. In each balance sheet date within the awaiting period, services
obtained on the basis of the best estimated of the number of vested equity instruments , and according to the fair
value on the granting date of equity instruments would be recorded into relevant assets cost or period charges, and
the capital reserves should be increased in the meantime.
The share-based payment in exchange for other parties’ services except for employees should be measured at the
fair value of services exchanged by share-based payment on the date of acquisition. If the fair value of other
parties’ employees could not be reliably measured, but the fair value of equity instruments could be reliably
measured, the payment should be measured at the fair value of equity instruments at the acquisition date of
services, and recorded in assets cost or charges according to the confirmed fair value, and the capital reserves
should be increased in the meantime.
23. Revenue
Revenue amount should be confirmed by the fair value of received and receivable contracts or agreements as the
company sells goods and provides services in daily operation activities. Revenue is shown as the net amount after
deducting sales discount and returns.
As economic benefits related to transactions could flow into the company, and relevant revenue could be
measured reliably and also meet the standards for various operation activities as listed below, relevant revenue is
confirmed:
(a) Sales of goods
The company manufactures and sells washing machines. As the products are delivered, main risks and
remuneration of the ownership of the goods would be transferred to the purchaser, and the company would not
conduct continuing management and control over the products. The sales revenue is realized as related income or
price credential has been obtained, and relevant cost could be calculated reliably. Within the report period, the
company’s main sales are realized from dealers, large-scale chain home appliance retailers and e-commerce
platforms. Sales revenue obtained from dealers, large-scale chain home appliance retailers and non-proprietary
e-commerce platforms should be confirmed as products have been delivered to them and accepted by them. Sales
revenue obtained from proprietary e-commerce platform should be confirmed as the products have been delivered
to and accepted by end users.
(b) Transfer of assets use rights
Interest income would be confirmed by actual interest rate in accordance with the time of other parties using
monetary fund of the company.
Operating lease income would be confirmed within the lease period on straight-line basis.
24. Government subsidy
(1) Judgment basis and account treatment methods of assets related government subsidy
Assets related government subsidy refers to government support acquired by the company to be used in
purchasing and building or forming long-term assets in other ways. Benefits related government subsidy refer to
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
the government support except for assets relate government subsidy.
Assets related government subsidy would be confirmed as deferred benefits, averagely allocated within the useful
life of relevant assets, and recorded in current profits and losses. Government subsidy measured at nominal
amount would be recorded to current profits and losses directly.
(2) Judgment basis and account treatment methods of benefits related government subsidy
Benefits related government subsidy, used to compensate expenses and losses of subsequent periods, would be
confirmed as deferred benefits, and recorded into current profits and losses during the period of establishing
relevant costs; those used to compensate relevant expenses and losses that already happened would be recorded
directly to current profits and losses.
25. Deferred income tax assets/ deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities should be confirmed based on the difference
(temporary difference) between tax basis of assets and liabilities and their book values. Corresponding deferred
income tax income assets should be confirmed in accordance with the tax provisions for deductible losses which
could deduct the taxable income in subsequent years. The temporary difference caused by initial confirmation of
goodwill could not confirm the deferred income tax liabilities. Temporary differences formed by initial
confirmation of assets and liabilities generated from non-corporate merging transactions having no influences on
accounting profits or taxable income (deductible losses) could not confirm corresponding deferred income tax
assets and deferred income tax liabilities. In the balance sheet date, deferred income tax assets and deferred
income tax liabilities should be measured based on the appropriate tax rate in the period of expected recovery of
the assets or settlement of the liabilities.
Deferred income tax assets should be confirmed by the possible taxable income used to deduct temporary
difference, deductible losses and tax deduction.
The taxable temporary difference related to investment of subsidiaries and associates could confirm the deferred
income tax liabilities, unless the company could control the time of reverse of temporary difference or the
temporary difference would not reverse in the foreseeable future. The deductible temporary difference related to
investment of subsidiaries and associates could confirm the deferred income tax assets, as the temporary
difference could possibly reverse in foreseeable future and obtain taxable income which could be used to deduct
deductible temporary difference.
Deferred income tax assets and deferred income tax liabilities meeting all of the following conditions could be
listed as the net amount after deduction:
Deferred income tax assets and deferred income tax liabilities are related to the income tax collected by
the same tax bureau from the same taxpayer of the company.
The taxpayer of the company owns the legal rights of settle the current income tax assets and income tax
liabilities in net amount.
26. Lease
(1) Accounting treatment methods of operating lease
The rent payment of operating lease during the lease period should be recorded in related asset cost or current
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profits and losses on a straight-line basis.
27. Other critical accounting policies and accounting estimates
Based on historical experience and other factors, including reasonable expectations of future events, the company
conducts continuous evaluation of critical accounting estimates and key judgments adopted.
(a) Critical accounting estimates and key assumptions
The following critical accounting estimates and key assumptions will lead to important risks of significant
adjustment in the book value of assets and liabilities of next fiscal year:
(i) Accounting estimates of impairment of receivables
The management shall assess whether there is impairment of receivables on the balance sheet date according to
the accounting policies in Note 5(10). The impairment of receivables should be judged and estimated based on the
credit, financial status and market conditions of the clients of the company. Even if the company’s management
has made the best estimate and preparation of provision for the losses of bad debts, related results of impairment
may be significantly changed due to the changes of clients’ financial status and market conditions.
(ii) Accounting estimates of impairment of inventories
According to the accounting policies in Note 5 (11) (c), the management shall assess the realizable value of
inventories on the balance sheet date, which is determined by the estimated selling price of inventories in current
business activities deducted by the estimated future costs before completion and sales, the estimated costs of sales
and relevant taxes. Even if the company’s management has made the best estimate and preparation of provision
for the impairment of inventories, related results of impairment may be significantly changed due to the changes
of clients’ financial status and market conditions.
(iii) Estimated net residual value and useful life of fixed assets, investment properties and intangible assets
The management has assessed the estimated useful life and net residual value of fixed assets as buildings,
machinery and equipment, transportation vehicles and office and electronic devices, investment properties as
buildings and land use rights, and intangible assets as land use rights, and non-patented technology and software
etc. This assessment is made based on historical experience of the estimated useful life and net residual value of
fixed assets, investment properties and intangible assets with same nature and functions, and significant changes
could happen due to technological updates and other causes. As the net residual value or estimated useful life is
lower than the previously estimated value, the management should increase the depreciation and amortization
expenses.
(iv) Accounting estimates of impairment of fixed assets, intangible assets and other long-term assets
Impairment tests need to be conducted in face of events leading to fixed assets, intangible assets and other
long-term assets unrecovered or environmental changes. The recoverable amount shall be confirmed based on the
useful value or market value. The calculation shall be applied to judgment and estimates.
The impairment of assets should be judged by the management, especially in the assessment of the following
items: (i) whether there is event showing the relevant asset value may not be recovered; (ii) whether the fair value
of assets estimated based on continuing operations deducted by the higher one between the net value after disposal
and the present value of the expected future cash flow is higher than the book value of assets; (iii) the key
assumptions should be properly applied in cash flow estimates, including whether the cash flow forecast is
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
discounted at appropriate interest rate. The management has adopted the best estimate as the assumption in
assessing impairment (including discount rate or the growth rate assumption used in cash flow forecast), and
changes of the assumptions may cause significant impacts on the results if impairment test.
(v) Provision of sales rebates
The company and its subsidiaries apply sales rebates policy to their clients of sales. The company and its
subsidiaries conduct regular estimates and withdraw sales rebates in advance in accordance with regulations of
sales agreement, review of specific transactions, historical experience, market conditions and level of channel
inventories, and by reference of the completion status of agreed assessment indicators of sales clients. In case of
significant changes of previous estimates, the above difference would have impacts on sales rebates during the
period of estimates changes.
(vi) Income taxes
The company and its subsidiaries pay corporate income taxes in multiple jurisdictions. In normal operations,
uncertainty exists in the final tax treatment of some transactions and events. Significant judgments are required
from the company and its subsidiaries in the provision of income taxes in each jurisdiction. If the final identified
outcome of these tax matters differs from the initially recorded amount, the difference would have impacts on the
income taxes and deferred income taxed during the period of making the above mentioned identification.
VI. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
Taxable added value (tax amount payable should be measured
according to the balance after the taxable sales multiply the
VAT 17% or 11% or 6%
applicable tax rate then deduct the input tax which allowed to be
deduct at the Reporting Period)
Business tax Real estate rental income, interests income and so on 5%
Urban maintenance and construction tax Paid VAT, business tax amount 7% or 5%
Enterprise income tax Payable income tax amount 15% or 25%
2. Tax preference
In July 2015, the Company got the High Technology Enterprises Certificate (certificate No.: GR201532000606)
issued by Jiangsu Science and Technology Development, Department of Finance of Jiangsu Province, Jiangsu
Provincial Office, SAT and Jiangsu Local Taxation Bureau after the re-examination with the period of validity
lasts for 3 years that from Y2015 to Y2018.
In July 2014, the subsidiary Hefei Media Washing Machine Co., Ltd. got the High Technology Enterprises
Certificate (certificate No.: GR201434000147) issued by Anhui Science and Technology Development,
Department of Finance of Anhui Province, Anhui Provincial Office, SAT and Anhui Local Taxation Bureau after
the re-examination with the period of validity lasts from Y2014 to Y2017.
In July 2015, the subsidiary Wuxi Little Swan GE Co., Ltd. got the High Technology Enterprises Certificate
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(certificate No.: GR201532000557) issued by Jiangsu Science and Technology Development, Department of
Finance of Jiangsu Province, Jiangsu Provincial Office, SAT and Jiangsu Local Taxation Bureau after the
re-examination with the period of validity lasts for 3 years that from Y2015 to Y2018.
In July 2015, the subsidiary Wuxi Filin Electronics Co., Ltd. got the High Technology Enterprises Certificate
(certificate No.: GR201532000917) issued by Jiangsu Science and Technology Development, Department of
Finance of Jiangsu Province, Jiangsu Provincial Office, SAT and Jiangsu Local Taxation Bureau after the
re-examination with the period of validity lasts for 3 years that from Y2015 to Y2018.
Based on the relevant regulations of the No. 28 articles of the Enterprise Income Law of the People’s Republic of
China, the payment of the corporate income tax of the Company, Hefei Midea Washing Machine, Wuxi Little
Swan GE Co., Ltd. and Wuxi Filin Electronics Co. Ltd. should be measured according to the 15% of the tax rate.
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB
Item Closing balance Opening balance
Bank deposits 1,919,339,663.90 2,792,685,328.69
Other monetary funds 135,578,042.75 250,158,596.12
Total 2,054,917,706.65 3,042,843,924.81
Of which: total amount of the accounts deposited abroad 607,387.28 607,997.46
Other notes
On 30 June 2016, the bank acceptance deposit of the other monetary funds was of RMB133,182,859.94 and the
credit guarantee of RMB2,395,182.81.
2. Notes receivable
(1) Notes receivable listed by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 1,794,679,303.47 2,205,189,379.10
Total 1,794,679,303.47 2,205,189,379.10
(2) Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at the
Item
period-end period-end
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Bank acceptance bill 893,861,264.25 0.00
Total 893,861,264.25 0.00
3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdr Withdr
Propor awal Book value Propor awal Book value
Amount Amount Amount Amount
tion propor tion propor
tion tion
Accounts
receivable
withdrawn
bad debt
provision 1,175,991,552.78 100% 58,806,818.45 5.00% 1,117,184,734.33 943,243,995.62 100% 47,168,519.99 5.00% 896,075,475.63
according to
credit risks
characteristi
cs
Total 1,175,991,552.78 100% 58,806,818.45 5.00% 1,117,184,734.33 943,243,995.62 100.% 47,168,519.99 5.00% 896,075,475.63
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Within 1 year 1,175,846,736.56 58,792,336.83 5.00%
1 to 2 years 144,816.22 14,481.62 10.00%
Total 1,175,991,552.78 58,806,818.45 5.00%
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB11,638,298.46; the
amount of the reversed or collected part during the reporting period was of RMB0.00.
(3) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Unit: RMB
Balance of the bad debt Proportion of the total balance
Item Balance
provision of the accounts receivable
Total amount of balance of the
684,943,285.49 34,247,164.27 58.24%
top 5 accounts receivable
4. Prepayment
(1) List by aging analysis:
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 160,691,210.90 99.83% 95,192,076.23 97.50%
1 to 2 years 272,480.00 0.17% 2,416,501.94 2.48%
2 to 3 years 1,598.18 0.00% 0.00%
Over 3 years 20,000.00 0.02%
Total 160,965,289.08 -- 97,628,578.17 --
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Unit: RMB
Proportion of the total
Item Balance
amount of the prepayments
Total amount of the top 5 of the balance of the prepayments 94,681,047.06 58.82%
5. Interests receivable
(1) Category
Unit: RMB
Item Closing balance Opening balance
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Fixed term deposit 566,543.96 0.00
Structured deposit payment 27,899,134.25 22,932,602.74
Total 28,465,678.21 22,932,602.74
6. Other accounts receivable
(1) Other accounts receivable disclosed by type:
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category
Proport Withdrawal Book value Propor Withdrawal Book value
Amount Amount Amount Amount
ion proportion tion proportion
Other
accounts
receivable
withdrawn bad
13,247,443.64 100% 1,064,089.49 8.03% 12,183,354.15 9,956,212.29 100.% 748,032.21 7.51% 9,208,180.08
debt provision
according to
credit risks
characteristics
Total 13,247,443.64 100% 1,064,089.49 8.03% 12,183,354.15 9,956,212.29 100.% 748,032.21 7.51% 9,208,180.08
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Within 1 year 9,144,420.25 457,221.04 5.00%
1 to 2 years 3,465,427.62 346,542.76 10.00%
2 to 3 years 292,361.00 87,708.30 30.00%
3 to 4 years 345,234.77 172,617.38 50.00%
Total 13,247,443.64 1,064,089.49 8.03%
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB316,057.28; the amount
of the reversed or collected part during the reporting period was of RMB 0.00.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing book balance Opening book balance
Margin &cash pledge 1,187,058.00 1,194,312.63
Advance money for another 2,696,656.28 1,544,575.33
Employee loan 4,054,818.91 3,657,991.12
Other 5,308,910.45 3,559,333.21
Total 13,247,443.64 9,956,212.29
(4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party
Unit: RMB
Proportion of the total
Closing balance of
Name of units Nature Closing balance Aging year end balance of the
bad debt provision
accounts receivable
Guangzhou Attend Long-term equity
2,587,038.41 1-2 years 19.53% 258,703.84
Logistics Co., Ltd. investment liquidation
Hefei Hualing Co., Ltd. Rent 1,397,187.69 Within 1 year 10.55% 69,859.38
Wuxi China Resources Quality retention money
725,800.00 Within 1 year 5.48% 125,020.00
Gas Co., Ltd. deposit
Hefei Gas Group Co., Quality retention money
270,000.00 Within 1 year 2.04% 13,500.00
Ltd. deposit
Xu Ning Borrowings 250,000.00 Within 1 year 1.89% 12,500.00
Total -- 5,230,026.10 -- 39.49% 479,583.22
7. Inventory
(1) Category of inventory
Unit: RMB
Closing balance Opening balance
Item
Book balance Falling price Book value Book balance Falling price Book value
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
reserves reserves
Raw materials 21,458,287.01 1,144,774.06 20,313,512.95 21,725,796.66 1,149,192.62 20,576,604.04
Goods in process 8,797,759.46 8,797,759.46 8,189,804.33 8,189,804.33
Inventory goods 612,608,193.94 44,778,930.67 567,829,263.27 755,272,411.35 38,625,852.20 716,646,559.15
Total 642,864,240.41 45,923,704.73 596,940,535.68 785,188,012.34 39,775,044.82 745,412,967.52
(2) Falling price reserves of inventory
Unit: RMB
Increased amount Decreased amount
Item Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 1,149,192.62 4,418.56 1,144,774.06
Inventory goods 38,625,852.20 13,631,207.32 7,478,128.85 44,778,930.67
Total 39,775,044.82 13,631,207.32 7,482,547.41 45,923,704.73
8. Other current assets
Unit: RMB
Item Closing balance Opening balance
Structured deposits 1,970,000,000.00 2,470,000,000.00
Financial products 6,041,332,009.02 3,152,675,560.00
Tax prepaid 93,532,407.32 78,446,417.44
Deferred expense-module 37,280,738.89 32,066,626.79
Total 8,142,145,155.23 5,733,188,604.23
9. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity
300,300.00 100,300.00 200,000.00 300,300.00 100,300.00 200,000.00
instruments
Measured at fair 100,300.00 100,300.00 0.00 100,300.00 100,300.00 0.00
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
value
Measured by cost 200,000.00 200,000.00 200,000.00 0.00 200,000.00
Total 300,300.00 100,300.00 200,000.00 300,300.00 100,300.00 200,000.00
(2) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB
Book balance Depreciation reserves Cash
Shareholdin
bonus
g proportion
Investee Opening Increa Decrea Closing Opening Increa Decrea Closing of the
among the
period se se period period se se period Report
investees
Period
Suzhou People's
150,000.00 150,000.00 150,000.00 150,000.00 0.25%
Market Co., Ltd.
Inner Mongolia
Baotou Department 50,000.00 50,000.00 50,000.00 50,000.00 0.04%
Co., Ltd.
Total 200,000.00 200,000.00 200,000.00 200,000.00 --
10. Investment property
(1) Investment property adopted the cost measurement mode
Unit: RMB
Construction in
Item Houses and buildings Land use right Total
progress
I. Original book value
1. Opening balance 88,425,049.29 22,949,959.07 111,375,008.36
2. Increased amount of the period
(1) Outsourcing
(2) Transfer of inventory\fixed assets\project
under construction
(3) Enterprise combination increase
3. Decreased amount of the period
(1) Disposal
(2) Other
4. Closing balance 88,425,049.29 22,949,959.07 111,375,008.36
II. Accumulative depreciation and accumulative
amortization
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
1. Opening balance 24,340,722.34 5,615,173.21 29,955,895.55
2. Increased amount of the period 2,000,531.64 275,912.46 2,276,444.10
(1) Withdrawal or amortization 2,000,531.64 275,912.46 2,276,444.10
3. Decreased amount of the period
(1) Disposal
(2) Other
4. Closing balance 26,341,253.98 5,891,085.67 32,232,339.65
III. Depreciation reserves
1. Opening balance 12,576,065.29 12,576,065.29
2. Increased amount of the period
(1) Withdrawal
3. Decreased amount of the period
(1) Disposal
(2) Other
4. Closing balance 12,576,065.29 12,576,065.29
IV. Book value
1. Closing book value 49,507,730.02 17,058,873.40 66,566,603.42
2. Opening book value 51,508,261.66 17,334,785.86 68,843,047.52
11. Fixed assets
(1) List of fixed assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Total
buildings equipment equipment equipment
I. Original book value
1. Opening balance 730,443,485.05 877,011,703.05 27,335,068.10 113,116,467.37 1,747,906,723.57
2. Increased amount of the period 2,896,291.36 28,769,352.47 762,589.32 4,220,596.56 36,648,829.71
(1) Purchase 2,896,291.36 28,769,352.47 762,589.32 4,220,596.56 36,648,829.71
(2) Transfer from project under
construction
(3) Enterprise combination
increase
3. Decreased amount of the period 1,258,959.02 474,538.00 2,834,925.73 4,568,422.75
(1) Disposal or Scrap 1,258,959.02 474,538.00 2,834,925.73 4,568,422.75
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
4. Closing balance 733,339,776.41 904,522,096.50 27,623,119.42 114,502,138.20 1,779,987,130.53
II. Accumulative depreciation
1. Opening balance 166,521,051.15 440,072,941.95 23,012,295.94 83,371,414.00 712,977,703.04
2. Increased amount of the period 15,496,608.44 37,788,970.65 719,273.55 6,821,363.18 60,826,215.82
(1) Withdrawal 15,496,608.44 37,788,970.65 719,273.55 6,821,363.18 60,826,215.82
3. Decreased amount of the period 1,046,177.25 450,811.10 2,475,740.44 3,972,728.79
(1) Disposal or Scrap 1,046,177.25 450,811.10 2,475,740.44 3,972,728.79
4. Closing balance 182,017,659.59 476,815,735.35 23,280,758.39 87,717,036.74 769,831,190.07
III. Depreciation reserves
1. Opening balance 3,918,452.47 11,165,580.56 64,570.25 252,125.65 15,400,728.93
2. Increased amount of the period 2,337,593.67 10,632.71 2,348,226.39
(1) Withdrawal 2,337,593.67 10,632.71 2,348,226.39
3. Decreased amount of the period 108,221.60 9,400.00 35,731.31 153,352.91
(1) Disposal or Scrap 108,221.60 9,400.00 35,731.31 153,352.91
4. Closing balance 3,918,452.47 13,394,952.63 65,802.96 216,394.34 17,595,602.41
IV. Book value
1. Closing book value 547,403,664.35 414,311,408.52 4,276,558.07 26,568,707.12 992,560,338.05
2. Opening book value 560,003,981.43 425,773,180.54 4,258,201.91 29,492,927.72 1,019,528,291.60
12. Intangible assets
(1) List of intangible assets
Unit: RMB
Item Land use right Patent right Non-patent right Others Total
I. Original book value
1. Opening balance 242,666,890.39 1,992,000.00 1,395,014.56 246,053,904.95
2. Increased amount of the period
(1) Purchase
(2) Internal R&D
(3) Enterprise combination
increase
3. Decreased amount of the period 1,992,000.00 1,992,000.00
(1) Disposal 1,992,000.00 1,992,000.00
4. Closing balance 242,666,890.39 1,395,014.56 244,061,904.95
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
II. Accumulated amortization
1. Opening balance 45,145,265.36 1,992,000.00 1,395,014.56 48,532,279.92
2. Increased amount of the period 2,619,069.42 2,619,069.42
(1) Withdrawal 2,619,069.42 2,619,069.42
3. Decreased amount of the period 1,992,000.00 1,992,000.00
(1) Disposal 1,992,000.00 1,992,000.00
4. Closing balance 47,764,334.78 1,395,014.56 49,159,349.34
III. Depreciation reserves
1. Opening balance
2. Increased amount of the period
(1) Withdrawal
3. Decreased amount of the period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 194,902,555.61 194,902,555.61
2. Opening book value 197,521,625.03 197,521,625.03
13. Long-term unamortized expenses
Unit: RMB
Amortization
Item Opening balance Increased amount Decrease Closing balance
amount
IT consulting fee 789,380.92 241,237.14 600,915.90 429,702.16
Fixed assets reform 3,448,863.46 868,986.42 2,579,877.04
Total 4,238,244.38 241,237.14 1,469,902.32 3,009,579.20
14. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income
difference assets difference tax assets
Assets impairment provision 110,825,431.71 16,623,814.76 90,583,724.89 13,587,558.73
Internal unrealized profit 38,593,391.08 5,789,008.66 68,217,414.97 10,232,612.25
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Remuneration and dismiss expense 30,978,010.06 4,646,701.51 32,192,522.18 4,828,878.33
Accrued expenses 1,820,925,296.14 273,138,794.43 1,521,730,526.58 228,259,578.99
Accrued liabilities 9,784,866.44 1,467,729.97 9,981,021.44 1,497,153.22
Deferred income (government subsidy) 3,168,933.27 475,339.99 3,395,533.29 509,329.99
Investment differences 8,782,955.88 1,317,443.38 8,782,955.88 1,317,443.38
Total 2,023,058,884.58 303,458,832.70 1,734,883,699.23 260,232,554.89
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income
difference liabilities difference tax liabilities
Change in fair value of available-for-sale
98,332,009.02 14,749,801.35 55,675,560.00 8,351,334.00
financial assets
Total 98,332,009.02 14,749,801.35 55,675,560.00 8,351,334.00
(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax assets income tax assets or deferred income tax assets income tax assets or
Item
and liabilities at the liabilities after off-set at and liabilities at the liabilities after off-set at
period-end the period-end period-begin the period-begin
Deferred income tax
14,749,801.35 288,709,031.34 251,881,220.89
assets
Deferred income tax
14,749,801.35
liabilities
(4) List of unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 24,906,734.29 24,307,336.03
Deductible losses 72,331,535.03 75,877,413.93
Total 97,238,269.32 100,184,749.96
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Years Closing amount Opening amount Notes
Y2016 287,136.58 287,136.58
Y2017 21,513.22 89,186.59
Y2018 16,303,166.71 16,303,166.71
Y2019 49,620,940.42 49,620,940.42
Y2020 6,098,778.10 9,576,983.63
Total 72,331,535.03 75,877,413.93 --
15. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Prepayment for equipment 29,351,772.60 32,963,224.90
Total 29,351,772.60 32,963,224.90
16. Notes payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance bill 2,892,196,959.47 1,953,065,274.06
Total 2,892,196,959.47 1,953,065,274.06
The total amount of the due but not pay notes payable at the period-end was of RMB000.
17. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Material 2,662,515,531.37 2,359,604,637.06
Installation and maintenance fee 703,733.50 39,107,819.41
Freight charge 1,694,476.37 4,246,921.42
Others 39,812,521.32 16,847,964.06
Total 2,704,726,262.56 2,419,807,341.95
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(2) Notes of the accounts payable aging over one year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Caused by unsettled due to the agreement of contract or the
Material 41,301,792.99
quality of the materials was in dispute
Total 41,301,792.99 --
18. Advance from customers
(1) List of advance from customers
Unit: RMB
Item Closing balance Opening balance
Advance from goods 992,809,515.41 1,652,908,781.44
Total 992,809,515.41 1,652,908,781.44
(2) Significant advance from customers aging over one year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Advance from goods 29,093,948.97 The project is under processing
Total 29,093,948.97 --
19. Payroll payable
(1) List of Payroll payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 226,371,272.61 430,832,549.76 478,565,227.95 178,638,594.42
II. Post-employment benefit-defined
14,208,683.82 32,002,701.03 39,626,266.13 6,585,118.72
contribution plans
III. Termination benefits 7,700,760.49 3,486,082.59 4,140,765.96 7,046,077.12
Total 248,280,716.92 466,321,333.38 522,332,260.04 192,269,790.26
(2) List of Short-term salary
Unit: RMB
Item Opening balance Increase Decrease Closing balance
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
1. Salary, bonus, allowance, subsidy 203,062,076.70 369,121,587.35 414,498,173.48 157,685,490.57
2. Employee welfare 5,560,243.09 26,912,320.35 25,927,137.10 6,545,426.34
3. Social insurance 6,877,301.07 15,055,055.84 18,676,342.66 3,256,014.25
Of which: 1. Medical insurance
5,502,760.59 12,287,574.19 15,275,915.06 2,514,419.72
premiums
Work-related injury
950,454.45 2,043,445.44 2,377,399.54 616,500.35
insurance
Maternity insurance 424,086.03 724,036.21 1,023,028.06 125,094.18
4. Housing fund 6,456,798.64 14,082,496.17 13,744,290.41 6,795,004.40
5. Labor union budget and
4,414,853.11 5,661,090.05 5,719,284.30 4,356,658.86
employee education budget
Total 226,371,272.61 430,832,549.76 478,565,227.95 178,638,594.42
(3) List of drawing scheme
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 13,201,271.54 29,893,051.16 36,862,559.58 6,231,763.12
2. Unemployment insurance 1,007,412.28 2,109,649.87 2,763,706.55 353,355.60
Total 14,208,683.82 32,002,701.03 39,626,266.13 6,585,118.72
20. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 6,306,329.13 8,884,701.12
Business tax 95,527.80 229,524.56
Corporate income tax 260,782,462.79 279,867,360.71
Personal income tax 1,213,027.89 1,641,343.76
Urban maintenance and construction tax 1,889,454.04 2,492,588.81
Property tax 3,390,277.41 3,319,892.04
Land use tax 3,198,171.03 3,166,208.90
Stamp tax 387,205.94 226,162.21
Education Surcharge 1,438,017.20 1,779,616.70
House appliance recycling funds 20,700,519.00 22,335,614.00
Others 3,936,754.32 1,165,215.10
Total 303,337,746.55 325,108,227.91
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
House appliance recycling details
In line with the Waste Electrical & Electronic Products Processing Fund Collection Usage Management Methods,
Electrical & Electronic Products should according to the methods to pay the fund. The fund charged, in line with
the Electrical & Electronic Products and the producer's sale number with a way of verifying the fixed amount.
Collection Standards for a wash machine is RMB7/piece.
21. Dividends payable
Unit: RMB
Item Closing balance Opening balance
Common stock dividends 7,150,684.06 5,400,652.06
Total 7,150,684.06 5,400,652.06
22. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB
Item Closing balance Opening balance
Payment for equipment 59,702,070.44 54,026,136.97
Payment for mold 69,695,368.19 50,738,280.49
Subsidy of energy saving & benefit the
25,080,000.00 25,080,000.00
people
Payment made on behalf 16,768,217.57 18,631,746.58
Margin & cash pledged 23,394,150.19 13,794,750.00
Third party payment 6,723,488.91 5,407,965.76
Others 5,242,036.60 4,128,258.14
Total 206,605,331.90 171,807,137.94
(2) Other significant accounts payable with aging over one year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Payment of transportation margin, now was in the stage of
Margin &cash pledged 6,032,466.13
performing the contract
Payment of equipment and Caused by unsettled due to the agreement of contract or the
47,379,550.62
mold quality problem was in dispute
Total 53,412,016.75 --
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
23. Other current-liabilities
Unit: RMB
Item Closing balance Opening balance
Accrued expenses-sale rebate 950,316,704.78 868,491,961.48
Accrued expenses-sales promotional
352,258,117.57 249,793,144.13
expense
Accrued expenses-shipping and handling
132,748,731.04 127,259,322.97
charges
Accrued expenses-maintenance and
248,957,741.12 199,287,081.29
installation charges
Accrued expenses-brand royalty 21,612,607.68 15,536,878.06
Accrued expenses-other 115,038,293.95 61,365,905.31
Total 1,820,932,196.14 1,521,734,293.24
24. Long-term payroll payable
(1) Long-term payroll payable
Unit: RMB
Item Closing balance Opening balance
Termination benefits 26,025,528.06 28,439,299.25
Total 26,025,528.06 28,439,299.25
25. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Formed reason
Product quality assurance 9,784,866.44 9,981,021.44 Product quality problem
Total 9,784,866.44 9,981,021.44 --
Other notes, including significant assumptions, valuation explanation related to significant estimated liabilities:
The subsidiary of the Company Wuxi Little Swan General Electrical Appliances Co., Ltd, its production of
washing machine were mainly sold to the United States and other foreign markets which had the mainly two claim
risks: when there was quality problem in the washing machine, the amount of insurance compensation are not
enough for the risk and the risk of compensation of over PCR (incidence of fault) agreed in the contract with
General Electrical Appliances Co., Ltd. As of 30 Jun. 2016, the Company paid compensation of PCR and losses of
insurance compensation are not enough for the risk of the production sold was estimate RMB9, 784,866.44.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
26. Deferred revenue
Unit: RMB
Item Opening balance Increase Decrease Closing balance Formed reason
Government Government
3,395,533.29 226,600.02 3,168,933.27
subsidies subsidies
Total 3,395,533.29 226,600.02 3,168,933.27 --
Item involving government subsidies:
Unit: RMB
Amount of Amount recorded into
Other Related to
Item Opening balance newly non-operating income Closing balance
changes assets/related income
subsidy in report period
Hefei Midea Washing
Machine Automation
promotion & 3,033,333.29 175,000.02 2,858,333.27 Related to the assets
technological upgrading
projects
Subsidies of substation
176,600.00 25,200.00 151,400.00 Related to the assets
reformation
Special guide subsidies
of modern service 185,600.00 26,400.00 159,200.00 Related to the assets
industry development
Total 3,395,533.29 226,600.02 3,168,933.27 --
27. Share capital
Unit: RMB
Increase/decrease (+/-)
Opening balance New shares Capitalized Closing balance
Bonus shares Others Subtotal
issued Capital reserves
The sum of
632,487,764.00 632,487,764.00
shares
28. Capital surplus
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium 1,055,182,718.57 1,055,182,718.57
Other capital reserves 108,832,229.28 13,602,534.28 122,434,763.56
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Of which: equity incentive 66,599,778.25 13,602,534.28 80,202,312.53
Others 3,053,066.03 3,053,066.03
Transfer from capital reserves in
39,179,385.00 39,179,385.00
the original system
Total 1,164,014,947.85 13,602,534.28 1,177,617,482.13
29. Other comprehensive income
Unit: RMB
Report Period
Less: recorded
in other
Amount comprehensive Attributable to Attributable to
Opening Closing
Item before income income in prior Less: Income owners of the minority
balance balance
tax in current period and tax expense Company after shareholders
period transferred to tax after tax
profit or loss in
current period
I. Other
comprehensive
34,813,284.64 42,663,242.71 6,398,467.35 32,936,889.93 3,327,885.43 67,750,174.57
reclassified into
profits or losses
Of which: profits
or losses of change
in fair value of 37,033,422.18 42,656,449.02 6,398,467.35 32,930,096.23 3,327,885.43 69,963,518.42
available-for-sale
financial assets
Converted
difference of the
-2,220,137.54 6,793.70 6,793.70 -2,213,343.84
foreign currency
financial statement
Total 34,813,284.64 42,663,242.71 6,398,467.35 32,936,889.93 3,327,885.43 67,750,174.57
30. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserves 332,594,722.29 332,594,722.29
Total 332,594,722.29 332,594,722.29
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
31. Retained profits
Unit: RMB
Item Report Period Last period
Opening balance of retained profits before adjustments 2,960,955,454.36 2,326,392,979.58
Opening balance of retained profits after adjustments 2,960,955,454.36 2,326,392,979.58
Add: Net profit attributable to owners of the Company 580,826,562.58 430,694,268.55
Less: dividend of common stock payable 379,492,658.40 284,619,493.80
Closing retained profits 3,162,289,358.54 2,472,467,754.33
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.
32. Revenue and Cost of Sales
Unit: RMB
Report Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 7,327,207,677.60 5,281,634,736.14 5,620,828,547.48 4,072,244,009.19
Other operations 657,579,517.32 530,957,037.53 481,075,317.12 385,297,463.47
Total 7,984,787,194.92 5,812,591,773.67 6,101,903,864.60 4,457,541,472.66
33. Business tax and surcharges
Unit: RMB
Item Report Period Same period of last year
Business tax 203,083.51 443,157.75
Urban maintenance and construction tax 25,211,378.27 20,892,565.70
Education Surcharge 19,309,415.68 16,361,858.81
Total 44,723,877.46 37,697,582.26
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
34. Sales expenses
Unit: RMB
Item Report Period Same period of last year
Sales expenses 1,191,332,056.12 849,993,249.30
Total 1,191,332,056.12 849,993,249.30
35. Administrative expenses
Unit: RMB
Item Report Period Same period of last year
Administrative expenses 265,946,054.68 272,955,998.10
Total 265,946,054.68 272,955,998.10
36. Financial expenses
Unit: RMB
Item Report Period Same period of last year
Interest expenses 7,327,975.82 3,803,155.38
Less: Interest income 65,265,736.10 11,526,158.20
Add: exchange loss -11,313,331.62 -4,959,722.86
Others 5,851,627.44 1,477,448.10
Total -63,399,464.47 -11,205,277.58
37. Asset impairment loss
Unit: RMB
Item Report Period Same period of last year
I. Bad debt loss 11,954,355.73 -1,325,118.42
II. Inventory falling price loss 13,631,207.32
III. Fixed assets impairment losses 2,348,226.39
Total 27,933,789.44 -1,325,118.42
38. Gains on the changes in the fair value
Unit: RMB
Sources Report Period Same period of last year
2. Financial assets measured by fair value and the changes be 0.00 -248,907.75
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
included in the current profits and losses
Of which, gains on the changes in the fair value of
0.00 -248,907.75
derivative financial instruments
Total 0.00 -248,907.75
39. Investment income
Unit: RMB
Item Report Period Same period of last year
Long-term equity investment income accounted by equity
-123,441.24
method
Investment income received from disposal of financial assets
measured by fair value and the changes be included in the 597,040.00
current profits and losses during holding period
Investment income received from disposal of available-for-sale
67,315,479.04 71,346,929.06
financial assets
Total 67,315,479.04 71,820,527.82
40. Non-operating gains
Unit: RMB
Recorded in the amount of the
Item Report Period Same period of last year
non-recurring gains and losses
Total gains from disposal of
116,837.67 223,996.80 116,837.67
non-current assets
Including: Gains from disposal of
116,837.67 223,996.80 116,837.67
fixed assets
Government subsidies 19,387,917.07 11,077,408.20 19,387,917.07
Claims and fine 1,925,692.15 1,603,401.99 1,925,692.15
Others 55,538.87 1,751,395.68 55,538.87
Total 21,485,985.76 14,656,202.67 21,485,985.76
Government subsidies recorded into current profits and losses
Unit: RMB
Whether
Distribut subsidies Special Related to
Distribution Reporting Last
Item ion Nature influence the subsidy assets/relat
entity period period
reason current profits or not ed income
and losses or not
VAT Wuxi New Subsidy Due to engaged in No No 11,946,875.24 7,954,833.07 Related to
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
refund District Tax special industry that the the income
upon Sub Bureau state encouraged and
collection supported, gained
subsidy (obtaining in
line with the law and the
regulations of national
policy)
Due to engaged in
special industry that the
Foreign
state encouraged and
trade and Finance
supported, gained Related to
economic Bureau of Subsidy No No 3,938,000.00 1,668,000.00
subsidy (obtaining in the income
support Hefei
line with the law and the
fund
regulations of national
policy)
Support Due to engaged in
developme special industry that the
Wuxi
nt fund state encouraged and
Commerce
on supported, gained Related to
Bureau and Subsidy No No 817,319.00 94,381.00
insurance subsidy (obtaining in the income
Finance
of export line with the law and the
Bureau
letter of regulations of national
credit policy)
Economic
and
Related to
Others Information Award No No 2,685,722.83 1,360,194.13
the income
Commission
of Wuxi
Total -- -- -- -- -- 19,387,917.07 11,077,408.20 --
41. Non-operating expenses
Unit: RMB
Recorded in the amount of the
Item Report Period Same period of last year
non-recurring gains and losses
Loss on disposal of non-current assets 238,583.97 1,767,090.74 238,583.97
Including: Loss on disposal of fixed assets 238,583.97 1,767,090.74 238,583.97
Donation 385,875.00
Penalty 1,000.00
Others 199,673.37 1,359.07 199,673.37
Local fees (flood prevention and security 1,796,648.03 2,893,031.44
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
funds etc.)
Total 2,234,905.37 5,048,356.25 438,257.34
42. Income tax expense
(1) Lists of income tax expense
Unit: RMB
Item Report Period Same period of last year
Current income tax expense 170,528,669.56 85,483,009.22
Deferred income tax expense -43,226,277.81 -6,566,606.51
Total 127,302,391.75 78,916,402.71
(2) Adjustment process of accounting profit and income tax expense:
Unit: RMB
Item Report Period
Total profits 792,225,667.45
Current income tax expense accounted by tax and relevant regulations 118,833,850.12
Influence of income tax before adjustment 5,949,468.69
Influence of not deductable costs, expenses and losses 2,152,701.47
Influence of deductible temporary difference or deductible losses of deferred income
366,371.48
tax assets derecognized in Report Period.
Income tax expense 127,302,391.75
43. Other comprehensive income
Refer to the Note. 29
44. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities:
Unit: RMB
Item Report Period Same period of last year
Interest income 30,792,096.72 11,526,158.20
Government subsidy 7,441,041.83 3,122,575.07
Claim & fine income 619,052.46 1,603,401.99
Others 6,661,612.22 5,158,267.01
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Total 45,513,803.23 21,410,402.27
(2) Other cash paid relevant to operating activities:
Unit: RMB
Item Report Period Same period of last year
Sales expense paid in Report Period 885,615,523.27 658,681,986.38
Administration expense paid in Report
143,225,724.14 166,592,183.42
Period
Handling charges for financial expense in
5,851,627.44 1,477,448.10
Report Period
Intercourse funds 3,291,231.35 7,041,744.94
Total 1,037,984,106.20 833,793,362.84
(3) Other cash received relevant to investment activities
Unit: RMB
Item Report Period Same period of last year
Income from structured deposits interest 34,473,639.38 0.00
Total 34,473,639.38 0.00
45. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
Unit: RMB
Supplemental information Report Period Same period of last year
1. Reconciliation of net profit to net cash flows generated from operating
-- --
activities
Net profit 664,923,275.70 498,509,022.06
Add: Provision for impairment of assets 27,933,789.44 -1,325,118.42
Depreciation of fixed assets, of oil-gas assets, of productive biological
63,102,659.92 57,610,111.52
assets
Amortization of intangible assets 2,619,069.42 2,619,476.35
Long-term unamortized expenses 1,469,902.32 3,014,839.00
Losses on disposal of fixed assets, intangible assets and other long-term
121,746.30 16,780.87
assets (gains: negative)
Losses from variation of fair value (gains: negative) 248,907.75
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Financial cost (gains: negative) -34,473,639.38 835,131.49
Investment loss (gains: negative) -67,315,479.04 -71,820,527.82
Decrease in deferred income tax assets (gains: negative) -36,827,810.46 -6,529,270.35
Increase in deferred income tax liabilities
-37,336.16
(―-‖ means decrease)
Decrease in inventory (gains: negative) 134,845,643.10 151,430,212.58
Decrease in accounts receivable from operating activities (gains:
47,112,616.96 1,090,041,707.37
negative)
Increase in payables from operating activities (decrease: negative) 789,234,275.49 -366,660,118.23
Others 14,351,343.11 7,315,665.45
Net cash flows generated from operating activities 1,607,097,392.88 1,365,269,483.46
2. Significant investing and financing activities without involvement of
-- --
cash receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of cash 1,919,339,663.91 1,104,435,153.42
Less: Opening balance of cash 2,792,685,328.69 1,516,739,804.86
Net increase in cash and cash equivalents -873,345,664.78 -412,304,651.44
(2) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1,919,339,663.91 2,792,685,328.69
Of which: bank deposit on demand 1,919,339,663.91 2,792,685,328.69
II. Closing balance of cash and cash equivalents 1,919,339,663.91 2,792,685,328.69
46. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary capital
Including: USD 28,937,844.55 6.6312 191,892,634.77
EUR 534,818.68 7.3750 3,944,287.77
JPY 15.00 0.0645 0.97
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Account receivable
Including: USD 83,259,354.54 6.6312 552,109,431.81
EUR 4,123,416.41 7.3750 30,410,196.02
Prepayment
Including: USD 2,173,673.28 6.6312 14,414,062.25
EUR 391,142.48 7.3750 2,884,675.79
Accounts payable
Including: USD 3,031,340.52 6.6312 20,101,425.26
EUR 354,213.54 7.3750 2,612,324.86
Advance from customers
Including: USD 624,760.42 6.6312 4,142,911.31
EUR 2,306.27 7.3750 17,008.74
Other account payable
Including: USD 24,500.00 6.6312 162,464.40
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the
reason.
□ Applicable √ Not applicable
VIII. Changes of merge scope
1. Other
No such case in Report Period.
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main operating Registration Nature of Holding percentage (%)
Name Way of gaining
place place business Directly Indirectly
Wuxi Little Swan General Electric
Wuxi Wuxi Production 70.00% Setting-up
Appliances Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. Wuxi Wuxi Production 73.00% Setting-up
Jiangsu Little Swan Marketing Wuxi Wuxi Trading 99.54% 0.09% Setting-up
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
and Sales Co. , Ltd.
Wuxi Little Swan Import & Import &
Wuxi Wuxi 88.46% Setting-up
Export Co. , Ltd. Export
Little Swan International
Singapore Singapore Investment 100.00% Setting-up
(Singapore) Co., Ltd.
Enterprise
Little Swan (Jingzhou) Electronic
Jingzhou Jingzhou Production 100.00% combination under
Appliances Co., Ltd.
same control
Enterprise
Hefei Midea Washing Machine
Hefei Hefei Production 69.47% combination under
Co., Ltd.
same control
(2) Significant not wholly owned subsidiary
Unit: RMB
Shareholding The profits and losses Declaring dividends Balance of minority
Name proportion of minority arbitrate to the distribute to shareholder at closing
shareholder minority shareholders minority shareholder period
Wuxi Little Swan General Electric
30.00% 2,886,591.90 54,608,115.36
Appliances Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. 27.00% 25,112,906.11 164,984,699.86
Hefei Midea Washing Machine Co.,
30.53% 56,097,215.11 731,441,506.13
Ltd.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB
Closing balance Opening balance
Name Non-current Non-current Non-current Non-current
Current assets Total assets Current liabilities Total liabilities Current assets Total assets Current liabilities Total liabilities
assets liability assets liability
Wuxi Little
Swan
General
289,672,813.96 16,012,665.65 305,685,479.61 94,858,206.45 9,784,866.44 104,643,072.89 262,214,616.13 16,950,575.14 279,165,191.27 78,953,274.67 10,064,518.04 89,017,792.71
Electric
Appliances
Co. , Ltd.
Wuxi Filin
Electronics 777,869,717.67 53,707,751.34 831,577,469.01 220,212,425.05 310,600.00 220,523,025.05 630,040,449.62 56,417,457.81 686,457,907.43 168,388,420.57 362,200.00 168,750,620.57
Co. , Ltd.
Hefei Midea
Washing
6,149,013,542.63 659,960,807.23 6,808,974,349.86 4,410,303,680.79 2,858,333.27 4,413,162,014.06 4,899,597,642.19 660,802,382.62 5,560,400,024.81 3,323,567,046.22 36,569,848.57 3,360,136,894.79
Machine
Co., Ltd.
Unit: RMB
Report Period Same period of last year
Name Total comprehensive Total comprehensive
Operation revenue Net profit Operating cash flow Operation revenue Net profit Operating cash flow
income income
Wuxi Little Swan
General Electric 120,576,054.31 9,621,973.01 10,646,735.20 26,239,561.85 119,149,998.62 8,226,230.04 8,226,230.04 -4,492,352.40
Appliances Co. , Ltd.
Wuxi Filin Electronics
330,094,718.79 93,010,763.35 93,010,763.35 11,960,170.45 237,418,559.26 56,849,342.90 56,849,342.90 -85,141,564.76
Co. , Ltd.
Hefei Midea Washing
3,490,739,131.29 183,744,563.10 193,637,968.84 1,307,170,946.87 2,889,158,007.44 163,765,351.84 163,765,351.84 1,141,880,840.95
Machine Co., Ltd.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
2. Equity in joint venture arrangement or associated enterprise
The Company held 20% equity of Guangzhou Antaida Logistical Co., Ltd., due to operation problem, was decided
to close and conducted liquidation with the approval of Meeting of the Board of Directors. As of reporting date,
all the liquidation work was conducted in line with the approval liquidation principle and procedure, the assets and
liabilities had been liquidated. The closing residual property (RMB10, 355,358.23 of total bank deposits)
distribute to shareholders in line with investment proportion. Wuxi Little Swan Co., Ltd. was distributed
RMB2, 587,038.41of residual property in line with investment proportion.
X. The risk related financial instruments
The financial risks the Company faced during operation are: credit risk, market risk (mainly exchange risk and
interest rate risk) and liquidity risk. The Company and its subsidiary overall risk management plan considering the
unpredictability of financial market, aim to reduce the potential negative influence to the financial results of the
Company and its subsidiaries.
(1) Market risk
(a) Foreign exchange risk
The main operation of the Company and its subsidiary was within the state, which settled by RMB. The foreign
assets, liabilities and foreign trade in future (the foreign assets, liabilities and foreign trade in future mainly settled
by USD) the Company and its subsidiary had recognized existing foreign exchange risk. The Company's
headquarter financial department supervise the scope of foreign assets, liabilities and foreign trade in future of
the Company and its subsidiary to maximally reduce foreign exchange risk , thus the Company and its subsidiary
will avoid foreign exchange rate in a way of signing forward foreign exchange contract or currency exchange
contract.
On 30 June 2016 and 31 December 2015, the lists of foreign financial assets and foreign financial liabilities
discounted into RMB held by Company and its subsidiary were as following:
Unit: RMB
Closing balance
Item
Item Other foreign currency Total
Foreign financial assets
Monetary capital 191,892,634.77 3,944,288.73 195,836,923.50
Accounts receivable 566,523,494.06 33,294,871.81 599,818,365.87
Total 758,416,128.83 37,239,160.54 795,655,289.37
Foreign financial liabilities
Payable -24,406,800.97 -2,629,333.60 -27,036,134.57
Opening balance
Item
Item Other foreign currency Total
Foreign financial assets
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Monetary capital 299,468,993.14 5,111,988.93 304,580,982.07
Accounts receivable 665,033,732.65 4,291,192.21 669,324,924.86
Total 964,502,725.79 9,403,181.14 973,905,906.93
Foreign financial liabilities
Payable -39,699,749.59 -39,699,749.59
(b) Interest rate risk
On 30 June 2016 and 31 December 2015, there was no short term or long-term interest-bearing debt contracts of
floating interest rate in the Company and its subsidiary, thus the management believe that there was not existing
significant interest rate risk.
(2) Credit risk
The Company and its subsidiary adopt group classification to manage the credit risk. Credit risk mainly incurred
in bank deposit, account receivable, other account receivable, note receivable, structure deposit, financial products
investment, etc..
The bank deposits of the Company and its subsidiary were deposit in the state-owned banks and other large and
medium-sized commercial banks, the Company believe that there was not existing significant credit risk, and
won't lead to any significant losses due to break a contract to the entity.
The Company and its subsidiary entrust commercial bank, trust company, assets management company and other
financial institutions to conduct short term low risk finance investment, participate in bank finance products, trust
plan of trust company, assets management plan of assets management company, the main investment direction
was financial instrument with the high credit rating, better fluidity, trust products and assets management plan
with prospective earnings, and conducting commercial bank guaranteed finance business with low risk, stable
interest and no more than 1 year investment period in our inter-bank market. The idle fund of the Company and its
subsidiary used for trust investment, not invest in stock and its derivative product, security investment fund and
trust investment for security investment purpose and investment relevant to other securities.
Besides, as for account receivable, other account receivable and note receivable, the Company and its subsidiary
set relevant policy to control credit risk exposure. The Company and its subsidiary, base on the financial situation
of the client, possibility of obtaining guarantee from third party, credit record, and other factors such as the recent
market situation etc. to evaluate the credit qualification of client and set relevant credit period. The Company and
its subsidiary regularly supervise the credit record of client, as for the client with bad credit records, the Company
and its subsidiary will adopt reminder letters, shorten the credit period or cancel credit period etc. to ensure the
overall credit risk of the Company within control. On 30 June 2016, there was no significant overdue account
receivable
(3) Liquidity risk
The Company and its subsidiary response for its cash flow prediction The head financial department base on
collecting cash flow prediction of each subsidiary, and at combination level continuously supervise short term and
long term capital need to ensure maintain plenty of cash reserve and securities can be realized at any time;
meanwhile continuously supervise whether confirm to stipulation of loan contract, obtained commitment of
adequate emergency capital from main financial institution to meet the short term and long term capital need.
On balance sheet date, each financial liabilities listed by un-discounted contract cash flow according to date were
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
as following:
Unit: RMB
30 June 2016
Item
Within 1 year 1-2 years 2-5 years Over 5 years Total
Notes payable 2,892,196,959.47 2,892,196,959.47
Accounts
2,663,424,469.57 13,067,033.98 14,140,693.96 14,094,065.05 2,704,726,262.56
payable
Dividends
7,150,684.06 7,150,684.06
payable
Other
870,615,491.36 870,615,491.36
current-liabilities
Other account
146,489,452.75 26,329,289.23 25,125,696.81 8,660,893.11 206,605,331.90
payable
Total 6,579,877,057.21 39,396,323.21 39,266,390.77 22,754,958.16 6,681,294,729.35
31 December 2015
Item
Within 1 year 1-2 years 2-5 years Over 5 years Total
Notes payable 1,953,065,274.06 1,953,065,274.06
Accounts
2,375,896,772.95 16,821,841.38 12,186,706.03 14,902,021.59 2,419,807,341.95
payable
Dividends
5,400,652.06 5,400,652.06
payable
Other
653,242,331.76 653,242,331.76
current-liabilities
Other account
124,771,982.94 18,518,858.35 22,190,830.33 6,325,466.32 171,807,137.94
payable
Total 5,112,377,013.77 35,340,699.73 34,377,536.36 21,227,487.91 5,203,322,737.77
On 30 June 2016 and 31 December 2015, due to withholding sales rebate in other current liabilities not belong to
financial liabilities, the other current liabilities not including withholding sale rebate listed in the aforesaid
financial liabilities
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
The fair value measurement result's level was determined by the lowest level of input value which had
significance to the whole measurement of fair value:
The first level was to achieve the same asset or liability without adjustment in the active market quotation on
measurement date.
The second level was relevant asset or liability directly or indirectly observable input values except input value of
first level.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
The third level was relevant asset or liability directly or indirectly unobservable input values.
As for financial instrument trade in active market, the Company recognized its fair value by offer in active market.
As for financial instrument not trade in active market, the Company recognized its fair value by valuation
technique. The valuation model mainly was the discounted cash flow and market comparable company model, etc..
The input value of valuation technique mainly include no risk interest rate, benchmark interest rate, exchange rate,
bad credit, liquidity premium, EBITDA multiplier, lack of marketability discount etc..
Unit: RMB
Closing fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
Others 6,041,332,009.02 6,041,332,009.02
II. Inconsistent fair value
-- -- -- --
measurement
2. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
On 30 June 2016, financial assets with fair value measurement items at level 3 were all the break-even floating
income financial product investment, which all adopt valuation technique to recognize its fair value.
3. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
The incurred date lead to events of conversion between different levels was recognized as time-point of
conversion between different levels. There was no conversion between level 1 and level 2 in Report Period.
4. Fair value of financial assets and liabilities not measured at fair value
Available for sale financial assets measured at cost was the unlisted share investment with no offer in active
market and larger reasonable valuation change range and each fair value probability cannot reasonably recognized,
thus, the fair value cannot be reliably measured.
Financial assets and liabilities measured at amortized cost mainly include: account receivable and account
payable.
Except for aforesaid available for sale financial assets measured at cost, there is little difference between the book
value and the fair value of financial assets and liabilities not measured at fair value.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
XII. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of Proportion of
share held by voting rights
Name of parent company Registration place Nature of business Registered capital parent company owned by parent
against the company against
Company (%) the Company (%)
Manufacture, sales and
Foshan after sale service of
MIDEA GROUP CO., LTD. 6,424,934,259.00 52.67% 52.67%
Guangdong household appliances and
its equipments
2. Subsidiaries of the Company
See details to Notes IV.
3. Information on other related parties of the Company
Name Relationship
MIDEA SCOTT&ENGLISH ELECTRONIICS SDN.BHD Under control of controlling shareholder of the Company
PT.Midea Planet Indonesia Under control of controlling shareholder of the Company
Ningbo Midea United Material Supply Co., Ltd Under control of controlling shareholder of the Company
Huai'an Welling Motor Manufacturing Co., Ltd. Under control of controlling shareholder of the Company
Fuhu Welling Motor Marketing Co., Ltd. Under control of controlling shareholder of the Company
Ningbo Annto Logistics Co. Ltd. Under control of controlling shareholder of the Company
Annto Logistics Co. Ltd. Under control of controlling shareholder of the Company
Ningbo Beautiful Homeland Electric Appliance Service Co., Ltd. Under control of controlling shareholder of the Company
Zhejiang Meizhi Plasticator Co. Ltd. Under control of controlling shareholder of the Company
Midea Group E-commerce Co., Ltd. Under control of controlling shareholder of the Company
Hefei Midea Materials Supply Co., Ltd. Under control of controlling shareholder of the Company
Hubei Midea Refrigerator Co., Ltd. Under control of controlling shareholder of the Company
Hefei Hua Ling Share Holding Co. , Ltd. Under control of controlling shareholder of the Company
Midea Life Electric (Vietnam) Co. , Ltd. Under control of controlling shareholder of the Company
Guangdong Midea Refrigeration Equipment Co., Ltd Under control of controlling shareholder of the Company
Midea Electric Trading (Singapore) Co. Pte. Ltd. Under control of controlling shareholder of the Company
Foshan Shunde District Bainian Technology Development Co., Ltd. Under control of controlling shareholder of the Company
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Information on acquisition of goods and reception of labor service
Unit: RMB
Whether
The approval trade Same period of
Related party Content Report Period exceed trade
credit last year
credit or not
Huai'an Welling Motor Manufacturing
Electrical Machine 345,409,520.97 248,274,543.85
Co., Ltd.
863,247,863.25 No
Fuhu Welling Motor Marketing Co.,
Electrical Machine 65,594,596.51 0.00
Ltd.
Ningbo Midea United Material
Materials 425,080,087.78 1,256,410,256.41 No 245,095,214.95
Supply Co., Ltd
Logistics and rental
Ningbo Meian logistics Co. Ltd. 178,930,465.36 0.00
service
509,433,962.26 No
Logistics and rental
Annto Logistics Co. Ltd. 68,608,403.67 172,170,984.31
service
Ningbo Beautiful Homeland
After-sales service 170,408,807.12 256,410,256.41 No 0.00
Electric Appliance Service Co., Ltd.
Compressors and
Zhejiang Meizhi Plasticator Co. Ltd. 3,792,306.57 12,820,512.82 No 1,751,675.19
materials
Share the
Midea Group E-commerce Co., Ltd. management and 14,305,712.63 24,528,301.89 No 1,389,420.21
promotion fee
Total 1,272,129,900.61 2,922,851,153.04 668,681,838.51
Information of sales of goods and provision of labor service
Unit: RMB
Whether
The approval trade Same period of
Related party Content Report Period exceed trade
credit last year
credit or not
Midea Electric Trading (Singapore) Materials &washing
1,118,554,710.83 3,020,500,000.00 No 905,147,968.25
Co. Pte. Ltd. machine
MIDEA SCOTT&ENGLISH
Washing machine 28,049,217.86 68,000,000.00 No 22,538,129.98
ELECTRONIICS SDN.BHD
PT.Midea Planet Indonesia Washing machine 11,061,356.49 45,000,000.00 No 5,225,547.41
Midea Life Electric (Vietnam) Co.,
Washing machine 10,328,952.32 30,000,000.00 No 919,302.64
Ltd.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Hefei Midea Materials Supply Co.,
Materials 93,979.49
Ltd.
Total 1,167,994,237.50 3,163,500,000.00 933,924,927.77
(2) Information of related lease
The Company was lessor:
Unit: RMB
The lease
The lease income Whether
Category of leased The approval trade income
Name of lessee confirmed in this exceed trade
assets credit confirmed in
year credit or not
last year
Hefei Hua Ling Share Holding Co.,
House property 2,916,884.40 14,150,943.40 No 5,833,768.80
Ltd.
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Name o f
Related party Bad debt Bad debt
item Book balance Book balance
provision provision
Account Midea Electric Trading (Singapore) Co. Pte.
418,094,587.02 20,904,729.35 497,669,561.47 24,883,478.07
receivable Ltd.
Account MIDEA SCOTT&ENGLISH ELECTRONILCS
13,176,426.36 658,821.32 11,531,302.72 576,565.14
receivable SDN.BHD
Account
PT MIDEA PLANET INDONESIA 6,746,257.62 337,312.88 4,712,904.79 235,645.24
receivable
Account Guangdong Midea Refrigeration Equipment
3,379,035.35 168,951.77
receivable Co., Ltd
Account
Midea Life Electric (Vietnam) Co. , Ltd. 5,268,681.63 263,434.08 5,998,410.85 299,920.54
receivable
Account Ningbo Beautiful Homeland Electric
2,538,364.54 126,918.23
receivable Appliance Service Co., Ltd.
Account
Ningbo Annto Logistics Co. Ltd. 344,351.37 17,217.57
receivable
Account
Hubei Midea Refrigerator Co., Ltd. 891,521.86 44,576.09
receivable
Account Annto Logistics Co. Ltd. 388,834.29 19,441.71 288,245.00 14,412.25
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
receivable
Total 446,213,151.46 22,310,657.57 524,815,333.41 26,240,766.67
Other
accounts Hefei Hua Ling Share Holding Co. , Ltd. 1,397,187.69 69,859.38 2,516,870.13 125,843.51
receivable
Total 1,397,187.69 69,859.38 2,516,870.13 125,843.51
Prepayment Midea Group E-commerce Co., Ltd. 595,776.71 1,072,593.00
Foshan Shunde District Bainian Technology
Prepayment 460,500.00
Development Co., Ltd.
Total 1,056,276.71 1,072,593.00
(2) Payables
Unit: RMB
Name o f item Related party Closing book balance Opening book balance
Accounts payable Huai'an Welling Motor Manufacturing Co., Ltd. 51,237,195.38 117,984,701.58
Accounts payable Fuhu Welling Motor Marketing Co., Ltd. 76,745,677.97
Accounts payable Ningbo Midea United Material Supply Co., Ltd 96,286,115.84 73,289,057.95
Accounts payable Zhejiang Meizhi Plasticator Co. Ltd. 1,016,917.15 1,445,079.96
Accounts payable Annto Logistics Co. Ltd. 250,742.05
Accounts payable Ningbo Annto Logistics Co. Ltd. 297.00 1,421.02
Ningbo Beautiful Homeland Electric
Accounts payable 39,107,819.41
Appliance Service Co., Ltd.
Total 225,536,945.39 231,828,079.92
Other account payable MIDEA GROUP CO., LTD. 20,000.00
Ningbo Beautiful Homeland Electric
Other account payable 11,599.00
Appliance Service Co., Ltd.
Total 31,599.00
XIII. Stock payment
1. Other
During the Report Period, the Midea Group and the high-level management personnel and technical backbone
personnel of its subsidiaries implemented stock options incentive plan Phase III, the grant date of phase I stock
options incentive plan was on 18 Feb. 2014, the grant date of phase II was on 27 May. 2015 and the grant date of
phase III stock options incentive plan was on 28 June 2016. So far, the first and second exercise schedule of
phase I stock options incentive plan and the first exercise schedule of phase II stock options incentive plan had
arrived the exercise conditions.
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
At the end of Report Period , in the phase I stock options incentive plan, the Company and its subsidiaries
incentive personnel was 45 people with incentive personnel stock options 8.4375 million; in the phase II stock
options incentive plan, the Company and its subsidiaries incentive personnel was 45 people with incentive
personnel stock options 7.47 million; in the phase III stock options incentive plan, the Company and its
subsidiaries incentive personnel was 65 people with incentive personnel stock options 9.12 million.
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
As of 30 June 2016, there were no significant commitments to be disclosed.
2. Contingency
(1) Significant contingency at balance sheet date
As of 30 June 2016, there were no significant contingency to be disclosed.
XV. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra Withdr
Proport wal Book value Proport awal Book value
Amount Amount Amount Amount
ion proporti ion propor
on tion
Accounts
receivable
with
insignificant
single amount 1,516,537,495.47 70.03% 1,516,537,495.47 763,953,231.04 63.37% 763,953,231.04
for which bad
debt provision
separately
accrued
Accounts
649,120,650.90 29.97% 32,463,105.43 5.00% 616,657,545.47 441,524,088.26 36.63% 22,082,524.63 5.00% 419,441,563.63
receivable
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
withdrawal of
bad debt
provision of
by credit risks
characteristics
Total 2,165,658,146.37 100% 32,463,105.43 5.00% 2,133,195,040.94 1,205,477,319.30 100 % 22,082,524.63 1.83% 1,183,394,794.67
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Accounts receivable (classified by units)
Account receivable Bad debt provision Withdrawal proportion Withdrawal reason
Hefei Midea Washing Machine Co., Ltd. 1,516,537,495.47 0.00
Total 1,516,537,495.47 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Within 1 year 648,979,193.15 32,448,959.66 5.00%
1 to 2 years 141,457.75 14,145.78 10.00%
Total 649,120,650.90 32,463,105.44 5.00%
Notes:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the Report Period was of RMB10, 380,580.80; the
amount of the reversed or collected part during the Report Period was of RMB0.00.
(3) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
Name of customer Balance Bad debt provision Proportion (%)
Total of top 5 of the closing balance of the
493,998,224.26 24,706,984.10 22.81%
accounts receivable
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
2. Other accounts receivable
(1) Other account receivable classified by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra Withdra
Proporti wal Book value Proporti wal Book value
Amount Amount Amount Amount
on proporti on proporti
on on
Other accounts
receivable with
insignificant
single amount
96,835,367.75 89.60% 74,301,602.55 76.73% 22,533,765.20 75,736,975.50 92.10% 75,412,295.90 99.57% 324,679.60
for which bad
debt provision
separately
accrued
Other accounts
receivable
withdrawn bad
debt provision 9,795,389.70 9.06% 802,581.12 8.19% 8,992,808.58 6,499,053.39 7.90% 472,722.82 7.27% 6,026,330.57
according to
credit risks
characteristics
Other accounts
receivable with
insignificant
single amount
1,442,252.95 1.33% 1,110,692.95 77.01% 331,560.00
for which bad
debt provision
separately
accrued
Total 108,073,010.40 100.00% 76,214,876.62 70.52% 31,858,133.78 82,236,028.89 100.00% 75,885,018.72 92.28% 6,351,010.17
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period：
√ Applicable □ Not applicable
Unit: RMB
Other accounts receivable (unit) Closing balance
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Other accounts Withdrawal
Bad debt provision Withdrawal reason
receivable proportion
Hefei Midea Washing Machine Co., Ltd. 22,533,765.20
Jiangsu Little Swan Marketing and Sales
74,301,602.55 74,301,602.55 100.00% Irrecoverable
Co. , Ltd.
Total 96,835,367.75 74,301,602.55 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Within 1 year 5,900,601.07 295,030.04 5.00%
1 to 2 years 3,453,427.62 345,342.76 10.00%
2 to 3 years 292,361.00 87,708.30 30.00%
3 to 4 years 149,000.00 74,500.00 50.00%
Total 9,795,389.69 802,581.10 8.19%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the Report Period was of RMB329, 857.90; the amount
of the reversed or collected part during the Report Period was of RMB0.00.
(3) Other account receivable classified by account nature
Unit: RMB
Nature Closing book balance Opening book balance
Margin &cash pledge 907,058.00 878,058.00
Employee loan 3,626,656.01 3,033,956.98
Internal intercourse funds 98,277,620.71 75,736,975.50
Others 5,261,675.68 2,587,038.41
Total 108,073,010.40 82,236,028.89
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
(4) The top five other account receivable classified by debtor at period-end
Unit: RMB
Bad debt
Name of the entity Nature Closing balance Aging Proportion% provision
Closing balance
Jiangsu Little Swan Marketing and
Intercourse funds 74,301,602.55 3-4years 68.75% 74,301,602.55
Sales Co. , Ltd.
Hefei Midea Washing Machine Co.,
Intercourse funds 22,533,765.21 1-2years 20.85%
Ltd.
Liquidation amount of
Guangzhou Attend Logistics Co.,
long-term equity 2,587,038.41 1-2years 2.39% 258,703.84
Ltd.
investment
Wuxi Little Swan Import & Export
Intercourse funds 1,110,692.95 1-2years 1.03% 1,110,692.95
Co. , Ltd.
Quality guarantee&
Wuxi Huarun Gas Co., Ltd. 725,800.00 Within 1 year 0.67% 125,020.00
pledge
Total -- 101,258,899.12 -- 93.69% 75,796,019.34
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment to the
1,363,823,041.57 57,500,000.00 1,306,323,041.57 1,363,823,041.57 57,500,000.00 1,306,323,041.57
subsidiary
Total 1,363,823,041.57 57,500,000.00 1,306,323,041.57 1,363,823,041.57 57,500,000.00 1,306,323,041.57
(1) Investment to the subsidiary
Unit: RMB
Withdrawn
Closing balance
impairment
Investee Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
Report Period
Wuxi Little Swan Import &
57,500,000.00 57,500,000.00 57,500,000.00
Export Co. , Ltd.
Jiangsu Little Swan Marketing 417,550,000.00 417,550,000.00
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
and Sales Co. , Ltd.
Wuxi Filin Electronics Co. , Ltd. 25,660,308.10 25,660,308.10
Wuxi Little Swan General
19,600,000.00 19,600,000.00
Electric Appliances Co. , Ltd.
San Jin(Jing Zhou) Electrical
11,869,431.12 11,869,431.12
Appliances Co. , Ltd.
Little Swan International
681,050.00 681,050.00
(Singapore) Co., Ltd.
Hefei Midea Washing Machine
830,962,252.35 830,962,252.35
Co., Ltd.
Total 1,363,823,041.57 1,363,823,041.57 57,500,000.00
4. Revenue and Cost of Sales
Unit: RMB
Report Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 5,650,983,937.54 4,194,962,471.12 4,228,136,811.27 3,176,678,635.30
Other operations 394,837,154.52 329,992,504.23 280,406,419.00 242,456,904.37
Total 6,045,821,092.06 4,524,954,975.35 4,508,543,230.27 3,419,135,539.67
5. Investment income
Unit: RMB
Item Report Period Same period of last year
Long-term equity investment income accounted by equity method -123,441.24
Investment income received from financial assets measured by fair
value and the changes be included in the current profits and losses 362,690.00
during holding period
Investment income received from disposal of available-for-sale
17,306,094.37 42,905,313.67
financial assets
Total 17,306,094.37 43,144,562.43
XVI. Supplementary materials
1. Items and amounts of extraordinary gains and losses
Unit: RMB
Item Amount Explanation
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Gains/losses on the disposal of non-current assets -121,746.30
Tax rebates, reductions or exemptions due to approval beyond
19,387,917.07
authority or the lack of official approval documents
Other non-operating income and expenses other than the above 1,742,326.88
Less: Income tax effects 3,151,274.65
Minority interests effects 4,474,663.48
Total 13,382,559.52 --
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 √ Not applicable
2. Return on equity and earnings per share
Weighted average EPS (Yuan/share)
Profit as of Report Period
ROE (%) EPS-basic EPS-diluted
Net profit attributable to common shareholders of the Company 10.82% 0.92 0.92
Net profit attributable to common shareholders of the Company after
10.57% 0.90 0.90
deduction of non-recurring profit and loss
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2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section IX. Documents Available For Reference
1. Text of the 2016 Semi-annual Report 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 Report Period.
Wuxi Little Swan Co., Ltd.
Legal Representative: Fang Hongbo
10 August 2016
121
