Wuxi Little Swan Company Limited First Quarter Report 2019
WUXI LITTLE SWAN COMPANY LIMITED
FIRST QUARTER REPORT 2019
April 2019
1
Wuxi Little Swan Company Limited First Quarter Report 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Wuxi Little Swan Company Limited (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Mr. Fang Hongbo, the Company’s legal representative, Mr. Sun Yunan, the Company’s Chief
Financial Officer (CFO), and Mr. Xu Yunwei, the Company’s Financial Manager hereby
guarantee that the Financial Statements carried in this Report are factual, accurate and
complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Wuxi Little Swan Company Limited First Quarter Report 2019
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2019 Q1 2018 Change (%)
Operating revenue (RMB) 7,359,616,847.47 6,811,940,933.68 8.04%
Net profit attributable to the listed company’s
603,252,543.54 511,022,240.89 18.05%
shareholders (RMB)
Net profit attributable to the listed company’s
601,855,509.38 501,731,839.62 19.96%
shareholders before exceptional items (RMB)
Net cash generated from/used in operating activities
177,234,177.24 284,655,859.29 -37.74%
(RMB)
Basic earnings per share (RMB/share) 0.95 0.81 17.28%
Diluted earnings per share (RMB/share) 0.95 0.81 17.28%
Weighted average return on equity (%) 7.00% 7.00% 0.00%
31 March 2019 31 December 2018 Change (%)
Total assets (RMB) 23,438,092,671.50 23,561,899,125.85 -0.53%
Equity attributable to the listed company’s
8,930,052,500.09 8,312,062,507.53 7.43%
shareholders (RMB)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
-330,222.11
allowance write-offs)
Gain or loss on fair-value changes in trading financial assets and liabilities &
investment income from disposal of trading financial assets and liabilities and
749,009.52
available-for-sale financial assets (exclusive of effective portion of hedges that
arise in the Company’s ordinary course of business)
Non-operating income and expense other than the above 1,384,066.96
Less: Income tax effects 270,518.42
Non-controlling interests effects (net of tax) 135,301.79
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Wuxi Little Swan Company Limited First Quarter Report 2019
Total 1,397,034.16 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders at the Number of preferred shareholders with resumed
25,441 0
period-end voting rights at the period-end (if any)
Top 10 shareholders
Restricted Shares in pledge
Shareholding Total shares
Name of shareholder Nature of shareholder shares or frozen
percentage held
held Status Shares
Domestic
MIDEA GROUP CO., LTD. non-state-owned legal 37.78% 238,948,117
person
TITONI INVESTMENTS
Foreign legal person 14.89% 94,204,942
DEVELOPMENT LTD.
HONGKONG SECURITIES CLEANING
Foreign legal person 7.33% 46,351,423
CO., LTD
GAOLING FUND,L.P. Foreign legal person 3.74% 23,664,125
GREENWOODS CHINA ALPHA
Foreign legal person 1.89% 11,957,218
MASTER FUND
AGRICULTURAL BANK OF CHINA- E Domestic
FUND CONSUMPTION SECTOR STOCK non-state-owned legal 1.72% 10,876,259
INVESTMENT FUND person
CENTRAL HUIJIN ASSET
State-owned legal person 1.61% 10,156,300
MANAGEMENT CO., LTD.
BILL & MELINDA GATES
Foreign legal person 1.28% 8,070,506
FOUNDATION TRUST
NATIONAL SOCIAL SECURITY FUND Domestic 1.18% 7,470,973
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Wuxi Little Swan Company Limited First Quarter Report 2019
406 PORTFOLIO non-state-owned legal
person
Domestic
NATIONAL SOCIAL SECURITY FUND
non-state-owned legal 0.99% 6,290,900
101 PORTFOLIO
person
Top 10 unrestricted shareholders
Unrestricted shares Shares by type
Name of shareholder
held Type Shares
RMB-denominated
MIDEA GROUP CO., LTD. 238,948,117 238,948,117
ordinary stock
Domestically listed
TITONI INVESTMENTS DEVELOPMENT LTD. 94,204,942 94,204,942
foreign stock
RMB-denominated
HONGKONG SECURITIES CLEANING CO., LTD 46,351,423 46,351,423
ordinary stock
Domestically listed
GAOLING FUND,L.P. 23,664,125 23,664,125
foreign stock
Domestically listed
GREENWOODS CHINA ALPHA MASTER FUND 11,957,218 11,957,218
foreign stock
AGRICULTURAL BANK OF CHINA- E FUND CONSUMPTION RMB-denominated
10,876,259 10,876,259
SECTOR STOCK INVESTMENT FUND ordinary stock
RMB-denominated
CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD. 10,156,300 10,156,300
ordinary stock
RMB-denominated
BILL & MELINDA GATES FOUNDATION TRUST 8,070,506 8,070,506
ordinary stock
RMB-denominated
NATIONAL SOCIAL SECURITY FUND 406 PORTFOLIO 7,470,973 7,470,973
ordinary stock
RMB-denominated
NATIONAL SOCIAL SECURITY FUND 101 PORTFOLIO 6,290,900 6,290,900
ordinary stock
Related or acting-in-concert parties among the Midea Group and TITONI INVESTMENTS DEVELOPMENT LTD. are
shareholders above parties acting in concert.
Top 10 ordinary shareholders involved in securities
None
margin trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
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Wuxi Little Swan Company Limited First Quarter Report 2019
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Wuxi Little Swan Company Limited First Quarter Report 2019
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
Unit: RMB’0,000
31 March 31December
Item Change Change (%) Explanation of why
2019 2018
Redemption of structured deposits upon
Monetary capital 340,357.40 192,693.81 147,663.59 76.63%
maturity
Inventories 79,289.75 175,459.71 -96,169.97 -54.81% Affected by the sales cycle
Financial liabilities at fair Changes in the fair value of forward
45.30 307.89 -262.59 -85.29%
value through profit or loss exchange contracts
Advances from customers 75,234.48 202,494.58 -127,260.10 -62.85% Affected by the sales cycle
Payment of the 2018 year-end performance
Payroll payable 23,788.39 39,399.81 -15,611.42 -39.62%
bonuses to employees
Item Q1 2019 Q1 2018 Change Change (%) Explanation of why
Increase in the interest income from
structured deposits and in the exchange
Finance costs -11,806.19 -6,954.22 -4,851.97 -69.77%
gain resulted from exchange rate
fluctuations
Increase in the impairment allowance for an
Asset impairment loss 1,997.79 -994.28 2,992.06 300.93%
increased balance of accounts receivable
Gain on changes in fair Increase in the gain on forward exchange
262.59 34.28 228.31 665.98%
value contracts due to exchange rate fluctuations
Decrease in income from decreased
investments in wealth management
Return on investment -187.69 3,911.33 -4,099.02 -104.80%
products due to more investments in
structured deposits
Net profit attributable to
8,512.79 5,837.68 2,675.11 45.82% Increase in the profit of the subsidiary
non-controlling interests
Other comprehensive Changes in the fair value of
-4.28 51.88 -56.16 -108.25%
income available-for-sale financial assets
Net cash generated
Increase in payments for commodities and
from/used in operating 17,723.42 28,465.59 -10,742.17 -37.74%
services
activities
Net cash generated
Disinvestment from bank’s wealth
from/used in investing 141,793.81 -51,063.11 192,856.91 377.68%
management products
activities
Net cash generated
from/used in financing -12,086.18 -9,066.94 -3,019.24 -33.30% Increase in repayments of borrowings
activities
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Wuxi Little Swan Company Limited First Quarter Report 2019
II Progress, Influence and Solutions with regard to Significant Events
On 24 October 2018, the Company announced the major assets restructuring plan. Midea Group intends to issue
A-shares to absorb the Company, which means Midea Group issues shares to all shareholders of the Company
excluding Midea Group and TITONI to exchange all A-shares and B-shares held by those shareholders. The
A-shares and B-shares held by Midea Group and TITONI are not involved in the conversion and these shares will
be cancelled after the merger by share swap.
After the completion of the merger by share swap, the Company will terminate the listing and cancel the legal
person qualification. Midea Group or its wholly-owned subsidiaries will inherit and undertake all assets, liabilities,
business, personnel, contracts and all other rights and obligations of the Company. Midea Group will apply for
listing on the main board of the Shenzhen Stock Exchange for all additional A-shares due to the merger by share
swap
The above-mentioned major assets restructuring was reviewed and approved on general meetings of both sides on
21 December 2018 and unconditionally passed by the China Securities Regulatory Commission (CSRC) on 20
February 2019 and examined and approved by CSRC on 12 March 2019. At present, the restructuring is in the
progress (see www.cninfo.com.cn for details). Investors are advised to pay attention to the investment risks.
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as
explanation of why:
□ Applicable √ Not applicable
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Wuxi Little Swan Company Limited First Quarter Report 2019
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
Unit: RMB’0,000
Proportion
Rela Rela Actual
Endin of closing
tions ted-p Beginni Sold Impairm gain/lo
Initial Purchase g investment
hip arty Type of ng in the ent ss in
investme Starting Ending d in the invest amount in
Operator with trans derivativ investme Report provisio the
nt date date Reportin ment the
the actio e nt ing n (if Reporti
amount g Period amoun Company’s
Com n or amount Period any) ng
t closing net
pany not Period
assets
Forward
17 April 24 May
Bank Not Not forex 4,488 4,488 0 3,525 963 0.09% 75
2018 2019
contract
Total 4,488 -- -- 4,488 0 3,525 963 0.09% 75
Capital source for derivative investment All from the Company’s own funds
Lawsuits involved (if applicable) N/A
Disclosure date of board announcement
30 March 2019
approving derivative investment (if any)
Disclosure date of shareholders’
meeting announcement approving 23 April 2019
derivative investment (if any)
The Company has considered and formulated the Management Methods for Forex Trading
Business to implement full assessment and control on its derivative investments, with
highlights as follows:
1. About market risk: Exchange rate fluctuations may cause great risk to the Company’s
Analysis of risks and control measures forex trading business. For instance, failure of capital required to arrive in time for
associated with derivative investments performance in forex trading could result in loss and default.
held in the Reporting Period (including Control measures: Speculative trading is not allowed and a prudent and steady principle is
but not limited to market risk, liquidity adopted. A hierarchical management mechanism has been implemented, whereby the
risk, credit risk, operational risk, legal operating unit which has submitted applications for funds business should conduct a risk
risk, etc.) analysis on the conditions and environment that could affect the operating profit and loss,
evaluate the possible greatest revenue and loss, and report the greatest acceptable margin
ratio or total margin amount, so that the Company can update the operating status of the
funds business on a timely basis thus ensuring the arrangement of proper funds before
expiry dates.
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Wuxi Little Swan Company Limited First Quarter Report 2019
2. About operational risk: Risks caused by imperfect internal processes, staff, systems and
external issues may cause the Company to incur losses during the course of its forex
trading business.
Control measures: The Company has not only developed relevant management systems
that clearly define the assignment of responsibility and approval process for forex trading,
but has also established a well-developed monitoring mechanism, aimed at effectively
reducing operational risk by strengthening its risk control over the business,
decision-making and trading processes.
3. About legal risk: The Company's forex trading business is conducted in compliance
with laws and regulations, with clearly defined responsibilities and obligations between
the Company and agencies.
Control measures: The Company has designated relevant departments with the
responsibility for enhancing expertise in laws, regulations and market rules, conducting
strict examination and verification of contracts, defining responsibility and obligations,
and strengthening compliance checks, so as to ensure that the Company's derivatives
investment and position operations meet the requirements of the laws and regulations and
internal management system of the Company.
Changes in market prices or fair value
of derivative investments during the
Reporting Period (fair value analysis Forward forex quotations announced by the Bank of China are used in the fair value
should include measurement method analysis of the Company’s derivative investments.
and related assumptions and
parameters)
Significant changes in accounting
policies and specific accounting
principles adopted for derivative No significant changes
investments in the Reporting Period
compared to previous reporting period
The independent directors of the Company are of the opinion that the Company has
formulated the Management Methods for Forex Trading Business to, which enables the
Company to effectively control risks associated with derivative investment; that for the
Reporting Period, derivative investment was conducted mainly on the Company’s export
Opinion of independent directors on
business by signing forward forex contracts with domestic financial institutions to lock in
derivative investments and risk control
exchange rates and avoid risk caused by exchange rate fluctuations; that no speculative
trading is allowed, leading to no risk of non-performance; and that trading deadlines are
all set according to the Company’s expected payments and collections of payments, with
no impact on the Company’s liquidity.
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
□ Applicable √ Not applicable
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Wuxi Little Swan Company Limited First Quarter Report 2019
No such cases in the Reporting Period.
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Wuxi Little Swan Company Limited First Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 3,403,574,006.66 1,926,938,134.40
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable 3,814,815,965.31 3,019,035,979.14
Including: Notes receivable 1,468,208,663.59 1,061,452,503.99
Accounts receivable 2,346,607,301.72 1,957,583,475.15
Prepayments 105,484,983.75 87,926,863.95
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 264,650,572.92 233,956,205.26
Including: Interest receivable 253,365,895.45 213,514,910.10
Dividends receivable
Financial assets purchased under resale agreements
Inventories 792,897,467.67 1,754,597,149.53
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 13,179,076,369.14 14,670,897,092.07
Total current assets 21,560,499,365.45 21,693,351,424.35
Non-current assets:
Loans and advances to customers
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Wuxi Little Swan Company Limited First Quarter Report 2019
Investments in debt obligations
Available-for-sale financial assets 200,000.00 200,000.00
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments
Investments in other equity instruments
Other non-current financial assets
Investment property 53,862,996.89 54,776,877.23
Fixed assets 1,116,472,164.41 1,121,036,700.25
Construction in progress 17,350,407.43 15,486,834.37
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 180,628,575.95 181,939,282.79
R&D expense
Goodwill
Long-term prepaid expense 22,151,107.68 25,540,285.92
Deferred income tax assets 447,125,928.50 427,278,679.21
Other non-current assets 39,802,125.19 42,289,041.73
Total non-current assets 1,877,593,306.05 1,868,547,701.50
Total assets 23,438,092,671.50 23,561,899,125.85
Current liabilities:
Short-term borrowings 117,603,683.89
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value through profit or loss 452,959.43 3,078,878.95
Derivative financial liabilities
Notes and accounts payable 8,496,803,784.52 7,979,727,116.02
Advances from customers 752,344,775.74 2,024,945,754.25
Financial assets sold under repurchase agreements
Customer deposits and interbank deposits
Payables for acting trading of securities
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Wuxi Little Swan Company Limited First Quarter Report 2019
Payables for underwriting of securities
Payroll payable 237,883,873.69 393,998,052.46
Taxes payable 586,411,650.60 559,619,230.00
Other payables 172,909,045.11 175,263,267.57
Including: Interest payable
Dividends payable 9,049,503.92 9,049,503.92
Handling charges and commissions payable
Reinsurance payables
Contractual liabilities
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities
Other current liabilities 2,686,861,485.25 2,507,883,253.19
Total current liabilities 12,933,667,574.34 13,762,119,236.33
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable 9,248,736.22 9,888,772.71
Provisions 1,729,438.52 1,853,074.62
Deferred income 41,168,233.12 39,475,933.17
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 52,146,407.86 51,217,780.50
Total liabilities 12,985,813,982.20 13,813,337,016.83
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 1,345,431,079.76 1,330,650,826.13
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Wuxi Little Swan Company Limited First Quarter Report 2019
Less: Treasury stock
Other comprehensive income -2,248,904.71 -2,206,100.21
Specific reserve
Surplus reserves 332,594,722.29 332,594,722.29
General reserve
Retained earnings 6,621,787,838.75 6,018,535,295.32
Total equity attributable to owners of the Company as the parent 8,930,052,500.09 8,312,062,507.53
Non-controlling interests 1,522,226,189.21 1,436,499,601.49
Total owners’ equity 10,452,278,689.30 9,748,562,109.02
Total liabilities and owners’ equity 23,438,092,671.50 23,561,899,125.85
Legal representative: Fang Hongbo Chief Financial Officer: Sun Yunan Financial manager: Xu Yunwei
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 1,957,102,494.07 1,054,092,494.27
Trading financial assets
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable 3,568,141,138.60 2,612,181,833.04
Including: Notes receivable 764,769,758.65 589,229,066.42
Accounts receivable 2,803,371,379.95 2,022,952,766.62
Prepayments 74,315,416.02 61,976,396.93
Other receivables 184,563,046.60 147,971,734.02
Including: Interest receivable 178,367,746.93 136,241,903.00
Dividends receivable
Inventories 478,950,665.23 1,012,418,438.83
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 8,457,830,058.05 9,410,921,667.01
Total current assets 14,720,902,818.57 14,299,562,564.10
Non-current assets:
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Wuxi Little Swan Company Limited First Quarter Report 2019
Investments in debt obligations
Available-for-sale financial assets 150,000.00 150,000.00
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 958,235,041.57 958,235,041.57
Investments in other equity instruments
Other non-current financial assets
Investment property 4,417,816.48 4,458,055.96
Fixed assets 614,127,821.75 615,882,736.87
Construction in progress 1,806,014.02 61,980.58
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets
R&D expense 86,537,991.93 87,210,567.00
Goodwill
Long-term prepaid expense 7,651,019.71 8,812,163.74
Deferred income tax assets 285,012,831.61 264,335,974.30
Other non-current assets 28,533,922.49 28,091,110.19
Total non-current assets 1,986,472,459.56 1,967,237,630.21
Total assets 16,707,375,278.13 16,266,800,194.31
Current liabilities:
Short-term borrowings 43,362,419.45
Trading financial liabilities
Financial liabilities at fair value through profit or loss 264,895.14 1,597,534.54
Derivative financial liabilities
Notes and accounts payable 7,925,479,168.58 7,020,284,546.83
Advances from customers 439,300,151.01 1,198,597,569.21
Contractual liabilities
Payroll payable 176,491,665.42 302,942,210.91
Taxes payable 352,469,184.12 347,233,227.80
Other payables 124,557,599.30 124,362,696.11
Including: Interest payable
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Wuxi Little Swan Company Limited First Quarter Report 2019
Dividends payable 9,049,503.92 9,049,503.92
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities
Other current liabilities 1,656,885,339.31 1,536,311,047.76
Total current liabilities 10,675,448,002.88 10,574,691,252.61
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 30,000,000.00 30,000,000.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 30,000,000.00 30,000,000.00
Total liabilities 10,705,448,002.88 10,604,691,252.61
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 1,486,972,184.63 1,473,906,707.63
Less: Treasury stock
Other comprehensive income -39,831.00
Specific reserve
Surplus reserves 319,944,578.39 319,944,578.39
Retained earnings 3,562,562,579.23 3,235,769,891.68
Total owners’ equity 6,001,927,275.25 5,662,108,941.70
Total liabilities and owners’ equity 16,707,375,278.13 16,266,800,194.31
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Wuxi Little Swan Company Limited First Quarter Report 2019
3. Consolidated Income Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Revenue 7,359,616,847.47 6,811,940,933.68
Including: Operating revenue 7,359,616,847.47 6,811,940,933.68
Interest income
Premium income
Handling charge and commission income
2. Costs and expenses 6,573,599,669.26 6,177,665,009.55
Including: Cost of sales 5,228,073,476.41 4,955,290,678.71
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 33,194,877.74 31,716,440.26
Selling expense 1,162,142,285.97 1,026,609,941.05
Administrative expense 65,374,752.65 63,700,807.13
R&D expense 182,898,300.50 179,832,126.62
Finance costs -118,061,874.18 -69,542,219.96
Including: Interest expense 16,403,917.80 18,716,285.06
Interest income -168,770,819.69 -119,235,309.52
Asset impairment loss 19,977,850.17 -9,942,764.26
Credit impairment loss
Add: Other income 8,870,432.86 18,401,624.34
Return on investment (“-” for loss) -1,876,910.00 39,113,264.51
Including: Share of profit or loss of joint ventures and
associates
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 2,625,919.52 342,817.90
Asset disposal income (“-” for loss) -330,222.11 87,113.61
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Wuxi Little Swan Company Limited First Quarter Report 2019
3. Operating profit (“-” for loss) 795,306,398.48 692,220,744.49
Add: Non-operating income 702,847.15 2,325,811.45
Less: Non-operating expense 2,475.89 174,119.84
4. Profit before tax (“-” for loss) 796,006,769.74 694,372,436.10
Less: Income tax expense 107,626,297.24 124,973,358.33
5. Net profit (“-” for net loss) 688,380,472.50 569,399,077.77
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 688,380,472.50 569,399,077.77
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the
603,252,543.54 511,022,240.89
parent
5.2.1 Net profit attributable to non-controlling interests 85,127,928.96 58,376,836.88
6. Other comprehensive income, net of tax -42,804.47 518,838.47
Attributable to owners of the Company as the parent -42,804.47 335,212.02
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other equity
instruments
6.1.4 Changes in the fair value of the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -42,804.47 335,212.02
6.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method
6.2.2 Changes in the fair value of investments in other debt
obligations
6.2.3 Gain/Loss on changes in the fair value of
1,949,466.02
available-for-sale financial assets
6.2.4 Other comprehensive income arising from the
reclassification of financial assets
6.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial assets
6.2.6 Allowance for credit impairments in investments in
other debt obligations
6.2.7 Reserve for cash flow hedges -39,831.00 -1,606,733.75
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Wuxi Little Swan Company Limited First Quarter Report 2019
6.2.8 Differences arising from the translation of foreign
-2,973.47 -7,520.25
currency-denominated financial statements
6.2.9 Other
Attributable to non-controlling interests 183,626.45
7. Total comprehensive income 688,337,668.03 569,917,916.24
Attributable to owners of the Company as the parent 603,209,739.07 511,357,452.91
Attributable to non-controlling interests 85,127,928.96 58,560,463.33
8. Earnings per share
8.1 Basic earnings per share 0.95 0.81
8.2 Diluted earnings per share 0.95 0.81
Legal representative: Fang Hongbo Chief Financial Officer: Sun Yunan Financial manager: Xu Yunwei
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Operating revenue 5,051,151,978.48 4,767,686,978.91
Less: Cost of sales 3,756,372,193.55 3,605,293,753.66
Taxes and surcharges 20,070,260.98 19,507,963.32
Selling expense 758,760,472.09 693,236,807.81
Administrative expense 54,107,157.43 54,631,697.61
R&D expense 146,015,498.24 147,928,399.97
Finance costs -75,096,541.63 -37,055,059.17
Including: Interest expense 8,292,187.20 8,748,219.08
Interest income -106,037,556.17 -68,554,772.15
Asset impairment loss 18,746,732.23 -13,543,369.25
Credit impairment loss
Add: Other income 342,829.57
Return on investment (“-” for loss) -868,960.00 22,701,985.06
Including: Share of profit or loss of joint ventures and
associates
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 1,332,639.40 253,065.85
Asset disposal income (“-” for loss) -38,954.93 -440,752.80
2. Operating profit (“-” for loss) 372,943,759.63 320,201,083.07
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Wuxi Little Swan Company Limited First Quarter Report 2019
Add: Non-operating income 546,925.86 1,256,241.40
Less: Non-operating expense 2,475.89 132,679.98
3. Profit before tax (“-” for loss) 373,488,209.60 321,324,644.49
Less: Income tax expense 46,695,522.05 50,937,581.81
4. Net profit (“-” for net loss) 326,792,687.55 270,387,062.68
4.1 Net profit from continuing operations (“-” for net loss) 326,792,687.55 270,387,062.68
4.2 Net profit from discontinued operations (“-” for net loss) 326,792,687.55 270,387,062.68
5. Other comprehensive income, net of tax -39,831.00 -75,103.61
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined benefit
pension schemes
5.1.2 Other comprehensive income that will not be reclassified
to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other equity
instruments
5.1.4 Changes in the fair value of the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to profit or loss -39,831.00 -75,103.61
5.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other debt
obligations
5.2.3 Gain/Loss on changes in the fair value of available-for-sale
1,531,630.14
financial assets
5.2.4 Other comprehensive income arising from the
reclassification of financial assets
5.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial assets
5.2.6 Allowance for credit impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges -39,831.00 -1,606,733.75
5.2.8 Differences arising from the translation of foreign
currency-denominated financial statements
5.2.9 Other
6. Total comprehensive income 326,752,856.55 270,311,959.07
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
21
Wuxi Little Swan Company Limited First Quarter Report 2019
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 5,095,730,055.67 4,265,171,195.76
Net increase in customer deposits and interbank deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Net increase in proceeds from disposal of financial assets at fair
value through profit or loss
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax rebates 8,186,737.16 13,193,598.89
Cash generated from other operating activities 27,114,249.54 20,560,607.10
Subtotal of cash generated from operating activities 5,131,031,042.36 4,298,925,401.75
Payments for commodities and services 3,975,685,722.88 3,053,498,810.41
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in interbank loans
granted
Payments for claims on original insurance contracts
Net increase in financial assets held for trading purposes
Net increase in interbank loans granted
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 509,997,699.83 462,414,920.99
Taxes paid 269,099,415.47 314,170,117.48
Cash used in other operating activities 199,014,026.93 184,185,693.58
Subtotal of cash used in operating activities 4,953,796,865.11 4,014,269,542.46
Net cash generated from/used in operating activities 177,234,177.24 284,655,859.29
2. Cash flows from investing activities:
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Wuxi Little Swan Company Limited First Quarter Report 2019
Proceeds from disinvestment 5,300,000,000.00 2,700,000,000.00
Return on investment -1,876,910.00 39,113,264.51
Net proceeds from the disposal of fixed assets, intangible assets
61,930.06 731,585.54
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 117,575,368.13 27,027,230.60
Subtotal of cash generated from investing activities 5,415,760,388.19 2,766,872,080.65
Payments for the acquisition of fixed assets, intangible assets and
47,822,331.28 127,503,144.01
other long-lived assets
Payments for investments 3,950,000,000.00 3,150,000,000.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other business
units
Cash used in other investing activities
Subtotal of cash used in investing activities 3,997,822,331.28 3,277,503,144.01
Net cash generated from/used in investing activities 1,417,938,056.91 -510,631,063.36
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-controlling interests to
subsidiaries
Borrowings obtained
Net proceeds from the issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayments of borrowings 117,603,683.89 81,393,672.34
Payments for interest and dividends 3,258,130.52 9,275,732.98
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities
Subtotal of cash used in financing activities 120,861,814.41 90,669,405.32
Net cash generated from/used in financing activities -120,861,814.41 -90,669,405.32
4. Effect of foreign exchange rate changes on cash and cash
-8,481,006.22 -6,380,666.78
equivalents
5. Net increase in cash and cash equivalents 1,465,829,413.54 -323,025,276.17
Add: Cash and cash equivalents, beginning of the period 1,713,233,957.40 1,417,489,071.71
6. Cash and cash equivalents, end of the period 3,179,063,370.94 1,094,463,795.54
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Wuxi Little Swan Company Limited First Quarter Report 2019
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 3,293,536,226.27 2,894,256,697.65
Tax rebates
Cash generated from other operating activities 19,714,936.23 5,580,871.84
Subtotal of cash generated from operating activities 3,313,251,162.50 2,899,837,569.49
Payments for commodities and services 2,564,838,148.72 2,366,907,563.95
Cash paid to and for employees 365,320,924.92 337,491,044.51
Taxes paid 150,225,224.00 129,207,442.27
Cash used in other operating activities 158,555,918.36 156,061,239.87
Subtotal of cash used in operating activities 3,238,940,216.00 2,989,667,290.60
Net cash generated from/used in operating activities 74,310,946.51 -89,829,721.11
2. Cash flows from investing activities:
Proceeds from disinvestment 2,900,000,000.00 1,250,000,000.00
Return on investment -868,960.00 22,683,420.34
Net proceeds from the disposal of fixed assets, intangible assets
40,775.00 203,719.13
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 57,328,929.79 11,094,833.33
Subtotal of cash generated from investing activities 2,956,500,744.79 1,283,981,972.80
Payments for the acquisition of fixed assets, intangible assets and
32,082,423.83 94,911,055.59
other long-lived assets
Payments for investments 2,050,000,000.00 1,500,000,000.00
Net payments for the acquisition of subsidiaries and other business
units
Cash used in other investing activities
Subtotal of cash used in investing activities 2,082,082,423.83 1,594,911,055.59
Net cash generated from/used in investing activities 874,418,320.96 -310,929,082.79
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Net proceeds from the issuance of bonds
24
Wuxi Little Swan Company Limited First Quarter Report 2019
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayments of borrowings 43,362,419.45 16,806,882.34
Payments for interest and dividends 2,175,304.69 7,262,107.77
Cash used in other financing activities
Subtotal of cash used in financing activities 45,537,724.14 24,068,990.11
Net cash generated from/used in financing activities -45,537,724.14 -24,068,990.11
4. Effect of foreign exchange rate changes on cash and cash
-5,298,758.17 -3,472,400.30
equivalents
5. Net increase in cash and cash equivalents 897,892,785.15 -428,300,194.31
Add: Cash and cash equivalents, beginning of the period 930,242,006.18 945,759,061.62
6. Cash and cash equivalents, end of the period 1,828,134,791.33 517,458,867.31
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
Standards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo
27 April 2019
25
