First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Stock Code: 600690 Short Name: Qingdao Haier
First Quarter 2017 Report
Stock Code: 600690
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Contents
I. Important Notice ...................................................................................................................................... 3
II. Company Profile..................................................................................................................................... 3
III. Significant Events ................................................................................................................................. 7
IV. Appendix............................................................................................................................................. 15
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
I. Important Notice
1.1 The Board of Directors, the Board of Supervisors, directors, supervisors and senior management
of Qingdao Haier Co., Ltd. (“the Company”) hereby assure that the content set out in the quarterly
report is true, accurate and complete, and free from any false record, misleading representation or
material omission, and are individually and collectively responsible for the content set out therein.
1.2 All directors of the Company have attended the Board meeting to consider and approve the
quarterly report.
1.3 Liang Haishan (legal representative of the Company), Gong Wei (chief financial officer of the
Company) and Ying Ke (the person in charge of accounting department) hereby certify that the
financial statement set out in the quarterly report is true, accurate and complete.
1.4 The first quarterly report of the Company is unaudited.
Note: This report and its abstract have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
II. Company Profile
2.1 Key financial information
Unit and Currency: RMB
As of 31 March 2017 As of 31 December 2016 Change (%)
Total assets 134,978,297,024.01 131,255,290,325.24 2.84
Net assets attributable to
shareholders of the 28,323,206,022.48 26,364,725,409.83 7.43
Company
January-March 2017 January-March 2016 Change (%)
Net cash flows from
5,809,318,531.26 1,046,237,078.55 455.26
operating activities
January-March 2017 January-March 2016 Change (%)
Operating revenue 37,741,143,448.27 22,236,608,015.25 69.73
Net profit attributable to
shareholders of the 1,738,763,572.81 1,596,815,139.24 8.89
Company
Net profit after
non-recurring gain or loss
attributable to 1,461,794,756.85 968,301,679.47 50.96
shareholders of the
Company
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Weighted average return
6.38 6.76 Decreased 0.38 pct pt
on net assets (%)
Basic earnings per share
0.285 0.262 8.78
(RMB per share)
Diluted earnings per
0.285 0.262 8.78
share (RMB per share)
Notes：
1. In the first quarter of 2017, GEA’s contribution to the revenue of the Company was RMB10.5 billion while its
contribution to net profit attributable to the shareholders of the Company was approximately RMB467 million and its
contribution to net profit after deduction of non-recurring gain or loss attributable to the shareholders of the Company of
approximately RMB261 million.
2. In the first quarter of 2017, the original business of the Company (excluding the effect of consolidating the
financial result of GEA) recorded a revenue of RMB27.25 billion, representing an increase of 22.6% from the same period
of last year, among which, revenue from white appliances increased by 24.9% with a broken down by product as follows:
1) revenue from refrigerator and freezer with an increase of 16.7%, 2) revenue from washing machine with an increase of
20.4%, 3) revenue from air conditioner with an increase of 51.7%, and 4) revenue from kitchen products with an increase
of 20.2%.
3. Since 1 January 2016, the Company has changed the accounting method for Bank of Qingdao Co., Ltd.
(hereinafter referred to as “Bank of Qingdao”) from available-for-sale financial assets to long-term equity investment and
recognized a profit by using equity method. Therefore, the net profit attributable to the shareholders of the Company for
the first quarter of 2016 was adjusted upward accordingly.
4. In the first quarter of 2017, net profit attributable to the shareholders of the Company after deduction of
non-recurring gain or loss increased by 51.0% as compared with the same period of last year, of which, the original
business of the Company (excluding the effect of consolidating the financial result of GEA) increased by 24.0% over the
same period of last year.
Non-recurring Profit or Loss Items and Amount
√Applicable □ Not Applicable
Unit and Currency: RMB
Items Q1 2017
Profit or loss from disposal of non-current assets 6,142,671.42
Profit or loss arising from the fair value change of
165,604,423.38
financial assets held for trading and financial liabilities
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
held for trading, as well as investment income realized
from disposal of financial assets held for trading,
financial liabilities held for trading and financial assets
available for sale except for effective hedging related to
the routine operations of the Company
Non-operating income and expenses other than the
139,628,684.55
above
Minority interests (after tax) -28,234,758.16
Income tax -6,172,205.23
Total 276,968,815.96
2.2 Total number of shareholders and shareholdings of top 10 shareholders at the period-end
Unit: share
Total number of shareholders 167,512
Top ten shareholders
Status of
Number of
Share shares Nature
Name of Number of shares held
holding pledged of
shareholder shares held with selling
% or frozen shareholder
restrictions
Status Number
Domestic
Haier Electric Appliances non-state-o
1,258,684,824 20.64 Nil
International Co., Ltd. wned legal
entity
Domestic
non-state-o
Haier Group Corporation 1,072,610,764 17.59 Nil
wned legal
entity
KKR HOME INVESTMENT Foreign
605,985,988 9.94 605,985,988 Nil
S.A R.L. legal entity
Hong Kong Securities Clearing
423,272,849 6.94 Unknown Unknown
Co., Ltd.
Qingdao Haier Venture & Domestic
Investment Information Co., non-state-o
172,252,560 2.82 Nil
Ltd.(青岛海尔创业投资咨询 wned legal
有限公司）(Note) entity
China Securities Finance
148,426,219 2.43 Unknown Unknown
Corporation Limited
GIC PRIVATE LIMITED 80,128,667 1.31 Unknown Unknown
National social security fund,
70,888,811 1.16 Unknown Unknown
Portfolio 104
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Central Huijin Asset
69,539,900 1.14 Unknown Unknown
Management Ltd.
National social security fund,
48,027,875 0.79 Unknown Unknown
Portfolio 103
Top ten non-restricted shareholders
Number of Class and number of shares
Name of shareholder
non-restricted shares held Class Number
Haier Electric Appliances International
1,258,684,824 RMB ordinary 1,258,684,824
Co., Ltd.
Haier Group Corporation 1,072,610,764 RMB ordinary 1,072,610,764
Hong Kong Securities Clearing Co., Ltd. 423,272,849 RMB ordinary 423,272,849
Qingdao Haier Venture & Investment
Information Co., Ltd.(青岛海尔创业投 172,252,560 RMB ordinary 172,252,560
资咨询有限公司）
China Securities Finance Corporation
148,426,219 RMB ordinary 148,426,219
Limited
GIC PRIVATE LIMITED 80,128,667 RMB ordinary 80,128,667
National social security fund, Portfolio
70,888,811 RMB ordinary 70,888,811
104
Central Huijin Asset Management Ltd. 69,539,900 RMB ordinary 69,539,900
National social security fund, Portfolio
48,027,875 RMB ordinary 48,027,875
103
Platinum Investment Company Limited 42,649,285 RMB ordinary 42,649,285
Related-parties or parties acting in (1) Haier Electric Appliances International Co., Ltd. is a holding
concert among the above mentioned subsidiary of Haier Group Corporation. Haier Group Corporation
shareholders holds 51.20% of its equity. Qingdao Haier Venture & Investment
Information Co., Ltd.(青岛海尔创业投资咨询有限公司) is a party
acting in concert with Haier Group Corporation; (2) Except for
relationship among the above shareholders, the Company is not
aware of whether the other top ten shareholders exist associated
relationship or not, or they are parties acting in concert or not.
Description of preference shareholders
with restoration of voting rights and their N/A
shareholdings
Note: According to the Notice from Qingdao Haier Kitchen Facilities Co., Ltd. (“Kitchen Facilities”) to the
Company on 22 February 2017, Kitchen Facilities had transferred the shares of the Company (0.19% equities
of the Company) to Qingdao Haier Venture & Investment Information Co., Ltd. (青岛海尔创业投资咨询有
限公司) through block trading on 21 February 2017. Upon the completion of the transfer, the shareholding in
the Company held by Haier Group Corporation and the parties acting in concert remained unchanged.
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2.3 Total number of preference shareholders and shareholdings of the top ten of them at the period-
end
□Applicable √ Not Applicable
III. Significant Events
3.1 The changes in the key financial results of this reporting period and the reasons for such changes
√Applicable □Not Applicable
(1) Financial assets measured at fair value and its changes of which included in current profit/loss
decreased by 48.58% from the opening balance, mainly because of the change in fair value of derivative
financial instruments such as future exchange;
(2) Interests receivable increased by 33.04% from the opening balance, mainly due to more interest
receivable recognized by the Company;
(3) Dividends receivable decreased by 46.36% from the opening balance, mainly due to the
dividend received from the associated companies during the period;
(4) Short-term borrowings decreased by 34.68% from the opening balance, mainly attributable to
its financial structure optimization by adjusting certain short-term borrowings into long-term
borrowings;
(5) Financial liabilities measured at fair value and its changes of which included in current
profit/loss increased by 327.58% from the opening balance, mainly due to the change in fair value of
forward financial instruments such as forward exchange contract for the period;
(6) Payments received in advance decreased by 38.56% from the opening balance, mainly due to
the centralized product delivery required by customers in the first quarter;
(7) Interests payable increased by 525.24% as compared with the beginning of the period, mainly
because of more borrowings during the period;
(8) Non-current liabilities due within one year decreased by 41.16% as compared with the
beginning of the period, mainly due to the conversion of debentures payable within one year into shares
by one subsidiary;
(9) Long-term borrowings increased by 34.47% as compared with the beginning of the period,
mainly attributable to the financial structure optimization by adjusting certain short-term borrowings into
long-term borrowings;
(10) Other non-current liabilities decreased by 31.61% as compared with the beginning of the
period, mainly because of the change in fair value of hedging instruments for the period;
(11) Capital reserve increased by 242.42% as compared with the beginning of the period, mainly
attributable to the capital premium arising from the conversion of debentures into shares for the period;
(12) Operating revenue increased by 69.73% from the same period of last year, mainly attributable
to the growth of original business sales and the contribution from GEA for the period which had not
been included for the corresponding period of last year;
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
(13) Operating cost increased by 66.13% from the same period of last year, which was mainly
attributable to the growth of original business sales and the consolidation of GEA for the period;
(14) Taxes and surcharge increased by 124.02% from the same period of last year, mainly
attributable to all relevant taxes during the course of operating activities recognized into the taxes and
surcharge for audit by the Company for the period according to the CAIKUAI No. [2016]22 Value
Added Tax Accounting Treatment Regulations issued by the MOF;
(15) Selling expenses increased by 107.64% from the same period of last year, mainly attributable
to the selling expense of GEA recognized for the period;
(16) Financial expenses increased by 4473.2% from the same period of last year, mainly due to
more borrowings for the period;
(17) Asset impairment loss increased by 109.55% from the same period of last year, mainly due to
the assets impairment of GEA recognized for the period;
(18) Income from change in fair value increased by 380.26% from the same period of last year,
mainly due to the change in fair value of derivative financial instruments such as forward exchange for
the period;
(19) Investment income decreased by 59.02% from the same period of last year, which was mainly
due to the investment income arising from the reclassification of equity of Bank of Qingdao from
available-for-sale financial assets into long-term equity investments recognized for the corresponding
period of last year while there is no such investment income for the period;
(20) Non-operating expenses increased by 152.32% from the same period of last year, which was
mainly because of the non-operating expenses of GEA consolidated in this quarter;
(21) Net cash flows from operating activities increased by 455.26% from the same period of last
year, mainly benefiting from the more payment collection and improvement of profitability;
(22) Net cash flows from investing activities decreased by 151.59% from the same period of last
year, mainly due to the expenses for construction of fixed assets of GEA consolidated in this quarter;
(23) Net cash flows from financing activities decreased by 1207.5% from the same period of last
year, mainly because of repayment of certain debts for the period.
3.2 Progress of significant events and their influence and solutions
√ Applicable □Not Applicable
(1) On 16 January 2016, the Company announced Plan of Qingdao Haier Co., Ltd. on the
Acquisition of Material Assets and its intention to acquire the household appliances business of General
Electric and relevant assets in cash for a consideration of US$5.4 billion. By the end of the reporting
period, this undertaking had been completed. For more details, please refer to Plan of Qingdao Haier
Co., Ltd. on the Acquisition of Major Assets disclosed on 16 January 2016, the Report (Draft) on the
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Acquisition of Major Assets of Qingdao Haier Co., Ltd. disclosed on 15 March 2016 and Report on the
Execution of Acquisition of Major Assets of Qingdao Haier Co., Ltd. disclosed on 12 January 2017.
(2) By the end of the reporting period, all external guarantees of the Company and its subsidiaries
were the guarantees between the Company and its subsidiaries. The period-end balance of external
guarantee was RMB23,324 million, accounting for 82.4% of the net assets and 17.3% of the total assets
of the Company for the latest audited period.
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3.3 Overdue commitments in this Reporting Period or ongoing at the period-end
□Applicable √Not applicable
During the reporting period, the Company has no commitments that have past due but not performed.
The commitments made by the Company’s actual controller, shareholders, related parties and acquirer, as well as the Company and other commitment makers
during or up to the reporting period are as follows:
Whether Whether
it it is
has a performed
Time and
Background Type Covenanter Content deadline in a
term
for timely
performa and strict
nce way
During the period from September 2006 to May 2007, the Company issued shares to Haier
Group Corporation (“Haier Group”) to purchase the controlling equity in its four subsidiaries,
Eliminate namely Qingdao Haier Air-Conditioner Electronics Co., Ltd. (青岛海尔空调电子有限公司),
Commitments the right Hefei Haier Air-conditioning Co., Limited (合肥海尔空调器有限公司）, Wuhan Haier27
related to defects in Haier GroupElectronics Co., Ltd. (武汉海尔电器股份有限公司), Guizhou Haier Electronics Co., Ltd. (贵September
YES YES
material asset land Corporation 州海尔电器有限公司). With regard to the land and property required in the operation of2006, long
reorganization property Qingdao Haier Air-Conditioner Electronics Co., Ltd. (青岛海尔空调电子有限公司) , Hefeiterm
and etc. Haier Air-conditioning Co., Limited (合肥海尔空调器有限公司), Wuhan Haier Electronics
Co., Ltd. ( 武 汉 海 尔 电 器 股 份 有 限 公 司 ) (the “Covenantees”), Haier Group made an
undertaking (the “2006 Undertaking”). According to the content of 2006 Undertaking and
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current condition of each Covenantee, Haier Group will constantly assure that Covenantees will
lease the land and property owned by Haier Group for free. Haier Group will make
compensation in the event that the Covenantees suffer loss due to the unavailability of such
land and property.
Haier Group Corporation undertakes that it will assure Qingdao Haier and its subsidiaries of the
constant, stable and unobstructed use of the leased property. In the event that Qingdao Haier or
any of its subsidiaries suffers any economic loss due to the fact that leased property has no
relevant ownership certificate, Haier Group Corporation will make compensation in a timely
and sufficient way and take all reasonable and practicable measures to support the impaired
party to recover to normal operation before the occurrence of loss. Upon the expiration of
relevant leasing period, Haier Group Corporation will grant or take practicable measures to
assure Qingdao Haier and its subsidiaries of priority to continue to lease the property at a price
Eliminate
not higher than the rent in comparable market at that time. Haier Group Corporation will assure
the right 24
Qingdao Haier and its subsidiaries of the constant, stable, free and unobstructed use of self-built
defects in Haier Group December
Commitment property and land of the Group. In the event that Qingdao Haier or any of its subsidiaries fails YES YES
land Corporation 2013, long
related to to continue to use self-built property according to its own will or in original way due to the fact
property term
refinancing that self-built property has no relevant ownership certificate, Haier Group Corporation will take
and etc.
all reasonable and practicable measures to eliminate obstruction and impact, or will support
Qingdao Haier or its affected subsidiary to obtain alternative property as soon as possible, if
Haier Group Corporation anticipates it is unable to cope with or eliminate the external
obstruction and impact with its reasonable effort. For details, please refer to the Announcement
of Qingdao Haier Co., Ltd. on the Formation, Current Situation of the Defective Property, the
Influence on Operation of Issuer Caused by Uncertainty of Ownership, Solution for the Defect
and Guarantee Measures (L 2014-005) published by the Company on the four major securities
newspapers and the website of Shanghai Stock Exchange on 29 March 2014.
Eliminate Qingdao The Company undertakes that it will eliminate the property defects of the Company and main 24
YES YES
the right Haier Co.,subsidiaries within five years with reasonable business effort since 24 December 2013, so as toDecember
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
defects in Ltd. achieve the legality and compliance of the Company and main subsidiaries in terms of land and 2013, five
land property. For details, please refer to the Announcement of Qingdao Haier Co., Ltd. on theyears
property Formation, Current Situation of the Defective Property, the Influence on Operation of Issuer
and etc. Caused by Uncertainty of Ownership, Solution for the Defect and Guarantee Measures (L
2014-005) published by the Company on the four major securities newspapers and the website
of Shanghai Stock Exchange on 29 March 2014.
Commitment
With regard to its Share Option Incentive Scheme, the Company has undertaken not to provide
related to the Qingdao 11 April
loan or any other kind of financial support to incentive object in exercising option under the
Share Option Other Haier Co., 2014, long YES YES
Share Option Incentive Scheme or purchase of restricted shares, including providing guarantee
Incentive Ltd. term
for its loan.
Scheme
Inject the assets of Fisher&Paykel to the Company or dispose such assets through other ways
according to the requirements of the domestic supervision before June 2020. For more details, May
Asset Haier Group
please refer to the Announcement of Qingdao Haier Co., Ltd. on the Changes of Funding 2015-June YES YES
injection Corporation
Commitment (L 2015-015) published on the four major securities newspapers and the website 2020
of Shanghai Stock Exchange on 26 May 2015.
Other Inject the assets of Haier Photoelectric to the Company or dispose such assets through other
commitments ways according to the requirements of the domestic supervision before June 2020. For more December
Asset Haier Group
made to the details, please refer to the Announcement of Qingdao Haier Co., Ltd. on the Changes of2015-June YES YES
injection Corporation
medium and Funding Commitment of Haier Group Corporation (L 2015-063) published on the four major 2020
minority securities newspapers and the website of Shanghai Stock Exchange on 23 December 2015.
shareholders Profit In December 2015 and January 2016, the meeting of the Board of Directors and general
forecast meeting of the shareholders considered and approved the matters in relation to the acquisitionDecember
and Haier Groupof minority equity interest of Mitsubishi Heavy Industries Haier and Carrier Refrigeration 2015-
YES YES
compens Corporation Equipment held by Haier Group. The Company signed the Profit Compensation AgreementDecember
ation with Haier Group to forecast the profits achieved by the aforementioned two companies in 20152018
- 2018. If the profits are not reached during the commitment period, the difference part will be
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
made up to the Company by Haier Group in cash. For more details, please refer to the
Announcement of Qingdao Haier Co., Ltd. on the Acquisition of Equity in Sino-foreign Joint
Venture Held by Haier Group Corporation and Related-party Transaction (L 2015-062)
published on the four major securities newspapers and the website of Shanghai Stock Exchange
on 23 December 2015
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
3.4 Warning of a forecast deficit or considerable YoY change in the accumulative net profit made
during the period from the beginning of the year to the end of the next reporting period, as well as
explanation
□Applicable √Not applicable
Name of company Qingdao Haier Co., Ltd.
Legal representatives Liang Haishan
Date 28 April 2017
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
IV. Appendix
4.1 Financial Statements
Consolidated Balance Sheet
31 March 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Closing balance Opening balance
Current Assets:
Monetary Fund 27,190,619,848.09 23,504,634,124.25
Settlement reserve
Interbank lending
Financial assets measured at fair
value and changes of which included in 41,357,879.29 80,432,384.17
current profit / loss
Derivative financial assets
Notes receivables 12,267,528,452.96 13,796,561,238.05
Accounts receivables 12,585,798,308.54 12,247,244,097.66
Prepayments 622,157,267.36 578,543,441.40
Premiums receivable
Reinsurance accounts receivables
Reinsurance contract reserves
receivable
Interests receivables 180,033,304.26 135,319,774.41
Dividends receivables 54,524,472.84 101,648,913.10
Other receivables 1,188,809,553.39 1,180,418,052.75
Financial assets purchased under
agreements to resell
Inventories 16,752,018,232.68 15,237,942,420.85
Assets held for sale
Non-current assets due within one
year
Other current assets 2,360,562,873.89 2,653,444,588.12
Total current assets 73,243,410,193.30 69,516,189,034.76
Non-current assets:
Loans and advances granted
Available-for-sale financial assets 1,542,175,751.71 1,555,878,717.05
Held-to-maturity investments
Long-term receivables
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Long-term equity investments 11,311,407,254.98 11,057,819,628.14
Investment properties 33,612,770.15 34,600,393.37
Fixed assets 15,444,521,001.27 15,539,046,885.38
Construction in progress 1,639,620,455.24 1,769,875,050.35
Construction materials
Disposals of fixed assets 57,456,307.99 55,808,808.81
Biological assets for production
Oil-gas assets
Intangible assets 7,224,036,290.37 7,242,420,479.44
R&D expenses 942,104,360.35 913,283,796.32
Goodwill 20,895,052,408.70 21,004,123,145.39
Long-term deferred expenditures 96,413,743.12 115,773,592.78
Deferred income tax assets 1,514,985,006.19 1,592,009,404.59
Other non-current assets 1,033,501,480.64 858,461,388.86
Total non-current assets 61,734,886,830.71 61,739,101,290.48
Total assets 134,978,297,024.01 131,255,290,325.24
Current liabilities:
Short-term borrowings 11,866,065,299.19 18,165,531,879.15
Borrowings from central bank
Absorbing deposit and deposit in
inter-bank market
Placements from banks
Financial liabilities measured at fair 10,006,378.78 2,340,213.20
value and changes of which included in
current profit /loss
Derivative financial liabilities
Notes payable 14,507,587,162.62 12,404,889,760.05
Accounts payables 24,456,340,903.98 20,594,203,310.08
Payments received in advance 3,523,156,637.94 5,734,732,855.06
Disposal of repurchased financial
assets
Fees and commissions payable
Payroll payable 2,305,254,476.87 2,404,380,458.59
Taxes payable 1,543,154,553.88 1,620,463,062.11
Interests payable 191,136,717.48 30,570,328.66
Dividends payable 148,692,177.47 148,690,489.01
Other payables 8,641,209,915.74 9,363,015,551.12
Reinsurance accounts payable
Deposits for insurance contracts
Customer deposits for trading in
securities
Amounts due to issuer for securities
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
underwriting
Liabilities held for sale
Non-current liabilities due within one
1,745,649,228.33 2,966,808,509.55
year
Other current liabilities 12,043,090.05 17,228,645.29
Total current liabilities 68,950,296,542.33 73,452,855,061.87
Non-current liabilities:
Long-term borrowings 20,883,596,136.07 15,530,801,311.80
Debentures payable
Including: preference shares
perpetual bonds
Long-term account payable 115,346,534.96 115,783,382.28
Long-term payroll payables 982,435,284.96 1,206,510,917.33
Special payable
Estimated liabilities 2,247,796,496.32 2,310,119,430.60
Deferred income 338,459,599.36 342,825,593.35
Deferred tax liabilities 111,855,522.16 133,243,146.68
Other non-current liabilities 398,556,674.76 582,785,069.86
Total non-current liabilities 25,078,046,248.59 20,222,068,851.90
Total liabilities 94,028,342,790.92 93,674,923,913.77
Owners’ equity
Share capital 6,097,630,727.00 6,097,630,727.00
Other equity instruments
Including: preference shares
perpetual bonds
Capital reserve 285,518,907.58 83,383,194.51
Less: Treasury stock 1,041,960.00 1,041,960.00
Other comprehensive income 583,820,238.73 566,238,911.96
Special reserve
Surplus reserve 2,074,118,571.01 2,074,118,571.01
General risk provisions
Undistributed profits 19,283,159,538.16 17,544,395,965.35
Total equity attributable to
28,323,206,022.48 26,364,725,409.83
shareholders of the Company
Minority interests 12,626,748,210.61 11,215,641,001.64
Total owners’ equity 40,949,954,233.09 37,580,366,411.47
Total liabilities and owners’
134,978,297,024.01 131,255,290,325.24
equities
Legal representative: Chief Financial Officer: Person in charge of accounting
Liang Haishan Gong Wei department: Ying Ke
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Balance Sheet of the Company
31 March 2017
Prepared by Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Closing balance Opening balance
Current Assets:
Monetary fund 2,495,708,771.96 3,888,623,400.28
Financial assets measured at fair value
and changes of which included in current
profit /loss
Derivative financial assets
Notes receivables
Accounts receivables 283,998,524.07 265,438,220.39
Prepayments 10,000,000.00 10,000,000.00
Interests receivables 120,711,116.78 85,452,583.16
Dividends receivables 290,407,204.92 329,713,897.32
Other receivables 1,055,641,725.79 322,953,279.90
Inventories 60,077,912.08 69,799,065.47
Assets classified as held for sale
Non-current assets due within one year
Other current assets 335,217,450.19 94,935,174.83
Total current assets 4,651,762,705.79 5,066,915,621.35
Non-current assets:
Available-for-sale financial assets 5,940,781.92 5,478,235.84
Held-to-maturity investments
Long-term receivables 8,600,000,000.00 8,600,000,000.00
Long-term equity investments 22,378,222,596.15 22,342,078,877.07
Investment properties
Fixed assets 115,804,902.13 116,840,195.32
Construction in progress 22,073,687.06 22,611,979.50
Construction materials
Disposals of fixed assets
Biological assets for production
Oil-gas assets
Intangible assets 8,370,448.15 8,578,922.84
R&D expenses
Goodwill
Long-term deferred expenditures
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Deferred income tax assets 65,869,046.29 62,346,256.82
Other non-current assets
Total non-current assets 31,196,281,461.70 31,157,934,467.39
Total assets 35,848,044,167.49 36,224,850,088.74
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair value
and changes of which included in current
profit / loss
Derivative financial liabilities
Notes payable
Accounts payables 694,236,390.01 1,142,008,704.07
Payments received in advance 1,452,833,590.85 1,844,082,827.50
Payroll payables 13,190,218.64 39,919,748.55
Taxes payable 41,728,533.89 57,218,867.86
Interests payable 174,296,146.27 117,705,327.18
Dividends payable
Other payables 21,572,571,258.64 21,170,550,089.69
Liabilities classified as held for sale
Non-current liabilities due within one
year
Other current liabilities 4,841,867.91 4,841,867.91
Total current liabilities 23,953,698,006.21 24,376,327,432.76
Non-current liabilities:
Long-term borrowings
Debentures payable
Including: preference shares
perpetual bonds
Long-term payable 20,000,000.00 20,000,000.00
Long-term payroll payables
Special payables
Estimated liabilities
Deferred income 17,700,000.00 17,700,000.00
Deferred income tax liabilities 15,638,683.02 15,569,301.11
Other non-current liabilities
Total non-current liabilities 53,338,683.02 53,269,301.11
Total liabilities 24,007,036,689.23 24,429,596,733.87
Owners’ equity：
Share capital 6,097,630,727.00 6,097,630,727.00
Other equity instruments
Including: preference shares
Perpetual bonds
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Capital reserve 2,061,585,936.86 2,061,597,739.78
Less: Treasury stock 1,041,960.00 1,041,960.00
Other comprehensive income -22,362,757.47 -10,881,603.15
Special reserve
Surplus reserve 1,389,846,284.51 1,389,846,284.51
Undistributed profits 2,315,349,247.36 2,258,102,166.73
Total owners’ equity 11,841,007,478.26 11,795,253,354.87
Total liabilities and owners’
35,848,044,167.49 36,224,850,088.74
equities
Legal representative: Chief Financial Officer: Person in charge of accounting
Liang Haishan Gong Wei department: Ying Ke
Consolidated Income Statement
January-March 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
Ⅰ. Total operating revenue 37,741,143,448.27 22,236,608,015.25
Including: operating revenue 37,741,143,448.27 22,236,608,015.25
Interest income
Insurance premiums earned
Fee and commission income
Ⅱ. Total cost of operations 35,827,028,593.95 20,962,096,500.03
Including: operating cost 26,380,619,829.43 15,879,797,406.33
Interest expenses
Fee and commission expenses
Insurance withdrawal payment
Net payment from indemnity
Net provisions for insurance contract
Insurance policy dividend paid
Reinsurance cost
Business taxes and surcharge 178,393,139.98 79,633,377.77
Selling expenses 6,683,104,490.92 3,218,647,826.21
Administrative expenses 2,136,203,851.54 1,672,477,973.48
Financial expenses 225,293,551.11 4,926,386.49
Loss in assets impairment 223,413,730.97 106,613,529.75
Add: income from change in fair value (losses 158,467,287.04 -56,543,159.42
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
are represented by “-”)
Investment income (losses are represented
319,933,556.06 780,650,130.95
by “-”)
Including: investment income of
associates and joint ventures
Exchange gain (losses are represented by
“-”)
Ⅲ. Operating profit (losses are represented by
2,392,515,697.42 1,998,618,486.75
“-”)
Add: non-operating income 222,830,684.23 315,656,180.47
Including: gain from disposal of
non-current assets
Less: non-operating expenses 57,366,144.07 22,735,912.59
Including: Loss from disposal of non-current
assets
Ⅳ. Total profit (total losses are represented by
2,557,980,237.58 2,291,538,754.63
“-”)
Less: income tax expense 407,958,955.60 343,012,639.91
Ⅴ. Net profit (net losses are represented by “-”) 2,150,021,281.98 1,948,526,114.72
Net profit attributable to owners of the
1,738,763,572.81 1,596,815,139.24
Company
Profit or loss attributable to minority
411,257,709.17 351,710,975.48
shareholders
VI. Other comprehensive income, net of tax 545,303.84 -394,770,829.72
Other comprehensive income attributable to
17,581,326.76 -390,379,185.61
owners of the Company, net of tax
(I) Other comprehensive income that will
-7,751.33
not be reclassified subsequently to profit or loss
1. Changes in net liabilities or net assets
arising from re-measurement of defined benefit -7,751.33
plans
2. Share of other comprehensive income
of investees that cannot be reclassified to profit or
loss under equity method
(II) Other comprehensive income to be
17,589,078.09 -390,379,185.61
reclassified subsequently to profit or loss
1. Share of other comprehensive income
of investees that will be reclassified subsequently -40,488,326.71 -4,430,900.28
to profit or loss under equity method
2. Gain or loss from change in fair value
-499,456.91 -452,515,230.82
of available-for-sale financial assets
3. Gain or loss arising from
reclassification from held-to-maturity investments
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
to available-for-sale financial assets
4. Effective portion of gain or loss arising
-1,780,038.15
from cash flow hedging instruments
5. Exchange differences on translation of
financial statements denominated in foreign 60,356,899.86 66,566,945.49
currencies
6. Other
Other comprehensive income attributable to
-17,036,022.92 -4,391,644.11
minority shareholders, net of tax
Ⅶ. Total comprehensive income 2,150,566,585.82 1,553,755,285.00
Total comprehensive income attributable to the
1,756,344,899.57 1,206,435,953.63
shareholders of parent company
Total comprehensive income attributable to the
394,221,686.25 347,319,331.37
minority shareholders
Ⅷ . Earnings per share:
(I) Basic earnings per share (RMB/share) 0.285 0.262
(II) Diluted earnings per share (RMB/share) 0.285 0.262
Legal representative: Chief Financial Officer: Person in charge of accounting
Liang Haishan Gong Wei department: Ying Ke
Income Statement of the Company
January-March 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
Ⅰ. Operating revenue 813,013,367.46 735,483,002.31
Less: Operation cost 594,504,109.45 517,726,596.55
Business taxes and surcharge 6,561,826.29 4,010,967.66
Selling expenses 52,682,906.16 64,857,974.62
Administrative expenses 127,936,222.24 105,056,358.52
Financial expenses 18,751,061.43 820,776.97
Loss in assets impairment 486,242.29 14,821,479.22
Add: income from change in fair value (losses
are represented by “-”)
Investment income (losses are represented
42,029,840.49 26,649,067.23
by “-”)
Including: investment income of
associates and joint ventures
Ⅱ. Operating profit (losses are represented by 54,120,840.09 54,837,916.00
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
“-”)
Add: non-operating income 5,795,459.39 13,034,949.75
Including: gain from disposal of
non-current assets
Less: non-operating expenses 20,330.70
Including: Loss from disposal of
non-current assets
Ⅲ. Total Profit (losses are represented by “-”) 59,916,299.48 67,852,535.05
Less: income tax expense 2,669,218.85 6,180,520.17
Ⅳ. Net Profit (net losses are represented by “-”) 57,247,080.63 61,672,014.88
V. Other comprehensive income, net of tax -11,481,154.32 -754,161.08
(I) Other comprehensive income will not be
reclassified subsequently to profit or loss
1. Changes in net liabilities or net assets
arising from re-measurement of defined benefit
plans
2. Share of other comprehensive income of
investees that cannot be reclassified to profit or
loss under equity method
(II) Other comprehensive income to be
-11,481,154.32 -754,161.08
reclassified subsequently to profit or loss
1. Share of other comprehensive income of
investees that will be reclassified subsequently to -11,874,318.49
profit or loss under equity method
2. Gain or loss from change in fair value of
393,164.17 -754,161.08
available-for-sale financial assets
3. Gain or loss arising from reclassification
from held-to-maturity investments to
available-for-sale financial assets
4. Effective portion of gain or loss arising
from cash flow hedging instruments
5. Exchange differences on translation of
financial statements denominated in foreign
currencies
6. Other
VI. Total comprehensive income 45,765,926.31 60,917,853.80
VII. Earnings per share:
(I) Basic earnings per share (RMB/ share)
(II) Diluted earnings per share (RMB/share)
Legal representative: Chief Financial Officer: Person in charge of accounting
Liang Haishan Gong Wei department: Ying Ke
23 / 28
First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Consolidated Cash Flow Statement
January-March 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
Ⅰ. Cash flows from operating activities:
Cash received from the sale of goods and
42,011,240,928.44 23,378,413,688.69
rendering of services
Net increase in customer and interbank
deposits
Net increase in borrowing from PBOC
Net cash increase in borrowing from
other financial institutes
Cash received from premiums under
original insurance contract
Net cash received from reinsurance
business
Net increase in deposits of policy holders
and investment
Net increase from the disposal of
financial assets measured at fair value and
changes of which included in current profit
and loss
Cash paid for interest, bank charges and
commissions
Net increase in cash borrowed
Net increase in cash received from
repurchase operation
Refunds of taxes 304,077,593.23 161,738,589.90
Cash received from other related
368,100,490.83 256,922,174.46
operating activities
Sub-total of cash inflows from operating
42,683,419,012.50 23,797,074,453.05
activities
Cash paid on purchase of goods and
27,205,411,997.47 16,813,725,773.98
services
Net increase in loans and advances
Net increase in deposits in PBOC and
interbank
Cash paid for compensation payments
24 / 28
First Quarter 2017 Report of Qingdao Haier Co., Ltd.
under original insurance contract
Cash paid for interest, bank charges and
commissions
Cash paid for insurance policy dividend
Cash paid to and on behalf of employees 4,823,602,031.78 2,313,643,719.64
Cash paid for all types of taxes 1,619,780,649.63 965,061,769.57
Cash paid to other operation related
3,225,305,802.36 2,658,406,111.31
activities
Sub-total of cash outflows from operating
36,874,100,481.24 22,750,837,374.50
activities
Net cash flows from operating activities 5,809,318,531.26 1,046,237,078.55
Ⅱ. Cash flows from investing activities:
Cash received from disposal of
7,431,782.63 194,225,684.95
investments
Cash received from return on investments 64,142,955.22 25,035,717.24
Net cash received from the disposal of
fixed assets, intangible assets and other long 198,536.43 3,387,137.81
term assets
Net cash received from disposal of
subsidiaries and other operating entities
Cash received from other investment
11,123,166.05
related activities
Sub-total of cash inflows from investing
71,773,274.28 233,771,706.05
activities
Cash paid on purchase of fixed assets,
727,109,962.07 490,447,523.25
intangible assets and other long term assets
Cash paid for investments 349,845,557.45 142,669,740.00
Net increase in secured loans
Net cash paid on acquisition of
subsidiaries and other operating entities
Cash paid on other investment related
182,684.36
activities
Sub-total of cash outflows from investing
1,076,955,519.52 633,299,947.61
activities
Net cash flows from investing activities -1,005,182,245.24 -399,528,241.56
Ⅲ. Cash flows from financing activities:
Cash received from investment 22,247,648.00 7,705,289.78
Including: cash received by subsidiaries
from minority shareholders’ investment
Cash received from borrowings 10,375,831,949.73 1,805,507,042.76
Cash received from issuing bonds
Cash received from other financing
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
related activities
Sub-total of cash inflows from financing
10,398,079,597.73 1,813,212,332.54
activities
Cash paid on repayment of borrowings 11,291,851,345.83 1,586,982,780.31
Cash paid on distribution of dividends,
74,495,510.24 8,300,133.40
profits, or interest expenses
Including: dividend, profit paid to
minority shareholders by subsidiaries
Cash paid on other financing activities 16,702,520.08 128,992,855.80
Sub-total of cash outflows from financing
11,383,049,376.15 1,724,275,769.51
activities
Net cash flows from financing activities -984,969,778.42 88,936,563.03
Ⅳ. Effect of fluctuations in exchange
29,626,248.31 10,988,540.84
rates on cash and cash equivalents
Ⅴ. Net increase in cash and cash
3,848,792,755.91 746,633,940.86
equivalents
Add: balance of cash and cash
23,217,552,160.91 24,724,585,700.76
equivalents at the beginning of the period
Ⅵ. Balance of cash and cash equivalents
27,066,344,916.82 25,471,219,641.62
at the end of the period
Legal representative: Chief Financial Officer: Person in charge of accounting
Liang Haishan Gong Wei department: Ying Ke
Cash Flow Statement of the Parent Company
January-March 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
Ⅰ. Cash flows from operating activities:
Cash received from the sale of goods
34,265,286.31 421,741,874.95
and rendering of services
Refunds of taxes 11,312,294.31
Cash received from other related
3,562,034.19 3,551,150.50
operating activities
Sub-total of cash inflows from
37,827,320.50 436,605,319.76
operating activities
Cash paid on purchase of goods and 605,901,367.09 160,840,933.13
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
services
Cash paid to and on behalf of
371,066,552.46 90,430,090.95
employees
Cash paid for all types of taxes 47,645,546.40 19,438,947.53
Cash paid to other operation related
98,883,185.35 134,395,557.42
activities
Sub-total of cash outflows from
1,123,496,651.30 405,105,529.03
operating activities
Net cash flows from operating activities -1,085,669,330.80 31,499,790.73
Ⅱ. Cash flows from investing activities:
Cash received from disposal of
investments
Cash received from return on
39,306,692.40
investments
Net cash received from the disposal of
fixed assets, intangible assets and other
long term assets
Net cash received from disposal of
subsidiaries and other operating entities
Cash received from other investment
related activities
Sub-total of cash inflows from investing
39,306,692.40
activities
Cash paid on purchase of fixed assets,
364,910.00 5,252,275.94
intangible assets and other long term assets
Cash paid for investments 168,659,237.50 39,002,700.00
Net cash paid on acquisition of
subsidiaries and other operating entities
Cash paid on other investment related
activities
Sub-total of cash outflows from investing
169,024,147.50 44,254,975.94
activities
Net cash flows from investing activities -129,717,455.10 -44,254,975.94
Ⅲ. Cash flows from financing activities:
Cash received from investment
Cash received from borrowings
Cash received from other financing
related activities
Sub-total of cash inflows from financing
activities
Cash paid on repayment of borrowings
Cash paid on distribution of dividends,
profits, or interest expenses
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First Quarter 2017 Report of Qingdao Haier Co., Ltd.
Cash paid on other financing activities 177,527,578.53 112,647,024.84
Sub-total of cash outflows from
177,527,578.53 112,647,024.84
financing activities
Net cash flows from financing activities -177,527,578.53 -112,647,024.84
Ⅳ. Effect of fluctuations in exchange
-263.89
rates on cash and cash equivalents
Ⅴ. Net increase in cash and cash
-1,392,914,628.32 -125,402,210.05
equivalents
Add: balance of cash and cash
3,888,623,400.28 562,827,007.96
equivalents at the beginning of the period
Ⅵ. Balance of cash and cash equivalents
2,495,708,771.96 437,424,797.91
at the end of the period
Legal representative: Chief Financial Officer: Person in charge of accounting
Liang Haishan Gong Wei department: Ying Ke
4.2 Audit Report
□Applicable√ Not Applicable
Note: This Report and its abstract have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
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