# Prepayments, deposits and other receivables

Prepayments, deposits and other receivables consist primarily of deposits paid to suppliers, value-added tax receivables, loans receivables and prepayments. Prepayments, deposits and other receivables amounted to US\$80 million, US\$75 million and US\$365 million as of December 31, 2011, 2012 and 2013, respectively. Prepayments, deposits and other receivables remained relatively stable as of December 31, 2011 and 2012. Prepayments, deposits and other receivables increased as of December 31, 2013 primarily as a result of the completion of our acquisition of Smithfield and consisted largely of loans receivables, deposits paid to suppliers and value-added tax receivables.

# Trade and bills payables

Trade and bills payables consist primarily of payables to suppliers. Trade and bills payables amounted to US\$300 million, US\$225 million and US\$851 million as of December 31, 2011, 2012 and 2013, respectively. Trade and bills payables decreased from US\$300 million as of December 31, 2011 to US\$225 million as of December 31, 2012 primarily due to our efforts in optimizing our supply chain management in 2012. These measures included reducing bulk orders to our suppliers, which increased the frequency of orders but shortened the settlement period of each order. Trade and bills payables increased from US\$225 million as of December 31, 2012 to US\$851 million as of December 31, 2013 primarily as a result of the completion of our acquisition of Smithfield.

The following table sets forth our average trade and bills payables, cost of sales and trade and bills payables turnover days as of the dates indicated.

<table><tr><td rowspan="3"></td><td colspan="3">As of December 31,</td></tr><tr><td>2011</td><td>2012</td><td>2013</td></tr><tr><td colspan="3">(US$ million)</td></tr><tr><td>(1)A verage trade and bills payables ..........</td><td>275.0</td><td>262.5</td><td>538.0</td></tr><tr><td>Cost of sales ...........................</td><td>4,865</td><td>5,244</td><td>9,457</td></tr><tr><td>(2)Trade and bill s payables days ............</td><td>20.6</td><td>18.3</td><td>20.8</td></tr></table>

Notes:

(1) Average of beginning and ending balances of total trade and bills payables in the period indicated.

(2) Calculated as the average balances of total trade and bills payables, divided by the total cost of sales in the year (before biological assets fair value adjustments), multiplied by 365.

Trade and bills payables days decreased from 20.6 days in 2011 to 18.3 days in 2012 due primarily to our successful implementation of the aforementioned policies in optimizing our supply chain management in 2012. Trade and bills payable days increased from 18.3 days in 2012 to 20.8 days in 2013 primarily as a result of the impact from our acquisition of Smithfield. Trade and bills payable days in our operations in China was 13.8 days as of December 31, 2013.

The following table sets forth an aging analysis of our trade and bills payables for the periods indicated.

<table><tr><td rowspan="4"></td><td colspan="3">As of December 31,</td></tr><tr><td>2011</td><td>2012</td><td>2013</td></tr><tr><td colspan="3">(US$ million)</td></tr><tr><td>(audited)</td><td> (audited)</td><td> (audited)</td></tr><tr><td>0 to 30 days. . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>274</td><td>188</td><td>756</td></tr><tr><td>31 to 90 days. . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td> —</td><td>28</td><td>87</td></tr><tr><td>91 to 180 days..........................</td><td> —</td><td>9</td><td>8</td></tr><tr><td>181 days to 1 year . . . . . . . . . . . . . . . . . . . . . . .</td><td>26</td><td> —</td><td> —</td></tr><tr><td>Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</td><td>300</td><td>225</td><td>851</td></tr></table>

The credit period on our purchases of goods in our China operations is approximately 30 days. In our U.S. and international operations, credit terms vary based on goods and vendor and payables are typically paid in approximately 15 days.

# Accrued expenses and other payables

Accrued expenses and other payables consist primarily of accrued staff costs such as salaries, deposits received from customers, payables in respect of acquisition of property, plant and equipment, insurance payables, sales rebates payables, dividends payable and interest payables.