Abstract of the 2013 Annual Report of Wuxi Little Swan Company Limited Stock code: 000418, 200418 Stock abbreviation: XTEA, XTEB Announcement No.: 2014-03 Wuxi Little Swan Company Limited
Abstract of the 2013 Annual Report
1. Important reminders
This abstract is based on the full text of the annual report. For more details, investors are suggested to read the full text disclosed at the same time with this abstract on the website of Shenzhen Stock Exchange or any other website designated by CSRC.
Company profile:
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|Stock abbreviation|XTEA, XTEB|Stock code||000418, 200418|
|Stock exchange listed with|Shenzhen Stock Exchange||||
|For contact|Company Secretary||Securities Affairs Representative||
|Name|Ms. Zhou Sixiu||Ms. Tian Lin||
|Tel.|0510-81082320||0510-81082377||
|Fax|0510-83720879||0510-83720879||
|E-mail|IR_littleswan@littleswan.com.cn||IR_littleswan@littleswan.com.cn||

2. Financial highlights and change of shareholders
（1）Financial highlights
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
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||||Increase or decrease||
||2013|2012|of this year over last|2011|
||||year (%)||
|Operating revenue (RMB Yuan)|8,727,956,044.37|6,899,863,926.81|26.49%|10,975,621,704.52|
|Net profit attributable to shareholders|413,350,079.54|338,387,680.99|22.15%|453,327,963.81|
|of the Company (RMB Yuan)|||||
|Net profit attributable to shareholders|310,261,096.43|341,978,755.36|-9.27%|364,358,220.01|
|of the Company after extraordinary|||||
|gains and losses (RMB Yuan)|||||
|Net cash flows from operating|904,882,101.01|344,757,698.15|162.47%|242,531,309.07|
|activities (RMB Yuan)|||||
|Basic EPS (RMB Yuan/share)|0.65|0.54|20.37%|0.72|
|Diluted EPS (RMB Yuan/share)|0.65|0.54|20.37%|0.72|

Abstract of the 2013 Annual Report of Wuxi Little Swan Company Limited
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|Weighted average ROE (%)|10.88%|9.59%|1.29%|13.99%|
||||Increase or decrease||
||As at 31 Dec. 2013|As at 31 Dec. 2012|of this year-end than|As at 31 Dec. 2011|
||||last year-end (%)||
|Total assets (RMB Yuan)|9,222,527,380.74|8,403,705,443.29|9.74%|9,145,185,476.94|
|Net assets attributable to shareholders|3,908,897,654.74|3,686,210,495.87|6.04%|3,441,144,937.45|
|of the Company (RMB Yuan)|||||

（2） Shareholdings of the top 10 shareholders
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|||||Total number of shareholders at||||
|Total number of shareholders at||||the end of the fifth trading day||||
|||28,907||||23,744||
|the end of the reporting period||||before the disclosure date of the||||
|||||annual report||||
|Shareholdings of the top 10 shareholders||||||||
||||Shareholding||Number of|Pledged or frozen shares||
||Nature of|||Total shares held||||
|Name of shareholder|||percentage||restricted|Status of|Number of|
||shareholder|||at the period-end||||
||||(%)||shares held|shares|shares|
|MIDEA GROUP CO., LTD.|Domesticnon-state-ownedcorporation||35.2%|222,661,571|0|||
|GAOLING FUND,L.P.|Overseascorporation||8.56%|54,151,586|0|||
|TITONI INVESTMENTSDEVELOPMENT LTD.|Overseascorporation||4.88%|30,851,714|0|||
|FINANCE BUREAU OFWUXI|On behalf of thestate||3.49%|22,057,657|0|||
|BOCI SECURITIESLIMITED|Overseascorporation||3.35%|21,209,809|0|||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Overseascorporation||2.27%|14,348,071|0|||
|NATIONAL SOCIALSECURITY FUNDPORTFOLIO 102|Domesticnon-state-ownedcorporation||1.9%|12,000,000|0|||
|CHINA CONSTRUCTIONBANK－BOSHI THEMEINDUSTRIAL STOCKSECURITIES INVESTMENTFUND|Domesticnon-state-ownedcorporation||1.42%|8,999,108|0|||

Abstract of the 2013 Annual Report of Wuxi Little Swan Company Limited
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|ICBC－CHINAUNIVERSALEQUILIBRIUM GROWTHSTOCK SECURITIESINVESTMENT FUND|Domesticnon-state-ownedcorporation|1.26%|8,000,791|0|
|NATIONAL SOCIALSECURITY FUNDPORTFOLIO 108|Domesticnon-state-ownedcorporation|1.14%|7,180,101|0|
|Explanation on associated relationship or persons||MIDEA GROUP CO., LTD. became the new controlling shareholder of the|||
|acting in concert among the above-mentioned||Company after GD MIDEA HOLDING CO., LTD. It and TITONI|||
|shareholders||INVESTMENTS DEVELOPMENT LTD. are parties acting in concert.|||
|Shareholders taking part in margin financing and|||||
|||Inapplicable|||
|securities lending (if any)|||||

（3）Relation between the Company and its actual controller in the form of diagram
He Xiangjian Lu Deyan
5.45%
94.55%
Midea Holding Co., Ltd.
35.49%
Midea Group Co., Ltd.
100%
Midea Electric Investment (BVI) Limited
100% 35.20%
Titoni Investments Development Ltd.
4.88%
Wuxi Little Swan Co., Ltd.
Abstract of the 2013 Annual Report of Wuxi Little Swan Company Limited 3. Discussion and analysis by the management
2013 marked a year of adjustment and change for the household appliance industry of China. Household appliance makers were affected to varying degrees by factors such as industrial structure upgrading, sale forms innovation, withdrawal of stimulus policies, implementation of new energy efficiency standards and uncertainties in the real estate market. 2013 saw recovery of the washing machine industry as a whole, but with differentiation between the domestic and foreign markets. In the domestic market, consumption of washing machines was upgrading noticeably, with the proportion of middle and high-end products on the rise; boosted by factors such as product structure optimization, rapid development of e-commerce and low prices of raw materials, the domestic market of washing machines showed a trend of growth. As for the foreign market, affected by economic and political factors, as well as change in the competition structure, export of washing machines of China was weak, showing a declining trend in general.
In the reporting period, closely adhering to the strategic axis of “leading products, efficiency-driven and global operation”, the Company focused on changes in the industry, improved products, and kept pushing forward and deepening operation transformation to ensure maximum earnings under the optimum business scale. In 2013, theCompany’s efforts in transformation produced initial results, with recovery YoY growth of53.03% in domestic sales. Overseas sales dropped by17.70% on the year-on-year basis due to the overall decline of export and theCompany’s move to adjust its product structure, but with increased profitability. For 2013, the Company achieved sales revenue of RMB 8.728 billion and net profit attributable to the Company (without subsidiaries) of RMB 413 million.
In 2014, after withdrawal of the Consumption Stimulus Policies, the household appliance industry will return to market-oriented operation. Product upgrading, technological innovation and efficiency increase will become the main development means of the sustainable development in the washing machine industry. The execution of the new energy efficiency standards will boost the further acceleration of the optimization and integration of the whole industry. The intelligent home appliances as well as the application of the mobile internet will gain increasing attention. The development of the online sales and the urbanization progress will bring new market opportunities for the industry. Meanwhile, the regulation of the real estate market and the upheaval of the international political situation will also bring uncertainties to the whole industry.
In 2014, the Company will continue to center on the corebusiness—the washing machine business, make further transformation, center on the twocores—the enhancing of the product power as well as the enhancing of the operation efficiency, and regard the consumers as the center to continuously improve the competitiveness of the products. It will also strengthen its competitiveness in the markets at home and abroad. Meanwhile, it will intensify the execution of the performance-oriented mechanism and improve the organizational operation efficiency. It will focus on the following: 1. regard the consumers as the center and make good products; 2. strengthen the rigid quality, and create the touching quality; 3. insist on the double brands operation and guarantee the balanced improvement of scale and profits; and 4. enlarge the investment of the e-commerce channels and to proactively embrace the opportunities and the challenges.
4. Matters related to financial reporting
(1) Explain change of the accounting policy, accounting estimate and measurement methods as compared with the financial reporting of last year
The accounting policy, accounting estimate and measurement methods remained the same as compared with the financial reporting of last year.
(2) Explain retrospective restatement due to correction of significant accounting errors in the reporting period
N/A
Abstract of the 2013 Annual Report of Wuxi Little Swan Company Limited (3) Explain change of the consolidation scope as compared with the financial reporting of last year
One entity was deconsolidated for the current year as compared with last year. Subsidiary Wuxi Little Swan Drive& Control Technology Development Co., Ltd. dissolved and canceled its registration. It has thus been excluded from the consolidated financial statement scope since 17 Dec. 2013.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard audit report” issued by the CPAs firm for the reporting period
Inapplicable
Wuxi Little Swan Company Limited Legal representative: Mr. Fang Hongbo 7 March 2014