Wuxi Little Swan Company Limited Third Quarter Report 2017 WUXI LITTLE SWAN COMPANY LIMITED THIRD QUARTER REPORT 2017
October 2017
Wuxi Little Swan Company Limited Third Quarter Report 2017 Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as well as the directors, supervisors and senior management of Wuxi Little Swan Company Limited (the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any false representation, misleading statements or material omissions in this Report.
All the directors of the Company attended the board meeting for the review of this Report. Fang Hongbo, chairman of the board, Sun Yunan, CFO, and Xu Yunwei, head of the accounting department (head of accounting) of the Company, hereby guarantee that the financial statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Wuxi Little Swan Company Limited Third Quarter Report 2017 Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||September 30, 2017||December 31, 2016||Change||
|Total assets (RMB)|18,586,002,157.24||18,885,986,837.64||-1.59%||
|Equity attributable to owners of the parent|6,672,700,988.22||5,983,847,862.72||||
||||||11.51%||
|(RMB)|||||||
||July-September 2017|YoY change||January-September 2017||YoY change|
|Net sales (RMB)|5,409,053,680.82|32.87%||15,977,114,535.05||32.53%|
|Net margin attributable to shareholders of|411,479,306.87|||1,143,019,809.34|||
|||23.83%||||25.18%|
|the Company (RMB)|||||||
|Net margin attributable to shareholders of|||||||
|the Company before exceptional gains|399,291,895.16|22.38%||1,114,089,109.91||24.66%|
|and losses (RMB)|||||||
|Net cash from operating activities (RMB)|--|--||689,222,217.42||-64.24%|
|Basic earnings per share (RMB/share)|0.65|22.64%||1.81||25.69%|
|Diluted earnings per share (RMB/share)|0.65|22.64%||1.81||25.69%|
|Weighted average return on equity (%)|6.39%|0.40%||17.94%||1.13%|

 Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|Note|
|Gains/Losses on disposal of non-current assets (inclusive of offset asset impairment|||
||2,323,694.16||
|provisions)|||
|Governmental subsidy recorded into current gains/losses (exclusive of governmental|||
|subsidy closely relevant to business events, and quantified according to national unified|12,591,448.99||
|standards)|||
|Gains/Losses on debt restructuring|2,572,954.74||
|Gains/Losses on fair value changes of trading financial assets and liabilities &|||
|investment income from disposal of trading financial assets and liabilities as well as|||
||14,175,311.33||
|financial assets available for sale (exclusive of effective hedges related to normal|||
|business operations of the Company)|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Non-operating income and expense other than above|3,353,217.21||
|Less: Income tax effects|4,681,159.25||
|Minority interests effects (after tax)|1,404,767.75||
|Total|28,930,699.43|--|

 Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent gain/loss:
□ Applicable√ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End 1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and Shareholdings of Top 10 Shareholders
Unit: share
||||||||
|-|-|-|-|-|-|-|
|Total number of common shareholders||Total number of preference shareholders with resumed|||||
||16,635|||||0|
|at period-end||voting rights at period-end (if any)|||||
|Top 10 shareholders|||||||
||||Total shares|Restricted|Pledged or frozen||
|||Shareholding|||||
|Name of shareholder|Nature of shareholder||held at|shares held at|shares||
|||percentage|||||
||||period-end|period-end|Status|Number|
|MIDEA GROUP CO., LTD.|Domesticnon-state-ownedcorporation|37.78%|238,948,117||||
|TITONI INVESTMENTSDEVELOPMENT LTD.|Foreign corporation|14.89%|94,204,942||||
|GAOLING FUND,L.P.|Foreign corporation|3.74%|23,664,125||||
|NATIONAL SOCIAL SECURITYFUND PORTFOLIO 108|Domesticnon-state-ownedcorporation|3.34%|21,097,464||||
|GREENWOODS CHINA ALPHAMASTER FUND|Foreign corporation|2.81%|17,787,068||||
|FINANCE BUREAU OF WUXI|State-ownedcorporation|2.70%|17,054,071||||
|NATIONAL SOCIAL SECURITYFUND PORTFOLIO 101|Domesticnon-state-ownedcorporation|2.17%|13,709,256||||

Wuxi Little Swan Company Limited Third Quarter Report 2017
|||||||
|-|-|-|-|-|-|
|CENTRAL HUIJIN ASSETMANAGEMENT CO., LTD|State-ownedcorporation|1.61%|10,156,300|||
|HONGKONG SECURITIESCLEANING CO., LTD|Foreign corporation|1.55%|9,818,148|||
|ICBC－HUITIANFU GROWINGFOCUS HYBRIDSECURITIESINVESTMENT FUND|Domesticnon-state-ownedcorporation|1.28%|8,091,762|||
|Top 10 non-restricted shareholders||||||
|||Non-restricted||Type of stock||
|Name of shareholder||shares held at||||
|||||Type|Number|
|||period-end||||
|MIDEA GROUP CO., LTD.||238,948,117||RMB common stock|238,948,117|
|TITONI INVESTMENTS DEVELOPMENT LTD.||94,204,942||Domestically listed stock||
||||||94,204,942|
|||||for foreign investors||
|GAOLING FUND,L.P.||23,664,125||Domestically listed stock||
||||||23,664,125|
|||||for foreign investors||
|NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108||21,097,464||RMB common stock|21,097,464|
|GREENWOODS CHINA ALPHA MASTER FUND||17,787,068||Domestically listed stock||
||||||17,787,068|
|||||for foreign investors||
|FINANCE BUREAU OF WUXI||17,054,071||RMB common stock|17,054,071|
|NATIONAL SOCIAL SECURITY FUND PORTFOLIO 101||13,709,256||RMB common stock|13,709,256|
|CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD||10,156,300||RMB common stock|10,156,300|
|HONGKONG SECURITIES CLEANING CO., LTD||9,818,148||RMB common stock|9,818,148|
|ICBC－HUITIANFU GROWING FOCUSHYBRIDSECURITIES INVESTMENT FUND||8,091,762||||
|||||RMB common stock|8,091,762|
|||MIDEA GROUP CO., LTD. and TITONI INVESTMENTS||||
|Related or acting-in-concert parties among shareholders above||||||
|||DEVELOPMENT LTD are parties acting in concert.||||
|Top 10 common shareholders conducting securities margin||||||
|||Not applicable||||
|trading (if any)||||||

Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea√ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable√ Not applicable
Wuxi Little Swan Company Limited Third Quarter Report 2017 Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes Unit:RMB’0,000
|||||||
|-|-|-|-|-|-|
||September|December 31,||Change||
|Item|||Change||Main reason for change|
||30, 2017|2016||(%)||
|Notes receivable|63,996.89|129,760.92|-65,764.03|-51%|Certain such notes became due|
|Prepayments|19,751.15|13,151.38|6,599.77|50%|Increased prepayments for raw materials|
|Interest receivable|4,269.24|2,675.58|1,593.66|60%|Increase in interest receivable on structured deposits|
|Other accountsreceivable|1,333.45|2,369.39|-1,035.94|-44%|Decrease in temporary payments made fornon-operating purposes|
|Long-term deferredexpense|1,040.98|438.77|602.21|137%|Higher mold-related expenditure|
|Other non-current assets|4,005.78|2,565.58|1,440.20|56%|Increased prepayments for equipment and molds|
|Advances received|108,164.49|301,434.78|-193,270.29|-64%|Due to sales cycles|
||January-Sept|January-Septe||Change||
|Item|||Change||Main reason for change|
||ember 2017|mber 2016||(%)||
|Net sales|1,597,711.45|1,205,563.59|392,147.86|33%|Increased unit sales|
|Cost of sales|1,188,708.48|882,946.80|305,761.68|35%|Increased sales|
|Taxes and surtaxes|9,844.66|6,236.07|3,608.59|58%|Increased turnover tax|
|Administrative expense|48,004.06|36,704.25|11,299.81|31%|Higher expenditure on employees’ compensation andR&D|
|Finance costs|-2,633.59|-9,401.67|6,768.08|-72%|Greater foreign exchange losses caused by RMBappreciation|
|Investment income|23,858.99|13,075.82|10,783.17|82%|Higher income from bank wealth management products|
|Net cash flows fromoperating activities|68,922.22|192,729.41|-123,807.19|-64%|Increases in cash paid for goods and services, as well asin cash paid to and for employees|
|Net cash flows frominvesting activities|-145,498.58|-238,299.15|92,800.57|39%|Increase in cash yielded by bank wealth managementproducts|
|Net cash flows fromfinancing activities|-53,385.95|-37,600.18|-15,785.77|-42%|Increase in dividends paid|

Wuxi Little Swan Company Limited Third Quarter Report 2017 II Progress, Influence and Solutions Associated with Significant Events
□ Applicable√ Not applicable
III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period the beginning of the current year through the end of the next reporting period, as well as the reasons:
□ Applicable√ Not applicable
V Securities Investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
Unit:RMB’0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Proportion||
|||||||||||||of closing|Actual|
|||||||||Purchas|Sold in|Impai||||
|||Relate||Initial|||Opening||||Closing|investmen|gain/los|
||Relationsh|||||||ed in the|the|rment||||
|||d|Type of|investme|Startin|Endin|investm||||investme|t amount|s in the|
|Operator|i p with the|||||||Reporti|Reporti|provis||||
|||transac|derivative|nt|g date|g date|ent||||nt|in the|Reporti|
||Company|||||||ng|ng|ion (if||||
|||tion||amount|||amount||||amount|Company’|ng|
|||||||||Period|Period|any)||||
|||||||||||||s closing|Period|
|||||||||||||net assets||
||||Forward|||||||||||
||Not||||04/24/|09/13/||||||||
|Bank||Not|forex|0|||0|133,580|97,776|0|35,804|5.37%|1,418|
||related||||2017|2018||||||||
||||contract|||||||||||
|Total||||0|--|--|0|133,580|97,776|0|35,804|5.37%|1,418|
|Capital source for derivative investment||||A ll from the Company’s own funds||||||||||
|Lawsuits involved (if applicable)||||N/A||||||||||
|Disclosure date of board announcement||||03/09/2017||||||||||

Wuxi Little Swan Company Limited Third Quarter Report 2017
|||
|-|-|
|approving derivative investment (if any)||
|Disclosure date of shareholders’||
|meeting announcement approving|04/11/2017|
|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|
||forex trading business. For instance, failure of capital required to arrive in time for|
||performance in forex trading could result in loss and default.|
||Control measures: Speculative trading is not allowed and a prudent and steady principle is|
||adopted. A hierarchical management mechanism has been implemented, whereby the|
||operating unit which has submitted applications for funds business should conduct a risk|
||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|
|Analysis of risks and control measures||
||expiry dates.|
|associated with derivative investments||
||2. About operational risk: Risks caused by imperfect internal processes, staff, systems and|
|held in the Reporting Period (including||
||external issues may cause the Company to incur losses during the course of its forex|
|but not limited to market risk, liquidity||
||trading business.|
|risk, credit risk, operational risk, legal||
||Control measures: The Company has not only developed relevant management systems|
|risk, etc.)||
||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|No significant changes|

Wuxi Little Swan Company Limited Third Quarter Report 2017
|||
|-|-|
|policies and specific accounting||
|principles adopted for derivative||
|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 Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. during Reporting Period
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|
||||Sheet of Investor Relations Activities on July 4, 2017|
|07/04/2017|By one-on-one meeting|Institution||
||||(No. 2017-03) on www.cninfo.com.cn|
|08/07/2017|||Sheet of Investor Relations Activities on August 7-10,|
||By one-on-one meeting|Institution||
|-08/10/2017|||2017 (No. 2017-04) on www.cninfo.com.cn|
||||Sheet of Investor Relations Activities on August 23,|
|08/23/2017|By one-on-one meeting|Institution||
||||2017 (No. 2017-05) on www.cninfo.com.cn|

VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Funds by Its Controlling Shareholder or Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
□ Applicable√ Not applicable
Wuxi Little Swan Company Limited Third Quarter Report 2017 Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|September 30, 2017|December 31, 2016|
|Current assets:|||
|Monetary funds|3,104,235,150.95|4,272,077,211.11|
|Settlement reserve|||
|Interbank lendings|||
|Financial assets at fair value through gains/losses|7,279,041.33||
|Derivative financial assets|||
|Notes receivable|639,968,894.57|1,297,609,202.29|
|Accounts receivable|1,600,541,720.56|1,465,654,497.90|
|Prepayments|197,511,513.27|131,513,792.18|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserve|||
|Interest receivable|42,692,360.90|26,755,807.07|
|Dividends receivable|||
|Other accounts receivable|13,334,545.48|23,693,886.54|
|Financial assets purchased under agreements to resell|||
|Inventories|1,414,074,811.50|1,724,837,944.69|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|9,880,082,620.77|8,385,724,282.16|
|Total current assets|16,899,720,659.33|17,327,866,623.94|
|Non-current assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|200,000.00|200,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
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|-|-|-|
|Long-term equity investments|||
|Investment property|61,965,822.25|64,854,903.25|
|Fixed assets|1,006,798,867.34|970,859,291.03|
|Construction in progress|14,733,569.06||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|188,354,882.02|192,283,486.15|
|R&D expense|||
|Goodwill|||
|Long-term deferred expense|10,409,765.85|4,387,728.14|
|Deferred income tax assets|363,760,831.94|299,879,029.23|
|Other non-current assets|40,057,759.45|25,655,775.90|
|Total non-current assets|1,686,281,497.91|1,558,120,213.70|
|Total assets|18,586,002,157.24|18,885,986,837.64|
|Current liabilities:|||
|Short-term borrowings|149,470,000.00|183,813,064.12|
|Borrowings from Central Bank|||
|Money deposits accepted and inter-bank deposits|||
|Interbank borrowings|||
|Financial liabilities at fair value through gains/losses|||
|Derivative financial liabilities|||
|Notes payable|2,629,320,974.93|2,620,549,815.47|
|Accounts payable|3,733,802,682.63|3,335,089,672.06|
|Advances received|1,081,644,947.93|3,014,347,762.24|
|Financial assets sold for repurchase|||
|Fees and commissions payable|||
|Payroll payable|257,433,831.48|288,592,163.29|
|Taxes payable|405,748,686.13|412,238,029.96|
|Interest payable|||
|Dividends payable|6,996,784.06|7,150,684.06|
|Other accounts payable|219,230,536.72|199,926,402.04|
|Reinsurance premiums payable|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
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|-|-|-|
|Insurance contract reserve|||
|Payables for acting trading of securities|||
|Payables for acting underwriting of securities|||
|Liabilities held for sale|||
|Non-current liabilities due within one year|||
|Other current liabilities|2,274,382,191.77|1,844,413,154.26|
|Total current liabilities|10,758,030,635.65|11,906,120,747.50|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term accounts payable|||
|Long-term payroll payable|13,104,735.62|16,101,348.60|
|Special payables|||
|Provisions|1,524,217.08|1,727,340.89|
|Deferred income|2,602,433.22|2,942,333.25|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|17,231,385.92|20,771,022.74|
|Total liabilities|10,775,262,021.57|11,926,891,770.24|
|Owners’ equity:|||
|Share capital|632,487,764.00|632,487,764.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|1,230,146,749.94|1,191,490,133.01|
|Less: Treasury shares|||
|Other comprehensive income|52,300,046.81|70,757,524.61|
|Special reserve|||
|Surplus reserve|332,594,722.29|332,594,722.29|
|Provisions for general risks|||
|Retained earnings|4,425,171,705.18|3,756,517,718.81|
|Equity attributable to owners of the parent|6,672,700,988.22|5,983,847,862.72|

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Minority interests|1,138,039,147.45|975,247,204.68|
|Total owners’ equity|7,810,740,135.67|6,959,095,067.40|
|Total liabilities and owners’ equity|18,586,002,157.24|18,885,986,837.64|

 2. Parent Company Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|September 30, 2017|December 31, 2016|
|Current assets:|||
|Monetary funds|1,471,360,289.53|2,397,428,457.92|
|Financial assets at fair value through gains/losses|6,482,343.61||
|Derivative financial assets|||
|Notes receivable|451,178,277.23|1,088,559,252.21|
|Accounts receivable|1,930,254,991.70|2,310,254,576.98|
|Prepayments|145,479,231.32|89,477,823.29|
|Interest receivable|33,480,770.36|18,798,031.69|
|Dividends receivable|||
|Other accounts receivable|19,024,712.35|16,176,106.89|
|Inventories|877,821,535.01|1,068,494,123.28|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|6,234,037,625.21|4,965,682,855.69|
|Total current assets|11,169,119,776.32|11,954,871,227.95|
|Non-current assets:|||
|Available-for-sale financial assets|150,000.00|150,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|1,375,785,041.57|1,375,785,041.57|
|Investment property|7,278,796.74|7,546,955.16|
|Fixed assets|508,168,069.13|490,047,802.72|
|Construction in progress|14,733,569.06||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Intangible assets|90,573,442.43|92,591,167.64|
|R&D expense|||
|Goodwill|||
|Long-term deferred expense|3,101,948.40|1,817,228.83|
|Deferred income tax assets|227,238,156.95|197,091,251.29|
|Other non-current assets|21,476,594.90|18,313,858.80|
|Total non-current assets|2,248,505,619.18|2,183,343,306.01|
|Total assets|13,417,625,395.50|14,138,214,533.96|
|Current liabilities:|||
|Short-term borrowings|108,000,000.00|123,943,093.80|
|Financial liabilities at fair value through gains/losses|||
|Derivative financial liabilities|||
|Notes payable|1,779,185,570.99|1,508,017,904.49|
|Accounts payable|3,658,904,954.11|3,913,090,507.89|
|Advances received|665,096,569.85|1,854,711,663.46|
|Payroll payable|191,781,499.15|216,530,836.37|
|Taxes payable|265,352,704.80|249,034,768.38|
|Interest payable|||
|Dividends payable|6,996,784.06|7,150,684.06|
|Other accounts payable|133,275,825.22|143,124,857.82|
|Liabilities held for sale|||
|Non-current liabilities due within one year|||
|Other current liabilities|1,390,609,601.77|1,173,641,937.69|
|Total current liabilities|8,199,203,509.95|9,189,246,253.96|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Special payables|||
|Provisions|||
|Deferred income|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|8,199,203,509.95|9,189,246,253.96|
|Owners’ equity:|||
|Share capital|632,487,764.00|632,487,764.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserve|1,385,109,598.55|1,350,656,531.65|
|Less: Treasury shares|||
|Other comprehensive income|41,133,481.56|37,515,343.84|
|Special reserve|||
|Surplus reserve|319,944,578.39|319,944,578.39|
|Retained earnings|2,839,746,463.05|2,608,364,062.12|
|Total owners’ equity|5,218,421,885.55|4,948,968,280.00|
|Total liabilities and owners’ equity|13,417,625,395.50|14,138,214,533.96|

 3. Consolidated Income Statement for July-September
Unit: RMB
||||
|-|-|-|
|Item|July-September 2017|July-September 2016|
|1. Operating revenue|5,409,053,680.82|4,070,848,719.32|
|Including: Net sales|5,409,053,680.82|4,070,848,719.32|
|Interest revenue|||
|Premium revenue|||
|Fee and commission revenue|||
|2. Operating expenses|4,915,302,618.03|3,669,637,983.51|
|Including: Cost of sales|4,025,713,025.98|3,016,876,202.80|
|Interest expense|||
|Fee and commission expense|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance contract reserve|||
|Expenditure on policy dividends|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Reinsurance premium expense|||
|Taxes and surtaxes|33,914,345.16|17,636,853.40|
|Selling expense|702,045,545.50|539,563,649.92|
|Administrative expense|151,877,449.91|101,096,489.36|
|Finance costs|-2,812,709.83|-30,617,265.06|
|Asset impairment losses|4,564,961.31|25,082,053.07|
|Add: Gains on fair value changes (“-” for losses)|2,361,168.20||
|Investment income (“-” for losses)|56,923,988.62|63,442,725.63|
|Including: Share of gains/losses of associates and joint ventures|||
|Exchange gains (“-” for losses)|||
|Other income|6,835,783.31||
|3. Operating margin (“-” for losses)|559,872,002.92|464,653,461.44|
|Add: Non-operating income|8,370,654.72|9,451,463.63|
|Including: Gains on disposal of non-current assets|42,043.69|20,217.78|
|Less: Non-operating expense|73,435.06|1,706,463.30|
|Including: Losses on disposal of non-current assets|42,435.06|371,314.11|
|4. Gross margin (“-” for losses)|568,169,222.58|472,398,461.77|
|Less: Income tax expense|87,620,162.08|72,828,206.62|
|5. Net margin (“-” for losses)|480,549,060.50|399,570,255.15|
|Attributable to owners of the parent|411,479,306.87|332,295,999.87|
|Attributable to minority interests|69,069,753.63|67,274,255.28|
|6. Other comprehensive income, net of tax|3,779,053.96|4,246,647.68|
|Other comprehensive income, net of tax attributable to owners|||
||8,467,880.09|1,964,616.39|
|of the parent|||
|6.1 Other comprehensive income that will not be reclassified|||
|into gains/losses|||
|6.1.1 Changes in net liabilities or assets with a defined|||
|benefit plan upon re-measurement|||
|6.1.2 Share of other comprehensive income of investees|||
|that cannot be reclassified into gains/losses under equity method|||
|6.2 Other comprehensive income to be subsequently|||
||8,467,880.09|1,964,616.39|
|reclassified into gains/losses|||
|6.2.1 Share of other comprehensive income of investees|||
|that will be reclassified into gains/losses under equity method|||
|6.2.2 Gains/Losses on fair value changes of|||
||8,472,611.20|1,962,537.08|
|available-for-sale financial assets|||
|6.2.3 Gains/Losses on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|6.2.4 Effective gains/losses on cash flow hedges|||
|6.2.5 Currency translation differences|-4,731.11|2,079.31|
|6.2.6 Other|||
|Other comprehensive income, net of tax attributable to minority|||
||-4,688,826.13|2,282,031.29|
|interests|||
|7. Total comprehensive income|484,328,114.46|403,816,902.83|
|Attributable to owners of the parent|419,947,186.96|334,260,616.26|
|Attributable to minority interests|64,380,927.50|69,556,286.57|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.65|0.53|
|8.2 Diluted earnings per share|0.65|0.53|

 4. Parent Company Income Statement for July-September
Unit: RMB
||||
|-|-|-|
|Item|July-September 2017|July-September 2016|
|1. Operating revenue|4,137,270,472.44|2,922,039,454.39|
|Less: Operating expenses|3,238,940,527.27|2,334,276,302.85|
|Taxes and surtaxes|21,653,606.79|12,900,966.92|
|Selling expense|492,184,783.36|335,708,432.38|
|Administrative expense|114,518,266.69|72,985,560.69|
|Finance costs|-343,883.61|-20,072,180.35|
|Asset impairment losses|3,457,037.13|16,504,313.87|
|Add: Gains on fair value changes (“-” for losses)|2,204,741.62||
|Investment income (“-” for loss)|16,012,684.13|30,279,080.67|
|Including: Share of gains/losses of associates and joint ventures|||
|Other income|||
|2. Operating margin (“-” for losses)|285,077,560.56|200,015,138.70|
|Add: Non-operating income|4,425,956.50|3,387,007.20|
|Including: Gains on disposal of non-current assets|223,909.00||
|Less: Non-operating expense||674,514.67|
|Including: Losses on disposal of non-current assets||347,731.17|
|3. Gross margin (“-” for losses)|289,503,517.06|202,727,631.23|
|Less: Income tax expense|45,420,985.67|31,992,675.86|
|4. Net margin (“-” for losses)|244,082,531.39|170,734,955.37|

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|5. Other comprehensive income, net of tax|18,981,275.77|-3,229,072.28|
|5.1 Other comprehensive income that will not be reclassified into|||
|gains and losses|||
|5.1.1 Changes in net liabilities or assets with a defined benefit|||
|plan upon re-measurement|||
|5.1.2 Share of other comprehensive income of investees that|||
|cannot be reclassified into gains/losses under equity method|||
|5.2 Other comprehensive income to be subsequently reclassified|||
||18,981,275.77|-3,229,072.28|
|into gains/losses|||
|5.2.1 Share of other comprehensive income of investees that will|||
|be reclassified into gains/losses under equity method|||
|5.2.2 Gains/Losses on fair value changes of available-for-sale|||
||18,981,275.77|-3,229,072.28|
|financial assets|||
|5.2.3 Gains/Losses on reclassifying held-to-maturity investments|||
|into available-for-sale financial assets|||
|5.2.4 Effective gains/losses on cash flow hedges|||
|5.2.5 Currency translation differences|||
|5.2.6 Other|||
|6. Total comprehensive income|263,063,807.16|167,505,883.09|
|7. Earnings per share|||
|7.1 Basic earnings per share|||
|7.2 Diluted earnings per share|||

5. Consolidated Income Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Operating revenue|15,977,114,535.05|12,055,635,914.24|
|Including: Net sales|15,977,114,535.05|12,055,635,914.24|
|Interest revenue|||
|Premium revenue|||
|Fee and commission revenue|||
|2. Operating expenses|14,717,291,930.91|10,948,766,070.41|
|Including: Cost of sales|11,887,084,837.76|8,829,467,976.48|
|Interest expense|||
|Fee and commission expense|||
|Surrenders|||
|Net claims paid|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Net amount provided as insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium expense|||
|Taxes and surtaxes|98,446,618.90|62,360,730.86|
|Selling expense|2,235,935,416.90|1,730,895,706.04|
|Administrative expense|480,040,555.32|367,042,544.04|
|Finance costs|-26,335,907.67|-94,016,729.52|
|Asset impairment losses|42,120,409.70|53,015,842.51|
|Add: Gains on fair value changes (“-” for losses)|7,279,041.33||
|Investment income (“-” for losses)|238,589,870.73|130,758,204.67|
|Including: Share of gains/losses of associates and joint ventures|||
|Exchange gains (“-” for losses)|||
|Other income|22,642,337.07||
|3. Operating margin (“-” for losses)|1,528,333,853.27|1,237,628,048.50|
|Add: Non-operating income|23,994,408.02|30,937,449.39|
|Including: Gains on disposal of non-current assets|4,620,758.39|137,055.45|
|Less: Non-operating expense|3,153,092.92|3,941,368.67|
|Including: Losses on disposal of non-current assets|2,297,064.23|609,898.08|
|4. Gross margin (“-” for losses)|1,549,175,168.37|1,264,624,129.22|
|Less: Income tax expense|235,865,857.86|200,130,598.37|
|5. Net margin (“-” for losses)|1,313,309,310.51|1,064,493,530.85|
|Attributable to owners of the parent|1,143,019,809.34|913,122,562.45|
|Attributable to minority interests|170,289,501.17|151,370,968.40|
|6. Other comprehensive income, net of tax|-28,637,223.77|40,511,423.04|
|Other comprehensive income, net of tax attributable to owners|||
||-18,953,155.82|34,901,506.32|
|of the parent|||
|6.1 Other comprehensive income that will not be reclassified|||
|into gains/losses|||
|6.1.1 Changes in net liabilities or assets with a defined|||
|benefit plan upon re-measurement|||
|6.1.2 Share of other comprehensive income of investees|||
|that cannot be reclassified into gains/losses under equity method|||
|6.2 Other comprehensive income to be subsequently|||
||-18,953,155.82|34,901,506.32|
|reclassified into gains/losses|||
|6.2.1 Share of other comprehensive income of investees|||
|that will be reclassified into gains/losses under equity method|||
|6.2.2 Gains/Losses on fair value changes of|-18,941,998.21|34,892,633.31|

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|available-for-sale financial assets|||
|6.2.3 Gains/Losses on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|6.2.4 Effective gains/losses on cash flow hedges|||
|6.2.5 Currency translation differences|-11,157.61|8,873.01|
|6.2.6 Other|||
|Other comprehensive income, net of tax attributable to minority|||
||-9,684,067.95|5,609,916.72|
|interests|||
|7. Total comprehensive income|1,284,672,086.74|1,105,004,953.89|
|Attributable to owners of the parent|1,124,066,653.52|948,024,068.77|
|Attributable to minority interests|160,605,433.22|156,980,885.12|
|8. Earnings per share|||
|8.1 Basic earnings per share|1.81|1.44|
|8.2 Diluted earnings per share|1.81|1.44|

 6. Parent Company Income Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Operating revenue|11,896,493,564.73|8,967,860,546.46|
|Less: Operating expenses|9,234,940,559.84|6,859,231,278.20|
|Taxes and surtaxes|66,089,061.73|46,137,270.20|
|Selling expense|1,510,957,356.69|1,230,788,719.89|
|Administrative expense|384,653,787.00|282,209,180.40|
|Finance costs|-28,382,799.86|-65,789,102.80|
|Asset impairment losses|18,602,355.25|38,000,316.38|
|Add: Gains on fair value changes (“-” for losses)|6,482,343.61||
|Investment income (“-” for loss)|109,372,200.95|47,585,175.04|
|Including: Share of gains/losses of associates and joint ventures|||
|Other income|||
|2. Operating margin (“-” for losses)|825,487,788.64|624,868,059.23|
|Add: Non-operating income|12,887,071.45|6,170,352.44|
|Including: Gains on disposal of non-current assets|323,481.65|99,572.65|
|Less: Non-operating expense|1,598,940.52|1,109,079.32|
|Including: Losses on disposal of non-current assets|234,891.28|582,622.45|
|3. Gross margin (“-” for losses)|836,775,919.57|629,929,332.35|

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Less: Income tax expense|131,027,695.66|102,727,757.06|
|4. Net margin (“-” for losses)|705,748,223.91|527,201,575.29|
|5. Other comprehensive income, net of tax|3,618,137.72|22,110,741.45|
|5.1 Other comprehensive income that will not be reclassified into|||
|gains and losses|||
|5.1.1 Changes in net liabilities or assets with a defined benefit|||
|plan upon re-measurement|||
|5.1.2 Share of other comprehensive income of investees that|||
|cannot be reclassified into gains/losses under equity method|||
|5.2 Other comprehensive income to be subsequently reclassified|||
||3,618,137.72|22,110,741.45|
|into gains/losses|||
|5.2.1 Share of other comprehensive income of investees that will|||
|be reclassified into gains/losses under equity method|||
|5.2.2 Gains/Losses on fair value changes of available-for-sale|||
||3,618,137.72|22,110,741.45|
|financial assets|||
|5.2.3 Gains/Losses on reclassifying held-to-maturity investments|||
|into available-for-sale financial assets|||
|5.2.4 Effective gains/losses on cash flow hedges|||
|5.2.5 Currency translation differences|||
|5.2.6 Other|||
|6. Total comprehensive income|709,366,361.63|549,312,316.74|
|7. Earnings per share|||
|7.1 Basic earnings per share|||
|7.2 Diluted earnings per share|||

7. Consolidated Cash Flow Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Cash generated by or used in operating activities:|||
|Cash generated by sale of commodities and rendering of service|11,502,461,367.12|10,031,334,899.28|
|Net increase in money deposits from customers and interbank|||
|placements|||
|Net increase in loans from Central Bank|||
|Net increase in funds borrowed from other financial institutions|||
|Cash received as premiums of original insurance contracts|||
|Net cash generated by reinsurance business|||
|Net increase in deposits of policy holders and investment fund|||

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Net increase in disposal of financial assets at fair value through|||
|gains/losses|||
|Interest, fees and commissions received|||
|Net increase in interbank borrowings|||
|Net increase in funds in repurchase business|||
|Tax rebates received|60,061,335.71|60,063,076.13|
|Cash generated by other operating activities|86,857,031.47|72,368,190.31|
|Subtotal of cash generated by operating activities|11,649,379,734.30|10,163,766,165.72|
|Cash paid for goods and services|7,437,740,147.06|5,404,416,316.25|
|Net increase in loans and advances to customers|||
|Net increase in funds deposited in Central Bank and interbank|||
|placements|||
|Cash paid for claims of original insurance contracts|||
|Interest, fees and commissions paid|||
|Cash paid as policy dividends|||
|Cash paid to and for employees|918,519,618.20|679,507,180.35|
|Taxes paid|634,889,870.55|640,844,887.26|
|Cash used in other operating activities|1,969,007,881.07|1,511,703,696.63|
|Subtotal of cash used in operating activities|10,960,157,516.88|8,236,472,080.49|
|Net cash from operating activities|689,222,217.42|1,927,294,085.23|
|2. Cash generated by or used in investing activities:|||
|Cash generated by disinvestments|6,895,000,000.00|6,210,000,000.00|
|Cash received as investment income|238,758,884.14|130,758,204.67|
|Net cash generated by disposal of fixed assets, intangible assets|||
||840,384.69|823,553.94|
|and other long-term assets|||
|Net cash generated by disposal of subsidiaries or other business|||
||2,415,000.00||
|units|||
|Cash generated by other investing activities|57,042,308.02|48,649,720.52|
|Subtotal of cash generated by investing activities|7,194,056,576.85|6,390,231,479.13|
|Cash paid to acquire fixed assets, intangible assets and other|||
||104,042,380.39|17,222,953.39|
|long-term assets|||
|Cash paid for investments|8,545,000,000.00|8,756,000,000.00|
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries and other business units|||
|Cash used in other investing activities|||
|Subtotal of cash used in investing activities|8,649,042,380.39|8,773,222,953.39|

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Net cash from investing activities|-1,454,985,803.54|-2,382,991,474.26|
|3. Cash generated by or used in financing activities:|||
|Cash received as capital contributions|||
|Including: Cash received from minority shareholder investments|||
|by subsidiaries|||
|Cash received as borrowings|429,950,000.00||
|Cash generated by issuance of bonds|||
|Cash generated by other financing activities|||
|Subtotal of cash generated by financing activities|429,950,000.00||
|Repayment of borrowings|464,293,064.12||
|Cash paid for interest expenses and distribution of dividends or|||
||499,516,450.57|376,001,781.77|
|profit|||
|Including: dividends or profit paid by subsidiaries to minority|||
|interests|||
|Cash used in other financing activities|||
|Sub-total of cash used in financing activities|963,809,514.69|376,001,781.77|
|Net cash from financing activities|-533,859,514.69|-376,001,781.77|
|4. Effect of foreign exchange rate changes on cash and cash|||
|equivalents|||
|5. Net increase in cash and cash equivalents|-1,299,623,100.81|-831,699,170.80|
|Add: Opening balance of cash and cash equivalents|4,171,689,917.21|2,792,685,328.69|
|6. Closing balance of cash and cash equivalents|2,872,066,816.40|1,960,986,157.89|

 8. Parent Company Cash Flow Statement for January-September
Unit: RMB
||||
|-|-|-|
|Item|January-September 2017|January-September 2016|
|1. Cash generated by or used in operating activities:|||
|Cash generated by sale of commodities and rendering of service|9,850,148,284.12|5,783,703,284.45|
|Tax rebates received|||
|Cash generated by other operating activities|38,736,675.26|38,053,714.94|
|Subtotal of cash generated by operating activities|9,888,884,959.38|5,821,756,999.39|
|Cash paid for goods and services|6,852,988,102.23|3,722,465,740.78|
|Cash paid to and for employees|645,646,594.51|458,460,415.27|
|Taxes paid|370,064,700.60|449,874,162.78|
|Cash used in other operating activities|1,350,354,065.27|1,083,982,648.54|
|Subtotal of cash used in operating activities|9,219,053,462.61|5,714,782,967.37|

Wuxi Little Swan Company Limited Third Quarter Report 2017
||||
|-|-|-|
|Net cash from operating activities|669,831,496.77|106,974,032.02|
|2. Cash generated by or used in investing activities:|||
|Cash generated by disinvestments|3,185,000,000.00|3,685,000,000.00|
|Cash received as investment income|104,184,719.36|47,585,175.04|
|Net cash generated by disposal of fixed assets, intangible assets|||
||192,710.01|791,986.33|
|and other long-term assets|||
|Net cash generated by disposal of subsidiaries or other business|||
||2,415,000.00||
|units|||
|Cash generated by other investing activities|38,174,499.80|39,953,305.21|
|Subtotal of cash generated by investing activities|3,329,966,929.17|3,773,330,466.58|
|Cash paid to acquire fixed assets, intangible assets and other|||
||46,670,938.80|5,841,421.83|
|long-term assets|||
|Cash paid for investments|4,475,000,000.00|4,236,000,000.00|
|Net cash paid to acquire subsidiaries and other business units|||
|Cash used in other investing activities|||
|Subtotal of cash used in investing activities|4,521,670,938.80|4,241,841,421.83|
|Net cash from investing activities|-1,191,704,009.63|-468,510,955.25|
|3. Cash generated by or used in financing activities:|||
|Cash received as capital contributions|||
|Cash received as borrowings|243,000,000.00||
|Cash generated by issuance of bonds|||
|Cash generated by other financing activities|||
|Subtotal of cash generated by financing activities|243,000,000.00||
|Repayment of borrowings|258,943,093.80|376,001,781.77|
|Cash paid for interest expenses and distribution of dividends or|||
||492,786,139.87||
|profit|||
|Cash used in other financing activities|||
|Sub-total of cash used in financing activities|751,729,233.67|376,001,781.77|
|Net cash from financing activities|-508,729,233.67|-376,001,781.77|
|4. Effect of foreign exchange rate changes on cash and cash|||
|equivalents|||
|5. Net increase in cash and cash equivalents|-1,030,601,746.53|-737,538,705.00|
|Add: Opening balance of cash and cash equivalents|2,353,708,554.75|1,866,443,114.64|
|6. Closing balance of cash and cash equivalents|1,323,106,808.22|1,128,904,409.64|

Wuxi Little Swan Company Limited Third Quarter Report 2017 IIAuditor’s Report
Are the Q3 2017 financial statements audited?
□Yes√ No
These financial statements are unaudited.
Wuxi Little Swan Company Limited Legal representative: Fang Hongbo October 25, 2017