Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited Wuxi Little Swan Company Limited
Report for the Third Quarter of 2014 October 2014
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Wuxi Little Swan Company Limited (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
Mr. Fang Hongbo, chairman of the Board of Directors, Mr. Zhang Zhaofeng, CFO, and Mr. Zhong Fangliu, chief of the accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited Section II. Financial Highlights& Change of Shareholders
I. Major accounting data and financial indexes
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
|||||||
|-|-|-|-|-|-|
||30 Sept. 2014|31 Dec. 2013||Increase/decrease (%)||
|Total assets (RMB Yuan)|10,575,549,706.77|9,222,527,380.74||14.67%||
|Net assets attributable to shareholders of|4,243,024,026.22|3,908,897,654.74||||
|||||8.55%||
|the Company (RMB Yuan)||||||
|||YoY|||YoY|
||Jul.-Sept. 2014||Jan.-Sept. 2014|||
|||increase/decrease (%)|||increase/decrease (%)|
|Operating revenues (RMB Yuan)|2,804,258,384.17|19.23%|7,778,315,404.72||22.49%|
|Net profit attributable to shareholders of|197,842,982.94||514,201,515.06|||
|||92.37%|||58.80%|
|the Company (RMB Yuan)||||||
|Net profit attributable to shareholders of||||||
||172,201,108.23|123.90%|444,699,105.33||68.69%|
|the Company after extraordinary gains||||||
|and losses (RMB Yuan)||||||
|Net cash flows from operating activities|||1,013,018,933.44|||
||--|--|||9.62%|
|(RMB Yuan)||||||
|Basic EPS (RMB Yuan/share)|0.31|92.37%|0.81||58.80%|
|Diluted EPS (RMB Yuan/share)|0.31|92.37%|0.81||58.80%|
|Weighted average ROE (%)|4.78%|75.09%|12.53%||46.38%|

 Items and amounts of extraordinary gains and losses
√Applicable□Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount as of Jan.-Sept. 2014|Note|
|Gains/losses on the disposal of non-current assets (including the offset|||
||5,611,098.89||
|part of asset impairment provisions)|||
|Government grants recognized in the current period, except for those|||
|acquired in the ordinary course of business or granted at certain quotas or|10,750,842.62||
|amounts according to the country’s unified standards|||
|Gain/loss on entrusting others with investments or asset management|77,363,661.47||
|Gain/loss on debt restructuring|1,688,200.34||
|Reversal of impairment provisions for the accounts receivable on which|||
||5,548,244.81||
|impairment tests were carried out separately|||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Other non-operating income and expenses than the above|4,622,384.28||
|Other gain/loss items that meet the definition of an extraordinary|||
||-10,167,408.75||
|gain/loss|||
|Less: Income tax effects|15,877,500.88||
|Minority interests effects (after tax)|10,037,113.05||
|Total|69,502,409.73|--|

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable√ Inapplicable
II. Total number of shareholders and shareholdings of the top ten shareholders at the period-end
1. Total number of common shareholders and shareholdings of the top ten common shareholders at the period-end
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of common||||||||
|||28,874||||||
|shareholders at the period-end||||||||
|Shareholdings of the top ten common shareholders||||||||
||||||Number of|Pledged or frozen||
||||Shareholding|Number of the|restricted|shares||
|Name of shareholder|Nature of shareholder|||||||
||||percentage (%)|shares held|shares|Status of|Number|
||||||held|shares|of shares|
|MIDEA GROUP CO., LTD.|Domestic non-state-ownedcorporation||37.78%|238,948,117||||
|TITONI INVESTMENTSDEVELOPMENT LTD.|Foreign corporation||14.89%|94,204,942||||
|GAOLING FUND,L.P.|Foreign corporation||4.23%|26,727,686||||
|FINANCE BUREAU OF WUXI|On behalf of thegovernment||3.49%|22,057,657||||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreign corporation||2.28%|14,408,237||||
|NATIONAL SOCIALSECURITY FUND PORTFOLIO102|Domestic non-state-ownedcorporation||1.90%|12,000,000||||
|NATIONAL SOCIAL|Domestic non-state-owned||0.98%|6,180,101||||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
|||||||
|-|-|-|-|-|-|
|SECURITY FUND PORTFOLIO108|corporation|||||
|CCB－PENGHUA VALUEADVANTAGE STOCKSECURITIES INVESTMENTFUND|Domestic non-state-ownedcorporation||0.88%|5,593,148||
|INDUSTRIAL SECURITIESCO., LTD|Domestic non-state-ownedcorporation||0.65%|4,100,000||
|Li Zhuangyu|Domestic individual||0.63%|4,000,000||
|Shareholdings of the top ten non-restricted common shareholders||||||
|||Number of non-restricted||Type of shares||
|Name of shareholder||common shares held at the||||
|||||Type|Number|
|||period-end||||
|MIDEA GROUP CO., LTD.||238,948,117||RMB ordinary share||
|TITONI INVESTMENTS DEVELOPMENT LTD.||94,204,942||Domestically listed foreign share||
|GAOLING FUND,L.P.||26,727,686||Domestically listed foreign share||
|FINANCE BUREAU OF WUXI||22,057,657||RMB ordinary share||
|GUOTAI JUNAN SECURITIES(HONGKONG)LIMITED||14,408,237||||
|||||Domestically listed foreign share||
|NATIONAL SOCIAL SECURITY FUNDPORTFOLIO 102||12,000,000||||
|||||RMB ordinary share||
|NATIONAL SOCIAL SECURITY FUNDPORTFOLIO 108||6,180,101||||
|||||RMB ordinary share||
|CCB－PENGHUA VALUE ADVANTAGE STOCKSECURITIES INVESTMENT FUND||5,593,148||||
|||||RMB ordinary share||
|INDUSTRIAL SECURITIES CO., LTD||4,100,000||RMB ordinary share||
|Li Zhuangyu||4,000,000||RMB ordinary share||
|||MIDEA GROUP CO., LTD. and TITONI INVESTMENTS||||
|Explanation on associated relationship or/and persons||||||
|||DEVELOPMENT LTD. are parties acting in concert.||||

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company carry out any agreed buy-back in the reporting period?
□ Yes√ No
2. Total number of preferred share holders and shareholdings of the top ten preferred share holders at the period-end
□ Applicable√ Inapplicable
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
1. Major changes of main accounting statement items in the reporting period, as well as reasons for the changes
Unit: RMB Ten thousand
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Financial statement item||30 Sept.||31 Dec.||Increase||Increase|Explanation|
|||2014||2013||/decrease||/decrease (%)||
|Monetary funds|238,078.34||161,737.31||76,341.03||47%||We enhanced capital management,adopting notes instead of cash moreoften in payment.|
|Financial assets measuredat fair value and of whichthe gains are recordedinto current gains andlosses|162.59||1,501.67||-1,339.08||-89%||The fair value of the forward foreignexchange contracts decreased due toexchange rate fluctuations, and theforward foreign exchange contractssigned with banks decreased.|
|Accounts receivable|104,145.35||77,774.41||26,370.94||34%||Accounts receivable increased due tothe sales cycle.|
|Prepayments|19,821.61||14,084.19||5,737.42||41%||Prepayments for materials increased.|
|Construction in progress|218.43||-||218.43||100%||Plant engineering of the Company|
|Long-term deferredexpenses|257.81||714.78||-456.97||-64%||Molds were amortized and the bookvalue decreased.|
|Deferred income taxassets|25,414.38||17,099.10||8,315.29||49%||The deductible temporary differenceincreased.|
|Short-term borrowings|10,036.07||-||10,036.07||100%||Subsidiaries secured new short-termborrowings from banks.|
|Notes payable|93,270.39||38,567.31||54,703.08||142%||Banker’s acceptance bills drawn bythe Company were adopted moreoften in payment.|
|Accounts received inadvance|49,163.55||105,795.26||-56,631.71||-54%||Accounts received in advancedecreased due to the sales cycle.|
|Accounts payable|358,771.25||276,804.61||81,966.64||30%||Accounts payable increased due tothe procurement scale and cycle.|
|Taxes and fares payable|27,589.62||19,920.39||7,669.23||38%||Taxes payable increased due togrowth in the sales scale and profits.|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited Deferred income tax The book value of transactional 27.40 228.44 -201.04 -88%
liabilities financial assets decreased.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Financial statement item||Jan.-Sept.||Jan.-Sept.||Increase||Increase|Explanation|
|||2014||2013||/decrease||/decrease (%)||
|Financial expenses|-4,341.62||2,210.16||-6,551.77||-296%||The exchange loss decreased as aresult of exchange rate fluctuations.And the interest income increasedalong with the monetary funds.|
|Gains on fair valuechanges|-1,339.08||1,395.17||-2,734.25||-196%||The gains on fair value changes offorward exchange contractsdecreased.|
|Non-business expenses|762.88||1,448.66||-685.78||-47%||The loss on disposal of worn-outfixed assets decreased.|
|Total profits|69,169.44||43,009.10||26,160.34||61%||The sales scale and the gross profitrate both increased.|
|Income tax expenses|10,938.08||6,559.94||4,378.14||67%||Total profits increased.|
|Net profits|58,231.35||36,449.16||21,782.19||60%||The sales scale and the gross profitrate both increased.|
|Minority shareholders’income|6,811.20||4,068.58||2,742.63||67%||The net profits of subsidiary HefeiMidea Washing Machine Co., Ltd.increased.|
|Other comprehensiveincomes|26.65||-67.25||93.90||140%||The translation difference offoreign-currency statements of theSingapore subsidiary changed as aresult of exchange rate fluctuations.|
|Net cash flows frominvesting activities|-17,600.36||-60,771.69||43,171.33||71%||The difference between returns andexpenditures on bank wealthmanagement products narrowed.|
|Net cash flows fromfinancing activities|-8,999.89||-18,331.20||9,331.32||51%||Cash received as short-termborrowings increased.|

2. Influence of the amended accounting standards on the consolidated financial statements of the Company According to the definitions and examples given in the<Notice on Making Efforts to Accomplish the Financial Information Disclosure in Regard to the Newly Promulgated or Amended AccountingStandards>, we did not need to adjust our consolidated financial statements for the reporting period.
II. Commitments made by the Company or shareholders holding over5% of theCompany’s
shares in the reporting period or such commitments carried down into the reporting period
√ Applicable□ Inapplicable
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
|||||||
|-|-|-|-|-|-|
||||Time of|Period of||
||Commitment|||||
|Commitment||Contents|making|commitmen|Fulfillment|
||maker|||||
||||commitment|t||
|||Where the controlling shareholder GD Midea Holding Co.,||||
|||Ltd. (Midea Holding) plans to sell the Company’s shares||||
|||released from trading moratorium held by it via the bid||||
||||||In the|
|Commitment||trading system of the Shenzhen Stock Exchange, and Midea||||
||Controlling||||process of|
|on share||Holding decreases over 5% shares within six months since|28 Feb. 2008|Long-term||
||shareholder||||implementa|
|reform||the first reduction of holdings, Midea Holding will disclose||||
||||||tion|
|||the suggestive announcement on share selling through the||||
|||Company two trading days before its first reduction of||||
|||holdings.||||
|||1. As for the commitment of avoiding horizontal competition,||||
|||Midea Group (the controlling shareholder) and Mr. He||||
|||Xiangjian (the actual controller) has promised that, for the||||
|||period after the said transaction when the Company’s||||
|||controlling shareholder and actual controller remain||||
|||unchanged, the actual controller Mr. He Xiangjian, his||||
|||immediate family, Midea Group and its controlled other||||
|||enterprises neither recently nor in the future will engage in||||
|||any production or operation activity the same as or similar to||||
|||the recently main business of Little Swan or its controlled||||
|||enterprises, as well as will neither engage in nor participate in||||
||Controlling|any competitive business the same as the recently main|||In the|
|Commitment|shareholder|business of Little Swan or its controlled enterprises through|1 Dec. 2010,||process of|
|||||Long-term||
|in the|and actual|controlling other economic entities, institutions, economic|6 Jun. 2014||implementa|
|acquisition|controller|organizations. If Little Swan and its controlled enterprises|||tion|
|report or the||further developed its scope of the operation business on the||||
|report on||basis of the recently business, and if the actual controller Mr.||||
|equity||He Xiangjian, his immediate family, Midea Group and its||||
|changes||controlled other enterprises had executed production of that,||||
|||would solve the corresponding horizontal competition||||
|||problems within the reasonable period. If recently there was||||
|||no any production or operation, would not engage in the||||
|||similar new business that competed with Little Swan and its||||
|||controlled enterprises. If there was any situation violated the||||
|||above commitments, the profits gained from the business||||
|||related to operation were belongs to Little Swan.||||
|||2. The commitment by Midea Group and the actual controller||||
||Controlling||||In the|
|||on the specification of the related-party transaction. Midea||||
||shareholder||1 Dec. 2010,||process of|
|||Group (the controlling shareholder) and Mr. He Xiangjian||Long-term||
||and actual||6 Jun. 2014||implementa|
|||(the actual controller) has promised that, for the period after||||
||controller||||tion|
|||the said transaction when the Company’s controlling||||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||||
|-|-|-|-|-|
||shareholder and actual controller remain unchanged, the||||
||actual controller Mr. He Xiangjian, his immediate family,||||
||Midea Group and its controlled other enterprises will specify||||
||and try their best to reduce the related-party transactions with||||
||Little Swan and its controlled enterprises. If occurred the||||
||unavoidable related transactions with Little Swan and its||||
||controlled enterprises, would sign the normative related-party||||
||transactions agreement Little Swan according to laws and||||
||would execute the approval procedure according to the||||
||relevant regulations to ensure the fairness of the price of the||||
||related-party transactions; ensure to execute the information||||
||disclose obligation of related-party transactions according to||||
||the relevant regulations; ensure not to make advantage of the||||
||related-party transactions for illegally transferring the assets||||
||and profits of Little Swan, as well as not to make advantage||||
||of the related-party transactions for harming to the interests of||||
||Little Swan and the shareholders; would not require Little||||
||Swan to offer any more favorable condition compared with||||
||that offered to the independent third party in any fair trade||||
||market transaction; execute the voting debarb obligation||||
||when involved in the voting of the related events of the actual||||
||controller Mr. He Xiangjian, his immediate family, Midea||||
||Group and its controlled other enterprises. If Midea Group||||
||and Mr. He Xiangjian violated the above commitments and||||
||promises that led to the harm for the equity of Little Swan or||||
||other shareholders, Midea Group and Mr. He Xiangjian||||
||should take the responsibility of the corresponding liability||||
||for damage.||||
||3. As for the commitment on independence, Midea Group has||||
||promised to protect Little Swan’s independence in terms of||||
||assets, staff, finance, organization and business. 3. As for the||||
||commitment on independence, Midea Group and the actual||||
|||||In the|
||controller Mr. He Xiangjian has promised that, to further||||
|Controlling||1 Dec. 2010,||process of|
||ensure the independent operation of Little Swan, Mr. He||Long-term||
|shareholder||6 Jun. 2014||implementa|
||Xiangjian, Midea Group and its controlled other enterprises||||
|||||tion|
||would maintain the mutual independent in terms of personnel,||||
||finance, assets, business and institutions with Little Swan||||
||according to the relevant laws and regulations as well as the||||
||normative documents.||||
||4. As for the commitment on related-party deposits and||||
|||||In the|
||borrowings, up to 8 Apr. 2010, the Financial Settlement||||
|Controlling||||process of|
||Center of Midea Group had settled all internal deposits and|1 Dec. 2010|Long-term||
|shareholder||||implementa|
||borrowings with Hefei Royalstar Washing Equipment||||
|||||tion|
||Manufacturing Co., Ltd.; and Midea Group has promised that||||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||||
|-|-|-|-|-|
||there will be no more deposits, borrowings or other funds||||
||flows incurred between the Financial Settlement Center and||||
||Hefei Royalstar Washing Equipment Manufacturing Co.,||||
||Ltd..||||
||5. The commitment by Midea Group on housing properties||||
||with no ownership certificates of the target company for sale||||
||is detailed as follows. Two pieces of the buildings of||||
||Royalstar Washing Equipment assessed and sold to the||||
||Company are of no ownership certificates—the warehouse||||
|||||In the|
||for half-finished products (176 square meters) and the||||
|Controlling||||process of|
||workshop for injection molding (834 square meters), both|1 Dec. 2010|Long-term||
|shareholder||||implementa|
||located in the old factory of Royalstar Washing Equipment,||||
|||||tion|
||Hewa Road, Hefei. Midea Group has promised that if loss||||
||occurs due to the said two buildings without ownership||||
||certificates in the asset disposal process in the future, it will||||
||assume the loss thus caused and make compensation to the||||
||Company.||||
||6. The commitment by Midea Group on trademarks is||||
||detailed as follows. (1) Concerning the “Midea” trademark:||||
||Upon approval and implementation of the equity transfer||||
||transaction, Midea Group has promised that it will make sure||||
||that Royalstar Washing Equipment uses the “Midea”||||
||trademark in a proper manner. Royalstar Washing Equipment||||
||will be allowed to use the “Midea” trademark with a||||
||trademark use fee not more than that paid by Midea Group||No. (2),||
||(the controlling shareholder of Midea Group) and its||RongShiDa||
||subsidiaries (currently 3‰ of the annual sales income||trademark||
||generated by products using the “Midea” trademark), and||is due by||
||upon negotiation and signing of the “Agreement for||March 31,||
|||||In the|
||Trademark Use”. The related-party transactions incurred due||2013 and||
|Controlling||||process of|
||to the said use of the “Midea” trademark will be submitted to|1 Dec. 2010|won’t||
|shareholder||||implementa|
||the decision-making organ of the Company for approval||renew its||
|||||tion|
||according to the stipulated procedure. As such, interests of the||contract;||
||Company and its minority shareholders will be safeguarded.||Other items||
||(2) Concerning the “Royalstar” trademark: Midea Group has||for a long||
||signed the “Contract for Trademark Use” with Royalstar||term||
||Group and obtained the ordinary use rights of the “Royalstar”||implement||
||(or “RongShiDa”) trademark. As the transferor in the transfer||||
||transaction of equity interests of Royalstar Washing||||
||Equipment, Midea Group has promised that within the scope||||
||as agreed in the “Contract for Trademark Use”, if any dispute||||
||arises between Royalstar Washing Equipment and Royalstar||||
||Group over the former’s execution of the “Contract for||||
||Trademark Use”, Little Swan will not be involved. If||||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
|||||||
|-|-|-|-|-|-|
|||Royalstar Washing Equipment and Little Swan have to||||
|||assume any responsibility or loss due to the aforesaid dispute,||||
|||Midea Group is willing to take on the responsibility instead||||
|||and make compensations to Royalstar Washing Equipment||||
|||and Little Swan at full amount.||||
|||7. The commitment by Midea Group on social security||||
|||payment and tax risks is detailed as follows. Midea Group has||||
|||promised that upon the completion of the said equity transfer||||
|||deal, if Royalstar Washing Equipment is obliged to take on||||
|||any responsibility or pay relevant fares as required by||||
|||relevant government authorities due to its social security||||
|||payment before the said deal, Midea Group is willing to pay||||
|||relevant fares for Royalstar Washing Equipment to relevant||||
||||||In the|
|||government authorities in a timely manner and assume any||||
||Controlling||||process of|
|||other liability. If any loss thus occurs to Royalstar Washing|1 Dec. 2010|Long-term||
||shareholder||||implementa|
|||Equipment or Little Swan, Midea Group is willing to assume||||
||||||tion|
|||relevant responsibilities for compensation. Upon the||||
|||completion of the said equity transfer deal, if income tax||||
|||evasion or any other tax risk is found in Royalstar Washing||||
|||Equipment, Midea Group is willing to assume relevant legal||||
|||responsibilities and risks and pay relevant taxes in a timely||||
|||manner to relevant government authorities; and if any loss||||
|||thus occurs to Little Swan, Midea Group will assume the||||
|||corresponding responsibility for compensation.||||
|Commitment||||||
|s made in an||||||
|||Naught||||
|asset||||||
|exchange||||||
|Commitment||||||
|s made in||||||
|first public||Naught||||
|issuance or||||||
|refinancing.||||||
|Other||||||
|commitments||||||
|made to||Naught||||
|minority||||||
|shareholders||||||
|Executed||||||
||Yes|||||
|timely or not?||||||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited III. Predict the 2014 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the beginning of the year to the end of the next reporting period compared with the same period of the last year according to prediction, as well as explanations on the reasons
□Applicable√Inapplicable
IV. Investments in derivatives
√Applicable□Inapplicable
Unit: RMB Ten Thousand Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Proportion of||
|||Related-||||||||the closing||
||||Type of||||Opening|Impairme|Closing||Actual|
|||party||Initial||||||investment||
|Operato|||derivative||Beginning|Ending|investme|nt|investme||gain/loss in|
||Relation|transacti||investmen||||||amount in the||
|r|||investmen||date|date|nt|provision|nt||reporting|
|||on or||t amount||||||Company’s||
||||t||||amount|(if any)|amount||period|
|||not||||||||closing net||
|||||||||||assets (%)||
||||Forward|||||||||
||||||16 May|||||||
|Bank|No|No|exchange|48,371||7 Jan 2015|48,371||8,613|1.74%|-764.5|
||||||2013|||||||
||||contract|||||||||
|Total||||48,371|--|--|48,371||8,613|1.74%|-764.5|
|Capital source for derivative||||||||||||
|||||All self-owned funds||||||||
|investment||||||||||||
|Lawsuits ( if applicable )||||Inapplicable||||||||
|Disclosure date of the board||||||||||||
|announcement approving the wealth||||7 Mar. 2014||||||||
|management entrustment (if any)||||||||||||
|Disclosure date of the general meeting||||||||||||
|announcement approving the wealth||||16 April 2014||||||||
|management entrustment (if any)||||||||||||
|||||The Company has formulated the Management Methods for Futures Hedging Business and||||||||
|||||the Management Methods for Exchange Funds upon review to thoroughly assess and control||||||||
|Analysis on risks and control measures||||derivative investment risks, which are detailed as follows:||||||||
|of derivative products held in the||||1. Market risk||||||||
|reporting period (including but not||||Price movements of bulk raw materials and fluctuations of exchange rates may incur a great||||||||
|limited to market risk, liquidity risk,||||market risk in the futures business and the foreign exchange funds business. Meanwhile, if||||||||
|credit risk, operation risk, law risk,||||the Company fails to input enough funds in time to create and maintain hedging positions in||||||||
|etc.)||||its futures hedging operations, or fails to input foreign exchanges on time for contract||||||||
|||||execution in the foreign exchange funds business, hedging loss and contract breach risk may||||||||
|||||incur.||||||||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
|||
|-|-|
||Counter-measures: The Company will not carry out speculative trading in its futures hedging|
||business and foreign exchange funds business. And the Company will stick to the principle|
||of being prudent in operations. As for the futures hedging business, the hedging volume|
||should be determined and futures trading applications should be filed in strict accordance|
||with production and operation needs. In principle, the hedging volume shall not exceed one|
||third of the planned volume for the year. And a stop-loss mechanism is adopted. Guarantee|
||deposits are paid as required and increased according to production and operation needs. As|
||for the foreign exchange funds business, a from-the-bottom-up management mechanism is|
||adopted. When subsidiaries or product enterprises file applications for funds business, they|
||will give a risk analysis on conditions or circumstances that might affect gains and losses,|
||estimate the maximum gain and loss, and state the ratio or total amount of guarantee deposits|
||they can bear. And the Company will, according to their applications, update operations in|
||time in its funds business and make funds arrangements before the maturity date.|
||2. Operation risk|
||The Company may suffer loss in its hedging business and foreign exchange funds business|
||due to faulty internal procedures, staff, systems and external events.|
||Counter-measures: Responsibility division and approval procedures for the hedging and|
||foreign exchange business have been specified in relevant management rules. And a sound|
||supervision mechanism has been established. And operation risk can be effectively reduced|
||by enhancing risk control over procedures for operation, decision-making and trading.|
||3. Risk concerning laws and regulations|
||The Company carries out its hedging and foreign exchange business in compliance with|
||applicable laws and regulations, with rights and duties between the Company and agencies|
||being stated clearly.|
||Counter-measures: The Company urges responsible departments to understand better|
||about relevant laws, regulations and market rules; be strict in contract re-checks; make clear|
||relevant rights and duties; and enhance compliance checks to make sure that the Company|
||operates derivative investments in compliance with applicable laws, regulations and the|
||Company’s internal management rules.|
|Changes of market prices or fair||
|values in the reporting period of the||
|invested derivatives. And the analysis|The Company adopts public quotations in the futures market or forward foreign exchange|
|on the fair value of the derivatives|quotations declared by the People’s Bank of China in its analysis on fair values of derivative|
|should include the specific use|products.|
|methods and the relevant assumptions||
|and parameters.||
|Whether significant changes occurred||
|to the Company’s accounting policy||
|and specific accounting principles of||
||No significant changes.|
|derivatives in the reporting period||
|compared to the previous reporting||
|period||
|Specific opinion from independent|Independent directors of the Company believe that: The Company has formulated derivative|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
|||
|-|-|
|directors on the Company’s|investment rules such as the Management Methods for Futures Hedging Business and the|
|derivatives investment and risk control|Management Methods for Exchange Funds to help it effectively control risks involved; The|
||Company’s derivative investments in the reporting period mainly targeted its exports. It|
||signed forward exchange contracts with domestic financial institutions, which helped it lock|
||up the exchange rate and avoid the risk of exchange rate fluctuations. The Company|
||conducted no speculative operations, so there was no credit risk. And transaction periods|
||were determined according to expectations and payment receiving and making, with no|
||influence on the Company’s fluidity.|

V. Researches, visits and interviews received in the reporting period
√Applicable□Inapplicable
|||||||
|-|-|-|-|-|-|
|||Way of|||Main discussion and materials|
|Time|Place||Visitor type|Visitor||
|||reception|||provided by the Company|
||Conference Room of|||Guosen Securities,|Overall operation of the|
|1 Jul. 2014||Field research|Institution|||
||the Company|||GUOLIAN Securities|Company|
||Conference Room of||||Overall operation of the|
|7 Jul. 2014||Field research|Institution|Huatai Securities||
||the Company||||Company|
||Conference Room of||||Overall operation of the|
|7 Aug. 2014||Field research|Institution|ESSENCE Securities||
||the Company||||Company|
||Conference Room of|||Chinese Fund, Founder|Overall operation of the|
|1 Sep. 2014||Field research|Institution|||
||the Company|||Securities|Company|
||Conference Room of||||Overall operation of the|
|4 Sep. 2014||Field research|Institution|Huatai Securities||
||the Company||||Company|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|2,380,783,432.66|1,617,373,088.50|
|Settlement reserves|||
|Intra-group lendings|||
|Financial assets measured at fair value and of which changes are|||
||1,625,900.00|15,016,740.00|
|recorded into current gains and losses|||
|Notes receivable|2,677,582,220.93|2,449,770,225.41|
|Accounts receivable|1,041,453,515.70|777,744,132.32|
|Accounts paid in advance|198,216,108.62|140,841,924.06|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserves|||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|31,680,859.49|26,163,524.13|
|Financial assets purchased under agreements to resell|||
|Inventories|634,779,029.10|798,141,838.58|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|1,997,278,786.50|1,791,288,539.62|
|Total current assets|8,963,399,853.00|7,616,340,012.62|
|Non-current assets:|||
|Loans by mandate and advances granted|||
|Available-for-sale financial assets|501,056.00|512,816.00|
|Held-to-maturity investments|||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Long-term accounts receivable|||
|Long-term equity investment|3,169,463.53|4,379,148.88|
|Investing property|8,709,058.60|9,466,777.10|
|Fixed assets|1,121,031,153.22|1,194,244,286.86|
|Construction in progress|2,184,273.62||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|219,832,882.92|219,445,532.87|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|2,578,135.48|7,147,835.74|
|Deferred income tax assets|254,143,830.40|170,990,970.67|
|Other non-current assets|||
|Total of non-current assets|1,612,149,853.77|1,606,187,368.12|
|Total assets|10,575,549,706.77|9,222,527,380.74|
|Current liabilities:|||
|Short-term borrowings|100,360,740.00||
|Borrowings from Central Bank|||
|Customer bank deposits and due to banks and other financial|||
|institutions|||
|Intra-group borrowings|||
|Financial liabilities measured at fair value and of which changes are|||
|recorded into current gains and losses|||
|Notes payable|932,703,928.71|385,673,110.34|
|Accounts payable|3,587,712,503.20|2,768,046,095.46|
|Accounts received in advance|491,635,454.20|1,057,952,597.52|
|Financial assets sold for repurchase|||
|Handling charges and commissions payable|||
|Employee’s compensation payable|189,622,771.48|207,323,619.92|
|Tax payable|275,896,166.92|199,203,856.56|
|Interest payable|||
|Dividend payable|4,088,128.36|3,740,152.33|
|Other accounts payable|43,225,364.88|50,021,093.66|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Reinsurance premiums payable|||
|Insurance contract reserves|||
|Payables for acting trading of securities|||
|Payables for acting underwriting of securities|||
|Liabilities held for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|5,625,245,057.75|4,671,960,525.79|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|2,073,957.30|2,073,957.30|
|Estimated liabilities|10,133,489.48|11,310,523.59|
|Deferred income tax liabilities|273,998.40|2,284,388.40|
|Other non-current liabilities|491,200.00|568,600.00|
|Total non-current liabilities|12,972,645.18|16,237,469.29|
|Total liabilities|5,638,217,702.93|4,688,197,995.08|
|Owners’ equity (or shareholders’ equity)|||
|Paid-up capital (or share capital)|632,487,764.00|632,487,764.00|
|Capital reserves|1,138,655,354.58|1,129,250,666.31|
|Less: Treasury stock|||
|Specific reserves|||
|Other comprehensive income|170,642.60|180,638.60|
|Surplus reserves|290,958,368.49|290,958,368.49|
|Provisions for general risks|||
|Retained profits|2,184,035,116.96|1,859,579,931.10|
|Foreign exchange difference|-3,283,220.41|-3,559,713.76|
|Total equity attributable to owners of the Company|4,243,024,026.22|3,908,897,654.74|
|Minority interests|694,307,977.62|625,431,730.92|
|Total owners’ (or shareholders’) equity|4,937,332,003.84|4,534,329,385.66|
|Total liabilities and owners’ (or shareholders’) equity|10,575,549,706.77|9,222,527,380.74|

Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Chief of the accounting organ: Zhong Fangliu
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited 2. Balance sheet of the Company
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|1,323,130,037.11|910,325,739.17|
|Financial assets measured at fair value and of which changes are|||
||1,041,490.00|8,727,740.00|
|recorded into current gains and losses|||
|Notes receivable|1,731,202,885.88|1,541,082,811.22|
|Accounts receivable|752,563,653.83|731,446,199.69|
|Accounts paid in advance|87,538,570.83|56,620,106.39|
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|26,976,811.61|18,752,200.83|
|Inventories|386,451,105.49|543,401,541.27|
|Assets held for sale|||
|Non-current assets due within 1 year|||
|Other current assets|1,169,115,028.77|939,664,538.10|
|Total current assets|5,478,019,583.52|4,750,020,876.67|
|Non-current assets:|||
|Available-for-sale financial assets|451,056.00|462,816.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|1,400,363,955.10|1,601,573,640.45|
|Investing property|8,709,058.60|9,466,777.10|
|Fixed assets|535,691,845.15|568,924,123.24|
|Construction in progress|2,184,273.62||
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|98,644,343.35|101,069,007.28|
|R&D expense|||
|Goodwill|||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Long-term deferred expenses|2,216,468.83|6,781,326.79|
|Deferred income tax assets|172,350,916.77|119,667,809.75|
|Other non-current assets|||
|Total of non-current assets|2,220,611,917.42|2,407,945,500.61|
|Total assets|7,698,631,500.94|7,157,966,377.28|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured at fair value and of which changes are|||
|recorded into current gains and losses|||
|Notes payable|496,708,666.84|273,399,760.34|
|Accounts payable|2,499,713,630.94|1,766,585,288.21|
|Accounts received in advance|302,534,321.05|724,228,146.67|
|Employee’s compensation payable|114,184,556.95|118,237,120.06|
|Tax payable|194,904,065.59|156,722,107.53|
|Interest payable|||
|Dividend payable|4,088,128.36|3,740,152.33|
|Other accounts payable|14,044,690.38|208,682,591.14|
|Liabilities held for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|3,626,178,060.11|3,251,595,166.28|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|186,336.90|1,341,038.40|
|Other non-current liabilities|||
|Total non-current liabilities|186,336.90|1,341,038.40|
|Total liabilities|3,626,364,397.01|3,252,936,204.68|
|Owners’ equity (or shareholders’ equity)|||
|Paid-up capital (or share capital)|632,487,764.00|632,487,764.00|
|Capital reserves|1,298,896,328.95|1,291,302,721.54|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Less: Treasury stock|||
|Specific reserves|||
|Other comprehensive income|170,642.60|180,638.60|
|Surplus reserves|278,308,224.59|278,308,224.59|
|Provisions for general risks|||
|Retained profits|1,862,404,143.79|1,702,750,823.87|
|Foreign exchange difference|||
|Total owners’ (or shareholders’) equity|4,072,267,103.93|3,905,030,172.60|
|Total liabilities and owners’ (or shareholders’) equity|7,698,631,500.94|7,157,966,377.28|

 Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
3. Consolidated income statement for the reporting period
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total operating revenues|2,804,258,384.17|2,351,890,369.69|
|Including: Sales income|2,804,258,384.17|2,351,890,369.69|
|Interest income|||
|Premium income|||
|Handling charge and commission income|||
|II. Total operating cost|2,576,607,738.71|2,243,884,051.22|
|Including: Cost of sales|2,091,801,523.78|1,773,421,672.92|
|Interest expenses|||
|Handling charge and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|19,941,950.55|14,711,505.82|
|Selling and distribution expenses|371,631,466.09|333,805,764.77|
|Administrative expenses|115,738,140.00|110,382,703.36|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Financial expenses|-33,516,356.24|1,958,463.49|
|Asset impairment loss|11,011,014.51|9,603,940.85|
|Add: Gain/(loss) from change in fair value (“-” means loss)|138,950.00|3,367,000.00|
|Gain/(loss) from investment (“-” means loss)|34,382,091.67|35,231,232.64|
|Including: share of profits in associates and joint ventures|||
|Foreign exchange gains (“-” means loss)|||
|III. Business profit (“-” means loss)|262,171,687.13|146,604,551.11|
|Add: non-operating income|15,602,937.06|11,627,742.66|
|Less: non-operating expense|2,880,560.12|7,054,088.32|
|Including: loss from non-current asset disposal|||
|IV. Total profit (“-” means loss)|274,894,064.07|151,178,205.45|
|Less: Income tax expense|42,944,237.62|22,607,062.03|
|V. Net profit (“-” means loss)|231,949,826.45|128,571,143.42|
|Including: Net profit achieved by combined parties before the|||
|combinations|||
|Attributable to owners of the Company|197,842,982.94|102,844,386.40|
|Minority shareholders’ income|34,106,843.51|25,726,757.02|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.31|0.16|
|(II) Diluted earnings per share|0.31|0.16|
|Ⅶ. Other comprehensive incomes|40,488.59|-102,839.73|
|Including: Other comprehensive incomes items that cannot be|||
|reclassified as gains and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as gains|||
|and losses in the subsequent accounting periods as relevant|40,488.59|-102,839.73|
|requirements are met|||
|Ⅷ. Total comprehensive incomes|231,990,315.04|128,468,303.69|
|Attributable to owners of the Company|197,883,471.54|102,741,546.67|
|Attributable to minority shareholders|34,106,843.50|25,726,757.02|

 Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
4. Income statement of the Company for the reporting period
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Item|Jul.-Sept. 2014|Jul.-Sept. 2013|
|I. Total sales|2,045,214,108.73|1,674,972,222.91|
|Less: cost of sales|1,551,013,865.02|1,313,528,463.00|
|Business taxes and surcharges|14,895,038.76|10,712,797.70|
|Distribution expenses|287,110,364.16|243,078,146.76|
|Administrative expenses|80,643,242.07|70,987,207.69|
|Financial costs|-12,084,031.02|55,060.61|
|Impairment loss|9,489,035.72|3,791,558.79|
|Add: gain/(loss) from change in fair value (“-” means loss)|149,660.00|1,818,010.00|
|Gain/(loss) from investment (“-” means loss)|27,323,011.72|19,663,159.44|
|Including: income form investment on associates and joint|||
|ventures|||
|II. Business profit (“-” means loss)|141,619,265.74|54,300,157.80|
|Add: non-business income|6,170,955.53|3,467,962.17|
|Less: non-business expense|2,599,036.26|2,213,259.41|
|Including: loss from non-current asset disposal|||
|III. Total profit (“-” means loss)|145,191,185.01|55,554,860.56|
|Less: income tax expense|22,917,494.19|8,333,229.08|
|IV. Net profit (“-” means loss)|122,273,690.82|47,221,631.48|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||
|VI. Other comprehensive income|41,983.20|49,980.00|
|Including: Other comprehensive incomes items that cannot be|||
|reclassified as gains and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as|||
|gains and losses in the subsequent accounting periods as relevant|41,983.20|49,980.00|
|requirements are met|||
|VII. Total comprehensive income|122,315,674.02|47,271,611.48|

 Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
5. Consolidated income statement for Jan.-Sept. 2014
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total operating revenues|7,778,315,404.72|6,350,114,706.00|
|Including: Sales income|7,778,315,404.72|6,350,114,706.00|
|Interest income|||
|Premium income|||
|Handling charge and commission income|||
|II. Total operating cost|7,183,578,691.28|6,022,580,316.08|
|Including: Cost of sales|5,747,116,600.37|4,779,232,584.06|
|Interest expenses|||
|Handling charge and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount withdrawn for the insurance contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Taxes and associate charges|51,122,619.48|40,669,122.03|
|Selling and distribution expenses|1,080,503,620.01|873,771,862.53|
|Administrative expenses|325,821,024.69|283,474,894.04|
|Financial expenses|-43,416,185.10|22,101,561.23|
|Asset impairment loss|22,431,011.83|23,330,292.19|
|Add: Gain/(loss) from change in fair value (“-” means loss)|-13,390,840.00|13,951,660.00|
|Gain/(loss) from investment (“-” means loss)|90,760,162.13|73,812,914.09|
|Including: share of profits in associates and joint ventures|||
|Foreign exchange gains (“-” means loss)|||
|III. Business profit (“-” means loss)|672,106,035.57|415,298,964.01|
|Add: non-operating income|27,217,146.86|29,278,637.87|
|Less: non-operating expense|7,628,798.78|14,486,580.26|
|Including: loss from non-current asset disposal|||
|IV. Total profit (“-” means loss)|691,694,383.65|430,091,021.62|
|Less: Income tax expense|109,380,840.22|65,599,413.96|
|V. Net profit (“-” means loss)|582,313,543.43|364,491,607.66|
|Including: Net profit achieved by combined parties before the|||
|combinations|||
|Attributable to owners of the Company|514,201,515.06|323,805,853.35|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Minority shareholders’ income|68,112,028.37|40,685,754.31|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.81|0.51|
|(II) Diluted earnings per share|0.81|0.51|
|VII. Other comprehensive incomes|266,497.35|-672,531.38|
|Including: Other comprehensive incomes items that cannot be|||
|reclassified as gains and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as|||
|gains and losses in the subsequent accounting periods as relevant|266,497.35|-672,531.38|
|requirements are met|||
|VIII. Total comprehensive incomes|582,580,040.78|363,819,076.28|
|Attributable to owners of the Company|514,468,012.41|323,133,321.97|
|Attributable to minority shareholders|68,112,028.37|40,685,754.31|

 Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
6. Income statement of the Company for Jan.-Sept. 2014
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Total sales|5,687,914,331.68|4,585,374,586.77|
|Less: cost of sales|4,269,756,795.64|3,510,911,722.40|
|Business taxes and surcharges|36,659,116.46|31,033,628.81|
|Distribution expenses|805,413,041.27|637,153,613.83|
|Administrative expenses|225,606,342.21|180,536,721.37|
|Financial costs|-16,645,680.21|12,229,740.00|
|Impairment loss|3,540,560.15|6,642,092.71|
|Add: gain/(loss) from change in fair value (“-” means loss)|-7,686,250.00|8,331,530.00|
|Gain/(loss) from investment (“-” means loss)|50,796,884.88|42,405,848.12|
|Including: income form investment on associates and joint|||
|ventures|||
|II. Business profit (“-” means loss)|406,694,791.04|257,604,445.77|
|Add: non-business income|9,905,491.91|11,460,429.17|
|Less: non-business expense|5,790,568.60|6,814,563.01|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Including: loss from non-current asset disposal|||
|III. Total profit (“-” means loss)|410,809,714.35|262,250,311.93|
|Less: income tax expense|61,410,065.24|39,608,473.35|
|IV. Net profit (“-” means loss)|349,399,649.11|222,641,838.58|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.55|0.35|
|(II) Diluted earnings per share|0.55|0.35|
|VI. Other comprehensive income|-9,996.00|11,995.20|
|Including: Other comprehensive incomes items that cannot be|||
|reclassified as gains and losses in the subsequent accounting periods|||
|Other comprehensive incomes items that will be reclassified as|||
|gains and losses in the subsequent accounting periods as relevant|-9,996.00|11,995.20|
|requirements are met|||
|VII. Total comprehensive income|349,389,653.11|222,653,833.78|

 Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of commodities and rendering of service|5,854,769,921.86|5,442,525,374.24|
|Net increase of deposits from customers and dues from banks|||
|Net increase of loans from the central bank|||
|Net increase of funds borrowed from other financial institutions|||
|Cash received from premium of original insurance contracts|||
|Net cash received from reinsurance business|||
|Net increase of deposits of policy holders and investment fund|||
|Net increase of disposal of tradable financial assets|||
|Cash received from interest, handling charges and commissions|||
|Net increase of intra-group borrowings|||
|Net increase of funds in repurchase business|||
|Tax refunds received|13,166,555.37|83,523,076.70|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Other cash received relating to operating activities|59,179,851.13|29,429,979.50|
|Subtotal of cash inflows from operating activities|5,927,116,328.36|5,555,478,430.44|
|Cash paid for goods and services|2,946,834,967.13|2,786,581,207.50|
|Net increase of customer lendings and advances|||
|Net increase of funds deposited in the central bank and amount due|||
|from banks|||
|Cash for paying claims of the original insurance contracts|||
|Cash for paying interest, handling charges and commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|533,741,998.28|448,347,381.57|
|Various taxes paid|501,447,104.33|364,241,388.70|
|Other cash payment relating to operating activities|932,073,325.18|1,032,160,321.78|
|Subtotal of cash outflows from operating activities|4,914,097,394.92|4,631,330,299.55|
|Net cash flows from operating activities|1,013,018,933.44|924,148,130.89|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of investments|5,440,020,000.00|7,593,702,834.77|
|Cash received from return on investments|83,159,591.47|11,120,460.00|
|Net cash received from disposal of fixed assets, intangible assets|||
||844,540.00|21,044,377.77|
|and other long-term assets|||
|Net cash received from disposal of subsidiaries or other business|||
|units|||
|Other cash received relating to investing activities|||
|Subtotal of cash inflows from investing activities|5,524,024,131.47|7,625,867,672.54|
|Cash paid to acquire fixed assets, intangible assets and other|||
||55,907,723.73|77,524,540.48|
|long-term assets|||
|Cash paid for investment|5,644,120,000.00|8,156,060,000.00|
|Net increase of pledged loans|||
|Net cash paid to acquire subsidiaries and other business units|||
|Other cash payments relating to investing activities|||
|Subtotal of cash outflows from investing activities|5,700,027,723.73|8,233,584,540.48|
|Net cash flows from investing activities|-176,003,592.26|-607,716,867.94|
|III. Cash Flows from Financing Activities:|||
|Cash received from capital contributions|||
|Including: Cash received from minority shareholder investments|||
|by subsidiaries|||

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Cash received from borrowings|100,360,740.00||
|Cash received from issuance of bonds|||
|Other cash received relating to financing activities|||
|Subtotal of cash inflows from financing activities|100,360,740.00||
|Repayment of borrowings|||
|Cash paid for interest expenses and distribution of dividends or|||
||190,359,596.70|183,312,022.63|
|profit|||
|Including: dividends or profit paid by subsidiaries to minority|||
|shareholders|||
|Other cash payments relating to financing activities|||
|Sub-total of cash outflows from financing activities|190,359,596.70|183,312,022.63|
|Net cash flows from financing activities|-89,998,856.70|-183,312,022.63|
|IV. Effect of foreign exchange rate changes on cash and cash|||
|equivalents|||
|V. Net increase in cash and cash equivalents|747,016,484.48|133,119,240.32|
|Add: Opening balance of cash and cash equivalents|1,558,204,866.53|1,293,126,217.00|
|VI. Closing balance of cash and cash equivalents|2,305,221,351.01|1,426,245,457.32|

 Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Sept. 2014|Jan.-Sept. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of commodities and rendering of service|3,902,801,185.93|3,297,310,258.35|
|Tax refunds received||26,272,444.49|
|Other cash received relating to operating activities|29,041,956.63|17,751,046.44|
|Subtotal of cash inflows from operating activities|3,931,843,142.56|3,341,333,749.28|
|Cash paid for goods and services|1,736,877,561.10|1,475,159,756.56|
|Cash paid to and for employees|337,293,632.27|277,552,402.16|
|Various taxes paid|372,812,427.18|276,251,059.17|
|Other cash payment relating to operating activities|673,354,836.47|807,407,602.30|
|Subtotal of cash outflows from operating activities|3,120,338,457.02|2,836,370,820.19|

Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Net cash flows from operating activities|811,504,685.54|504,962,929.09|
|II. Cash flows from investing activities:|||
|Cash received from retraction of investments|3,049,900,000.00|3,655,470,698.80|
|Cash received from return on investments|51,659,368.70|6,945,530.00|
|Net cash received from disposal of fixed assets, intangible assets|||
||446,698.24|2,172,280.00|
|and other long-term assets|||
|Net cash received from disposal of subsidiaries or other business|||
||38,977.14||
|units|||
|Other cash received relating to investing activities|||
|Subtotal of cash inflows from investing activities|3,102,045,044.08|3,664,588,508.80|
|Cash paid to acquire fixed assets, intangible assets and other|||
||30,786,364.18|58,489,377.34|
|long-term assets|||
|Cash paid for investment|3,280,000,000.00|4,067,000,000.00|
|Net cash paid to acquire subsidiaries and other business units|||
|Other cash payments relating to investing activities|||
|Subtotal of cash outflows from investing activities|3,310,786,364.18|4,125,489,377.34|
|Net cash flows from investing activities|-208,741,320.10|-460,900,868.54|
|III. Cash Flows from Financing Activities:|||
|Cash received from capital contributions|||
|Cash received from borrowings|||
|Cash received from issuance of bonds|||
|Other cash received relating to financing activities|||
|Subtotal of cash inflows from financing activities|||
|Repayment of borrowings|||
|Cash paid for interest expenses and distribution of dividends or|||
||189,398,353.17|183,315,363.93|
|profit|||
|Other cash payments relating to financing activities|||
|Sub-total of cash outflows from financing activities|189,398,353.17|183,315,363.93|
|Net cash flows from financing activities|-189,398,353.17|-183,315,363.93|
|IV. Effect of foreign exchange rate changes on cash and cash|||
|equivalents|||
|V. Net increase in cash and cash equivalents|413,365,012.27|-139,253,303.38|
|Add: Opening balance of cash and cash equivalents|882,413,120.18|848,257,647.96|
|VI. Closing balance of cash and cash equivalents|1,295,778,132.45|709,004,344.58|

Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Report for the Third Quarter of 2014 of Wuxi Little Swan Company Limited Chief of the accounting organ: Zhong Fangliu
II. Audit report
Is this report audited?
□ Yes√ No
This report is not audited.
Wuxi Little Swan Company Limited Legal representative: Fang Hongbo 22 Oct. 2014