Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited Wuxi Little Swan Company Limited
Report for the First Quarter of 2014
April 2014
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management staff of Wuxi Little Swan Company Limited (hereinafter referred to as “the Company”) warrant that the information carried in 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.
||
|-|
|Mr. Fang Hongbo, company principal, Mr. Yin Bitong, General Manager,Mr. Zhang Zhaofeng, chief of the|
|accounting work, 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.|

All directors have attended the board session for reviewing this report.
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 First Quarter of 2014 of Wuxi Little Swan Company Limited Section II. Financial Highlights& Change of Shareholders
I. Main accounting data and financial indicators
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
|||||
|-|-|-|-|
||Jan.-Mar. 2014|Jan.-Mar. 2013|+/- (%)|
|Operating revenues (RMB Yuan)|2,576,160,088.43|2,359,241,990.64|9.19%|
|Net profit attributable to shareholders of|170,774,457.85|111,003,706.39||
||||53.85%|
|the Company (RMB Yuan)||||
|Net profit attributable to shareholders of||||
||151,478,381.44|97,158,049.17|55.91%|
|the Company after extraordinary gains and||||
|losses (RMB Yuan)||||
|Net cash flows from operating activities|271,964,312.53|277,826,039.48||
||||-2.11%|
|(RMB Yuan)||||
|Basic EPS (RMB Yuan/share)|0.27|0.18|50%|
|Diluted EPS (RMB Yuan/share)|0.27|0.18|50%|
|Weighted average ROE (%)|4.28%|2.97%|1.31%|
||31 Mar. 2014|31 Dec. 2013|+/- (%)|
|Total assets (RMB Yuan)|9,185,771,871.64|9,222,527,380.74|-0.4%|
|Net assets attributable to shareholders of|4,079,910,391.09|3,908,897,654.74||
||||4.37%|
|the Company (RMB Yuan)||||

Items and amounts of extraordinary gains and losses
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|1 Jan. 2014-31 Mar. 2014|Explanation|
|Gain/loss on the disposal of non-current assets (including the|||
||7,808.97||
|offset part of the asset impairment provisions)|||
|Government grants recognized in the current period, except for|||
|those acquired in the ordinary course of business or granted at|||
||3,223,476.09||
|certain quotas or amounts according to the government’s unified|||
|standards|||
|Gain/loss on entrusting others with investments or asset|||
||20,060,768.66||
|management|||
|Gain/loss on debt restructuring|129,996.52||
|Other gain and loss items that meet the definition of an|3,991,820.23||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|extraordinary gain/loss|||
|Less: Income tax effects|4,112,080.57||
|Minority interests effects (after tax)|4,005,713.49||
|Total|19,296,076.41|--|

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 at the period-end and shareholdings of top 10 shareholders Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of shareholders at the||||||||
||31,796|||||||
|period-end||||||||
|Shareholdings of top 10 shareholders||||||||
|||||||Pledged or||
||||Sharehol|||frozen shares||
||||||Number of|||
|||Nature of|ding|Number of|||Num|
|Name of shareholder|||||restricted|||
|||shareholder|percenta|shares held||Status of|ber of|
||||||shares held|||
||||ge (%)|||shares|share|
||||||||s|
|MIDEA GROUP CO., LTD.||Domesticnon-state-ownedcorporation|35.2%|222,661,571||||
|GAOLING FUND,L.P.||Overseascorporation|8.56%|54,151,586||||
|TITONI INVESTMENTS DEVELOPMENT LTD.||Overseascorporation|4.88%|30,851,714||||
|FINANCE BUREAU OF WUXI||State-ownedcorporation|3.49%|22,057,657||||
|BOCI SECURITIES LIMITED||Overseascorporation|3.35%|21,189,109||||
|GUOTAI JUNAN SECURITIES(HONGKONG)LIMITED||Overseascorporation|2.29%|14,477,631||||
|NATIONAL SOCIAL SECURITY FUND PORTFOLIO102||Other|1.9%|12,000,000||||
|ICBC－CHINA UNIVERSAL EQUILIBRIUMGROWTH STOCK SECURITIESINVESTMENT FUND||Other|1.32%|8,332,125||||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||||
|-|-|-|-|-|
|CHINA CONSTRUCTION BANK—PENGHUAADVANCED STOCK SECURITIES INVESTMENTFUND|Other|1.12%|7,093,148||
|NATIONAL SOCIAL SECURITY FUNDPORTFOLIO 108|Other|0.98%|6,180,101||
|Shareholdings of top 10 non-restricted shareholders|||||
||Number of non-restricted||Variety of shares||
|Name of shareholder|||||
||shares held||Variety|Number|
|MIDEA GROUP CO., LTD.|222,661,571||RMB ordinary||
|||||222,661,571|
||||shares||
|GAOLING FUND,L.P.|54,151,586||Domestically listed||
|||||54,151,586|
||||foreign shares||
|TITONI INVESTMENTS DEVELOPMENT LTD.|30,851,714||Domestically listed||
|||||30,851,714|
||||foreign shares||
|FINANCE BUREAU OF WUXI|22,057,657||RMB ordinary||
|||||22,057,657|
||||shares||
|BOCI SECURITIES LIMITED|21,189,109||Domestically listed||
|||||21,189,109|
||||foreign shares||
|GUOTAI JUNAN SECURITIES(HONGKONG)LIMITED|14,477,631||Domestically listed||
|||||14,477,631|
||||foreign shares||
|NATIONAL SOCIAL SECURITY FUND PORTFOLIO102|12,000,000||RMB ordinary||
|||||12,000,000|
||||shares||
|ICBC－CHINA UNIVERSAL EQUILIBRIUMGROWTH STOCK SECURITIESINVESTMENT FUND|8,332,125||||
||||RMB ordinary||
|||||8,332,125|
||||shares||
|CHINA CONSTRUCTION BANK—PENGHUAADVANCED STOCK SECURITIES INVESTMENTFUND|7,093,148||||
||||RMB ordinary||
|||||7,093,148|
||||shares||
|NATIONAL SOCIAL SECURITY FUNDPORTFOLIO 108|6,180,101||RMB ordinary||
|||||6,180,101|
||||shares||
|Explanation on associated relationship or persons acting|MIDEA GROUP CO., LTD. and TITONI INVESTMENTS||||
|in concert among the above-mentioned shareholders|DEVELOPMENT LTD. are parties acting in concert.||||

Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes√ No
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the reporting period, as well as the reasons for these changes
|||||||
|-|-|-|-|-|-|
|Statement item|31 Mar.2014/Jan.-Mar.2014 (RMB Tenthousand)|31 Dec.2013/Jan.-Mar.2013 (RMB Tenthousand)|+/- (RMB Tenthousand)|+/-%|Notes|
|Transactionalfinancial assets|309.09|1,501.67|-1,192.58|-79.42%|Affected by RMB depreciation, the fairvalue of forward exchange contractsdecreased.|
|Inventories|47,452.44|79,814.18|-32,361.75|-40.55%|Due to the production and sale cycle|
|Notes payable|58,142.61|38,567.31|19,575.30|50.76%|The banker’s acceptance bills issued bythe Company increased.|
|Accounts received inadvance|46,948.81|105,795.26|-58,846.45|-55.62%|Due to the sale cycle|
|Taxes and farespayable|31,746.36|19,920.38|11,825.98|59.37%|The sales and profit increased.|
|Financial expenses|-270.63|886.19|-1,156.82|-130.54%|The exchange loss decreased.|
|Gain on fair valuechanges|-1,192.58|391.95|-1,584.53|-404.27%|Affected by exchange rate fluctuations,the gain on the fair value of forwardexchange contracts decreased.|
|Investment gain|2,298.71|1,640.62|658.10|40.11%|The investment in bank wealthmanagement products and theirearning rates both increased,resulting in more gain.|
|Non-operatingexpense|140.86|325.44|-184.58|-56.72%|The loss on disposal of wasted fixedassets decreased.|
|Total profit|21,929.55|14,165.12|7,764.43|54.81%|The sales and the gross profit rate bothincreased.|
|Income tax expenses|3,160.22|2,144.73|1,015.49|47.35%|Total profit increased.|
|Net profit|18,769.33|12,020.39|6,748.94|56.15%|The sales and the gross profit rate bothincreased.|
|Minority interests|1,691.89|920.02|771.87|83.90%|Subsidiary Hefei Midea WashingMachine Co., Ltd. recorded increased net|

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
|||||||
|-|-|-|-|-|-|
||||||profit.|
|Othercomprehensiveincomes|23.83|-3.07|26.89|877.03%|Due to exchange rate fluctuations, theforeign-currency statement translationdifference of the Singapore subsidiarychanged.|

II. Progress of significant events and analysis& explanations on their influence and solutions Naught
III. Commitments made by the Company or any shareholder with a shareholding over5% in the reporting period or such commitments made in previous period and carried down into the reporting period
|||||||
|-|-|-|-|-|-|
||||Date of|Term of||
||Commitmen||||Executio|
|Commitment||Contents of commitment|commitme|commitme||
||t maker||||n|
||||nt|nt||
|||Where the controlling shareholder Midea Group Co.,||||
|||Ltd. plans to sell the Company’s shares released from||||
|||trading moratorium held by it via the bid trading system|||In the|
|||of the Shenzhen Stock Exchange, and Midea Group|||process|
|Commitment on share|Controlling||28 Feb.|||
|||decreases over 5% shares within six months since the||Long-term|of|
|reform|shareholder||2008|||
|||first reduction of holdings, Midea Group will disclose|||implemen|
|||the suggestive announcement on share selling through|||tation|
|||the Company two trading days before its first reduction||||
|||of holdings.||||
|Commitment made in an||||||
|acquisition report or a||||||
|report on equity changes||||||
|||1. As for the commitment of avoiding horizontal||||
|||competition made by Midea Group and the actual||||
|||controller, Midea Group and Mr. He Xiangjian (the||||
|||actual controller) has promised that, for the period after||||
||Controlling|the said transaction when the Company’s controlling|||In the|
||shareholder|shareholder and actual controller remain unchanged,|||process|
|Commitment made in|||1 Dec.|||
||and actual|Midea Group, Mr. He Xiangjian and other subsidiary||Long-term|of|
|asset reorganization|||2010|||
||controller|companies under their control excluding the Company|||implemen|
|||and the Company’s subordinate companies will not|||tation|
|||increase business or establish new subsidiary||||
|||companies engaged in business which is the same with||||
|||or similar to the Company’s main business or forms||||
|||substantial horizontal competition with the Company. If||||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||||
|-|-|-|-|-|
||they act against the commitment above, profits thus||||
||generated will be attributable to the Company.||||
||2. As for the commitment made by Midea Group and||||
||the actual controller concerning regulating related-party||||
||transactions, Midea Group and Mr. He Xiangjian (the||||
||actual controller) have promised that when there are||||
||inevitable related-party transactions or such transaction||||
|Controlling|incurred with rational reasons after the completion of|||In the|
|shareholder|the transaction, they will follow the fair, reasonable and|||process|
|||1 Dec.|||
|and actual|market principles in formulating and signing relevant||Long-term|of|
|||2010|||
|controller|agreements on such related-party transactions and|||implemen|
||ensure that no harm will be done to interests of the|||tation|
||Company and other shareholders. Where Midea Group||||
||and Mr. He Xiangjian act against the promise above||||
||and damage interests of the Company and other||||
||shareholders, they will assume liabilities for||||
||compensation according to relevant provisions.||||
|||||In the|
||3. As for the commitment made by Midea Group on||||
|||||process|
|Controlling|ensuring independence, Midea Group has promised to|1 Dec.|||
||||Long-term|of|
|shareholder|protect Little Swan’s independence in terms of assets,|2010|||
|||||implemen|
||staff, finance, organization and business.||||
|||||tation|
||4. As for the commitment made by Midea Group on the||||
||related-party deposits and borrowings with Hefei Midea||||
||Washing Machine Co., Ltd. (formerly known as “Hefei||||
||Royalstar Washing Equipment Manufacturing Co.,|||In the|
||Ltd.”), up to 8 Apr. 2010, the Financial Settlement|||process|
|Controlling||1 Dec.|||
||Center of Midea Group had settled all internal deposits||Long-term|of|
|shareholder||2010|||
||and borrowings with Hefei Midea Washing Machine;|||implemen|
||and Midea Group has promised that there will be no|||tation|
||more deposits, borrowings or other funds flows||||
||incurred between the Financial Settlement Center and||||
||Hefei Midea Washing Machine.||||
||5. The commitment made 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 Hefei Midea Washing Machine|||In the|
||assessed and sold to the Company are of no ownership|||process|
|Controlling||1 Dec.|||
||certificates—the warehouse for half-finished products||Long-term|of|
|shareholder||2010|||
||(176 square meters) and the workshop for injection|||implemen|
||molding (834 square meters), both located in the old|||tation|
||factory of Hefei Midea Washing Machine, Hewa Road,||||
||Hefei. Midea Group has promised that if loss occurs||||
||due to the said two buildings without ownership||||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||||
|-|-|-|-|-|
||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 made 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 Hefei Midea||||
||Washing Machine uses the “Midea” trademark in a||||
||proper manner. Hefei Midea Washing Machine will be||||
||allowed to use the “Midea” trademark with a trademark||||
||||(2)||
||use fee not more than that paid by Midea Group and its||||
||||Concernin||
||subsidiaries, and upon negotiation and signing of the||||
||||g the||
||“Agreement for Trademark Use”. The related-party||||
||||“Royalstar||
||transactions incurred due to the said use of the “Midea”||||
||||”||
||trademark will be submitted to the decision-making||||
||||trademark||
||organ of the Company for approval according to the||||
||||was||
||stipulated procedure. As such, interests of the Company|||In the|
||||expired on||
||and its minority shareholders will be safeguarded. (2)|||process|
|Controlling||1 Dec.|31 Mar.||
||Concerning the “Royalstar” trademark: Midea Group|||of|
|shareholder||2010|2013 and||
||has signed the “Contract for Trademark Use” with|||implemen|
||||will not be||
||Royalstar Group and obtained the ordinary use rights of|||tation|
||||renewed,||
||the “Royalstar” (and “荣事达”) trademark. As the||||
||||others are||
||transferor in the transfer transaction of equity interests||||
||||in the||
||of Royalstar Washing Equipment, Midea Group has||||
||||process of||
||promised that within the scope as agreed in the||||
||||long term||
||“Contract for Trademark Use”, if any dispute arises||||
||||implement||
||between Royalstar Washing Equipment and Royalstar||||
||||ation||
||Group over the former’s execution of the “Contract for||||
||Trademark Use”, Little Swan will not be involved. If||||
||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 made by Midea Group on social||||
||security payment and tax risks is detailed as follows:||||
|||||In the|
||Midea Group has promised that upon the completion of||||
|||||process|
|Controlling|the said equity transfer deal, if Hefei Midea Washing|1 Dec.|||
||||Long-term|of|
|shareholder|Machine Co., Ltd. (formerly known as “Hefei Royalstar|2010|||
|||||implemen|
||Washing Equipment Manufacturing Co., Ltd.”) is||||
|||||tation|
||obliged to take on any responsibility or pay relevant||||
||fares as required by relevant government authorities due||||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|||to its social security payment before the said deal,Midea Group is willing to pay relevant fares for HefeiMidea Washing Machine to relevant governmentauthorities in a timely manner and assume any otherliability. If any loss thus occurs to Hefei Midea WashingMachine or Little Swan, Midea Group is willing toassume relevant responsibilities for compensation.Upon the completion of the said equity transfer deal, ifincome tax evasion or any other tax risk is found inHefei Midea Washing Machine, Midea Group is willingto assume relevant legal responsibilities and risks andpay relevant taxes in a timely manner to relevantgovernment authorities; and if any loss thus occurs toLittle Swan, Midea Group will assume thecorresponding responsibility for compensation.|
|Commitment made in IPO|||
|or re-financing|||
|Commitment made to|||
|minority shareholders of|||
|the Company|||
|Executed in time or not|Yes||
|Specific reason for failing|||
|to fulfill the commitment|||
||Inapplicable||
|and the plan for the next|||
|step ( If any)|||

IV. Predict the operating results of Jan.-Jun. 2014
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□ Applicable√ Inapplicable
V. Securities investments
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Sharehold||Sharehold||Gain/lossforreportingperiod(RMBYuan)|||
||||Initial|Number||Number||Closing||||
||||||ing||ing|||||
||||investmen|of shares||of shares||book||||
|Variety of|Code of|Name of|||percentag||percentag|||Accounti|Source of|
||||t cost|held at||held at||value||||
|securities|securities|securities|||e at||e at|||ng title|securities|
||||(RMB|period-be||period-en||(RMB||||
||||||period-be||period-en|||||
||||Yuan)|gin||d||Yuan)||||
||||||gin||d|||||
|Total|||0.00|0|--|0|--|0.00|0.00|--|--|
|Disclosure date of the board||||||||||||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||
|-|
|announcement on securities|
|investment approval|
|Disclosure date of the general|
|meeting announcement on|
|securities investment approval|
|(if any)|

Shareholdings in other listed companies
□ Applicable√ Inapplicable
VI. Investments in derivatives
Unit: RMB Ten thousand yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Proportio||
|||||||||||n of the||
||||Type of|||||||closing|Actual|
|||Related-p||||||Impairme||||
|||||Initial|||Opening||Closing|investmen||
||||derivativ||Beginnin|Ending|||||gain/loss|
|Operator|Relation|arty||||||nt||t amount||
||||e|investment|||investmen||investmen||in|
|||transactio|||g date|date||provision||in the||
||||investme|amount|||t amount||t amount||reporting|
|||n or not||||||(if any)||Company||
||||nt||||||||period|
|||||||||||’s closing||
|||||||||||net assets||
|||||||||||(%)||
||||Forward|||||||||
||||||Jan. 1|Jan. 7||||||
|Bank|No|No|exchang|48,371.34|||48,371.34||35,916.08|9.2%|-898.06|
||||||2014|2015||||||
||||e|||||||||
||||contract|||||||||
|Total||||48,371.34|--|--|48,371.34||35,916.08|9.2%|-898.06|
|Capital source for derivative investment||||All self-owned funds||||||||
|Lawsuits ( if applicable )||||Inapplicable||||||||
|Disclosure date of the board||||||||||||
|announcement approving the wealth||||||||||||
|||||Mar. 7 2014||||||||
|management entrustment (if any)||||||||||||
|Disclosure date of the general meeting||||||||||||
|announcement approving the wealth||||||||||||
|||||Apr. 17 2014||||||||
|management entrustment (if any)||||||||||||
|Analysis on risks and control measures of||||The Company has formulated the Management Methods for Futures Hedging Business||||||||
|derivative products held in the reporting||||and the Management Methods for Exchange Funds upon review to thoroughly assess||||||||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
|||
|-|-|
|period (including but not limited to|and control derivative investment risks, which are detailed as follows:|
|market risk, liquidity risk, credit risk,|1. Market risk|
|operation risk, law risk, etc.)||
||The forward foreign exchange settlement business: the Company will according to the|
||cost of the product (constituent basic was RMB) and market risk to ensure whether sign|
||the forward foreign exchange settlement agreement or not, signing the contract was|
||equivalent to lock the exchanged costs and profits. through forward foreign exchange|
||settlement business will effectively resist market volatility risk and ensure reasonable|
||and stable level of profit of the Company.|
||2. Liquidity risk|
||This foreign exchange funds business was simple; transaction time limit was operated|
||according to the Company’s budget of future account payable and receivable and had no|
||impact on the Company's liquidity.|
||3. The performance risk|
||The corresponding relevant import and export business of the Company’s foreign|
||exchange funds business had no speculative operations, nor performance risk.|
|Changes of market prices or fair values in||
|the reporting period of the invested||
|derivatives. And the analysis on the fair|The Company adopts public quotations in the futures market or forward foreign|
|value of the derivatives should include the||
||exchange quotations declared by the People’s Bank of China in its analysis on fair|
|specific use methods and the relevant||
||values of derivative products.|
|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||
||Independent directors of the Company believe that: A. The Company has formulated|
||derivative investment rules such as the Management Methods for Futures Hedging|
||Business and the Management Methods for Exchange Funds to help it effectively|
||control risks involved; B. During the reporting period, the Company performed the|
|Specific opinion from independent||
||relevant approval procedure before it conducted derivative investments in strict|
|directors on the Company’s derivatives||
||compliance with the lines and ways approved by the Shareholders’ General Meeting;|
|investment and risk control||
||And C. 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.|

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited VII. Researches, visits and interviews received in the reporting period
|||||||
|-|-|-|-|-|-|
||||||Main discussion and|
|Time of reception|Place of reception|Way of reception|Visitor type|Visitor|materials provided by the|
||||||Company|
|||||Changjiang||
||Conference Room|||Securities,|Overall operation of the|
|Jan. 14 2014||Field research|Institution|||
||of the Company|||Hongyuan|Company|
|||||Securities||
|||||Baring Asset||
||Conference Room||||Overall operation of the|
|Jan. 15 2014||Field research|Institution|Management, First||
||of the Company||||Company|
|||||State Investments||
|||||Founder Securities,||
|||||Macro Vision||
|||||Investment,||
||Conference Room||||Overall operation of the|
|Jan. 16 2014||Field research|Institution|Matthews||
||of the Company||||Company|
|||||International||
|||||Capital||
|||||Management||
||Conference Room|||Industrial|Overall operation of the|
|Mar. 12 2014||Field research|Institution|||
||of the Company|||Securities|Company|
||Conference Room||||Overall operation of the|
|Mar. 26 2014||Field research|Institution|Cinda Securities||
||of the Company||||Company|

Report for the First 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|1,668,174,675.28|1,617,373,088.50|
|Settlement reserves|||
|Intra-group lendings|||
|Transactional financial assets|3,090,940.00|15,016,740.00|
|Notes receivable|2,353,623,960.99|2,449,770,225.41|
|Accounts receivable|949,532,381.03|777,744,132.32|
|Accounts paid in advance|118,165,028.12|140,841,924.06|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract|||
|reserves|||
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|24,792,645.11|26,163,524.13|
|Financial assets purchased under|||
|agreements to resell|||
|Inventories|474,524,361.28|798,141,838.58|
|Non-current assets due within 1 year|||
|Other current assets|1,982,328,232.56|1,791,288,539.62|
|Total current assets|7,574,232,224.37|7,616,340,012.62|
|Non-current assets:|||
|Loans by mandate and advances|||
|granted|||
|Available-for-sale financial assets|270,480.00|312,816.00|
|Held-to-maturity investments|||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Long-term accounts receivable|||
|Long-term equity investment|4,560,311.21|4,579,148.88|
|Investing property|9,214,185.97|9,466,777.10|
|Fixed assets|1,165,403,863.86|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|218,000,617.69|219,445,532.87|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|5,185,794.33|7,147,835.74|
|Deferred income tax assets|206,720,120.59|170,990,970.67|
|Other non-current assets|||
|Total of non-current assets|1,611,539,647.27|1,606,187,368.12|
|Total assets|9,185,771,871.64|9,222,527,380.74|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from Central Bank|||
|Customer bank deposits and due to|||
|banks and other financial institutions|||
|Intra-group borrowings|||
|Transactional financial liabilities|||
|Notes payable|581,426,083.92|385,673,110.34|
|Accounts payable|2,871,729,647.48|2,768,046,095.46|
|Accounts received in advance|469,488,073.63|1,057,952,597.52|
|Financial assets sold for repurchase|||
|Handling charges and commissions|||
|payable|||
|Employee’s compensation payable|151,074,583.82|207,323,619.92|
|Tax payable|317,463,648.66|199,203,856.56|
|Interest payable|||
|Dividend payable|3,213,112.33|3,740,152.33|
|Other accounts payable|53,731,239.81|50,021,093.66|

Report for the First 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|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|4,448,126,389.65|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|11,119,498.30|11,310,523.59|
|Deferred income tax liabilities|1,648,222.52|2,284,388.40|
|Other non-current liabilities|542,800.00|568,600.00|
|Total non-current liabilities|15,384,478.12|16,237,469.29|
|Total liabilities|4,463,510,867.77|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|1,129,395,319.31|1,129,431,304.91|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|290,958,368.49|290,958,368.49|
|Provisions for general risks|||
|Retained profits|2,030,354,388.97|1,859,579,931.10|
|Foreign exchange difference|-3,285,449.68|-3,559,713.76|
|Total equity attributable to owners of|||
||4,079,910,391.09|3,908,897,654.74|
|the Company|||
|Minority interests|642,350,612.78|625,431,730.92|
|Total owners’ (or shareholders’) equity|4,722,261,003.87|4,534,329,385.66|
|Total liabilities and owners’ (or|||
||9,185,771,871.64|9,222,527,380.74|
|shareholders’) equity|||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
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|760,225,483.95|910,325,739.17|
|Transactional financial assets|1,879,130.00|8,727,740.00|
|Notes receivable|1,724,744,735.04|1,541,082,811.22|
|Accounts receivable|508,299,591.70|731,446,199.69|
|Accounts paid in advance|68,676,012.45|56,620,106.39|
|Interest receivable|||
|Dividend receivable|||
|Other accounts receivable|18,004,029.46|18,752,200.83|
|Inventories|309,765,239.74|543,401,541.27|
|Non-current assets due within 1 year|||
|Other current assets|1,369,104,473.90|939,664,538.10|
|Total current assets|4,760,698,696.24|4,750,020,876.67|
|Non-current assets:|||
|Available-for-sale financial assets|270,480.00|312,816.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investment|1,401,704,802.78|1,601,723,640.45|
|Investing property|9,214,185.97|9,466,777.10|
|Fixed assets|551,784,216.23|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|100,367,182.92|101,069,007.28|
|R&D expense|||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Goodwill|||
|Long-term deferred expenses|4,408,893.48|6,781,326.79|
|Deferred income tax assets|145,386,058.84|119,667,809.75|
|Other non-current assets|||
|Total of non-current assets|2,215,320,093.84|2,407,945,500.61|
|Total assets|6,976,018,790.08|7,157,966,377.28|
|Current liabilities:|||
|Short-term borrowings|||
|Transactional financial liabilities|||
|Notes payable|345,881,550.92|273,399,760.34|
|Accounts payable|2,000,138,881.86|1,766,585,288.21|
|Accounts received in advance|290,231,147.34|724,228,146.67|
|Employee’s compensation payable|81,651,511.46|118,237,120.06|
|Tax payable|240,877,542.25|156,722,107.53|
|Interest payable|||
|Dividend payable|3,213,112.33|3,740,152.33|
|Other accounts payable|14,562,986.46|208,682,591.14|
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|2,976,556,732.62|3,251,595,166.28|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Estimated liabilities|||
|Deferred income tax liabilities|1,465,977.00|1,341,038.40|
|Other non-current liabilities|||
|Total non-current liabilities|1,465,977.00|1,341,038.40|
|Total liabilities|2,978,022,709.62|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|1,291,447,374.54|1,291,483,360.14|

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Less: Treasury stock|||
|Specific reserves|||
|Surplus reserves|278,308,224.59|278,308,224.59|
|Provisions for general risks|||
|Retained profits|1,795,752,717.33|1,702,750,823.87|
|Foreign exchange difference|||
|Total owners’ (or shareholders’) equity|3,997,996,080.46|3,905,030,172.60|
|Total liabilities and owners’ (or|||
||6,976,018,790.08|7,157,966,377.28|
|shareholders’) equity|||

Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
3. Consolidated income statement
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Mar. 2014|Jan.-Mar. 2013|
|I. Operating revenues|2,576,160,088.43|2,359,241,990.64|
|Including: Sales income|2,576,160,088.43|2,359,241,990.64|
|Interest income|||
|Premium income|||
|Handling charge and|||
|commission income|||
|II. Total operating cost|2,373,449,895.21|2,240,011,104.63|
|Including: Cost of sales|1,863,580,470.12|1,782,597,479.96|
|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|18,158,736.21|17,327,435.34|

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Selling and distribution expenses|384,822,055.79|328,751,508.21|
|Administrative expenses|99,867,200.75|94,490,588.19|
|Financial expenses|-2,706,279.81|8,861,929.20|
|Asset impairment loss|9,727,712.15|7,982,163.73|
|Add: Gain/(loss) from change in fair|||
||-11,925,800.00|3,919,510.00|
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||22,987,140.99|16,406,187.35|
|means loss)|||
|Including: share of profits in associates|||
|and joint ventures|||
|Foreign exchange gains (“-” means|||
|loss)|||
|III. Business profit (“-” means loss)|213,771,534.21|139,556,583.36|
|Add: non-operating income|6,932,588.41|5,349,057.97|
|Less: non-operating expense|1,408,605.94|3,254,442.84|
|Including: loss from|||
|non-current asset disposal|||
|IV. Total profit (“-” means loss)|219,295,516.68|141,651,198.49|
|Less: Income tax expense|31,602,176.95|21,447,270.34|
|V. Net profit (“-” means loss)|187,693,339.73|120,203,928.15|
|Including: Net profit achieved by|||
|combined parties before the|||
|combinations|||
|Attributable to owners of the|||
||170,774,457.85|111,003,706.39|
|Company|||
|Minority shareholders’ income|16,918,881.88|9,200,221.76|
|VI. Earnings per share|--|--|
|(I) Basic earnings per share|0.27|0.18|
|(II) Diluted earnings per share|0.27|0.18|
|Ⅶ. Other comprehensive incomes|238,278.48|-30,665.17|
|Ⅷ. Total comprehensive incomes|187,931,618.21|120,173,262.98|
|Attributable to owners of the|||
||171,012,736.33|110,973,041.22|
|Company|||
|Attributable to minority|||
||16,918,881.88|9,200,221.76|
|shareholders|||

Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited Chief of the accounting organ: Zhong Fangliu
4. Income statement of the Company
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Mar. 2014|Jan.-Mar. 2013|
|I. Operating revenues|1,894,175,621.32|1,730,234,964.83|
|Less: operating costs|1,390,057,329.94|1,315,047,547.80|
|Business taxes and surcharges|13,547,483.63|12,169,504.53|
|Distribution expenses|292,227,018.27|255,824,327.32|
|Administrative expenses|77,795,813.89|61,089,128.95|
|Financial costs|808,182.35|6,476,360.62|
|Impairment loss|6,171,520.43|7,620,160.27|
|Add: gain/(loss) from change in fair|||
||-6,848,610.00|2,241,900.00|
|value (“-” means loss)|||
|Gain/(loss) from investment (“-”|||
||1,511,386.24|8,527,122.76|
|means loss)|||
|Including: income form investment|||
|on associates and joint ventures|||
|II. Business profit (“-” means loss)|108,231,049.06|82,776,958.10|
|Add: non-business income|3,999,006.92|2,502,917.60|
|Less: non-business expense|2,816,063.68|2,821,645.74|
|Including: loss from non-current|||
|asset disposal|||
|III. Total profit (“-” means loss)|109,413,992.30|82,458,229.96|
|Less: income tax expense|16,412,098.85|12,359,561.70|
|IV. Net profit (“-” means loss)|93,001,893.45|70,098,668.26|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|0.15|0.11|
|(II) Diluted earnings per share|0.15|0.11|
|VI. Other comprehensive income|-35,985.60|51,979.20|
|VII. Total comprehensive income|92,965,907.85|70,150,647.46|

 Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng
Chief of the accounting organ: Zhong Fangliu
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited 5. Consolidated cash flow statement
Prepared by Wuxi Little Swan Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Mar. 2014|Jan.-Mar. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,646,521,888.52|1,900,494,571.74|
|commodities and rendering of service|||
|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|1,379,269.70|8,641,019.92|
|Other cash received relating to|||
||8,523,758.56|8,476,911.76|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,656,424,916.78|1,917,612,503.42|
|activities|||
|Cash paid for goods and services|723,257,042.69|1,112,603,553.86|
|Net increase of customer lendings|||
|and advances|||
|Net increase of funds deposited in the|||
|central bank and amount due from|||
|banks|||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|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|211,254,229.32|145,551,958.80|
|Various taxes paid|148,479,258.31|62,526,204.16|
|Other cash payment relating to|||
||301,470,073.93|319,104,747.12|
|operating activities|||
|Subtotal of cash outflows from|||
||1,384,460,604.25|1,639,786,463.94|
|operating activities|||
|Net cash flows from operating activities|271,964,312.53|277,826,039.48|
|II. Cash flows from investing activities:|||
|Cash received from withdrawal of|||
||2,298,000,000.00|2,420,499,865.02|
|investments|||
|Cash received from return on|||
||23,005,978.66|415,750.00|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|72,000.00|4,750,805.93|
|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|||
||2,321,077,978.66|2,425,666,420.95|
|investing activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|22,942,809.96|17,033,366.40|
|assets|||
|Cash paid for investment|2,489,370,000.00|2,661,080,000.00|
|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|||
||2,512,312,809.96|2,678,113,366.40|
|investing activities|||
|Net cash flows from investing activities|-191,234,831.30|-252,446,945.45|

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|III. Cash flows from financing|||
|Activities:|||
|Cash received from capital|||
|contributions|||
|Including: Cash received from|||
|minority shareholder investments by|||
|subsidiaries|||
|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 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|||
|Net cash flows from financing activities|||
|IV. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||80,729,481.23|25,379,094.03|
|equivalents|||
|Add: Opening balance of cash and|||
||1,543,513,880.63|1,293,126,217.00|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||1,624,243,361.86|1,318,505,311.03|
|equivalents|||

Legal representative: Fang Hongbo Chief of the accounting work: Zhang Zhaofeng Chief of the accounting organ: Zhong Fangliu
6. Cash flow statement of the Company
Prepared by Wuxi Little Swan Company Limited
Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited Unit: RMB Yuan
||||
|-|-|-|
|Item|Jan.-Mar. 2014|Jan.-Mar. 2013|
|I. Cash flows from operating activities:|||
|Cash received from sale of|||
||1,387,187,542.05|1,147,973,657.85|
|commodities and rendering of service|||
|Tax refunds received||4,250,944.97|
|Other cash received relating to|||
||6,135,064.74|5,578,616.43|
|operating activities|||
|Subtotal of cash inflows from operating|||
||1,393,322,606.79|1,157,803,219.25|
|activities|||
|Cash paid for goods and services|613,008,773.48|701,454,690.27|
|Cash paid to and for employees|139,756,464.02|99,816,582.05|
|Various taxes paid|113,320,106.80|43,800,824.48|
|Other cash payment relating to|||
||229,543,047.77|154,932,694.85|
|operating activities|||
|Subtotal of cash outflows from|||
||1,095,628,392.07|1,000,004,791.65|
|operating activities|||
|Net cash flows from operating activities|297,694,214.72|157,798,427.60|
|II. Cash flows from investing activities:|||
|Cash received from retraction of|||
||1,000,000,000.00|877,248,800.44|
|investments|||
|Cash received from return on|||
||10,043,278.39|247,750.00|
|investments|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other||4,747,079.00|
|long-term assets|||
|Net cash received from disposal of|||
||38,977.14||
|subsidiaries or other business units|||
|Other cash received relating to|||
|investing activities|||
|Subtotal of cash inflows from|||
||1,010,082,255.53|882,243,629.44|
|investing activities|||
|Cash paid to acquire fixed assets,|||
|intangible assets and other long-term|15,764,370.14|13,390,812.17|
|assets|||
|Cash paid for investment|1,430,000,000.00|1,297,000,000.00|
|Net cash paid to acquire subsidiaries|||
|and other business units|||

Report for the First Quarter of 2014 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Other cash payments relating to|||
|investing activities|||
|Subtotal of cash outflows from|||
||1,445,764,370.14|1,310,390,812.17|
|investing activities|||
|Net cash flows from investing activities|-435,682,114.61|-428,147,182.73|
|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 profit|||
|Other cash payments relating to|||
|financing activities|||
|Sub-total of cash outflows from|||
|financing activities|||
|Net cash flows from financing activities|||
|IV. Effect of foreign exchange rate|||
|changes on cash and cash equivalents|||
|V. Net increase in cash and cash|||
||-137,987,899.89|-270,348,755.13|
|equivalents|||
|Add: Opening balance of cash and|||
||882,413,120.18|848,257,647.96|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||744,425,220.29|577,908,892.83|
|equivalents|||

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