The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited Wuxi Little Swan Company Limited
The Report for the First Quarter of 2016
April 2016
The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited Section I Important Statements
The Board of Directors, Supervisory Committee, directors, supervisors and senior management of Wuxi Little Swan Company Limited (hereinafter referred to as the “Company”) hereby guarantee that the information presented in this Report is factual, accurate and complete, and shall be jointly and severally liable for any false information, misleading statements or material omissions carried in this Report. Mr. Fang Hongbo, Board Chairman, Mr. Sun Yunan, CFO, and Mr. Xu Yunwei, chief of the accounting organ (chief of accounting), hereby confirm that the financial report carried in this Report is factual, accurate and complete.
All directors attended the board meeting for the review of this Report.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited Section II Financial Results and Changes in Shareholders
I Financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting data due to changes of accounting policies or correction of accounting errors
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2016|January-March 2015|+/-%|
|Operating revenues (RMB)|4,239,779,074.70|3,293,972,545.08|28.71%|
|Net profit attributable to shareholders of the|317,052,211.46|242,314,468.72||
||||30.84%|
|Company (RMB)||||
|Net profit attributable to shareholders of the||||
||311,794,446.12|245,540,671.19|26.98%|
|Company after exceptional profit and loss (RMB)||||
|Net operating cash flow (RMB)|573,548,265.90|394,282,134.54|45.47%|
|Basic earnings per share (RMB/share)|0.50|0.38|31.58%|
|Diluted earnings per share (RMB/share)|0.50|0.38|31.58%|
|Weighted average return on equity (%)|6.00%|5.33%|0.67%|
||31 March 2016|31 December 2015|+/-%|
|Total assets (RMB)|14,927,470,103.94|14,327,655,366.60|4.19%|
|Net assets attributable to shareholders of the|5,460,647,864.77|5,124,866,173.14||
||||6.55%|
|Company (RMB)||||

Note: In the fourth quarter of 2015, “to make financial investments with theCompany’s own funds” was added to the business scope of the Company. As such, profit/loss on financial investments has been restated as recurrent profit/loss. In order to help investors better understand the business results of the Company, the “net profit attributable to shareholders of the Company after exceptional profit and loss” for January-March 2015 is restated in the above table on the same basis.
Exceptional profit and loss
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|Note|
|Profit/loss on disposal of non-current assets (including offset amount of|||
||99,572.65||
|asset impairment provisions)|||
|Government grants charged to the profit/loss for the Reporting Period|||
|(except for the government grants closely related to the business of the|||
||6,222,716.87||
|Company and given at a fixed quota or amount in accordance with the|||
|State’s uniform standards)|||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Non-operating income and expense other than the above|1,362,249.97||
|Less: Corporate income tax|1,152,680.92||
|Minority interests (after tax)|1,274,093.23||
|Total|5,257,765.34|--|

Explain the reasons if the Company classifies an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Profit and Loss, or classifies any exceptional profit/loss item mentioned in the said explanatory announcement as recurrent profit/loss
□ Applicable√ Not applicable
No such cases in the Reporting Period.
II Total number of shareholders at the period-end and shareholdings of top ten shareholders 1. Numbers of common shareholders and preference shareholders with resumed voting rights as well as shareholdings of top ten shareholders
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Total number of common|||Total number of preference shareholders with resumed|||||||
||20,826|||||||0||
|shareholders at the period-end|||voting rights at the period-end (if any)|||||||
|Shareholdings of top ten shareholders||||||||||
|||||||Number of|Pledged or frozen|||
|||||Shareholding||||||
||||||Number of|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||3.43%|21,694,456|||||
|FINANCE BUREAU OF WUXI||On behalf of the State||2.70%|17,054,071|||||
|NATIONAL SOCIAL SECURITYFUND PORTFOLIO 101||Domestic non-state-ownedcorporation||2.33%|14,727,290|||||
|GREENWOODS CHINA ALPHAMASTER FUND||Foreign corporation||2.17%|13,742,333|||||
|NATIONAL SOCIAL SECURITYFUND PORTFOLIO 108||Domestic non-state-ownedcorporation||1.98%|12,499,640|||||
|CENTRAL HUIJIN ASSETMANAGEMENT CO., LTD.||State-owned corporation||1.61%|10,156,300|||||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||||||
|-|-|-|-|-|-|-|
|NORGES BANK|Foreign corporation||0.64%|4,023,181|||
|CHINA RESOURCES SZITICTRUST CO., LTD.－JINGLINDIANJIN TRUST PLAN NO. 2 OFASSEMBLED FUNDS|Domestic non-state-ownedcorporation||0.56%|3,529,712|||
|Shareholdings of top ten non-restricted shareholders|||||||
|||Number of|||Variety of shares||
|Name of shareholder||non-restricted shares|||||
||||||Variety|Number|
|||held|||||
|MIDEA GROUP CO., LTD.||238,948,117|||RMB common shares|238,948,117|
|TITONI INVESTMENTS DEVELOPMENT LTD.||94,204,942|||Domestically listed||
|||||||94,204,942|
||||||foreign shares||
|GAOLING FUND, L.P.||21,694,456|||Domestically listed||
|||||||21,694,456|
||||||foreign shares||
|FINANCE BUREAU OF WUXI||17,054,071|||RMB common shares|17,054,071|
|NATIONAL SOCIAL SECURITY FUND PORTFOLIO 101||14,727,290|||RMB common shares|14,727,290|
|GREENWOODS CHINA ALPHA MASTER FUND||13,742,333|||Domestically listed||
|||||||13,742,333|
||||||foreign shares||
|NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108||12,499,640|||RMB common shares|12,499,640|
|CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD.||10,156,300|||RMB common shares|10,156,300|
|NORGES BANK||4,023,181|||Domestically listed||
|||||||4,023,181|
||||||foreign shares||
|CHINA RESOURCES SZITIC TRUST CO., LTD.－JINGLINDIANJIN TRUST PLAN NO. 2 OF ASSEMBLED FUNDS||3,529,712|||||
||||||RMB common shares|3,529,712|
|Related or acting-in-concert parties among the above||MIDEA GROUP CO., LTD. and TITONI INVESTMENTS|||||
|shareholders||DEVELOPMENT LTD. are parties acting in concert.|||||

Did any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conduct any promissory repo during the Reporting Period?
□ Yea√ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top ten of them
□ Applicable√ Not applicable
The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting Period, as well as reasons for such changes
Unit: RMB Ten Thousand Yuan
|||||||
|-|-|-|-|-|-|
|Statement item|31 March 2016|31 December 2015|+/-|+/-%|Note|
|Accounts receivable|123,441.91|89,607.55|33,834.36|38%|The sales volume increased.|
|Accounts paid inadvance|14,891.89|9,762.86|5,129.03|53%|Prepayments for materials increased.|
|Other receivables|601.94|920.82|-318.88|-35%|Suspense payments were taken back.|
|Notes payable|264,101.15|195,306.53|68,794.62|35%|Self-drawn banker’s acceptance billswere adopted more often in payment.|
|Accounts received inadvance|93,313.14|165,290.88|-71,977.74|-44%|Due to the sales cycle|
|Payroll payable|16,582.51|24,828.07|-8,245.56|-33%|The performance bonuses for the year2015 had been paid.|
|Other compositeincome|4,613.77|3,481.33|1,132.44|33%|The fair value of bank financial productsincreased.|
|Statement item|January-March 2016|January-March 2015|+/-|+/-%|Note|
|Business tax andsurtaxes|2,556.27|1,712.85|843.42|49%|The turnover tax increased due to theproduction and sales cycle.|
|Selling expenses|63,139.65|47,235.74|15,903.91|34%|The sales volume increased.|
|Financial costs|-3,069.37|-1,191.45|-1,877.92|-158%|The interest income on depositsincreased.|
|Profit on fair valuechanges|0.00|-2.83|2.83|-100%|Last year saw fair value changes inforward forex contracts while there wereno such contracts in the Current Period.|
|Non-operatingexpense|229.33|339.14|-109.81|-32%|Last year saw loss on disposal of wastefixed assets.|
|Total profit|42,711.98|32,645.19|10,066.79|31%|The sales volume increased.|
|Corporate income tax|6,607.35|4,928.85|1,678.50|34%|The total profit increased.|
|Net operating cashflow|57,354.83|39,428.21|17,926.62|45%|The cash received from sale of goodsand rendering of services increased asthe sales volume rose.|
|Net investment cashflow|-120,661.14|-71,505.40|-49,155.74|-69%|The cash paid for investment increasedas the Company increased its investmentin bank financial products.|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited II Progress of significant events and analysis& explanations on their influence and solutions□ Applicable√ Not applicable
III Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors, senior management or other related parties fulfilled in the Reporting Period or ongoing at the period-end
||||||||
|-|-|-|-|-|-|-|
|||||Date of|||
||Commitment|Type of|||Term of||
|Commitment|||Contents|commitment||Fulfillment|
||maker|commitment|||commitment||
|||||making|||
||||Where the controlling shareholder Midea Group plans to sell||||
||||the Company’s shares released from trading moratorium held||||
|||Commitmen|by it via the bid trading system of the Shenzhen Stock||||
|Commitments|||||||
||Controlling|t concerning|Exchange, and Midea Group decreases over 5% shares within||Long-standi||
|made in share||||2008.02.28||In execution|
||shareholder|shareholding|six months since the first reduction of holdings, Midea Group||ng||
|reform|||||||
|||reduction|will disclose an indicative public 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||||
|Commitments|||the recently main business of Little Swan or its controlled||||
|made in|||enterprises, as well as will neither engage in nor participate in||||
||Controlling|Commitmen|||||
|acquisition|||any competitive business the same as the recently main||||
||shareholder|t of avoiding||2010.12.01,|Long-standi||
|documents or|||business of Little Swan or its controlled enterprises through|||In execution|
||and actual|horizontal||2014.06.06|ng||
|shareholding|||controlling other economic entities, institutions, economic||||
||controller|competition|||||
|alteration|||organizations. If Little Swan and its controlled enterprises||||
|documents|||further developed its scope of the operation business on the||||
||||basis of the recently business, and if the actual controller Mr.||||
||||He Xiangjian, his immediate family, Midea Group and its||||
||||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||||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
|||||||
|-|-|-|-|-|-|
|||related to operation were belongs to Little Swan.||||
|||2. The commitment by Midea Group and the actual controller||||
|||on the specification of the related-party transaction. 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 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||||
||Commitmen|||||
|||relevant regulations to ensure the fairness of the price of the||||
|Controlling|t on the|||||
|||related-party transactions; ensure to execute the information||||
|shareholder|specification||2010.12.01,|Long-standi||
|||disclose obligation of related-party transactions according to|||In execution|
|and actual|of the||2014.06.06|ng||
|||the relevant regulations; ensure not to make advantage of the||||
|controller|related-party|||||
|||related-party transactions for illegally transferring the assets||||
||transaction|||||
|||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 and||||
|||the actual controller Mr. He Xiangjian has promised that, to||||
|Controlling|Commitmen|further ensure the independent operation of Little Swan, Mr.||||
|shareholder|t on|He Xiangjian, Midea Group and its controlled other|2010.12.01,|Long-standi||
||||||In execution|
|and actual|independenc|enterprises would maintain the mutual independent in terms|2014.06.06|ng||
|controller|e|of personnel, finance, assets, business and institutions with||||
|||Little Swan according to the relevant laws and regulations as||||
|||well as the normative documents.||||
|Controlling|Commitmen|4. As for the commitment on related-party deposits and|2010.12.01|Long-standi|In execution|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
|||||||
|-|-|-|-|-|-|
|shareholder|t on|borrowings, up to 8 April 2010, the Financial Settlement||ng||
||related-party|Center of Midea Group had settled all internal deposits and||||
||deposits and|borrowings with Hefei Midea Washing Machine Co., Ltd.;||||
||borrowings|and Midea Group has promised that there will be no more||||
|||deposits, borrowings or other funds flows incurred between||||
|||the Financial Settlement Center and Hefei Midea Washing||||
|||Machine 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 Hefei||||
||Commitmen|Midea Washing Machine Co., Ltd. assessed and sold to the||||
||t on housing|Company are of no ownership certificates—the warehouse||||
|Controlling|properties|for half-finished products (176 square meters) and the||Long-standi||
||||2010.12.01||In execution|
|shareholder|with no|workshop for injection molding (834 square meters), both||ng||
||ownership|located in the old factory on Hewa Road, Hefei. Midea Group||||
||certificates|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 Hefei Midea Washing Machine Co., Ltd. uses the||||
|||“Midea” trademark in a proper manner. Hefei Midea Washing||||
|||||The use||
|||Machine Co., Ltd. will be allowed to use the “Midea”||||
|||||right of the||
|||trademark with a trademark use fee not more than that paid||||
|||||“Royalstar”||
|||by Midea Group (the controlling shareholder of Midea||||
|||||trademark||
|||Group) and its subsidiaries (currently 3‰ of the annual sales||||
|||||detailed in||
|||income generated by products using the “Midea” trademark),||||
|||||(2) expired||
||Commitmen|and upon negotiation and signing of the “Agreement for||||
|Controlling||||on 31 March||
||t on|Trademark Use”. The related-party transactions incurred due|2010.12.01||In execution|
|shareholder||||2013 and||
||trademarks|to the said use of the “Midea” trademark will be submitted to||||
|||||was not||
|||the decision-making organ of the Company for approval||||
|||||renewed.||
|||according to the stipulated procedure. As such, interests of the||||
|||||And the||
|||Company and its minority shareholders will be safeguarded.||||
|||||other||
|||(2) Concerning the “Royalstar” trademark: Midea Group has||||
|||||commitment||
|||signed the “Contract for Trademark Use” with Hefei||||
|||||continues.||
|||Royalstar Group and obtained the ordinary use rights of the||||
|||“Royalstar” (both in Chinese and English) 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 Hefei Midea||||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||||||
|-|-|-|-|-|-|-|
||||Washing Machine Co., Ltd. and Hefei Royalstar Group over||||
||||the former’s execution of the “Contract for Trademark Use”,||||
||||Little Swan will not be involved. If Hefei Midea Washing||||
||||Machine Co., Ltd. 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 Hefei Midea Washing Machine Co.,||||
||||Ltd. 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 Hefei Midea Washing Machine Co., Ltd. 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 Hefei Midea Washing Machine Co., Ltd. to||||
|||Commitmen|||||
||||relevant government authorities in a timely manner and||||
|||t on social|||||
||Controlling||assume any other liability. If any loss thus occurs to Hefei||Long-standi||
|||security||2010.12.01||In execution|
||shareholder||Midea Washing Machine Co., Ltd. or Little Swan, Midea||ng||
|||payment and|||||
||||Group is willing to assume relevant responsibilities for||||
|||tax risks|||||
||||compensation. Upon the completion of the said equity||||
||||transfer deal, if income tax evasion or any other tax risk is||||
||||found in Hefei Midea Washing Machine Co., Ltd., 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.||||
||||8. The commitment by Midea Group on capital safety at the||||
||||finance companies of the Company: during the validity period||||
||||of the Financial Services Agreement, when Midea Group||||
|||Commitmen|||||
||Controlling||occurred emergency situation of payment difficulty at finance||||
|||t on capital||2015.03.18|Three years|In execution|
||shareholder||companies, it should adopt the effective measures such as||||
|||safety|||||
||||increase the capital fund of the finance companies according||||
||||to the actual needs of solving the payment difficulty to ensure||||
||||the capital safety of the Company.||||
|Commitments|||||||
|made in time|||||||
|of asset|||||||
|restructuring|||||||
|Commitments|||||||
|made in time|||||||
|of IPO or|||||||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
|||
|-|-|
|refinancing||
|Commitments||
|concerning||
|stock||
|ownership||
|incentive||
|Other||
|commitments||
|made to||
|minority||
|shareholders||
|Executed on||
||Yes|
|time||
|Specific||
|reasons for||
|failing to||
|fulfill||
||N/A|
|commitments||
|on time and||
|plans for next||
|step||

IV Operating result forecast for January-June 2016
Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-beginning to the end of the next reporting period according to prediction, as well as explanations on the reasons:
□Applicable√ Not applicable
V Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in derivative financial instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc.
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|Index to main inquiry information|
||One-on-one||Sheet of Investor Relations Activities on 22 January 2016 (No. 2016-01) on|
|2016.01.22||Institution||
||meeting||www.cninfo.com.cn|
||One-on-one||Sheet of Investor Relations Activities on 15 March 2016 (No. 2016-02) on|
|2016.03.15||Institution||
||meeting||www.cninfo.com.cn|

VIII Illegal provision of guarantees for external parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s funds by the controlling shareholder or its related parties for non-operating purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
The Report for the First Quarter of 2016 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
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|2,292,632,934.33|3,042,843,924.81|
|Settlement reserves|||
|Lendings to banks and other financial institutions|||
|Financial assets measured at fair value with fair value|||
|changes included in the profit and loss for the Reporting|||
|Period|||
|Derivative financial assets|||
|Notes receivable|1,995,023,518.00|2,205,189,379.10|
|Accounts receivable|1,234,419,143.92|896,075,475.63|
|Accounts paid in advance|148,918,902.49|97,628,578.17|
|Premiums receivable|||
|Reinsurance premiums receivable|||
|Receivable reinsurance contract reserves|||
|Interest receivable|24,734,172.24|22,932,602.74|
|Dividends receivable|||
|Other accounts receivable|6,019,382.18|9,208,180.08|
|Financial assets purchased under agreement to resell|||
|Inventories|537,014,206.48|745,412,967.52|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|7,095,769,317.17|5,733,188,604.23|
|Total current assets|13,334,531,576.81|12,752,479,712.28|
|Non-current assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|200,000.00|200,000.00|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|||
|Investment property|67,704,825.47|68,843,047.52|
|Fixed assets|1,011,578,889.10|1,019,528,291.60|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|196,212,090.32|197,521,625.03|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|3,604,078.32|4,238,244.38|
|Deferred income tax assets|290,303,246.89|251,881,220.89|
|Other non-current assets|23,335,397.03|32,963,224.90|
|Total non-current assets|1,592,938,527.13|1,575,175,654.32|
|Total assets|14,927,470,103.94|14,327,655,366.60|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from the Central Bank|||
|Money deposits accepted and inter-bank deposits|||
|Loans from banks and other financial institutions|||
|Financial liabilities measured at fair value with fair value|||
|changes included in the profit and loss for the Reporting|||
|Period|||
|Derivative financial liabilities|||
|Notes payable|2,641,011,480.49|1,953,065,274.06|
|Accounts payable|2,393,355,945.31|2,419,807,341.95|
|Accounts received in advance|933,131,410.57|1,652,908,781.44|
|Financial assets sold for repurchase|||
|Handling charges and commissions payable|||
|Payroll payable|165,825,125.93|248,280,716.92|
|Taxes and fares payable|368,638,351.07|325,108,227.91|
|Interest payable|||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Dividends payable|5,400,652.06|5,400,652.06|
|Other accounts payable|195,592,427.06|171,807,137.94|
|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 one year|||
|Other current liabilities|1,813,872,599.27|1,521,734,293.24|
|Total current liabilities|8,516,827,991.76|8,298,112,425.52|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term accounts payable|||
|Long-term payroll payable|28,439,299.25|28,439,299.25|
|Special payables|||
|Estimated liabilities|9,784,866.44|9,981,021.44|
|Deferred income|3,282,233.28|3,395,533.29|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|41,506,398.97|41,815,853.98|
|Total liabilities|8,558,334,390.73|8,339,928,279.50|
|Owners’ equity:|||
|Share capital|632,487,764.00|632,487,764.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserves|1,171,419,996.19|1,164,014,947.85|
|Less: Treasury stock|||
|Other composite income|46,137,716.48|34,813,284.64|
|Special reserves|||
|Surplus reserves|332,594,722.29|332,594,722.29|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Provisions for general risks|||
|Retained profit|3,278,007,665.81|2,960,955,454.36|
|Total equity attributable to owners of the Company|5,460,647,864.77|5,124,866,173.14|
|Minority interests|908,487,848.44|862,860,913.96|
|Total owners’ equity|6,369,135,713.21|5,987,727,087.10|
|Total liabilities and owners’ equity|14,927,470,103.94|14,327,655,366.60|

 Legal representative: Fang Hongbo Chief of the accounting work: Sun Yunan Chief of the accounting organ: Xu Yunwei
2. Balance sheet of the Company
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current Assets:|||
|Monetary funds|1,351,465,165.65|2,092,430,579.63|
|Financial assets measured at fair value with fair value|||
|changes included in the profit and loss for the Reporting|||
|Period|||
|Derivative financial assets|||
|Notes receivable|1,436,928,355.20|1,410,210,597.47|
|Accounts receivable|1,649,412,596.49|1,183,394,794.67|
|Accounts paid in advance|120,049,241.00|98,437,350.05|
|Interest receivable|23,031,679.11|18,918,219.18|
|Dividends receivable|||
|Other accounts receivable|35,426,768.41|6,351,010.17|
|Inventories|471,624,842.17|482,807,868.13|
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|3,928,932,394.78|3,178,113,808.28|
|Total current assets|9,016,871,042.81|8,470,664,227.58|
|Non-current assets:|||
|Available-for-sale financial assets|150,000.00|150,000.00|
|Held-to-maturity investments|||
|Long-term accounts receivable|||
|Long-term equity investments|1,306,323,041.57|1,306,323,041.57|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Investment property|7,775,954.83|8,040,536.02|
|Fixed assets|511,595,500.42|514,950,803.50|
|Construction in progress|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive living assets|||
|Oil-gas assets|||
|Intangible assets|94,608,892.89|95,281,467.96|
|R&D expense|||
|Goodwill|||
|Long-term deferred expenses|3,303,947.59|3,873,799.88|
|Deferred income tax assets|192,631,333.27|159,759,565.25|
|Other non-current assets|16,301,398.80|23,027,173.60|
|Total non-current assets|2,132,690,069.37|2,111,406,387.78|
|Total assets|11,149,561,112.18|10,582,070,615.36|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured at fair value with fair value|||
|changes included in the profit and loss for the Reporting|||
|Period|||
|Derivative financial liabilities|||
|Notes payable|1,886,946,504.88|1,519,749,295.73|
|Accounts payable|2,248,051,896.90|2,038,397,769.71|
|Accounts received in advance|624,781,491.16|1,060,643,231.20|
|Payroll payable|119,591,716.74|184,287,498.34|
|Taxes and fares payable|269,292,069.99|224,024,964.68|
|Interest payable|||
|Dividends payable|5,400,652.06|5,400,652.06|
|Other accounts payable|119,247,114.75|95,009,275.20|
|Liabilities held for sale|||
|Non-current liabilities due within one year|||
|Other current liabilities|1,161,675,916.25|944,905,437.98|
|Total current liabilities|6,434,987,362.73|6,072,418,124.90|
|Non-current liabilities:|||
|Long-term borrowings|||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Bonds payable|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payables|||
|Special payables|||
|Estimated liabilities|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|6,434,987,362.73|6,072,418,124.90|
|Owners’ equity:|||
|Share capital|632,487,764.00|632,487,764.00|
|Other equity instruments|||
|Of which: Preference shares|||
|Perpetual bonds|||
|Capital reserves|1,325,956,228.74|1,319,496,538.02|
|Less: Treasury stock|||
|Other composite income|22,121,764.14|13,608,826.40|
|Special reserves|||
|Surplus reserves|319,944,578.39|319,944,578.39|
|Retained profit|2,414,063,414.18|2,224,114,783.65|
|Total owners’ equity|4,714,573,749.45|4,509,652,490.46|
|Total liabilities and owners’ equity|11,149,561,112.18|10,582,070,615.36|

 3. Consolidated income statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating revenues|4,239,779,074.70|3,293,972,545.08|
|Including: Sales income|4,239,779,074.70|3,293,972,545.08|
|Interest income|||
|Premium income|||
|Handling charge and commission income|||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|2. Total operating costs|3,845,333,762.02|3,002,591,301.31|
|Including: Cost of sales|3,047,294,578.28|2,379,120,341.82|
|Interest expenses|||
|Handling charge and commission expenses|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance contract reserves|||
|Expenditure on policy dividends|||
|Reinsurance premium|||
|Business tax and surtaxes|25,562,733.25|17,128,541.02|
|Selling expenses|631,396,475.18|472,357,387.28|
|Administrative expenses|153,743,559.27|136,356,668.54|
|Financial costs|-30,693,728.10|-11,914,487.39|
|Asset impairment loss|18,030,144.14|9,542,850.04|
|Add: Profit/loss on fair value changes (“-” means loss)||-28,329.51|
|Profit/loss on investment (“-” means loss)|27,283,315.31|30,964,125.82|
|Including: Share of profit in associates and joint ventures||-75,272.28|
|Foreign exchange profit (“-” means loss)|||
|3. Operating profit (“-” means loss)|421,728,627.99|322,317,040.08|
|Add: Non-operating income|7,684,539.49|7,526,310.70|
|Including: Profit on disposal of non-current assets|99,572.65|199,564.26|
|Less: Non-operating expense|2,293,319.12|3,391,414.54|
|Including: Loss on disposal of non-current assets||1,612,104.98|
|4. Total profit (“-” means loss)|427,119,848.36|326,451,936.24|
|Less: Corporate income tax|66,073,486.70|49,288,455.12|
|5. Net profit (“-” means loss)|361,046,361.66|277,163,481.12|
|Net profit attributable to owners of the Company|317,052,211.46|242,314,468.72|
|Minority shareholders’ income|43,994,150.20|34,849,012.40|
|6. After-tax net amount of other composite income|12,551,896.48|115,185.74|
|After-tax net amount of other composite income|||
||11,324,431.84|115,185.74|
|attributable to owners of the Company|||
|6.1 Other composite income that will not be|||
|reclassified into profit and loss|||
|6.1.1 Changes in net liabilities or assets with a|||
|defined benefit plan upon re-measurement|||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|6.1.2 Enjoyable share in other comprehensive|||
|income in investees that cannot be reclassified into profit and|||
|loss under the equity method|||
|6.2 Other composite income that will be reclassified|||
||11,324,431.84|115,185.74|
|into profit and loss|||
|6.2.1 Enjoyable share in other composite income in|||
|investees that will be reclassified into profit and loss under|||
|the equity method|||
|6.2.2 Profit and loss on fair value changes of|||
||11,325,961.79||
|available-for-sale financial assets|||
|6.2.3 Profit and loss on reclassifying|||
|held-to-maturity investments into available-for-sale financial|||
|assets|||
|6.2.4 Effective hedging profit and loss on cash flow|||
|6.2.5 Foreign-currency financial statement|||
||-1,529.95|115,185.74|
|translation difference|||
|6.2.6 Other|||
|After-tax net amount of other composite income|||
||1,227,464.64||
|attributable to minority shareholders|||
|7. Total composite income|373,598,258.14|277,278,666.86|
|Attributable to owners of the Company|328,376,643.30|242,429,654.46|
|Attributable to minority shareholders|45,221,614.84|34,849,012.40|
|8. Earnings per share|||
|8.1 Basic earnings per share|0.50|0.38|
|8.2 Diluted earnings per share|0.50|0.38|

 Legal representative: Fang Hongbo Chief of the accounting work: Sun Yunan Chief of the accounting organ: Xu Yunwei
4. Income statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating revenues|3,090,853,563.00|2,470,525,958.78|
|Less: Operating costs|2,259,939,915.08|1,847,860,647.42|
|Business tax and surtaxes|19,651,012.59|11,711,081.29|
|Selling expenses|481,965,327.52|354,864,794.58|
|Administrative expenses|125,466,388.65|101,692,072.59|
|Financial costs|-25,425,553.41|-5,537,625.27|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Asset impairment loss|13,164,671.57|2,865,647.81|
|Add: profit/loss on fair value changes (“-” means loss)||-42,086.28|
|Profit/loss on investment (“-” means loss)|7,682,222.22|23,137,782.86|
|Including: Income form investment on associates and|||
|||-75,272.28|
|joint ventures|||
|2. Operating profit (“-” means loss)|223,774,023.21|180,165,036.94|
|Add: Non-operating income|2,209,315.20|3,253,117.90|
|Including: Profit on disposal of non-current assets|99,572.65|195,124.26|
|Less: Non-operating expense|1,374,415.91|2,655,612.33|
|Including: Loss on disposal of non-current assets||1,441,396.64|
|3. Total profit (“-” means loss)|224,608,922.50|180,762,542.51|
|Less: Corporate income tax|34,660,291.98|27,114,381.38|
|4. Net profit (“-” means loss)|189,948,630.52|153,648,161.13|
|5. After-tax net amount of other composite income|8,512,924.14||
|5.1 Other composite income that will not be reclassified|||
|into profit and loss|||
|5.1.1 Changes in net liabilities or assets with a defined|||
|benefit plan upon re-measurement|||
|5.1.2 Enjoyable share in other composite income in|||
|investees that cannot be reclassified into profit and loss under|||
|the equity method|||
|5.2 Other composite income that will be reclassified into|||
||8,512,924.14||
|profit and loss|||
|5.2.1 Enjoyable share in other composite income in|||
|investees that will be reclassified into profit and loss under|||
|the equity method|||
|5.2.2 Profit and loss on fair value changes of|||
||8,512,924.14||
|available-for-sale financial assets|||
|5.2.3 Profit and loss on reclassifying held-to-maturity|||
|investments into available-for-sale financial assets|||
|5.2.4 Effective hedging profit and loss on cash flow|||
|5.2.5 Foreign-currency financial statement translation|||
|difference|||
|5.2.6 Other|||
|6. Total composite income|198,461,554.66|153,648,161.13|
|7. Earnings per share|||
|7.1 Basic earnings per share|||
|7.2 Diluted earnings per share|||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited 5. Consolidated cash flow statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating cash flow:|||
|Cash received from sale of commodities and rendering of|||
||3,078,123,735.58|2,311,468,394.08|
|service|||
|Net increase in money deposits from customers and|||
|inter-bank placements|||
|Net increase in loans from the Central Bank|||
|Net increase in funds borrowed from other financial|||
|institutions|||
|Cash received from premium of original insurance|||
|contracts|||
|Net cash received from reinsurance business|||
|Net increase in deposits of policy holders and investment|||
|fund|||
|Net increase in disposal of financial assets measured at fair|||
|value with fair value changes included in the profit and loss|||
|for the Reporting Period|||
|Cash received from interest, handling charges and|||
|commissions|||
|Net increase in loans from banks and other financial|||
|institutions|||
|Net increase in funds in repurchase business|||
|Tax refunds received||22,306,916.59|
|Other operating cash received|29,195,276.02|16,382,898.79|
|Subtotal of operating cash inflow|3,107,319,011.60|2,350,158,209.46|
|Cash paid for goods and services|1,460,899,639.17|1,128,751,660.68|
|Net increase in loans and advances to customers|||
|Net increase in funds deposited in the Central Bank and|||
|inter-bank placements|||
|Cash for paying claims of original insurance contracts|||
|Cash for paying interest, handling charges and|||
|commissions|||
|Cash for paying policy dividends|||
|Cash paid to and for employees|298,371,022.35|283,468,238.34|
|Taxes and fares paid|226,899,499.05|131,441,100.55|
|Other cash payment relating to operating activities|547,600,585.13|412,215,075.35|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|Subtotal of operating cash outflow|2,533,770,745.70|1,955,876,074.92|
|Net operating cash flow|573,548,265.90|394,282,134.54|
|2. Investment cash flow:|||
|Cash received from retraction of investments|1,895,000,000.00|1,726,000,000.00|
|Cash received from return on investments|27,283,315.31|31,039,398.10|
|Net cash received from disposal of fixed assets, intangible|||
||116,500.00|4,440.00|
|assets and other long-term assets|||
|Net cash received from disposal of subsidiaries or other|||
|business units|||
|Other cash received relating to investment activities|20,632,286.64||
|Subtotal of investment cash inflow|1,943,032,101.95|1,757,043,838.10|
|Cash paid to acquire fixed assets, intangible assets and|||
||3,643,548.60|21,097,886.03|
|other long-term assets|||
|Cash paid for investment|3,146,000,000.00|2,451,000,000.00|
|Net increase in pledged loans|||
|Net cash paid to acquire subsidiaries and other business|||
|units|||
|Other cash payments relating to investment activities|||
|Subtotal of investment cash outflow|3,149,643,548.60|2,472,097,886.03|
|Net investment cash flow|-1,206,611,446.65|-715,054,047.93|
|3. Financing cash flow:|||
|Cash received from capital contributions|||
|Including: Cash received from minority shareholder|||
|investments by subsidiaries|||
|Cash received as borrowings||116,148,521.47|
|Cash received from issuance of bonds|||
|Other financing cash received|||
|Subtotal of financing cash inflow||116,148,521.47|
|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 financing cash outflow|||
|Net financing cash flow||116,148,521.47|
|4. Effect of foreign exchange rate changes on cash and cash|||
|equivalents|||

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|5. Net increase in cash and cash equivalents|-633,063,180.75|-204,623,391.92|
|Add: Opening balance of cash and cash equivalents|2,792,685,328.69|1,516,739,804.86|
|6. Closing balance of cash and cash equivalents|2,159,622,147.94|1,312,116,412.94|

 6. Cash flow statement of the Company
Unit: RMB
||||
|-|-|-|
|Item|January-March 2016|January-March 2015|
|1. Operating cash flow:|||
|Cash received from sale of commodities and rendering of|||
||1,884,113,725.72|1,466,060,466.05|
|service|||
|Tax refunds received||4,291,106.27|
|Other operating cash received|17,939,349.96|7,312,358.87|
|Subtotal of operating cash inflow|1,902,053,075.68|1,477,663,931.19|
|Cash paid for goods and services|1,162,262,194.02|676,848,631.05|
|Cash paid to and for employees|212,137,786.99|190,585,043.67|
|Taxes and fares paid|155,701,868.69|71,039,924.50|
|Other operating cash payments|417,610,973.90|302,459,281.81|
|Subtotal of operating cash outflow|1,947,712,823.60|1,240,932,881.03|
|Net operating cash flow|-45,659,747.92|236,731,050.16|
|2. Investment cash flow:|||
|Cash received from retraction of investments|1,000,000,000.00|1,150,000,000.00|
|Cash received from return on investments|7,682,222.22|23,213,055.14|
|Net cash received from disposal of fixed assets, intangible|||
||116,500.00||
|assets and other long-term assets|||
|Net cash received from disposal of subsidiaries or other|||
|business units|||
|Other cash received relating to investment activities|15,104,692.20||
|Subtotal of investment cash inflow|1,022,903,414.42|1,173,213,055.14|
|Cash paid to acquire fixed assets, intangible assets and|||
||1,142,846.70|12,283,921.60|
|other long-term assets|||
|Cash paid for investment|1,586,000,000.00|1,295,000,000.00|
|Net cash paid to acquire subsidiaries and other business|||
|units|||
|Other investment cash payments|||
|Subtotal of investment cash outflow|1,587,142,846.70|1,307,283,921.60|
|Net investment cash flow|-564,239,432.28|-134,070,866.46|

The Report for the First Quarter of 2016 of Wuxi Little Swan Company Limited
||||
|-|-|-|
|3. Financing cash flow:|||
|Cash received from capital contributions|||
|Cash received as borrowings||16,404,201.00|
|Cash received from issuance of bonds|||
|Other financing cash received|||
|Subtotal of financing cash inflow||16,404,201.00|
|Repayment of borrowings|||
|Cash paid for interest expenses and distribution of|||
|dividends or profit|||
|Other cash payments relating to financing activities|||
|Sub-total of financing cash outflow|||
|Net financing cash flow||16,404,201.00|
|4. Effect of foreign exchange rate changes on cash and cash|||
|equivalents|||
|5. Net increase in cash and cash equivalents|-609,899,180.20|119,064,384.70|
|Add: Opening balance of cash and cash equivalents|1,866,443,114.64|600,231,105.51|
|6. Closing balance of cash and cash equivalents|1,256,543,934.44|719,295,490.21|

 IIAuditor’s report
Is this Report audited?
□ Yes√ No
This Report is not audited.
Legal representative: Fang Hongbo Wuxi Little Swan Company Limited 22 April 2016