WUXI LITTLE SWAN COMPANY LIMITED
FIRST QUARTER REPORT 2019
April 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of Wuxi Little Swan Company Limited (hereinafterreferred to as the “Company”) hereby guarantee the factuality, accuracy and completeness ofthe contents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Mr. Fang Hongbo, the Company’s legal representative, Mr. Sun Yunan, the Company’s ChiefFinancial Officer (CFO), and Mr. Xu Yunwei, the Company’s Financial Manager herebyguarantee that the Financial Statements carried in this Report are factual, accurate andcomplete.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
Q1 2019 Q1 2018 Change (%)Operating revenue (RMB) 7,359,616,847.476,811,940,933.68 8.04%Net profit attributable to the listed company’sshareholders (RMB)
603,252,543.54511,022,240.8918.05%Net profit attributable to the listed company’sshareholders before exceptional items (RMB)
601,855,509.38501,731,839.62 19.96%Net cash generated from/used in operating activities(RMB)
177,234,177.24 284,655,859.29-37.74%Basic earnings per share (RMB/share) 0.950.81 17.28%Diluted earnings per share (RMB/share) 0.950.81 17.28%Weighted average return on equity (%) 7.00%7.00% 0.00%31 March 2019 31 December 2018 Change (%)Total assets (RMB) 23,438,092,671.5023,561,899,125.85 -0.53%Equity attributable to the listed company’sshareholders (RMB)
8,930,052,500.098,312,062,507.53 7.43%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 NoteGain or loss on disposal of non-current assets (inclusive of impairmentallowance write-offs)
-330,222.11Gain or loss on fair-value changes in trading financial assets and liabilities &investment income from disposal of trading financial assets and liabilities andavailable-for-sale financial assets (exclusive of effective portion of hedges thatarise in the Company’s ordinary course of business)
749,009.52Non-operating income and expense other than the above 1,384,066.96Less: Income tax effects 270,518.42
Non-controlling interests effects (net of tax) 135,301.79
Total 1,397,034.16 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable √ Not applicableNo such cases for the Reportin g Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders at theperiod-end
25,441
Number of preferred shareholders with resumedvoting rights at the period-end (if any)
Top 10 shareholdersName of shareholder Nature of shareholder
Shareholding
percentage
Total shares
held
Restricted
shares
held
Shares in pledge
or frozenStatus SharesMIDEA GROUP CO., LTD.
Domesticnon-state-owned legal
person
37.78%238,948,117TITONI INVESTMENTSDEVELOPMENT LTD.
Foreign legal person 14.89%94,204,942HONGKONG SECURITIES CLEANINGCO., LTD
Foreign legal person 7.33%46,351,423GAOLING FUND,L.P. Foreign legal person 3.74%23,664,125GREENWOODS CHINA ALPHAMASTER FUND
Foreign legal person 1.89%11,957,218AGRICULTURAL BANK OF CHINA- EFUND CONSUMPTION SECTOR STOCKINVESTMENT FUND
Domestic
non-state-owned legal
person
1.72%10,876,259CENTRAL HUIJIN ASSETMANAGEMENT CO., LTD.
State-owned leg al person1.61%10,156,300BILL & MELINDA GATESFOUNDATION TRUST
Foreign legal person 1.28%8,070,506NATIONAL SOCIAL SECURITY FUND Domestic1.18%7,470,973
406 PORTFOLIOnon-state-owned legal
personNATIONAL SOCIAL SECURITY FUND101 PORTFOLIO
Domesticnon-state-owned legal
person
0.99%6,290,900Top 10 unrestricted shareholdersName of shareholder
Unrestricted shares
held
Shares by typeType SharesMIDEA GROUP CO., LTD. 238,948,117
RMB-denominated
ordinary stock
238,948,117TITONI INVESTMENTS DEVELOPMENT LTD. 94,204,942
Domestically listed
foreign stock
94,204,942HONGKONG SECURITIES CLEANING CO., LTD 46,351,423
RMB-denominated
ordinary stock
46,351,423GAOLING FUND,L.P. 23,664,125
Domestically listed
foreign stock
23,664,125GREENWOODS CHINA ALPHA MASTER FUND 11,957,218
Domestically listed
foreign stock
11,957,218AGRICULTURAL BANK OF CHINA- E FUND CONSUMPTIONSECTOR STOCK INVESTMENT FUND
10,876,259
RMB-denominated
ordinary stock
10,876,259CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD. 10,156,300
RMB-denominated
ordinary stock
10,156,300BILL & MELINDA GATES FOUNDATION TRUST 8,070,506
RMB-denominated
ordinary stock
8,070,506NATIONAL SOCIAL SECURITY FUND 406 PORTFOLIO 7,470,973
RMB-denominated
ordinary stock
7,470,973NATIONAL SOCIAL SECURITY FUND 101 PORTFOLIO 6,290,900
RMB-denominated
ordinary stock
6,290,900Related or acting-in-concert parties among theshareholders above
Midea Group and TITONI INVESTMENTS DEVELOPMENT LTD. areparties acting in concert.Top 10 ordinary shareholders involved in securitiesmargin trading (if any)
None
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinaryshareholders of the Company conducted any promissory repo during the Reporting Period.□ Yea √ NoNo such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them□ Applicable √ Not applicable
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
Unit: RMB’0,000Item
31 March
2019
31December
2018
Change Change (%) Explanation of whyMonetary capital 340,357.40 192,693.81147,663.5976.63%
Redemption of structured deposits uponmaturityInventories 79,289.75 175,459.71-96,169.97-54.81% Affected by the sales cycleFinancial liabilities at fairvalue through profit or loss
45.30 307.89 -262.59 -85.29%
Changes in the fair value of forwardexchange contractsAdvances from customers 75,234.48 202,494.58-127,260.10-62.85% Affected by the sales cycle
Payroll payable 23,788.39 39,399.81 -15,611.42-39.62%
Payment of the 2018 year-end performancebonuses to employeesItem Q1 2019 Q1 2018 Change Change (%) Explanation of whyFinance costs -11,806.19 -6,954.22 -4,851.97 -69.77%
Increase in the interest income fromstructured deposits and in the exchangegain resulted from exchange ratefluctuationsAsset impairment loss 1,997.79 -994.28 2,992.06 300.93%
Increase in the impairment allowance for anincreased balance of accounts receivableGain on changes in fair
value
262.59 34.28 228.31 665.98%
Increase in the gain on forward exchangecontracts due to exchange rate fluctuationsReturn on investment -187.69 3,911.33 -4,099.02 -104.80%
Decrease in income from decreasedinvestments in wealth managementproducts due to more investments instructured depositsNet profit attributable tonon-controlling interests
8,512.79 5,837.68 2,675.11 45.82% Increase in the profit of the subsidiaryOther comprehensive
income
-4.28 51.88 -56.16 -108.25%
Changes in the fair value ofavailable-for-sale financial assetsNet cash generatedfrom/used in operating
activities
17,723.42 28,465.59 -10,742.17-37.74%
Increase in payments for commodities andservicesNet cash generatedfrom/used in investing
activities
141,793.81 -51,063.11192,856.91377.68%
Disinvestment from bank’s wealthmanagement productsNet cash generatedfrom/used in financing
activities
-12,086.18 -9,066.94 -3,019.24 -33.30% Increase in repayments of borrowings
II Progress, Influence and Solutions with regard to Significant Events
On 24 October 2018, the Company announced the major assets restructuring plan. Midea Group intends to issueA-shares to absorb the Company, which means Midea Group issues shares to all shareholders of the Companyexcluding Midea Group and TITONI to exchange all A-shares and B-shares held by those shareholders. TheA-shares and B-shares held by Midea Group and TITONI are not involved in the conversion and these shares willbe cancelled after the merger by share swap.After the completion of the merger by share swap, the Company will terminate the listing and cancel the legalperson qualification. Midea Group or its wholly-owned subsidiaries will inherit and undertake all assets, liabilities,business, personnel, contracts and all other rights and obligations of the Company. Midea Group will apply forlisting on the main board of the Shenzhen Stock Exchange for all additional A-shares due to the merger by shareswapThe above-mentioned major assets restructuring was reviewed and approved on general meetings of both sides on21 December 2018 and unconditionally passed by the China Securities Regulatory Commission (CSRC) on 20February 2019 and examined and approved by CSRC on 12 March 2019. At present, the restructuring is in theprogress (see www.cninfo.com.cn for details). Investors are advised to pay attention to the investment risks.Progress of any share repurchase:
□ Applicable √ Not applicableProgress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during theReporting Period
□ Applicable √ Not applicableNo such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well asexplanation of why:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicableNo such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
Unit: RMB’0,000
Operator
RelationshipwiththeCom
any
Related-partytransaction ornot
Type ofderivativ
e
Initialinvestme
nt
amount
Starting
date
Ending
date
Beginninginvestmentamount
Purchased in theReporting Period
Soldin theReport
ingPeriod
Impairm
entprovisio
n (if
any)
Endin
ginvestmentamoun
t
Proportionof closinginvestmentamount in
theCompany’sclosing net
assets
Actualgain/lo
ss intheReporti
ngPeriodBank Not Not
Forwardforexcontract
4,488
17 April2018
24 May2019
4,48803,525 963 0.09%75Total 4,488 -- -- 4,48803,525 963 0.09%75Capital source for derivative investment All from the Company’s own fundsLawsuits involved (if applicable) N/ADisclosure date of board announcementapproving derivative investment (if any)
30 March 2019Disclosure date of shareholders’meeting announcement approvingderivative investment (if any)
23 April 2019
Analysis of risks and control measuresassociated with derivative investmentsheld in the Reporting Period (including
pb
ut not limited to market risk, liquidityrisk, credit risk, operational risk, legalrisk, etc.)
The Company has considered and formulated the Management Methods for Forex TradingBusiness to implement full assessment and control on its derivative investments, withhighlights as follows:
1. About market risk: Exchange rate fluctuations may cause great risk to the Company’sforex trading business. For instance, failure of capital required to arrive in time forperformance in forex trading could result in loss and default.Control measures: Speculative trading is not allowed and a prudent and steady principle isadopted. A hierarchical management mechanism has been implemented, whereby theo
bp
erating unit which has submitted applications for funds business should conduct a riskanalysis on the conditions and environment that could affect the operating profit and loss,evaluate the possible greatest revenue and loss, and report the greatest acceptable marginratio or total margin amount, so that the Company can update the operating status of thefunds business on a timely basis thus ensuring the arrangement of proper funds beforeexpiry dates.
2. About operational risk: Risks caused by imperfect internal processes, staff, systems andexternal issues may cause the Company to incur losses during the course of its forextrading business.Control measures: The Company has not only developed relevant management systemsthat clearly define the assignment of responsibility and approval process for forex trading,but has also established a well-developed monitoring mechanism, aimed at effectivelyreducing operational risk by strengthening its risk control over the business,decision-making and trading processes.3. About legal risk: The Company's forex trading business is conducted in compliancewith laws and regulations, with clearly defined responsibilities and obligations betweenthe Company and agencies.Control measures: The Company has designated relevant departments with theresponsibility for enhancing expertise in laws, regulations and market rules, conductingstrict examination and verification of contracts, defining responsibility and obligations,and strengthening compliance checks, so as to ensure that the Company's derivativesinvestment and position operations meet the requirements of the laws and regulations andinternal management system of the Company.Changes in market prices or fair valueof derivative investments during theReporting Period (fair value analysisshould include measurement methodand related assumptions andparameters)
Forward forex quotations announced by the Bank of China are used in the fair valueanalysis of the Company’s derivative investments.
Significant changes in accounting
olicies and specific accounting
pp
rinciples adopted for derivativeinvestments in the Reporting Periodcompared to previous reporting period
No significant changes
Opinion of independent directors onderivative investments and risk control
The independent directors of the Company are of the opinion that the Company hasformulated the Management Methods for Forex Trading Business to, which enables theCompany to effectively control risks associated with derivative investment; that for theReporting Period, derivative investment was conducted mainly on the Company’s exportbusiness by signing forward forex contracts with domestic financial institutions to lock inexchange rates and avoid risk caused by exchange rate fluctuations; that no speculativetrading is allowed, leading to no risk of non-
pp
erformance; and that trading deadlines areall set according to the Company’s expected payments and collections of payments, withno impact on the Company’s liquidity.
VII Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicableNo such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicableNo such cases in the Reporting Period.
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Unit: RMB
Item 31 March 2019 31 December 2018Current assets:
Monetary capital3,403,574,006.66 1,926,938,134.40Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable3,814,815,965.31 3,019,035,979.14Including: Notes receivable 1,468,208,663.59 1,061,452,503.99Accounts receivable 2,346,607,301.72 1,957,583,475.15Prepayments105,484,983.75 87,926,863.95Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables264,650,572.92 233,956,205.26Including: Interest receivable 253,365,895.45 213,514,910.10Dividends receivableFinancial assets purchased under resale agreements
Inventories792,897,467.67 1,754,597,149.53Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets13,179,076,369.14 14,670,897,092.07Total current assets21,560,499,365.45 21,693,351,424.35Non-current assets:
Loans and advances to customers
Investments in debt obligationsAvailable-for-sale financial assets 200,000.00 200,000.00Investments in other debt obligationsHeld-to-maturity investmentsLong-term receivablesLong-term equity investmentsInvestments in other equity instrumentsOther non-current financial assetsInvestment property 53,862,996.89 54,776,877.23Fixed assets 1,116,472,164.41 1,121,036,700.25Construction in progress 17,350,407.43 15,486,834.37Productive living assetsOil and gas assetsRight-of-use assetsIntangible assets 180,628,575.95 181,939,282.79R&D expenseGoodwillLong-term prepaid expense 22,151,107.68 25,540,285.92Deferred income tax assets 447,125,928.50 427,278,679.21Other non-current assets 39,802,125.19 42,289,041.73Total non-current assets 1,877,593,306.05 1,868,547,701.50Total assets 23,438,092,671.50 23,561,899,125.85Current liabilities:
Short-term borrowings 117,603,683.89Borrowings from central bankInterbank loans obtainedTrading financial liabilitiesFinancial liabilities at fair value through profit or loss 452,959.43 3,078,878.95Derivative financial liabilitiesNotes and accounts payable 8,496,803,784.52 7,979,727,116.02Advances from customers 752,344,775.74 2,024,945,754.25Financial assets sold under repurchase agreementsCustomer deposits and interbank depositsPayables for acting trading of securities
Payables for underwriting of securitiesPayroll payable 237,883,873.69 393,998,052.46Taxes payable 586,411,650.60 559,619,230.00Other payables 172,909,045.11 175,263,267.57Including: Interest payableDividends payable 9,049,503.92 9,049,503.92Handling charges and commissions payableReinsurance payablesContractual liabilitiesLiabilities directly associated with assets classified as held for saleCurrent portion of non-current liabilitiesOther current liabilities 2,686,861,485.25 2,507,883,253.19Total current liabilities 12,933,667,574.34 13,762,119,236.33Non-current liabilities:
Insurance contract reserveLong-term borrowingsBonds payableIncluding: Preferred shares
Perpetual bondsLease liabilitiesLong-term payablesLong-term payroll payable 9,248,736.22 9,888,772.71Provisions 1,729,438.52 1,853,074.62Deferred income 41,168,233.12 39,475,933.17Deferred income tax liabilitiesOther non-current liabilitiesTotal non-current liabilities 52,146,407.86 51,217,780.50Total liabilities 12,985,813,982.20 13,813,337,016.83Owners’ equity:
Share capital 632,487,764.00 632,487,764.00Other equity instrumentsIncluding: Preferred shares
Perpetual bondsCapital reserves 1,345,431,079.76 1,330,650,826.13
Less: Treasury stockOther comprehensive income -2,248,904.71 -2,206,100.21Specific reserveSurplus reserves 332,594,722.29 332,594,722.29General reserveRetained earnings 6,621,787,838.75 6,018,535,295.32Total equity attributable to owners of the Company as the parent 8,930,052,500.09 8,312,062,507.53Non-controlling interests 1,522,226,189.21 1,436,499,601.49Total owners’ equity 10,452,278,689.30 9,748,562,109.02Total liabilities and owners’ equity 23,438,092,671.50 23,561,899,125.85Legal representative: Fang Hongbo Chief Financial Officer: Sun Yunan Financial manager: Xu Yunwei
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2019 31 December 2018Current assets:
Monetary capital1,957,102,494.07 1,054,092,494.27Trading financial assets
Financial assets at fair value through profit or loss
Derivative financial assets
Notes and accounts receivable3,568,141,138.60 2,612,181,833.04Including: Notes receivable 764,769,758.65 589,229,066.42Accounts receivable 2,803,371,379.95 2,022,952,766.62Prepayments74,315,416.02 61,976,396.93Other receivables184,563,046.60 147,971,734.02Including: Interest receivable 178,367,746.93 136,241,903.00Dividends receivableInventories478,950,665.23 1,012,418,438.83Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets8,457,830,058.05 9,410,921,667.01Total current assets14,720,902,818.57 14,299,562,564.10Non-current assets:
Investments in debt obligationsAvailable-for-sale financial assets 150,000.00 150,000.00Investments in other debt obligationsHeld-to-maturity investmentsLong-term receivablesLong-term equity investments 958,235,041.57 958,235,041.57Investments in other equity instrumentsOther non-current financial assetsInvestment property 4,417,816.48 4,458,055.96Fixed assets 614,127,821.75 615,882,736.87Construction in progress 1,806,014.02 61,980.58Productive living assetsOil and gas assetsRight-of-use assetsIntangible assetsR&D expense 86,537,991.93 87,210,567.00GoodwillLong-term prepaid expense 7,651,019.71 8,812,163.74Deferred income tax assets 285,012,831.61 264,335,974.30Other non-current assets 28,533,922.49 28,091,110.19Total non-current assets 1,986,472,459.56 1,967,237,630.21Total assets 16,707,375,278.13 16,266,800,194.31Current liabilities:
Short-term borrowings 43,362,419.45Trading financial liabilitiesFinancial liabilities at fair value through profit or loss 264,895.14 1,597,534.54Derivative financial liabilitiesNotes and accounts payable 7,925,479,168.58 7,020,284,546.83Advances from customers 439,300,151.01 1,198,597,569.21Contractual liabilitiesPayroll payable 176,491,665.42 302,942,210.91Taxes payable 352,469,184.12 347,233,227.80Other payables 124,557,599.30 124,362,696.11Including: Interest payable
Dividends payable 9,049,503.92 9,049,503.92Liabilities directly associated with assets classified as held for saleCurrent portion of non-current liabilitiesOther current liabilities 1,656,885,339.31 1,536,311,047.76Total current liabilities 10,675,448,002.88 10,574,691,252.61Non-current liabilities:
Long-term borrowingsBonds payableIncluding: Preferred shares
Perpetual bondsLease liabilitiesLong-term payablesLong-term payroll payableProvisionsDeferred income 30,000,000.00 30,000,000.00Deferred income tax liabilitiesOther non-current liabilitiesTotal non-current liabilities 30,000,000.00 30,000,000.00Total liabilities 10,705,448,002.88 10,604,691,252.61Owners’ equity:
Share capital 632,487,764.00 632,487,764.00Other equity instrumentsIncluding: Preferred shares
Perpetual bondsCapital reserves 1,486,972,184.63 1,473,906,707.63Less: Treasury stockOther comprehensive income -39,831.00Specific reserveSurplus reserves 319,944,578.39 319,944,578.39Retained earnings 3,562,562,579.23 3,235,769,891.68Total owners’ equity 6,001,927,275.25 5,662,108,941.70Total liabilities and owners’ equity 16,707,375,278.13 16,266,800,194.31
3. Consolidated Income Statement
Unit: RMB
Item Q1 2019 Q1 20181. Revenue7,359,616,847.47 6,811,940,933.68Including: Operating revenue7,359,616,847.47 6,811,940,933.68Interest income
Premium income
Handling charge and commission income
2. Costs and expenses6,573,599,669.26 6,177,665,009.55Including: Cost of sales5,228,073,476.41 4,955,290,678.71Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges33,194,877.74 31,716,440.26Selling expense1,162,142,285.97 1,026,609,941.05Administrative expense65,374,752.65 63,700,807.13R&D expense 182,898,300.50 179,832,126.62
Finance costs-118,061,874.18 -69,542,219.96Including: Interest expense16,403,917.80 18,716,285.06Interest income -168,770,819.69 -119,235,309.52
Asset impairment loss19,977,850.17 -9,942,764.26Credit impairment lossAdd: Other income8,870,432.86 18,401,624.34Return on investment (“-” for loss) -1,876,910.00 39,113,264.51
Including: Share of profit or loss of joint ventures andassociates
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 2,625,919.52 342,817.90
Asset disposal income (“-” for loss)-330,222.11 87,113.61
3. Operating profit (“-” for loss) 795,306,398.48 692,220,744.49Add: Non-operating income 702,847.15 2,325,811.45Less: Non-operating expense 2,475.89 174,119.844. Profit before tax (“-” for loss) 796,006,769.74 694,372,436.10Less: Income tax expense 107,626,297.24 124,973,358.335. Net profit (“-” for net loss) 688,380,472.50 569,399,077.775.1 By operating continuity5.1.1 Net profit from continuing operations (“-” for net loss) 688,380,472.50 569,399,077.775.1.2 Net profit from discontinued operations (“-” for net loss)5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as theparent
603,252,543.54 511,022,240.89
5.2.1 Net profit attributable to non-controlling interests85,127,928.96 58,376,836.886. Other comprehensive income, net of tax-42,804.47 518,838.47Attributable to owners of the Company as the parent-42,804.47 335,212.02
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined benefitpension schemes
6.1.2 Other comprehensive income that will not bereclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other equityinstruments
6.1.4 Changes in the fair value of the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to profit or loss-42,804.47 335,212.02
6.2.1 Other comprehensive income that will be reclassified toprofit or loss under the equity method
6.2.2 Changes in the fair value of investments in other debtobligations
6.2.3 Gain/Loss on changes in the fair value ofavailable-for-sale fi na ncial assets
1,949,466.02
6.2.4 Other comprehensive income arising from thereclassification of financial assets
6.2.5 Gain/Loss arising from the reclassification ofheld-to-maturity investments to avai la ble-for-sale financial assets
6.2.6 Allowance for credit impairments in investments inother debt obligations
6.2.7 Reserve for cash flow hedges-39,831.00 -1,606,733.75
6.2.8 Differences arising from the translation of foreigncurrency-denominated financial statements
-2,973.47 -7,520.25
6.2.9 Other
Attributable to non-controlling interests183,626.457. Total comprehensive income688,337,668.03 569,917,916.24Attributable to owners of the Company as the parent603,209,739.07 511,357,452.91Attributable to non-controlling interests85,127,928.96 58,560,463.338. Earnings per share
8.1 Basic earnings per share0.95 0.818.2 Diluted earnings per share0.95 0.81Legal representative: Fang Hongbo Chief Financial Officer: Sun Yunan Financial manager: Xu Yunwei
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 20181. Operating revenue 5,051,151,978.48 4,767,686,978.91Less: Cost of sales 3,756,372,193.55 3,605,293,753.66
Taxes and surcharges 20,070,260.98 19,507,963.32Selling expense 758,760,472.09 693,236,807.81Administrative expense 54,107,157.43 54,631,697.61R&D expense 146,015,498.24 147,928,399.97Finance costs -75,096,541.63 -37,055,059.17
Including: Interest expense 8,292,187.20 8,748,219.08Interest income -106,037,556.17 -68,554,772.15
Asset impairment loss 18,746,732.23 -13,543,369.25Credit impairment lossAdd: Other income 342,829.57Return on investment (“-” for loss) -868,960.00 22,701,985.06
Including: Share of profit or loss of joint ventures andassociates
Net gain on exposure hedges (“-” for loss)Gain on changes in fair value (“-” for loss) 1,332,639.40 253,065.85Asset disposal income (“-” for loss) -38,954.93 -440,752.802. Operating profit (“-” for loss)372,943,759.63 320,201,083.07
Add: Non-operating income 546,925.86 1,256,241.40Less: Non-operating expense 2,475.89 132,679.983. Profit before tax (“-” for loss) 373,488,209.60 321,324,644.49Less: Income tax expense 46,695,522.05 50,937,581.814. Net profit (“-” for net loss) 326,792,687.55 270,387,062.684.1 Net profit from continuing operations (“-” for net loss) 326,792,687.55 270,387,062.684.2 Net profit from discontinued operations (“-” for net loss) 326,792,687.55 270,387,062.685. Other comprehensive income, net of tax -39,831.00 -75,103.61
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined benefitpension schemes
5.1.2 Other comprehensive income that will not be reclassifiedto profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other equityinstruments
5.1.4 Changes in the fair value of the company’s credit risks
5.1.5 Other5.2 Items that will be reclassified to profit or loss -39,831.00 -75,103.61
5.2.1 Other comprehensive income that will be reclassified toprofit or loss under the equity method
5.2.2 Changes in the fair value of investments in other debtobligations
5.2.3 Gain/Loss on changes in the fair value of available-for-salefinancial assets
1,531,630.14
5.2.4 Other comprehensive income arising from thereclassification of financial assets
5.2.5 Gain/Loss arising from the reclassification ofheld-to-maturity investments to avai la ble-for-sale financial assets
5.2.6 Allowance for credit impairments in investments in otherdebt obligations
5.2.7 Reserve for cash flow hedges -39,831.00 -1,606,733.75
5.2.8 Differences arising from the translation of foreigncurrency-denominated financial statements
5.2.9 Other
6. Total comprehensive income326,752,856.55 270,311,959.077. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2019 Q1 20181. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services5,095,730,055.67 4,265,171,195.76Net increase in customer deposits and interbank deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Net increase i n proceeds from disposal of financial assets at fairvalue through profit or loss
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax rebates8,186,737.16 13,193,598.89Cash generated from other operating activities27,114,249.54 20,560,607.10Subtotal of cash generated from operating activities5,131,031,042.36 4,298,925,401.75Payments for commodities and services3,975,685,722.88 3,053,498,810.41Net increase in loans and advances to customers
Net increase in deposits in the central bank and in interbank loansgranted
Payments for claims on original insurance contracts
Net increase in financial assets held for trading purposesNet increase in interbank loans grantedInterest, handling charges and commissions paidPolicy dividends paidCash paid to and for employees 509,997,699.83 462,414,920.99Taxes paid 269,099,415.47 314,170,117.48Cash used in other operating activities 199,014,026.93 184,185,693.58Subtotal of cash used in operating activities 4,953,796,865.11 4,014,269,542.46Net cash generated from/used in operating activities 177,234,177.24 284,655,859.292. Cash flows from investing activities:
Proceeds from disinvestment 5,300,000,000.00 2,700,000,000.00Return on investment -1,876,910.00 39,113,264.51Net proceeds from the disposal of fixed assets, intangible assetsand other long-lived assets
61,930.06 731,585.54Net proceeds from the disposal of subsidiaries and other businessunits
Cash generated from other investing activities117,575,368.13 27,027,230.60Subtotal of cash generated from investing activities5,415,760,388.19 2,766,872,080.65Payments for the acquisition of fixed assets, intangible assets andother long-lived assets
47,822,331.28 127,503,144.01Payments for investments 3,950,000,000.00 3,150,000,000.00Net increase in pledged loans grantedNet payments for the acquisition of subsidiaries and other businessunits
Cash used in other investing activities
Subtotal of cash used in investing activities3,997,822,331.28 3,277,503,144.01Net cash generated from/used in investing activities1,417,938,056.91 -510,631,063.363. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by non-controlling interests tosubsidiaries
Borrowings obtained
Net proceeds from the issuance of bonds
Cash generated from other financing activities
Subtotal of cash generated from financing activities
Repayments of borrowings117,603,683.89 81,393,672.34Payments for interest and dividends3,258,130.52 9,275,732.98
Including: Dividends paid by subsidiaries to non-controllinginterests
Cash used in other financing activitiesSubtotal of cash used in financing activities 120,861,814.41 90,669,405.32Net cash generated from/used in financing activities -120,861,814.41 -90,669,405.324. Effect of foreign exchange rate changes on cash and cashequivalents
-8,481,006.22 -6,380,666.785. Net increase in cash and cash equivalents1,465,829,413.54 -323,025,276.17Add: Cash and cash equivalents, beginning of the period1,713,233,957.40 1,417,489,071.716. Cash and cash equivalents, end of the period3,179,063,370.94 1,094,463,795.54
6. Cash Flow Statement of the Company as the Parent
Unit: RMBItem Q1 2019 Q1 20181. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services3,293,536,226.27 2,894,256,697.65Tax rebates
Cash generated from other operating activities19,714,936.23 5,580,871.84Subtotal of cash generated from operating activities3,313,251,162.50 2,899,837,569.49Payments for commodities and services2,564,838,148.72 2,366,907,563.95Cash paid to and for employees365,320,924.92 337,491,044.51Taxes paid150,225,224.00 129,207,442.27Cash used in other operating activities158,555,918.36 156,061,239.87Subtotal of cash used in operating activities3,238,940,216.00 2,989,667,290.60Net cash generated from/used in operating activities74,310,946.51 -89,829,721.112. Cash flows from investing activities:
Proceeds from disinvestment2,900,000,000.00 1,250,000,000.00Return on investment-868,960.00 22,683,420.34Net proceeds from the disposal of fixed assets, intangible assetsand other long-lived assets
40,775.00 203,719.13Net proceeds from the disposal of subsidiaries and other businessunits
Cash generated from other investing activities 57,328,929.79 11,094,833.33Subtotal of cash generated from investing activities 2,956,500,744.79 1,283,981,972.80
Payments for the acquisition of fixed assets, intangible assets andother long-lived assets
32,082,423.83 94,911,055.59Payments for investments2,050,000,000.00 1,500,000,000.00Net payments for the acquisition of subsidiaries and other businessunits
Cash used in other investing activities
Subtotal of cash used in investing activities2,082,082,423.83 1,594,911,055.59Net cash generated from/used in investing activities874,418,320.96 -310,929,082.793. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Net proceeds from the issuance of bonds
Cash generated from other financing activitiesSubtotal of cash generated from financing activitiesRepayments of borrowings 43,362,419.45 16,806,882.34
Payments for interest and dividends 2,175,304.69 7,262,107.77
Cash used in other financing activitiesSubtotal of cash used in financing activities 45,537,724.14 24,068,990.11Net cash generated from/used in financing activities -45,537,724.14 -24,068,990.114. Effect of foreign exchange rate changes on cash and cashequivalents
-5,298,758.17 -3,472,400.305. Net increase in cash and cash equivalents897,892,785.15 -428,300,194.31Add: Cash and cash equivalents, beginning of the period930,242,006.18 945,759,061.626. Cash and cash equivalents, end of the period1,828,134,791.33 517,458,867.31
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Financial Instruments, Revenue or Leases□ Applicable √ Not applicable2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any NewStandards Governing Financial Instruments or Leases□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□Yes √ NoThese financial statements have not been audited by such an auditor.
Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo
27 April 2019