2015 Annual Report of Wuxi Little Swan Company Limited
Wuxi Little Swan Company Limited
2015 Annual Report
March 2016
2015 Annual Report of Wuxi Little Swan Company Limited
Section I. Important Statements, Contents & Terms
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Wuxi Little Swan Company Limited (hereinafter referred to as “the Company”)
warrant that this Report is factual, accurate and complete without any false information, misleading
statements or material omissions. And they shall be jointly and severally liable for that.
Mr. Fang Hongbo, chairman of the board, Mr. Sun Yunan, CFO, and Mr. Xu Yunwei, chief of the
accounting organ (chief of accounting), hereby guarantee that the Financial Report annexed to this
Report is factual, accurate and complete.
All directors attended the board meeting for reviewing this Report.
The Company’s profit distribution preplan upon review and approval of this board meeting: Based
on the total shares of 632,487,764, a cash dividend of RMB6.00 (tax included) will be distributed
for every 10 shares held by shareholders. No bonus shares will be granted and no capital reserve
will be turned into share capital.
This Report involves futures plans and some other forward-looking statements, which shall not be
considered as virtual promises to investors. Investors are kindly reminded to pay attention to
possible risks.
This Report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
2015 Annual Report of Wuxi Little Swan Company Limited
Contents
Section I. Important Statements, Contents & Terms ...................................................................... 2
Section II. Company Profile & Financial Highlights ...................................................................... 5
Section III. Business Highlights ...................................................................................................... 10
Section IV. Discussion & Analysis by Management ...................................................................... 13
Section V. Significant Events ........................................................................................................... 32
Section VI. Share Changes & Particulars about Shareholders ................................................... 49
Section VII. Directors, Supervisors, Senior Management Staff & Employees ........................... 55
Section VIII. Corporate Governance ............................................................................................. 62
Section IX. Financial Report ........................................................................................................... 68
Section X. Documents Available for Reference ........................................................................... 173
2015 Annual Report of Wuxi Little Swan Company Limited
Terms
Term Refers to Content
Company, the Company or Little Swan Refers to Wuxi Little Swan Company Limited
Midea Group Refers to Midea Group Co., Ltd.
TITONI Refers to TITONI Investments Development Ltd.
Midea Group Finance Refers to Midea Group Finance Co., Ltd.
GD Midea Holding Refers to GD Midea Holding Co., Ltd.
Hefei Midea Washing Machine Refers to Hefei Midea Washing Machine Co., Ltd.
Wuxi Little Swan General Appliance Refers to Wuxi Little Swan General Appliance Co., Ltd.
Wuxi FILIN Electronics Refers to Wuxi FILIN Electronics Co., Ltd.
Guangzhou Hualing Air Conditioner Refers to Guangzhou Hualing Air Conditioner Equipment Co., Ltd.
Attend Logistics Refers to Guangzhou Attend Logistics Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
Reporting period Refers to 1 Jan. 2015-31 Dec. 2015
2015 Annual Report of Wuxi Little Swan Company Limited
Section II. Company Profile & Financial Highlights
I. Basic information of the Company
Stock abbreviation Little Swan A, Little Swan B Stock code 000418, 200418
Stock exchange Shenzhen Stock Exchange
Chinese name of the Company 无锡小天鹅股份有限公司
Abbr. of the Chinese name of the
小天鹅
Company
English name of the Company (if any) Wuxi Little Swan Company Limited
Legal representative of the Company Mr. Fang Hongbo
Registered address No. 18, Changjiang Road S., National Hi-tech Development Zone, Wuxi, Jiangsu Province
Zip code
Office address No. 18, Changjiang Road S., National Hi-tech Development Zone, Wuxi, Jiangsu Province
Zip code
Internet website of the Company http://www.littleswan.com
Email address IR_littleswan@littleswan.com.cn
II. For contact
Company Secretary Securities Affairs Representative
Name Ms. Zhou Sixiu Mr. Zhao Yulin
No. 18, Changjiang Road S., National Hi-tech No. 18, Changjiang Road S., National Hi-tech
Contact address
Development Zone, Wuxi Development Zone, Wuxi
Tel. 0510-81082320 0510-81082377
Fax 0510-83720879 0510-83720879
E-mail address IR_littleswan@littleswan.com.cn IR_littleswan@littleswan.com.cn
III. About information disclosure and where this Report is placed
Newspapers designated by the Company for information disclosure Securities Times, Ta Kung Pao (HK)
Internet website designated by CSRC for disclosing this Report http://www.cninfo.com.cn
Where this Report is placed Securities Department of the Company
2015 Annual Report of Wuxi Little Swan Company Limited
IV. Changes in the registered information
Organizational code 91320200704046760T
Changes of the main business
Unchanged
since listing (if any)
The Company was incorporated in November 1993 by raising funds from targeted sources, with
Jiangsu Little Swan Group Co., Ltd. as the controlling shareholder. In June 2007, Wuxi Guolian
Development (Group) Co., Ltd. became the controlling shareholder as Jiangsu Little Swan Group
Changes of the controlling Co., Ltd. transferred the 87,673,341 Little Swan A-shares to it according to law. In April 2008, GD
shareholder (if any) Midea Holding Co., Ltd. became the controlling shareholder as it took over, upon agreement, all the
Company’s shares held by Wuxi Guolian Development (Group) Co., Ltd. In September 2013, Midea
Group Co., Ltd. became the controlling shareholder as it merged in GD Midea Holding Co., Ltd. in
a stock swap.
V. Other information
The CPAs firm hired by the Company:
Name PricewaterhouseCoopers Zhong Tian LLP
Office address 11/F, PricewaterhouseCoopers Center, 202 Hubin Road, Huangpu District, Shanghai
Signing accountants Lin Yupeng, Lin Xuyun
Sponsor engaged by the Company to conduct sustained supervision during the reporting period
√ Applicable □ Inapplicable
Name Office address Sponsor representative Consistent supervision period
25/F, CTS Tower, No. From 4 Aug. 2006 to the date when all non-tradable share
Huatai United
4011 Shennan Road, Bian Jianguang holders pay off the considerations that have been paid in
Securities Co., Ltd.
Shenzhen, Guangdong advance for them and the non-tradable shares are unlocked.
Financial consultant engaged by the Company to conduct sustained supervision during the reporting period
□ Applicable √ Inapplicable
VI. Accounting and financial highlights
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
Unit: RMB Yuan
Increase/decrease of current
2015 2014
year over last year
Operating revenue (RMB Yuan) 13,131,626,932.44 10,804,217,288.60 21.54% 8,727,956,044.37
Net profit attributable to shareholders 919,181,968.58 698,195,731.48 31.65% 413,350,079.54
2015 Annual Report of Wuxi Little Swan Company Limited
of the Company (RMB Yuan)
Net profit attributable to shareholders
of the Company after extraordinary 903,388,867.00 549,737,253.68 64.33% 310,261,096.43
gains and losses (RMB Yuan)
Net cash flows from operating
3,598,695,468.80 1,657,114,317.33 117.17% 904,882,101.01
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 1.45 1.10 31.82% 0.65
Diluted EPS (RMB Yuan/share) 1.45 1.10 31.82% 0.65
Weighted average ROE (%) 19.32% 16.73% 2.59% 10.88%
Increase/decrease of current
As at 31 Dec. 2015 As at 31 Dec. 2014 As at 31 Dec. 2013
year-end than last year-end
Total assets (RMB Yuan) 14,327,655,366.60 11,376,793,928.71 25.94% 9,222,527,380.74
Net assets attributable to shareholders
5,124,866,173.14 4,427,982,112.33 15.74% 3,908,897,654.74
of the Company (RMB Yuan)
Note: In the reporting period, “to make financial investments with the Company’s own funds” was added to the
business scope of the Company. As such, gains/losses on financial investments have been restated as recurrent
gains/losses. Dismissal expenses have been restated as recurrent gains/losses as well. In order to help investors
better understand the business results of the Company, the “net profit attributable to shareholders of the Company
after extraordinary gains and losses” of 2014 is restated as follows with the same caliber:
Unit: RMB Yuan
2015 2014 +/-
Net profit attributable to shareholders of the Company after
903,388,867.00 695,186,106.92 29.95%
extraordinary gains and losses
VII. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √ Inapplicable
No such differences for the reporting period
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Inapplicable
No such differences for the reporting period
2015 Annual Report of Wuxi Little Swan Company Limited
VIII. Financial highlights by quarter
Unit: RMB Yuan
Q1 Q2 Q3 Q4
Operating revenue 3,293,972,545.08 2,807,931,319.52 3,510,072,100.54 3,519,650,967.30
Net profit attributable to shareholders of the
242,314,468.72 188,379,799.83 255,058,086.36 233,429,613.67
Company
Net profit attributable to shareholders of the
217,515,263.04 154,566,522.55 224,346,001.07 306,961,080.34
Company after extraordinary gains and losses
Net cash flows from operating activities 394,282,134.54 970,987,348.92 1,207,953,636.35 1,025,472,348.99
Note: In the reporting period, “to make financial investments with the Company’s own funds” was added to the
business scope of the Company. As such, gains/losses on financial investments have been restated as recurrent
gains/losses. And the “net profit attributable to shareholders of the Company after extraordinary gains and losses”
for Q1, Q2 and Q3 in the table above is restated with the same caliber. Figures in other items are consistent with
those in the disclosed periodical reports.
IX. Extraordinary gains and losses
Unit: RMB Yuan
Item 2015 2014 2013 Note
Gain/loss on the disposal of non-current assets (including the offset
-280,195.57 -3,482,781.03 -1,078,789.83
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 certain 31,893,010.09 19,316,074.38 23,748,858.49
quotas or amounts according to the government’s unified standards
Gain/loss on debt restructuring 7,708,285.28 2,807,241.09
Impairment provision reversal of accounts receivable on which the
733,146.16
impairment test is carried out separately
Effect on current gains/losses when a one-off adjustment is made to
current gains/losses according to requirements of taxation, accounting 2,679,264.25 7,701,506.00 308,469.59
and other relevant laws and regulations
Non-operating income and expense other than the above -8,815,676.21 7,821,536.57 9,283,944.96
Other gain and loss items that meet the definition of an extraordinary
162,708,030.89 97,565,087.41
gain/loss
Dismissal expenses -17,259,177.65 -5,944,610.29
Less: Income tax effects 3,899,799.51 11,994,501.34 9,485,975.81
Minority interests effects (after tax) 5,783,501.47 24,060,495.30 14,848,388.66
Total 15,793,101.58 148,458,477.80 103,088,983.11 --
2015 Annual Report of Wuxi Little Swan Company Limited
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 the
Public—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
Item Amount (RMB Yuan) Reason
In the reporting period, “to make financial investments with the Company’s own
Gains on financial
201,658,430.62 funds” was added to the business scope of the Company. As such, gains/losses on
investment
financial investments have been restated as recurrent gains/losses.
Dismissal expenses -14,322,248.26 Necessary for routine operation
2015 Annual Report of Wuxi Little Swan Company Limited
Section III. Business Highlights
I. Main business during the reporting period
As one of the earliest washing machine manufacturers in China, Wuxi Little Swan Company Limited is
principally engaged in R&D, production and sale of domestic washing machines. In 1978, China’s first fully-auto
washing machine greeted the world in the Company. With 37 years of focus on washing machines, the Company
mainly produces front-loading washing machines (also known as “roller washing machines”) and top-loading
washing machines (also “pulsator washing machines”). Pulsator washing machines can be divided into fully-auto
ones and double-cylinder ones according to structure. Currently, these three kinds of washing machines are the
mainstream in the market. In 2015, the Company produced and sold over 14 million units of such washing
machines, with the second largest market share in China’s washing machine industry. In addition, the Company
can also produce clothes dryers and agitator washing machines. The recent years have witnessed a fast growth in
the market of clothes dryers. In 2015, the Company achieved over RMB200 million by selling clothes dryers,
representing a considerable growth from the year earlier.
The Company has a sound technological R&D system, including one state-level technological center and two
state-recognized labs. Little Swan holds on to independent innovation and has the internationally advanced
frequency-changing, intelligent control, structure design, industrial design and other core washing technologies.
We own 2 manufacturing bases, one in Wuxi, Jiangsu Province and the other one in Hefei, Anhui Province, with a
