2016 Semi-annual Report of Wuxi Little Swan Company Limited
Wuxi Little Swan Company Limited
2016 Semi-annual Report
August 2016
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section I Important Reminders, Contents & Explanation
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Wuxi Little Swan Company Limited (hereinafter referred to as ―the Company‖)
warrant that this report is factual, accurate and complete without any false record, misleading
statement or material omission. And they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Mr. Fang Hongbo, chairman of the board, Mr. Sun Yunan, CFO, and Mr. Xu Yunwei, chief of the
accounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in this
report is factual, accurate and complete.
This report 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.
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Contents
Section I Important Reminders, Contents & Explanation ............................................................. 2
Section II Company Profile ............................................................................................................... 5
Section III Highlights of Accounting Data & Financial Indicators ............................................... 7
Section IV Report of the Board of Directors ................................................................................... 9
Section V. Significant Events ........................................................................................................... 20
Section VI. Change in Shares & Shareholders .............................................................................. 30
Section VII. Directors, Supervisors, Senior Management Staffs ................................................. 34
Section IX. Documents Available For Reference ......................................................................... 121
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Explanation
Term Refers to Contents
Company or the Company 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.
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 Attend Logistics Refers to Guangzhou Attend Logistics Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
Reporting period Refers to 1 January 2016-30 June 2016
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section II Company Profile
I Basic information about the Company
Stock name Little Swan A, Little Swan B Stock code 000418, 200418
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 无锡小天鹅股份有限公司
Abbreviation (if any) 小天鹅
Company name in English (if
Wuxi Little Swan Company Limited
any)
Legal representative Mr. Fang Hongbo
II Contact information
Board Secretary Securities Representative
Name Ms. Zhou Sixiu Mr. Zhao Yulin
No. 18, Changjiang Road S., National Hi-tech No. 18, Changjiang Road S., National Hi-tech
Address Development Zone, Wuxi, Jiangsu Province, P.R. Development Zone, Wuxi, Jiangsu Province,
China P.R. China
Tel. 0510-81082320 0510-81082377
Fax 0510-83720879 0510-83720879
E-mail ir@littleswan.com.cn ir@littleswan.com.cn
III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email
address of the Company during the Reporting Period?
□ Applicable √ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the Reporting Period.
On 10 August 2016, we disclosed the Announcement on Change of Company Email Address to change our email
address from ―ir_littleswan@littleswan.com.cn‖ to ―ir@littleswan.com.cn‖. The new email address has been put
into use since the announcement date, and the old one can be used until 30 September 2016 for transition.
Investors are kindly reminded to note that.
2016 Semi-annual Report of Wuxi Little Swan Company Limited
2. About information disclosure and the place where this report is kept
Did any change occur to information disclosure media and the place where this report is kept during the reporting
period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the place where this report is kept did not change during the reporting period. The said
information can be found in the 2015 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable √ Not applicable
The registration date and place of the Company, its business license No., taxation registration No. and
organizational code did not change during the reporting period. The said information can be found in the 2015
Annual Report.
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section III Highlights of Accounting Data & Financial Indicators
I Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/- (%)
Operating revenues (RMB) 7,984,787,194.92 6,101,903,864.60 30.86%
Net profit attributable to shareholders of the
580,826,562.58 430,694,268.55 34.86%
Company (RMB)
Net profit attributable to shareholders of the
Company after excluding extraordinary gains and 567,444,003.06 369,115,221.99 53.73%
losses (RMB)
Net cash flows from operating activities (RMB) 1,607,097,392.88 1,365,269,483.46 17.71%
Basic EPS (RMB/share) 0.92 0.68 35.29%
Diluted EPS (RMB/share) 0.92 0.68 35.29%
Weighted average ROE (%) 10.82% 9.28% 1.54%
As at the end of the
As at the end of last year +/- (%)
reporting period
Total assets (RMB) 15,482,781,637.01 14,327,655,366.60 8.06%
Net assets attributable to shareholders of the
5,372,739,501.53 5,124,866,173.14 4.84%
Company (RMB)
Notes: In the fourth quarter of 2015, ―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. In order to help investors better understand the business results of the Company, the ―net profit
attributable to shareholders of the Company after excluding extraordinary gains and losses‖ of the same period of
last year is restated as follows with the same caliber:
Unit: RMB
Reporting period Same period of last year YoY +/- (%)
Net profit attributable to shareholders of the Company
567,444,003.06 422,382,161.29 34.34%
after excluding extraordinary gains and losses
2016 Semi-annual Report of Wuxi Little Swan Company Limited
II 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 √ Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
No difference.
III Items and amounts of extraordinary gains and losses
Unit: RMB
Item Amount Explanation
Gains/losses on the disposal of non-current assets (including the offset part of asset
-121,746.30
impairment provisions)
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according to 19,387,917.07
the country’s unified standards
Non-operating income and expenses other than the above 1,742,326.88
Less: Income tax effects 3,151,274.65
Minority interests effects (after tax) 4,474,663.48
Total 13,382,559.52 --
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 √ Not applicable
No such cases.
2016 Semi-annual Report of Wuxi Little Swan Company Limited
Section IV Report of the Board of Directors
I Overview
(I) Macro-environment
In the first half of 2016, the slowdown of macro-economic growth, the deepening divide in the real estate market,
the continuous volatility of raw material prices and the wider fluctuations of the exchange rate of RMB posed a
bigger challenge to the home appliance sector.
In the period, transformation and upgrade remained the theme for the sector. As middle-class consumers kept
growing and those born in 1980s and 1990s grew up, demand for high-end, fashionable, individualized and
diversified home appliances was increasing. Roller, large-capacity, inverter and smart washing machines, as well
as drying machines, were developing fast, which created tremendous market opportunities. The digital and smart
technologies continued to boost reform of the manufacturing model of home appliances, and ―machines instead of
human‖ and ―smart manufacturing‖ kept improving the manufacturing efficiency. Amid the deep change and
relocation of global manufacturing, as well as the faster merger among home appliance tycoons, Chinese home
appliance makers increased their pace of internationalization. Thanks to smart terminal and mobile internet, online
channels were developing much faster than traditional channels. Consumption upgrade, renewal and overseas
expansion remained the three main driving forces of the washing machine industry. According to ChinaIOL
statistics, the first half of 2016 saw a total domestic output of 27,497,300 washing machines, up 3.82% year on
year, of which 18,998,200 were sold domestically, up 4.34% year on year, while 8,499,100 were exported, up
2.67% year on year.
(II) Main business analysis
In face of the complex domestic and overseas environments, as well as a continuously weak global economy, we
continued to closely adhere to our strategic axis of ―leading products, efficiency-driven and global operations‖,
focused on our main business, put customers and products at the heart of everything we did, and pushed forward
organizational reform and operating transformation. Meanwhile, we strengthened our R&D and innovation,
improved our T+3 order mechanism and promoted manufacturing upgrade and efficiency improvement so as to
increase our core competitiveness. The first half of 2016 witnessed a further improvement of our operating quality,
with continuously improving product structure, product quality and operating efficiency. For the reporting period,
we achieved operating revenues of RMB7.985 billion, up 30.86% from the same period of last year; net profit
attributable to shareholders of the Company stood at RMB581 million, representing a YoY growth of 34.86%; and
our overall gross profit margin was 27.2%, increasing by 0.25 percentage points from the corresponding period of
last year.
(III) Work accomplished in the first half of 2016
2016 Semi-annual Report of Wuxi Little Swan Company Limited
1. While centering on leading products, the Company continued to make competitive products, and
promote high-end and differential product series
The Company centered on the strategic main shaft of leading products, focused on consumers, stuck to invest
more on R&D input and product innovation, continued to construct a technology R&D platform with global
competitiveness; emphasized on user survey, research in advance, intelligent research and core technology efforts,
continued to made competitive products through independent R&D and external cooperation, promoted key
products of the Beverly high-end series and Disney differential series, so as to create qualified life experience for
users. Among them, as for the Beverly high-end new series, the Company combined Italian Kaibihe technique
based on its cooperation with Italian technique research institution, applied diamond-cut technology to make
rose-diamond-type door cycles, practiced craftsmen’s spirit, and carried forward high-end transformation. The
washing machines of the Disney customized version, including children’s washing machines designed for
―adorable kids‖, the wall hanging clothes dryers, and the portable mini washing machines, were combined with
both artistry and practicability, and reflected the Company’s efforts of continuous creation of fashionable qualified
goods. In the reporting period, the Company won the honor of technology certification of ―Water Rubik’s Cube
with High-efficiency and Energy Saving‖ issued by VDE,
as well as the quality certificate of ―BLDC Electrical
Machine of 20-year Service Life‖. The Beverly roller
washing machines won the honor of product award in
―China Appliance Award‖ for Chinese home appliances in
Y2016. The Beverly wave-wheel washing machines had
the honor to win the best design reward of German ―Red
Spot Award‖ in Y2016. R&D and innovation capability of
the Company were highly recognized by the market.
2. The Company enhanced on marketing
transformation, rapidly enlarged E-Commerce
business, and stably pushed growth of overseas
self-own brands
In domestic market, the Company continued to deepen the
transformation of marketing modes, led agents transform
2016 Semi-annual Report of Wuxi Little Swan Company Limited
to platform operator, pushed channels for further flattening, and improve its competitiveness in terminal markets;
sustainably optimized product sales structure, raised the ratio of high and milled end products, strengthened on the
sample processing and resource input of high and middle end product series, established the Beverly special hall
and the Disney special hall; promoted sharing of channels and stocks, fully took advantage of the turnover
function of center warehouses, integrated the planning, allocation, and usage of all channels and stocks;
energetically developed the campus cloud-washing machine project, and had successfully entered into plenty of
universities, flats, and hotels, and ultimately constructed the big market of public self-help clothes-washing
service, positively promoted the market expansion for clothes dryers, reinforced on new arrivals and its promotion,
and gained the revenue of RMB156 million of clothes dryers in the 1st half of Y2016, with a year-on-year increase
of 45.79%; positi
