The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Midea Group Co., Ltd.
Interim Report for the Third Quarter 2016
October 2016
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Section I Important Notes, Contents and Definitions
1.1 The Board of Directors, Board of Supervisors, directors, supervisors and senior
management of Midea Group Co., Ltd. (hereinafter referred to as the “Company”)
hereby guarantee that the information presented in this Report is truthful, accurate
and complete, and shall together be jointly and severally liable for any false records,
misleading statements or material omissions in this Report.
1.2 All directors of the Company attended the Board meeting for reviewing this
Report.
1.3 This Report has not been audited by a CPAs firm.
1.4 Mr. Fang Hongbo, chairman of the Board and president of the Company and Mr.
Xiao Mingguang, responsible person for the Company’s financial affairs have
represented and warranted that the financial statements carried in this Report are
truthful, accurate and complete.
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Section II Financial Highlights & Changes in Shareholders
I Key accounting data and financial indicators
Does the Company perform a retroactive adjustment to or restatement of accounting data of previous
years due to changes in accounting policy or correction of any accounting error?
□ Yes √ No
30 Sept. 2016 31 Dec. 2015 YoY Change (%)
Total assets (RMB'000) 162,991,610 128,841,935 26.51%
Net assets attributable to the
shareholders of the Company 58,385,178 49,201,852 18.66%
(RMB'000)
Jul.-Sept. 2016 YoY Change (%) Jan.-Sept. 2016 YoY Change (%)
Operating revenues (RMB'000) 38,856,130 34.61% 116,378,417 4.49%
Net profits attributable to the
shareholders of the Company 3,311,500 23.20% 12,807,993 16.31%
(RMB'000)
Net profits attributable to the
shareholders of the Company
3,131,646 61.21% 12,231,890 30.47%
excluding non-recurring gains and
losses (RMB'000)
Net cash flows from operating
-- -- 19,037,495 5.94%
activities (RMB'000)
Basic earnings per share
0.51 21.43% 2.00 15.61%
(RMB/share)
Diluted earnings per share
0.51 21.43% 1.99 15.70%
(RMB/share)
Weighted average ROE (%) 5.82% 0.07% 23.76% -1.70%
Note: On June 30, 2016, Midea completed the transaction to acquire 80.1% stake in Toshiba’s home appliances business, Toshiba
Lifestyle Products & Services Corporation (“TLSC”). Due to the consolidation of TLSC, the 2016Q3 results include TLSC’s revenue of
3,873,064,000 RMB and Net profits attributable to the shareholders of the Company of 19,702,000 RMB.
Total share capital of the Company on the last trading session before the disclosure of this Report:
Total share capital of the Company on the last trading
6,450,774,771
session before the disclosure of this Report (share)
Fully diluted earnings per share based on the latest 1.99
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
share capital above (RMB/share)
Items and amounts of non-recurring gains and losses
√ Applicable □ N/A
Unit: RMB'000
Item Amount Note
Gains or losses on disposal of non-current assets (including
-22,992
the offset asset impairment provisions)
Government grants charged to the gains/losses for the
Reporting Period (except for the government grants closely
related to the business of the Company and given at a fixed 1,042,565
quota or amount in accordance with nationally uniform
standards)
Gains or losses on the changes in the fair value of
held-for-trading financial assets and liabilities, as well as
investment gains or losses on the disposal of held-for-trading
-605,843
financial assets and liabilities and available-for-sale financial
assets, except for the effectively hedging business related to
normal business operations of the Company
Non-operating incomes and expense other than the above 87,213
Less: Income tax effects 39,586
Minority interests effects (after tax) -114,746
Total 576,103 --
Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the
definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Non-recurring Gains and Losses, or classifies any non-recurring
gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item:
□ Applicable √ N/A
No such cases in the Reporting Period.
II Total number of shareholders and shareholdings of the top ten shareholders at the
period-end
1. Total number of common shareholders and shareholdings of the top ten common
shareholders at the period-end
Total number of ordinary shareholders at Total number of preference shareholders with
106,167
the end of the Reporting Period resumed voting rights at the period-end (if any)
Shareholdings of the top 10 ordinary shareholders
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Shareholdi Number of Pledged or frozen shares
Total ordinary
Nature of ng restricted
Name of shareholder shares held at Status of Number of
shareholder percentage ordinary shares
the period-end shares shares
(%) held
Domestic
Midea Holding Co., Ltd. 34.79% 2,244,375,000 Pledged 854,955,000
corporation
China Securities Finance Domestic
2.85% 184,076,580
Corporation Limited corporation
Domestic
Fang Hongbo 2.12% 136,990,492 102,742,869
individual
Hillhouse Capital
Foreign
Management Limited－ 1.77% 113,891,138
corporation
HCM China Fund
Ningbo Maysun Equity
Domestic
Investment Partnership 1.74% 112,500,000
corporation
(limited partnership)
Domestic
Huang Jian 1.71% 110,000,000
individual
Guotai Junan - Constrution Foreign
1.57% 101,283,468
Bank - Shanghai HSBC corporation
Domestic
Yuan Liqun 1.41% 90,750,000 90,750,000
individual
Tianjin CDH Jiatai Equity
Domestic
Investment Partnership 1.36% 87,777,826
corporation
(limited partnership)
Domestic
Xiaomi Technology Co., Ltd 1.28% 82,500,000 82,500,000
corporation
Shareholdings of the top 10 non-restricted ordinary shareholders
Number of non-restricted Type of shares
Name of shareholder ordinary shares held at the
Type Number
period-end
Midea Holding Co., Ltd. 2,244,375,000 RMB ordinary share 2,244,375,000
China Securities Finance Corporation Limited 184,076,580 Ditto 184,076,580
Hillhouse Capital Management Limited－HCM
113,891,138 Ditto 113,891,138
China Fund
Ningbo Maysun Equity Investment Partnership
112,500,000 Ditto 112,500,000
(limited partnership)
Huang Jian 110,000,000 Ditto 110,000,000
Guotai Junan - Constrution Bank - Shanghai 101,283,468 Ditto 101,283,468
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
HSBC
Tianjin CDH Jiatai Equity Investment
87,777,826 Ditto 87,777,826
Partnership (limited partnership)
Central Huijin Asset Management Co., Ltd. 78,474,900 Ditto 78,474,900
He Xiangjian 77,334,548 Ditto 77,334,548
Huang Xiaoming 77,085,099 Ditto 77,085,099
Related-parties or acting-in-concert parties
among the top ten non-restricted ordinary
The controling Shareholer of Midea Holding Co., Ltd is Mr. He
shareholders and between the top ten
Xiangjian, they are acting-in-concert parties.
non-restricted ordinary shareholders and the
top ten ordinary shareholders
Explanation on the top 10 ordinary
shareholders participating in securities margin N/A
trading (if any)
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the
Company carry out any agreed buy-back in the Report Period?
□ Yes √ No
No such cases in the Reporting Period.
2. Total number of preference shareholders and shareholdings of the top ten preference
shareholders at the period-end
□ Applicable √ N/A
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Section III Significant Events
I Major changes of main items in financial statements and financial indicators within
the Report Period, as well as the reasons for the changes
√ Applicable □ N/A
Unit: RMB’000
30 Sept. 30 Sept. YoY Change
Balance sheet items Main reasons for the changes
2016 2015 (%)
Advances to suppliers 2,106,914 988,625 113.12% Mainly due to purchase of materials
Mainly due to operational changes of
Loans and advances 11,940,979 6,608,705 80.69%
the finance company
Available-for-sale financial Mainly due to the share purchase of
5,097,575 3,289,954 54.94%
assets Germany company KUKA
Mainly due to appraisal of intangible
Intangible Asset 5,986,226 3,392,402 76.46% assets resulting from acquisition of
Toshiba home appliance business
Mainly due to acquisition of Toshiba
Goodwill 4,862,150 2,393,066 103.18%
home appliance business
Mainly due to purchase of wealth
Other non-current assets 4,853,722 669,730 624.73% management products with over one
year maturity period
Taxes payable 2,798,083 1,607,181 74.10% Mainly due to increase of VAT & CIT
Interests payable 48,749 9,343 421.77% Mainly due to increase of interests
Mainly due to increase of payment of
Dividends payable 196,694 118,851 65.50%
dividend of subsidiaries
Mainly due to acquisition of Toshiba
Other accounts payable 2,229,265 1,139,306 95.67%
home appliance business
Long-term borrowings 2,110,281 90,061 2,243.17% Mainly due to increase of borrowings
Debentures payable 4,617,408 0 100.00% Mainly due to issuance of debentures
Mainly due to acquisition of Toshiba
Long-term payroll payable 1,385,592 0 100.00%
home appliance business
Mainly due to appraisal related to the
Deferred income tax liabilities 1,675,765 40,464 4,041.37% acquisition of Toshiba home appliance
business
Mainly due to acquisition of Toshiba
Other non-current liabilities 867,399 157,194 451.80%
home appliance business
The Interim Report for the Third Quarter of 2016 of Midea Group Co., Ltd.
Jan.-Sept. Jan.-Sept. YoY Change
Income statement items Main reasons for the changes
2016 2015 (%)
Mainly due to increase of interests
Financial expenses -913,165 100,875 -1,005.24%
income and depreciation of RMB
Mainly due to yoy increase of change
Asset impairment loss 211,833 87,844 141.15%
in accounts receivable
Mainly due to changes in the fair value
Gains on fair value changes -488,089 45,766 -1,166.49%
of derivative financial instruments
Cash flow statement Jan.-Sept. Jan.-Sept. YoY Change
Main reasons for the changes
items 2016 2015 (%)
Net cash flows from investing Mainly due to increase of wealth
-17,770,441 -9,849,714 80.42%
activities management and structured deposits
Net cash flows from financing
1,992,708 -6,899,879 -128.88% Mainly due to increase of borrowings
activities
II Progress, influence and solutions of significant events
√ Applicable □ N/A
The Proposal Regarding Tender Offer of KUKA AG was reviewed and approved at the 11th and 12th
Meeting of the Second Board of Directors and at the Third Extraordinary General Meeting of
Shareholders for 2016. The Company, through its subsidiary MECCA International (BVI) Limited, has
launched a voluntary public tender offer for all shares in KUKA AG (KUKA). It is offering EUR 115 in cash
in exchange for each KUKA share. The acquisition shall be financed by the Company’s own cash and
syndicated loans.
By the end of the additional acceptance period on August 4th, 2016, 80.04% of KUKA shares w
