2016-06-22-上交所-青岛海尔2016年第一季度报告（英文版）_31页_362kb

Qingdao Haier Co., Ltd. First Quarter Report 2016 Summary

Core Content

This report provides an overview of Qingdao Haier Co., Ltd.'s financial performance and shareholder changes for the first quarter of 2016, along with important notices and significant events impacting the company.

Major Financial Information

• Unit and Currency: RMB

• Non-recurring Profit or Loss Items and Amount (RMB):
  • Losses and profits from disposal of non-current assets: 166,840,685.70
  • Other non-operating net income and expenses: 106,069,127.94
  • Gain from disposal of long-term equity investment: 527,933,445.75
  • Gains and losses of changes in fair value: -56,543,159.42
  • Investment income from derivative instruments: -8,504,174.30
  • Deduction of the effect of minority shareholders: -20,107,198.08
  • Effects of income tax on non-recurring profit and loss: -87,175,267.82
  • Total: 628,513,459.77

Shareholder Changes

• Total number of shareholders: 214,152

• Top 10 shareholders:

  • Haier Electric Appliances International Co., Ltd. (20.62%)
  • Haier Group Corporation (17.57%)
  • KKR HOME INVESTMENT S.A R.L. (9.93%)
  • Hong Kong Securities Clearing Co., Ltd. (4.99%)
  • China Securities Finance Corporation Limited (3.05%)
  • Qingdao Haier Venture & Investment Information Co., Ltd. (2.63%)
  • China Life Insurance Company Limited (1.47%)
  • Central Huijin Asset Management Ltd. (1.14%)
  • National social security fund, Portfolio 103 (0.66%)
  • Industrial & Commercial Bank of China Limited (0.62%)

• Shareholdings not subject to selling restrictions:

  • All top 10 shareholders held shares not subject to selling restrictions.
  • Shares were all RMB ordinary shares.

• Connections or parties acting in concert:

  • Haier Electric Appliances International Co., Ltd. is a subsidiary of Haier Group Corporation.
  • Qingdao Haier Venture & Investment Information Co., Ltd. is acting in concert with Haier Group Corporation.
  • China Life Insurance Company Limited's general insurance products and personal dividend are managed by the same entity.
  • No connections were identified among other shareholders.

Important Events

• Major changes in accounting statement and financial indicators:

  • Financial assets measured at fair value decreased by 98.32% due to changes in derivative financial instruments.
  • Prepaid amount increased by 37.16% due to increased prepayment to suppliers.
  • Available-for-sale financial assets decreased by 48.32% due to changes in accounting methods for Bank of Qingdao equity.
  • Long-term equity investments increased by 36.31% due to the same accounting method change.
  • Investment properties increased by 176.85% due to subsidiaries increasing investments.
  • Development expenditures increased by 33.76% due to U+ Platform's increased spending.
  • Financial liabilities measured at fair value increased by 559.10% due to derivative financial instruments.
  • Taxes payable increased by 59.82% due to higher value-added tax.
  • Interests payable increased by 91.23% due to unpaid loan interest.
  • Long-term payable increased by 76.20% due to China Development Bank's investment.
  • Treasury stock decreased by 61.07% due to stock repurchase.
  • Other comprehensive income decreased by 61.65% due to accounting method changes and fair value transfers.
  • Financial expenses increased by 103.94% due to lower interest rates and investment expenses.
  • Income from changes in fair value decreased by 250.39% due to derivative instruments.
  • Investment income increased by 304.78% due to fair value changes from other comprehensive income.
  • Non-operating income increased by 270.99% due to accounting method changes and fair value differences.
  • Net of other comprehensive income after tax decreased by 512.87% due to fair value transfers.
  • Net cash flows from operating activities decreased by 43.35% due to lower cash received from sales.
  • Net cash flows from investment activities increased by 85.60% due to reduced cash payments.
  • Net cash flows from financing activities decreased by 78.68% due to lower cash received from borrowings.
  • Exchange rate changes increased the influence on cash and cash equivalents by 198.62%.

• External guarantees:

  • Total external guarantees amounted to RMB 988.025 million.
  • This included RMB 9.14 million for investment income, RMB 93 million for repurchase obligations, and RMB 885.885 million for foreign exchange hedging.
  • Represents 4.35% of the audited net assets as of 31 December 2015.

Shareholder Undertakings

• Undertaking related to material asset reorganization:

  • Haier Group Corporation undertook to ensure free lease of land and property to Qingdao Haier and its subsidiaries.
  • This undertaking was made on 27 September 2006 and is long-term.
  • It is valid and performed in a timely and strict way.

• Undertaking related to refinancing:

  • Haier Group Corporation undertook to ensure constant and stable use of leased property and to provide compensation for economic losses due to lack of ownership certificates.
  • This undertaking was made on 24 December 2013 and is long-term.
  • It is valid and performed in a timely and strict way.

• Undertaking related to asset injection:

  • Haier Group Corporation committed to injecting assets of Fisher & Paykel and Haier Photoelectric into Qingdao Haier or disposing of them by June 2020.
  • This undertaking is valid from May 2015 to June 2020 and is performed in a timely and strict way.

• Undertaking related to profit forecast and compensation:

  • Haier Group Corporation signed a profit compensation agreement with Qingdao Haier for the years 2015–2018.
  • If the forecasted profits are not met, Haier Group will compensate in cash.
  • This undertaking is valid from December 2015 to December 2018 and is performed in a timely and strict way.

• Undertaking related to Share Option Incentive Scheme:

  • The Company undertook not to provide financial support to incentive objects.
  • This undertaking was made on 11 April 2014 and is long-term.
  • It is valid and performed in a timely and strict way.

• Other undertakings:

  • Haier Group Corporation committed to supporting Qingdao Haier's development and reducing connected transactions.
  • This undertaking was made on 7 January 2011 and is valid for five years.
  • It is valid and performed in a timely and strict way.

Warnings and Explanations

• Accumulated net loss:
  • The report does not indicate any expected accumulated net loss or material change compared to the same period of last year.
  • No warnings or explanations are provided for such an event.

Appendix: Financial Statements

• Consolidated Balance Sheet (31 March 2016):

  • Unaudited.

  • Unit and Currency: RMB.

  • Current Assets:

    • Monetary Capital: 25,498,370,112.73
    • Financial assets measured at fair value and changes of which included in current profit and loss: 371,168.45
    • Bills receivables: 12,402,770,611.58
    • Trade receivables: 6,183,388,260.95
    • Prepayments: 722,458,824.10
    • Other receivables: 637,187,709.22
    • Inventories: 8,031,406,478.57
    • Other current assets: 1,457,310,133.83
    • Total current assets: 55,180,022,603.61

  • Non-current assets:

    • Available-for-sale financial assets: 1,466,206,302.83
    • Total non-current assets: Not fully listed in the table.

Conclusion

The report highlights the financial performance of Qingdao Haier for Q1 2016, including key changes in assets, liabilities, and shareholder structures. It also outlines significant events such as the acquisition of General Electric's household appliances business and various shareholder undertakings aimed at supporting the company's development and compliance. Financial statements are provided, though the quarterly report has not been audited.