WH Group Limited — Annual Report 2020

Mar 30, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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WH Group Limited 萬洲國際有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 288)

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2020 OF HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO., LTD.

On March 30, 2021 after trading hours (Hong Kong time), Shuanghui Development released its annual report for the year ended December 31, 2020.

Henan Shuanghui Investment & Development Co., Ltd. (河南雙匯投資發展股份有限公 司) (“ Shuanghui Development ”) is a company incorporated in the People’s Republic of China whose shares are listed on the Shenzhen Stock Exchange (the “ Shenzhen Stock Exchange ”). As at the date of this announcement, WH Group Limited (the “ Company ”) indirectly owns approximately 70.33% equity interest in Shuanghui Development. On March 30, 2021, Shuanghui Development filed its annual report with the Shenzhen Stock Exchange for the year ended December 31, 2020 (the “ Shuanghui Development Annual Report ”). It is important to note that the audited consolidated financial results contained in the Shuanghui Development Annual Report have been prepared in accordance with the China Accounting Standards for Business Enterprises. The Company prepares its consolidated financial results in accordance with the International Financial Reporting Standards (the “ IFRS ”). Accordingly, Shuanghui Development’s results reported therein differ from Shuanghui Development’s results contained in the Company’s consolidated financial statements, which include certain adjustments in order to conform to the IFRS.

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SUMMARY OF RESULTS OF SHUANGHUI DEVELOPMENT FOR THE YEAR ENDED DECEMBER 31, 2020

For the year ended December 31, 2020, external sales volume of meat products was 3.05 million metric tons, representing a decrease of 3.06% from the comparable period of 2019. Turnover increased by 22.51% from the comparable period of 2019 to RMB73,935 million. Net profit increased by 12.42% from the comparable period of 2019 to RMB6,370 million.

The audited consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2020 and the audited consolidated statement of financial position as at December 31, 2020 contained in the Shuanghui Development Annual Report are provided below:

SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended December 31, 2020

		For the year ended	December 31,
		2020	2019
		RMB	RMB
		(audited)	(audited)
I.	Total operating income	73,935,193,285.13	60,348,305,743.59
	Including: Operating income	73,862,643,466.60	60,309,731,762.99
	Interest income	72,512,895.61	38,487,695.49
	Handling and commission income	36,922.92	86,285.11
II.	Total operating costs	65,663,296,050.98	53,525,288,222.98
	Including: Operating costs	61,114,007,702.27	48,976,782,883.71
	Interest expenses	26,748,793.32	51,025,016.79
	Handling and commission charges	497,026.92	688,202.93
	Tax and levies	340,640,363.22	297,129,008.21
	Selling expenses	2,660,816,208.54	2,705,930,379.68
	Administrative expenses	1,392,263,457.32	1,308,001,261.00
	Research and development
	expenses	95,809,346.10	88,284,314.96
	Financial expenses	32,513,153.29	97,447,155.70
	Including: Interest expenses	98,647,306.89	122,075,794.19
	Interest income	68,929,301.43	44,866,867.08
	Add: Other income	173,779,512.26	188,368,924.63
	Investment income	393,615,359.91	142,743,112.09
	Including: Income from investments
	in associates and joint
	ventures	18,979,231.14	14,304,001.88
	(Loss)/gain on fair value change	–4,662,519.15	27,879,591.73
	Impairment for credit (loss)/gain	–2,918,559.78	141,773.61
	Impairment losses of assets	–838,771,542.13	–334,907,147.33
	Gain on disposal of assets	10,632,050.73	4,432,083.65

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		For the year ended	December 31,
		2020	2019
		RMB	RMB
		(audited)	(audited)
III.	Operating profit	8,003,571,535.99	6,851,675,858.99
	Add: Non-operating income	30,937,900.68	16,577,096.31
	Less: Non-operating expenses	61,550,982.25	29,759,622.12
IV.	Total profit	7,972,958,454.42	6,838,493,333.18
	Less: Income tax expenses	1,603,156,126.62	1,172,504,439.47
V.	Net profit	6,369,802,327.80	5,665,988,893.71
	Including: Net profit from continuing
	operations	6,369,802,327.80	5,665,988,893.71
	Net profit from discontinued
	operations	—	—
	Net profit attributable to owners of
	Shuanghui Development	6,255,513,991.33	5,437,612,565.07
	Profit or loss attributable to
	non-controlling interests	114,288,336.47	228,376,328.64
VI.	Other comprehensive income, net of tax	—	–167,642.00
	Other comprehensive income, net of tax
	attributable to owners of Shuanghui
	Development	—	–85,497.42
	Including: Item that may be reclassified
	subsequently to profit or loss	—	–85,497.42
	Including: Change in cash flow hedge	—	–85,497.42
	Other comprehensive income, net of tax
	attributable to non-controlling interests	—	–82,144.58
VII.	Total comprehensive income	6,369,802,327.80	5,665,821,251.71
	Total comprehensive income attributable to
	owners of Shuanghui Development	6,255,513,991.33	5,437,527,067.65
	Total comprehensive income attributable to
	non-controlling interests	114,288,336.47	228,294,184.06
VIII.	Earnings per share
	(1) Basic earnings per share	1.8642	1.6382
	(2) Diluted earnings per share	1.8642	1.6382

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SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at December 31, 2020

Current assets: Cash and bank balances Loan receivables from financial institutions Exchange financial assets Bills receivables Trade receivables Prepayments Other receivables Inventories Loans receivables Other current assets Total current assets Non-current assets: Long-term equity investments Other non-current financial assets Fixed assets Construction in progress Biological assets Intangible assets Development cost Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets	As at December 31, 2020 RMB (audited) 8,485,885,001.20 300,000,000.00 5,735,620,003.05 44,600,000.00 235,909,236.00 245,458,023.72 55,305,654.74 6,377,695,426.57 80,097,600.00 513,368,484.76 22,073,939,430.04 261,797,620.67 67,701,365.25 10,303,818,090.88 323,388,219.78 148,164,853.70 1,026,638,098.12 6,353,699.86 184,532,694.40 187,486,694.75 120,060,994.51 12,629,942,331.92 34,703,881,761.96	As at January 1, 2020 RMB (audited) 3,455,331,419.03 100,000,000.00 3,052,713,858.41 58,965,192.00 153,998,532.63 212,027,935.58 85,654,976.38 8,801,425,418.16 24,600,000.00 358,528,085.64 16,303,245,417.83 177,519,153.68 66,370,029.04 10,575,391,363.86 174,313,486.48 54,434,108.35 980,706,917.51 2,735,535.77 72,615,850.60 205,139,943.50 20,868,724.50 12,330,095,113.29 28,633,340,531.12

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rrent liabilities: Short-term borrowings Bills payables Trade payables Receipts in advance Contract liabilities Other loans Deposit receipts Accrued staff costs Taxation payables Other payables Including: Interest payables Dividend payables Non-current liabilities due within one year Other current liabilities tal current liabilities on-current liabilities: Long-term borrowings Long-term payables Provision Deferred income Deferred tax liabilities tal non-current liabilities tal liabilities wners’ equity: Share capital Capital reserve Surplus reserve General reserve Retained profits tal equity attributable to owners of Shuanghui Development Non-controlling interests tal owners’ equity tal liabilities and owners’ equity	As at December 31, 2020 RMB (audited) 2,382,649,141.34 4,000,000.00 1,708,284,564.46 — 2,448,851,578.28 819,330,088.75 49,050,315.18 1,113,665,467.11 411,792,409.48 885,599,607.38 — 89,896,338.39 1,170,765.56 170,555,854.91 9,994,949,792.45 15,098,464.11 66,216,080.56 2,500,000.00 289,140,618.06 203,257,840.00 576,213,002.73 10,571,162,795.18 3,464,661,213.00 8,072,272,036.07 1,831,906,631.94 109,386,472.28 10,284,817,369.31 23,763,043,722.60 369,675,244.18 24,132,718,966.78 34,703,881,761.96	As at January 1, 2020 RMB (audited) 3,277,465,169.50 137,182,676.99 2,946,334,768.68 1,894,352,662.62 — 627,543,125.04 42,218,682.73 939,141,147.34 381,237,939.61 970,114,482.45 311,406.24 123,607,556.39 67,979,596.11 — 11,283,570,251.07 16,188,598.83 — — 66,431,735.86 151,759,133.03 234,379,467.72 11,517,949,718.79 3,319,282,190.00 1,250,180,577.63 1,831,906,631.94 64,079,524.71 10,022,251,033.89 16,487,699,958.17 627,690,854.16 17,115,390,812.33 28,633,340,531.12

Current liabilities:

Total current liabilities

Non-current liabilities:

Total non-current liabilities

Total liabilities

Owners’ equity:

Total equity attributable to owners of Shuanghui Development Non-controlling interests Total owners’ equity

Total liabilities and owners’ equity

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If you wish to review the Shuanghui Development Annual Report in full, please visit www.szse.cn.

By order of the board of directors of WH Group Limited Wan Long Chairman and Chief Executive Officer

Hong Kong, March 30, 2021

As at the date of this announcement, the executive directors of the Company are Mr. WAN Long, Mr. WAN Hongjian, Mr. GUO Lijun, Mr. Dennis Pat Rick ORGAN and Mr. MA Xiangjie; the non-executive director of the Company is Mr. JIAO Shuge; and the independent non-executive directors of the Company are Mr. HUANG Ming, Mr. LEE Conway Kong Wai and Mr. LAU, Jin Tin Don.

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