WH Group Limited — Interim / Quarterly Report 2016

Oct 26, 2016

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)

UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 OF HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO., LTD.

On October 26, 2016 after trading hours (Hong Kong time), Shuanghui Development released its quarterly report for the nine months ended September 30, 2016.

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 73.25% equity interest in Shuanghui Development. On October 26, 2016, Shuanghui Development filed its quarterly report with the Shenzhen Stock Exchange for the nine months ended September 30, 2016 (the “ Shuanghui Development Quarterly Report ”). It is important to note that the unaudited consolidated financial results contained in Shuanghui Development Quarterly 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 NINE MONTHS ENDED SEPTEMBER 30, 2016

For the nine months ended September 30, 2016, Shuanghui Development processed 8.92 million hogs, representing a decrease of 0.57% from the comparable period of 2015. Total sales volume of meat products was 2.18 million metric tons, representing an increase of 9.07% from the comparable period of 2015. Turnover increased by 19.12% from the comparable period of 2015 to RMB38,363 million. Net profit increased by 5.12% from the comparable period of 2015 to RMB4,375 million.

The unaudited consolidated statement of profit or loss for the nine months ended September 30, 2016 and the unaudited consolidated balance sheet as at September 30, 2016 of Shuanghui Development are provided below:

SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the nine months ended September 30, 2016

			Nine-month	period ended
			September 30,
			2016	2015
			RMB	RMB
I.	Total operating income		38,362,821,191.76	32,204,839,630.15
	Including:	Operating income	38,352,952,162.31	32,204,839,630.15
		Interest income	9,855,114.33	–
		Handling fee and commission
		income	13,915.12	–
	Less:	Total operating costs	34,284,876,275.21	28,329,454,767.31
		Including: Operating costs	31,364,388,345.11	25,336,715,844.99
		Interest expenses	312,596.23	–
		Handling fee and
		commission expenses	136,758.82	–
		Business tax and levies	143,141,310.26	142,073,260.29
		Selling expenses	1,705,259,686.81	1,726,346,546.44
		Administrative expenses	963,266,581.66	1,082,028,503.36
		Financial expenses	–11,580,465.18	6,121,081.00
		Impairment losses of
		assets	119,951,461.50	36,169,531.23
	Add:	Investment income	90,456,740.45	125,186,906.91
		Including: Income from investments
		in associates and joint
		ventures	14,577,501.15	8,087,055.55
II.	Operating	profit	4,168,401,657.00	4,000,571,769.75
	Add:	Non-operating income	226,041,210.99	171,971,711.08
		Including: Gain on disposal of non-
		current assets	1,506,924.50	812,794.57
	Less:	Non-operating expenses	19,332,637.62	10,354,679.94
		Including: Loss on disposal of non-
		current assets	18,165,833.13	9,160,335.49

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SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF PROFIT OR LOSS (CONTINUED)

For the nine months ended September 30, 2016

		Nine-month	period ended
		September 30,
		2016	2015
		RMB	RMB
III.	Total profit	4,375,110,230.37	4,162,188,800.89
	Less:Income tax expenses	981,251,152.47	925,606,117.22
IV.	Net profit	3,393,859,077.90	3,236,582,683.67
	Net profit attributable to owners of Shuanghui
	Development	3,277,067,649.66	3,119,281,874.87
	Profit or loss attributable to non-controlling
	interests	116,791,428.24	117,300,808.80
V.	Total comprehensive income	3,393,859,077.90	3,236,582,683.67
	Total comprehensive income attributable to
	owners of Shuanghui Development	3,277,067,649.66	3,119,281,874.87
	Total comprehensive income attributable to
	non-controlling interests	116,791,428.24	117,300,808.80
VI.	Earnings per share:
	(1)Basic earnings per share	0.9932	0.9454
	(2)Diluted earnings per share	0.9932	0.9454

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SHUANGHUI DEVELOPMENT CONSOLIDATED BALANCE SHEET As at September 30, 2016

SHUANGHUI DEVECONSOLIDATED BAs at September 30, 2	LOPALA016	MENTNCE SHE	ET			AtJanuary 1,	AtJanuary 1,	AtJanuary 1,
				Septem	Atber 30,	Janua	Atry 1,
Current assets:Cash and bank bala	ces				2016RMB	2,426,692,24	2016RMB
				2,727,863	,825.14		6.83
Bills receivablesTrade receivablesPrepaymentsOther receivablesInventoriesNon-current assetsOther current assetsTotal current assetsNon current assets:Loans and advancesAvailable-for-sale iLong-term equity inFixed assetsConstruction in proMaterials for constrBiological assetsIntangible assetsLong-term prepaidDeferred tax assetsOther non-current aTotal non-current asTotal assets				38,648104,685	,722.10,660.50	34,175,61131,744,09	9.578.38
			ear	29,8285,6923,265,9421,567	,492.13,251.81,722.35,875.93	76,576,3253,131,093,384,796,672,272,65	4.227.036.519.63
	due w	ithin one y
				879,0337133260	,418.5996855	2,806,370,63891575935	6.74891
				,,	,.	,,,161,593,591,776,311,70715,348,79	.
				742,50034,038172,72811,726,838462,903	,000.00,891.59,714.55,517.171,499.23		––4.797.438.08
	nvest	ment
	vestm	ents
	gress
	uctio	n of fixed a	ssets	3,109	,261.39	6,809,49	2.08
				67,328	,122.83	52,801,61	8.67
				1,053,148	,972.18	1,074,087,81	3.83
	expen	ses				72,587,5264,615,0944,552,163,968,707,80288446716
				58,37682,1945,05014,408,2172154147	,414.44,939.12,510.42,842.92181147		7.773.720.887.25616
	ssets
	sets
				,,	,.	,,,	.
Current liabilities:Short-term borrowiDeposit taking andBills payablesTrade payablesReceipts in advanceAccrued staff costsTaxes payablesInterest payablesDividend payablesOther payablesNon-current liabilitiOther current liabili	ngsdepos	its from pe	er companies	1,628,000310,8365,876	,000.00,853.09,895.00		0.00–3.00
			ne year				9.967.676.251.255.829.078.824.619.79
	es duties	e within o
Total current liabilities7,469,738,880.305,119,302,086.24

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SHUANGHUI DEVELOPMENT CONSOLIDATED BALANCE SHEET (CONTINUED)

As at September 30, 2016

	At	At
	September 30,	January 1,
	2016	2016
	RMB	RMB
Non-current liabilities:
Long-term borrowings	5,588,494.91	5,758,303.93
Deferred income	52,758,584.60	56,543,030.47
Deferred tax liabilities	14,566,478.39	16,295,833.83
Total non-current liabilities	72,913,557.90	78,597,168.23
Total liabilities	7,542,652,438.20	5,197,899,254.47
Owners’ equity:
Share capital	3,299,558,284.00	3,300,867,672.00
Capital reserve	1,815,309,165.62	1,730,292,819.63
Surplus reserve	1,831,906,631.94	1,831,906,631.94
Retained profits	6,112,288,906.49	9,929,271,567.23
Total equity attributable to owners of
Shuanghui Development	13,059,062,988.05	16,792,338,690.80
Non-controlling interests	939,763,385.22	894,229,220.89
Total owners’ equity	13,998,826,373.27	17,686,567,911.69
Total liabilities and owners’ equity	21,541,478,811.47	22,884,467,166.16

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

By order of the board of directors of WH Group Limited Chau Ho Company Secretary

Hong Kong, October 26, 2016

As at the date of this announcement, the executive directors of the Company are Mr. WAN Long, Mr. GUO Lijun, Mr. ZHANG Taixi, Mr. SULLIVAN Kenneth Marc and Mr. YOU Mu; the non-executive director of the Company is Mr. JIAO Shuge; and the independent nonexecutive directors of the Company are Mr. HUANG Ming, Mr. LEE Conway Kong Wai and Mr. LAU, Jin Tin Don.

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