WH Group Limited — Interim / Quarterly Report 2016

Aug 16, 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 SIX MONTHS ENDED JUNE 30, 2016 OF HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO., LTD

On August 16, 2016 after trading hours (Hong Kong time), Shuanghui Development released its interim report for the six months ended June 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 (“ SSE ”). As at the date of this announcement, WH Group Limited (the “ Company ”) indirectly owns approximately 73.26% equity interest in Shuanghui Development. On August 16, 2016 after trading hours (Hong Kong time), Shuanghui Development filed its interim report with SSE (the “ Shuanghui Development Interim Report ”) for the six months ended June 30, 2016. It is important to note that the unaudited consolidated financial results contained in Shuanghui Development Interim Report have been prepared in accordance with the China Accounting Standards for Business Enterprises. The Company prepares its consolidated financial results in accordance with International Financial Reporting Standards (“ IFRS ”). Accordingly, Shuanghui Development’s results reported herein differ from Shuanghui Development’s results contained in the Company’s consolidated financial statements, which include certain adjustments in order to conform to IFRS.

SUMMARY OF RESULTS OF SHUANGHUI DEVELOPMENT FOR THE SIX MONTHS ENDED JUNE 30, 2016

For the six months ended June 30, 2016, Shuanghui Development processed 6.21 million hogs, representing an increase of 0.09% from the comparable period of 2015. Total sales volume of meat products was 1.44 million metric tons, representing an increase of 11.16% from the comparable period of 2015. Turnover increased 25.42% from the comparable period of 2015 to RMB25,529 million. Net profit increased 8.44% from the comparable period of 2015 to RMB2,228 million.

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The unaudited consolidated statement of profit or loss for the six months ended June 30, 2016 and the unaudited consolidated balance sheet as at June 30, 2016 of Shuanghui Development contained in the Shuanghui Development Interim Report are provided below:

SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF PROFIT OR LOSS

		Six-month period	ended June 30,
		2016	2015
		RMB	RMB
I.	Total operating income	25,528,679,284.52	20,354,348,436.82
	Including: Operating income	25,527,227,750.49	20,354,348,436.82
	Interest income	1,451,534.03	–
II	Total operating costs	22,810,664,637.59	17,902,843,731.90
	Including: Operating costs	20,932,734,812.39	15,977,695,194.42
	Business tax and levies	99,917,554.08	89,498,885.82
	Selling expenses	1,099,154,420.78	1,106,144,810.43
	Administrative expenses	631,866,325.41	725,001,890.30
	Financial expenses	(13,502,967.47)	(11,272,067.25)
	Impairment losses of assets	60,494,492.40	15,775,018.18
	Add: Investment income	70,157,953.74	93,937,805.44
	Including: Income from investments in
	associates and joint ventures	10,574,585.78	7,654,948.81
III	Operating profit	2,788,172,600.67	2,545,442,510.36
	Add: Non-operating income	111,510,493.90	96,721,811.68
	Including: Gain on disposal of non-current
	assets	488,786.42	530,516.36
	Less: Non-operating expenses	12,072,224.36	4,665,838.20
	Including: Loss on disposal of non-current
	assets	11,233,161.59	4,307,805.65
IV.	Total profit	2,887,610,870.21	2,637,498,483.84
	Less: Income tax expenses	659,451,358.32	582,777,774.56
V.	Net profit	2,228,159,511.89	2,054,720,709.28
	Net profit attributable to owners of Shuanghui
	Development	2,151,463,456.36	1,982,790,580.87
	Profit or loss attributable to non-controlling interests	76,696,055.53	71,930,128.41
VI.	Total comprehensive income	2,228,159,511.89	2,054,720,709.28
	Total comprehensive income attributable to
	owners of Shuanghui Development	2,151,463,456.36	1,982,790,580.87
	Total comprehensive income attributable to
	non-controlling interests	76,696,055.53	71,930,128.41
VII	Earnings per share:
	(1)Basic earnings per share	0.6518	0.6007
	(2)Diluted earnings per share	0.6518	0.6007

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SHUANGHUI DEVELOPMENT CONSOLIDATED BALANCE SHEET

At June 30, At January 1, 2016 2016 RMB RMB Current assets: Cash and bank balances 1,432,148,750.09 2,426,692,246.83 Bills receivables 59,441,431.92 34,175,619.57 Trade receivables 112,217,562.04 131,744,098.38 Prepayments 34,243,286.19 76,576,324.22 Other receivables 104,719,236.16 53,131,097.03 Inventories 2,882,247,952.93 3,384,796,676.51 Non-current assets due within one year 2,406,000.08 2,272,659.63 Other current assets 2,065,794,448.19 2,806,370,636.74 Total current assets 6,693,218,667.60 8,915,759,358.91 Non-current assets: Available-for-sale financial assets 34,038,891.59 – Long-term equity investments 168,611,222.72 161,593,594.79 Fixed assets 11,899,324,005.65 11,776,311,707.43 Construction in progress 403,340,217.23 715,348,798.08 Materials for construction of fixed assets 5,065,592.37 6,809,492.08 Biological assets 61,461,884.99 52,801,618.67 Intangible assets 1,060,834,239.18 1,074,087,813.83 Long-term prepaid expenses 62,219,458.76 72,587,527.77 Deferred tax assets 81,093,207.67 64,615,093.72 Other non-current assets 9,416,816.24 44,552,160.88 Total non-current assets 13,785,405,536.40 13,968,707,807.25 Total assets 20,478,624,204.00 22,884,467,166.16 Current liabilities: Short-term borrowings 607,000,000.00 600,000,000.00 Bills payables 5,876,895.00 4,185,763.00 Trade payables 1,836,458,458.75 2,313,678,989.96 Receipts in advance 512,463,225.31 636,136,487.67 Accrued staff costs 419,545,503.41 647,498,486.25 Taxes payables 374,909,940.21 309,194,891.25 Interest payables 81,666.66 155,615.82 Dividend payables 131,357,705.92 1,423,459.07 Other payables 728,395,838.03 596,604,938.82 Non-current liabilities due within one year 326,785.54 320,004.61 Other current liabilities 8,848,552.33 10,103,449.79 Total current liabilities 4,625,264,571.16 5,119,302,086.24

Total non-current assets Total assets Current liabilities:

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At June 30,2016At January 1,2016RMBRMB	At June 30,2016At January 1,2016RMBRMB
At June 30,2016At January 1,2016RMBRMB
Non-current liabilities:Long-term borrowings5,730,325.215,758,303.93Deferred gains54,213,403.8056,543,030.47Deferred tax liabilities14,525,417.0616,295,833.83Total non-current liabilities74,469,146.0778,597,168.23Total liabilities4,699,733,717.235,197,899,254.47Owners’ equity:Share capital330086767200330086767200
,,,.,,,.Capital reserve1,790,446,608.901,730,292,819.63Surplus reserve1,831,906,631.941,831,906,631.94Retained profits7,956,287,168.599,929,271,567.23Total equity attributable to owners ofShuanghui Development14,879,508,081.4316,792,338,690.80Non-controlling interests899,382,405.34894,229,220.89
Total owners’ equity15,778,890,486.7717,686,567,911.69Total liabilities and owners’ equity20,478,624,204.0022,884,467,166.16

If you wish to review the Shuanghui Development Interim 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, August 16, 2016

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

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