WH Group Limited — Interim / Quarterly Report 2017

Oct 30, 2017

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, 2017 OF HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO., LTD.

On October 30, 2017 after trading hours (Hong Kong time), Shuanghui Development released its quarterly report for the nine months ended September 30, 2017.

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 30, 2017, Shuanghui Development filed its quarterly report with the Shenzhen Stock Exchange for the nine months ended September 30, 2017 (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.

SUMMARY OF RESULTS OF SHUANGHUI DEVELOPMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017

For the nine months ended September 30, 2017, Shuanghui Development processed 10.1 million hogs, representing an increase of 13% from the comparable period of 2016. External sales volume of meat products was 2.28 million metric tons, representing an increase of 4.7% from the comparable period of 2016. Turnover decreased by 2.67% from the comparable period of 2016 to RMB37,339 million. Net profit decreased by 2.90% from the comparable period of 2016 to RMB3,295 million.

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The unaudited consolidated statement of profit or loss for the nine months ended September 30, 2017 and the unaudited consolidated statement of financial position as at September 30, 2017 of Shuanghui Development contained in the Shuanghui Development Quarterly Report are provided below:

SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the nine months ended September 30, 2017

For	the nine months ended September 30, 2017
		For the nine months ended September 30,
		2017	2016
		RMB	RMB
		(unaudited)	(unaudited)
I.	Total operating income	37,339,363,172.44	38,362,821,191.76
	Including: Operating income	37,270,149,155.38	38,352,952,162.31
	Interest income	69,056,648.97	9,855,114.33
	Handling and commission income	157,368.09	13,915.12
	Less: Total operating costs	33,277,943,198.89	34,284,876,275.21
	Including: Operating costs	30,031,611,150.88	31,364,388,345.11
	Interest expenses	6,979,192.98	312,596.23
	Handling and commission charges	630,688.70	136,758.82
	Business tax and levies	262,488,053.00	143,141,310.26
	Selling expenses	1,832,155,380.08	1,705,259,686.81
	Administrative expenses	838,993,989.28	963,266,581.66
	Financial expenses	62,982,052.84	–11,580,465.18
	Impairment losses of assets	242,102,691.13	119,951,461.50
	Add: Investment income	44,977,169.58	90,456,740.45
	Including: Income from investments in
	associates and joint ventures	14,025,168.32	14,577,501.15
II.	Operating profit	4,106,397,143.13	4,168,401,657.00
	Add: Non-operating income	163,629,133.48	226,041,210.99
	Including: Gain on disposal of
	non-current assets	2,790,798.44	1,506,924.50
	Less: Non-operating expenses	24,204,667.11	19,332,637.62
	Including: Loss on disposal of
	non-current assets	23,359,044.79	18,165,833.13
III.	Total profit	4,245,821,609.50	4,375,110,230.37
	Less: Income tax expenses	950,348,960.81	981,251,152.47
IV.	Net profit	3,295,472,648.69	3,393,859,077.90
	Net profit attributable to owners of
	Shuanghui Development	3,151,038,717.00	3,277,067,649.66
	Profit or loss attributable to non-controlling interests	144,433,931.69	116,791,428.24
V.	Total comprehensive income	3,295,472,648.69	3,393,859,077.90
	Total comprehensive income attributable to
	owners of Shuanghui Development	3,151,038,717.00	3,277,067,649.66
	Total comprehensive income attributable to
	non-controlling interests	144,433,931.69	116,791,428.24
VI.	Earnings per share:
	(1)Basic earnings per share	0.9550	0.9932
	(2)Diluted earnings per share	0.9550	0.9932

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SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at September 30, 2017

As at As at September 30, 2017 January 1, 2017 RMB RMB (unaudited) (unaudited) Current assets: Cash and bank balances 5,068,440,765.73 3,303,688,588.09 Bills receivables 26,351,285.24 60,233,834.95 Trade receivables 109,764,261.58 100,835,614.91 Prepayments 37,953,007.36 57,586,136.30 Other receivables 29,724,821.37 47,682,603.89 Inventories 2,784,665,092.53 3,219,714,749.87 Non-current assets due within one year 3,241,517.73 2,334,034.42 Other current assets 371,510,336.21 248,978,269.65 Total current assets 8,431,651,087.75 7,041,053,832.08 Non current assets: Loans receivables 510,840,000.00 742,500,000.00 Available-for-sale investments 34,038,891.59 34,038,891.59 Long-term equity investments 174,554,182.54 176,666,881.24 Fixed assets 11,624,941,125.34 11,574,188,890.19 Construction in progress 161,895,019.21 532,599,950.74 Materials for construction of fixed assets 2,889,401.73 2,339,249.15 Biological assets 71,185,494.22 70,951,919.14 Intangible assets 1,052,751,385.34 1,042,586,917.58 Long-term prepaid expenses 68,341,927.20 62,792,467.66 Deferred tax assets 65,753,342.87 66,787,715.68 Other non-current assets 5,004,083.08 5,412,685.60 Total non-current assets 13,772,194,853.12 14,310,865,568.57 Total assets 22,203,845,940.87 21,351,919,400.65

Current liabilities:

Short-term borrowings 2,257,000,000.00 1,055,000,199.99 Deposit receipts 513,825,229.90 335,343,336.65 Derivative financial Instruments 15,464,983.12 – Trade payables 1,870,858,274.55 2,308,776,897.74 Receipts in advance 703,248,624.71 712,391,591.65 Other loans 629,064,395.37 – Accrued staff costs 526,925,197.50 600,782,437.34 Taxes payables 382,087,763.35 295,603,980.32 Interest payables 4,474,994.20 750,025.01 Dividend payables 40,165,171.21 118,669,486.46 Other payables 724,159,692.87 740,333,008.37 Non-current liabilities due within one year 327,726.78 341,855.36 Other current liabilities 7,084,094.86 8,440,201.50 Total current liabilities 7,674,686,148.42 6,176,433,020.39

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SHUANGHUI DEVELOPMENT

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) As at September 30, 2017

	As at	As at
	September 30, 2017	January 1, 2017
	RMB	RMB
	(unaudited)	(unaudited)
Non-current liabilities:
Long-term borrowings	5,243,628.55	5,825,999.87
Long-term other payables	68,300,000.00	–
Deferred income	48,642,529.05	51,986,672.16
Deferred tax liabilities	36,283,529.81	48,925,918.81
Total non-current liabilities	158,469,687.41	106,738,590.84
Total liabilities	7,833,155,835.83	6,283,171,611.23
Owners’ equity:
Share capital	3,299,558,284.00	3,299,558,284.00
Capital reserve	1,874,861,879.39	1,831,050,450.76
Other reserve	–7,887,141.39	–
Surplus reserve	1,831,906,631.94	1,831,906,631.94
General reserve	15,313.63	15,313.63
Retained profits	6,434,420,666.06	7,240,262,335.24
Total equity attributable to owners
of Shuanghui Development	13,432,875,633.63	14,202,793,015.57
Non-controlling interests	937,814,471.41	865,954,773.85
Total owners’ equity	14,370,690,105.04	15,068,747,789.42
Total liabilities and owners’ equity	22,203,845,940.87	21,351,919,400.65

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 Wan Long Chairman and Chief Executive Officer

Hong Kong, October 30, 2017

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 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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