WH Group Limited — Interim / Quarterly Report 2021

Oct 26, 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)

UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021 OF HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO., LTD.

On 26 October 2021 after trading hours (Hong Kong time), Shuanghui Development released its quarterly report for the nine months ended 30 September 2021.

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 26 October 2021, Shuanghui Development filed its quarterly report with the Shenzhen Stock Exchange for the nine months ended 30 September 2021 (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 30 SEPTEMBER 2021

For the nine months ended 30 September 2021, Shuanghui Development’s external sales volume of meat products was 2.44 million metric tons, representing an increase of 5.8% from the comparable period of 2020. Turnover decreased by 8.46% from the comparable period of 2020 to RMB51,044 million. Net profit decreased by 31.2% from the comparable period of 2020 to RMB3,467 million.

The unaudited consolidated statement of profit or loss and other comprehensive income for the nine months ended 30 September 2021 and the unaudited consolidated statement of financial position as at 30 September 2021 contained in Shuanghui Development Quarterly Report are provided below:

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

For the nine months ended 30 September 2021

		For the nine months	ended 30 September
		2021	2020
		RMB	RMB
		(unaudited)	(unaudited)
I.	Total operating income	51,044,489,630.05	55,763,697,598.02
	Including: Operating income	50,958,105,407.72	55,726,638,773.94
	Interest income	86,345,664.00	37,025,542.68
	Handling and commission income	38,558.33	33,281.40
II.	Total operating costs	45,632,719,937.65	49,271,566,501.73
	Including: Operating costs	42,037,297,749.07	45,945,655,612.44
	Interest expenses	17,599,839.26	20,866,869.36
	Handling and commission charges	444,664.74	351,242.18
	Tax and levies	230,038,030.95	269,165,646.00
	Selling expenses	2,262,911,842.19	1,976,584,657.42
	Administrative expenses	967,415,158.45	974,024,372.84
	Research and development expenses	108,221,843.33	64,062,538.63
	Financial expenses	8,790,809.66	20,855,562.86
	Including: Interest expenses	98,894,622.95	76,003,126.78
	Interest income	90,354,351.90	59,735,865.16
	Add: Other income	353,098,234.63	141,727,410.72
	Investment income	188,508,300.10	320,253,684.73
	Including: Income from investments
	in associates and joint ventures	22,456,050.57	14,329,596.85
	Loss on fair value change	–25,898,789.50	–33,720,669.82
	Impairment for credit loss	–3,964,448.62	–3,695,584.65
	Impairment losses of assets	–1,615,712,918.12	–629,264,985.51
	Gain on disposal of assets	5,109,211.47	10,623,884.18

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		For the nine months	ended 30 September
		2021	2020
		RMB	RMB
		(unaudited)	(unaudited)
III.	Operating profit	4,312,909,282.36	6,298,054,835.94
	Add: Non-operating income	14,940,509.63	26,050,617.59
	Less: Non-operating expenses	35,003,118.75	51,910,040.01
IV.	Total profit	4,292,846,673.24	6,272,195,413.52
	Less: Income tax expenses	826,134,304.25	1,235,075,082.51
V.	Net profit	3,466,712,368.99	5,037,120,331.01
	Including: Net profit from continuing operations	3,466,712,368.99	5,037,120,331.01
	Net profit from discontinued operations	—	—
	Net profit attributable to owners of
	Shuanghui Development	3,452,886,928.22	4,938,309,156.77
	Profit or loss attributable to non-controlling interests	13,825,440.77	98,811,174.24
VI.	Other comprehensive income, net of tax	—	—
	Other comprehensive income, net of tax attributable
	to owners of Shuanghui Development	—	—
	Other comprehensive income, net of tax attributable
	to non-controlling interests	—	—
VII.	Total comprehensive income	3,466,712,368.99	5,037,120,331.01
	Total comprehensive income attributable to owners of
	Shuanghui Development	3,452,886,928.22	4,938,309,156.77
	Total comprehensive income attributable to non-
	controlling interests	13,825,440.77	98,811,174.24
**VIII. **	Earnings per share
	(1) Basic earnings per share	0.9966	1.4878
	(2) Diluted earnings per share	0.9966	1.4878

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SHUANGHUI DEVELOPMENT CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2021

	As at	As at
	30 September 2021	1 January 2021
	RMB	RMB
	(unaudited)	(audited)
Current assets:
Cash and bank balances	8,200,568,649.33	8,485,885,001.20
Loan receivables from financial institutions	600,000,000.00	300,000,000.00
Exchange financial assets	2,016,353,930.09	5,735,620,003.05
Bills receivables	34,400,000.00	44,600,000.00
Trade receivables	297,034,909.33	235,909,236.00
Prepayments	269,451,571.79	245,458,023.72
Other receivables	35,215,860.41	55,305,654.74
Inventories	7,252,432,797.70	6,377,695,426.57
Loans receivables	84,427,200.00	80,097,600.00
Other current assets	1,459,011,044.96	513,368,484.76
Total current assets	20,248,895,963.61	22,073,939,430.04
Non-current assets:
Debt investments	100,031,015.77	—
Long-term equity investments	318,029,600.30	261,797,620.67
Other non-current financial assets	76,068,648.66	67,701,365.25
Fixed assets	10,030,139,379.79	10,303,818,090.88
Construction in progress	2,422,502,586.74	323,388,219.78
Biological assets	173,409,463.17	148,164,853.70
Right-of-use assets	356,545,673.21	—
Intangible assets	1,027,579,730.50	1,026,638,098.12
Development cost	9,744,547.62	6,353,699.86
Long-term prepaid expenses	49,005,856.62	184,532,694.40
Deferred tax assets	215,157,263.19	187,486,694.75
Other non-current assets	326,315,185.23	120,060,994.51
Total non-current assets	15,104,528,950.80	12,629,942,331.92
Total assets	35,353,424,914.41	34,703,881,761.96

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As at30 September 2021RMB(unaudited)Current liabilities:Short-term borrowings5,529,346,439.21Bills payables34,303,054.18Trade payables2,055,420,575.58Contract liabilities1,824,730,496.41Other loans994,728,302.05Deposit receipts54,406,326.85Accrued staff costs814,762,028.81Taxation payables508,124,625.91Other payables835,139,091.57Including: Dividend payables—Non-current liabilities due within one year16,046,872.19Other current liabilities142,614,240.36Total current liabilities12,809,622,053.12Non-current liabilities:Long-term borrowings13,242,884.05Lease liabilities208,332,136.76Long-term payables65,705,688.89Provision—Deferred income287,833,037.64Deferred tax liabilities206,468,327.88Total non-current liabilities781,582,075.22Total liabilities13,591,204,128.34	As at30 September 2021RMB(unaudited)Current liabilities:Short-term borrowings5,529,346,439.21Bills payables34,303,054.18Trade payables2,055,420,575.58Contract liabilities1,824,730,496.41Other loans994,728,302.05Deposit receipts54,406,326.85Accrued staff costs814,762,028.81Taxation payables508,124,625.91Other payables835,139,091.57Including: Dividend payables—Non-current liabilities due within one year16,046,872.19Other current liabilities142,614,240.36Total current liabilities12,809,622,053.12Non-current liabilities:Long-term borrowings13,242,884.05Lease liabilities208,332,136.76Long-term payables65,705,688.89Provision—Deferred income287,833,037.64Deferred tax liabilities206,468,327.88Total non-current liabilities781,582,075.22Total liabilities13,591,204,128.34	As at30 September 2021RMB(unaudited)Current liabilities:Short-term borrowings5,529,346,439.21Bills payables34,303,054.18Trade payables2,055,420,575.58Contract liabilities1,824,730,496.41Other loans994,728,302.05Deposit receipts54,406,326.85Accrued staff costs814,762,028.81Taxation payables508,124,625.91Other payables835,139,091.57Including: Dividend payables—Non-current liabilities due within one year16,046,872.19Other current liabilities142,614,240.36Total current liabilities12,809,622,053.12Non-current liabilities:Long-term borrowings13,242,884.05Lease liabilities208,332,136.76Long-term payables65,705,688.89Provision—Deferred income287,833,037.64Deferred tax liabilities206,468,327.88Total non-current liabilities781,582,075.22Total liabilities13,591,204,128.34	As at30 September 2021RMB(unaudited)Current liabilities:Short-term borrowings5,529,346,439.21Bills payables34,303,054.18Trade payables2,055,420,575.58Contract liabilities1,824,730,496.41Other loans994,728,302.05Deposit receipts54,406,326.85Accrued staff costs814,762,028.81Taxation payables508,124,625.91Other payables835,139,091.57Including: Dividend payables—Non-current liabilities due within one year16,046,872.19Other current liabilities142,614,240.36Total current liabilities12,809,622,053.12Non-current liabilities:Long-term borrowings13,242,884.05Lease liabilities208,332,136.76Long-term payables65,705,688.89Provision—Deferred income287,833,037.64Deferred tax liabilities206,468,327.88Total non-current liabilities781,582,075.22Total liabilities13,591,204,128.34	As at1 January 2021RMB(audited)2,382,649,141.344,000,000.001,708,284,564.462,448,851,578.28819,330,088.7549,050,315.181,113,665,467.11411,792,409.48885,599,607.3889,896,338.391,170,765.56170,555,854.919,994,949,792.4515,098,464.11—66,216,080.562,500,000.00289,140,618.06203,257,840.00576,213,002.7310,571,162,795.18
	ent liabilities:ort-term borrowingslls payablesade payablesntract liabilitiesher loanseposit receiptscrued staff costsxation payablesher payablescluding: Dividend payableson-current liabilities due within one yearher current liabilities	5,529,334,32,055,41,824,7994,754,4814,7508,1835,116,0142,6	46,439.2103,054.1820,575.5830,496.4128,302.05	2,382,649,141.344,000,000.001,708,284,564.462,448,851,578.28819,330,088.7549,050,315.181,113,665,467.11411,792,409.48885,599,607.3889,896,338.391,170,765.56170,555,854.91
			06,326.8562,028.8124,625.9139,091.57—46,872.1914,240.36
		12,809,622,053.1213,242,884.05208,332,136.7665,705,688.89—287,833,037.64206,468,327.88781,582,075.2213,591,204,128.34

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As at30 September 2021RMB(unaudited)Owners’ equity:Share capital3,464,661,213.00Capital reserve8,072,421,605.09Surplus reserve1,831,906,631.94General reserve109,386,472.28Retained profits7,917,073,459.69Total equity attributable to owners ofShuanghui Development21,395,449,382.00Non-controlling interests366,771,404.07Total owners’ equity21,762,220,786.07Total liabilities and owners’ equity35,353,424,914.41

As at1 January 2021RMB(audited)3,464,661,213.008,072,272,036.071,831,906,631.94109,386,472.2810,284,817,369.3123,763,043,722.60369,675,244.1824,132,718,966.7834,703,881,761.96

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

Hong Kong, 26 October 2021

As at the date of this announcement, the executive directors of the Company are Mr. WAN Long, Mr. GUO Lijun, Mr. WAN Hongwei, Mr. MA Xiangjie and Mr. Charles Shane SMITH; 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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