WH Group Limited — Interim / Quarterly Report 2021

Aug 12, 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 SIX MONTHS ENDED 30 JUNE 2021 OF HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO., LTD.

On 12 August 2021 after trading hours (Hong Kong time), Shuanghui Development released its interim report for the six months ended 30 June 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 12 August 2021, Shuanghui Development filed its interim report with the Shenzhen Stock Exchange for the six months ended 30 June 2021 (the “ Shuanghui Development Interim Report ”). It is important to note that the unaudited consolidated financial results contained in the 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 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 SIX MONTHS ENDED 30 JUNE 2021

For the six months ended 30 June 2021, Shuanghui Development’s external sales volume of meat products was 1.58 million metric tons, representing an increase of 5.5% from the comparable period of 2020. Turnover decreased by 4.0% from the comparable period of 2020 to RMB34,910 million. Net profit decreased by 17.9% from the comparable period of 2020 to RMB2,553 million.

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

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

For the six months ended 30 June 2021

			For the six months ended 30 June	For the six months ended 30 June
			2021	2020
			RMB	RMB
			(unaudited)	(unaudited)
I.	Total operating income		34,909,906,881.06	36,373,403,361.03
	Including:	Operating income	34,841,777,479.44	36,347,557,588.18
		Interest income	68,129,401.62	25,842,334.21
		Handling and commission income	—	3,438.64
II.	Total operating costs		31,420,364,847.12	32,255,826,500.65
	Including:	Operating costs	29,181,083,292.78	30,182,062,651.80
		Interest expenses	11,737,059.69	14,853,025.80
		Handling and commission charges	294,386.13	234,811.16
		Tax and levies	150,606,480.69	165,209,130.18
		Selling expenses	1,406,531,279.01	1,252,733,474.05
		Administrative expenses	621,000,185.30	564,153,246.67
		Research and development expenses	46,870,091.31	37,357,677.31
		Financial expenses	2,242,072.21	39,222,483.68
		Including: Interest expenses	58,348,628.95	57,181,319.59
		Interest income	55,785,685.55	22,258,128.05
	Add:	Other income	184,689,514.39	121,784,409.55
		Investment income	106,253,114.59	123,710,970.77
		Including: Income from investments in
		associates and joint ventures	10,161,470.03	10,767,064.74
		Gain/(loss) on fair value change	16,566,055.21	–8,930,931.08
		Impairment for credit loss	–5,917,008.59	–1,487,030.38
		Impairment losses of assets	–653,919,048.74	–473,124,433.64
		Gain on disposal of assets	3,823,759.44	9,024,697.09

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		For the six months	ended 30 June
		2021	2020
		RMB	RMB
		(unaudited)	(unaudited)
III.	Operating profit	3,141,038,420.24	3,888,554,542.69
	Add: Non-operating income	12,708,320.61	21,581,197.43
	Less: Non-operating expenses	11,309,542.73	28,947,033.29
IV.	Total profit	3,142,437,198.12	3,881,188,706.83
	Less: Income tax expenses	589,318,687.44	769,870,402.29
V.	Net profit	2,553,118,510.68	3,111,318,304.54
	Including: Net profit from continuing operations	2,553,118,510.68	3,111,318,304.54
	Net profit from discontinued operations	—	—
	Net profit attributable to owners of
	Shuanghui Development	2,537,093,120.84	3,040,933,153.21
	Profit or loss attributable to non-controlling interests	16,025,389.84	70,385,151.33
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	2,553,118,510.68	3,111,318,304.54
	Total comprehensive income attributable to owners
	of Shuanghui Development	2,537,093,120.84	3,040,933,153.21
	Total comprehensive income attributable to
	non-controlling interests	16,025,389.84	70,385,151.33
**VIII. **	Earnings per share
	(1) Basic earnings per share	0.7323	0.9161
	(2) Diluted earnings per share	0.7323	0.9161

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SHUANGHUI DEVELOPMENT

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2021

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 Right-of-use assets Intangible assets Development cost Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets	As at 30 June 2021 RMB (unaudited) 5,204,437,023.71 400,000,000.00 3,439,838,846.55 59,140,000.00 231,219,316.84 72,876,170.64 37,686,109.50 7,757,773,186.61 74,272,320.00 879,973,819.35 18,157,216,793.20 254,596,992.53 76,048,576.96 9,961,060,595.67 1,052,651,325.74 128,469,240.25 358,509,359.80 1,027,714,836.43 8,614,046.79 51,346,173.58 219,967,938.36 522,662,159.37 13,661,641,245.48 31,818,858,038.68	As at 1 January 2021 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

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Current liabilities: Short-term borrowings Bills payables Trade payables Contract liabilities Other loans Deposit receipts Accrued staff costs Taxation payables Other payables Including: Dividend payables Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term borrowings Lease liabilities Long-term payables Provision Deferred income Deferred tax liabilities Total non-current liabilities Total liabilities Owners’ equity: Share capital Capital reserve Surplus reserve General risk reserve Retained profits	As at 30 June 2021 RMB (unaudited) 2,790,945,687.73 39,180,383.98 2,304,073,104.02 1,752,360,150.35 998,014,955.40 58,924,928.20 670,411,971.35 326,021,973.75 1,086,146,699.63 27,555,935.77 14,384,913.32 138,984,482.87 10,179,449,250.60 14,025,645.23 209,347,758.45 65,805,850.00 — 287,083,643.90 214,456,989.98 790,719,887.56 10,970,169,138.16 3,464,661,213.00 8,072,483,577.86 1,831,906,631.94 109,386,472.28 7,001,279,652.31	As at 1 January 2021 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

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Total equity attributable to owners of Shuanghui Development Non-controlling interests Total owners’ equity Total liabilities and owners’ equity	As at 30 June 2021 RMB (unaudited) 20,479,717,547.39 368,971,353.13 20,848,688,900.52 31,818,858,038.68	As at 1 January 2021 RMB (audited) 23,763,043,722.60 369,675,244.18 24,132,718,966.78 34,703,881,761.96

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 Wan Long Chairman and Chief Executive Officer

Hong Kong, 12 August 2021

As at the date of this announcement, the executive directors of the Company are Mr. WAN Long, Mr. GUO Lijun, 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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