WH : Announcements and Notices - Audited Financial Results for the Year December 31, 2016 of Henan Shuanghui Investment & Development Co., Ltd

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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) AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2016 OF HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO., LTD

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. As at the date of this announcement, WH Group Limited (the "Company") indirectly owns approximately 73.25% equity interest in Shuanghui Development. The board of directors of Shuanghui Development has approved its audited consolidated financial results for the year ended December 31, 2016. Such audited consolidated financial results were prepared in accordance with the China Accounting Standards for Business Enterprises and are expected to be posted on the Shenzhen Stock Exchange's website at or about the same time of this announcement.

For the year ended December 31, 2016, Shuanghui Development processed 12.35 million hogs, representing a decrease of 0.32% from the comparable period of 2015. Total sales volume of meat products was 2.97 million metric tons, representing an increase of 7.68% from the comparable period of 2015. Turnover increased by 15.99% from the comparable period of 2015 to RMB51,845 million. Net profit increased by 3.29% from the comparable period of 2015 to RMB5,862 million.

The audited consolidated statement of profit or loss for the year ended December 31, 2016 and the audited consolidated statement of financial position as at December 31, 2016 of Shuanghui Development are provided below:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the year ended December 31,

2016 RMB (audited)	2015 RMB (audited)
I.	Total operating income	51,845,061,670.83	44,696,667,615.26
Including: Operating income	51,822,365,961.66	44,696,667,615.26
Interest income	22,613,614.76	-
Handling and commission income	82,094.41	-
Less: Total operating costs	46,386,892,046.06	39,442,700,779.15
Including: Operating costs	42,439,540,448.01	35,413,348,537.79
Interest expenses	1,259,167.51	-
Handling and commission charges	336,163.04	-
Business tax and levies	312,262,084.21	190,269,455.28
Selling expenses	2,271,682,006.65	2,298,892,060.08
Administrative expenses	1,206,641,380.81	1,434,982,070.57
Financial expenses	(17,763,442.59)	(3,786,173.46)
Impairment losses of assets	172,934,238.42	108,994,828.89
Add: Investment income Including: Income from investments in associates and joint ventures	98,084,024.52 18,416,856.20	156,027,217.54 8,541,962.73
II.	Operating profit	5,556,253,649.29	5,409,994,053.65
Add: Non-operating income	345,258,471.56	288,686,682.43
Including: Gain on disposal of non-current assets	3,004,359.03	1,373,735.87
Less: Non-operating expenses	39,512,833.61	23,527,520.59
Including: Loss on disposal of non-current assets	29,727,228.80	19,537,233.85
III.	Total profit	5,861,999,287.24	5,675,153,215.49
Less: Income tax expenses	1,300,457,688.13	1,258,689,859.23
IV.	Net profit	4,561,541,599.11	4,416,463,356.26
Net profit attributable to owners of Shuanghui Development	4,405,056,392.24	4,255,541,752.84
Profit or loss attributable to non-controlling interests	156,485,206.87	160,921,603.42
V.	Total comprehensive income Total comprehensive income attributable to owners of Shuanghui Development	4,561,541,599.11 4,405,056,392.24	4,416,463,356.26 4,255,541,752.84
VI.	Total comprehensive income attributable to non-controlling interests Earnings per share: (1) Basic earnings per share	156,485,206.87 1.3346	160,921,603.42 1.2893
(2) Diluted earnings per share	1.3346	1.2893

Current assets:

Cash and bank balances	3,303,688,588.09	2,426,692,246.83
Bills receivables	60,233,834.95	34,175,619.57
Trade receivables	100,835,614.91	131,744,098.38
Prepayments	57,586,136.30	76,576,324.22
Other receivables	47,682,603.89	53,131,097.03
Inventories	3,219,714,749.87	3,384,796,676.51
Non-current assets due within one year	2,334,034.42	2,272,659.63
Other current assets	248,978,269.65	2,806,370,636.74
Total current assets	7,041,053,832.08	8,915,759,358.91

Non current assets:

Loans to group company	742,500,000.00	-
Available-for-sale investments	34,038,891.59	-
Long-term equity investments	176,666,881.24	161,593,594.79
Fixed assets	11,574,188,890.19	11,776,311,707.43
Construction in progress	532,599,950.74	715,348,798.08
Materials for construction of fixed assets	2,339,249.15	6,809,492.08
Biological assets	70,951,919.14	52,801,618.67
Intangible assets	1,042,586,917.58	1,074,087,813.83
Long-term prepaid expenses	62,792,467.66	72,587,527.77
Deferred tax assets	66,787,715.68	64,615,093.72
Other non-current assets	5,412,685.60	44,552,160.88
Total non-current assets	14,310,865,568.57	13,968,707,807.25
Total assets	21,351,919,400.65	22,884,467,166.16

Current liabilities:

Short-term borrowings	1,055,000,199.99	600,000,000.00
Deposit receipts	335,343,336.65	-
Bills payables	-	4,185,763.00
Trade payables	2,308,776,897.74	2,313,678,989.96
Receipts in advance	712,391,591.65	636,136,487.67
Accrued staff costs	600,782,437.34	647,498,486.25
Taxes payables	295,603,980.32	309,194,891.25
Interest payables	750,025.01	155,615.82
Dividend payables	118,669,486.46	1,423,459.07
Other payables	740,333,008.37	596,604,938.82
Non-current liabilities due within one year	341,855.36	320,004.61
Other current liabilities	8,440,201.50	10,103,449.79
Total current liabilities	6,176,433,020.39	5,119,302,086.24

Non-current liabilities:
Long-term borrowings	5,825,999.87	5,758,303.93
Deferred income	51,986,672.16	56,543,030.47
Deferred tax liabilities	48,925,918.81	16,295,833.83
Total non-current liabilities	106,738,590.84	78,597,168.23
Total liabilities	6,283,171,611.23	5,197,899,254.47

Owners' equity:
Share capital	3,299,558,284.00	3,300,867,672.00
Capital reserve	1,831,050,450.76	1,730,292,819.63
Surplus reserve	1,831,906,631.94	1,831,906,631.94
Other reserve	15,313.63	-
Retained profits	7,240,262,335.24	9,929,271,567.23
Total equity attributable to owners of
Shuanghui Development	14,202,793,015.57	16,792,338,690.80
Non-controlling interests	865,954,773.85	894,229,220.89
Total owners' equity	15,068,747,789.42	17,686,567,911.69
Total liabilities and owners' equity	21,351,919,400.65	22,884,467,166.16