WH : Announcements and Notices - Unaudited Financial Results for the Six Months Ended June 30, 2018 of Henan Luohe Shuanghui Industry Group Co., Ltd.

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WH Group Limited ຬݲ਷ყϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 288)

UNAUDITED FINANCIAL RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2018 OF HENAN LUOHE SHUANGHUI INDUSTRY GROUP CO., LTD.*

On August 14, 2018, Shuanghui Group released its interim financial statements for the six months ended June 30, 2018.

Henan Luohe Shuanghui Industry Group Co., Ltd.* (ئی޲မئ̹ᕐිྼุණྠϞࠢப΂ʮ ̡) ("Shuanghui Group") is a company incorporated in the People's Republic of China (the "PRC") with medium-term notes trading on the inter-bank bond market in the PRC.

As at the date of this announcement, Shuanghui Group is an indirect wholly-owned subsidiary of WH Group Limited (the "Company"). On August 14, 2018, Shuanghui Group filed its interim financial statements with Shanghai Clearing House for the six months ended June 30, 2018 (the "Shuanghui Group Interim Financial Statements"). It is important to note that the unaudited consolidated financial results contained in the Shuanghui Group Interim Financial Statements 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 Group's results reported therein differ from Shuanghui Group'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 GROUP FOR THE SIX MONTHS ENDED JUNE 30, 2018

For the six months ended June 30, 2018, turnover decreased by 1.60% from the comparable period of 2017 to RMB23,731 million. Net profit increased by 26.03% from the comparable period of 2017 to RMB2,493 million.

The unaudited consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2018 and the unaudited consolidated statement of financial position as at June 30, 2018 contained in Shuanghui Group Interim Financial Statements are provided below:

SHUANGHUI GROUP

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended June 30, 2018

For the six months ended June 30,

2018	2017
RMB	RMB
(unaudited)	(unaudited)
I.	Total operating income	23,731,380,269.25	24,117,184,483.52
Including: Operating income	23,624,207,024.59	24,075,324,020.27
Interest income	107,168,527.72	41,856,444.42
Handling and commission income	4,716.94	4,018.83
II.	Total operating costs	20,810,508,530.30	21,731,221,028.52
Less: Operating costs	18,506,265,580.57	19,555,799,845.87
Interest expenses	8,929,020.08	2,968,333.54
Handling and commission charges	440,672.12	416,919.56
Tax and levies	179,750,523.61	166,530,177.49
Selling expenses	1,205,878,598.57	1,117,148,790.67
Administrative expenses	536,926,663.13	574,295,128.71
Research and development expenses	35,052,875.20	28,183,384.27
Financial expenses	85,682,640.13	113,145,166.65
Including: Interest expenses	99,821,830.37	100,306,996.70
Interest income	-15,338,158.97	-12,954,578.87
Impairment losses of assets	251,581,956.89	172,733,281.76
Add: Other gains	173,788,035.21	-
Investment income	28,801,511.88	49,170,311.58
Including:Income from investments
in associates and joint ventures	7,275,581.00	11,896,672.54
Loss on fair value changes	20,906.32	-
Gain (Loss) on disposal of assets	550,930.12	2,253,417.89
III.	Operating profit	3,122,889,449.60	2,437,387,184.47
Add: Non-operating income	22,381,438.94	164,358,335.27
Less: Non-operating expenses	12,039,558.00	18,376,420.45
IV.	Total profit	3,133,231,330.54	2,583,369,099.29
Less: Income tax expenses	639,920,688.63	605,076,026.31
V.	Net profit	2,493,310,641.91	1,978,293,072.98
Net profit attributable to owners of Shuanghui Group	1,449,252,713.97	1,125,166,205.04
Profit or loss attributable to non-controlling interests	1,044,057,927.94	853,126,867.94
VI.	Other comprehensive income	4,144,572.44	-
Other comprehensive income
attributable to owners of Shuanghui Group	1,252,762.43	-
Other comprehensive income
attributable to non-controlling interests	2,891,810.01	-
VII.	Total comprehensive income	2,497,455,214.35	1,978,293,072.98
Total comprehensive income attributable to
owners of Shuanghui Group	1,450,505,476.40	1,125,166,205.04
Total comprehensive income attributable to
non-controlling interests	1,046,949,737.95	853,126,867.94

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at June 30, 2018

As at June 30,	As at January 1,
2018	2018
RMB	RMB
(unaudited)	(audited)
Current assets:
Cash and bank balances	3,902,173,356.76	6,225,612,306.82
Other investments	19,848.92	66,318.68
Bills and trade receivables	164,513,828.23	178,205,162.50
Prepayments	44,440,538.08	88,377,256.95
Other receivables	19,121,382.36	19,377,963.92
Inventories	4,209,526,084.40	3,031,687,001.59
Non-current assets due within one year	2,215,306.61	2,334,033.96
Other current assets	1,196,216,506.05	279,780,888.49
Total current assets	9,538,226,851.41	9,825,440,932.91
Non-current assets:
Available-for-sale investments	46,686,591.59	46,686,591.59
Long-term equity investments	169,669,621.04	175,762,503.25
Fixed assets	11,352,457,082.39	11,693,955,420.99
Construction in progress	224,745,726.31	158,320,794.07
Biological assets	69,678,421.77	68,785,210.07
Intangible assets	898,272,487.52	942,051,186.00
Development expenditure	2,475,300.00	2,475,300.00
Long-term prepaid expenses	61,693,026.04	68,033,277.87
Deferred tax assets	120,459,320.73	99,246,170.28
Other non-current assets	6,196,813.71	5,318,333.85
Total non-current assets	12,952,334,391.10	13,260,634,787.97
Total assets	22,490,561,242.51	23,086,075,720.88
Current liabilities:
Short-term borrowings	4,165,512,118.85	3,208,776,213.34
Deposit receipts	149,916,910.43	152,449,459.95
Other loans	752,950,000.00	785,481,761.26
Derivative financial instruments	-	4,144,572.44
Bills and trade payables	1,935,778,208.89	2,061,454,264.32
Receipts in advance	499,886,325.22	566,868,757.71
Accrued staff costs	465,683,341.93	644,157,298.79
Taxes payables	337,205,612.12	313,366,165.04
Other payables	900,258,533.74	948,059,185.64
Non-current liabilities due within one year	1,000,794,182.17	999,966,981.93
Other current liabilities	1,962,458.31	3,053,448.99
Total current liabilities	10,209,947,691.66	9,687,778,109.41

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

As at June 30, 2018

As at June 30,	As at January 1,
2018	2018
RMB	RMB
(unaudited)	(audited)
Non-current liabilities:
Long-term borrowings	17,505,904.40	18,099,503.39
Long-term payables	67,950,000.00	68,300,000.00
Deferred income	72,589,933.67	74,621,480.70
Deferred tax liabilities	66,250,214.90	67,468,761.51
Total non-current liabilities	224,296,052.97	228,489,745.60
Total liabilities	10,434,243,744.63	9,916,267,855.01
Owners' equity:
Share capital	1,500,000,000.00	1,500,000,000.00
Capital reserve	1,334,651,164.75	1,313,554,433.86
Special account reserve	528,574.52	131,028.53
Surplus reserve	750,000,000.00	750,000,000.00
General reserve	892,658.49	892,658.49
Other reserve	-	-1,252,762.43
Retained profits	2,234,540,961.01	2,915,288,247.04
Total equity attributable to owners of Shuanghui Group	5,820,613,358.77	6,478,613,605.49
Non-controlling interests	6,235,704,139.11	6,691,194,260.38
Total owners' equity	12,056,317,497.88	13,169,807,865.87
Total liabilities and owners' equity	22,490,561,242.51	23,086,075,720.88

If you wish to review the Shuanghui Group Interim Financial Statements in full, please visithttp://www.shclearing.comor http://www.chinamoney.com.cn.

By order of the board of directors of

WH Group Limited

Wan Long

Chairman and Chief Executive Officer

Hong Kong, August 14, 2018

As at the date of this announcement, the executive directors of the Company are Mr. WAN Long, Mr. WAN Hongjian, Mr. GUO Lijun, Mr. SULLIVAN Kenneth Marc and Mr. MA Xiangjie; 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.

* For identification purposes only