Fu-Wang Foods ltd. Financial Calculations (2009 -2013)

FUWANG FOODS LTD-INCOME STATEMENT 2010 2011 539,554,916 709,168,568 444,958,348 530,277,616 94,596,568 178,890,952 48,455,746 61,363,400 26,323,634 38,505,534 22,132,112 22,857,866

Details Turnover Cost of Goods Sold Gross Profit OPERATING EXPENSES Adminstrative expenses Selling and distribution expenses

2009 522,439,574 434,969,289 87,470,285 45,682,512 24,677,950 21,004,562

Operating income before financial expenses Financial expenses Operating income

41,787,773 11,529,037 30,258,736

46,140,822 8,476,882 37,663,940

117,527,552 8,666,372 108,861,180

1,000,000

1,200,000

1,200,000

Net profit before tax and WPPF

31,258,736

38,863,940

110,061,180

Contribution to W.P. & Welfare Fund Net Profit Before Tax Provision For Income Tax Net Profit After Tax

1,488,511 29,770,225 8,186,812 21,583,413

1,850,664 37,013,276 10,178,651 26,834,625

5,241,009 104,820,171 25,942,992 78,877,179

Earnings Per Share(EPS)- Basic

1.17

0.65

1.92

Details Assets Non-current assets Property, plant and equipment (net of accumulated dep.) Capital work-in-progress Trade marks

2009

Non-operating income

FUWANG FOODS LTD-BALANCE SHEET 2010 2011

257102135

284284230

387920056

257095135

284277230

387,913,056

7000

7000

7,000

Investment Current assets Inventories Trade and other Receivables Advances, deposits and prepayments Cash and cash equivalents

50,000,000 222835498 60510390 57794689

258593052 63978805 59343138

471814728 100,367,939 100,067,414

83972706 20557713

109357268 25913841

173,848,641 97,530,734

Total Assets

479937633

542877282

909734784

255776901 184000000 18245470

282611526 202400000 18245470

53531431

61966056

664603705 445,280,000 18,245,470 95,679,250 105,398,985

Current liabilities Short term bank loans and others Trade and other payables Liabilities for expenses Provision for income tax

224160732 109491742 40995911 2757315 70915764

260265756 72204786 103757840 3208715 81094415

245131079 63,004,233 69,060,537 6,028,902 107,037,407

Total Equity and Liabilities

479937633

542877282

909734784

Equity and Liabilities Shareholders' equity Share capital Tax holiday reserve Capital Reserve Retained earnings Non- Current liabilities Deferred Tax Liability

FUWANG FOODS LTD Ratio Analysis Formula

2009

2010

1. Current ratio

Current assets / Current liabilities

0.994088019

0.993573092

2. Net working capital (NWC)

Current assets Current liabilities

-1,325,234

-1,672,704

3. Quick Ratio

(Current assets Inventories) / Current liabilites

0.724146047

0.747752029

(Accounts receivable + Inventory + Prepaids and other 4. Working capital requirement (WCR) Current assets to sales Accounts Payable Accruals and other Current liabilities) / Sales

0.303431376

0.232993255

5. Net liquid balance (NLB)

Cash + Market Securities - Notes payable - Current maturities of long term debt (CMLTD)

20557713

25913841

6. Cash flow to total debt

(Net income + Depreciation expense) / (Current liabilities - Accounts payable - Accrued expenses) + Long term debt

0.189610625

0.267046754

7. Cash flow from operations (CFFO)

Net income + Noncash charges + Change in operating current liabilities Change in current assets

44068695

85121544

8. Cash conversion period or, Cash cycle

(Days inventory held + Days sales outstanding) - Days payables outstanding

56.75336716

7.513851861

9. Cash turnover

365 / Cash Cycle

6.43133647

48.57694918

10. Cash conversion effeciency

Cash flow form operations / Sales

8.44%

15.78%

11. Defensive interval

(Cash + Short-term investments) / Daily operating expenses

164.2546549

195.1998008

12. Days inventory held

Inventory / (Cost of goods sold / 365)

50.7766707

52.48190967

13. Days sales outstanding

Accounts receivables / (Sales / 365)

40.37799304

40.14465391

14. Days payables outstanding

Accounts payable / (Cost of goods sold / 365)

34.40129658

85.11271172

15. Total asset turnover

Net sales / Total assets

1.088557217

0.993880079

16. Total fixed asset turnover

Net sales / Total fixed assets

2.032031255

1.897941775

Cost of goods sold / Inventory

7.188340531

6.954777414

Total liabilities / Total assets

46.71%

47.94%

EBIT / Interest expense

3.624567516

5.443136049

20. Long term debt to capital

Long-term debt / (Long-term debt + Equity)

0.00%

0.00%

21. Gross profit margin

Gross profit / Sales

16.74%

17.53%

22. Net Profit Margin

Net Profit/ Sales

4.13%

4.97%

23. Return on Assets

Net Profit/ Total Assets

4.50%

4.94%

17. Inventory turnover 18. Total liabilities to total assets or, Debt ratio 19. Times interest earned

24. Return on Equity

Net Profit/ Total Equity

8.44%

9.50%

25. Operating Profit Margin

Operating Profit/ Sales

5.79%

6.98%

Sustainable Growth Rate

m= After Tax Profit/Sales d= Dividends Paid/After Tax Profit D/E= Total Debt/Total Equity A/S= Total Asset/Total Sales

Sustainable Growth Rate= (m*(1-d)*(1+(D/E)))/((A/S)-(m*(1d)*(1+(D/E))))

Actual Growth Rate= (Current Sales-Old Sales)/Old Sales

2010 0.041312745 0.852506506 0.876391618 1.103382802

1.05%

2011 0.049734743 1.508498814 0.920931144 1.220063146

-3.83%

2010

2011

3.28%

31.44%

2012 0.111224866 1.129046463 0.368837966 1.715582096

-1.13%

Actual Growth Rate 2012

6.95%

INCOME STATEMENT 2012 758,459,050 577,224,631 181,234,419 67,133,875 43,353,527 23,780,348

2013 785,126,525 605,396,108 179730417 72,018,132 45,090,877 26,927,255

114100545 5,213,605 108,886,940

107712285 11,682,763 96029522 723,411

108,886,940

96752933

5,185,092 103,701,847 28,518,008 75,183,839

4607283 92145650 30,421,496 61724154

1.26

1.03

2012

2013

475165649

483426876

413,901,715 61,256,934 7,000

450,840,954 32,578,922 7000

50,000,000

50,000,000

474731242 128,761,124 116,404,833

536,967,809 141,512,216 134,991,873

219,428,454 10,136,831

241,017,808 19,445,912

TD-BALANCE SHEET

999896891

1070394685

739787545 534,336,000 18,245,470 90,895,288 96,310,787

777765306 598,456,320 18,245,470 62,604,130 98,459,386

30,915,741 260109346 66,497,124 52,787,662 5,269,145 135,555,415

261713638 53,324,095 42,218,570 7,363,409 158,807,564

999896891

1070394685

2011

2012

S LTD

is 2013

1.92474463

1.825121816

2.051737972

226,683,649

214,621,896

275,254,171

1.515298633

1.330094913

1.511024019

0.421894834

0.536004685

0.596005743

97530734

10136831

19445912

0.549125938

0.45677814

0.335169485

13,702,565

10,978,878

58,918,216

73.05288958

104.0593003

122.6220427

4.996380048

3.507615359

2.976626323

1.93%

1.45%

7.50%

580.1294894

55.11291155

98.55515108

69.08512943

81.42031323

85.319278

51.5034193

56.01853395

62.7568068

47.53565914

33.37954688

25.45404215

0.779533311

0.758537262

0.733492548

1.828130712

1.596199245

1.624085387

5.283336704

4.482910781

4.278048391

26.95%

26.01%

27.34%

13.56133247

21.88515336

9.219761199

0.00%

0.00%

3.82%

25.23%

23.90%

22.89%

11.12%

9.91%

7.86%

8.67%

7.52%

5.77%

11.87%

10.16%

7.94%

15.35%

14.36%

12.23%

Growth Rate 2013 0.099127091 0.852847113 0.351600061 1.732249175

1.15%

owth Rate 2013

3.52%

1.Current Ratio 2.5 2 1.5 1 0.5 0 2008.5 2009 2009.5 2010 2010.5 2011 2011.5 2012 2012.5 2013 2013.5

3.Quick Ratio 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2

0.4 0.2 0 2009

2010

2011

2012

5. Net liquid balance (NLB) 120000000 100000000 80000000 60000000 40000000 20000000 0 2009

2010

2011

7. Cash flow from operations (CFFO) 90000000 80000000 70000000

140

70000000

140

60000000

120

50000000

100

40000000 30000000 20000000 10000000 0 2009

2010

2011

2012

2013

9. Cash turnover 60 50 40 30 20 10 0 2009

2010

2011

2012

2013

11. Defensive interval 700

90

600

80

500

70 60

400

50

300

40

200 100

30 20 10

20 100

10

0 2009

2010

2011

2012

2013

13. Days sales outstanding 70 60 50 40 30 20 10 0 2009

2010

2011

2012

2013

15. Total asset turnover 1.2 1 0.8 0.6 0.4 0.2 0 2009

2010

2011

2012

2013

17. Inventory turnover 8 7 6 5 4 3 2 1 0 2009

2010

2011

2012

2013

19. Times interest earned 25 20 15 10 5 0 2009

2010

2011

2012

21. Gross profit margin 30.00% 25.00%

2013

25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2009

2010

2011

2012

2013

23. Return on Assets 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2009

2010

2011

2012

2013

35.00% 30.00% 25.00% 20.00% 15.00%

SGR

10.00%

AGR

5.00% 0.00% 2010 -5.00% -10.00%

2011

2012

2013

-10.00%

2.Net Working Capital 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 2013.5

0 -50,000,000

2009

2010

2011

2012

4. Working capital requireme 0.7 0.6

0.6 0.5 2012

2013

0.4 0.3 0.2 0.1 0 2009

alance (NLB)

6. Cash flow to total 0.6 0.5 0.4 2012

2013

0.3 0.2 0.1 0 2009

8. Cash conversion period or, Cash cycle 140

140 120 100 80 60 40 20 0 2009

2010

2011

2012

2013

10. Cash conversion effeciency 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2009

2010

12. Days inventory held 90 80 70 60 50 40 30 20 10

2011

2012

20 10 0 2009

2010

2011

2012

2013

14. Days payables outstanding 90 80 70 60 50 40 30 20 10 0 2009

2010

2011

2012

16. Total fixed asset turnover 2.5 2 1.5 1 0.5 0 2009

2010

2011

2012

18. Total liabilities to total assets or, Debt ratio 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2009

2010

2011

2012

20. Long term debt to capital 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009

2010

2011

2012

22. Net Profit Margin 12.00% 10.00% 8.00%

8.00% 6.00% 4.00% 2.00% 0.00% 2009

2010

2011

2012

24. Return on Equity 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2009

2010

2011

2012

25. Operating Profit Margin 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2009

2010

2011

2012

2009

2010

2011

2012

2013

. Working capital requirement (WCR) to sales

2010

2011

2012

2013

6. Cash flow to total debt

2010

2011

2012

2013

eciency

2013

anding

2013

nover

2013

assets or,

2013

apital

2013

2013

2013

2013

2013

SUMMARY OUTPUT Regression Statistics Multiple R 0.866869 R Square 0.751461 Adjusted R Square 0.668615 Standard Error0.01745 Observations 5 ANOVA df Regression Residual Total

SS MS F 1 0.002762 0.002762 9.070542 3 0.000914 0.000305 4 0.003676

Coefficients Standard Error t Stat P-value Intercept -0.00255 0.027226 -0.0938 0.931179 X Variable 1 0.050427 0.016743 3.011734 0.057133

Significance F 0.057132924

Lower 95% Upper 95%Lower 95.0% -0.089199524 0.084092 -0.0892 -0.002858297 0.103711 -0.00286

y = -0.00255 + 0.050427x

Upper 95.0% 0.084092 0.103711

Year 2009 2010 2011 2012 2013

Current Ratio(x) 0.994088019 0.993573092 1.92474463 1.825121816 2.051737972

Net Profit Margin(Y) 0.04 0.05 0.11 0.10 0.08

SUMMARY OUTPUT Regression Statistics Multiple R 0.849263 R Square 0.721248 Adjusted R Square 0.628331 Standard Error0.01848 Observations 5 ANOVA df Regression Residual Total

SS MS F 1 0.002651 0.002651 7.762272 3 0.001025 0.000342 4 0.003676

Coefficients Standard Error t Stat P-value Intercept 0.048501 0.012874 3.767283 0.032727 X Variable 1 1.93E-10 6.92E-11 2.786085 0.068642

Significance F 0.068641999

Lower 95% Upper 95%Lower 95.0% Upper 95.0% 0.007529343 0.089473 0.007529 0.089473 -2.74159E-11 4.13E-10 -2.7E-11 4.13E-10

Upper 95.0%

y = 0.048501+1.93x

Year 2009 2010 2011 2012 2013

Net Working Capital(x) -1,325,234 -1,672,704 226,683,649 214,621,896 275,254,171

Net Profit Margin(Y) 0.04 0.05 0.11 0.10 0.08

SUMMARY OUTPUT Regression Statistics Multiple R 0.894348 R Square 0.799858 Adjusted R Square 0.733145 Standard Error 0.015659 Observations 5 ANOVA df Regression Residual Total

SS MS F 1 0.00294 0.00294 11.98939 3 0.000736 0.000245 4 0.003676

Coefficients Standard Error t Stat P-value Intercept -0.00312 0.023899 -0.13039 0.904513 X Variable 1 0.067875 0.019602 3.46257 0.040564

Significance F 0.040564393

Lower 95% Upper 95%Lower 95.0% Upper 95.0% -0.079173213 0.072941 -0.07917 0.072941 0.00549112 0.130259 0.005491 0.130259

Upper 95.0%

y = -0.00312+0.067875x

Year 2009 2010 2011 2012 2013

Quick Ratio(x) 0.724146047 0.747752029 1.515298633 1.330094913 1.511024019

Net Profit Margin(Y) 0.04 0.05 0.11 0.10 0.08

SUMMARY OUTPUT Regression Statistics Multiple R 0.578628 R Square 0.334811 Adjusted R Square 0.113081 Standard Error 0.028548 Observations 5 ANOVA df Regression Residual Total

SS MS F 1 0.001231 0.001231 1.509995 3 0.002445 0.000815 4 0.003676

Coefficients Standard Error t Stat P-value Intercept 0.047413 0.026539 1.78655 0.171983 X Variable 1 0.000393 0.00032 1.228819 0.30674

Significance F 0.306739975

Lower 95% Upper 95%Lower 95.0% Upper 95.0% -0.037045667 0.131872 -0.03705 0.131872 -0.000624361 0.00141 -0.00062 0.00141

Upper 95.0%

y = 0.047413+0.000393x

Year 2009 2010 2011 2012 2013

Cash conversion period(x) 56.75336716 7.513851861 73.05288958 104.0593003 122.6220427

Net Profit Margin(Y) 0.04 0.05 0.11 0.10 0.08

SUMMARY OUTPUT Regression Statistics Multiple R 0.682635 R Square 0.465991 Adjusted R Square 0.287988 Standard Error 0.025579 Observations 5 ANOVA df Regression Residual Total

SS MS F 1 0.001713 0.001713 2.617879 3 0.001963 0.000654 4 0.003676

Coefficients Standard Error t Stat P-value Intercept -0.02901 0.065902 -0.44016 0.689607 X Variable 1 0.002093 0.001294 1.617986 0.204095

Significance F 0.204095046

Lower 95% Upper 95%Lower 95.0% Upper 95.0% -0.238737983 0.180723 -0.23874 0.180723 -0.002024242 0.006211 -0.00202 0.006211

Upper 95.0%

y = -0.02901+0.002093x

Year 2009 2010 2011 2012 2013

Days sales outstanding(x) 40.37799304 40.14465391 51.5034193 56.01853395 62.7568068

Net Profit Margin(Y) 0.04 0.05 0.11 0.10 0.08