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佛山照明(000541)公告正文

粤照明B:2012年半年度报告(英文版)

公告日期:2012-08-29

              Foshan Electrical and Lighting Co., Ltd.
                      Semi-Annual Report 2012
                                                     I. Important NotesThe Board of Directors, the Supervisory Committee as well as directors, supervisors and seniorexecutives of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as the Company)guarantee that there are no significant omissions, fictitious or misleading statements carried in theReport and will take individual and joint responsibilities for the truthfulness, accuracy andcompleteness of the Report.All directors of the Company attended in person the board session for reviewing the semi-annual report.The semi-annual financial report 2012 has not been audited by the accounting firm.Mr. Zhong Xincai, person in charge of the Company and the accounting work, and Wang Shuqiong,person in charge of the accounting department (manager of financial department), hereby confirmthat the financial report enclosed in this Semi-Annual Report is true and complete.This report is prepared both in Chinese and English. Should there be any difference in interpretationof the two versions, the Chinese version shall prevail.
                                                II. Company Profile(I)Basic information
    A-share code                     000541                                B-share code                   200541
    A-share abbreviation             Foshan Zhaoming                       B-share abbreviation           Yue Zhaoming-B
    Stock exchange listed with       Shenzhen Stock ExchangeLegal Chinese name of the
                                 佛山电器照明股份有限公司CompanyAbbr. of the legal Chinese
                                 佛山照明name of the CompanyLegal English name of the
                                 FOSHAN ELECTRICAL AND LIGHTING CO., LTDCompanyAbbr. of the legal English
                                 FSLname of the CompanyLegal representative of the
                                 Zhong XincaiCompany
    Registered address               No. 64, Fenjiang Road North, Chancheng District, Foshan City, Guangdong ProvincePostal code for the registered
                                 528000address
    Office address                   No. 64, Fenjiang Road North, Chancheng District, Foshan City, Guangdong ProvincePostal code for the office
                                 528000addressInternet website of the
                                 www.chinafsl.comCompany
    Email address                    gzfsligh@pub.foshan.gd.cn(II)For contact
                                                       Company Secretary                      Securities Affairs Representative
    Name                                        Zhou Xiangfeng
                                            No. 64, Fenjiang Road North, ChanchengContact address
                                            District, Foshan
    Tel.                                        (0757)82966062 /82810239
    Fax                                         (0757)82816276
    E-mail                                      fsldsh@126.com(III)About information disclosure and where the semi-annual report is placedNewspapers designated by the Company for
                                         China Securities Journal, Securities Times, Hongkong Ta Kung Paoinformation disclosureInternet website designated by CSRC for
                                              http://www.cninfo.com.cndisclosing the semi-annual report
                                              Secretariat Office of Board of Directors, Office Building of the Company located atWhere the semi-annual report is placed
                                              No. 64, Fenjiang Road North, Chancheng District, Foshan City, Guangdong Province
                                 III. Financial and Business Highlights(I)Major accounting data and financial indexesAny retrospective adjustment in previous financial statements?√ Yes □ NoMajor accounting data
         Major accounting data        Reporting period (Jan.-Jun.)    Same period of last year          Increase/decrease (%)Gross operating revenues (RMBYuan)
                                               1,064,337,124.25               1,095,319,303.24                           -2.83%
    Operating profit (RMB Yuan)                      160,963,980.79                 151,632,304.43                            6.15%
    Total profit (RMB Yuan)                          159,366,447.84                 147,367,757.98                            8.14%
    Net     profit    attributable to
    shareholders of the Company (RMB                 134,522,943.15                  117,867,457.28                          14.13%Yuan)
    Net      profit   attributable toshareholders of the Company afterdeducting non-recurring gains and
                                                 135,668,742.77                 121,278,591.24                           11.87%losses (RMB Yuan)Net cash flow from operatingactivities (RMB Yuan)
                                                 234,485,514.83                   74,468,557.85                         214.88%
                                          As at the end of this
                                                                     As at the end of last year         Increase/decrease (%)
                                           reporting period
    Total assets (RMB Yuan)                        3,402,312,816.35               3,155,554,351.27                            7.82%Owners’ equity attributable to
    shareholders of the Company (RMB               2,924,601,012.37               2,790,878,659.33                            4.79%Yuan)
    Share capital (share)                                 978,563,745                     978,563,745                               0%Major financial indexes
       Major financial indexes       Reporting period (Jan.-Jun.)     Same period of last year          Increase/decrease (%)
    Basic EPS (RMB Yuan/share)                                    0.14                               0.12                    16.67%
    Diluted EPS (RMB Yuan/share)                                  0.14                               0.12                    16.67%Basic EPS after deducting
    non-recurring gains and losses                                0.14                               0.12                    16.67%(RMB Yuan/share)
    Fully diluted ROE(%)                                      4.71%                           4.39%                         0.32%
    Weighted average ROE(%)                                   4.71%                           4.39%                         0.32%Fully diluted ROE after deductingnon-recurring gains and losses(%)
                                                            4.75%                           4.52%                         0.23%Weighted average ROE after
                                                            4.75%                           4.52%                         0.23%deducting non-recurring gains andlosses(%)Net cash flow per share from
    operating   activities (RMB                                         0.24                                 0.08                            200%Yuan/share)
                                               As at the end of this
                                                                               As at the end of last year          Increase/decrease (%)
                                                reporting periodNet assets per share attributable to
    shareholders of the Company                                         2.99                                 2.85                            4.84%(RMB Yuan/share)
    Liability/asset ratio(%)                                      12.67%                               10.05%                              2.62%Notes to major accounting data and financial indexes before the end of this reporting period (please write an adjustment note ifthere’s any retrospective adjustment)Naught(II)Accounting data differences under the domestic and overseas accounting standards1. Net profit and net asset differences between financial reports disclosed according to the international andChinese accounting standards respectively√ Applicable □ Inapplicable
                                                                                                                                 Unit: RMB Yuan
                                        Net profit attributable to shareholders of listed    Owners’ equity attributable to shareholders of
                                                            company                                         listed company
                                                                                               As at the end of this     As at the beginning of
                                         Reporting period        Same period of last year
                                                                                                reporting period          this reporting periodAs per Chinese accountingstandards
                                             134,522,943.15              117,867,457.28          2,924,601,012.37              2,790,878,659.33Items and amounts adjusted in accordance with international accounting standards:As per internationalaccounting standards
                                             134,522,943.15              117,867,457.28          2,924,601,012.37              2,790,878,659.332. Net profit and net asset differences between financial reports disclosed according to the overseas andChinese accounting standards respectively□ Applicable √Inapplicable3. Specific items involving significant difference□ Applicable √Inapplicable4. Notes to accounting data differences under the domestic and overseas accounting standardsNaught(III)Items of non-recurring gains and losses√Applicable □Inapplicable
                                Items                                  Amount (RMB Yuan)                               Notes
    Gains and losses on disposal of non-current assets                               -119,256.76Tax rebate, reduction or exemption due to un-authorizedapproval or the lack of formal approval documentsGovernment grants recognized in the current year, exceptfor those acquired in the ordinary course of business or
                                                                                     382,000granted at certain quotas or amounts according to thecountry’s unified standardsCapital occupation fees received from non-financial
                                                                                   240,656.2enterprises that are included in current gains and lossesGains generated when the investment costs of theCompany’s acquiring subsidiaries, associates and jointventures are less than the fair value of identifiable net assetsin the investees attributable to the Company in theacquisition of the investmentsExchange gains and losses of non-monetary assetsGains and losses through entrusting others to invest ormanage assetsVarious asset impairment provisions due to acts of God suchas natural disastersGains and losses on debt restructuringEnterprise reorganization expenses, such as expenses onemployee settlement and integrationGains and losses on the parts exceeding the fair value whenprices of transactions become unfairNet current gains and losses from the period-begin to thecombination date of subsidiaries due to businesscombinations under the same controlGains and losses on contingent matters which are irrelevantto the normal operation of the CompanyGains and losses on fair value changes of transactionalfinancial assets and liabilities, and investment gains on
    disposal of transactional financial assets and liabilities and             14,936.03available-for-sale financial assets, except for the effectivehedging business related to the Company’s normal operationReversal of impairment provisions for accounts receivablewhich are separately tested for impairment signsGains and losses on entrustment loans from external partiesGains and losses on fair value changes of investingproperties for which the fair value method is adopted forsubsequent measurementCurrent gain and loss effect due to a just-for-onceadjustment to current gains and losses according torequirements of taxation and accounting laws andregulationsCustodian fee income from entrusted operations with theCompanyOther non-operating incomes and expenses besides the
                                                                       -1,860,276.19items aboveOther gain and loss items that meet the definition of
                                                                              -13.02non-recurring gains and lossesMinority interests effects
    Income tax effects                                                        196,154.12
    Total                                                                  -1,145,799.62                              --Explanation given by the Company to “other gain and loss items that meet the definition of non-recurring gains and losses” and whenit recognizes a non-recurring gain and loss item as a recurring one according to the nature and features of its ordinary business
                                   Amount involved (RMB
             Item                                                                              Notes
                                           Yuan)
    Minority interest                                      13.02
    IV. Changes in Share Capital and Particulars about Shareholders(I)Changes in share capital1. Statement of changes of shares√Applicable □Inapplicable
                                 Before the change                  Increase/decrease (+, -)                            After the change
                                     Proportion Issuance         Bonus     Capitalizat                                          Proportio
                              Amount                                                     Others        Subtotal        Amount
                                        (%)     of new           shares      ion of                                               n (%)
                                                          shares                  public
                                                                                 reserve
                                                                                   fund
    I. Shares subject to trading 137,190,4                                                                                  137,190,4
                                               14.02%                                                                               14.02%
    moratorium                         40                                                                                         40
    1. State-owned shares                      0        0%                                                                         0         0%
    2.   State-owned        legal
                                           0        0%                                                                         0         0%person shares
    3. Other domestic shares        4,286,189        0.44%                                                                  4,286,189     0.44%Including: Shares held by
    domestic non-state-owned 3,760,618               0.38%                                       -27,025        -27,025 3,733,593         0.38%legal persons
      Shares held          by
                                 525,571         0.05%                                        27,025         27,025      552,596      0.06%domestic individuals
    4. Shares held by overseas 131,815,6                                                                                    131,815,6
                                               13.47%                                                                               13.47%
    shareholders                     85                                                                                           85
    Including: Shares held by 131,815,6                                                                                  131,815,6
      overseas legal persons                   13.47%                                                                               13.47%
                                   85                                                                                         85
       Shares held         by
                                           0        0%                                                                         0         0%overseas individuals5. Shares held by senior
                         1,088,566               0.11%                                                                  1,088,566     0.11%management staff
    II. Shares not subject to 841,373,3                                                                                     841,373,3
                                               85.98%                                                                               85.98%
    trading moratorium              05                                                                                            05
    1.   Ordinary     shares 616,152,2                                                                                      616,152,2
                                               62.96%                                                                               62.96%
    denominated in RMB             68                                                                                             68
    2. Domestically         listed 225,221,0                                                                                225,221,0
                                               23.02%                                                                               23.02%
    foreign shares                       37                                                                                       373. Overseas listed foreignshares4. Others
                                978,563,7                                                                               978,563,7
    III. Total shares                                100%                                                                                 100%
                                      45                                                                                      452. Changes of shares subject to trading moratorium√ Applicable □ Inapplicable
                                                                                                        Reason for
    Name of            Shares at the       Shares released in Shares increased    Shares at the
                                                                                                         trading            Date of release
    shareholder          year-begin           current year      in current year      year-end
                                                                                                        moratorium
                                                                                                                          Uncertain (as the
    Foshan Bitang                                                                                        Equity splitting     consideration of
                                  3,405                3,377                 0                    28
    Printing Factory                                                                                     reform               equity splitting
                                                                                                                          reform unpaid)
                                                                                                                          Uncertain (as the
    Foshan Agency                                                                                     Equity splitting        consideration of
                                 30,468              13,514                  0             16,954
    Printing Factory                                                                                  reform                  equity splitting
                                                                                                                          reform unpaid)
                                                                                                                          Uncertain (as the
    Foshan Jin Ge                                                                                     Equity splitting        consideration of
                                 77,839              10,134                  0             67,705
    Mansion                                                                                           reform                  equity splitting
                                                                                                                          reform unpaid)
                                                                                                                          Uncertain (as the
                                                                                                  Equity splitting        consideration of
    Yang Hongling                          0                   0             3,377              3,377
                                                                                                  reform                  equity splitting
                                                                                                                          reform unpaid)
    Chen Hanlei                            0                   0            13,514             13,514 Equity splitting        Uncertain (as the
                                                                                                                          consideration of
                                                                                                reform            equity splitting
                                                                                                                  reform unpaid)
                                                                                                                  Uncertain (as the
                                                                                               Equity splitting   consideration of
    Long Guangxian                       0                 0            10,134              10,134
                                                                                               reform             equity splitting
                                                                                                                  reform unpaid)
    Total                         111,712            27,025             27,025            111,712            --               --(II)Issuance and listing of securities1. Securities issues in the previous three years□Applicable √Inapplicable2. Changes of the Company’s share number and structure, as well as the corresponding changes in itsasset-liability structure□Applicable √Inapplicable3. Existing employee shares□Applicable √Inapplicable(III)Shareholders and actual controller1. Total number of shareholders at the end of the reporting periodThe Company had 160,494 shareholders in total at the end of the reporting period.2. Shareholding of the top ten shareholders
                                   Particulars about shares held by the top ten shareholders
                                                                                 Number of        Pledged or frozen shares
                                                                                 shares held
    Name of shareholder (full    Nature of      Shareholding Total shares held
                                                                                  subject to                      Number of
          name)              shareholder percentage (%) at the period-end                    Status of shares
                                                                                   trading                          shares
                                                                                 moratorium
    OSRAM          HOLDING Foreign
                                                   13.47%         131,815,685 131,815,685                                   0
    COMPANY LIMITED            corporationPROSPERITY LAMPS & Foreign
                                                        10.5%       102,751,648               0                                      0COMPONENTS LIMITED corporationDBS VICKERS (HONG
                   Foreign
    KONG)   LTD    A/C                                      1.37%        13,415,143               0                                      0
                   corporationCLIENTSTaifook Securities Company Foreign
                                                        1.11%        10,906,212               0                                      0
    Limited-Account Client     corporationEAST ASIA SECURITIES Foreign
                                                        0.97%          9,527,080              0                                      0
    COMPANY LIMITED      corporation
                              Foreign natural
    ZHUANG JIANYI                                           0.86%          8,404,132              0                                      0
                              personGUANGZHOU
                   DomesticPROSPERITY LAMPS &
                   non-state-owne                       0.57%          5,586,815       675,675                                       0COMPONENTS TRADE
                   d corporationCO., LTD.
    NIHK-CUSTOMERS'    Foreign
                                                        0.32%          3,126,799              0                                      0SEGREGATED ACCOUNT corporation
                              Domestic
    ZHAO XIYI                                               0.32%          3,100,000              0                                      0
                              natural person
                              Domestic
    ZHANG YUAN                                              0.31%          3,000,000              0                                      0
                              natural personNotes to particulars about shareholdersParticulars about shares held by the top ten shareholders holding shares not subject to trading moratorium√Applicable □Inapplicable
               Name of shareholder                  Number of shares held                  Type and number of shares
                                                       not subject to trading
                                                        moratorium at the              Type                    Number
                                                            period-end
    PROSPERITY        LAMPS       &    COMPONENTS
                                                                 102,751,648 A-share                                   102,751,648LIMITEDDBS VICKERS (HONG KONG) LTD A/C
                                                                  13,415,143 B-share                                    13,415,143CLIENTSTaifook Securities Company Limited-Account
                                                                  10,906,212 B-share                                    10,906,212Client
    EAST ASIA SECURITIES COMPANY LIMITED                               9,527,080 B-share                                     9,527,080
    ZHUANG JIANYI                                                      8,404,132 B-share                                     8,404,132
    GUANGZHOU PROSPERITY LAMPS                         &
                                                                   4,911,140 A-share                                     4,911,140COMPONENTS TRADE CO., LTD.
    NIHK-CUSTOMERS'                     SEGREGATED
                                                                   3,126,799 B-share                                     3,126,799ACCOUNT
    ZHAO XIYI                                                          3,100,000 A-share                                     3,100,000
    ZHANG YUAN                                                         3,000,000 A-share                                     3,000,000
    QUAN BISHU                                                         2,592,209 A-share                                     2,592,209Explanation on associated relationship among the top ten shareholders or/and acting-in-concertAmong the top ten shareholders of the Company, Prosperity Lamps & Components Limited and Zhuang Jianyi exist relatedrelationship, and they are acting-in-concert. Apart from this, it’s unknown whether there is any associated relationship among othershareholders of the top ten shareholders and the top ten shareholders holding shares not subject to trading moratorium, whether thereis any action-in-concert among them regarding to Administrative Measures on Acquisition of Listed Companies.3. Controlling shareholder and actual controller(1)Change of the controlling shareholder and actual controller□Applicable √Inapplicable(2)Particulars about the controlling shareholder and actual controllerIs there a new actual controller?□ Yes √ No □ InapplicableParticulars:There exists no so called controlling shareholder or actual controller.(3)Illustration on the relationship between the Company and its actual controllerThere exists no so called controlling shareholder or actual controller.(1) The first principal shareholder of the Company is OSRAM Holding Company Limited, which was established in Hong Kong inJun. 2004 with registered capital of HKD 500,000, when it had no substantial operations; currently held 13.47% equity of theCompany.(2) The second principal shareholder of the Company is Prosperity Lamps & Components Limited, which was established in HongKong in 1978 with registered capital of HKD 2 million and Legal Representative being Zhuang Jianyi, main business scope coveringsales and exportation of lighting products, import and export trade; currently held 10.5% equity of the Company.(3) Illustration on relationship between the Company and its first principal shareholder
                                          Germany SIEMENS
                                       100%
                                           OSRAM Germany
                                       100%
               OSRAM Holding Company Limited
                                                    13.47%
                                              Foshan Electrical and Lighting Co., Ltd(4)The actual controller controls the Company via trust or other ways of asset management.□Applicable √Inapplicable4. Other corporate shareholders with a shareholding over 10%√Applicable □Inapplicable
                                                                                                        Registered
                                          Legal          Incorporated     Main operating business or     capital
                                                                                                       (RMB ’0000 currency
    Name of corporate shareholder
                                      representative         date          management activities
                                                                                                            )
                                    MICHEL                              No substantial operating
    OSRAM Holding Company Limited                           30 Jun. 2004                                           50   HKD
                                    Jean-Paul Henri                     business
    Prosperity Lamps & Components                                           Trading and manufacturing of
                                    Zhuang Jianyi       28 Apr. 1978                                          200   HKD
    Limited                                                                 lamps and components
                 Notes(IV)Convertible corporate bonds□Applicable √Inapplicable
                   V. Directors, Supervisors and Senior Management(I)Shareholding changes of directors, supervisors and senior management
                                                                                             Shareholding Shareholding                                                                                Receives
                                                                                                                                                                        Share
                                                                             Shareholding      increase          decrease         Shareholding      Including:                                        payment
                                                Beginning      Ending date                                                                                           options held
                                                                                at the        during this       during this          at the         restricted                        Reasons for         from
    Name          Position   Gender   Age      date of office    of office                                                                                               at the
                                                                             period-begin     reporting         reporting          period-end       shares held                         change      shareholder
                                                  term            term                                                                                               period-end
                                                                               (share)          period            period            (share)           (share)                                       units or other
                                                                                                                                                                       (share)
                                                                                               (share)           (share)                                                                            related units?
    Zhong         Chairman of
                            Male           69 27 May 2010 1 Jun. 2013            876,206                    0                 0       876,206           657,153                   0                 No
    Xincai        the Board
              Vice
              chairman ofLiu
              the Board     Male           50 27 May 2010 1 Jun. 2013            351,280                    0                 0       351,280           263,460                   0                 NoXingming
              & General
              Manager
    Mr.      Joerg
               Director     Male           49 27 May 2010 23 Jul. 2012                   0                  0                 0                 0                0                0                 YesThaeleMr. Francis
    Michael        Director     Male           64 25 May 2010 12 Apr. 2012                   0                  0                 0                 0                0                0                 YesPiscitelli
    Wu Shengbo Director         Male           46 23 May 2012 1 Jun. 2013                    0                  0                 0                 0                0                0                 Yes
    Ye Zaiyou     Director      Male           56 27 May 2010 1 Jun. 2013                    0                  0                 0                 0                0                0                 No
    Zhao Yong     Director      Male           46 27 May 2010 1 Jun. 2013               8,700                   0                 0          8,700            6,525                   0                 No
    Liu         Independent
                            Male           64 27 May 2010 1 Jun. 2013                    0                  0                 0                 0                0                0                 No
    Zhenping    Director
            Independent
    Dou Linping                 Male           53 27 May 2010 1 Jun. 2013                    0                  0                 0                 0                0                0                 No
            Director
    Zhang       Independent
                            Female         39 27 May 2010 21 Aug. 2012                   0                  0                 0                 0                0                0                 No
    Haixia      Director
    Jiao Zhigang Supervisor     Male           40 27 May 2010 1 Jun. 2013             22,880                    0                 0        22,880            17,160                   0                 NoYe
              Supervisor    Male           39 27 May 2010 1 Jun. 2013             20,560                    0                 0        20,560            15,420                   0                 NoZhenghongYang
              Supervisor         Male                 47 27 May 2010 1 Jun. 2013             3,900      0   0      3,900       2,925    0        NoXudongZhuang
              Supervisor         Male                 55 27 May 2010 1 Jun. 2013                  0     0   0          0           0    0        YesRujiaZhang
              Supervisor         Male                 61 27 May 2010 1 Jun. 2013                  0     0   0          0           0    0        YesYingqi
             Deputy
    Xie Qing     General             Male                 38 27 May 2010 12 Jun. 2012           12,950      0   0     12,950       9,150    0        No
             Manager
             Deputy
    Wei Bin      General             Male                 43 14 Dec. 2011 1 Jun. 2013           15,684      0   0     15,684      11,763    0        No
             Manager
             Deputy
             GeneralZhou
             Manager and         Male                 51 5 Jan. 2011   1 Jun. 2013                0     0   0          0           0    0        NoXiangfeng
             Secretary to
             the Board
             Deputy
    Zou Jianping General             Male                 57 14 Dec. 2011 1 Jun. 2013                 0     0   0          0           0    0        No
             Manager
    Wang         Financial
                               Female                 50 27 May 2010 1 Jun. 2013           140,013      0   0    140,013     105,010    0        No
    Shuqiong     Manager
    Total           --            --             --            --            --          1,452,173              1,452,173   1,088,566       --         --Equity incentives granted to directors, supervisors and senior management during the reporting period□Applicable √Inapplicable(II)Post-holding particularsPost-holding in shareholders units√Applicable □InapplicableName of the
                                                            Position in
    person holding                                                                                               Receives payment
                                                                the     Beginning date      Ending date of
    any post in any         Name of the shareholder unit                                                       from the shareholder
                                                            shareholder of office term       office term
    shareholder                                                                                                      unit?
                                                                unit
      unit
                                                           Person in
                                                           charge of
    Mr. Joerg                                                  General
                  OSRAM Holding Company Limited                           1 Nov. 2011                        Yes
    Thaele                                                     Lighting
                                                           Manufacturin
                                                           g DepartmentMr. Francis
    Michael           OSRAM Asia-Pacific Co., Ltd.             President      1 Jan. 2006      31 Mar. 2012      YesPiscitelli
    Zhuang Rujia      Prosperity Lamps & Components Limited Director          28 Apr. 1989                       Yes
                  Guangzhou Pearl River Asset              Chairman of
    Zhang Yingqi                                                              1 Aug. 2010      31 Jul. 2012      Yes
                  Management Co., Ltd.                     the Board
    Wu Shengbo        OSRAM Asia-Pacific Co., Ltd.             President      1 Apr. 2012                        YesNotes topost-holding inshareholderunitsPost-holding in other units√Applicable □InapplicableName of the
    person holding                                              Position in   Beginning date    Ending date of    Receives payment
                              Name of other unit
    any post in                                                 other unit    of office term     office term       from other unit?other units
                  Liaoning Huize Certified Public          General
    Liu Zhenping                                                              18 Jul 2004                        Yes
                  Accountants Co., Ltd.                    Manager
                  Shenyang Zhongzhou shenghua financial    General
    Liu Zhenping                                                              5 Aug 2011                         Yes
                  management co., LTD                      Manager
                                                           Secretary-Ge
    Dou Linping       China Illuminating Engineering Society                  5 Jun 2012                         Yes
                                                           neral
                                                           Practicing
    Zhang Haixia      Shenzhen Xintong Law Firm                               6 May 2004                         Yes
                                                           Lawyer
                  Foshan Nanhai Wuzhuang Global Ceramic Chairman of
    Ye Zaiyou                                                                 10 Aug 1993                        Yes
                  Factory                                  the BoardNotes topost-holding inother units(III)Remuneration for directors, supervisors and senior management
    Decision-making                   The Remuneration & Appraisal Committee under the Board of Directors decides the remuneration of
    procedure        for       the directors, supervisors and senior management in accordance with the Plan for Implementing the Equityremuneration of directors, Incentive Mechanism for Middle-and Top-Rank Management Personnel reviewed and approved on the
    supervisors      and    senior 2001 Annual Shareholders’ General Meeting, and the particulars on completing current main financial
    management                        indexes & operating goals, as well as the fulfillment of job responsibilities by them.Basis for determining the
                                  The remuneration of directors, supervisors and senior management who withdraw remuneration in theremuneration of directors,
                                  Company are all decided in accordance with the Company’s Plan for Implementing the Equity Incentive
    supervisors      and    senior
                                  Mechanism for Middle-and Top-Rank Management Personnel and relevant appraisal indexes.managementActual payment of theremuneration of directors,
                                  Parts of the remuneration are paid monthly, and the incentive funds are paid at period-end.supervisors and seniormanagement(IV)Change of directors, supervisors and senior management
    Name                Position            Way of change       Date of change                        Reason for changeFrancis
                                                                                 Mr. Francis Michael Piscitelli resigned as a director of the
    Michael       Director                   Leaving office       12 Apr. 2012
                                                                                 Company due to personal reasons.Piscitelli
    Wu                                       Take post of                            On 23 May 2012, the Company’s 2011 Annual
              Director                                        23 May 2012
    Shengbo                                  director                                Shareholders’ General Meeting reviewed and approved(V)Employees
    Number of on-job employees                                                                                                             8,297Number of retired employees for whom the Company shall bear
                                                                                                                                           0expenses
                                                               Function structure
                           Type of function                                                     Number of personnel
    Production                                                                                                                             7,602
    Sale                                                                                                                                     193
    Technical                                                                                                                                427
    Financial                                                                                                                                 31
    Administration                                                                                                                            44
                                                               Level of education
                          Level of education                                                    Number of personnel
    High school and below                                                                                                                  7,485
    Junior college                                                                                                                           625
    University                                                                                                                                 184
    Master degree                                                                                                                                 3
                                     VI. Report of the Board of Directors(I)Discussion and analysis by the managementDuring the reporting period, the deteriorating European debt crisis led to a grave situation in export.The tight domestic macro-control policy in real estate continued, economic growth obviouslyslowed down and market demand weakened. In face of the unfavorable economic environment, theCompany firmly carried out business targets and relevant measures set at the beginning of the year.It paid close attention to market changes, developed LED and other new products, adjusted theproduct structure and marketing strategy, and enhanced domestic marketing effort. At the same time,based on its actual situation, the Company strengthened internal management, controlled operatingcosts, worked hard on energy saving and consumption reduction, and tried to cushion the hit fromthe global economic crisis to the Company’s operating situation. Meanwhile, in the reporting period,the Company received greater investment incomes from the financial institutions it invested in. As aresult, despite a year-on-year drop in its main business profit, the Company still saw a growth ofbusiness as a whole when compared to the same period of last year.For the reporting period, the Company achieved operating revenue of RMB 1,064.33 million,decrease -2.83% the same period of last year; total profit of RMB 159.3664 million, up 8.14% on ayear-on-year basis; and net profit attributable to owners of the Company of RMB 134.5229 million,representing a year-on-year increase/decrease of 14.13%.Is the Company’s actual business performance 20% lower or higher than any earning forecast or business plan for the report periodwhich has been publicly disclosed earlier?
    □ Yes    □ No   √ InapplicableAnalysis to the business and performances of the Company’s main subsidiaries and stock-participating companies:
                                                                                                    Unit: RMB Ten thousand
    Name of                                                                     Registerred   Shareholdin
                             Business nature             Main products                                     Total assets   Net assets   Net profit
    subsidiary                                                                     capital       g ratioFoshan
                                                       Ballasts,
    Chansheng         Producer of ballasts, electronic
                                                       electronic
    Electronic        transformers      and   electronic                               RMB100           75%                                   144.14
                                                       transformers     and                                   1,181.25        498.40
    Ballast      Co., igniters
                                                       electronic ignitersLtd.
    Foshan            Producer of lamps, electric Lamps,                electric
                                                                                  RMB6000           70%      14,325.41                   -213.59
    Chanchang         lighting products and related lighting products                                                           8,403.56
    Electric           fittings,    providing         relevant and related fittings
    Appliances         installation      and      consulting
    (Gaoming)          servicesCo., Ltd.Foshan
                   R&D, production and sales ofLighting
                   lamps, household appliances
    Taimei Times                                                  Lamps                    RMB50      70%    12,094.24               310.40
                   and fittings, and other electric                                                                   2,359.09
    Lamps       Co.,
                   lighting productsLtd.Foshan
                   Mainly      engaged       in     touristGaoming
                   services,      catering        services,Fuwan
                   sauna, feet bathing, games, Hotel services                         RMB480     100%                            -155.52
    Landscape                                                                                                 4,726.41     -170.83
                   wine & drink retail, water
    Resort      Co.,
                   sports, chesses & cardsLtd.
    Foshan             R&D and production of lamps
    Lighting           of electric light source and
                                                              Lamps                   RMB500     100%
    Lamps       Co., related electrical, metal and                                                             806.58      807.98       1.60
    Ltd.               nonmetal fittings
                   Production        and      sale      of
                   equipments and products ofFSL
                   electric light source; and sale of Products                 of(Xinxiang)
                   components of electric light electric                     light   RMB1000     100%
    Lighting Co.,                                                                                              833.73      819.28     -43.11
                   source,        related     materials, sourceLtd.
                   electrical materials, automobile
                   components, lamps and fittingsQinghaiFozhao
    Lithium      Ion                                              Lithium         ion
                   Producing and selling lithium
    Battery                                                       battery     cathode    RMB5000      51%                            -194.28
                   ion battery cathode materials                                                          4,354.13    3,694.10
    Cathode                                                       materialsMaterials Co.,Ltd.
                   Financial leasing service forGuangdong
                   new-energy        automobiles         &Fozhao
                   main                     components, Leasing service              RMB20000    100%    20,495.87   20,456.69   235.36
    Leasing     Co.,
                   energy-saving lighting productsLtd.
                   & projects
    Guangdong          Production and sale of LED
                                                              LED         lighting
    Fozhao      New lighting products and LED                                            RMB22200   54.95%                           -104.76
                                                              products                                    1,244.55     779.12Light Sources lighting application products;
    Technology        lighting product installationCo., Ltd.
                  Production    of energy-savingNanjing
                  lighting products, lamps andFozhao
                  lighting equipments; lightingLighting
                  projects;         energy-saving Lighting products    RMB4168.32          100%     10,767.19
    Components                                                                                                         7,992.77       93.25
                  technology development andManufacturin
                  production of relevant fittings;g Co., Ltd.
                  sale of self-produced productsAll risk factors that might have adverse impact on the Company’s effort to realize its future development strategy and business goals:1. Influence from the macro-economyDue to the deteriorating European debt crisis, global economic recovery is still very slow. Europe forms a large proportion in theCompany’s export, so the weak European economy affects the Company’s export. Domestic economy sees an obvious slowdown ingrowth, with decreasing market demand in the industry.2. Market risksCurrently, the Company is mainly engaged in light source and lamp products. Competition becomes fiercer in the domestic electriclight source industry. The fights over product prices and marketing channels will lead to rising operating expenses of electric lightsource enterprises and the average profit in the industry becomes smaller.1. Main business lines and their operating results(1)Main business lines classified by industries and products
                                                                                                                      Unit: RMB Yuan
                                                                               Increase/decrease                   Increase/decrease
                                                                                                 Increase/decrease
                                                                                  of operating                       of gross profit
                                                                                                 of operating cost
    Industries/product        Operating                          Gross profit rate       revenue                         rate compared
                                            Operating cost                                         compared with
         s                 revenue                                 (%)           compared with                       with the same
                                                                                                  the same period
                                                                                the same period                     period last year
                                                                                                    last year (%)
                                                                                  last year (%)                            (%)IndustriesLighting fixtures 1,043,293,038.0
                                           781,366,213.55             25.49%            -0.87%            -2.07%               0.92%
    and lamps                              7
    Hotel services            9,948,208.51        7,316,095.61            26.46%            -3.44%            21.38%            -14.98%ProductsLighting fixtures 1,043,293,038.0
                                           781,366,213.55             25.49%            -0.87%            -2.07%               0.92%
    and lamps                              7
    Hotel services            9,948,208.51        7,316,095.61            26.46%            -3.44%            21.38%            -14.98%Explanation to the main business performances classified by industries and products:No significant change.Explanation to the reasons for any significant year-on-year change of the gross profit rate:No significant change.(2)Main business lines classified by regions
                                                                                                                     Unit: RMB Yuan
                                                                                            Increase/decrease compared with the same
                    Region                               Operating revenue
                                                                                                       period last year (%)Lighting fixtures and lamps
    Domestic                                                                671,284,618.74                                      -1.29%
    Overseas                                                                372,008,419.33                                      -5.55%Hotel industry
    Domestic                                                                   9,948,208.51                                     -3.34%(3)Reasons for significant changes in main business and its structure□Applicable √Inapplicable(4)Reasons for significant changes in profitability of main business (gross profit rate) compared with thatin the last year□Applicable √Inapplicable(5)Analysis on reasons of significant changes in profit breakdown compared with the last year□Applicable √Inapplicable(6) Net profit of more than 10% share company business nature, main products or services andnet profit, etc□Applicable √Inapplicable2. Internal control rules in relation to fair value measurement√Applicable □InapplicableItems related to fair value measurement:
                                                                                                                   Unit: RMB Yuan
                                              Gains/losses on fair   Accumulative fair          Impairment
        Item               Opening amount     value changes in the      value changes        provisions for the   Closing amount
                                                reporting period     recorded into equity    reporting periodFinancial assets
    Including:            1.
    Financial         assets
    measured     at     fair       4,097,366.22             64,722.78                                                          4,162,089value whose changes
    are   recorded     into
    current     gains   andlossesOf which: derivativefinancial assets2. Available-for-sale
                              67,814,691.84                                    -941,870.72                            66,872,821.12financial assetsSubtotal of financialassetsFinancial liabilitiesInvesting propertyProductionbiological assetsOthers
    Total                         71,912,058.06               64,722.78            -941,870.72                            71,034,910.12Where the value estimation technique was adopted to determine fair value for the same or similar items within the two years, is thereany significant difference between the value estimation results? If yes, please state in detail.
    □Yes     □ No   √ Inapplicable3. Foreign-currency financial assets and liabilities held□Applicable √Inapplicable(II)Investments1. General utilization of the raised funds□Applicable √Inapplicable2. Projects promised to be invested with raised funds□Applicable √Inapplicable3. Change of projects invested with raised funds□Applicable √Inapplicable4. Significant projects invested with non-raised funds
    □Applicable   √ Inapplicable(III)Revision of the Board of Directors’ business plan for the second half of the year□Applicable √Inapplicable(IV)Business performance estimate for Jan.-Sept. 2012Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period from the beginningof the year to the end of the next report period compared with the same period of last year, as well as the reasons□Applicable √Inapplicable(V)Explanation of the Board of Directors on “Non-standard Auditing Report” issued by theCPA firm for the report period□Applicable √Inapplicable(VI)Explanation of the Board of Directors on changes and solutions of the issues involved inthe “Non-standard Auditing Report” issued by the CPA firm for last year□Applicable √Inapplicable(VII)State the discussion results of the Board of Directors on the reasons and influence ofthe Company’s accounting policy and estimate alterations or significant accounting errorcorrection□Applicable √Inapplicable(VIII)Formulation and execution of the Company’s cash dividend policyIn the reporting period, according to the CSRC Notice on Further Implementing Matters Related to Cash DividendDistribution of Listed Companies (Zheng-Jian-Fa [2012] No. 37) and the Guangdong CSRC Notice on FurtherImplementing Regulations Related to Dividend Distribution of Listed Companies (Guang-Dong-Zheng-Jian [2012] No. 91),taking into account its actual situation, the Company formulated the Management Rules for Profit Distribution and theReturn for Shareholder Plan for the Coming Three Years (2012-2014), and amended the profit distribution articles in itsArticles of Association. The Company stipulated its cash dividend policy and the relevant decision-making and supervisionprocedures. Meanwhile, it specified the suggestion and supervision power on its dividend distribution of all shareholders(especially minority shareholders) and independent directors, as well as the relevant decision-making procedure andsupplementary rules. The profit accumulatively distributed in cash by the Company for the previous three years (2009-2011)accounted for 91.79% of the net profit attributable to shareholders of the Company.(IX)Pre-plan for profit distribution or turning capital reserve into share capital□Applicable √Inapplicable(X)The accumulative retained profit as at the end of 2011 is a positive number but theCompany has not put forward a cash dividend pre-plan.□Applicable √Inapplicable(XI)Other matters that need to be disclosedNaught(XII)The Company’s liabilities, credit changes and future cash arrangements fordebt-clearing (Only listed companies with convertible corporate bonds are required tofill the table below.)□Applicable √Inapplicable
                                             VII. Significant Events(I)Corporate governanceSince its listing, the Company has strictly followed relevant regulations and requirements of Company Law, Securities Law, Code ofCorporate Governance of Listed Companies and Guidelines on Articles of Association of Listed Companies, set up governancestructure of responsible shareholders’ general meeting, the Board of Directors, the Supervisory Committee and managers, whoperformed right of decision-making, execution and supervision respectively according to their duties. The Company also formulatedArticles of Association, Rules for Procedure of Shareholders’ General Meeting, Rules for Procedure of the Board of Directors, Rulesfor Procedure of the Supervisory Committee, Work System for Independent Directors, Specific Work Rules for General Manager, etc.During the reporting period, in order to further improve its internal control system, according to requirements of the regulatoryauthorities, the Company formulated the work plan and implementation plan for the internal control improvement. Currently, therelevant work is proceeding as scheduled. In order to improve its corporate governance and information disclosure quality, theCompany formulated the Work Rules for Company Secretary according to the Opinion of Guangdong CSRC Bureau aboutEnhancing Management of Company Secretaries of Listed Companies in Guangdong and the Notice of Guangdong CSRC Bureauabout Conducting Special Checks for Implementation of the Work Rules for Company Secretaries of Listed Companies. At the sametime, according to the notices issued by CSRC or Guangdong CSRC Bureau about cash dividend distribution of listed companies,taking into account its actual situation, the Company amended the cash dividend articles in its Articles of Association and formulatedthe Management Rules for Profit Distribution and the Return for Shareholder Plan for the Coming Three Years (2012-2014).Currently, the actual situation of the Company’s governance meets requirements of applicable laws, regulations and regulatorydocuments.(II)Execution of the plans for profit distribution, turning capital reserve into share capitalor new share issuance which had been made in the previous period and were carried out inthe report period√Applicable □InapplicableOn 23 May 2012, the 2011 Annual Profit Distribution Plan was reviewed and approved at the Company’s 2011 Annual Shareholders’General Meeting. According to the Plan, based on the total 978,563,745 shares as at the end of 2011, the Company distributed a cashdividend of RMB 2.5 for every 10 A-shares or B-shares (tax included and dividends for B-share holders paid in HK dollars). ForA-shares, the date of record was 11 Jul. 2012 and the ex-dividend date was 12 Jul. 2012. And for B-share holders, the last tradingdate was 11 Jul. 2012, the ex-dividend date was 12 Jul. 2012 and the date of record was 16 Jul. 2012. The Announcement onImplementation of the 2011 Annual Profit Distribution Plan was disclosed on China Securities Journal, Securities Times, Ta KungPao and http://www.cninfo.com.cn dated 4 Jul. 2012. The aforesaid dividend distribution has been executed according to the relevantresolution of the 2011 Annual Shareholders’ General Meeting and the dividend distribution implementation announcement.(III) Significant litigations and arbitrations□Applicable √InapplicableThe Company was not involved in any significant lawsuit or arbitration during the reporting period.(IV) Bankruptcy or reorganization events□Applicable √Inapplicable(V) Holding equity of other listed companies and joint financial enterprises1. Securities investment√Applicable □Inapplicable
                                                                                                                       Proportion in
                                                                      Initial         Number of        Closing            the total         Gain/loss in
    Serial     Variety of          Code of          Abbr. of        investment shares held at          carrying           closing           the reporting
    No.       securities          securities       securities       amount              the           amount            securities         period (RMB
                                                                   (RMB Yuan)         period-end     (RMB Yuan)         investment             Yuan)
                                                                                                                        amount (%)
    1            Funds                                                 5,000,000                         4,162,089         100%
    Other securities investments held at the period-end                                       --
    Gain/loss on selling securities in the reporting period                         --              --                --                   --
    Total                                                                                           --                                   100%Disclosure date of the board announcement of securities
                                                                   25 Nov 2010investment approvalDisclosure date of the general meeting announcement ofsecurities investment approval2. Holding equity of other listed companies√Applicable □Inapplicable
                                                                                                      Change of
                                                   Proportion in
                                       Initial                       Closing         Gain/loss in      owners’
                                                        the
                                     investment                      carrying        the reporting equity during Accounting
    Stock code       Stock abbr.                    company’s                                                                              Stock source
                                      amount                         amount          period (RMB the reporting                 title
                                                   total equity
                                    (RMB Yuan)                     (RMB Yuan)           Yuan)        period (RMB
                                                       (%)
                                                                                                        Yuan)
                                                                                                                       Available-for
                 Everbright                                        66,872,821.1                                        -sale                Additional
    601818                                30,828,816          0.06%                                        800,590.11
                 Bank                                                           2                                      financial            issue
                                                                                                                       assets
                                                                   66,872,821.1
    Total                              30,828,816            --                                            800,590.11               --                  --
                                                                                23. Holding equity of non-listed financial enterprises√Applicable □Inapplicable
                                                                                          Change of
                                            Proportion in
    Name of the       Initial                                   Closing      Gain/loss in     owners’
                                                 the
    non-listed    investment    Number of                      carrying     the reporting equity during Accounting
                                             company’s                                                             Stock source
    financial      amount      shares held                     amount      period (RMB the reporting        title
                                            total equity
    enterprise   (RMB Yuan)                                   (RMB Yuan)       Yuan)       period (RMB
                                                (%)
                                                                                            Yuan)
    China                                             Less                                                 Long-term
                                                                                                                    Additional
    Guangfa          500,000.00      229,792          than       500,000.00                                equity
                                                                                                                    issue
    Bank                                                  5%                                               investment
                                                                                                       Long-term
                                                                                                                    Additional
    Xiamen Bank 208,574,217        85,714,200          7.99% 208,574,217                                   equity
                                                                                                                    issue
                                                                                                       investment
    Total           209,074,217    85,943,992        --         209,074,217                                     --              --4. Trading stocks of other listed companies□Applicable √Inapplicable(VI) Assets transaction events1. Purchase of assets□Applicable √Inapplicable2. Sale of assets□Applicable √Inapplicable3. Exchange of assets□Applicable √Inapplicable4. Business combination□Applicable √Inapplicable5. Progress of these events after the publication of the assets reorganization report or public notices on thepurchases or sales of assets, as well as the influences of these events on the operation results and financialstatus of the Company in this report period□Applicable √Inapplicable(VII) Explanation on shareholding increase scheme during the report period proposed orimplemented by the principal shareholders and act-in-concert persons□Applicable √Inapplicable(VIII) Implementation situation and influence of equity incentive plan of the Company□Applicable √Inapplicable(IX) Significant related-party transactions1. Related-party transactions relevant to routine operation√ Applicable □ Inapplicable
                                                                                                                                                                                            Reason for
                                                                                                                                                                                            significant
                                                                           Pricing                                        Proportion in    Settlement
                                      Type of the     Content of the                       Transaction     Transaction                                     Influence on     Market price    difference
                                                                       principle of the                                   same kind of    method of the
    Related party      Relationship     related-party    related-party                       price (RMB      amount (RMB                                      the profits of   (RMB Ten       between the
                                                                        related-party                                     transactions    related-party
                                      transaction      transaction                        Ten thousand)   Ten thousand)                                    the Company       thousand)     transaction
                                                                         transaction                                          (%)          transaction
                                                                                                                                                                                           price and the
                                                                                                                                                                                           market price
                   Shareholder
    Prosperity                         Selling products
                   holding more
    Lamps          &                   and    providing Electro-optical                                                                                       Insignificant
                   than       5%                                       Market pricing          3,182.89        3,182.89           2.91% Remittance                               3,182.89 No
    Components                         labor services to source products                                                                                      influence
                   shares of the
    Limited                            related parties
                   CompanyProsperity
                   Company         Selling products(Hangzhou)
                   controlled by and      providing Electro-optical                                                                                       Insignificant
    Lighting     and                                                       Market pricing             20.05           20.05           0.02% Remittance                                  20.05 No
                   related natural labor services to source products                                                                                      influenceElectrical Co.,
                   persons         related partiesLtd.
    Prosperity         Company         Selling products
    Electrical         controlled by and      providing Electro-optical                                                                                       Insignificant
                                                                       Market pricing             91.56           91.56           0.08% Remittance                                  91.56 No
    (China)      Co., related natural labor services to source products                                                                                       influence
    Ltd.               persons         related parties
    OSRAM              Company         Selling products
    (China)            affected      by and   providing Electro-optical                                                                                       Insignificant
                                                                       Market pricing            806.11          806.11           0.74% Remittance                                 806.11 No
    Lighting     Co., related natural labor services to source products                                                                                       influence
    Ltd.               persons         related parties
    Swanki             Company         Selling products Electro-optical Market pricing               133.05          133.05           0.12% Check             Insignificant            133.05 No
    (Foshan)            controlled by and      providing source products                                                          influence
    Electric            related natural labor services to
    Corporation         persons        related parties
    Zlamp               Company        Selling products
    (Foshan)            controlled by and      providing Electro-optical                                                          Insignificant
                                                                        Market pricing   151.28   151.28   0.14% Check                        151.28 No
    Enterprise Co., related natural labor services to source products                                                             influence
    Ltd.                persons        related partiesFoshan
                    Company        Selling productsHongbang
                    affected    by and     providing Electro-optical                                                          Insignificant
    Electrical     &                                                        Market pricing   532.62   532.62   0.49% Check                        532.62 No
                    related natural labor services to source products                                                         influence
    Lighting     Co.,
                    persons        related partiesLtd.
    Foshan              Company        Selling products
    Feidelun            affected    by and     providing Electro-optical                                                          Insignificant
                                                                        Market pricing   612.32   612.32   0.56% Check                        612.32 No
    Electric     Co., related natural labor services to source products                                                           influence
    Ltd.                persons        related partiesNanjing
    Kaixiang            Company        Selling products
    Electric            affected    by and     providing Electro-optical                                                          Insignificant
                                                                        Market pricing   215.51   215.51    0.2% Remittance                   215.51 No
    Lighting            related natural labor services to source products                                                         influence
    Source       Co., persons          related partiesLtd.Haolin
    Lighting       & Company           Selling products
    Electrical          affected    by and     providing Electro-optical                                                          Insignificant
                                                                        Market pricing    20.06    20.06   0.02% Check                         20.06 No
    Department of related natural labor services to source products                                                               influence
    Foshan              persons        related partiesChanchengDistrict
    Foshan            Company           Selling products
    Gaoming Shijia affected         by and     providing Electro-optical                                                             Insignificant
                                                                           Market pricing    24.65    24.65   0.02% Check                         24.65 No
    Lighting     Co., related natural labor services to source products                                                              influence
    Ltd.              persons           related parties
    Prosperity                          Purchasing
                  Company
    (Xinxiang)                          products      and
                  controlled by                         Electro-optical                                                          Insignificant
    Lighting                            accepting labor                        Market pricing     7.35     7.35   0.01% Remittance                     7.35 No
                  related natural                       source materials                                                         influence
    Machinery Co.,                      services     from
                  persons
    Ltd.                                related parties
    Xiamen                              Purchasing
                  Company
    Jiandawei                           products      and
                  controlled by                         Electro-optical                                                          Insignificant
    Optoelectronics                     accepting labor                        Market pricing    266.7    266.7   0.41% Remittance                    266.7 No
                  related natural                       source materials                                                         influence
    Technology                          services     from
                  persons
    Co., Ltd                            related parties
    Foshan Nanhai                       Purchasing
                  Company
    Guangming                           products      and
                  controlled by                         Electro-optical                                                          Insignificant
    Electric                            accepting labor                        Market pricing   160.47   160.47   0.24% Check                        160.47 No
                  related natural                       source materials                                                         influence
    Appliance Co.,                      services     from
                  persons
    Ltd.                                related parties
    Prosperity                          Purchasing
                  Company
    (Xinxiang)                          products      and
                  controlled by                         Electro-optical                                                          Insignificant
    Electro-Optical                     accepting labor                        Market pricing    12.29    12.29   0.02% Remittance                    12.29 No
                  related natural                       source materials                                                         influence
    Machinery Co.,                      services     from
                  persons
    Ltd                                 related parties
    Prosperity        Shareholder       Purchasing
                                                        Electro-optical                                                          Insignificant
    Lamps          & holding more products            and                      Market pricing   353.87   353.87   0.54% Remittance                   353.87 No
                                                        source materials                                                         influence
    Components        than       5% accepting labor
    Limited          shares of the services          from
                 Company            related parties
                                    Purchasing
    Prosperity       Company
                                    products      and
    Electrical       controlled by                          Electro-optical                                                                                        Insignificant
                                    accepting labor                        Market pricing               132.59        132.59            0.2% Remittance                                     132.59 No
    (China)      Co., related natural                       source materials                                                                                       influence
                                    services     from
    Ltd.             persons
                                    related parties
                                    Purchasing
    Zlamp            Company
                                    products      and
    (Foshan)         controlled by                          Electro-optical                                                                                        Insignificant
                                    accepting labor                        Market pricing                 4.27          4.27           0.01% Check                                            4.27 No
    Enterprise Co., related natural                         source materials                                                                                       influence
                                    services     from
    Ltd.             persons
                                    related parties
                                    Purchasing
    Foshan           Company
                                    products      and
    Feidelun         affected     by                        Electro-optical                                                                                        Insignificant
                                    accepting labor                        Market pricing          1,148.58         1,148.58           1.75% Check                                     1,148.58 No
    Electric     Co., related natural                       source materials                                                                                       influence
                                    services     from
    Ltd.             persons
                                    related partiesNanjing
                                    Purchasing
    Kaixiang         Company
                                    products      and
    Electric         affected     by                        Electro-optical                                                                                        Insignificant
                                    accepting labor                        Market pricing               304.26        304.26           0.46% Remittance                                     304.26 No
    Lighting         related natural                        source materials                                                                                       influence
                                    services     from
    Source       Co., persons
                                    related partiesLtd.
    Total                                                                             --               --               8,180.48                         --               --               --               --
    Details of large amount of sales returns                                   NaughtNecessity and continuity of related-party transaction as well as The above transactions on purchasing products and receiving labor service are the normal activities to meet the needs of thereason of choosing the related party (but not other transaction Company’s routine operation, with the purchasing principles of market pricing and optimum selecting; while the transactions on
    parties) to conduct the said transaction                                   selling goods and providing labor services are the routine operating activities for the Company, with the principle of market pricing,
                                                                     which are good for the Company to increase operating revenue and profits.Impacts of related-party transaction on independency of the
                                                                     NaughtCompanyDependant degree of the Company on related party and relevant
                                                                     Naughtsolutions for the dependence (if any)As for the prediction on the total amount of routine related-partytransactions to be occurred in the report period by relevant types, During the reporting period, the Company’s related-party transactions are all routine business, which are carried out as schedule.the actual performance in the report period
                                                                     It’s the actual needs for the Company to carry related-party transactions on trading products and labor service with related parties,
                                                                     and the said transactions are compliant, actual, objective with rational & fair prices and no significant changes in pricing policies,Explanation on related-party transaction
                                                                     which have no influence on its financial status and authenticity & reliability of operating results, without any harm to the interest of
                                                                     the Company and its shareholders, existing no intra-industry competition.Related-party transactions relevant to routine operation
                                                       Selling products and providing labor services to related parties           Purchasing products and accepting labor services from related parties
                Related party                      Transaction amount (RMB Ten               Proportion in same kind of           Transaction amount (RMB Ten               Proportion in same kind of
                                                             thousand)                            transactions (%)                           thousand)                           transactions (%)
    Prosperity Lamps & Components Limited                                         3,182.89                                    2.91%                               353.87                                  0.54%
    Prosperity    (Hangzhou)        Lighting   and
                                                                                20.05                                     0.02%                                     0                                       0Electrical Co., Ltd.
    Prosperity Electrical (China) Co., Ltd.                                         91.56                                     0.08%                               132.59                                     0.2%
    OSRAM (China) Lighting Co., Ltd.                                               806.11                                     0.74%                                     0                                       0
    Swanki (Foshan) Electric Corporation                                           133.05                                     0.12%                                     0                                       0
    Zlamp (Foshan) Enterprise Co., Ltd.                                            151.28                                     0.14%                                  4.27                                 0.01%Foshan Hongbang Electrical & Lighting Co.,
                                                                               532.62                                     0.49%                                     0                                       0Ltd.
    Foshan Feidelun Electric Co., Ltd.                                             612.32                      0.56%                            1,148.58                              1.75%Nanjing Kaixiang Electric Lighting Source
                                                                               215.51                       0.2%                              304.26                              0.46%Co., Ltd.Haolin Lighting & Electrical Department of
                                                                                20.06                      0.02%                                   0                                   0Foshan Chancheng District
    Foshan Gaoming Shijia Lighting Co., Ltd.                                        24.65                      0.02%                                   0                                   0Prosperity (Xinxiang) Lighting Machinery
                                                                                    0                                                           7.35                              0.01%Co., Ltd.
    Xiamen         Jiandawei      Optoelectronics
                                                                                    0                                                          266.7                              0.41%Technology Co., Ltd
    Foshan       Nanhai   Guangming      Electric
                                                                                    0                                                         160.47                              0.24%Appliance Co., Ltd.
    Prosperity      (Xinxiang)    Electro-Optical
                                                                                    0                                                          12.29                              0.02%Machinery Co., Ltd
    Total                                                                         5,790.10                     5.30%                            2,390.38                              3.64%Of which, the amount arising from the related-party transactions regarding the Company selling products to or providing services for the first and second majority shareholders and theiracting-in-concert parties was RMB 41.0061 million for the reporting period.2. Related-party transactions regarding purchase and sales of assets□Applicable √Inapplicable3. Significant related-party transitions with joint investments□Applicable √Inapplicable4. Significant credits and liabilities with related parties□Applicable √InapplicableCapital occupation during the report period and debt-clearing progress□Applicable √InapplicableThe accountability plan put forward by the Board of Directors when the Company had not completed collecting the capital occupied for non-operating purposes by the end of the report period□Applicable √Inapplicable5. Other significant related-party transactionsNo(X) Significant contracts and execution1. The trust, contract and lease whose profits reaching more than 10% (including 10%) of the totalprofits of the Company in the report period(1) Status of trust□Applicable √Inapplicable(2)Particulars about contracting□Applicable √Inapplicable(3)Particulars about leasing□Applicable √Inapplicable2. Guarantees provided by the Company□Applicable √Inapplicable3. Entrusted financial management□Applicable √Inapplicable4. Performance of significant contracts relevant to routine operation□Applicable √Inapplicable5. Other significant contracts□Applicable √Inapplicable(XI) Explanation on issuing corporate bonds□Applicable √Inapplicable(XII) Performance of commitments1. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in thereport period, or such commitments carried down into the report period□Applicable √Inapplicable2. The Company’s assets or projects exist profitable prediction and the report period is in such predictionperiod, it states the profits from the assets or projects reaching original prediction and relevant reasons□Applicable √Inapplicable(XIII) Items of other comprehensive income
                                                                                                                Unit: RMB Yuan
                                  Items                                     This report period        Same period of last year
    1. Profits/(losses) from available-for-sale financial assets                            -235,467.68             -14,747,828.48Less: Effects on income tax generating from available-for-sale
                                                                                         -35,320.15               -2,212,174.27financial assetsNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior period
    Subtotal                                                                                -200,147.53             -12,535,654.212. Interests in the investee entities’ other comprehensive income as perequity methodLess: Effects on income tax generating from the interests in theinvestee entities’ other comprehensive income as per equity methodNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior periodSubtotal3. Profits/(losses) from cash flow hedging instrumentLess: Effects on income tax generating from cash flow hedginginstrumentNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior periodThe adjustment value that is the converted initial recognition amount ofarbitrage projectSubtotal4. Converted amount of foreign currency financial statementsLess: Net value of disposal of oversea operations that recognized intocurrent profit and lossSubtotal5. OtherLess: Effects on income tax generating from the others that includedinto other comprehensive incomeNet amount transferred into profit and loss in the current period thatrecognized into other comprehensive income in prior periodSubtotal
    Total                                                                                      -200,147.53              -12,535,654.21(XIV) Particulars about researches, visits and interviews received in this report period
                                                                                                         Main     discussion    and
    Time of reception        Place of reception     Way of reception        Visitor type       Visitor     materials provided by the
                                                                                                         Company
                                                                                         Founder         Operating particulars of
    3 Feb. 2012               Company office        Field research       Institution
                                                                                         Securities      the Company
                                                                                         Guosen          Operating particulars of
    23 May 2012               Company office        Field research       Institution
                                                                                         Securities      the Company(XV) Particulars about engagement and disengagement of CPAs firmHas this semi-annual report been audited?
    □ Yes   √ No   □ InapplicableWhether or not to hire accounting firms
    □ Yes   √ No   □ Inapplicable(XVI) Particulars about punishment and rectification order received by the Company, itsdirectors, supervisors, senior executives, shareholders, actual controller and acquirer□Applicable √Inapplicable(XVII) Explanation on other significant events□Applicable √Inapplicable(XVIII) Particulars about significant changes in the profitability, asset status and credit statusof the Company’s convertible bonds guarantor□Applicable √Inapplicable(XIX) Index for information disclosure
                                                                                              Internet website for disclosing
                                    Newspapers for disclosing
              Event                                                      Publishing date      information and the searching
                                  information and relevant page
                                                                                                        approachAnnouncement of the
                                  Securities Times, China
    Resolutions of the 13th Session                                     13 Jan. 2012           http://www.cninfo.com.cn
        th
                                  Securities Journal, Ta Kung Paoof the 6 Board of DirectorsAnnouncement of the
                                  Securities Times, China
    Resolutions of the 14th Session                                     27 Mar. 2012           http://www.cninfo.com.cn
        th
                                  Securities Journal, Ta Kung Paoof the 6 Board of DirectorsAnnouncement of theResolutions of the 15th Sessionof the 6th Board of Directors,
    Announcement on Increasing        Securities Times, China
                                                                    6 Apr. 2012            http://www.cninfo.com.cn
    Capital to Wholly-funded          Securities Journal, Ta Kung PaoSubsidiary Foshan GaomingFuwan Landscape Resort Co.,Ltd.
    Correction Announcement by        Securities Times, China
                                                                    7 Apr. 2012            http://www.cninfo.com.cn
    the Board of Directors            Securities Journal, Ta Kung Pao
    Announcement on Director          Securities Times, China
                                                                    13 Apr. 2012           http://www.cninfo.com.cn
    Resignation                       Securities Journal, Ta Kung Pao
    Announcement on Senior            Securities Times, China
                                                                    23 Apr. 2012           http://www.cninfo.com.cn
    Executive Resignation             Securities Journal, Ta Kung PaoAbstract of the 2011 AnnualReport, Announcement of theResolutions of the 16th Sessionof the 6th Board of Directors,Announcement of the
    Resolutions of the 5th Session    Securities Times, China
                                                                    25 Apr. 2012           http://www.cninfo.com.cn
        th
    of the 5 Supervisory              Securities Journal, Ta Kung PaoCommittee, Notice of the 2011Annual Shareholders’ GeneralMeeting, Abstract of the FirstQuarter Report for 2012,Announcement on RoutineRelated-party Transactions for2012Announcement of the
                                  Securities Times, China
    Resolutions of the 2011 Annual                                      24 May 2012                http://www.cninfo.com.cn
                                  Securities Journal, Ta Kung PaoShareholders’ General MeetingAnnouncement of the
                                  Securities Times, China
    Resolutions of the 17th Session                                     13 Jun. 2012               http://www.cninfo.com.cn
        th
                                  Securities Journal, Ta Kung Paoof the 6 Board of DirectorsAnnouncement on Investment
    Project Progress on Qinghai       Securities Times, China
                                                                    20 Jun. 2012               http://www.cninfo.com.cn
    Fozhao Lithium Energy             Securities Journal, Ta Kung PaoExploitation Co., Ltd.Announcement of theResolutions of the 18th Sessionof the 6th Board of Directors,Announcement on TransferringEquity Interests of Shenzhen
                                  Securities Times, China
    Liangke Venture Capital Co.,                                        29 Jun. 2012               http://www.cninfo.com.cn
                                  Securities Journal, Ta Kung PaoLtd., Announcement onLiquidating and Writing offControlled SubsidiaryGuangdong Fozhao New LightSources Technology Co., Ltd.Announcement onImplementation of the 2011Annual Profit Distribution Plan, Securities Times, China
                                                                    4 Jul. 2012                http://www.cninfo.com.cn
    Announcement on Winning a         Securities Journal, Ta Kung PaoState High-efficient LightingProduct Promotion Project
                                             VIII. Financial Report(I) Auditor’s reportHas this semi-annual report been audited?
    □ Yes √ No    □ Inapplicable(II) Financial statementsConsolidated statements or not?
    √Yes □No     □ InapplicableThe monetary unit in the financial statements of the financial report is RMB Yuan if not specified otherwise.Monetary unit of notes to financial statements: RMB Yuan1. Consolidated balance sheetPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                              Unit: RMB Yuan
                  Item                  Note           Closing balance             Opening balanceCurrent Assets:
    Monetary funds                                                 926,267,115.32              690,691,751.15
    Settlement reserves                                                       0.00                       0.00
    Intra-group lendings                                                      0.00                       0.00
    Transactional financial assets                                    4,162,089.00               4,097,366.22
    Notes receivable                                               118,432,741.89              120,417,089.71
    Accounts receivable                                            343,673,880.56              300,223,854.32
    Accounts paid in advance                                        47,098,715.61               41,032,860.94
    Premiums receivable                                                       0.00                       0.00
    Reinsurance premiums receivable                                           0.00                       0.00
    Receivable reinsurance contract
                                                                            0.00                       0.00reserves
    Interest receivable                                                604,931.51                  506,347.11
    Dividend receivable                                                      0.00                       0.00
    Other accounts receivable                                       10,810,165.66               18,851,280.96
    Financial assets purchased under
                                                                            0.00                       0.00agreements to resell
    Inventories                                                    488,812,836.79              493,613,449.06
    Non-current assets due within 1
                                                                            0.00                       0.00year
    Other current assets                                                      0.00                       0.00
    Total current assets                                           1,939,862,476.34            1,669,433,999.47Non-current assets:
    Loans by mandate and advances
                                                                            0.00                       0.00granted
    Available-for-sale financial assets                             66,872,821.12               67,814,691.84
    Held-to-maturity investments                                              0.00                       0.00
    Long-term accounts receivable                                             0.00                       0.00
    Long-term equity investment                                    445,805,334.76              447,024,125.94
    Investing property                                                        0.00                       0.00
    Fixed assets                                                   600,383,974.08              643,078,677.62
    Construction in progress                   112,038,149.68      88,017,369.74
    Engineering materials                                 0.00               0.00
    Disposal of fixed assets                              0.00               0.00
    Production biological assets                          0.00               0.00
    Oil-gas assets                                        0.00               0.00
    Intangible assets                          216,473,531.48     218,637,493.54
    R&D expense                                           0.00               0.00
    Goodwill                                              0.00               0.00
    Long-term deferred expenses                           0.00               0.00
    Deferred income tax assets                  20,876,528.89      21,547,993.12
    Other non-current assets                              0.00               0.00
    Total of non-current assets                    1,462,450,340.01   1,486,120,351.80
    Total assets                                   3,402,312,816.35   3,155,554,351.27Current liabilities:
    Short-term borrowings                                 0.00               0.00
    Borrowings from Central Bank                          0.00               0.00
    Customer bank deposits and due
    to     banks     and     other     financial               0.00               0.00institutions
    Intra-group borrowings                                0.00               0.00
    Transactional financial liabilities                   0.00               0.00
    Notes payable                                         0.00               0.00
    Accounts payable                           325,681,686.57     196,871,864.30
    Accounts received in advance                19,585,358.06      18,464,449.37
    Financial     assets        sold    for
                                                           0.00               0.00repurchase
    Handling           charges         and
                                                           0.00               0.00commissions payable
    Employee’s            compensation
                                                 33,126,361.68      53,489,679.18payable
    Tax payable                                 23,432,323.52       -2,082,582.68
    Interest payable                                      0.00               0.00
    Dividend payable                               107,123.26                0.00
    Other accounts payable                       4,176,433.31      27,119,424.60
    Reinsurance premiums payable                          0.00               0.00
    Insurance contract reserves                      0.00               0.00
    Payables for acting trading of
                                                   0.00               0.00securities
    Payables for acting underwriting
                                                   0.00               0.00of securities
    Non-current liabilities due within
                                                   0.00               0.001 year
    Other current liabilities                        0.00               0.00
    Total current liabilities               406,109,286.40     293,862,834.77Non-current liabilities:
    Long-term borrowings                             0.00               0.00
    Bonds payable                                    0.00               0.00
    Long-term payables                               0.00               0.00
    Specific payables                                0.00               0.00
    Estimated liabilities                            0.00               0.00
    Deferred income tax liabilities         5,527,101.70       5,668,382.31
    Other non-current liabilities          19,515,441.69      17,677,441.69
    Total non-current liabilities            25,042,543.39      23,345,824.00
    Total liabilities                       431,151,829.79     317,208,658.77Owners’ equity (or shareholders’equity)
    Paid-up capital (or share capital)    978,563,745.00     978,563,745.00
    Capital reserves                      621,392,658.98     622,193,249.09
    Less: Treasury stock                             0.00               0.00
    Specific reserves                                0.00               0.00
    Surplus reserves                      583,537,290.22     583,537,290.22
    Provisions for general risks                     0.00               0.00
    Retained profits                      741,107,318.17     606,584,375.02
    Foreign exchange difference                      0.00               0.00Total equity attributable to owners
                                       2,924,601,012.37   2,790,878,659.33of the Company
    Minority interests                       46,559,974.19      47,467,033.17Total owners’ (or shareholders’)
                                       2,971,160,986.56   2,838,345,692.50equityTotal liabilities and owners’ (or
                                       3,402,312,816.35   3,155,554,351.27shareholders’) equity
    Legal representative: Zhong Xincai                Person-in-charge of the accounting work: Zhong XincaiChief of the accounting division: Wang Shuqiong2. Balance sheet of the Company
                                                                                                     Unit: RMB Yuan
                  Item                  Note      Closing balance                       Opening balanceCurrent Assets:
    Monetary funds                                            621,184,567.42                         412,626,723.50
    Transactional financial assets                               4,162,089.00                           4,097,366.22
    Notes receivable                                          117,402,741.89                         117,057,089.71
    Accounts receivable                                       351,726,253.77                         321,717,684.58
    Accounts paid in advance                                   54,379,899.18                          19,337,394.94
    Interest receivable                                                     0.00                               0.00
    Dividend receivable                                              401,712.22                               0.00
    Other accounts receivable                                  59,794,073.94                          61,235,503.93
    Inventories                                               429,218,781.00                         441,232,800.79
    Non-current assets due within 1
                                                                          0.00                               0.00year
    Other current assets                                                    0.00                               0.00
    Total current assets                                      1,638,270,118.42                       1,377,304,563.67Non-current assets:
    Available-for-sale financial assets                        66,872,821.12                          67,814,691.84
    Held-to-maturity investments                                            0.00                               0.00
    Long-term accounts receivable                                           0.00                               0.00
    Long-term equity investment                               816,282,334.75                         817,501,125.94
    Investing property                                                      0.00                               0.00
    Fixed assets                                              506,507,936.60                         544,553,576.11
    Construction in progress                                   51,889,367.90                          41,158,543.29
    Engineering materials                                                   0.00                               0.00
    Disposal of fixed assets                                                0.00                               0.00
    Production biological assets                                            0.00                               0.00
    Oil-gas assets                                                          0.00                               0.00
    Intangible assets                                         196,873,663.36                         199,532,111.28
    R&D expense                                                             0.00                               0.00
    Goodwill                                            0.00               0.00
    Long-term deferred expenses                         0.00               0.00
    Deferred income tax assets                20,753,770.52      21,386,906.12
    Other non-current assets                            0.00               0.00
    Total of non-current assets               1,659,179,894.25   1,691,946,954.58
    Total assets                              3,297,450,012.67   3,069,251,518.25Current liabilities:
    Short-term borrowings                               0.00               0.00
    Transactional financial liabilities                 0.00               0.00
    Notes payable                                       0.00               0.00
    Accounts payable                         301,653,772.99     183,223,573.81
    Accounts received in advance              19,153,550.96      19,276,919.50
    Employee’s              compensation
                                            33,104,083.68      53,120,689.68payable
    Tax payable                               21,302,608.34       1,005,639.26
    Interest payable                                    0.00               0.00
    Dividend payable                                    0.00               0.00
    Other accounts payable                     8,897,742.69      31,370,556.92
    Non-current liabilities due within
                                                      0.00               0.001 year
    Other current liabilities                           0.00               0.00
    Total current liabilities                  384,111,758.66     287,997,379.17Non-current liabilities:
    Long-term borrowings                                0.00               0.00
    Bonds payable                                       0.00               0.00
    Long-term payables                                  0.00               0.00
    Specific payables                                   0.00               0.00
    Estimated liabilities                               0.00               0.00
    Deferred income tax liabilities            5,527,101.70       5,668,382.31
    Other non-current liabilities             10,302,941.71      10,387,441.69
    Total non-current liabilities               15,830,043.41      16,055,824.00
    Total liabilities                          399,941,802.07     304,053,203.17Owners’ equity (or shareholders’equity)
    Paid-up capital (or share capital)       978,563,745.00     978,563,745.00
    Capital reserves                                           618,291,832.04             619,092,422.15
    Less: Treasury stock                                                 0.00                       0.00
    Specific reserves                                                    0.00                       0.00
    Surplus reserves                                           583,537,290.22             583,537,290.22
    Retained profits                                                     0.00                       0.00
    Foreign exchange difference                                717,115,343.34             584,004,857.71Total owners’ (or shareholders’)
                                                                       0.00                       0.00equityTotal liabilities and owners’ (or
                                                           2,897,508,210.60           2,765,198,315.08shareholders’) equity
                                                           3,297,450,012.67           3,069,251,518.253. Consolidated income statement
                                                                                         Unit: RMB Yuan
                   Item                     Note   Jan.-Jun. 2012             Jan.-Jun. 2011
    I. Total operating revenues                                1,064,337,124.25           1,095,319,303.24
    Including: Sales income                                    1,064,337,124.25           1,095,319,303.24
         Interest income                                               0.00                       0.00
         Premium income                                                0.00                       0.00
         Handling         charge     and
                                                                       0.00                       0.00commission income
    II. Total operating cost                                     919,922,209.19             944,575,593.83
    Including: Cost of sales                                     792,978,460.81             821,116,200.01
         Interest expenses                                             0.00                       0.00
         Handling         charge     and
                                                                       0.00                       0.00commission expenses
         Surrenders                                                    0.00                       0.00
         Net claims paid                                               0.00                       0.00
         Net amount withdrawn for
                                                                       0.00                       0.00the insurance contract reserve
         Expenditure       on      policy
                                                                       0.00                       0.00dividends
         Reinsurance premium                                           0.00                       0.00
         Taxes and associate charges                          10,426,957.03              11,860,578.51
         Selling    and      distribution
                                                              46,953,881.19              52,110,105.61expenses
          Administrative expenses                                          75,564,365.47                            59,191,173.51
          Financial expenses                                               -7,159,594.18                            -1,053,651.60
          Asset impairment loss                                             1,158,138.87                             1,351,187.79Add: Gain/(loss) from change in fair
                                                                               64,722.78                              -162,575.62value (“-” means loss)
        Gain/(loss) from investment
                                                                           16,484,342.95                             1,051,170.64(“-” means loss)
    Including:      share   of    profits   in
                                                                                     0.00                                      0.00associates and joint venturesForeign exchange gains (“-” means
                                                                                     0.00                                      0.00loss)
    III. Business profit (“-” means loss)                                   160,963,980.79                           151,632,304.43
        Add: non-operating income                                            883,683.34                              1,600,358.50
        Less: non-operating expense                                         2,481,216.29                             5,864,904.95Including: loss from non-current
                                                                              119,256.76                             5,189,155.92asset disposal
    IV. Total profit (“-” means loss)                                       159,366,447.84                           147,367,757.98
        Less: Income tax expense                                           25,616,659.61                            25,145,548.48
    V. Net profit (“-” means loss)                                          133,749,788.23                           122,222,209.50
        Including: Net profit achieved
    by combined parties before the                                                       0.00                                      0.00combinations
        Attributable to owners of the
                                                                          134,522,943.15                           117,867,457.28Company
        Minority shareholders’ income                                       -773,154.92                             4,354,752.22
    VI. Earnings per share                                               --                                       --
        (I) Basic earnings per share                                                 0.14                                      0.12
        (II) Diluted earnings per share                                              0.14                                      0.12
    Ⅶ. Other comprehensive incomes                                              -200,147.53                           -12,535,654.21
    Ⅷ. Total comprehensive incomes                                           133,549,640.70                           109,686,555.29
        Attributable to owners of the
                                                                          134,322,795.62                           105,331,803.07Company
        Attributable     to     minority
                                                                             -773,154.92                             4,354,752.22shareholdersWhere business mergers under the same control occurred in this report period, the net profit achieved by the merged parties beforethe business mergers was RMB 0.00.
    Legal representative: Zhong Xincai                            Person-in-charge of the accounting work: Zhong XincaiChief of the accounting division: Wang Shuqiong4. Income statement of the Company
                                                                                                     Unit: RMB Yuan
                    Item                  Note         Jan.-Jun. 2012                  Jan.-Jun. 2011
    I. Total sales                                                    1,052,015,761.72                1,082,909,469.69
    Less: cost of sales                                                795,594,113.34                  840,361,496.35
    Business taxes and surcharges                                        9,134,465.77                   10,164,480.35
    Distribution expenses                                               45,486,876.29                   49,745,840.51
    Administrative expenses                                             62,956,801.15                   52,403,223.14
    Financial costs                                                      -3,130,496.10                    -584,697.22
    Impairment loss                                                         902,614.65                      801,749.11Add: gain/(loss) from change in fair
                                                                         64,722.78                    -162,575.62value (“-” means loss)Gain/(loss) from investment (“-”
                                                                    16,886,055.17                     9,020,116.66means loss)Including: income form investment
                                                                              0.00                            0.00on associates and joint ventures
    II. Business profit (“-” means loss)                             158,022,164.57                  138,874,918.49
    Add: non-business income                                                777,963.24                    1,479,708.43
    Less: non-business expense                                           2,426,866.10                     5,080,111.93Including: loss from non-current
                                                                              0.00                            0.00asset disposal
    III. Total profit    (“-” means loss)                            156,373,261.71                  135,274,514.99
    Less: income tax expense                                            23,262,776.08                   22,102,197.49
    IV. Net profit      (“-” means loss)                             133,110,485.63                  113,172,317.50
    V. Earnings per share                                        --                              --
    (I) Basic earnings per share                                                  0.00                            0.00
    (II) Diluted earnings per share                                               0.00                            0.00
    VI. Other comprehensive income                                                0.00                            0.00
    VII. Total comprehensive income                                    133,110,485.63                  113,172,317.505. Consolidated cash flow statement
                                                                                                     Unit: RMB Yuan
                      Item                        Jan.-Jun. 2012                     Jan.-Jun. 2011I. Cash flows from operating activities:
    Cash       received        from    sale     of
                                                   1,088,693,196.26   1,167,237,804.52commodities and rendering of service
    Net      increase     of    deposits      from
                                                               0.00               0.00customers and dues from banks
    Net increase of loans from the central
                                                               0.00               0.00bank
    Net increase of funds borrowed from
                                                               0.00               0.00other financial institutions
    Cash received from premium of
                                                               0.00               0.00original insurance contracts
    Net cash received from reinsurance
                                                               0.00               0.00business
    Net increase of deposits of policy
                                                               0.00               0.00holders and investment fund
    Net increase of disposal of tradable
                                                               0.00               0.00financial assets
    Cash received from interest, handling
                                                               0.00               0.00charges and commissions
    Net        increase        of     intra-group
                                                               0.00               0.00borrowings
    Net increase of funds in repurchase
                                                               0.00               0.00business
    Tax refunds received                               31,631,469.58      42,005,225.14
    Other cash received relating to
                                                     10,048,037.45       7,810,787.51operating activitiesSubtotal of cash inflows from operating
                                                   1,130,372,703.29   1,217,053,817.17activities
    Cash paid for goods and services                  563,256,522.79     856,308,150.90
    Net increase of customer lendings
                                                               0.00               0.00and advances
    Net increase of funds deposited in the
    central bank and amount due from                               0.00               0.00banks
    Cash for paying claims of the original
                                                               0.00               0.00insurance contracts
    Cash for paying interest, handling
                                                               0.00               0.00charges and commissions
    Cash for paying policy dividends                            0.00               0.00
    Cash paid to and for employees                    166,066,086.16    142,691,769.52
    Various taxes paid                                103,675,839.11     81,501,927.12
    Other cash payment relating to
                                                      62,888,740.40     62,083,411.78operating activities
    Subtotal        of     cash    outflows       from
                                                     895,887,188.46   1,142,585,259.32operating activities
    Net cash flows from operating activities             234,485,514.83     74,468,557.85II. Cash flows from investing activities:
    Cash received from withdrawal of
                                                               0.00     33,396,800.00investments
    Cash       received        from   return    on
                                                      17,703,134.14       2,411,455.42investments
    Net cash received from disposal of
    fixed assets, intangible assets and other                      0.00        100,000.00long-term assets
    Net cash received from disposal of
                                                               0.00               0.00subsidiaries or other business units
       Other cash received relating to
                                                               0.00               0.00investing activities
          Subtotal of cash inflows from
                                                      17,703,134.14     35,908,255.42investing activities
    Cash paid to acquire fixed assets,
    intangible assets and other long-term                 16,823,879.55     39,458,297.28assets
    Cash paid for investment                                    0.00     12,806,800.00
    Net increase of pledged loans                               0.00               0.00
    Net cash paid to acquire subsidiaries
                                                               0.00               0.00and other business units
    Other cash payments relating to
                                                               0.00               0.00investing activities
    Subtotal        of     cash    outflows       from
                                                      16,823,879.55     52,265,097.28investing activities
    Net cash flows from investing activities                879,254.59      -16,356,841.86
    III.     Cash        Flows    from     FinancingActivities:
       Cash      received       from      capital
                                                               0.00               0.00contributions
    Including:      Cash    received     from
    minority shareholder investments by                                      0.00                            0.00subsidiaries
    Cash received from borrowings                                        0.00                            0.00
    Cash received from issuance of
                                                                         0.00                            0.00bonds
    Other cash received relating to
                                                                         0.00                            0.00financing activitiesSubtotal of cash inflows from financing
                                                                         0.00                            0.00activities
    Repayment of borrowings                                              0.00                            0.00
    Cash paid for interest expenses and
                                                                   26,780.81                221,508,538.40distribution of dividends or profit
    Including: dividends or profit paid
                                                                         0.00                            0.00by subsidiaries to minority shareholders
    Other cash payments relating to
                                                                         0.00                            0.00financing activities
    Sub-total      of   cash    outflows     from
                                                                   26,780.81                221,508,538.40financing activities
    Net cash flows from financing activities                           -26,780.81              -221,508,538.40IV. Effect of foreign exchange rate
                                                                  237,375.56                     -428,597.63changes on cash and cash equivalentsV. Net increase in cash and cash
                                                           235,575,364.17                  -163,825,420.04equivalents
    Add: Opening balance of cash and
                                                           690,691,751.15                   711,625,404.65cash equivalentsVI. Closing balance of cash and cash
                                                            926,267,115.32                  547,799,984.61equivalents6. Cash flow statement of the Company
                                                                                             Unit: RMB Yuan
                    Item                        Jan.-Jun. 2012                  Jan.-Jun. 2011I. Cash flows from operating activities:
    Cash       received      from   sale     of
                                                         1,056,475,585.78                 1,123,579,807.51commodities and rendering of service
    Tax refunds received                                       31,631,469.58                   41,757,239.95
    Other cash received relating to
                                                                 7,305,933.03                    8,668,462.54operating activitiesSubtotal of cash inflows from operating
                                                     1,095,412,988.39   1,174,005,510.00activities
    Cash paid for goods and services                   570,370,649.60     852,185,589.05
    Cash paid to and for employees                     145,150,128.43     123,908,432.96
    Various taxes paid                                  80,361,997.07      64,089,642.55
    Other cash payment relating to
                                                       95,924,424.54      66,260,891.21operating activities
    Subtotal        of     cash    outflows       from
                                                      891,807,199.64    1,106,444,555.77operating activities
    Net cash flows from operating activities              203,605,788.75      67,560,954.23II. Cash flows from investing activities:
    Cash received from retraction of
                                                                 0.00        206,800.00investments
    Cash       received        from   return    on
                                                       17,703,134.14        2,411,455.42investments
    Net cash received from disposal of
    fixed assets, intangible assets and other                        0.00               0.00long-term assets
    Net cash received from disposal of
                                                                 0.00               0.00subsidiaries or other business units
       Other cash received relating to
                                                                 0.00               0.00investing activities
          Subtotal of cash inflows from
                                                       17,703,134.14       2,618,255.42investing activities
    Cash paid to acquire fixed assets,
    intangible assets and other long-term                  12,988,432.60      16,092,517.78assets
    Cash paid for investment                                      0.00    222,806,800.00
    Net cash paid to acquire subsidiaries
                                                                 0.00               0.00and other business units
    Other cash payments relating to
                                                                 0.00               0.00investing activities
    Subtotal        of     cash    outflows       from
                                                       12,988,432.60     238,899,317.78investing activities
    Net cash flows from investing activities                4,714,701.54    -236,281,062.36
    III.     Cash        Flows    from     FinancingActivities:
       Cash      received       from      capital                0.00               0.00contributions
    Cash received from borrowings                                                          0.00                                             0.00
    Other cash received relating to
                                                                                           0.00                                             0.00financing activitiesSubtotal of cash inflows from financing
                                                                                           0.00                                             0.00activities
    Repayment of borrowings                                                                0.00                                             0.00
    Cash paid for interest expenses and
                                                                                           0.00                                             0.00distribution of dividends or profit
    Other cash payments relating to
                                                                                           0.00                              221,508,538.40financing activities
    Sub-total     of   cash   outflows      from
                                                                                           0.00                                             0.00financing activities
    Net cash flows from financing activities                                                   0.00                              221,508,538.40IV. Effect of foreign exchange rate
                                                                                           0.00                             -221,508,538.40changes on cash and cash equivalentsV. Net increase in cash and cash
                                                                                   237,353.63                                        -425,125.11equivalents
    Add: Opening balance of cash and
                                                                              208,557,843.92                                -390,653,771.64cash equivalentsVI. Closing balance of cash and cash
                                                                              412,626,723.50                                 681,198,634.58equivalents
                                                                              621,184,567.42                                 290,544,862.947. Consolidated statement of changes in owners’ equityReporting period
                                                                                                                               Unit: RMB Yuan
                                                                                   Reporting period
                                                       Equity attributable to owners of the Company
                                     Paid-up
                                                                                                                                         Total
                Item                                                                                                     Minority
                                      capital                 Less:                        General
                                                   Capital              Specific Surplus             Retaine                           owners’
                                        (or                  treasury                       risk                Others   interests
                                                   reserve              reserve reserve              d profit                           equity
                                       share                  stock                        reserve
                                      capital)
                                      978,56 622,19                              583,53               606,58
    I. Balance at the end of the                                                                                             47,467,0 2,838,345
                                     3,745.0 3,249.0                            7,290.2              4,375.0
    previous year                                                                                                               33.17        ,692.50
                                               0         9                             2                    2
    Add: change of accountingpolicy
    Correction         of   errors   inprevious periods
    Other
                                         978,56 622,19                    583,53           606,58
    II. Balance at the beginning of                                                                             47,467,0 2,838,345
                                         3,745.0 3,249.0                  7,290.2          4,375.0
    the year                                                                                                      33.17     ,692.50
                                              0        9                       2                2
    III.      Increase/    decrease     of                                                     134,52
                                                  -800,59                                                   -907,058 132,815,2
    amount in the year (“-” means                                                            2,943.1
                                                     0.11                                                        .98      94.06
    decrease)                                                                                       5
                                                                                           134,52
                                                                                                            -907,058 133,615,8
    (I) Net profit                                                                          2,943.1
                                                                                                                 .98      84.17
                                                                                                5
    (II)     Other     comprehensive               -800,59                                                              -800,590.
    incomes                                              0.11                                                                    11
                                                                                           134,52
                                                  -800,59                                                   -907,058 132,815,2
    Subtotal of (I) and (II)                                                                2,943.1
                                                     0.11                                                        .98      94.06
                                                                                                5
    (III) Capital paid in and
                                           0.00      0.00   0.00   0.00     0.00    0.00     0.00    0.00       0.00       0.00reduced by owners
       1. Capital paid in byowners
       2. Amounts of share-based
    payments            recognized      inowners’ equity
       3. Others
    (IV) Profit distribution                0.00      0.00   0.00   0.00     0.00    0.00     0.00    0.00       0.00       0.00
       1.     Appropriations        tosurplus reserves
       2.     Appropriations        togeneral risk provisions
       3.     Appropriations        toowners (or shareholders)
       4. Other
    (V) Internal carry-forward of
                                           0.00      0.00   0.00   0.00     0.00    0.00     0.00    0.00       0.00       0.00owners’ equity
       1. New increase of capital(or share capital) from capitalpublic reserves
       2. New increase of capital(or share capital) from surplusreserves
       3. Surplus reserves formaking up losses
       4. Other
    (Ⅵ) Specific reserve                                                                                                                        0.00
       1.   Withdrawn        for    theperiod
       2. Used in the period(Ⅶ) Other
                                          978,56 621,39                              583,53              741,10
                                                                                                                             46,559,9 2,971,160
    IV. Closing balance                       3,745.0 2,658.9                           7,290.2              7,318.1
                                                                                                                                74.19     ,986.56
                                                   0         8                             2                    7Last year
                                                                                                                                Unit: RMB Yuan
                                                                                          Last year
                                                           Equity attributable to owners of the Company
                                          Paid-up
                                                                                                                                          Total
                  Item                    capital                 Less:                        General                       Minority
                                                       Capital              Specific Surplus             Retaine                         owners’
                                            (or                  treasury                       risk                Others   interests
                                                       reserve              reserve reserve              d profit                        equity
                                           share                  stock                        reserve
                                          capital)
                                          978,56 645,24                              555,43              587,66
    I. Balance at the end of the                                                                                                 45,268,4 2,812,181
                                          3,745.0 6,774.5                           3,925.9              8,581.7
    previous year                                                                                                                   48.10     ,475.39
                                                   0         3                             7                    9
    Add:                  retrospectiveadjustments due to businesscombinations under the samecontrol
    Add: change of accountingpolicy
    Correction       of     errors    inprevious periods
    Other
                                          978,56 645,24                              555,43              587,66
    II. Balance at the beginning of                                                                                              45,268,4 2,812,181
                                          3,745.0 6,774.5                           3,925.9              8,581.7
    the year                                                                                                                        48.10     ,475.39
                                                   0         3                             7                    9
    III.    Increase/    decrease       of                 -23,053                      28,103,              18,915,             2,198,58 26,164,21
    amount in the year (“-” means             ,525.44                 364.25           793.23              5.07       7.11decrease)
                                                                                     291,66
                                                                                                      5,613,84 297,273,9
    (I) Net profit                                                                     0,093.7
                                                                                                         7.65      41.38
                                                                                          3
    (II)     Other     comprehensive          -23,053                                                             -23,053,5
    incomes                                     ,525.44                                                                25.44
                                                                                     291,66
                                            -23,053                                                   5,613,84 274,220,4
    Subtotal of (I) and (II)                                                           0,093.7
                                            ,525.44                                                      7.65      15.94
                                                                                          3
    (III) Capital paid in and
                                     0.00      0.00   0.00   0.00     0.00    0.00      0.00   0.00      0.00       0.00reduced by owners
    1. Capital paid in byowners
    2. Amounts of share-based
    payments           recognized   inowners’ equity
    3. Others
                                                                                     -272,74
                                                                    28,103,                           -3,415,2 -248,056,
    (IV) Profit distribution           0.00      0.00   0.00   0.00             0.00 4,300.5     0.00
                                                                    364.25                              62.58     198.83
                                                                                          0
    1.      Appropriations     to                                  28,103,          -28,103
    surplus reserves                                                    364.25           ,364.25
    2.      Appropriations     togeneral risk provisions
                                                                                     -244,64
    3.      Appropriations     to                                                                    -3,415,2 -248,056,
                                                                                     0,936.2
    owners (or shareholders)                                                                                62.58     198.83
                                                                                          5
    4. Other
    (V) Internal carry-forward of
                                     0.00      0.00   0.00   0.00     0.00    0.00      0.00   0.00      0.00       0.00owners’ equity
    1. New increase of capital(or share capital) from capitalpublic reserves
    2. New increase of capital(or share capital) from surplusreserves
    3. Surplus reserves formaking up losses
    4. Other(Ⅵ) Specific reserve
    1.    Withdrawn     for     theperiod
    2. Used in the period(Ⅶ) Other
                                        978,56 622,19                         583,53            606,58
                                                                                                                    47,467,0 2,838,345
    IV. Closing balance                    3,745.0 3,249.0                        7,290.2          4,375.0
                                                                                                                       33.17    ,692.50
                                             0         9                            2                 28. Statement of changes in owners’ equity of the CompanyReporting period
                                                                                                                          Unit: RMB Yuan
                                                                                Reporting period
                                         Paid-up
                                                                    Less:                             General                   Total
                Item                    capital (or    Capital                 Specific    Surplus                 Retained
                                                                   treasury                               risk                 owners’
                                          share        reserve                 reserve     reserve                   profit
                                                                    stock                             reserve                   equity
                                         capital)
    I. Balance at the end of the 978,563,7 619,092,4                                          583,537,2                584,004,8 2,765,198
    previous year                               45.00          22.15                              90.22                    57.71    ,315.08
    Add: change of accountingpolicy
    Correction       of   errors     inprevious periods
    Other
    II. Balance at the beginning of 978,563,7 619,092,4                                       583,537,2                584,004,8 2,765,198
    the year                                    45.00          22.15                              90.22                    57.71    ,315.08
    III. Increase/ decrease of amount                     -800,590.                                                    133,110,4 132,309,8
    in the year (“-” means decrease)                           11                                                        85.63      95.52
                                                                                                                   133,110,4 133,110,4
    (I) Net profit
                                                                                                                       85.63      85.63
    (II)     Other    comprehensive                     -800,590.                                                                -800,590.
    incomes                                                      11                                                                         11
                                                      -800,590.                                                    133,110,4 132,309,8
    Subtotal of (I) and (II)
                                                             11                                                        85.63      95.52
    (III) Capital paid in and
                                              0.00          0.00       0.00        0.00        0.00         0.00        0.00       0.00reduced by owners
    1. Capital paid in by owners
    2. Amounts of share-basedpayments recognized in owners’equity
    3. Others
    (IV) Profit distribution                     0.00        0.00       0.00       0.00          0.00       0.00        0.00       0.00
    1. Appropriations to surplusreserves
    2. Appropriations to generalrisk provisions
    3. Appropriations to owners(or shareholders)
    4. Other
    (V) Internal carry-forward of
                                               0.00        0.00       0.00       0.00          0.00       0.00        0.00       0.00owners’ equity
    1. New increase of capital(or share capital) from capitalpublic reserves
    2. New increase of capital(or share capital) from surplusreserves
    3.     Surplus     reserves   formaking up losses
    4. Other
    (Ⅵ) Specific reserve                                                                                                            0.00
    1. Withdrawn for the period
    2. Used in the period(Ⅶ) Other
                                         978,563,7 618,291,8                            583,537,2                717,115,3 2,897,508IV. Closing balance
                                             45.00       32.04                                90.22                  43.34    ,210.60Last year
                                                                                                                     Unit: RMB Yuan
                                                                                  Last year
                                          Paid-up
                                                                   Less:                              General                 Total
                 Item                    capital (or   Capital               Specific    Surplus                 Retained
                                                                  treasury                             risk                  owners’
                                           share       reserve               reserve     reserve                   profit
                                                                   stock                              reserve                equity
                                          capital)
    I. Balance at the end of the 978,563,7 642,145,9                                        555,433,9                575,715,5 2,751,859
    previous year                                45.00        47.59                               25.97                  15.70    ,134.26
    Add: change of accountingpolicy
    Correction         of      errors    inprevious periods
    Other
    II. Balance at the beginning of 978,563,7 642,145,9                           555,433,9          575,715,5 2,751,859
    the year                                    45.00      47.59                     25.97              15.70     ,134.26
    III. Increase/ decrease of amount                   -23,053,5                 28,103,36          8,289,342 13,339,18
    in the year (“-” means decrease)                     25.44                       4.25                .01       0.82
                                                                                                 281,033,6 281,033,6
    (I) Net profit
                                                                                                    42.51       42.51
    (II)     Other      comprehensive                 -23,053,5                                                -23,053,5
    incomes                                                25.44                                                    25.44
                                                    -23,053,5                                    281,033,6 257,980,1
    Subtotal of (I) and (II)
                                                       25.44                                        42.51       17.07
    (III)    Capital        paid   in   and
                                             0.00       0.00    0.00   0.00        0.00   0.00        0.00       0.00reduced by owners
    1. Capital paid in by owners
    2. Amounts of share-basedpayments recognized in owners’equity
    3. Others
                                                                              28,103,36          -272,744, -244,640,
    (IV) Profit distribution                   0.00       0.00    0.00   0.00               0.00
                                                                                   4.25            300.50      936.25
    1. Appropriations to surplus                                             28,103,36          -28,103,3
    reserves                                                                           4.25             64.25
    2. Appropriations to generalrisk provisions
    3. Appropriations to owners                                                                 -244,640, -244,640,
    (or shareholders)                                                                                  936.25      936.25
    4. Other
    (V) Internal carry-forward of
                                             0.00       0.00    0.00   0.00        0.00   0.00        0.00       0.00owners’ equity
    1. New increase of capital(or share capital) from capitalpublic reserves
    2. New increase of capital(or share capital) from surplusreserves
    3.    Surplus    reserves   formaking up losses
    4. Other(Ⅵ) Specific reserve
    1. Withdrawn for the period
    2. Used in the period(Ⅶ) Other
                                       978,563,7 619,092,4               583,537,2            584,004,8 2,765,198IV. Closing balance
                                          45.00     22.15                    90.22                57.71    ,315.08(Ⅲ) Company ProfileCompany historyFoshan Electrical & Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited companyjointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed Brick Field, andFoshan Poyang Printing Industrial Co. on Oct. 20, 1992 by raising funds under the approval of YGS (1992) No.63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System of GuangdongProvince and the Economic System Reform Commission of Guangdong Province, is an enterprise with its sharesheld by both the corporate and the natural persons. As approved by China Securities Regulatory Commission withDocument (1993) No. 33, the Company publicly issued 19.3 million shares of social public shares (A shares) tothe public in Oct., 1993, and was listed in Shenzhen Stock Exchange for trade on Nov. 23, 1993. The Companywas approved to issue 50,000,000 B shares on Jul. 23, 1995. And, as approved to change into a foreign-investedstock limited company on Aug. 26, 1996 by (1996) WJMZEHZ No. 466 Document issued by the Ministry ofForeign Trade and Economic Cooperation of the People’s Republic of China. On Dec. 11, 2000, as approved byChina Securities Regulatory Commission with ZJGS Zi [2000] No. 175 Document, the Company additionallyissued 55,000,000 A shares. At approved by the Shareholders’ General Meeting 2006, 2007 and 2008, theCompany implemented the plan of capitalization of capital reserve, after the transfer, the registered capital of theCompany has increased to RMB 978,563,745.00 Yuan. And the registration code for corporate business license isQGYZZ No. 002889.Legal representative: Mr. Zhong XincaiAddress: No. 64, Fenjiang North Road, Foshan, Guangdong ProvinceBusiness scope of the companyThe company is mainly engaged in research, development and production of electric light sourceproducts, electric light source equipment, electric light source mating components, electric lightsource raw materials, lamps & fixtures, electrical materials, motor vehicle components, householdappliances, appliance switches, sockets, fire protection products, ventilating equipment, LEDproducts and lithium-ion batteries & materials, as well as sale of the aforesaid products in domesticand overseas markets and relevant engineering consulting service. The main products of thecompany are various kinds of electric light source products.Basic organizational structure of the companyShareholders’ General Meeting is the highest authority organ of the Company, Board of Directors is an executiveorgan to carry out the provisions formulated by the Shareholders’ General Meeting, Board of supervisors is aninternal supervision organ of the Company, and the General Manager is responsible for routine operation andmanagement. Up till the end of the reporting period, the Company owns ten actually controlled subsidiaries, i.e.Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd., Foshan Chansheng Electronic Ballast Co., Ltd.,Foshan Taimei Times Lamps and Lanterns Co., Foshan Gaoming Fuwan Landscape Resort Co., Ltd., NanjingFozhao Lighting Components Co., Ltd., FSL (Xinxiang) Lighting Co., Ltd., Foshan Lighting Lamps and LanternsCo., Ltd., Qinghai Fozhao Lithium Ion Battery Cathode Materials Co., Ltd. Guangdong Fozhao New LightSources Technology Co., Ltd. and Guangdong Fozhao Leasing Co., Ltd..( Ⅳ ) Main accounting policies, accounting estimates and corrections of prioraccounting errors1. Basis for preparation of financial statementsWith going-concern assumption as the basis, the Company prepares its financial statement in light of the actualtransactions and matters, as well as the accounting standard for business enterprise-basic standard promulgated bythe Ministry of Finance of PRC in 15 Feb. 2006, other specific accounting standards, and the relevant provisionsof application guide and interpretation, as well as the following primary accounting policies and accountingestimates.2. Statement of compliance with Corporate Accounting StandardsThe financial statements prepared by the Company is in compliance with the requirements of Accounting Standardfor Business Enterprises, which gives a true and fair view of the state of affairs of the Company as for thefinancial status and operating results & cash flows.3. Accounting periodA fiscal year starts on 1 January and ends on 31 Dec. according to the Gregorian calendar.4. Recording currencyRenminbi is the recording currency for the Company.Recording currency of overseas subsidiaries:Naught5. Measurement method for the business combination under the same control and business combination notunder the same control(1) Business combination under the same controlIn a business combination under the same control, the assets and liabilities that the combining party obtains in abusiness combination shall be measured on the basis of their carrying amount in the combined party on thecombining date. As for the balance between the carrying amount of the net assets obtained by the combining partyand the carrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If theadditional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.(2) Business combination not under the same controlIn a business combination not under the same control, the combination costs shall be the fair values, on theacquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by theacquirer in exchange for the control on the acquiree. The positive balance between the combination costs and thefair value of the identifiable net assets it obtains from the acquiree shall be recognized as goodwill. The negativebalance between the combination costs and the fair value of the identifiable net assets it obtains from the acquireeshall be recorded into the profits and losses of the current period after the reexamination.6. Preparation methods for consolidated financial statements(1) Preparation methods for consolidated financial statementsThe scope of consolidation of consolidated financial statements shall include the Company and all its subsidiaries.The operating outcomes and financial status of the subsidiaries shall be included in the consolidated financialstatements from start date of the control to end date of the control.The subsidiaries that the Company obtains due to business combination under the same control shall be includedinto the scope of consolidation when preparing the consolidated financial statements of the current period, and thebeginning balance in the consolidated financial statement and prior comparison sheet shall be adjustedaccordingly.As for the subsidiaries that the Company obtains due to business combination not under the same control, theirfinancial statements shall be adjusted based on the fair value of each identifiable asset and liability determined onthe combining date when preparing the consolidated financial statements of the current period. Such combinedsubsidiaries shall be included into the scope of consolidation from the combining date.If the accounting period and accounting policies adopted by a subsidiary are different from those adopted by theCompany, when preparing the consolidated financial statement, necessary adjustments shall be made to thefinancial statements of the subsidiary under the accounting period and accounting policies adopted by theCompany. Within the scope of consolidation, all significant transactions between the enterprises, balance andunrealized profits and losses shall be offset when preparing the consolidated financial statement. As for theunrealized losses occurred in the internal transaction, if there is an evidence shows that such loss is impairmentloss on relevant assets, it shall not be offset. The equity and profits & losses attributable to minority shareholdersof the subsidiary shall be particularly presented in the item of “shareholder’s equity” in the consolidated balancesheets and in the item of “net profit” in the consolidated income statement respectively.(2) Relevant accounting method shall be revealed for the equity of a same subsidiary purchased and sold insuccessive two fiscal yearsNaught7. Recognition standards for cash and cash equivalentsThe term “cash equivalents” refers to short-term ( within 3 months from the purchase date) and highly liquidinvestments that are readily convertible to known amounts of cash and which are subject to an insignificant risk ofchange in value.8. Foreign currency and accounting method for foreign currency(1) Foreign currencyForeign currency shall be recognized by employing systematic and reasonable methods, and shall be translatedinto the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate ofthe transaction date. On the balance sheet date, the foreign currency monetary items shall be translated at the spotexchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balancesheet date and the spot exchange rate at the time of initial recognition or prior tot the balance sheet date shall berecorded into the profits and losses at the current period except that the balance of exchange arising from foreigncurrency borrowings for the purchase and construction or production of qualified assets shall be capitalized. Theforeign currency non-monetary items measured at the historical cost shall still be translated at the spot exchangerate on the transaction date.(2) Accounting method for foreign currencyNaught9. Financial instrumentsFinancial instruments include financial assets, financial liabilities and equity instruments.(1) Category of financial instruments—Financial assets shall be classified into the following four categories when they are initially recognized:Financial assets measured at fair value and of which variations are recorded in the profits and losses for thecurrent period, loans and the account receivables, financial assets available for sale and the investments which willbe held to their maturity. Financial assets, at their initial recognition, shall be measured at fair value. As forfinancial assets measured at fair value and of which variations are recorded in the profits and losses for the currentperiod, the relevant trading expenses shall be directly recorded into the profits and losses of the current period; forother categories of financial assets, the transaction expenses thereof shall be included into the initially recognizedamount.——Financial assets measured at fair value and of which variations are recorded in the profits and losses for thecurrent period refer to financial assets held by the Company for the purpose of selling in the near future, includingtrading financial assets, or financial assets designated by the management in the initial recognition to be measuredat fair value with variations recorded in the gains and losses for the current period. Financial assets measured atfair value and of which variations are recorded in the profits and losses for the current period are subsequentlymeasured at their fair values. Interest or cash dividends arising from such assets during the holing period arerecognized as investment gains. Gains or losses arising from fair value changes are recorded in the gains andlosses for the current period at the end of the reporting period. When such assets are disposed, the differencebetween their fair values and initially recognized amounts is recognized as investment gains and the gains andlosses arising from fair value changes are adjusted accordingly.——Loan and accounts receivable: The non-derivative financial assets for which there is no quoted price in theactive market and of which the recoverable amount is fixed or determinable shall be classified as loan andaccounts receivable. The Company shall make subsequent measurement on its loan and accounts receivable on thebasis of the post-amortization costs by adopting the actual interest rate, from which gains and losses, when loanand accounts receivable are terminated from recognizing, or are impaired or amortized, shall be recorded into theprofits and losses of the current period.——Available-for-sale financial assets: the non-derivative financial assets which are designated asavailable-for-sale financial assets when they are initially recognized as well as the non-derivative financial assetsother than loans and accounts receivables, investments held until their maturity; and transaction financial assets.The Company shall make subsequent measurement on available-for-sale financial assets at fair value, and theprofits and losses arising from the change in the fair value shall be directly recorded into the owner’s equity, untilthe said financial assets shall be transferred out when they are terminated from recognizing or are impaired, whichshall be recorded into the profits and losses of current period. Where the intention of holding or the ability to holdchanges, or the fair value can not be reliably measured any more, or the term of holding has exceeded "twocomplete accounting years", which makes it no longer suitable to measure the available-for-sale financial assets atits fair value, the Company concerned may measure the said financial assets on the basis of post-amortization cost.And such post-amortization cost at the re-classification day shall be the carrying amount of the financial assets.The gains or losses that are related to the said financial assets and that are directly included in the owner’s equityshall be dealt with according to the following provisions: ① Where such financial asset has a fixed date ofmaturity, it shall be amortized within the remaining period of the said financial asset by adopting the actualinterest rate method and be recorded into the profits and losses of the current period. The gap between thepost-amortization cost of the financial asset and the amount on the maturity date shall also be amortized within theremaining period of the said financial asset by adopting the actual interest rate method and be recorded into theprofits and losses of the current period. If, during the subsequent accounting period, the financial asset is impaired,the relevant profits and losses that were included in the owner’s equity shall be transferred out and be recordedinto the current profits and losses. ② Where such financial asset does not have a fixed date of maturity, it shallremain in the owner’s equity. Where such financial asset is transferred out when it is impaired or determined fromrecognizing during the remaining period of accounting that follows, and shall be recorded into the profits andlosses of the current period——Held-to-maturity Investments: non-derivative financial asset with a fixed date of maturity, a fixed ordeterminable recoverable amount and which the Company’s management holds for a definite purpose or theCompany’s management is able to hold until its maturity. The Company shall make subsequent measurement onits Held-to-maturity Investments on the basis of the post-amortization costs by adopting the actual interest rate,from which gains and losses, when loan and accounts receivable are terminated from recognizing, or are impairedor amortized, shall be recorded into the profits and losses of the current period. Where part of the held-to-maturityinvestment is sold or the re-classified amount thereof is considerably large, so that the remainder of the saidinvestment is no longer suitable to be classified as a held-to-maturity investment, the Company shall re-classifythe remainder of the said investment as an available-for-sale financial asset, and shall make subsequentmeasurement on it according to its fair value on the re-classification day, and no longer re-classify the saidfinancial asset as held-to-maturity investment in the current fiscal year and the subsequent two completeaccounting years. The gap between the carrying amount of the said remnant part of the investment at there-classification day and the fair value shall be computed into the owner’s equity. And when the saidavailable-for-sale financial asset is terminated from recognition or transferred out when it is impaired, it shall berecorded into the profits and losses of the current period.(2) Recognition and Measurement of Financial Liabilities—Financial liabilities shall be classified into the following two categories when they are initially recognized: (1)the Trading financial liabilities; and (2) other financial liabilities. The financial liabilities initially recognized bythe Company shall be measured at their fair values. For the Trading financial liabilities, the transaction expensesthereof shall be directly recorded into the profits and losses of the current period; for other categories of financialliabilities, the transaction expenses thereof shall be included into the initially recognized amount.——Trading financial liabilities: such financial liabilities held by the Company for the purpose for repurchasingat the fair value in the near future, and financial liabilities formed a part of combination of financial instrumentswhich are managed by way of short-term profit making in the near future, and derivative financial liabilities (thedesignated derivative instruments which are effective hedging instruments, or derivative instruments to financialguarantee contracts, and the derivative instruments which are connected with the equity instrument investment forwhich there is no quoted price in the active market, whose fair value cannot be reliably measured, and which shallbe settled by delivering the said equity instruments) shall be classified as trading financial liabilities. Subsequentmeasurement of transaction financial liabilities shall be measured at fair value, and the profits and losses arisingfrom the change in the fair value shall be recorded into the profits and losses of the current period.——Other financial liabilities: The Company shall make subsequent measurement on its other financial liabilitieson the basis of the post-amortization costs by adopting the actual interest rate, from which gains and losses, whenother financial liabilities are terminated from recognizing or amortized, shall be recorded into the profits andlosses of the current period.Determination of the Fair Value of Financial Instruments—As for the financial instruments for which there is an active market, the quoted prices in the active market shallbe used to determine the fair values thereof. Where there is no active market for a financial instrument, theCompany concerned shall adopt value appraisal techniques to determine its fair value. The value appraisaltechniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latestmarket transaction upon their own free will, the current fair value obtained by referring to other financialinstruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc.Impairment test of financial assets and withdrawal method of impairment provision—The Company shall carry out an inspection, on the balance sheet day, on the carrying amount of the financialassets other than those trading financial assets. Where there is any objective evidence proving that such financialasset has been impaired, an impairment provision shall be made.——Measurement for impairment of financial assets measured on the basis of the post-amortization costsWhere there is any objective evidence proving that a financial asset measured on the basis of post-amortizationcosts is impaired, the carrying amount of the said financial asset shall be written down to the current value of thepredicted future cash flow (excluding the loss of future credits not yet occurred), and the amount as written downshall be recognized as loss of the impairment of the asset and shall be recorded into the profits and losses of thecurrent period. An impairment test shall be made on the financial assets with significant single amounts. Withregard to the financial assets with insignificant single amounts, an impairment test may be carried out byindependent or combination. Where, upon independent test, the financial asset has not been impaired, it shall beincluded in a combination of financial assets with similar risk features so as to conduct another impairment test.The financial assets which have suffered from an impairment loss in any single amount shall not be included inany combination of financial assets with similar risk features for any impairment test. During the follow-up period,if there is any objective evidence proving that the value of the said financial asset has been restored, and it isobjectively related to the events that occur after such loss is recognized, the impairment-related losses asoriginally recognized shall be reversed and be recorded into the profits and losses of the current period. However,the reversed carrying amount shall not be any more than the post-amortization costs of the said financial asset onthe day of reverse under the assumption that no provision is made for the impairment. Where any financial assetmeasured on the basis of post-amortization costs is recognized as having loss, the relevant impairment provisionwithdrawn shall be written off——Available-for-sale financial assetsWhere there is any objective evidence proving that a available-for-sale financial asset is impaired, even if therecognition of the financial asset has not been terminated, the accumulative losses arising from the decrease of thefair value of the owner’s equity which was directly included shall be transferred out and recorded into the profitsand losses of the current period. The accumulative losses that are transferred out shall be the net amount obtainedfrom the initially obtained costs of the sold financial asset after deducting the principals as taken back, the currentfair value and the impairment-related losses as was recorded into the profits and losses of the current period.(3) Recognition and Accounting Method for Transfer of Financial AssetsWhere transfer of financial assets occurs in the Company, if the Company has transferred nearly all of risks andrewards related to the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset.If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stoprecognizing the financial asset. When the Company makes a judgment about whether the transfer of a financialasset satisfies all the above conditions to stop the recognition, the Company adopts the code of “Rather substantialthan superficial”. The Company differentiate the transfer of financial asset into the entire transfer and the partialtransfer of financial assets. If the transfer of an entire financial asset satisfies the conditions for stoppingrecognition, the difference between the amounts of the following 2 items shall be recorded in the profits andlosses of the current period: (1)The book value of the transferred financial asset; (2)The sum of considerationreceived from the transfer, and the accumulative amount of the changes of the fair value originally recorded in theowner's equities (in the event that the financial asset involved in the transfer is a financial asset available for sale).If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of thetransferred financial asset shall, between the portion whose recognition has been stopped and the portion whoserecognition has not been stopped (under such circumstance, the service asset retained shall be deemed as a portionof financial asset whose recognition has not been stopped), be apportioned according to their respective relativefair value, and the difference between the amounts of the following 2 items shall be included into the profits andlosses of the current period : (1) The book value of the portion whose recognition has been stopped; (2) The sumof consideration of the portion whose recognition has been stopped, and the portion of the accumulative amount ofthe changes in the fair value originally recorded in the owner's equities which is corresponding to the portionwhose recognition has been stopped (in the event that the financial asset involved in the transfer is a financialasset available for sale). If the transfer of a financial asset doesn’t satisfy the conditions to stop the recognition,the Company shall continue to recognize the financial asset and shall recognize the consideration it receives as afinancial liability.(4) Recognition Conditions for Termination of Financial LiabilitiesWhen the prevailing obligations of a financial liability are relieved in all or in part may the recognition of thefinancial liability be terminated in all or partly. If the Company enters into an agreement with creditor so as tosubstitute the existing financial liabilities by way of any new financial liability, and if the contractual stipulationsregarding the new financial liability is substantially different from that regarding the existing financial liability,the Company shall terminate the recognition of the existing financial liability, and shall at the same time recognizethe new financial liability. Where the Company makes substantial revisions to some or all of the contractualstipulations of the existing financial liability, it shall terminated the recognition of the existing financial liability orpart of it, and at the same time recognize the financial liability after revising the contractual stipulations as a newfinancial liability. Where the recognition of a financial liability is totally or partially terminated, the Companyshall include into the profits and losses of the current period the gap between the carrying amount which has beenterminated from recognition and the considerations it has paid (including the non-cash assets it has transferred outand the new financial liabilities it has assumed). If the Company buys back part of its financial liabilities, it shalldistribute, on the repo day, the carrying amount of the whole financial liabilities in light of the comparatively fairvalue of the part that continues to be recognized and the part whose recognition has already been terminated andcarries out distribution of the overall book value of the financial liability. The gap between the carrying amountwhich is distributed to the part whose recognition has terminated and the considerations it has paid (including thenon-cash assets it has transferred out and the new financial liabilities it has assumed) shall be recorded into theprofits and losses of the current period.(5) Recognition of Financial Assets and Financial LiabilitiesAs for the financial assets and financial liabilities that the Company measured by fair value, they all refer to thequoted prices in the active market.(6) Withdrawal of Impairment Provision for Financial Assets (excluding Accounts Receivable)Except for financial assets measured at fair value and of which the alterations charged to the profits and losses inthe current period, the Company conducts check on book value of financial assets at the Balance Sheet Date. Ifthere is any objective evidences proving that a specific financial asset is impaired, an impairment provision shallbe made. (1) Impairment provision for available-for-sale financial assets: as at the end of the reporting period, ifthere is a relatively large reduce on fair value of available-for-sale financial assets, or it is estimated that the trendof reduce is temporarily with a comprehensive consideration of various relevant ingredients, the available-for-salefinancial assets is recognized as impaired, the accumulative losses arising from the decrease of the fair value ofthe owners’ equity which was directly included shall be transferred out and recognized as impairment. As foravailable-for-sale debt instruments whose impairment-related losses have been recognized, if, within theaccounting period thereafter, the fair value has risen and are objectively related to the subsequent events that occurafter the originally impairment-related losses were recognized impairment-related losses shall be reversed and berecorded into the profits and losses of the current period. The impairment-related losses incurred to anavailable-for-sale equity instrument investment shall not be reversed through profit and losses. (2) As forimpairment provision of hold-to-maturity investment: the measurement of impairment on hold-to-maturityinvestment shall be treated according to measurement of impairment on accounts receivable.(7) Notes on Basis of Hold-to-Maturity Investment undue that reclassified into Available-for-SalesFinancial AssetsNaught10. Recognition and Withdrawal Method for Bad-debt Provisions for Accounts ReceivableAccounts receivable of the Company mainly including accounts receivable and other receivables. The Companyconducts a check to the book value of accounts receivable at the Balance Sheet Date, if there is any objectiveevidence proving that the accounts receivable is impaired, it shall be recorded into provision for bad debts.(1) Provisions for Bad-debt Accounts Receivable with a significant single amount
                                                       Accounts receivable with a significant single amount refer to theDefinition or amount criteria for an account
                                                       top five accounts receivable with the largest balances or accountsreceivable with a significant single amount
                                                       accounting for over 10% of the total balance of receivables.
                                                       Where there is objective evidence proving that the Company is not
                                                       able to recover the full amount of an account receivable according
                                                       to the original terms in relation to the account, an independent
    Making     individual   bad-debt   provisions    for
                                                       impairment test is carried out on the account receivable and theaccounts receivable with a significant single
                                                       bad-debt provision is made according to the difference betweenamount
                                                       the present value of the account’s future cash flows and the
                                                       account’s carrying amount. If the independent impairment test
                                                       shows that the account receivable has not been impaired, the
                                                          balance of the account is put into the corresponding group and the
                                                          bad-debt provision is made using the balance percentage method.(2) Accounts receivable for which bad-debt provisions are made on the group basis
            Group name                    Withdraw method                             Basis for recognition of group
                                                                   Accounts     receivable        arising   from   other   common
    Common transaction group            Balance percentage method
                                                                   transactions than internal transactions are classified
                                                                   according to credit risk features.
                                                                   Accounts receivable arising from internal transactions
    Internal transaction group          Other methods
                                                                   within the scope of the consolidation statements are
                                                                   classified according to credit risk features.In the groups, those adopting aging analysis method to withdraw bad debt provision:□Applicable √InapplicableIn the groups, those adopting balance percentage method to withdraw bad debt provision:□ Applicable √ InapplicableIn the groups, those adopting other methods to withdraw bad debt provision:□ Applicable √ Inapplicable(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is madeindependentlyReason of individually withdrawing bad debt provision:When there is conclusive evidence proving that obvious difference exists in the recoverability.Method for making bad-debt provisions for the said accounts receivables:The bad-debt provision is made according to the difference between the present value of the account’s future cash flows and theaccount’s carrying amount.As for other receivables (including notes receivable, prepayments, interest receivable, long-term receivables, etc.), bad-debtprovisions are made according to the differences between the present values of their future cash flows and their carrying amounts.11. Inventory(1) Category of InventoryCategory: raw materials, products in processing, materials for consigned processing, finished products,semi-manufactured semi-finished products, and low-value consumption goods.(2) Pricing method for distributed inventories□First-in first-out method □Weighted average method □Specific identification method √OtherAccounting of inventory: raw materials and finished products shall be measured at actual cost, while weightedaverage method shall be adopted when receiving or outgoing.(3) Recognition basis of net realizable value of inventories and withdrawal method for impairmentprovision of inventoriesRecognition of provision for falling price of inventory and withdrawal: The Company shall make provision forfalling price of inventory on the basis of each item of inventory at the balance that net realizable value is lowerthan carrying cost. For finished goods, merchandise inventories, and available for sale materials which are applieddirectly for sales of stock inventory, the amount after deducting the estimated sale expense and relevant taxesfrom the estimated sell price of the inventory shall be recognized as the net realizable value. For materialinventories which need to be processed, the amount after deducting the estimated cost of completion, estimatedsale expense and relevant taxes from the estimated sale price of produced finished goods shall be recognized asthe net realizable value.(4) Inventory system of inventories√ Perpetual inventory system □ Periodic inventory system □ Other(5) Amortization method of low-value consumption goods and packagesLow-value consumption goodsAmortization method: one time methodPackagesAmortization method: one time method12. Long-term equity investment(1) Recognition for initial costPricing of long-term equity investment— Long-term equity investment for the corporate combination——For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of thebook value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment,and the direct relevant expenses occurred for the merger of enterprises shall be included into the profits and lossesof the current period.——For the merger of enterprises not under the same control, The combination costs shall be the fair values, onthe acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by theCompany in exchange for the control on the acquiree, and all relevant direct costs incurred to the acquirer for thebusiness combination. Where any future event that is likely to affect the combination costs is stipulated in thecombination contract or agreement, if it is likely to occur and its effects on the combination costs can be measuredreliably, the Company shall record the said amount into the combination costs.——The cost of a long-term equity investment obtained by making payment in cash shall be the purchase costwhich is actually paid. The cost consists of the expenses directly relevant to the obtainment of the long-termequity investment, taxes and other necessary expenses.——The cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fairvalue of the equity securities issued.——The cost of a long-term equity investment of an investor shall be the value stipulated in the investmentcontract or agreement except the unfair value stipulated in the contract or agreement.——The cost of a long-term investment obtained by the exchange of non-monetary assets (having commercialnature) shall be recognized base on taking the fair value and relevant payable taxes as the cost of the assetsreceived.——The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at thefair value.(2) Subsequent measurement and recognition of gains and losses—The long-term equity investment of the Company that is able to control the invested enterprise and which of theCompany that does not do joint control or does not have significant influences on the invested entity, and has nooffer in the active market and its fair value cannot be reliably measured, it shall be measured by employing thecost method. Except for the declared but not distributed cash dividends or profits included in the price orconsideration actually paid when an investment is obtained, the dividends or profits declared to distribute by theinvested entity shall be recognized as the current investment income.(3) Recognition basis of jointly control and significant influence in invested units—A long-term equity investment of the Company that does joint control or significant influences over theinvested entity shall be measured by employing the equity method. If the cost of a long-term equity investment ismore than the Company’s attributable share of the fair value of the invested entity's identifiable net assets for theinvestment, the cost of the long-term equity investment may not be adjusted. If the cost of a long-term equityinvestment is less than the Company’s attributable share of the fair value of the invested entity’s identifiable netassets for the investment, the difference shall be included in the current profits and losses and the cost of thelong-term equity investment shall be adjusted simultaneously. The Company shall recognize the net losses of theinvested enterprise until the book value of the long-term equity investment and other long-term rights andinterests which substantially form the net investment made to the invested entity are reduced to zero, unless theinvesting enterprise has the obligation to undertake extra losses. The Company shall, on the ground of the fairvalue of all identifiable assets of the invested entity when it obtains the investment, recognize the attributableshare of the net profits and losses of the invested entity after it adjusts the net profits of the invested entity.(4) Impairment test method and withdrawal method for impairment provision—The Company shall conduct inspection to long-term investment item by item at the end of reporting period. Ifthe market price of long-term investment falls into sustained decline or the invested enterprise’s operation statusgrow worse, which will cause that the recoverable amount is lower than carrying value, moreover, such reducedvalue will not be restored in predicted future period, then the negative balance between the recoverable amountand carrying value of long-term investment shall be measured as provision for impairment of long-terminvestment. The recoverable amount shall be determined in light of the higher one of the net amount of the fairvalue of the long-term equity investment minus the disposal expenses and the current value of the expected futurecash flow of the long-term equity investment. Once any loss of impairment of the long-term investment isrecognized, it shall not be switched back in the future accounting periods.13. Investment real estateThe Company doesn’t have investment real estate.14. Fixed assets(1) Recognition of fixed assetsRecognition of fixed assets: Fixed assets of the Company refers to the tangible assets that simultaneously possessthe features as follows: they are held for the sake of producing commodities, rendering labor service, renting orbusiness management; and their useful life is in excess of one fiscal year and unit price is higher.Category of fixed assets: housing and building, machinery equipment, transportation vehicle and other.(2) Recognition basis and pricing method for fixed assets acquired under finance leaseThe "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards related to theownership of an asset. The Company shall recognizes the lower one of the fair value of the leased asset and thepresent value of the minimum lease payments on the lease beginning date as cost of fixed assets of finance lease.In calculation of the depreciation of a leased fixed asset, the Company adopts a depreciation policy for leasedassets consistent with that for depreciable assets. If it is reasonable to be certain that the Company will obtain theownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated over itsuseful life. If it is not reasonable to be certain that the Company will obtain the ownership of the leased asset atthe expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or itsuseful life.(3) Depreciation method of various fixed assetsMeasurement of fixed assets and depreciation method: fixed assets shall be measured at actual cost. Depreciationrate shall be recognized by employing the straight-line method and in accordance with appraisal economicaluseful life and predicated net residuals
           The categories        Estimated useful life (years)        Residual value (%)      Annual depreciation rate (%)
    Houses and buildings             3—25                           5%                        31.67%-4.75%
    Machineries                      2—8                            5%                        47.50%-11.88%
    Electronic equipment             2—8                            5%                        47.50%-11.88%
    Vehicles                         5—10                           5%                        19%-9.50%
    Other equipments                 2—8                            5%                        47.50%-11.88%Fixed assets acquired under
                                              --                              --                           --finance leaseOf which: houses and buildingsMachineriesElectronic equipmentVehiclesOther equipments(4) Impairment test method and withdrawal method for impairment provision of fixed assetsProvision for impairment of fixed assets: The Company shall carry out inspection to fixed assets item by itemevery year. If the recoverable amount is lower than carrying value due to sustained decline of market price offixed assets or technological obsolescence, damage or long-term idle, then the provision for impairment of fixedassets shall be withdrawn on the basis of the balance hereof. Once any loss of impairment of the fixed assets isrecognized, it shall not be switched back in the future accounting periods. The recoverable amount shall bedetermined in light of the higher one of the net amount of the fair value of the fixed assets minus the disposalexpenses and the current value of the expected future cash flow of the fixed assets. The current value of futurecash flow of assets shall be recognized based on the amount after the predicated future cash flow occurred in theprocess of continuous services and when the final disposal is discounted by adopting proper discount rate.(5) Other explanationNaught15. Construction in Progress(1) Categories of construction in processCategories of construction in process refer to the newly establishment, amendment or expansion of fixed assetsof the Company, or project expenses on unaccomplished project such as technology innovation, equipmentupdating and major repair projects, etc.,(2) Standards and time of transferring construction in process into fixed assetConstruction in progress shall be measured at actual cost. Constructions in progress shall be carried down to fixedassets by adopting provisional estimate when bringing to the expected conditions for use. After completion andsettlement procedures, the Company shall adjust the carrying value of fixed assets at the actual cost. As forinterests on borrowings incurred to special-borrowing loans or general borrowing for the acquisition andconstruction or production of assets eligible for capitalization and the ancillary expense incurred tospecial-borrowing loans, those incurred before a qualified asset under acquisition, construction or production isready for the intended use or sale shall be capitalized into capitalized cost, while those incurred after a qualifiedasset under acquisition and construction or production is ready for the intended use or sale shall be included intothe profits and losses of the current period.(3) Impairment test method and withdrawal method for impairment provision of construction in processProvision for impairment of construction in progress: the Company shall carry out overall inspection to theconstruction in progress at the end of the reporting period. If the construction in progress has been stopped for along time and cannot be continued restarting in the coming three years, and such construction in progress hasalready fallen behind, whatever in performance or in technology, resulting in an uncertainty to economic benefitof the Company, and there is an obvious evidence shows that the construction in progress has been impaired, thenprovision for impairment of the construction in progress shall be withdrawn based on the negative balancebetween the recoverable amount of single construction in progress and carrying value. Once any loss ofimpairment of the construction in progress is recognized, it shall not be switched back in the future accountingperiods.16. Borrowing costs(1) Recognition principles for capitalization of borrowing costsThe borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: (1)The asset disbursements have already incurred, which shall include the cash, transferred non-cash assets orinterest bearing debts paid for the acquisition and construction or production activities for preparing assetseligible for capitalization; (2) The borrowing costs has already incurred; and (3) The acquisition and constructionor production activities which are necessary to prepare the asset for its intended use or sale have already started.(2) Capitalization period of borrowing costsThe borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: (1)The asset disbursements have already incurred; (2) The borrowing costs has already incurred and (3) Theacquisition and construction or production activities which are necessary to prepare the asset for its intended useor sale have already started. And then it shall be recorded into assets costs that satisfied conditions ofcapitalization. When the qualified asset under acquisition and construction or production is ready for theintended use or sale, the capitalization of the borrowing costs shall be ceased; borrowing costs incurred thereaftershall be recognized as expenses at the incurred amount when they are incurred.(3) Period for suspending capitalization of borrowing costsSuspension of capitalization: Where the acquisition and construction or production of a qualified asset isinterrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended. The borrowing costs incurred during such period shall be recognized asexpenses, and shall be recorded into the profits and losses of the current period, till the acquisition andconstruction or production of the asset restarts. If the interruption is a necessary step for making the qualified assetunder acquisition and construction or production ready for the intended use or sale, the capitalization of theborrowing costs shall continue.(4) Calculation method of capitalized amount of borrowing costsTo-be-capitalized amount of interests of borrowing: As for interests of borrowing occurred special-borrowingloans or general borrowing for the acquisition and construction or production of assets eligible for capitalization,those incurred before a qualified asset under acquisition, construction or production is ready for the intended useor sale shall be capitalized based on the following methods:—As for special-borrowing loans for the acquisition and construction or production of assets eligible forcapitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost incurred ofthe specially borrowed loan at the present period minus the income of interests earned on the unused borrowingloans as a deposit in the bank or as a temporary investment.—Where a general borrowing is used for the acquisition and construction or production of assets eligible forcapitalization, the Company shall calculate and determine the to-be-capitalized amount of interests on the generalborrowing by multiplying the weighted average asset disbursement of the part of the accumulative assetdisbursements minus the general borrowing by the capitalization rate of the general borrowing used. Thecapitalization rate shall be calculated and determined in light of the weighted average interest rate of the generalborrowing.17. Biological assetsNaught18. Oil gas assetsNaught19. Intangible assets(1) Pricing method of intangible assets—The cost of outsourcing intangible assets shall be measured at actual expenditures occurred for reaching theexpected use purpose.—The research expenditures for its internal research and development projects of the Company shall be recordedinto the profit or loss for the current period. The development expenditures for its internal research anddevelopment projects of the Company may be confirmed as cost of intangible assets when they satisfycapitalization conditions.—The cost invested into intangible assets by investors shall be determined according to the conventional value inthe investment contract or agreement, except for those of unfair value in the contract or agreement.—The intangible assets received by the Company through accepting debtor’s non-cash assets for compensationfor debts, or by receivables, shall be measured at the fair value of the intangible assets received.—The cost invested into intangible assets by non-monetary transaction shall be determined according to the fairvalue of non-monetary assets and relevant payable taxes.(2) Estimated useful life of intangible assets with limited useful lifeFor intangible assets of limited useful life, the Company adopts straight-line method for amortization in useful lifeterm. The Company shall, at the end of each year, recheck the estimated useful life and amortization method andmakes suitable adjustment.
            Item                Estimated useful life                                 Basis
    Land use right              50 years                    Statutory use right
    Patent                      10 years                    Estimated term of making profit(3) Judgment basis of intangible assets with uncertain useful lifeThe Company doesn’t have intangible assts with uncertain useful life.(4) Withdrawal of impairment provision of intangible assetsProvision for impairment of intangible assets: the Company shall made overall inspection to the intangible assetat the end of reporting period. If the intangible assets have already been replaced by other new technologies,resulting in the Company’s ability to create economic benefits suffering materials adverse influence, or asustained decline of market price of intangible assets and impossible to be recover within the residualamortization years, or certain intangible asset has exceeded the term protected by law but still part of usefulvalue is remained, or there is an obvious evidence shows that the intangible assets has been impaired, thenprovision for impairment of the intangible assets shall be withdrawn based on the balance between therecoverable amount of single intangible assets and carrying value. Once any loss of impairment of the intangibleassets is recognized, it shall not be switched back in the future accounting periods.(5) Criteria of dividing the research phase and development phase of internal R&D projectThe expenditures for its internal research phase and development phase of the Company discriminate into researchexpenditures and development expenditures. The term “research” refers to the creative and planned investigationto acquire and understand new scientific or technological knowledge; the term “development” refers to theapplication of research achievements and other knowledge to a certain plan or design, prior to the commercialproduction or use, so as to produce any new material, device or product, or substantially improved material,device and product.(6) Calculation of the expenditures of internal R&D projectThe expenditures for its internal research phase and development phase of the Company discriminate into researchexpenditures and development expenditures:1) The research expenditures for its internal research and development phases of the Company shall be recordedinto the profit or loss for the current period.2) Where the expenses incurred in the development stage of an internal R&D project and at thesame time the following conditions are met, these expenses are recognized as intangible assets.① It is feasible technically to finish intangible assets for use or sale;② It is intended to finish and use or sell the intangible assets;③ The usefulness of methods for intangible assets to generate economic benefits shall be proved, including beingable to prove that there is a potential market for the products manufactured by applying the intangible assets orthere is a potential market for the intangible assets itself or the intangible assets will be used internally;④ It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with thesupport of sufficient technologies, financial resources and other resources; and⑤ The expenditures on development phase of the intangible assets can be reliably measured.20. Amortization method of long-term deferred expensesLong-term deferred expenses refer to general expenses with the apportioned period over one year (one yearexcluded) that have occurred but attributable to the current and future periods. Long-term deferred expense shallbe recoded into book in the light of the actual expenditure, and amortized averagely within benefit period. Incase of no benefit in the future accounting period, the amortized value of such project that fails to be amortizedshall be transferred into the profits and losses of the current period.21. Assets transfer with repurchasing conditionsNaught22. Estimated liabilities(1) Criteria of estimated liabilitiesRecognition of estimated debts: The obligation such as external guaranty, pending litigation or arbitration, productquality assurance, layoff plan, loss contract, restructuring and disposal of fixed assets, pertinent to a contingenciesshall be recognized as an estimated debts when the following conditions are satisfied simultaneously: ① Thatobligation is a current obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of theenterprise as a result of performance of the obligation; and ③ The amount of the obligation can be measured in areliable way.(2) Measurement of estimated liabilitiesMeasurement of estimated debts: The estimated debts shall be initially measured in accordance with the bestestimate of the necessary expenses for the performance of the current obligation. To determine the best estimate,the Company shall take into full consideration of the risks, uncertainty, time value of money, and other factorspertinent to the Contingencies. If the time value of money is of great significance, the best estimate shall bedetermined after discounting the relevant future outflow of cash. If there is a sequent range for the necessaryexpenses and if all the outcomes within this range are equally likely to occur, the best estimate shall bedetermined in accordance with the middle estimate within the range. In other cases, the best estimate shall beconducted in accordance with the following situations, respectively: ① If the Contingencies concern a singleitem, it shall be determined in the light of the most likely outcome. ② If the Contingencies concern two or moreitems, the best estimate should be calculated and determined in accordance with all possible outcomes and therelevant probabilities. ③ When all or some of the expenses necessary for the liquidation of an estimated debts ofan enterprise is expected to be compensated by a third party, the compensation should be separately recognizedas an asset only when it is virtually certain that the reimbursement will be obtained. The Company shall checkthe book value of the estimated debts on the balance sheet date. The Company shall, subject to change, makeadjustment to carrying value to reflect the current best estimate.23. Share-based payment and equity instrumentsThe Company doesn’t have share-base payment and equity instruments.(1) Categories of share-based paymentNaught(2) Recognition method of fair value of equity instrumentsNaught(3) Recognition basis of the best estimate of the vested equity instrumentsNaught(4) Accounting treatment relevant to implement, revise and terminate share-based payment planNaught24. Repurchase of shares of the CompanyNaught25. Revenue(1) Criteria for recognition time of revenue from sale of goodsNo revenue shall be realized unless the following conditions are met simultaneously: a. The significant risks andrewards of ownership of the goods or products have been transferred to the buyer by the enterprise; b. TheCompany retains neither management right nor effective control over the sold goods or products; c. The relevantrevenue has been received or valid evidence has been obtained, d. relevant cost related to sales of goods andproducts can be measured in a reliable way.Revenue from providing services shall be recognized by adopting the percentage-of-completion method whenfollowing conditions shall be met simultaneously: The amount of revenue can be measured in a reliable way; Therelevant economic benefits are likely to flow into the enterprise; The schedule of completion under the transactioncan be confirmed in a reliable way; and the costs incurred or to be incurred in the transaction can be measured in areliable way. If the Company can not measure the result of a transaction concerning the providing of laborservices in a reliable way, and the cost of labor services incurred is expected to be compensated, the revenue fromthe providing of labor services shall be recognized in accordance with the amount of the cost of labor servicesincurred. If the cost of labor services incurred is not expected to compensate in full, the revenue shall berecognized in accordance with the amount of the cost of labor service can be compensated; if all cost of laborservices incurred is not expected to compensate and no revenue from the providing of labor services may berecognized.The revenue from abalienating of right to use the Company’s assets may be recognized when the followingconditions are met simultaneously: a. the relevant economic benefits are likely to flow to the Company; and b. theamount of revenues can be measured in a reliable way. The user charge receivable should be measured andconfirmed as operating revenue in accordance with the period and method of charging as stipulated in the relevantcontract or agreement.(2) Recognition basis of revenue from transferring use rights of assetsNo revenue from abalienating of right to use assets may be recognized unless the following conditions are metsimultaneously: ① The relevant economic benefits are likely to flow into the Company; and ② The amount ofrevenues can be measured in a reliable way.(3) Recognition basis and method for the schedule of contracted project when recognizing the revenue fromproviding labour services and construction contract by percentage-of-completion methodThe Company doesn’t have revenue from providing labour services and contruction contratct by percentage-of-completion method.26. Government grants(1) TypesNo government subsidy may be recognized unless the following conditions are met simultaneously: (1) TheCompany can meet the conditions for the government subsidies; and (2) The Company can obtain the governmentsubsidies.(2) Accounting treatment methodIf a government subsidy is a monetary asset, it shall be measured in the light of the received or receivableamount. If a government subsidy is a non-monetary asset, it shall be measured at its fair value. If its fair valuecannot be obtained in a reliable way, it shall be measured at its nominal amount.The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed withinthe useful lives of the relevant assets, and included in the current profits and losses. But the governmentsubsidies measured at their nominal amounts shall be directly included in the current profits and losses. Thegovernment subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances asfollows: (1) Those subsidies used for compensating the related future expenses or losses of the enterprise shall berecognized as deferred income and shall included in the current profits and losses during the period when therelevant expenses are recognized; or (2) Those subsidies used for compensating the related expenses or lossesincurred to the enterprise shall be directly included in the current profits and losses.27. Deferred income tax assets and liabilities(1) Recognition basis of deferred income tax assetsThe Company shall record a dectible temporary difference into deferred income tax to the extent of the amount ofthe taxable income which it is most likely to obtain in future period and which can be deducted from thedeductible temporary difference.(2) Recognition basis of deferred income tax liabilitiesAs for taxable temporary differences, the Company shall record into deferred income liabilities except for specialconditions.28. Operating lease and finance lease(1) Accounting treatments of operating leaseThe rents from operating leases shall be recorded by the Company in the relevant asset costs or the profits andlosses of the current period by using the straight-line method over each period of the lease term.(2) Accounting treatments of finance leaseOn the lease beginning date, the Company shall record the lower one of the fair value of the leased asset and thepresent value of the minimum lease payments on the lease beginning date as the entering value in an account,recognize the amount of the minimum lease payments as the entering value in an account of long-term accountpayable, and treat the balance between the recorded amount of the leased asset and the long-term account payableas unrecognized financing charges.29. Assets held for sale(1) Recognition criteria of available-for-sale assetsThe Company doesn’t have any available-for-sale assets.(2) Accounting treatments of the assets held for saleThe Company doesn’t have any available-for-sale assets.30. Capitalization of assets businessThe Company doesn’t have any capitalization fo assets business.31. Hedging accountingThe Company doesn’t have any hedging business.32. Changes in main accounting policies and estimatesWere the main accounting policies or estimates changed during the reporting period?
    □Yes   √ No   □ Inapplicable(1) Change of accounting policiesWere the main accounting policies changed during the reporting period?□Yes √ No □ Inapplicable(2) Change of accounting estimatesWere the main accounting estimates changed during the reporting period?□Yes √ No □ Inapplicable33. Correction of previous accounting errorsWas any accounting error made in previous periods discovered in the reporting period?□Yes √ No □ Inapplicable(1) Retrospective restatement methodWas any previous accounting errors adopting retrospective restatement method discovered in the reporting period?□Yes √ No □ Inapplicable(2) Prospective application methodWas any previous accounting errors adopting prospective application method discovered in the reporting period?□Yes √ No □ Inapplicable34. Other main accounting policies, accounting estimates as well as compilation method of financialstatementsNaught(Ⅴ) Taxation1. Main taxes and tax rate
                Category of taxes                               Tax basis                                Tax rate
                                                VAT on sales is calculated based on 17%
                                                of sales revenue. VAT is calculated and
                                                paid based on the difference of VAT on
                                                sales deducting deductible input VAT.
    VAT                                             Tax   on   exports    managed        by   the 17%
                                                Company, as approved by the taxation
                                                departments, is paid by adopting the
                                                policy of “tax exemption, tax deduction
                                                and tax rebate” since 1 Jan. 2002Consumption tax
    Business tax                                    Taxable service income                       5%
    Urban maintenance and construction tax         Taxable VAT and business tax               5%、7%
                                               The Company was identified as a
                                               high-tech enterprise in Dec. 2008, and
                                               passed the re-examination for the First
                                               Batch High-tech Enterprise in 2011 on
                                               23 Aug. 2011, as well as won the
                                               “Certificate of High-tech Enterprise”
                                               with serial number GR201144000059
                                               after approval by Department of Science
                                               and Technology of Guangdong Province,
                                               Department of Finance of Guangdong
                                               Province, Guangdong Provincial Bureau
    Enterprise income tax                                                                     15%
                                               of   State   Taxation    and   Guangdong
                                               Provincial Bureau of Local Taxation. In
                                               accordance with relevant provisions in
                                               Corporate Income Tax Law of the
                                               People's Republic of China and the
                                               Administration          Measures     for
                                               Identification of High-tech Enterprises
                                               promulgated in 2007, the Company paid
                                               the corporate income tax based on a tax
                                               rate of 15% within three years since 1
                                               Jan. 2011.
    Education expenses surcharge                   Current turnover tax in current            3%
    Local education surcharge                      Current turnover tax in current            2%The income tax rates adopted by each subsidiary and branch factoryThe subsidiaries of the Company, including Foshan Taimei Times Lamps and Lanterns Co., Ltd., and FoshanChanchang Electric Appliance (Gaoming) Co., Ltd., are all productive foreign funded enterprises, so that the saidthree companies enjoy a preferential CIT policy of “Two plus three” (Exemption of enterprise income tax for thefirst two years of making profit, and 50% tax reduction for following three years). Of which, year 2007 and 2008are the first profit-making year for enjoying the preferential CIT policy of “Two plus three”, therefore the saidcompanies should be allowed a 50% reduction of the enterprise income tax in 2011, as at the rate of 12.5%.The subsidiaries of the Company, including Foshan Chansheng Electronic Ballast Co., Ltd., Foshan GaomingFuwan Landscape Resort Co., Ltd., Nanjing Fozhao Lighting Components Manufacturing Co., Ltd., FoshanElectrical & Lighting (Xinxiang) Co., Ltd., Foshan Lighting Lamps and Lanterns Co., Ltd., Qinghai FozhaoLithium Ion Battery Cathode Materials Co., Ltd., Guangdong Fozhao Leasing Co., Ltd. and Guangdong FozhaoNew Light Sources Technology Co., Ltd., whose enterprise income tax rate is 25%.2. Tax preference and official documentsThe Company has been certified as a high-tech enterprise in December 2008, and passed the re-examination forthe First Batch High-tech Enterprise in 2011 on 16 January 2011, as well as won the “Certificate of High-techEnterprise” with serial number GR201144000059 after approval by Department of Science and Technology ofGuangdong Province, Department of Finance of Guangdong Province, Guangdong Provincial Bureau of StateTaxation and Guangdong Provincial Bureau of Local Taxation. In accordance with relevant provisions inCorporate Income Tax Law of the People's Republic of China and the Administration Measures for Identificationof High-tech Enterprises promulgated in 2007, the Company paid the corporate income tax based on a tax rate of15% within three years since 1 Jan. 2011.3. Other explanationNaught(Ⅵ) Business combination and consolidated financial statementsGeneral instruction of business combination and consolidated financial statements:1. Subsidiaries(1) Subsidiaries obtained by establishment and investment—— Foshan Changsheng Electronic Ballast Co., Ltd., who is the Sino-foreign joint venture invested and established by the Company and Ma Henglai in August 2003. TheCompany holds 75% equities of the said company, therefore the said subsidiary was included into the scope of the consolidated financial statements since date of foundation.—Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd., who is the Sino-foreign joint venture invested and established by the Company and Prosperity Lamps andComponents Ltd, had obtained license for business corporation on 23 Aug. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District,Foshan with document “MWJMY Zi [2005] No. 79”. The Company holds 70% equities of the said company, therefore the said subsidiary was included into the scope of theconsolidated financial statements since date of the foundation.— Foshan Taimei Times Lamps and Lanterns Co., Ltd., who is the Sino-foreign joint ventures invested and established by the Company and Reback North AmericaInvestment Limited, had obtained license for Business Corporation on 5 Dec. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of GaomingDistrict, Foshan with document “MWJMY Zi [2005] No. 97”. The Company holds 70% equities of the said company, therefore the said subsidiary was included into thescope of the consolidated financial statements since date of foundation.— Foshan Gaoming Fuwan Landscape Resort Co., Ltd. is limited liability company, which is invested and established by the Company, obtaining its license for BusinessCorporation on 23 Nov. 2006. And the company holds 100% equities of this company. Therefore the said subsidiary was included into the scope of the consolidated financialstatements since date of foundation.— Foshan Lighting Lamps and Lanterns Co., Ltd. is limited liability company, which is invested and established by the Company together with Foshan Haozhiyuan TradingCo., Ltd., Shanghai Liangqi Electric Co., Ltd, Changzhou Sanfeng Electrical & Lighting Co., Ltd., Henan Xingchen Electrical & Lighting Co., Ltd., Foshan HongbaoElectrical & Lighting Co., Ltd., Hebei Jinfen Trading Co., Ltd., obtaining its license for Business Corporation on 27 Mar. 2009. The Company holds 60% equities of thiscompany. Therefore the said subsidiary was included into the scope of the consolidated financial statements since date of the foundation. The said company had put intoproduction in May 2009. On 25 Sep. 2009, the equity transfer agreement was signed between the Company and Foshan Haozhiyuan Trading Co., Ltd., in which FoshanHaozhiyuan Trading Co., Ltd. transferred 10% equities of Foshan Lighting Lamps and Lanterns Co., Ltd. to the Company. After transfer, the Company holds 70% equities ofFoshan Lighting Lamps and Lanterns Co., Ltd.. On 19 Dec. 2010, the Company signed Equity Transfer Contract with Shanghai Liangqi Electric Co., Ltd, ChangzhouSanfeng Electrical & Lighting Co., Ltd., Henan Xingchen Electrical & Lighting Co., Ltd., Foshan Hongbao Electrical & Lighting Co., Ltd., and Taizhou Luqiao HengyuLighting Equipment Trading Company. Since then, the above said minority shareholder respectively transferred 6% of their holding equities of Foshan Lighting Lamps andLanterns Co., Ltd. to the Company, the Company held 100% equities of Foshan Lighting Lamps and Lanterns Co., Ltd. after the transfer.— Foshan Electrical & Lighting (Xinxiang) Co., Ltd. is limited liability company with the registered capital of RMB 10 million, which is invested and established by theCompany, obtaining its license for Business Corporation on 17 Apr. 2009. The holds 100% equities of the said company, therefore the said subsidiary was included into thescope of the consolidated financial statements since date of foundation.— Qinghai Fozhao Lithium Ion Battery Cathode Materials Co., Ltd. is limited liability company, which is invested and established by the Company together with HefeiLixin Energy Material Co., Ltd., Qinghai Power New Energy Material Co., Ltd., Lithium Energy Holdings, Ltd. and Jianagsu Guogang Communication Engineering Co.,Ltd.. On 25 Oct. 2010, Qinghai Fozhao Lithium Energy Exploitation Co., Ltd. received Business License for Enterprise as a Legal Person, of which the Company holds 51%equities of the company, and it was included into the scope of the consolidated financial statements since date of foundation.— Guangdong Fozhao Leasing Co., Ltd. is limited liability company, which is invested and established by the Company, obtaining its license for Business Corporation on31 May 2011. And the Company holds 100% equities of this company. Therefore the said subsidiary was included into the scope of the consolidated financial statementssince date of foundation.— Guangdong Fozhao New Light Sources Technology Co., Ltd. , who is the Sino-foreign joint ventures invested and established by the Company and Bright Technology &Venture Limited (registered in Hong Kong), had obtained license for Business Corporation on 7 Jun. 2011 through approval by Foshan Foreign Trade and EconomicCooperation Bureau, with document “FWJMY Zi [2011] No. 39”. And the registered capital was RMB 222 million, and the Company has invested RMB 10 million into thesaid company up to 31 Dec. 2011. Then the Company holds 54.95% equities of the said company, therefore the said subsidiary was included into the scope of theconsolidated financial statements since date of foundation. According to the announcement on liquidating and writing off the controlled subsidiary Guangdong Fozhao NewLight Source Technology Co., Ltd. disclosed by the 6th Board of Directors on 29 Jun. 2012, the subsidiary has now entered the liquidation procedure. Up to 30 Jun. 2012,the writing-off work regarding this subsidiary has not been finished yet.
                                                                                                                                                                             Unit: RMB Yuan
                                                                                                             The                                                        Balance of parent
                                                                                                                        The
                                                                              Actual                        propor                Included                            company’s equity after
                                                                                                                      proportio
                                                                            amount of                       tion of                  in                  Deductible       deducting the
                            Registered   Business   Registered   Business                 Other essential               n of                  Minority
    Subsidiaries      Type                                                     investments                     holdin                consolida               minority    difference that loss of
                               place      nature     capital      scope                     investment                 voting                 interest
                                                                              at the                          g                      ted                  interests     minority interests
                                                                                                                       rights
                                                                            period-end                      shares                statement                           exceed equity obtained
                                                                                                                       (%)
                                                                                                            (%)                                                          by minority
                                                                                                                              shareholders
                                                                Production
    Foshan                                                          of ballast,
    Chansheng                                                       electronic
                 Limited              Manufactur
    Electronic                   Foshan                 1,000,000 transformers         750,000    75%   75% Yes    1,246,001.50
                 company              e
    Ballast Co.,                                                    and
    Ltd.                                                            electronic
                                                                igniters
                                                                Production
                                                                and
                                                                operation of
                                                                lamps,
    Foshan                                                          electric light
    Chanchang                                                       source
    Electric         Limited              Manufactur                products and
                             Foshan                72,780,000                    50,940,000   70%   70% Yes   25,210,679.64
    Appliance        company              e                         accessories,
    (Gaoming) Co.,                                                  installation
    Ltd.                                                            of related
                                                                engineering
                                                                and
                                                                consulting
                                                                business
                                                                Research,
    Foshan Taimei                                                   development,
                 Limited
    Times Lamps                           Manufactur                production
                 liability   Foshan                  500,000                       350,000    70%   70%        7,077,265.63
    and Lanterns                          e                         and sales of
                 company
    Co., Ltd.                                                       lighting,
                                                                household
                                                                 appliances
                                                                 and
                                                                 accessories
                                                                 and other
                                                                 lighting
                                                                 products
                                                                 Making
                                                                 arrangement
                                                                 (tourist
                                                                 industry,Foshan
                                                                 catering
    Gaoming            Limited
                                        Hotel                    service,
    Fuwan              liability   Foshan                4,800,000                      4,800,000   100%   100%
                                        industry                 sauna,
    Landscape          company
                                                                 foot-bathing,Resort Co., Ltd.
                                                                 games, retail
                                                                 of beverages,
                                                                 sports on the
                                                                 water, chess)
                                                                 R&D          and
                                                                 production of
                                                                 electric light
    Foshan                                                           source lamp
                   Limited
    Lighting Lamps                          Manufactur               products and
                   liability   Foshan                5,000,000                      5,070,000   100%   100%
    and Lanterns                            e                        relevant
                   company
    Co., Ltd.                                                        electric
                                                                 engineering
                                                                 materials,
                                                                 metal
                                                                material and
                                                                non-metal
                                                                material
                                                                Production
                                                                and sales of
                                                                electric light
                                                                source
                                                                equipment
                                                                and     electric
                                                                light    source
                                                                products,
                                                                sales         of
    Foshan                                                          accessories
    Electrical &   Limited                                          of      electric
                                      Manufactur
    Lighting       liability   Xinxiang                10,000,000 light source, 10,000,000          100%   100%
                                      e
    (Xinxiang) Co., company                                         electric light
    Ltd.                                                            source
                                                                materials,
                                                                electric
                                                                engineering
                                                                materials,
                                                                accessories
                                                                for        motor
                                                                vehicles,
                                                                lamps        and
                                                                components
    Qinghai Fozhao Limited                Manufactur                Manufacturin
                           Qinghai                      5,000                      25,500,000   51%    51%    14,021,112.25
    Lithium Ion    liability              e                         g and selling
    Battery          company                                         lithium ion
    Cathode                                                          battery
    Materials Co.,                                                   cathode
    Ltd.                                                             materials
                                                                 Financing
                                                                 lease of
    Guangdong                                                        new-energy
    Fozhao           Limited                                         mobile and
    Financial        liability   Foshan   Lease        200,000,000 main             200,000,000   100%     100%
    Leasing Co.,     company                                         components,
    Ltd.                                                             lighting and
                                                                 energy-savin
                                                                 g products
                                                                 Production
                                                                 and sales of
                                                                 LED lightGuangdong
                                                                 source
    Fozhao New       Limited
                                      Manufactur                 products,                    54.95
    Light Sources    liability   Foshan                222,000,000                   10,000,000           54.95%   -995,084.83
                                      e                          LED lighting                    %
    Technology       company
                                                                 applianceCo., Ltd.
                                                                 products and
                                                                 installation
                                                                 of lighting(2) Subsidiaries obtained by business combination under same controlNaught(3) Subsidiaries obtained by business combination not under same control—In accordance with the equity transfer agreement signed between the Company and Prosperity Lamps andComponents Ltd on 27 Aug. 2008, Prosperity Lamps and Components Ltd. transferred 100% equities of NanjingFozhao Lighting Components Manufacturing Co., Ltd.(used to known as “Prosperity (Nanjing) LightingComponents Co., Ltd.”, and changed name to “Nanjing Fozhao Lighting Components Manufacturing Co., Ltd.”on 15 Nov. 2010.) to the Company. Therefore, Prosperity (Nanjing) Lighting Components Co., Ltd. became thewholly-owned subsidiary of the Company. The said subsidiary was included into the scope of the consolidatedfinancial statements since merger date.
                                                                                                                                   Unit: Yuan
                                                                                                                                 Balance of
                                                                                   The                                              parent
                                                                                   pro                                           company’s
                                                                 Actual
                                                                                   port The     Inclu                            equity after
                                                                 amount
                                                                                   ion propo ded in                             deducting the
                                                                   of      Other                                    Deducti
                     Regist                Registe                                  of    rtion conso                           difference that
    Subsidiari                      Busines              Busines investm essential                           Minority     ble
              Type       ered               red                                    hold    of   lidate                              loss of
       es                       s nature             s scope ents at investme                            interest minority
                     place                 capital                                 ing voting     d                                minority
                                                                   the      nt                                      interests
                                                                                   shar rights state                               interests
                                                                 period-
                                                                                    es (%) ment                               exceed equity
                                                                  end
                                                                                   (                                            obtained by
                                                                                   %)                                             minority
                                                                                                                                shareholders
                                                     Producti
                                                     on of
                                                     energy-s
    Nanjing                                              aving
    Fozhao                                               photoele
    Lighting                                             ctric
    Compone Limited      Nanjin Manufa 41,683, source                72,000,           100
                                                                                          100% Yes
    nts          Company g          cture         200 products          000              %
    Manufact                                             , lamps
    uring Co.,                                           and
    Ltd.                                                 lanterns,
                                                     light
                                                     source
                                                     equipme
                                                 nts,
                                                 illumina
                                                 tion
                                                 engineer
                                                 ing;
                                                 technolo
                                                 gical
                                                 develop
                                                 ment of
                                                 energy-s
                                                 aving
                                                 and
                                                 producti
                                                 on of
                                                 relevant
                                                 compon
                                                 ents;
                                                 sales of
                                                 self-pro
                                                 duction
                                                 productsOther notes to subsidiaries obtained by business combination not under same control:Naught2. Special purpose entities or operating entities with control right formed by entrusted operation or lease□ Applicable √ InapplicableOther explanation on special purpose entities or operating entities with control right formed by entrusted operation or lease:Naught3. Explanation on changes in consolidated scopeExplanation on changes in consolidated scope:Naught□ Applicable √ Inapplicable4. Subsidiaries that newly combined into consolidation scope in the reporting periodNaught5. Business combination under same control during the reporting periodNaught6. Business combination not under same control during the reporting periodNaught7. Subsidiaries reduced by selling equities without control right during the reporting periodNaught8. The counter purchases in the reporting periodNaught9. Mergers in the reporting periodNaught10. Exchange rates of major items in financial statements for foreign entitiesNaught(Ⅶ) Notes on major items in consolidated financial statements of the Company1. Monetary funds
                                                                                                                 Unit: RMB Yuan
                                       Closing balance                                         Opening balance
          Item          Amount in foreign     Exchan                         Amount in          Exchange
                                                        Amount in RMB                                        Amount in RMB
                            currency          ge rate                      foreign currency        rate
    Cash:                          --               --              256,751           --                --              102,890.33
    RMB                            --               --              256,751           --                --              102,890.33
    Bank deposit:                  --               --        920,945,080.27          --                --           688,662,470.16
    RMB                            --               --        914,414,239.55          --                --           677,998,462.61
    HKD                                    93.1      0.82               75.9               93.05        0.8107               75.44
    USD                            824,595.38        6.32       5,215,483.33      1,560,740.53          6.3009            9,834,070
    EUR                            167,104.75        7.87       1,315,281.49        101,667.64          8.1625           829,862.11
    Other monetary funds:          --               --          5,065,284.05          --                --             1,926,390.66
    RMB                            --               --          5,065,284.05          --                --             1,926,390.66
    Total                          --               --        926,267,115.32          --                --           690,691,751.152. Trading financial assets(1) Trading financial assets
                                                                                                   Unit: RMB Yuan
                              Item                         Closing fair value           Opening fair valueTrading bonds investmentTrading equity instruments investmentThe financial assets which are measured at their fair
    values and the variation of which is recorded into the                      4,162,089                4,097,366.22profits and losses of the current periodDerivative financial assetsHedging instrumentsOthers
    Total                                                                       4,162,089                4,097,366.22(2) Trading financial assets with realizable limitNaught(3) Hedging instruments and notes to relevant hedging transactionNaught3. Notes receivable(1) Category of notes receivable
                                                                                                   Unit: RMB Yuan
                       Category                          Closing balance                Opening balance
    Bank acceptance bill                                              118,432,741.89                   120,417,089.71
    Total                                                             118,432,741.89                   120,417,089.71(2) Notes receivable pledged at period-endNaught(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract oragreement, and undue notes endorsed to other parties at the end of the periodNaughtNotes of bank acceptance bill that already discounted or pledged.Naught4. Dividends receivableNaught5. Interest receivable(1) Interest receivable
                                                                                                                              Unit: RMB Yuan
                                                            Increase in current        Decrease in current
            Item                  Opening balance                                                                       Closing balance
                                                                  period                       period
    Industrial Bank                             506,347.11                     98,584.4                                               604,931.51
            Total                           506,347.11                     98,584.4                                               604,931.51(2) Overdue interestNaught(3) Notes to interest receivableNaught6. Accounts receivable(1) Accounts receivable listed by categories
                                                                                                                              Unit: RMB Yuan
                                                 Closing balance                                          Opening balance
                                       Book balance          Bad debt provision              Book balance              Bad debt provision
         Category
                                              Proportion                Proportion                 Proportion                    Proportion
                                 Amount                     Amount                     Amount                     Amount
                                                 (%)                         (%)                        (%)                          (%)Accounts receivable withsignificant single amount
    and                individually 0.00                       0.00                       0.00                      0.00
    withdrawn          bad    debtprovisionAccounts receivable for which bad debt provisions are made on the group basis
    Common business group            365,610,51         100% 21,936,630.               6% 319,387,0         99.66% 19,163,224.7                 6%
                                       1.23                         67                        79.08                              6
                                365,610,51                  21,936,630.                    319,387,0              19,163,224.7
    Subtotal of the groups                             100%                               6%                99.66%                                     6%
                                       1.23                         67                        79.08                              6Accounts receivable with
    insignificant          single
                                                                                           1,102,004
    amount and individually                                                                                  0.34% 1,102,004.37                       100%
                                                                                                 .37
    withdrawn        bad     debtprovision
                                365,610,51                  21,936,630.                    320,489,0              20,265,229.1
    Total                                             --                             --                      --                                  --
                                       1.23                         67                        83.45                              3Notes to category of accounts receivable:LoanAccounts receivable with significant single amount and individually withdrawn bad debt provision□Applicable √InapplicableIn the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:√ Applicable □ Inapplicable
                                                                                                                                 Unit: RMB Yuan
                                              Closing balance                                             Opening balance
         Aging                   Book balance                   Provision for bad                  Book balance                Provision for bad
                              Amount           Proportion            debts                     Amount          Proportion             debtsWithin 1 year
    Including:                       --                    --                 --                      --               --                   --Subtotal of within
                            357,406,232.59         97.76%            21,444,373.95            316,320,222.51      99.04%             18,979,213.351 yearSubtotal within a
                            357,406,232.59         97.76%            21,444,373.95            316,320,222.51      99.04%             18,979,213.35year
    1-2 years                       7,230,487.35           1.98%               433,829.24           1,682,904.52       0.53%               100,974.27
    2-3 years                        469,898.35            0.13%                    28,193.9          950,098.63            0.3%            57,005.92
    Over 3 years                     503,892.94            0.14%                   30,233.58          433,853.42       0.13%                26,031.213 to 4 years4 to 5 yearsOver 5 years
    Total                       365,610,511.23             --            21,936,630.67            319,387,079.08       --                19,163,224.76In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision□Applicable√ InapplicableIn the groups, accounts receivable adopting other methods to withdraw bad debt provision□Applicable√ InapplicableOther closing individually insignificant but provisions for bad debts individually accounts receivable:□Applicable√ Inapplicable(2) Accounts receivable reversed or collected in the reporting period
                                                                                                                                   Unit: RMB Yuan
                                                               Recognition basis of         Reversed or collected
    Content of accounts           Reversed or collected                                                                 Reversed or collected
                                                                   original bad debt       amount of the accrued
            receivable                       reason                                                                                amount
                                                                      provision              bad debt provision
              Total                            --                         --                                                         --The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single amount butindividually made impairment test at the end of reporting period:
                                                                                          Withdrawing proportion
            Content                 Book balance                   Bad debt amount                                                 Reason
                                                                                                    (%)
             Total                                                                                     --                            --Notes to accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics:Naught(3) The write-off accounts receivable
                                                                                                                                   Unit: RMB Yuan
                                                                                                                               Whether arising
                         Nature of accounts
    Name of entity                                      Write-off time          Write-off amount       Write-off reason         from related party
                                receivable
                                                                                                                              transaction or not?
    Guangzhou Yaotong                                                                                   Estimated   to       be
    Lighting Appliances Loan                            30 Jun. 2012                       721,509.44 unrecoverable      for No
    Trading Co., Ltd.                                                                                   long ageJilin Changchun
                                                                                                    Estimated   to       beHaitian Dongda
                         Loan                       30 Jun. 2012                         184,263 unrecoverable       for NoCommerce & Trade
                                                                                                    long ageCo., Ltd.
                                                                                                    Estimated   to       beDongda Economic &
                         Loan                       30 Jun. 2012                       117,772.19 unrecoverable      for NoTrade Co., Ltd.
                                                                                                    long age
    Shanghai Xianyi                                                                                     Estimated   to       be
                         Loan                       30 Jun. 2012                           50,000                             No
    Lighting Electrical                                                                                 unrecoverable    for
    Appliances Co., Ltd.                                                                                long age
                                                                                                    Estimated        to   be
    Other                small
                             Small balance           30 Jun. 2012                       28,459.74 unrecoverable           for Nocustomers
                                                                                                    long age
          Total                       --                      --                     1,102,004.37               --                       --(4) Particulars about accounts receivable due to shareholders holding 5% (including 5%) voting rights ofthe Company√ Applicable □ Inapplicable
                                                                                                                                     Unit: RMB Yuan
                                                            Closing balance                                     Opening balance
             Name of entity
                                                   Book balance        Withdrawal amount            Book balance               Withdrawal amountProsperity Lamps & Components
                                                      11,262,480.45              675,748.83                 12,222,599.77                733,355.99Limited
                     Total                            11,262,480.45              675,748.83                 12,222,599.77                733,355.99(5) Information of top 5 accounts receivable:
                                                                                                                                     Unit: RMB Yuan
                                 The relationship with the
      Name of entity                                                   Amount                       Aging                          Proportion
                                           Company
    GE COMPANY                       Non-related relationship                30,219,566.37 Within 1 year                                            8.27%
    Finance Bureau                   Non-related relationship                    20,322,421.7 Within 1 year                                         5.56%PROSPERITY LAMPS
                                 Related relationship                       11,262,480.45 Within 1 year                                         3.08%& COMPONENTS
    Changzhou              Sanfeng
    Electrical     &      Lighting Non-related relationship                  10,833,121.42 Within 1 year                                            2.96%Co., Ltd.Foshan Feidelun Electric
                                 Related relationship                        6,846,224.30 Within 1 year                                         1.87%Co., Ltd.
             Total                            --                         79,483,814.24                 --                                     21.74%(6) The amounts due from related parties
                                                                                                                                     Unit: RMB Yuan
                                           The relationship with the
          Name of entity                                                                Amount                                 Proportion
                                                    Company
    Prosperity              (Hangzhou) Company             controlled      by                      1,475,382.50                                     0.1%Lighting and Electrical Co., related-party natural personLtd.
    Prosperity Electrical (China) Company             controlled      by
                                                                          507,135.2                  0.14%
    Co., Ltd.                          related-party natural person
    OSRAM         (China)    Lighting Company        influenced       by
                                                                        2,475,195.67                 0.68%
    Co., Ltd.                          related-party natural person
    Prosperity        Lamps        & Shareholder holding over 5% of
                                                                       11,262,480.45                 3.11%
    Components Limited                 shares of the Company
    Swanki       (Foshan)     Electric Company        controlled      by
                                                                         910,902.43                  0.25%
    Corporation                        related-party natural person
    Zlamp       (Foshan)    Enterprise Company        controlled      by
                                                                        3,202,351.05                 0.88%
    Co., Ltd.                          related-party natural person
    Shanghai Liangqi Electrical Company               controlled      by
                                                                            406,328                  0.11%
    Appliance Co., Ltd.                related-party natural person
    Foshan Feidelun Electric Co., Company            influenced       by
                                                                        6,846,224.30                 1.87%
    Ltd.                               related-party natural person
    Nanjing      Kaixiang     Electric Company       influenced       by
                                                                         931,150.63                  0.25%
    Lighting Source Co., Ltd.          related-party natural personHaolin Lighting & Electrical
                                   Company       influenced       by
    Department        of      Foshan                                             36,608                  0.01%
                                   related-party natural personChancheng District
    Foshan Hongbang Electrical Company               influenced       by
                                                                        5,932,780.75                 1.62%
    & Lighting Co., Ltd.               related-party natural person
    Foshan        Gaoming      Shijia Company influenced by
                                                                          94,172.00                  0.03%
    Lighting Co., Ltd.                 related-party natural person
               Total                              --                   34,080,710.98                 9.32%(7) Information of accounts receivable that terminated recognitionNaught(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount ofassets and liabilities arising from further involvementNaught7. Other accounts receivable(1) Other accounts receivable disclosed by type:
                                                                                              Unit: RMB Yuan
                                                Closing balance                                             Opening balance
                                                        Provision for doubtful                                            Provision for doubtful
        Category                     Balance                                                    Balance
                                                                debts                                                             debts
                                              Proportio               Proportio                          Proportion                      Proportio
                                Amount                   Amount                             Amount                         Amount
                                                n (%)                   n (%)                               (%)                            n (%)
    Other               accounts
    receivable       that     is
    individually    significant 0.00                           0.00                         0.00                           0.00and provisions for baddebts individuallyOther accounts receivable that provisions for bad debts by group
                               11,500,176.2                                             20,054,554.2
    Common business group                           99.08%       690,010.57            6%                       99.47%        1,203,273.25            6%
                                         3                                                           1
                               11,500,176.2                                             20,054,554.2
    Subtotal of group                               99.08%       690,010.57            6%                       99.47%        1,203,273.25            6%
                                         3                                                           1Other accountsreceivable that is
    individually insignificant       106,552.5       0.92%         106,552.5      100%          106,552.5        0.53%            106,552.5      100%but provisions for baddebts individually
                               11,606,728.7                                             20,161,106.7
    Total                                             --         796,563.07       --                             --           1,309,825.75       --
                                         3                                                           1Other closing accounts receivable that is individually significant and provisions for bad debts individually.□Applicable√ InapplicableIn the group, other accounts receivable that provisions for bad debts by aging analysis:√ Applicable □ Inapplicable
                                                                                                                                  Unit: RMB Yuan
                                                       Period-end                                                 Period-begin
                                      Book balance                                               Book balance
            Aging                                                    Provision for bad                                        Provision for bad
                                                          Proporti                                                Proporti
                                     Amount                                debts               Amount                               debts
                                                             on                                                      onWithin 1 yearIncluding:
    Subtotal of within 1 year              11,058,067.41 96.16%                663,484.04          19,054,865.17 95.02%                  1,143,291.91
    1-2 years                                     54,408.82     0.47%             3,264.53            496,002.78        2.47%                 29,760.17
    2-3 years                                                                                            39,387.08       0.2%                  2,363.22
    Over 3 years                                   387,700      3.37%                  23,262         464,299.18        2.32%                 27,857.953 to 4 years4 to 5 yearsOver 5 years
    Total                                11,500,176.23     --               690,010.57      20,054,554.21        --                 1,203,273.25In the group, other accounts receivable that provisions for bad debts by balance percentage:□Applicable√ InapplicableIn the group, other accounts receivable that provisions for bad debts by other methods:□Applicable√ InapplicableOther closing individually insignificant but provisions for bad debts individually accounts receivable:√ Applicable □ Inapplicable
                                                                                                                              Unit: RMB Yuan
         Content                  Book balance         Provision for bad debts       Withdrawal proportion                Reason
    Fangcheng County Yuli                                                                                             Estimated         to   be
                                           106,552.5                    106,552.5                     100%
    Glass Tube Co., Ltd.                                                                                              unrecoverable
           Total                           106,552.5                    106,552.5                     100%                     --(2) Information of other accounts receivable reversed or recovered in the reporting period
                                                                                                                              Unit: RMB Yuan
                                Reason for reversed or Basis for determination       Accrued amount before         Amount of reversed or
    Other accounts receivable
                                      recovered         of bad debts provision        reversal or recovery               recovered
               Total                      --                       --                                                          --Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable:
         Content                 Book balance          Provision for bad debts       Withdrawal percentage                Reason
           Total                                                                               --                              --(3) Information of other accounts receivable written off in the reporting periodNaught(4) Other accounts receivable is due from shareholders with more than 5% (including 5%) of the votingshares of the Company□Applicable √Inapplicable(5) Nature or details of other significant accounts receivableNaught(6) Information of top five other accounts receivable
                                                                                                                     Unit: RMB Yuan
                                    Relationship with the                                                    Proportion of the total
       Name of entity                                                 Amount                      Aging
                                           Company                                                                    (%)
    Export rebates                    Not related relationship              8,551,251.85 1 year                                  73.67%Nanhai Huanan ElectricLighting Source Fixture
                                  Not related relationship                     483,000 1 year                                  4.16%City and Property Co.,Ltd.Foshan Gaoming District
                                  Company influenced by
    Ruibeike               Electric
                                  related-party natural                   220,822.92 1 year                                    1.90%
    Lighting               Source
                                  personMaterials Co., Ltd.
    Guangdong              Fozhao
    Guoxuan Power Energy Associated enterprises                               179,337.72 1 year                                    1.55%Co., Ltd.
    Shandong               Dingyu
    Electronic     Glass      Co., Not related relationship                   175,590.96 1 year                                    1.51%Ltd.
             Total                            --                        9,610,003.45                --                       82.80%(7) Information of the amounts due from related parties
                                                                                                                     Unit: RMB Yuan
         Name of entity                Relationship with the Company                 Amount                      AgingGuangdong Fozhao Guoxuan
                                       Associated enterprises                                   179,337.72                     1.55%Power Energy Co., Ltd.
    Foshan       Gaoming        District
                                       Company influenced by
    Ruibeike      Electric     Lighting                                                             220,822.92                      1.9%
                                       related-party natural personSource Materials Co., Ltd.
               Total                                      --                                    400,160.64                     3.45%(8) Information of other accounts receivable that terminated recognitionNaught(9) If securitization is carried out on other accounts receivable as the underlying assets, please list amountof assets and liabilities arising from further involvementNaught8. Prepayment(1) List by aging analysis:
                                                                                                                               Unit: RMB Yuan
                                            Closing balance                                                 Opening balance
       Aging                                                           Proportion                                                  Proportion
                                        Amount                                                          Amount
                                                                          (%)                                                          (%)
    Within 1 year                                        46,606,913.11         98.96%                                 39,163,913.07        95.45%1 year to 2
                                                            335,250                                                1,327,501.87         3.24%years2 years to 3
                                                                            0.71%years
    Over 3 years                                               156,552.5                                                    541,446         1.31%
    Total                                                47,098,715.61         --                                     41,032,860.94        --(2) Information of the top 5 prepayment
                                                                                                                               Unit: RMB Yuan
                                   Relationship with the
        Name of entity                                                 Amount                     Time                 Reason for unsettled
                                        Company
    Nanjing           Weiyiming
                                 Non-related-party                                                                   Advance           material
    Electro-Optical                                                                 8,300,000 11 Dec 2011
                                 supplier                                                                            paymentTechnology Co., Ltd.
    Zhongshan Wanglai                Non-related-party                                                                   Advance           material
                                                                                4,270,000 29 May 2012
    Industry Co., Ltd.               supplier                                                                            payment
    IRICO Group Electronics Non-related-party                                                                            Advance           material
                                                                                4,085,000 6 Jul 2011
    Company Limited                  supplier                                                                            payment
    Yangzhou       Fute     Streel
                                 Non-related-party                                      &nbs