新闻源 财富源

2019年11月11日 星期一

佛山照明(000541)公告正文

粤照明B:2012年年度报告(英文版)

公告日期:2013-04-26

                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
            2012 Annual Report
                APRIL 2013
                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
               Section I. Important Notes, Contents & ExplanationThe Board of Directors, the Supervisory Committee, directors, supervisors and senior managementstaff of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the Company”) warrantthat this report does not contain any false record or misleading statement or omit any material factand shall hereby accept, individually and collectively, responsibility for the factuality, accuracy andcompleteness of the contents carried in this report.The Company’s profit allocation preplan upon review and approval of the Board of Directors:Based on the total 978,563,745 shares of the Company as at 31 Dec. 2012, a cash dividend of RMB3.1 (tax included) will be distributed for every 10 shares held by A-share and B-share holders, withthe total distributed cash dividends reaching RMB303,354,760.95, neither bonus shares beingsended,no converting capital reserve into share capital.Zhong Xincai, company principal, Zhong Xincai, chief of the accounting work, and Wang Shuqiong,chief of the accounting organ (chief of accounting), hereby confirm that the Financial Reportenclosed in this report is factual, accurate and complete.All directors have attended in person the board session for reviewing this report except thefollowing:
    Name               Position               Reason for not attending the session in person       Name of the proxy
    Dou linping        Independent director   ON business                                          Liu zhenping
    Ye zaiyou          Director               ON business                                          Zhong xincai
    Michel Jean-paul   Director               ON business                                          Wu shengboHenriNo director, supervisor or senior executive has expressed their inability to guarantee or demurred atthe factuality, accuracy or completeness of the contents in this report.GP Certified Public Accountants Co., Ltd. has issued a standard unqualified audit report for theCompany.The accounting data and financial report in this report have all been audited by GP Certified PublicAccountants Co., Ltd.. This report is prepared in both Chinese and English. Should there be anyunderstanding discrepancy between the two versions, the Chinese version shall prevail.The future plans and some other forward-looking statements involved in this report shall not beconsidered as virtual promises of the Company to investors. And investors are kindly reminded topay attention to possible risks.
                                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                           ContentsSection I. Important Notes, Contents & Explanation..................................................................... 2Section II. Company Profile.............................................................................................................. 6Section III. Accounting & Financial Highlights.............................................................................. 9Section IV. Report of the Board of Directors................................................................................. 13Section V. Significant Events........................................................................................................... 33Section VI. Change in Shares & Shareholders.............................................................................. 51Section VII. Directors, Supervisors, Senior Management Staff & Employees........................... 56Section VIII. Corporate Governance..............................................................................................67Section IX. Internal Control............................................................................................................78Section X. Financial Report.............................................................................................................80Section XI. Documents Available for Reference.......................................................................... 176
                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                 Explanation
                                          Refers
                     Term                                                          Contents
                                            to
                                          Refers
    CSRC                                               China Securities Regulation Commission
                                            to
                                          Refers
    SZSE, the Stock Exchange                           Shenzhen Stock Exchange
                                            to
                                          Refers
    Company, the Company, our company, FSL             Foshan Electrical and Lighting Co., Ltd.
                                            to
                                          Refers
    Board of Directors                                 Board of Directors of Foshan Electrical and Lighting Co., Ltd.
                                            to
                                          Refers Shareholders’ General Meeting of Foshan Electrical and Lighting Co.,Shareholders’ General Meeting
                                            to     Ltd.
                                          Refers
    Supervisory Committee                              Supervisory Committee of Foshan Electrical and Lighting Co., Ltd.
                                            toYuan, Thousand Yuan, Ten thousand Yuan, One Refers RMB Yuan, RMB Thousand Yuan, RMB Ten thousand Yuan, RMB One
    Hundred Million Yuan                        to     Hundred Million Yuan
                                          Refers
    Annual report auditor, GP                          GP Certified Public Accountants Co., Ltd.
                                            to
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                Reminder of Major Risks1. Risk of a fiercer competitionCurrently, the Company is mainly engaged in lighting fixtures, lamps and LED products. With aslower growth of the domestic economy and the continuous impact of the European debt crisis,competition in the domestic lighting sector will become fiercer and the average profit rate oftraditional lighting products will gradually decrease. In view of that, the Company will furtherincrease the sales scale of the existing channels and the operating efficiency, input great effort inexpanding the secondary and third markets and proactively develop new products to resist anyoperating risk and expand the room for survival and development.2. Risk of rising costsAlong with growth of the domestic economy, the salaries offered by enterprises in the Pearl RiverDelta are no longer attractive when compared with the inland, causing a labor shortage in the delta.As a labor-intensive enterprise, the Company is to face the pressure of a rising labor cost.Meanwhile, prices of raw materials may rise, too. All these impose a risk of rising costs anddecreasing profits on the Company. To cope with that, the Company will enhance internalmanagement, give play to its scale advantage, strengthen cost control, etc..3. With favor and guidance of the government’s industrial policies, LED products start to enter anera featuring fast-changing technologies and products, as well as a cut-throat competition. Therefore,the Company will input great efforts in technological innovation and R&D, talent attraction,channel promotion, marketing mode improvement, etc.. As such, the input-output ratio will staycomparatively high in the short run, affecting the profit status and amount.
                                                                       2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                         Section II. Company ProfileI. Basic information of the Company
    Stock abbreviation                    FSZM/YZMB                           Stock code                   000541/200541
    Stock exchange listed with            Shenzhen Stock Exchange
    Chinese name of the Company           佛山电器照明股份有限公司Abbr. of the Chinese name of the
                                      佛山照明CompanyEnglish name of the Company (if
                                      FOSHAN ELECTRICAL AND LIGHTING CO.,LTDany)Abbr. of the English name of the
                                      FSLCompany (if any)
    Legal     representative   of   the
                                      Zhong XincaiCompany
                                      No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province,Registered address
                                      P.R.ChinaPostal code for the registered
                                      528000address
                                      No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province,Office address
                                      P.R.ChinaPostal code for the office address 528000
    Internet website of the Company       www.chinafsl.com
    Email address                         gzfsligh@pub.foshan.gd.cnII. For Contact
                                                         Company Secretary                    Securities Affairs Representative
    Name                                        Zhou Xiangfeng                               Huang Yufen
                                            No. 64, Fenjiang North Road, Chancheng       No. 64, Fenjiang North Road, Chancheng
    Contact address                             District, Foshan City, Guangdong Province,   District, Foshan City, Guangdong
                                            P.R.China                                    Province, P.R.China
    Tel.                                        (0757)82966062       82810239              (0757)82966028
    Fax                                         (0757)82816276                             (0757)82816276
    E-mail                                      fsldsh@126.com                               fslhyf@163.com
                                                                           2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.III. About information disclosure and where this report is placed
    Newspapers designated by the Company for               China Securities Journal, Securities Times, Shanghai Securities News,
    information disclosure                                 Securities Daily, Ta Kung Pao (HK)Internet website designated by CSRC for
                                                       http://www.cninfo.com.cndisclosing this report
                                                       Company Secretary Office, FSL Office Building, No. 64, Fenjiang North Road,Where this report is placed
                                                       Chancheng District, Foshan City, Guangdong Province, P.R.ChinaIV. Change of the registered information
                                                                                                Registration code of
                           Registration date    Registration place       Business license No.                          Organizational code
                                                                                                      taxation
                                               Guangdong Province
                                               Administration for
    Initial registration     20 Oct. 1992                                    440000400010049        440601190352575        19035257-5
                                               Industry &
                                               Commerce
                                               Guangdong Province
    Registration at end                            Administration for
                         13 May 2012                                     440000400010049        440601190352575        19035257-5
    of     report period                           Industry &
                                               Commerce
    Change of the Company’s main business         The main business of lighting fixtures and lamps of the Company has remained the
    since listing (if any)                         same since its listing.
                                               On 23 Nov. 1993, the A-shares of the Company went public via Shenzhen Stock
                                               Exchange. As one of the promoter shareholders of the Company, Foshan State-owned
                                               Assets Supervision and Administration Commission (Foshan SASAC) was the biggest
                                               shareholder of the Company, holding 28.93 million shares, i.e. a 37.49% stake. In Jul.
                                               1995, the Company issued 50 million B-shares and Foshan SASAC held 52.074
                                               million A-shares, accounting for 28.32% of the Company’s total shares, making it the
                                               biggest shareholder of the Company. In Dec. 2000, the Company made an additional
                                               issue of 55 million A-shares and Foshan SASAC held 85.9221 million shares,
                                               accounting for 23.97% of the Company’s total shares, making it still the biggestChanges of the controlling shareholder (if
                                               shareholder. On 15 Mar. 2006, the Company convened a general meeting on the stockany)
                                               right splitting reform, at which the plan for stock right splitting reform was reviewed
                                               and approved. The 85,922,100 shares of the Company (a stake of 23.97%) held by the
                                               formerly biggest shareholder Foshan SASAC were transferred to Osram Prosperity
                                               Holding Co., Ltd. (a stake of 13.47%) and Prosperity Lamps & Components Limited (a
                                               stake of 10.50%). At present, Osram Prosperity Holding Co., Ltd. (currently known as
                                               “Osram Holding Co., Ltd.”) is the biggest shareholder of the Company, holding
                                               131,815,685 shares, i.e. a stake of 13.47 % . And Prosperity Lamps & Components
                                               Limited is the second biggest shareholder of the Company, holding 102,751,648 shares,
                                               i.e. a stake of 10.50%.
                                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.V. Other informationThe CPAs firm hired by the Company:
    Name                                GP Certified Public Accountants Co., Ltd.
                                    10/F, Guangdong Holdings Tower, 555 DongFeng Road East, Guangzhou, GuangdongOffice address
                                    Province, P.R.China
    Signing accountants                 Wang Shaohua and Chen DanyanSponsor engaged by the Company to conduct consistent supervision during the reporting period□ Applicable √ InapplicableFinancial consultant engaged by the Company to conduct consistent supervision during the reporting period□ Applicable √ Inapplicable
                                                                          2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                         Section III. Accounting & Financial HighlightsI. Major accounting data and financial indicatorsDoes the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy orcorrection of any accounting error?□ Yes √ No
                                                                                               Increase or decrease of
                                                 2012                     2011                 this year over last year         2010
                                                                                                        (%)
    Operating revenues (RMB Yuan)                 2,201,910,731.89         2,260,929,873.55                        -2.61%        1,956,068,628.79
    Net     profit        attributable    to
    shareholders     of     the   Company           400,466,745.11           291,660,093.73                        37.31%          263,776,242.98(RMB Yuan)
    Net    profit    attributable toshareholders of the Company after
                                                240,056,445.28           297,942,436.25                       -19.43%          254,762,928.20extraordinary gains and losses(RMB Yuan)Net cash flows from operating
                                                437,396,852.06           269,878,443.21                        62.07%          210,629,139.93activities (RMB Yuan)
    Basic EPS (RMB Yuan/share)                                 0.41                         0.30                   36.67%                     0.27
    Diluted EPS (RMB Yuan/share)                               0.41                         0.30                   36.67%                     0.27
    ROE (%)                                                 14.06%                   10.53%                         3.53%                   9.89%
                                                                                               Increase or decrease of
                                           As at 31 Dec. 2012      As at 31 Dec. 2011          this year-end than last    As at 31 Dec. 2010
                                                                                                    year-end (%)
    Total assets (RMB Yuan)                       3,448,274,301.82         3,155,554,351.27                         9.28%        3,128,547,460.46Net assets/owners’ equity
    attributable to shareholders of the           2,950,106,976.17         2,790,878,659.33                         5.71%        2,766,913,027.29Company (RMB Yuan)II. Differences between accounting data under domestic and overseas accounting standards1. Differences of net profit and net assets disclosed in financial reports prepared under international andChinese accounting standards
                                                                                                                               Unit: RMB Yuan
                                       Net profit attributable to shareholders of the          Net assets attributable to shareholders of the
                                                        Company                                                    Company
                                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                             2012                     2011                   Closing amount        Opening amountAccording to Chinese
                                          400,466,745.11              291,660,093.73           2,950,106,976.17       2,790,878,659.33accounting standardsItems and amounts adjusted according to international accounting standards
                                                     0.00                         0.00According to international
                                          400,466,745.11              291,660,093.73           2,950,106,976.17       2,790,878,659.33accounting standards2. Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards
                                                                                                                        Unit: RMB Yuan
                                     Net profit attributable to shareholders of the      Net assets attributable to shareholders of the
                                                      Company                                              Company
                                             2012                     2011                   Closing amount        Opening amountAccording to Chinese
                                          400,466,745.11              291,660,093.73           2,950,106,976.17       2,790,878,659.33accounting standardsItems and amounts adjusted according to overseas accounting standardsAccording to overseas
                                          400,466,745.11              291,660,093.73           2,950,106,976.17       2,790,878,659.33accounting standardsIII. Items and amounts of extraordinary gains and losses
                                                                                                                        Unit: RMB Yuan
                     Items                             2012                   2011                  2010                  NotesGain/loss on the disposal of non-current
    assets (including the offset part of the asset      182,392,244.82           -7,121,088.70         3,196,962.59impairment provisions)Tax rebates, reductions or exemptions due toapproval beyond authority or the lack ofofficial approval documentsGovernment grants recognized in the currentyear, except for those acquired in the
    ordinary course of business or granted at              1,633,073.56          1,406,571.96          3,992,076.51certain quotas or amounts according to thecountry’s unified standardsCapital occupation charges on non-financial
    enterprises that are recorded into current               553,325.09            418,615.75gains and losses
                                                               2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Gains due to that the investment costs forthe Company to obtain subsidiaries,associates and joint ventures are lower thanthe enjoyable fair value of the identifiablenet assets of the investees when making theinvestmentsGain/loss on non-monetary asset swapGain/loss on entrusting others withinvestments or asset managementAsset impairment provisions due to acts ofGod such as natural disastersGain/loss on debt restructuringExpenses on business reorganization, suchas expenses on staff arrangements,integration, etc.Gain/loss on the part over the fair value dueto transactions with distinctly unfair pricesCurrent gains and losses of subsidiesacquired from business combination underthe same control as from period-begin tocombination dateGain/loss on contingent events irrelevant tothe Company’s normal businessGains and losses on change in fair valuefrom tradable financial assets and tradablefinancial liabilities, as well as investmentincome from disposal of tradable financial
                                                  -84,637.47         281,899.42          182,978.40assets and tradable financial liabilities andfinancial assets available for sales except for
    effective   hedging   related     with   normalbusinesses of the CompanyReversal of provision for impairment that
                                                                       7,944.50          225,016.27made impairment test independentlyGain/loss on loans obtained by entrustingothersGain/loss on change of the fair value ofinvesting real estate of which the subsequentmeasurement is carried out adopting the fairvalue methodEffect on current gains/losses when a
                                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.one-off adjustment is made to currentgains/losses according to requirements oftaxation, accounting and other relevant lawsand regulationsCustody fee income when entrusted withoperationNon-operating income and expense other
                                                    -3,022,341.29           -754,082.64         3,320,283.04than the aboveOther gain and loss items that meet the
                                                       111,586.72           -269,418.95          -475,060.26definition of an extraordinary gain/loss
    Income tax effects                                  21,172,951.60           252,783.86          1,428,941.77Minority interests effects (after tax)
    Total                                              160,410,299.83         -6,282,342.52         9,013,314.78             --Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains andLosses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable √ Inapplicable
                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                 Section IV. Report of the Board of DirectorsI. OverviewIn 2012, both the international and domestic economies were struggling at the bottom. Theindustrial transformation and the extremely grave export situation in particular affected theoperating results of the Company to a great extent. With various unfavorable factors, for 2012, theCompany achieved operating revenues of RMB 2.202 billion, down 2.61% over last year; totalprofit of RMB 0.472 billion, up 32.96% over last year; net profit attributable to shareholders ofthe company of RMB 0.4 billion, up 37.31% over last year; and after-tax EPS of RMB 0.41 pershare.According to the decisions and plans of the Board of Directors at the beginning of the year, theCompany adopted “enhance R&D, adjust the product structure, strengthen internal management andstrictly control costs” as the main line for operation and management and proactively carried out thefollowing work to constantly increase its comprehensive competitiveness.1. It worked on R&D, proactively adjusting the product structure.It proactively dealt with the new industrial policies such as elimination of incandescent lamps andpromotion of great lighting products. It increased input in developing new products, especially newLED products. It developed products according to the government’s supportive policies, launchednew products with high technological contents and increased the weight of LED products in itssales income through optimizing the product structure.2. It worked on marketing management, increasing its internal strength and polishing its image.The Company attached importance to improving marketing channels so as to ensure a sustainabledevelopment. In terms of the domestic market, it enhanced the marketing teams around the countryand trainings for business personnel; strengthened internal management and improved the overallcapability of the team; and perfected the internal processes, adopted more flexible marketingstrategies, formulated policies to support key products and improved customer service. As for theinternational market, the Company selectively attended some international or regional exhibitionswith a high reputation and a significant influence to primarily promote its own brands, and boost theinternational reputation of its “FSL” brand. In terms of channel innovation, the Company developednew customers via the convenient information network to save some marketing cost.
                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.3. The Company worked on internal management, attaching importance to management so as toimprove the operating performance.Firstly, the Company improved its management capability and enhanced cost control. Using theSAP system, it enhanced energy management, modified the equipment with high energyconsumption and reduced the energy cost. It also looked for new techniques and materials tointegrate the procurement resources and reduce the raw material cost. Meanwhile, it continued tobetter the material quota mechanism to keep workshop production under control.Secondly, the Company carried out performance management to motivate and encourage employees.Through following up the accomplishment of all objectives and holding a performance reviewmeeting on a quarterly basis, the Company tried to beef up the accomplishment of objectives by allof its departments. Meanwhile, it enhanced the role of performance appraisal and connectedemployees’ remunerations with their performance indicator appraisal results to fully show the workand achievements of all departments, create a lively atmosphere of “better performance, moreincome” and boost development of the Company.4. It worked on risk precaution, implementing the internal control rules in an all-rounded way.During the reporting period, the Company proactively pushed forward the all-roundedimplementation of the internal control rules and effectively improved its internal control mechanism.Through reviewing the business processes and conducting risk identification and assessment andinternal control effectiveness tests, the Company tried to find out its internal control defects andrectify them to build up a sound internal control mechanism, effectively avoid and resist risks andensure a healthy development of the Company.II. Main business analysis1. OverviewIn 2012, the Company proactively coped with the unfavorable international and domestic economicsituations, as well as the changes in the electric light source sector, and overcame variousdifficulties such as rising costs of raw materials, labor and transportation, Renminbi appreciationand a weak market demand. For the year, the Company achieved lighting sales revenues of RMB2.157 billion, down 2.49% over last year, of which the domestic sales revenue stood at RMB 1.546billion, up 11.87% over last year; and the export revenue stood at RMB 0.611 billion, down 26.03%
                                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.over last year.In terms of the domestic sales, the Company mainly adopted measures such as developing newproducts, adjusting the marketing strategy and tapping potentials in the third-and fourth-tier marketsto successfully ensure growth of the domestic sales. As for the export, since the incandescent lampprohibition decree took effect and the overseas economy was weak, the export sales decreased tosome degree..State the reasons why the Company’s actual business performance is 20% lower or higher than the earningforecast for the reporting period which has been publicly disclosed earlier:□ Applicable √ Inapplicable2. RevenuesIs the Company’s goods selling revenue higher than the service revenue?√ Yes □ No
         Industry                     Items                    2012                        2011                 YoY +/-(%)
                             Sales volume (piece)            1,185,758,696.00           1,343,636,741.00                    -11.75%Lighting fixtures and
                             Output (piece)                  1,012,225,826.00           1,138,667,050.00                    -11.10%lamps
                             Stock (piece)                     112,938,492.00              129,201,485.00                   -12.59%Reasons for any over-30% YoY movement of the data above:□ Applicable √ InapplicableMajor orders held:□ Applicable √ InapplicableSignificant change or adjustment of the Company’s products or services during the reporting period:□ Applicable √ InapplicableMajor customers:
    Total sales to the top 5 customers (RMB Yuan)                                                                       253,740,925.35Ratio of the total sales to the top 5 customers to the
                                                                                                                            11.52%annual total sales (%)Information about the top 5 customers:√ Applicable □ Inapplicable
    Serial No.                  Name of customer                   Sales (RMB Yuan)              Proportion in annual total sales (%)
    1         Customer 1                                                  97,766,982.47                                      4.44%
    2         Customer 2                                                  46,040,839.55                                      2.09%
                                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
      3       Customer 3                                         39,178,281.43                                    1.78%
      4       Customer 4                                         36,401,195.43                                    1.65%
      5       Customer 5                                         34,353,626.47                                    1.56%
    Total                                                        253,740,925.35                                   11.52%3. CostsClassified by industry:
                                                                                                           Unit: RMB Yuan
                                            2012                                      2011
                                                     Proportion in                           Proportion in      YoY +/-
    Industry            Item
                                  Amount            operating costs        Amount              operating          (%)
                                                        (%)                                 costs(%)
                                 1,598,108,805.64          98.02%        1,592,782,591.17           98.27%         0.33%
    Lighting
                 Raw materials   1,082,931,259.25          66.42%        1,076,576,906.77          66.42%          0.59%fixtures and
                 Labor             235,434,016.61          14.44%         234,052,552.45           14.44%          0.59%
    lamps
                 Depreciation       76,761,202.51            4.71%          78,125,574.99            4.82%         -1.75%
                                    12,297,471.44            0.75%          13,920,941.68            0.86%        -11.66%
    Hotel         Labor               6,417,566.12            0.39%           6,267,786.26            0.39%         2.39%
                 Expense             5,879,905.32            0.36%           7,653,155.42            0.47%        -23.17%Classified by product:
                                                                                                           Unit: RMB Yuan
                                            2012                                      2011
                                                    Proportion in                            Proportion in
    Product            Item                                                                                      YoY +/- (%)
                                  Amount            operating costs        Amount              operating
                                                       (%)                                  costs(%)
                                 1,598,108,805.64           98.02%       1,592,782,591.17          98.27%           0.33%
    Lighting
                 Raw materials   1,082,931,259.25           66.42%       1,076,576,906.77          66.42%           0.59%
    fixtures
                 Labor            235,434,016.61            14.44%        234,052,552.45           14.44%           0.59%and lamps
                 Depreciation      76,761,202.51             4.71%         78,125,574.99            4.82%          -1.75%
                                   12,297,471.44             0.75%         13,920,941.68            0.86%         -11.66%
    Hotel        Labor               6,417,566.12            0.39%           6,267,786.26           0.39%           2.39%
                 Expense             5,879,905.32            0.36%           7,653,155.42           0.47%         -23.17%Explanation:N/A
                                                                       2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Total purchases from the top 5 suppliers (RMB Yuan)                                                               151,698,080.36Ratio of the total purchases from the top 5 suppliers to the
                                                                                                                            11.21%annual total purchases(%)Information about the top 5 suppliers:√ Applicable □ Inapplicable
                                                               Procurement amount (RMB     Proportion in annual total procurement
    Serial No.                 Name of supplier
                                                                        Yuan)                           amount (%)
      1       Suppliers 1                                                  45,078,957.92                                     3.33%
      2       Suppliers 2                                                  29,809,386.03                                      2.2%
      3       Suppliers 3                                                  27,036,423.79                                        2%
      4       Suppliers 4                                                  25,089,973.33                                     1.85%
      5       Suppliers 5                                                  24,683,339.29                                     1.82%
    Total                                                                 151,698,080.36                                    11.21%4. Expense
                                                                                                        Unit: RMB Yuan
              Item                             2012                             2011                        YoY +/-%
    Selling expenses                                109,867,531.15                 104,154,716.99                             5.48%
    Administrative expenses                         167,102,936.83                 150,580,090.88                            10.97%
    Financial expenses                              -10,988,942.10                   -7,494,610.15                          -46.62%
    Income tax                                       71,833,165.24                  57,872,709.83                            24.12%The financial expenses decreased 46.62% over last year mainly because the interest income increased.5. R&D expensesConsidering the government’s industrial policies and measures to encourage and support environment protection,new light sources and new energy, the Company proactively develops high-efficient lighting products featuringenergy saving and environmental protection, increases the input for R&D and the new light source of LED andbeefs up product upgrading. In 2012, the Company spent RMB 70.56 million R&D, accounting for 3.2% of theoperating revenues.6. Cash flows
                                                                                                                    Unit: RMB Yuan
               Item                              2012                            2011                       YoY +/-(%)Subtotal of cash inflows from
                                                  2,455,183,322.27                2,563,492,994.91                          -4.23%operating activities
                                                                   2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Subtotal of cash outflows from
                                            2,017,786,470.21                   2,293,614,551.70                               -12.03%operating activitiesNet cash flows from operating
                                              437,396,852.06                     269,878,443.21                               62.07%activitiesSubtotal of cash inflows from
                                              321,909,282.02                      38,595,680.90                              734.06%investing activitiesSubtotal of cash outflows from
                                              219,385,814.54                      80,485,400.28                              172.58%investing activitiesNet cash flows from investing
                                              102,523,467.48                     -41,889,719.38                              344.75%activitiesSubtotal of cash inflows from
                                                           0.00                                0.00                                0%financing activitiesSubtotal of cash outflows from
                                              244,774,840.33                     248,056,198.83                                -1.32%financing activitiesNet cash flows from financing
                                             -244,774,840.33                    -248,056,198.83                                  1.32%activitiesNet increase in cash and cash
                                              294,759,139.59                     -21,161,881.80                            1,492.88%equivalentsReasons for any over-30% YoY movement of the data above:√ Applicable □ Inapplicable1. Net cash flows from operating activities increased 62.07% over last year, which was mainly because the cashpaid for goods and services decreased.2. Net cash flows from investing activities increased 344.75% over last year, which was mainly because the cashreceived from subsidiary disposal increased.3. Net increase in cash and cash equivalents increased 1,492.88% over last year, which was mainly because thecash received from subsidiary disposal increased.Reasons for a big difference between the operating cash flows and the net profit:□ Applicable √ InapplicableIII. Breakdown of main business
                                                                                                                      Unit: RMB Yuan
                                                                          Increase/decrease                         Increase/decrease
                                                                                               Increase/decrease
                        Operating                     Gross profit rate     of operating                             of gross profit
                                    Operating costs                                            of operating costs
                        revenues                             (%)          revenues over last                        rate over last year
                                                                                               over last year (%)
                                                                              year (%)                                     (%)
                                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Classified by industry:Lighting fixtures
                    2,156,602,294.62 1,598,108,805.64                  25.9%               -2.32%               0.33%              -1.96%and lamps
    Hotel                     19,901,080.42      12,297,471.44             38.21%             -17.41%              -11.66%             -4.02%Classified by product:Lighting fixtures
                    2,156,602,294.62 1,598,108,805.64                  25.9%               -2.32%               0.33%              -1.96%and lamps
    Hotel                     19,901,080.42      12,297,471.44             38.21%             -17.41%              -11.66%             -4.02%Classified by region:
    Domestic            1,565,766,316.23 1,162,704,208.35                  25.74%              11.35%              15.09%              -2.41%
    Overseas                610,737,058.81      447,702,068.73             26.69%             -26.05%              -24.94%             -1.09%Where the Company’s accounting standard of the main business data above changed during the reporting period, give the mainbusiness data of the latest year adjusted according to the accounting standard at the end of the reporting period:□ Applicable √ InapplicableIV. Asset and liability analysis1. Major changes of asset items
                                                                                                                          Unit: RMB Yuan
                            As at 31 Dec. 2012                   As at 31 Dec. 2011
                                          Proportion in                                           Proportion         Explain any major
                                                                               Proportion in
                          Amount           total assets       Amount                             change(%)              change
                                                                              total assets (%)
                                              (%)
    Monetary funds          985,450,890.74          28.58%       690,691,751.15           21.89%            6.69%Accounts
                        334,006,892.19            9.69%      300,223,854.32             9.51%           0.18%receivable
    Inventories             434,541,386.19            12.6%      493,613,449.06           15.64%            -3.04%Investing real
                                   0.00              0%                0.00                0%              0%estateLong-term equity
                        519,693,431.95          15.07%       447,024,125.94           14.17%              0.9%investment
    Fixed assets            539,145,022.38          15.64%       643,078,677.62           20.38%            -4.74%Construction in
                         95,684,569.86            2.77%       88,017,369.74             2.79%           -0.02%process
                                                                           2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.2. Major changes of liability items
                                                                                                                               Unit: RMB Yuan
                                   2012                                  2011
                                                                                                  Proportion
                                       Proportion in                         Proportion in                         Explain any major change
                       Amount                                Amount                             change(%)
                                      total assets (%)                      total assets (%)Short-term
                              0.00                   0%             0.00                 0%                  0%borrowingsLong-term
                              0.00                   0%             0.00                 0%                  0%borrowings3. Assets and liabilities measured at fair value
                                                                                                                               Unit: RMB Yuan
                                     Gain/loss on
                                                       Cumulative fair     Impairment          Purchased
                                      fair value                                                             Sold amount in
                    Opening                             value change     provisions in       amount in the                        Closing
    Item                            change in the                                                             the reporting
                     amount                             recorded into    the reporting         reporting                          amount
                                       reporting                                                                  period
                                                           equity            period             period
                                        periodFinancial assets1. Financialassetsmeasured atfair value andof whichchanges are
    recorded into       4,097,366.22          -84,637.47                                                                             4,012,728.75currentgains/losses(excludingderivativefinancialassets)2.Available-for-s
                   67,814,691.84                          4,002,950.56                                                          71,817,642.40ale financialassetsSubtotal of
                   71,912,058.06          -84,637.47      4,002,950.56                                                          75,830,371.15financial assetsTotal of the
                   71,912,058.06          -84,637.47      4,002,950.56                                                          75,830,371.15above
                                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Financial
                            0.00            0.00            0.00             0.00                                            0.00liabilitiesDid any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?□ Yes √ NoV. Core competitiveness analysisAs a leading enterprise of traditional electric light sources, the Company has always adhered to theoperation and management philosophy of “provide customers with quality products and servicesthrough scientific management and advanced technologies”.1. Channel development: The Company sticks to the market strategy of specifying channels. Whilemaintaining and enhancing its wholesale channel advantage, the Company accelerates developmentof the franchised shops, improves the supermarket and e-commerce channels and constantlyimproves the market layout and the network development so as to further increase its influence andcompetitiveness in terms of retail and engineering channels.2. Brand strategy: The Company continues to implement the brand strategy, providing best-qualityand efficient products for consumers and increasing the reputation of the “FSL” brand. Currently,the Company has two famous brands—“FSL” and “Fenjiang”.3. Technical innovation: Besides solidifying and enhancing the traditional lighting product and
    technical      advantages,         the     Company          beefs      up     development          of    high-efficient       andlow-energy-consumption products. In Jan. 2012, the Company passed the relevant re-examinationand became one of the first “hi-tech enterprises” for 2011. It focuses on development of LEDproducts, constantly brings in senior professionals and develops LED products with proprietary IPR.These products have produced remarkable results in the market, and their weight in all theCompany’s products are increasing in terms of production and sale. At the same time, the Companywill launch more new products and models with competitiveness to optimize the product structureand upgrade its products.
                                                                         2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.VI. Investment analysis1. Investments in equities of external parties(1) Investments in external parties
                                                   Investments in external parties
    Investment amount in 2012 (RMB Yuan)          Investment amount in 2011 (RMB Yuan)                               +/-%
                               83,999,916.00                                12,643,546.03                                         564.37%
                                                        Particulars about investees
                                                                                                         Proportion of the Company’s
           Name of investee                                     Main business                           investment in the investee’s total
                                                                                                               equity interests (%)
    Qinghai    Fozhao        Lithium   Energy Integrated development and utilization of salt lake
                                                                                                                                        38%
    Exploitation Co., Ltd.                    brine resource.Guangdong Fozhao Guoxuan Power R&D, production, installation and sales of lithium ion
                                                                                                                                        50%
    Battery Co., Ltd.                         battery and its control system
                                          R&D, production and sale of lithium ion batteries and
                                          materials, solar, wind and other renewable energy
                                          application     products,   equipment       and   systems,
                                          energy-saving optoelectronic and electronic products,
    Hefei Guoxuan High-tech Power             equipment       and   systems,    and   lithium     power
                                                                                                                                      14.9%
    Energy Co., Ltd.                          emergency supply, power-driven tools, transportation
                                          tools and chargers; operation and agent service of
                                          import and export of products and technologies;
                                          design and construction of lighting projects for cities
                                          and roads
                                          Investment into hi-tech and innovative businesses,
    Shenzhen Liangke Venture Capital          trusteeship management and operation of venture
                                                                                                                                      18.5%
    Company Limited                           capital of other venture capital companies; investment
                                          consulting service (excluding restricted fields)
                                          Investment, operation and management of self-ownedGuangzhou Zhujiang Asset
                                          funds; project planning; investment management                                              15.38%Management Company Limited
                                          consulting service
                                          Electronic      products,    communication         devices,
                                          household appliances, furniture, speakers, paper,
                                          paper products, chemicals for daily use, shoes, hats
    Shenzhen Zhonghao (Group) Ltd.            and garment; domestic commerce, material supply                                 Less than 5%
                                          and marketing (excluding goods operated, sold and
                                          controlled by special entities); supervision of the
                                          self-developed projects
                                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                           Production and sale of tungsten, molybdenum, nickel
                                           and clad metal products, diamond die, thin steel
                                           strips, electric light source products, power supply
                                           products, industrial gas and special equipment;
                                           production, installation, sale, mechanic processing,
    Chengdu Hongbo Industrial Co., Ltd.        vehicle repair, consulting service, sale of goods                                                 6.94%
                                           (excluding those prohibited by the government from
                                           circulating), export of products produced by it or its
                                           member companies; import of needed mechanic
                                           equipment, components, raw and auxiliary materials;
                                           processing and compensation trade
    Xiamen Bank                                Banking services                                                                                  9.99%
    China Guangfa Bank Co., Ltd.               Banking services                                                                            Less than 5%
    Foshan Fochen Road Development             Building and operation of the Fochen (Foshan
                                                                                                                                             7.66%
    Company Limited                            Chencun) Road(2)Equity-holdings in financial enterprises
                                                                                                             Gain/loss
                           Initial      Opening       Opening        Closing       Closing       Closing      in the
    Enterprise Enterprise investment equity-hol equity-hol equity-hol equity-hol book value reporting Accountin                                Equity
    name       variety   cost (RMB       dings        ding ratio      dings        ding ratio     (RMB        period         g title       source
                           Yuan)        (share)          (%)         (share)          (%)         Yuan)       (RMB
                                                                                                              Yuan)
                                                                                                                          Available-fChina
             Commerci 30,828,816                                                                71,817,642 3,131,720. or-sale            Additional
    Everbright                             23,546,768         0.06% 23,546,768             0.06%
             al bank             .00                                                                   .40             14 financial      issueBank
                                                                                                                          assets
                                                                                                                          Long-term
    Xiamen       Commerci 208,574,21                                    105,494,40                  292,574,13 14,571,414                    Additional
                                       85,714,200         9.99%                        9.99%                              equity
    Bank         al bank           7.00                                            0                      3.00         .00                   issue
                                                                                                                          investmentFoshanbranch of
                                                                                                                          Long-term
    Guangdon Commerci                                                                                                                        Additional
                         500,000.00      229,792               5%     229,792               5% 500,000.00                 equity
    g            al bank                                                                                                                     issue
                                                                                                                          investmentDevelopment Bank
                         239,903,03 109,490,76                      129,270,96                  364,891,77 17,703,134
    Total                                                     --                           --                                      --            --
                               3.00               0                            0                      5.40         .14
                                                                             2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.(3) Securities investments
                                                               Sharehold                  Sharehold               Gain/loss
                                    Initial     Number                     Number                     Closing
                                                                  ing                        ing                     for
                                   investmen of shares                     of shares                    book
    Variety of Code of       Name of                               percentag                  percentag               reporting Accounti Source of
                                     t cost      held at                    held at                    value
    securities securities securities                                 e at                       e at                   period      ng title   stock
                                    (RMB        period-be                  period-en                   (RMB
                                                               period-be                  period-en                (RMB
                                    Yuan)         gin                         d                        Yuan)
                                                                  gin                        d                     Yuan)
                                                                                                                              Trading
                                   5,000,000                                                          4,012,728
    Fund                                                                                                                          financial
                                          .00                                                               .75
                                                                                                                              assetsOther securities investments
                                        0.00               0      --                  0      --            0.00        0.00       --       --held at the period-end
                                   5,000,000                                                          4,012,728
    Total                                                             --                         --                                   --       --
                                          .00                                                               .75Disclosure date of the board
    announcement on approval of        25 Nov. 2010the securities investmentExplain shareholdings in other listed companies:N/A2. Wealth management entrustment, derivative investments and entrustment loans(1)Wealth management entrustmentN/A(2)Derivative investmentsN/A(3)Entrustment loansN/A3. Use of raised fundsN/A
                                                                                                                                           2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.4. Analysis to main subsidiaries and stock-participating companiesParticulars about main subsidiaries and stock-participating companies:
                                                                                                            Registered                                      Operating         Operating
                            Company                                                                                        Total assets     Net assets                                       Net profit
    Company name                             Industry            Main products/services                     capital (RMB                                   revenues (RMB      profit (RMB
                             variety                                                                                      (RMB Yuan)       (RMB Yuan)                                       (RMB Yuan)
                                                                                                              0,000)                                          Yuan)            Yuan)
    Foshan      Chansheng                                    Production       and       operation        of
    Electronic Ballast Co., Subsidiary       Manufacture     electronic       ballasts,          electronic BMB100             10,213,681.16   6,253,554.57    18,594,068.94     3,811,167.36   2,710,964.21
    Ltd.                                                     transformers and electronic igniters
    Foshan     Chanchang                                     Producer of lamps, electric lighting
    Electric    Appliances                                   products      and        related      fittings,
                         Subsidiary      Manufacture                                                       BMB7,278       103,252,116.40 88,436,907.17 140,261,693.67        3,033,200.29   2,265,442.82
    (Gaoming) Co., Ltd.                                      providing relevant installation and
                                                         consulting services
    Foshan Taimei Times                                      R&D, production and sales of
    Lamps Co., Ltd.                                          lamps, household appliances and
                         Subsidiary      Manufacture                                                       RMB50           90,477,186.22 27,469,840.94 234,707,971.12        9,331,439.44   6,982,921.26
                                                         fittings, and other electric lighting
                                                         products
    Nanjing         Fozhao                                   Production          of       energy-saving
    Lighting Components                                      lighting      products,       lamps       and
    Manufacturing     Co.,                                   lighting       equipments;            lighting
    Ltd.                     Subsidiary      Manufacture     projects; energy-saving technology RMB4,168.32                    94,444,575.95 71,981,604.34     53,720,493.84 -1,478,103.12 -7,013,581.50
                                                         development and production of
                                                         relevant       fittings;           sale     of
                                                         self-produced products
    Foshan        Lighting                                   R&D and production of lamps of
    Lamps Co., Ltd.                                          electric light source and related
                         Subsidiary      Manufacture                                                       RMB500           8,074,819.13   8,074,619.96               0.00      14,472.89      10,854.67
                                                         electrical,    metal       and      nonmetal
                                                         fittings
                                                                                                                                 2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    FSL         (Xinxiang)                                  Production and sale of equipments
    Lighting Co., Ltd.                                      and products of electric light source;
                                                        and sale of components of electric
                         Subsidiary      Manufacture                                                RMB1,000      9,962,216.19    6,826,418.09            0.00    -897,545.82 -1,797,545.82
                                                        light   source,     related    materials,
                                                        electrical    materials,      automobile
                                                        components, lamps and fittings
    Qinghai        Fozhao                                   Producing and selling lithium ion
    Lithium Ion Battery                                     battery cathode materials
                         Subsidiary      Manufacture                                                RMB5,000     39,438,451.91 30,787,408.50        106,963.17 -8,078,719.99 -8,096,442.18
    Cathode      MaterialsCo., Ltd.
    Guangdong      Fozhao                                   Financing lease, lease, lease
    Financing Lease Co.,                                    consulting and guaranty, financing
    Ltd.                                                    lease service for new-energy                                             206,474,444.5
                         Subsidiary      Finance                                                    RMB20,000   206,643,904.57                            0.00   5,528,994.65   4,261,123.43
                                                        automobiles & main components,                                                      3
                                                        energy-saving lighting products &
                                                        projects
    Guangdong      Fozhao                                   Production and sale of LED lighting
    New Light Sources                                       products      and      LED       lighting
                         Subsidiary      Manufacture                                                RMB22,200     8,615,110.17    8,615,110.17    2,819,494.42    -295,068.16    -223,689.97
    Technology Co., Ltd.                                    application       products;      lighting
                                                        product installationExplain particulars about main subsidiaries and stock-participating companies:N/A
                                                                       2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.√ Applicable □ Inapplicable
    Name of subsidiary                Purpose for acquiring or          Way of acquiring or disposing     Influence on the overall
                                  disposing the subsidiary in the   the subsidiary in the reporting   production and business
                                  reporting period                  period                            performance
    Foshan      Gaoming        Fuwan For capital inflow and focusing                                      An investment gain of RMB
                                                                    Equity transfer
    Landscape Resort Co., Ltd.        on electric light sources                                           192.29 million (before tax)5. Significant projects invested with non-raised fundsN/AVII. Entities controlled by the Company for special purposesN/AVIII. Outlook of the Company’s future development1. Trends in the sectorIt will become the main development trend in the lighting sector to gradually eliminate incandescentlamps and accelerate development of high-efficient lighting products featuring energy saving,environmental protection and low costs. Urbanization is speeding up. Traditional energy-savinglighting products will not be washed out in the short run due to their moderate prices, maturetechnologies and high quality. There is still a huge market space for traditional lighting products.However, traditional lighting products are incomparable with LED lighting products due to thelatter’s high efficiency and low energy consumption. LED lighting products will be the nextmainstream in the lighting sector because they accord with the policies of energy saving,environmental protection and living a green low-carbon life pursued by different countries.Currently, the gradual implementation of the government’s huge amounts of subsidies, proactivesupport from other industrial policies, decreasing product prices and fast technological innovationwill directly boost the domestic demand for LED lighting products.2. Opportunities and challenges for the Company(1) OpportunitiesRecent years have seen energy saving & emission reduction becoming a common goal of differentcountries in the world. Developed countries and regions started to prohibit incandescent lamps in2009. On 1 Nov. 2011, the Chinese government unveiled the “Public Notice on GraduallyProhibiting Import and Sale of General Service Incandescent Lamps”, deciding to carry out theimport and sale prohibition in stages according to the watt rates from 1 Oct. 2012. Therefore, there
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.will be good prospects for the traditional and LED lighting products. Growth of LED lightingproducts is expected to be faster in the coming two years. Upon enhancement of internal andexternal strength in the past year, the Company will, on the basis of sticking to its traditionallyadvantageous products, seize the opportunities brought by a rising demand for LED lightingapplication ends, input more for R&D, focus on developing the main business, expand the operatingrange and enrich its product range. Meanwhile, it will give full play to the advantages of sufficientself-owned funds, sound marketing channels and influential brands to rise to difficulties and pushproduction and operation to a new level.(2) ChallengesThe Company will face some difficulties in the production and operation in 2013. The domesticeconomic growth is expected to slow down, the influential real estate macro-control policy will becontinuously enhanced, and the unfavorable effects of the European debt crisis will continue.Although the U.S. has passed the severe financial crisis, its economy has not improved much,creating an unfavorable condition for export of the Company. Meanwhile, competition in thedomestic lighting sector becomes increasingly fierce, bringing down the average profit rate. And therising costs of labor and raw materials also bring down the earnings.3. Work plan for 2013(1) The Company will continue to optimize the product structure by inputting more effort fordeveloping LED lighting products.On the basis of maintaining its traditionally advantageous products, the Company will beef updevelopment of new products featuring energy saving, environmental protection and hightechnological contents. It will continue to increase input for LED lighting products in terms of R&D,production, sale, etc.; enrich the product range; and do a good job in technical renewal and reserve.It will also expand the LED workshops and increase the production capacity. Meanwhile, it willincrease input for marketing and build up various marketing channels. Through a series of measures,the Company will try to get a position in the market with its LED lighting products and lay a solidfoundation for its future development.(2) The Company will enhance brand and channel development and promote a sustainable andsteady expansion of its market share.The Company promotes its products by attending international or regional exhibitions with a highreputation and a significant influence. It will continue to carry out the brand strategy, constantlymake technical innovations and develop products with proprietary IPR. It will also ensure theproduct quality, properly increase advertising input and keep increasing the reputation andpopularity of its brands. In terms of channel development, it will maintain and enhance the existingchannels, help old customers with their development, properly add some new strong customers,beef up its layout for the third-and fourth-tier markets, decentralize distributor management,enhance market control and increase its influence in the retail and engineering channels.
                                                         2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.(3) The Company will improve its management capability to boost development.In 2013, the Company will adopt various measures to improve its internal management capabilityand reduce operating costs. It will optimize resource allocation, integrate marketing personnel,enhance performance appraisal to with a clear division of rights and responsibilities to motivate itsemployees. Through upgrading management, the Company will further ensure the fulfillment of itsoperating objectives.IX. Explanation of the Board of Directors concerning the “non-standard audit report” issuedby the CPAs firm for the reporting periodN/AX. Explain change of the accounting policy, accounting estimate and measurement methods ascompared with the financial reporting of last yearN/AXI. Explain retrospective restatement due to correction of significant accounting errors in thereporting periodN/AXII. Explain change of the consolidation scope as compared with the financial reporting oflast yearFoshan Gaoming Fuwan Landscape Resort Co., Ltd. was formerly a wholly‐owned subsidiary of theCompany incorporated in 2006, which was consolidated since its incorporation. In Oct. 2012, upon reviewand approval of its Shareholders’ General Meeting, the Company entrusted Fo Shan City Rong Xin AuctionCo., Ltd. to auction 100% equity interests of Foshan Gaoming Fuwan Landscape Resort Co., Ltd.. Accordingto the auction result, the said equity interests were transferred to Guangdong Tuanyi Investment Group Co.,Ltd. and Foshan Hongyi Property Investment Co., Ltd. at the consideration of RMB 317.05 million. All theconsideration was paid up in Nov. 2012 and the alteration of the registered information of Foshan GaomingFuwan Landscape Resort Co., Ltd. with the administration for industry and commerce was completed.Therefore, the base day for the transfer was 30 Nov. 2012. After the transfer, the Company has lost controlover Foshan Gaoming Fuwan Landscape Resort Co., Ltd. and thus deconsolidated it.XIII. Profit allocation and dividend distributionFormulation, execution or adjustment of the Company’s profit distribution policy, especially the cash dividendpolicy, during the reporting period:According to the CSRC Notice on Further Implementing Matters Related to Cash Dividend
                                                             2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Distribution of Listed Companies (Zheng-Jian-Fa [2012] No. 37) and the Guangdong CSRC Noticeon Further Implementing Regulations Related to Dividend Distribution of Listed Companies(Guang-Dong-Zheng-Jian [2012] No. 91), in order to further standardize the dividend mechanism,promote a scientific, sustained and stable dividend mechanism and protect legal rights and interestsof investors, in the reporting period, the Company convened a general meeting to revise thedividend-related contents in its Articles of Association and specify the dividend conditions, thelowest dividend ratio, the decision-making procedure, etc.. Meanwhile, it formulated theManagement Rules for Profit Distribution and the Return for Shareholder Plan for the ComingThree Years (2012-2014), specifying the arrangements and forms of dividends, the cash dividendplanning and the distribution intervals, which further improved the decision-making and supervisionprocedures for dividend distribution. According to the Company’s Articles of Association, the profitdistributed in cash shall not be less than 30% of the distributable profit achieved in the year.The Company’s preplans for profit distribution and turning capital reserve into share capital for the reportingperiod were in compliance with relevant rules such as the Company’s Articles of Association.The Company’s preplans or plans for profit distribution and turning capital reserve into share capital for the recentthree years (including the reporting year):For 2010, based on the total 978,563,745 shares of the Company as at 31 Dec. 2010, a cashdividend of RMB 2.5 (tax included and dividends for B-share holders paid in Hong Kong dollars)will be distributed for every 10 shares held by A-share and B-share holders, with the totaldistributed cash dividends reaching RMB 244,640,936.25.For 2011, based on the total 978,563,745 shares of the Company as at 31 Dec. 2011, a cashdividend of RMB 2.5 (tax included and dividends for B-share holders paid in Hong Kong dollars)will be distributed for every 10 shares held by A-share and B-share holders, with the totaldistributed cash dividends reaching RMB 244,640,936.25.For 2012, based on the total 978,563,745 shares of the Company as at 31 Dec. 2012, a cashdividend of RMB 3.1 (tax included and dividends for B-share holders paid in Hong Kong dollars)will be distributed for every 10 shares held by A-share and B-share holders, with the totaldistributed cash dividends reaching RMB 303,354,760.95. The profit allocation preplan shall becarried out upon review and approval of the Shareholders’ General Meeting of the Company.
                                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Cash dividend distribution of the Company over the recent three years:
                                                                                                                       Unit: RMB Yuan
                                                                                                         Ratio the amount of cash
                                                                         Net profit attributable to
                                                                                                         dividend to the net profit
                                      Amount of cash dividend        shareholders of the Company in
              Year                                                                                     attributable to shareholders of
                                            (tax included)            the consolidated statement for
                                                                                                            the Company in the
                                                                                 the year
                                                                                                        consolidated statement (%)
    2012                                                303,354,760.95                    400,466,745.11                           75.75%
    2011                                                244,640,936.25                    291,660,093.73                           83.88%
    2010                                                244,640,936.25                    263,776,242.98                           92.75%The Company (including its subsidiaries) made profit in the reporting period and the retained profit of the Company (withoutsubsidiaries) was positive, but it did not put forward a preplan for cash dividend distribution:□ Applicable √ InapplicableIX. Social responsibilitiesThe Company has always attached importance to the accomplishment of its social value. With“provide returns for shareholders, provide a platform for employees, create value for customers andcreate prosperity for the society” as its task, the Company proactively protects legal rights andinterests of its employees and creditors; treats suppliers, customers and consumers in an honest way;and proactively promotes environmental protection, resource conservation & recycling, etc..Meanwhile, it takes part in charity and public service activities, boosts the local economy with itsown development and promotes coordinative and harmonious development between the Companyand the society, the community and the nature.During the reporting period, the Company enhanced R&D, promotion and sale ofenvironment-friendly and energy-saving products. It passed the ISO14001 environmentalmanagement system certification. Meanwhile, the headquarters of the Company also smoothlypassed the voluntary examination for a clean production site, making its own contribution to energysaving and emission reduction. It prepare to distribute cash dividends of RMB 303,354,760.95 (taxincluded) to its shareholders, accounting for 75.75% of the net profit attributable to shareholders ofthe Company in the consolidated statements for the reporting period, which effectively safeguardedthe interests of its shareholders. It also fulfilled the safe production objectives for the year, makingits own contribution to social safety.
                                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.XV. Particulars about researches, visits and interviews received in this reporting period
                                                                                                         Main discussion and
    Time of reception   Place of reception    Way of reception       Visitor type          Visitor        materials provided by the
                                                                                                               Company
    3 Feb. 2012          The Company          Field research      Institution         Founder Securities Operation of the Company
    23 May 2012          The Company          Field research      Institution         Guosen Securities   Operation of the Company
                                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                             Section V. Significant EventsI. Significant lawsuit or arbitration□ Applicable √ InapplicableThere was no significant lawsuit or arbitration during the reporting period.Media’s questions√Applicable □Inapplicable
    Explanation on media’s questions                               Disclosure date                           Disclosure index
                                                                                                Name of announcement: Announcement on
                                                                                                Explanation for the Report of the Media on
                                                                                                the Company’s Related-party Relationship
                                                     13 Jul. 2012
                                                                                                & Related-party Transactions;
                                                                                                Announcement No.: 2012-031; Disclosure
                                                                                                index: http://www.cninfo.com.cn/
    In Jul. 2012, after the Company had                                                             Name of announcement: Announcement on
    disclosed      the     relevant      related-party                                              the Company’s Related-party Relationship
    transactions as a supplementation, the                                                          with Foshan Nanhai Bright Electrical
    media still doubted that the Company                                                            Appliance Co., Ltd. and Other Enterprises
    might have related-party relation and                                                           & Routine Related-party Transactions with
    transactions         with    other       relevant                                               Them for 2009-2011, Announcement on
    corporations and these events had not been                                                      Explanation        about        Related-party
    reviewed by the board or the general                                                            Relationship and Transaction Arising from
                                                     2 Aug. 2012
    meeting and disclosed.                                                                          Jointly Contributing and Incorporating in
                                                                                                2009 Foshan Lighting Lamps Co., Ltd.
                                                                                                with    Shanghai      Liangqi      Electrical
                                                                                                Appliance Co., Ltd. and Foshan Hongbang
                                                                                                Electrical and Lighting Co., Ltd. & Equity
                                                                                                Transfer; Announcement No.: 2012-037,
                                                                                                2012-038;          Disclosure         index:
                                                                                                http://www.cninfo.com.cn/II. Particulars about non-operating occupation of funds of the Company by the controllingshareholder and the related partiesThere was no non-operating occupation of funds of the Company by the controlling shareholder andthe related partiesIII. Asset transactions1. Acquisition of assetsInapplicable
                                                                                                                                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.2. Sale of assets
                                                                                Ratio of
                                              Net profit       Gains and         the net                                         Relationship
                                                                                                                                                    Whether or      Whether or not
                                            contributed to      losses           profit                                          between the
                                 Transact                                                                                                                not the     the creditor’s
                                            the Company         arising        contribute                                      transaction party
    Transact                           ion                                                                         Related-part                        ownership of           right and
               Asset   Disposa                from the         from the         d by the          Pricing                          and the                                               Disclosure
    ion                             price                                                                        y transaction                            the asset         liabilities                    Disclosure index
                sold    l date              period-begin        sales of        asset to         principle                        Company                                                   date
    party                           (RMB                                                                               or not                         involved has      involved have
                                                to the          assets             the                                          (applicable for
                                 0’000)                                                                                                             been fully          been fully
                                            disposal date       (RMB           Company                                           related-party
                                                                                                                                                    transferred          transferred
                                            (RMB 0’000)        0’000)        to the total                                      transactions)
                                                                               profit (%))
                                                                                                                                                                                                      Name of
           18.5%
                                                                                                                                                                                                      announcement:
           equity
    Shenzhe                                                                                                                                                                                               Announcement on
           of
    n Meilu                                                                                                                                                                                               Transferring the
           Shenzhe                                                                             With the
    Trade                                                                                                                                                                                                 Equity of Shenzhen
           n           28 Jun.                                                                 assessment
    Develop                            2,220                   0               0             0%                   No              Inapplicable        No               No                  29 Jun. 2012 Liangke Venture
           Liangke 2012                                                                        result as the
    ment                                                                                                                                                                                                  Capital Co., Ltd.;
           Venture                                                                             pricing base
    Co.,                                                                                                                                                                                                  Announcement No.:
           Capital
    Ltd.                                                                                                                                                                                                  2012-018; Disclosure
           Co.,
                                                                                                                                                                                                      website:
           Ltd.
                                                                                                                                                                                                      www.cninfo.com.cn
    Guangd 100%                                                                                                                                                                                           Name of
                                                                                               With the
    ong        equity                                                                                                                                                                                     announcement:
                       30 Oct.                                                                 assessment
    Tuanyi of                         31,705          -358.90 19,229.11               34.62%                      No              Inapplicable        Yes              Yes                 1 Nov. 2012 Announcement on
                       2012                                                                    result as the
    Investm Foshan                                                                                                                                                                                        Progress Regarding
                                                                                               pricing base
    ent        Gaomin                                                                                                                                                                                     Transferring the
                                                                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Group      g Fuwan                                                                                                                                  Equity of Foshan
    Limited, Landsca                                                                                                                                    Gaoming Fuwan
    Foshan pe                                                                                                                                           Landscape Resort Co.,
    Hongyi Resort                                                                                                                                       Ltd. by Way of Public
    Property Co.,                                                                                                                                       Auction;
    Investm Ltd.                                                                                                                                        Announcement No.:
    ent Co.,                                                                                                                                            2012-064; Disclosure
    Ltd.                                                                                                                                                website:
                                                                                                                                                    www.cninfo.com.cnNotes to the sale of assets:(1) On 28 Jun. 2012, the 18th Session of the 6th Board of Directors was convened, at which the “Proposal on Transferring Equities of Shenzhen Liangke VentureCapital Co., Ltd.” was reviewed and approved. In the afternoon of 28 Jun. 2012, the Company signed the “Equity Transfer Agreement” with Shenzhen Meilu TradeDevelopment Co., Ltd., transferring the 18.5% equity interests of Shenzhen Liangke Venture Capital Co., Ltd. to the latter at the price of RMB 22.20 million.However, due to the transferee Shenzhen Meilu Trade Development Co., Ltd. hasn’t paid the equity transfer payment totally, the Company’s 18.5% equity held inShenzhen Liangke Venture Capital Co., Ltd. hasn’t been transferred to it. Up to 6 Feb. 2013, the transferee had paid RMB 8.50 million for the equity transfer and itpromised to pay the rest, interest and overdue fine before 15 Jun. 2013. It won’t cause any negative influence on the continuity of business and stability of themanagement level for the Company from the sales of 18.5% equity interests held in Shenzhen Liangke Venture Capital Co., Ltd.(2) The Company convened the 22nd Session of the 6th Board of Directors on 16 Aug. 2012, at which reviewed and approved the Proposal on Transferring the Equityof Foshan Gaoming Fuwan Landscape Resort Co., Ltd. by Way of Public Auction; on 30 Oct. 2012, the Company entrusted Foshan City Rongxin Auction Co., Ltd.to put up 100% equity of Foshan Gaoming Fuwan Landscape Resort Co., Ltd. for auction, as a result, Guangdong Tuanyi Investment Group Limited and FoshanHongyi Property Investment Co., Ltd. successfully acquired 100% equity of Foshan Gaoming Fuwan Landscape Resort Co., Ltd. with the price of RMB 0.31705billion; After receiving the equity transfer payment of RMB 0.31705 billion, the Company completed the equity transfer on 18 Nov. 2012. It won’t cause anynegative influence on the continuity of business and stability of the management level for the Company from the sales of 100% equity of Foshan Gaoming FuwanLandscape Resort Co., Ltd..
                                                                                                                                       2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.IV. Significant related-party transactions1. Related-party transactions relevant to routine operation
                                                                                                                              Proportion
                                                                               Pricing principle Transactio                                     Settlement
                                           Type of the       Content of the                                    Transaction in same kind                        Market price
                                                                                    of the        n price                                     method of the                   Disclosure     Disclosure
    Related party        Relationship         related-party       related-party                                   amount (RMB         of                              (RMB
                                                                                related-party     (RMB                                         related-party                       date        index
                                           transaction        transaction                                        0’000)      transactions                       0’000)
                                                                                 transaction      0’000)                                      transaction
                                                                                                                                  (%)
    Prosperity        A company           Purchasing products
    Electrical        controlled by the   and receiving labor Purchase of                                                                                                                      http://www.cni
                                                                              Market price      162.82               162.82         0.12% Remittance           162.82         2012.4.25
    (China) Co.,      related natural     service from the      materials                                                                                                                      nfo.com.cn
    Ltd.              person              related partiesHangzhou
                  A company           Purchasing productsTimes
                  controlled by the   and receiving labor Purchase of                                                                                                         Inapplicab
    Lighting and                                                                  Market price      3.25                   3.25              0% Remittance         3.25                        Inapplicable
                  related natural     service from the      materials                                                                                                         leElectrical Co.,
                  person              related partiesLtd.Foshan
                  A company           Purchasing productsHongbang
                  affected by the     and receiving labor Purchase of                                                                                                                      http://www.cni
    Electrical &                                                                  Market price      2.37                   2.37              0% Cheque             2.37           212.8.29
                  related natural     service from the      materials                                                                                                                      nfo.com.cnLighting Co.,
                  person              related partiesLtd.Foshan
    Nanhai            A company           Purchasing products
    Guangming         controlled by the   and receiving labor Purchase of                                                                                                                      http://www.cni
                                                                              Market price      399.29               399.29         0.29% Cheque               399.29         212.8.29
    Electric          related natural     service from the      materials                                                                                                                      nfo.com.cn
    Appliance         person              related partiesCo., Ltd.
                                                                                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Foshan           A company           Purchasing products
    Feidelun         affected by the     and receiving labor Purchase of                                                                                        http://www.cni
                                                                        Market price   893.23     893.23    0.66% Cheque           893.23       212.8.29
    Electric Co.,    related natural     service from the       materials                                                                                       nfo.com.cn
    Ltd.             person              related partiesXiamen
                 A company           Purchasing productsJiandawei
                 controlled by the   and receiving labor Purchase of                                                                                        http://www.cni
    Optoelectronic                                                          Market price   207.27     207.27    0.15% Remittance       207.27       212.8.29
                 related natural     service from the       materials                                                                                       nfo.com.cns Technology
                 person              related partiesCo., LtdNanjing
    Kaixiang         A company           Purchasing products
    Electric         affected by the     and receiving labor Purchase of                                                                                        http://www.cni
                                                                        Market price   309.90      309.9    0.23% Remittance       309.90       212.8.29
    Lighting         related natural     service from the       materials                                                                                       nfo.com.cn
    Source Co.,      person              related partiesLtd.
    Swanki           A company           Purchasing products
    (Foshan)         controlled by the   and receiving labor Purchase of                                                                                        http://www.cni
                                                                        Market price   3.22         3.22      0% Cheque            3.22         212.8.29
    Electric         related natural     service from the       materials                                                                                       nfo.com.cn
    Corporation      person              related parties
    Zlamp            A company           Purchasing products
    (Foshan)         controlled by the   and receiving labor Purchase of                                                                                        http://www.cni
                                                                        Market price   18.60        18.6    0.01% Cheque           18.60        212.8.29
    Enterprise       related natural     service from the       materials                                                                                       nfo.com.cn
    Co., Ltd.        person              related parties
    Prosperity       A shareholder       Selling products and
    Lamps &          holding over 5%     providing labor        Sales of                                                                                        http://www.cni
                                                                        Market price   5,625.70   5,625.7   2.55% Remittance       5,625.70     2012.4.25
    Components       equity of the       service to the related products                                                                                        nfo.com.cn
    Limited          Company             parties
    Prosperity       A company           Selling products and Sales of      Market price   498.13     498.13    0.23% Remittance       498.13       2012.4.25 http://www.cni
                                                                                                             2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    (Hangzhou)      controlled by the   providing labor          products                                                                                        nfo.com.cn
    Lighting and    related natural     service to the related
    Electrical Co., person              partiesLtd.
    Prosperity      A company           Selling products and
    Electrical      controlled by the   providing labor          Sales of                                                                                        http://www.cni
                                                                        Market price   151.39      151.39    0.07% Remittance       151.39       2012.4.25
    (China) Co.,    related natural     service to the related products                                                                                          nfo.com.cn
    Ltd.            person              parties
    OSRAM           A company           Selling products and
    (China)         affected by the     providing labor          Sales of                                                                                        http://www.cni
                                                                        Market price   1,354.72   1,354.72   0.62% Remittance       1,354.72     2012.4.25
    Lighting Co., related natural       service to the related products                                                                                          nfo.com.cn
    Ltd.            person              partiesFoshan
                A company           Selling products andHongbang
                affected by the     providing labor          Sales of                                                                                        http://www.cni
    Electrical &                                                            Market price   504.95      504.95    0.23% Cheque           504.95       212.8.29
                related natural     service to the related products                                                                                          nfo.com.cnLighting Co.,
                person              partiesLtd.
    Foshan          A company           Selling products and
    Feidelun        affected by the     providing labor          Sales of                                                                                        http://www.cni
                                                                        Market price   548.80       548.8    0.25% Cheque           548.80       212.8.29
    Electric Co.,   related natural     service to the related products                                                                                          nfo.com.cn
    Ltd.            person              partiesNanjing
    Kaixiang        A company           Selling products and
    Electric        affected by the     providing labor          Sales of                                                                                        http://www.cni
                                                                        Market price   198.30       198.3    0.09% Remittance       198.30       212.8.29
    Lighting        related natural     service to the related products                                                                                          nfo.com.cn
    Source Co.,     person              partiesLtd.
    Swanki          A company           Selling products and Sales of       Market price   113.72      113.72    0.05% Cheque           113.72       212.8.29    http://www.cni
                                                                                                             2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    (Foshan)          controlled by the   providing labor          products                                                                                      nfo.com.cn
    Electric          related natural     service to the related
    Corporation       person              parties
    Zlamp             A company           Selling products and
    (Foshan)          controlled by the   providing labor          Sales of                                                                                      http://www.cni
                                                                            Market price   136.62   136.62   0.06% Cheque           136.62       212.8.29
    Enterprise        related natural     service to the related products                                                                                        nfo.com.cn
    Co., Ltd.         person              partiesHaolinLighting &
                  A company           Selling products andElectrical
                  affected by the     providing labor          Sales of                                                                                      http://www.cni
    Department of                                                               Market price   17.14     17.14   0.01% Cheque           17.14        212.8.29
                  related natural     service to the related products                                                                                        nfo.com.cnFoshan
                  person              partiesChanchengDistrictFoshan
                  A company           Selling products andGaoming
                  affected by the     providing labor          Sales of                                                                                      http://www.cni
    District Shijia                                                             Market price   26.53     26.53   0.01% Cheque           26.53        212.8.29
                  related natural     service to the related products                                                                                        nfo.com.cnLighting Co.,
                  person              partiesLtd.
    Prosperity        A shareholder       Purchasing products
    Lamps &           holding over 5%     and receiving labor Purchase of                                                                                        http://www.cni
                                                                            Market price   176.56   176.56   6.63% Remittance       176.56       2012.4.25
    Components        equity of the       service from the         equipments                                                                                    nfo.com.cn
    Limited           Company             related partiesProsperity
                  A company           Purchasing products(Xinxiang)
                  controlled by the   and receiving labor Purchase of                                                                                        http://www.cni
    Electro-Optica                                                              Market price   14.87     14.87   0.56% Remittance       14.87        2012.4.25
                  related natural     service from the         equipments                                                                                    nfo.com.cnl Machinery
                  person              related partiesCo., Ltd
                                                                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Prosperity
                 A company           Purchasing products(Xinxiang)
                 controlled by the   and receiving labor Purchase of                                                                                           http://www.cni
    Lighting                                                                    Market price   3.27       3.27    0.12% Remittance       3.27         2012.4.25
                 related natural     service from the       equipments                                                                                         nfo.com.cnMachinery
                 person              related partiesCo., Ltd.Guangdong
                                     Selling products andFozhao
                 Associated          providing labor        Collection of                                                                         Inapplicab
    Guoxuan                                                                     Market price   120.01   120.01   33.04% Cheque           120.01                    Inapplicable
                 enterprise          service to the related rent                                                                                  lePower Energy
                                     partiesCo., Ltd.
    Foshan           A company           Selling products and
    Feidelun         affected by the     providing labor        Collection of                                                                                      http://www.cni
                                                                            Market price   22.69     22.69    6.25% Cheque           22.69        212.8.29
    Electric Co.,    related natural     service to the related rent                                                                                               nfo.com.cn
    Ltd.             person              partiesFoshanGaomingDistrict
                 A company           Selling products andRuibeike
                 affected by the     providing labor        Collection of                                                                                      http://www.cni
    Electric                                                                    Market price   43.60      43.6   12.01% Cheque           43.60        212.8.29
                 related natural     service to the related rent                                                                                               nfo.com.cnLighting
                 person              partiesSourceMaterials Co.,Ltd.
    Swanki           A company           Selling products and
    (Foshan)         controlled by the   providing labor        Collection of                                                                                      http://www.cni
                                                                            Market price   1.66       1.66    0.46% Cheque           1.66         212.8.29
    Electric         related natural     service to the related rent                                                                                               nfo.com.cn
    Corporation      person              parties
    Guangdong        Associated          Selling products and Collection of     Market price   6.52       6.52    4.86% Cheque           6.52         Inapplicab Inapplicable
                                                                                                                               2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Fozhao           enterprise          providing labor          water &                                                                                               le
    Guoxuan                              service to the related electricity fee
    Power Energy                         partiesCo., Ltd.
    Foshan           A company           Selling products and
                                                              Collection of
    Feidelun         affected by the     providing labor                                                                                                                           http://www.cni
                                                              water &           Market price   22.10              22.1       16.49% Cheque            22.10         212.8.29
    Electric Co.,    related natural     service to the related                                                                                                                    nfo.com.cn
                                                              electricity fee
    Ltd.             person              partiesFoshanGaomingDistrict
                 A company           Selling products and
    Ruibeike                                                      Collection of
                 affected by the     providing labor                                                                                                                           http://www.cni
    Electric                                                      water &           Market price   12.60              12.6         9.4% Cheque            12.60         212.8.29
                 related natural     service to the related                                                                                                                    nfo.com.cn
    Lighting                                                      electricity fee
                 person              partiesSourceMaterials Co.,Ltd.
    Swanki           A company           Selling products and
                                                              Collection of
    (Foshan)         controlled by the   providing labor                                                                                                                           http://www.cni
                                                              water &           Market price   2.27               2.27        1.69% Cheque            2.27          212.8.29
    Electric         related natural     service to the related                                                                                                                    nfo.com.cn
                                                              electricity fee
    Corporation      person              parties
    Zlamp            A company           Selling products and
                                                              Collection of
    (Foshan)         controlled by the   providing labor                                                                                                                           http://www.cni
                                                              water &           Market price   3.56               3.56        2.66% Cheque            3.56          212.8.29
    Enterprise       related natural     service to the related                                                                                                                    nfo.com.cn
                                                              electricity fee
    Co., Ltd.        person              parties
    Total                                                                                    --           --     11,605.66       3.23%          --               --         --           --
    Details of large amount of sales returns                                        NaughtNecessity and continuity of related-party transaction as well as reason of Due to the Company needed stable supply of good raw materials for its production, such related-party transaction was
                                                                                                                                  2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.choosing the related party (but not other transaction parties) to conduct necessary and will exist within a long-term period.
    the said transaction                                                      The Company’s partial products were sold through the related parties, which would drive the expansion of the
                                                                          production scale of the Company to a certain extent, so it belonged to the continuous related-party transactions and
                                                                          would exist within a long-term period.
                                                                          The Company’s routine related-party transactions with the related parties had no influence on the independency of theImpacts of related-party transaction on independency of the Company
                                                                          Company, so the Company’s main business wouldn’t form the reliance on or be controlled by the related parties.Dependant degree of the Company on related party and relevant solutions The Company’s related-party business with the related parties occupied a small proportion in the amount of the same
    for the dependence (if any)                                               kind of business, so its main business wouldn’t form the reliance on or be controlled by the related parties.
                                                                          In Apr. 2012, the Company predicted the total amount of routine related-party transactions with the related parties of
                                                                          OSRAM (China) Lighting Co., Ltd., Prosperity Lamps & Components Limited, Prosperity Electrical (China) Co.,
                                                                          Ltd., Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. and Prosperity (Xinxiang) Lighting Machinery Co., Ltd.,As for the prediction on the total amount of routine related-party and in the purchase from related parties, the actual amount occurred in 2012 decreased by 88.2% over that predictedtransactions to be occurred in the reporting period by relevant types, the for 2012, which was mainly due to the Company decreased the purchasing amount of partial raw materials from the
    actual performance in the reporting period (if any)                       related parties under the influence of the overall economic environment, and also purchased partial raw materials from
                                                                          the new suppliers; in the sales to the related parties, the actual amount occurred in 2012 decreased by 27.3% over that
                                                                          predicted for 2012, which was mainly due to the sales amount decreased under the influence of the overseas economic
                                                                          environment.Reason for significant difference between the transaction price and the
                                                                          Naughtmarket priceNote:During the reporting period, the Company found that its related-party transactions occurred with its partial related parties (including Swanki (Foshan) ElectricCorporation, Zlamp (Foshan) Enterprise Co., Ltd., Foshan Nanhai Guangming Electric Appliance Co., Ltd., Foshan Hongbang Electrical & Lighting Co., Ltd.,Foshan Feidelun Electric Co., Ltd., Xiamen Jiandawei Optoelectronics Technology Co., Ltd, Nanjing Kaixiang Electric Lighting Source Co., Ltd., Haolin Lighting &Electrical Department of Foshan Chancheng District and Foshan Gaoming District Shijia Lighting Co., Ltd.) were not in its statistics of prediction for the routinerelated-party transactions after check, and on 29 Aug. 2012, it supplemented to disclose the routine related-party transactions occurred with the above related partiesfrom Jan. to Aug. 2012
                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.2. Related-party transactions regarding purchase and sales of assetsInapplicable3. Significant related-party transitions with joint investmentsInapplicable4. Credits and liabilities with related partiesWas there any non-operating credit or liability with any related party?□ Yes √ No5. Other significant related-party transactionsDuring the reporting period, the Company disclosed the significant related-party transactionsoccurred in previous period but not yet disclosed as follows:(1) In 2009, the Company made an investment of RMB 29.23 million to incorporate QinghaiFozhao Lithium Energy Exploitation Co., Ltd. with its related party (Hong Kong) Qinghai TianjiRare Elements Technology Development Co., Ltd. and two other companies.(2) In 2010, the Company made an investment of RMB 25.50 million to incorporate QinghaiFozhao Lithium Ion Battery Cathode Materials Co., Ltd. with its related party Qinghai Weili NewEnergy Materials Co., Ltd. and three other companies.(3) In 2009, the Company invested RMB 3 million to jointly incorporate Foshan Lighting LampsCo., Ltd. with the related parties of Shanghai Liangqi Electrical Appliance Co., Ltd. and FoshanHongbang Electrical and Lighting Co., Ltd. and other four enterprises, and the Company held 60%equity of Foshan Lighting Lamps Co., Ltd. at that time. Then, the Company successively acquiredall the equity of other six shareholders, therefore, Foshan Lighting Lamps Co., Ltd. is thewholly-funded subsidiary of the Company now.(4) In 2010, the Company’s shareholding company—Qinghai Fozhao Lithium Energy ExploitationCo., Ltd. contributed RMB 55.5 million (including RMB 27.75 million paid by cash and RMB27.75 million paid by the appraised value of patented technology) to jointly invest on Qinghai SaltLake Fozhao Lanke Lithium Industry Co., Ltd. with its related enterprise—Qinghai Power NewEnergy Material Co., Ltd..(5) The Company’s shareholding company—Qinghai Fozhao Lithium Energy Exploitation Co., Ltd.
                                                                             2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.provided a total amount of loans as RMB 8,325,470.60 to its related enterprise of Qinghai Salt LakeFozhao Lanke Lithium Industry Co., Ltd. for two times in 2010 and 2011 respectively, and theabove loans had been repaid on 1 Apr. 2011.(6) The Company’s controlled subsidiary—Qinghai Fozhao Lithium Ion Battery Cathode MaterialsCo., Ltd. provided a loan of RMB 25 million to its related enterprise of Qinghai Fozhao LithiumEnergy Exploitation Co., Ltd. in 2011, and the interest and principal of the above loan had beenrepaid to Qinghai Fozhao Lithium Ion Battery Cathode Materials Co., Ltd. on 2 Apr. 2011.(7) In 2010, the Company contributed RMB 0.16 billion to jointly invest on Hefei GuoxuanHigh-tech Power Energy Co., Ltd. with its related enterprise of Qinghai Power New EnergyMaterial Co., Ltd..The website to disclose the interim announcements on significant related-party transactions
                                                           Disclosure date of the interim
        Name of the interim announcement                                                    Website to disclose the interim announcement
                                                                  announcementAnnouncement on Explaining the Relationshipand Related-party Transaction with (Hong
    Kong)      Qinghai     Tianji     Rare       Elements
    Technology Development Co., Ltd. Jointly 13 Jul. 2012                                       www.cninfo.com.cnIncorporating Qinghai Fozhao Lithium EnergyExploitation Co., Ltd. with the Company in2009.Announcement on Explaining the Relationshipand Related-party Transaction with QinghaiWeili New Energy Materials Co., Ltd. Jointly
                                                        13 Jul. 2012                        www.cninfo.com.cnIncorporating Qinghai Fozhao Lithium IonBattery Cathode Materials Co., Ltd. with theCompany in 2010.
    Announcement          on       Explanation      aboutRelated-party Relationship and Transaction
    Arising     from     Jointly     Contributing    andIncorporating in 2009 Foshan Lighting Lamps
                                                        2 Aug. 2012                         www.cninfo.com.cnCo., Ltd. with Shanghai Liangqi ElectricalAppliance Co., Ltd. and Foshan HongbangElectrical and Lighting Co., Ltd. & EquityTransfer
    Announcement          on       Explanation      about
    Related-party Relationship and Transaction 2 Aug. 2012                                      www.cninfo.com.cnArising from the Company’s Shareholding
                                                                  2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Company as Qinghai Fozhao Lithium EnergyExploitation Co., Ltd. Jointly Investing in2010 on Qinghai Salt Lake Fozhao LankeLithium Industry Co., Ltd. with QinghaiPower New Energy Co., Ltd.
    Announcement         on    Explanation      aboutRelated-party Relationship and TransactionArising from the Company’s ShareholdingCompany as Qinghai Fozhao Lithium Energy
                                                    2 Aug. 2012                 www.cninfo.com.cnExploitation Co., Ltd. Providing Loans toQinghai Salt Lake Fozhao Lanke Lithium
    Industry   Co.,   Ltd.    in   2010   and   2011Respectively
    Announcement         on    Explanation      aboutRelated-party Relationship and TransactionArising from the Company’s Controlled
    Subsidiary as Qinghai Fozhao Lithium Ion 2 Aug. 2012                            www.cninfo.com.cnBattery Cathode Materials Co., Ltd. Providinga Loan of RMB 25 million to Qinghai FozhaoLithium Energy Exploitation Co., Ltd. in 2011
    Announcement         on    Explanation      aboutRelated-party Relationship and TransactionArising from the Company Jointly Investing
                                                    9 Oct. 2012                 www.cninfo.com.cnon Hefei Guoxuan High-tech Power EnergyCo., Ltd. with Qinghai Power New EnergyMaterial Co., Ltd.V. Significant contracts and execution1. Particulars about trusteeship, contract and leaseThere was no significant trusteeship, contract or lease for the Company during the reporting period.2. Guarantees provided by the CompanyDuring the reporting period, there were no external guarantees or guarantees for subsidiariesprovided by the Company.3. Other significant contractsNaught
                                                                           2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.VI.Performance of commitments1. Commitments made by the Company or shareholders holding over 5% of the Company’sshares in the reporting period, or such commitments carried down into the reporting periodNaught2. The Company’s assets or projects exist profitable prediction and the reporting period is insuch prediction period, it states the profits from the assets or projects reaching originalprediction and relevant reasonsDuring the reporting period, the Company didn’t make any profitable prediction and the reportingperiod wasn’t in such prediction periodVII. Particulars about engagement and disengagement of CPAs firmCPAs firm engaged at present
    Name of domestic CPAs firm                             GP Certified Public AccountantsRemuneration of domestic CPAs firm (RMB 0’000) 72Consecutive years of the audit services provided by
                                                       20domestic CPAs firmName of the certified public accountants from the
                                                       Wang Shaohua, Chen Danyandomestic CPAs firmReengage the CPAs firm at current period or not?□ Yes √ NoParticulars on engaging the audit firm for the internal control, financial adviser or sponsor□Applicable √InapplicableVIII. Punishment and rectification
                                                            Punishment type
                                                                                  Conclusion(if
       Name              Type             Reason                 for the                                 Disclosure date   Disclosure index
                                                                                       any)
                                                              investigation
                                     On 4 Jul. 2012,                                                                       Name of
                                     the Company                                                                           announcement:
                                     received the                                                                          Announcement
                                                                                 Rectification
    Foshan Electrical                    “Decision on                                                                         on Receiving an
                                                            Administrative       measures        have
    and Lighting Co., Company            Ordering Foshan                                                    6 Jul. 2012        Administrative
                                                            regulation           been taken.
    Ltd.                                 Electrical and                                                                        Regulatory
                                     Lighting Co., Ltd.                                                                    Measure Decision
                                     to Take                                                                               of Guangdong
                                     Rectification                                                                         CSRC Bureau;
                                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                        Measures ([2012]                                                                   Announcement
                                        No. 9)” issued by                                                                 No.: 2012-024;
                                        Guangdong                                                                          disclosure
                                        CSRC.                                                                              website:
                                                                                                                           www.cninfo.com.
                                                                                                                           cn
                                                                                                                           Name of
                                                                                                                           announcement:
                                        On 4 Jul. 2012,
                                                                                                                           Announcement
                                        the        Company
                                                                                                                           on Receiving an
                                        received        the
                                                                                                                           Administrative
                                        “Decision        on
                                                                                                                           Regulatory
                                        Ordering      Zhong                         Rectification
                    Director and                                                                                           Measure Decision
                                        Xincai to Make a Administrative             measures        have
    Zhong Xincai        concurrent senior                                                                      6 Jul. 2012     of Guangdong
                                        Public                 regulation           been taken.
                    management staff                                                                                       CSRC Bureau;
                                        Explanation
                                                                                                                           Announcement
                                        ([2012] No. 10)”
                                                                                                                           No.: 2012-025;
                                        issued            by
                                                                                                                           disclosure
                                        Guangdong
                                                                                                                           website:
                                        CSRC.
                                                                                                                           www.cninfo.com.
                                                                                                                           cn
                                                                                                                           Name of
                                                                                                                           announcement:
                                                                                                                           Announcement
                                                                                                                           on the Company’s
                                                                                                                           Senior
                                                                                                                           Management
                                                                                                                           Staff Receiving
                                        Trading the                                 CSRC charged a
                                                               Administrative                                              the
                    Senior              stocks by using                             fine of RMB
    Zou Jianping                                                   punishment from                             24 Sept. 2012   Administrative
                    management staff inside                                         100,000 for Zou
                                                               CSRC                                                        Punishment from
                                        information                                 Jianping
                                                                                                                           CSRC;
                                                                                                                           Announcement
                                                                                                                           No.: 2012-052;
                                                                                                                           Disclosure
                                                                                                                           website:
                                                                                                                           www.cninfo.com.
                                                                                                                           cn
                                        Involved in                                 On 6 Mar. 2013,                        Name of
    Foshan Electrical                       illegal and            Initiated an         CSRC                                   announcement:
    and Lighting Co., Company               incompliant            investigation by     Guangdong              5 Nov. 2012     Announcement
    Ltd.                                    information            CSRC                 Bureau issued the                      on Significant
                                        disclosure                                  Written Decision                       Events;
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                          on Administrative                   Announcement
                                                          Punishment, at                      No.: 2012-065;
                                                          which ordering                      Disclosure
                                                          the Company to                      website:
                                                          rectify and giving                  www.cninfo.com.
                                                          the warnings as                     cn
                                                          well as imposing
                                                          a fine of RMB
                                                          400,000; giving a
                                                          warning to Zhong
                                                          Xincai and
                                                          imposing a fine
                                                          of RMB 150,000;
                                                          giving a warning
                                                          to Zou Jianping
                                                          and imposing a
                                                          fine of RMB
                                                          100,000;giving
                                                          warnings to Liu
                                                          Xingming and
                                                          Zhao Yong and
                                                          imposing the fine
                                                          of RMB 30,000
                                                          respectively;and
                                                          giving warnings
                                                          to Xie Qing and
                                                          Wei Bin.Explanation on the rectification:As for the Written Decision of CSRC Guangdong Bureau on Administrative Regulatory Measures(2012) No. 9— Decision on Ordering Foshan Electrical and Lighting Co., Ltd. to AdoptRectification Measures and Notification of Investigation from CSRC (YZDCT Zi No. 12081), theCompany has supplemented to disclose relevant announcements on 13 Jul. 2012 and 2 Aug. 2012respectively. Meanwhile, it engaged the Shenzhen Branch of Allbright Law Offices (hereinafterreferred to as “Allbright Law Offices”) as the special legal advisor on the rectification &standardization of the related-party transactions & information disclosure of the Company, andengaged GP Certified Public Accountants (hereinafter referred to as “GP”) to check the authenticityand fairness of transactions regarding the Company selling products to and purchasing goods fromas well as paying processing fee to the related parties, and GP issued the Report on ExecutingAgreed Proceedings for relevant Transaction Facts of Foshan Electrical and Lighting Co., Ltd. .
                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.The Company paid special attention to such events after their occurrence, and in order to preventsuch events from happening again, it learned lessons from the case and adopted the measures asfollows:1. It reinforced the construction of internal control especially financial management on itscontrolled subsidiaries and important shareholding companies, and established the effective controlmechanism for them.2. It perfected the system on registration & update for related parties and reinforced themanagement on the files of related parties as well as combed relevant information, so as to clearlydefine the detailed information of the related parties of the Company and update it timely, andfurther ensure the authenticity, accuracy and completeness of the information of related parties.3. It conducted special training on current directors, supervisors and senior management staffs ofthe Company, so as to make them systematically know the content of securities laws, rules andstandardized documents, and get familiar with the basic knowledge of securities market, as well asstrengthen the awareness of standardized operation.After implementing the above rectification measures, the Company has strengthened its awarenessand level of standardized operation, perfected the construction of internal control and enhanced thequality of information disclosure.Particulars about the directors, supervisors, senior management staffs and shareholders holding over5% shares of the Company involving in illegal trading the Company’s stocks and the Company hasdisclose to recover the illegal income□ Applicable √ InapplicableIX. Explanation on other significant eventsThe Company convened the 18th Session of the 6th Board of Directors on 28 Jun. 2012, at whichreviewed and approved the Proposal on Transferring Equity of Shenzhen Liangke Venture CapitalCo., Ltd.. However, due to the transferee Shenzhen Meilu Trade Development Co., Ltd. hasn’t paidthe equity transfer payment totally, the Company’s 18.5% equity held in Shenzhen Liangke VentureCapital Co., Ltd. hasn’t been transferred to it. Up to 6 Feb. 2013, the transferee had paid RMB 8.50million for the equity transfer and it promised to pay the rest、interest and fine for delaying paymentbefore 15 Jun. 2013. After all the equity transfer payment being paid totally and the transfer ofequity being completed, the Board of Directors of the Company will disclose the announcement onthe subsequent progress timely.
                                                   2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.X. Significant events of subsidiaries of the Company1. The Company convened the 18th Session of the 6th Board of Directors on 28 Jun. 2012, at whichreviewed and approved the Proposal on Liquidating and Writing off the Controlled SubsidiaryGuangdong Fozhao New Light Sources Technology Co., Ltd., and the liquidating and write-offwork has been completed in the middle of March 2013, and the Company also disclosed theAnnouncement on Completion of Writing Off the Controlled Subsidiary on 18 Mar. 2013.2. The Company convened the 22nd Session of the 6th Board of Directors on 16 Aug. 2012, at whichreviewed and approved the Proposal on Transferring the Equity of Foshan Gaoming FuwanLandscape Resort Co., Ltd. by Way of Public Auction (for details, please refer to the public noticepublished on www.cninfo.com.cn dated 17 Aug. 2012 with announcement no. 2012-046); on 30 Oct.2012, the Company entrusted Foshan City Rongxin Auction Co., Ltd. to put up 100% equity ofFoshan Gaoming Fuwan Landscape Resort Co., Ltd. for auction, as a result, Guangdong TuanyiInvestment Group Limited and Foshan Hongyi Property Investment Co., Ltd. successfully acquired100% equity of Foshan Gaoming Fuwan Landscape Resort Co., Ltd. with the price of RMB
    0.31705 billion   (for details, please refer to the public notice published on www.cninfo.com.cndated 1 Nov. 2012 with announcement no. 2012-064); on 18 Nov. 2012, Foshan Gaoming FuwanLandscape Resort Co., Ltd. completed the issue on transferring the equity of Foshan GaomingFuwan Landscape Resort Co., Ltd. (for details, please refer to the public notice published onwww.cninfo.com.cn dated 20 Nov. 2012 with announcement no. 2012-066); from then on, theCompany no longer held any equity of Foshan Gaoming Fuwan Landscape Resort Co., Ltd..
                                                                          2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
         Section VI. Change in Share Capital and Particulars about
                                                        ShareholdersI. Particulars about the changes in share capital
                                Before the change                  Increase/decrease in the change (+,-)                After the change
                                                                               Capitalizat
                                                        Issuance                  ion of
                                           Proportion                 Bonus                                                        Proportio
                               Number                   of new                    public      Other        Subtotal    Number
                                              (%)                     shares                                                        n (%)
                                                         shares                  reserve
                                                                                   fund
    I. Shares subject to trading 137,190,4                                                                                 137,192,6
                                             14.02%                                              2,175        2,175                  14.02%
    moratorium                           40                                                                                      151. Shares held by the State
    2.    Shares     held     bystate-owned corporation3. Other shares held by
                               4,286,189       0.44%                                                                   4,286,189      0.44%domestic corporationIncluding: shares held by
    domestic non-state-owned 3,760,618             0.38%                                          -27,025       -27,025 3,733,593         0.38%corporationShares held by domestic
                                525,571        0.05%                                           27,025        27,025     552,596       0.05%natural person
    4. Shares held by foreign 131,815,6                                                                                    131,815,6
                                             13.47%                                                                                  13.47%
    investment                           85                                                                                      85
    Including: shares held by 131,815,6                                                                                    131,815,6
                                             13.47%                                                                                  13.47%
    foreign corporation                  85                                                                                      85Shares held by foreignnatural person5. Shares held by senior
                               1,088,566       0.11%                                             2,175        2,175 1,090,741         0.11%management staffs
    II. Shares not subject to 841,373,3                                                                                    841,371,1
                                             85.98%                                             -2,175        -2,175                 85.98%
    trading moratorium                   05                                                                                      30
                               616,152,2                                                                               616,150,0
    1. RMB ordinary shares                       62.96%                                             -2,175        -2,175                 62.96%
                                     68                                                                                      93
    2.   Domestically       listed 225,221,0                                                                               225,221,0
                                             23.02%                                                                                  23.02%
    foreign shares                       37                                                                                      37
                                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.3. Overseas listed foreignshares4. Others
                             978,563,7                                                                         978,563,7
    III. Total shares                            100%                                                                               100%
                                     45                                                                              45Reason for the changes in share capital:27025 shares subject to trading moratorium were changed from the shares held by domesticnon-state-owned corporation to the shares held by domestic natural person; due to the original ViceGM Zhao Yong resigned on 26 Dec. 2012, his shares held were totally changed to shares subject totrading moratorium, and the shares subject to trading moratorium increased 2175 shares.II. Issuance and listing of securities1. Issuance of securities over the past three yearsThe Company had no issuance of securities over the past three years.2. Explanation on changes in share capital & the structure of shareholders, the structure ofassets and liabilitiesThere was no change in share capital and the structure of shareholders during the reporting period.3. Particulars about staff sharesThe Company had no staff shares during the reporting period.III. Particulars about the shareholders and actual controller1. Total number of shareholders and their shareholding
                                                                                                                     Unit: Share
    Total number of shareholders at                     Total number of shareholders on the fifth trading day before
                                          154,375                                                                            150,535
    the reporting period                                the disclosure date of the annual report
                        Particulars about shares held by shareholders with a shareholding percentage over 5%
                                                                  Increase/                             Pledged or frozen shares
                                                                   decrease Number of Number of
                                      Shareholdin Total shares
    Name of            Nature of                                   during    non-tradabl tradable
                                     g percentage held at the                                           Status of     Number of
    shareholder         shareholder                                   the       e shares        shares
                                          (%)        period-end                                          shares            shares
                                                                  reporting      held          held
                                                                    period
                                                                         2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.OSRAM Holding
                       Foreign                                                   131,815,68
    Company                                         13.47% 131,815,685 0                                 0
                       corporation                                                       5LimitedProsperity Lamps
                       Foreign                                                                102,751,6
    &     Components                                 10.5% 102,751,648 0                     0
                       corporation                                                                  48LimitedDBS
    VICKERS(HON Foreign                                                                           14,558,49
                                                 1.49%    14,558,494 1,143,351           0
    G     KONG) LTD corporation                                                                          4A/C CLIENTSTaifookSecurities
                       Foreign                                                                10,506,21
    Company                                          1.07%   10,506,212 -400,000            0
                       corporation                                                                   2Limited-AccountClient
                       Domestic natural
    Zhang Yuan                                       0.98%     9,600,001                     0 9,600,001
                       person
    EAST          ASIA
    SECURITIES             Foreign
                                                 0.97%     9,527,080 0                   0 9,527,080
    COMPANY                corporationLIMITED
                       Foreign natural
    Zhuang Jianyi                                    0.85%     8,324,132 -80,000             0 8,324,132
                       personGuangzhou
                       DomesticProsperity Lamps
                       non-state-owned           0.57%     5,586,815 675,675       675,675 4,911,140
    &     Components
                       corporationTrade Co., Ltd.
                       Domestic natural
    Zhao Xiyi                                        0.32%     3,100,000                     0 3,100,000
                       person
    The       Customer
    Credit       Trading
    Guarantee              Domestic
    Securities             non-state-owned            031%     3,033,502                     0 3,033,502
    Account           of corporationGuosen SecuritiesCo., Ltd.
    Strategic     investor     or     generalcorporation becoming a top ten
                                            Naughtshareholder due to placing of newshares (if any)
    Explanation on associated                   Among the top ten shareholders of the Company, Prosperity Lamps & Components Limited
                                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    relationship or persons acting in       and Zhuang Jianyi exist related relationship, and they are acting-in-concert. Apart from this,concert among the above-mentioned it’s unknown whether there is any associated relationship among other shareholders of the top
    shareholders:                           ten shareholders, or whether there is any action-in-concert among them regarding to
                                        Administrative Measures on Acquisition of Listed Companies.
                Particulars about shares held by the top ten shareholders holding shares not subject to trading moratorium
                                                                                                               Type of shares
       Name of shareholder                  Number of tradable shares held at the year-end
                                                                                                            Type           Number
    Prosperity Lamps & Components                                                                      RMB ordinary
                                                                                    102,751,648                              102,751,648
    Limited                                                                                            share
                                                                                                   DomesticallyDBS VICKERS(HONG
                                                                                     14,558,494 listed foreign                  14,558,494KONG) LTD A/C CLIENTS
                                                                                                   shares
                                                                                                   DomesticallyTaifook Securities Company
                                                                                     10,506,212 listed foreign                  10,506,212Limited-Account Client
                                                                                                   shares
                                                                                                   RMB ordinary
    Zhang Yuan                                                                            9,600,001                                  9,600,001
                                                                                                   share
                                                                                                   DomesticallyEAST ASIA SECURITIES
                                                                                      9,527,080 listed foreign                   9,527,080COMPANY LIMITED
                                                                                                   shares
                                                                                                   Domestically
    Zhuang Jianyi                                                                         8,324,132 listed foreign                   8,324,132
                                                                                                   shares
    Guangzhou Prosperity Lamps &                                                                       RMB ordinary
                                                                                       4,911,140                                 4,911,140
    Components Trade Co., Ltd.                                                                         share
                                                                                                   RMB ordinary
    Zhao Xiyi                                                                             3,100,000                                  3,100,000
                                                                                                   shareThe Customer Credit Trading
                                                                                                   RMB ordinary
    Guarantee Securities Account of                                                       3,033,502                                  3,033,502
                                                                                                   shareGuosen Securities Co., Ltd.The Customer Credit Trading
    Guarantee Securities Account of                                                                    RMB ordinary
                                                                                      2,937,581                                  2,937,581
    Shenyin & Wanguo Securities Co.                                                                    shareLtd.Explanation on associated
                                      Among the top ten tradable shareholders of the Company, Prosperity Lamps & Componentsrelationship or/and persons acting
                                      Limited and Zhuang Jianyi exist related relationship, and they are acting-in-concert. Apart fromin concert among the top ten
                                      this, it’s unknown whether there is any associated relationship among other shareholders of thetradable shareholders and between
                                      top ten tradable shareholders, or whether there is any action-in-concert among them regarding tothe top ten tradable shareholders
                                      Administrative Measures on Acquisition of Listed Companies.and the top ten shareholders
                                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.2. Particulars about the controlling shareholder and actual controllerThere exists no so called controlling shareholder or actual controller.(1) The first principal shareholder of the Company is OSRAM Holding Company Limited, whichwas established in Hong Kong in Jun. 2004 with registered capital of HKD 500,000, the companyprincipal is Werner Hoffmann, it has no substantial operations and it currently held 13.47% equityof the Company.(2) The second principal shareholder of the Company is Prosperity Lamps & Components Limited,which was established in Hong Kong in 1978 with registered capital of HKD 2 million and LegalRepresentative being Zhuang Jianyi, main business scope covering sales and exportation of lightingproducts, import and export trade; currently held 10.5% equity of the Company.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., Ltd3. Particulars about other corporate shareholders with shareholding proportion over 10%During the reporting period, there was no corporate shareholders holding over 10% shares of theCompany except the above first principal shareholder of OSRAM Holding Company Limited andsecond principal shareholder of Prosperity Lamps & Components Limited.IV. Particulars on shareholding increase scheme proposed or implemented by theshareholders and act-in-concert persons during the reporting periodNo shareholding increase scheme proposed or implemented by the shareholders and act-in-concertpersons during the reporting period.
                                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Section VII. Directors, Supervisors, Senior Management Staffs and
                                                  EmployeesI. Changes in shareholding of directors, supervisors and senior management staffs
                                                                                                   Amount of Amount of
                                                                                                    shares         shares        Amount of
                                                                                     Shares
                                                                                                   increased decreased shares held
                              Tenure                                      Ending    held at the
    Name      Office title                 Sex   Age        Start date                                at the        at the          at the
                              status                                       date     year-begin
                                                                                                   reporting      reporting period-end
                                                                                     (share)
                                                                                                    period         period         (share)
                                                                                                    (share)        (share)
             ChairmanZhong
             of      the Current       Male           69 Jun. 2010 Jun. 2013          876,206                 0              0     876,206Xincai
             Board
             Vice
             chairman
             of      theLiu
             Board and Current         Male           50 Jun. 2010 Jun. 2013          351,280                 0              0     351,280Xingming
             concurrent
             ly General
             ManagerFrancis
                                                                        12 Apr.
    Michael      Director       Former     Male           64 Jun. 2010                             0              0              0              0
                                                                        2012Piscitelli
    Joerg                                                                   23 Jul.
             Director       Former     Male           49 Jun. 2010                             0              0              0              0
    Thaele                                                                  2012
    Wu                                                         23 May
             Director       Current    Male           46                Jun. 2013              0              0              0              0
    Shengbo                                                    2012Michel
                                                           21 Aug.
    Jean-paul Director          Current    Male           49                Jun. 2013              0              0              0              0
                                                           2012Henri
    Liu          Independe
                            Current    Male           64 Jun. 2010 Jun. 2013                   0              0              0              0Zhenping nt director
    Dou          Independe
                            Current    Male           53 Jun. 2010 Jun. 2013                   0              0              0              0
    Linping      nt director
    Zhang        Independe                                                  24 Jul.
                            Former     Female         39 Jun. 2010                             0              0              0              0
    Haixia       nt director                                                2012
                                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Xue         Independe                             21 Aug.
                          Current   Male     44               Jun. 2013             0          0           0           0
    Yizhong     nt director                           2012
    Ye Zaiyou Director        Current   Male     56 Jun. 2010 Jun. 2013                 0          0           0           0
                                                  26 May      26 Dec.
    Zhao Yong Director        Former    Male     46                                8,700           0           0      8,700
                                                  2011        2012
            Chairman
            ofJiao
            Supervisor Current      Male     40 Jun. 2010 Jun. 2013           22,880           0           0     22,880Zhigang
            y
            CommitteeYe
    Zhenghon Supervisor Current         Male     39 Jun. 2010 Jun. 2013           20,560           0           0     20,560gYang
            Supervisor Current      Male     47 Jun. 2010 Jun. 2013            3,900           0           0      3,900XudongZhuang
            Supervisor Current      Male     55 Jun. 2010 Jun. 2013                 0          0           0           0Rujia
    Zhang                                             26 May
            Supervisor Current      Male     61               Jun. 2013             0          0           0           0
    Yingqi                                            2011
            Deputy
                                                  12 Jun.
    Xie Qing    General       Current   Male     38               Jun. 2013       12,950           0           0     12,950
                                                  2012
            Manager
                Deputy
                General
             Manager
    Zhou                                         5 Jan.
                  and     Current   Male     51               Jun. 2013             0          0           0           0
    Xiangfeng                                         2011
             Secretary
                 to the
                 Board
            Deputy
                                                  14 Dec.
    Wei Bin     General       Current   Male     43               Jun. 2013       15,684           0           0     15,684
                                                  2011
            Manager
    Wang        Financial
                          Current   Female   50 Jun. 2010 Jun. 2013          140,013           0           0    140,013Shuqiong Manager
            Deputy
    Zou                                               14 Dec.     24 Sept.
            General       Former    Male     57                                     0          0           0           0
    Jianping                                          2011        2012
            Manager
    Total                                                                      1,452,173                           1,452,173II. Post-holding situationMain working experience of current directors, supervisors and senior management staffs over thepast five years:
                                                   2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.(1) Work experience of directorsZhong Xincai: Male, born in Nanjing, Jiangsu Province in 1943,, of technical secondary schooleducation, who is currently Chairman of the Board. He was assigned to the Company after hisgraduation from Nanjing Radio Industrial School in 1964 and has been working here ever since.Successively since 1979 he acted as chief of workshop, production and technical section chief,deputy factory director, and then the factory director; since 1985 he acted as Manager of theCompany; since 1992, he was successively acted as Chairman of the Board, General Manager aswell as Sectary of the Party Committee. He has been engaged in production work of electric lightsource for over 40 years, possessed rich professional knowledge in electric light source as wellenterprise management experience. He has been honorably awarded advanced worker by Ministryof Light Industry, nationwide and provincial excellent enterpriser; provincial and municipal PartyRepresentative, and the Deputy to the Eighth and the Ninth Provincial People's Congresses.Liu Xingming: Male, born in Xinhui, Guangdong Province in 1962, bachelor degree holder,engineer, and is currently Executive Director and Deputy General Manager of the Company. Hejoined the Company in 1983, and once worked as Chief of workshop, assistant to general manager.He was Deputy General Manager of the Company from 1997 to 2005 and acted as General Managerfrom Dec. 2005 to Nov. 2008; acted as Deputy General Manager of the Company since Dec. 2008and was in charge of sales business, and was in charge of new energy business and LED business in2011; concurrently worked as the Vice Chairman of the Board of the Company since Apr. 2011, andGeneral Manager of the Company since Apr. 2012. Since 1995 he has been elected as director of theCompany.Wu Shengbo: Male, American nationality, born in May 1966, bachelor degree of ThermalEngineering Department of Tsinghua University, master degree of Mechanical Engineering ofUniversity of Nebraska-Lincoln and master degree of Information Management System ofAmerican Keller Graduate School. From Aug. 1993 to Dec. 2008, he worked in GE andsuccessively acted as General Manager in China of Optimization & Control Department of EnergyGroup and concurrently the President & CEO of Xinhua Control Engineering Co., Ltd., OperatingGeneral Manager of Control Solution Department in Asia-pacific Area, etc.; from Jan. 2009 to Apr.2012, he worked in Honeywell and acted as the General Manager of Process Control Department inChina; since Apr. 2012, he has been worked in OSRAM Holding Company Limited, acting as thePresident in Asia-Pacific Area.Michel Jean-paul Henri: Male, American nationality, born in Dec. 1963, bachelor degree of Finance& Accounting of Ecole Superieure de Commerce de Reims. From 1 Sept. 2002, he joined OSRAMGroup and successively acted as Chief of Assets Management Department, Supervisory Officer ofGeneral Illumination Business and CFO of North America Area; now he is the CFO of OSRAMAsia-pacific Co., Ltd., mainly responsible for the financial performance and strategic developmentof OSRAM Group in the Asia-pacific area.Ye Zaiyou: Male, born in Nanhai, Guangdong province in 1956,, junior middle school ineducational background, director of the Company from the 1st to 6th Board of Directors. He iscurrently the Chairman of the Board of Nanhai Wuzhuang Global Ceramic Factory, also sponsorshareholder of the Company.Dou Linping (Independent Director): Male, born in Beijing in 1959, bachelor degree. Majoring inMetal Materials and Heat Treatment at Beijing University of Technology from Sept. 1978 to Jul.1982; worked in Beijing Lamp Factory from Jul. 1982 to Mar. 1985 and Vice Section Chief in the
                                                   2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Design Section early in 1984; Chief of the Design Office in Beijing Lamps Research Institute fromMar. 1985 to Dec. 1992 and Vice Director of the Institute since 1990; worked in China Associationof Lighting Industry from Jan. 1993 to May 2012. He has been the Vice Secretary General of ChinaIlluminating Engineering Society since Jun. 2012. And he was elected as the independent director ofthe 6th Board of Directors in Jun. 2010.Liu Zhenping (Independent Director): Male, born in Shenyang, Liaoning Province in 1948, apostgraduate from Chinese Academy of Social Sciences with a title of senior accountant. Youngintellectual in the Langjia Unit, Yuhong District, Shenyang from Sept. 1968 to Sept. 1971;Accountant, Chief Accountant and then Chief of the Financial Affairs at Accountancy Office ofShenyang Bulb Factory from Sept. 1971 to Nov. 1983; Vice Chief (General Accountant) inShenyang Bulb Factory from Nov. 1983 to Sept. 1992; Factory Director and Party CommitteeSecretary of Shenyang Bulb Factory from Sept. 1992 to Jan. 1998; GM, Party Committee Secretaryand Chairman of the Board of Shenyang Northeast Lighting Co., Ltd. from Jan. 1998 to Jul. 2004;From Jul. 2004 till now, GM and Partner of Liaoning Huize Certified Public Accountants Co., Ltd.;Vice President of China Association of Lighting Industry, Chief of Electric Light SourceSpecialized Committee since 1992; Deputy to People’s Congress and a member of the Politics andLaw Committee under the Standing Committee of the People’s Congress in Tiexi District,Shenyang from 1992 to 2007. He was elected as the independent director of the 6th Board ofDirectors in Jun. 2010.Xue Yizhong (independent director): Male, born in Jul. 1968, from Xuzhou Anhui, master degreeand owning Lawyer Qualification Certificate, Economist Qualification Certificate and PoliticalWorker Qualification Certificate. From the year of 1993 to 2001, he successively worked as ViceSection Chief, Section Chief, Vice Division Chief and Division Chief of International BusinessDivision, Legal Affairs Division and Credit Management Division (including Assets RisksManagement Section, Property Credit Section, Foreign Currency Credit Section, Project CreditSection and Industrial & Commercial Section and other functional departments); from the year of2001 till now, he works in Grandall Law Firm and acts as the Senior Partner, Principal of FinancialProfessional Committee and Management Partner of Shenzhen Office.(2) Work experience of supervisorsJiao Zhigang: Male, born in Shenqiu, Henan Province in May 1972, bachelor degree holder, isChairman of the Supervisory Committee of the Company. His administrative post is managementstorage, motorcade and logistics of the Company, including domestic distribution. He graduatedfrom South China University of Technology in Jul. 1994, and at the same year he entered FoshanElectrical and Lighting Co., Ltd. to work until now.Ye Zhenghong: Male, born in Jun. 1973, college degree, is Supervisor of the Company. Hegraduated from Shenyang Industrial College with Metallurgy Machinery major in Jul. 1995. He wasassigned to Foshan Electrical and Lighting Co., Ltd. in Jul. 1995; worked in Machine Repair Shopform Jul. 1995 to Jun. 1997; worked in Machinery Dynamic Department from Jul. 1997 to Jan.2001; acted as Equipment Management Director in T8 Fluorescent Lamp factory from Feb. 2001 toJan. 2005; acted as Director of Machine Repair Workshop from May 2005 to Jan. 2007; acted asChief Officer of Machinery Dynamic Department from May 2006 to Dec. 2007; and acted asfactory director of T8 Fluorescent Lamp factory from Jan. 2008 till now.Yang Xudong: Male, born in Oct. 1965, college degree, the Supervisor of the Company. Hegraduated from Heilongjiang Electronic Industry School in Jul. 1987 and worked as a technician inHeilongjiang Fularji Power Plant from Jul. 1987 to Jun. 1994; he worked in Nanhai Power Plant I
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.from Jun. 1994 to Jul. 2007; he has been serving as the Deputy Factory Director in GaomingBranch of the Company since Jul. 2007. He is also a Deputy to the 9th People’ Congress ofGuangdong Province.Zhuang Rujia: Male, born in Oct. 1975, in Chaoyang, Guangdong Province, graduated fromtechnical secondary school, the Supervisor of the Company. He consecutively acted as director ofProsperity Lamps & Components Limited for more than twenty years, and was director of ZhejiangProsperity Lighting Electrical Co., Ltd. and Prosperity (Hangzhou) Lighting Electrical Co., Ltd.; hehas experience of several years in operating & running and marketing strategy of lighting industry.Zhang Yingqi, male, comes from Shanghai, born in Feb. 1951, a postgraduate. From Nov.1968 to Feb. 1969, he worked as a worker at the No. 7 Loading Area of Shanghai Port Bureau;from Feb. 1969 to Aug. 1986, he served as a cadre in the air force of Guangzhou militaryregion; from Aug. 1986 to Dec. 1993, he acted as secretary and manager of Guangzhou PearlRiver Enterprises Group; from Dec. 1993 to Sep. 2003, he worked in Guangzhou Pearl RiverInvestment Fund Management Co., Ltd. as the General Manager; from May 2001 to Aug. 2010,he worked as the General Manager in Guangzhou Pearl River Asset Management Co., Ltd. andheld the post of Chairman of the Board of Directors from Aug. 2010 to Mar. 2012, and; sinceDec. 2002, he has been serving as a supervisor in Guangzhou Pearl River Beer Co., Ltd; thensince May 2011, he has been serving as a supervisor in the Company.(3) Work experience of senior management staffsWei Bin: male, born in May 1969, nationality: Chenzhou City, Hunan Province, graduated fromSouth China University of Technology, bachelor’s degree and was an engineer. He worked in theCompany since 1991, studies in general bulbs workshop till Mar. 1992; from Mar. 1992 to the endof 1996, he was responsible for development of products in research institute; from Jan. 1997 toDec. 2004, he acted as director of energy saving lamp workshop; from Jan. to Dec. 2005, he actedas director of HID workshop; from 2006 to Nov. 2008, he acted as director of T5 workshop; fromNov. 2008 to Sep. 2009, he was acting as Head of Technology Department. And he has beenworking as the Deputy General Manager of the Company since Sep. 2009, and continued to beengaged as the Deputy General Manager of the Company in Dec. 2011.Xie Qing: Male, born in Apr. 1974, electric-light-source engineer, is the Deputy General Managerof the Company. He graduated from Nanjing Radio Industrial School in Jul. 1994, and worked inthe General Bulbs Workshop of the Company upon his graduation, and successively became theChief of the production line after three months, technician of the General Bulbs Workshop in Mar.1996, Chief of Middle-grade Lamp Workshop in May 1997, Chief of Sing-end Lamps Workshopfrom 1998 to 2010, and Deputy General Manager of the Company since Jun. 2010, and continued tobe engaged as the Deputy General Manager of the Company in Dec. 2012.Wang Shuqiong: Female, born in Qinghai in Apr. 1962, a graduate of technical secondary school,currently Financial Department Manager. She worked in Qinghai Bulb Factory in Jul. 1982, andthen transferred to Qinghai Xining Financial Bureau in Dec. 1988. She joined Foshan Electrical andLighting Co., Ltd. in Apr. 1993 and worked herein until now.Zhou Xiangfeng, male, was born in Dec. 1961. He belongs to Chinese nationality and has noright of permanent residence abroad. He graduated from Zhongnan University of Economicsand Law with a master degree majoring in economics. He once worked as a lecturer in theSchool of Economics of Hainan University, the fully-authorized securities representative ofGuangdong Macro Co., Ltd., the office director in Guangzhou Branch and the general manager
                                                                           2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.of Huangpu Business Office of China Securities Co., Ltd., and the secretary to the board ofdirectors, the director of listing office, as well as the head of strategy development departmentof Guangdong Nanfang Soda Ash Industrial Co., Ltd. He began to be the Secretary to the Boardof the Company on 8 Jan. 2011, and concurrently took the post of Deputy GM of the Company on15 Aug. 2011.Post-holding in shareholders’ units√Applicable □Inapplicable
    Name of theperson holding
                                                                  Position in                                       Receives payment
                                                                                Beginning date    Ending date of
    any post in               Name of shareholder’s unit          shareholder’s                                     from shareholder’s
                                                                                of office term     office term
                                                                      unit                                                unit?shareholder’s
      unit
    Zhuang Rujia      Prosperity Lamps & Components Limited Director                28 Apr. 1989                       YesPost-holding in other units√Applicable □Inapplicable
    Name 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 unitsWu Shengbo
                  OSRAM Asia-Pacific Co., Ltd.                   President      1 Apr. 2012                        YesMichel
                  OSRAM Asia-Pacific Co., Ltd.                   CFO            1 Sept. 2002                       YesJean-paul Henri
                  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
    Dou Linping       China Illuminating Engineering Society                        5 Jun. 2012                        Yes
                                                                 General
                                                                 Senior
    Xue Yizhong       Grandall Law Firm                                             17 May 2001                        Yes
                                                                 Partner
                  Foshan Nanhai Wuzhuang Global Ceramic Chairman of
    Ye Zaiyou                                                                       10 Aug. 1993                       Yes
                  Factory                                        the BoardIII. Remuneration for directors, supervisors and senior management staffsDecision-making procedure, determining basis and actual payment for the remuneration of directors,supervisors and senior management staffs
    Decision-making      procedure      for   the
                                                The Remuneration & Appraisal Committee under the Board of Directors decides theremuneration of directors, supervisors and
                                                remuneration of directors, supervisors and senior management in accordance with thesenior management
                                                                             2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                 Plan for Implementing the Equity Incentive Mechanism for Middle-and Top-Rank
                                                 Management Personnel reviewed and approved on the 2001 Annual Shareholders’
                                                 General Meeting, and the particulars on completing current main financial indexes &
                                                 operating goals, as well as the fulfillment of job responsibilities by them.
                                                 The remuneration of directors (excluding independent directors), supervisors and senior
                                                 management who withdraw remuneration in the Company are all decided in accordanceBasis for determining the remuneration of with the Company’s Plan for Implementing the Equity Incentive Mechanism for
    directors,     supervisors    and         senior Middle-and Top-Rank Management Personnel and relevant appraisal indexes.
    management                                       The allowance of independent directors should be submitted to the 2010 Annual
                                                 Shareholders’ General Meeting for review and approval after being reviewed and
                                                 approved by the Board of Directors.
    Actual payment of the remuneration of            The total remuneration (before tax) actually paid for the directors, supervisors and
    directors, supervisors and senior                senior management staffs in 2012 was RMB 7,714,232.managementRemuneration for directors, supervisors and senior management staffs of the Company during thereporting period
                                                                                             Total               Total              Actual
                                                                                         remuneration        remuneration       remuneration
    Name           Office title           Sex             Age         Tenure status    gained from the      gained from         gained at the
                                                                                       Company (before       shareholder’s     period-end(RM
                                                                                       tax)(RMB Yuan)             unit             B Yuan)
                  Chairman         of
    Zhong Xincai                           Male                      69 Current                1,620,000.00                          1,620,000.00
                  the Board
                  Vice chairman
                  of the Board
                  and
    Liu Xingming                           Male                      50 Current                1,000,000.00                          1,000,000.00
                  concurrently
                  General
                  Manager
    Wu Shengbo        Director              Male                      46 CurrentMICHEL
    Jean-paul         Director              Male                      49 CurrentHenri
    Joerg Thaele      Director              Male                      49 FormerFrancis
    Michael           Director              Male                      64 FormerPiscitelli
                  Independent
    Liu Zhenping                            Male                      64 Current                  100,000.00                 0.00       100,000.00
                  director
                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
               Independent
    Dou Linping                        Male      53 Current               100,000.00              0.00      100,000.00
               director
               Independent
    Zhang Haixia                       Female    39 Former                 64,867.00                         64,867.00
               director
               Independent
    Xue Yizhong                        Male      44 Current                41,665.00                         41,665.00
               director
    Ye Zaiyou      Director            Male      56 Current
    Zhao Yong      Director            Male      46 Former                600,000.00                        600,000.00
               Chairman       of
    Jiao Zhigang   Supervisory         Male      40 Current               650,000.00                        650,000.00
               Committee
    Ye Zhenghong Supervisor            Male      39 Current               270,000.00                        270,000.00
    Yang Xudong    Supervisor          Male      47 Current               120,000.00                        120,000.00
                                                                                                     HKD890,125.0
    Zhuang Rujia   Supervisor          Male      55 Current                     0.00 HKD890,125.00
                                                                                                                 0
    Zhang Yingqi   Supervisor          Male      61 Current
               Deputy
    Xie Qing       General             Male      38 Current               650,000.00                        650,000.00
               Manager
               Deputy
    Wei Bin        General             Male      43 Current               650,000.00                        650,000.00
               Manager
               Deputy
               GeneralZhou
               Manager       and Male        51 Current               650,000.00                        650,000.00Xiangfeng
               Secretary to the
               Board
    Wang           Financial
                                   Female    50 Current               750,000.00                        750,000.00
    Shuqiong       Manager
               Deputy
    Zou Jianping   General             Male      57 Former                447,700.00                        447,700.00
               ManagerParticulars about the equity incentives granted for the directors, supervisors and senior managementstaffs of the Company□ Applicable √ Inapplicable
                                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.IV. Changes in engagement and dismissal of Directors, Supervisors and Senior ManagementStaffs within the reporting period
      Name              Position            Type                Date                                 Reason
    Francis Michael                                                             Mr. Francis Michael Piscitelli resigned from the post of
                    Director          Left the office   12 Apr. 2012
    Piscitelli                                                                  director of the Company due to personal reason
                    Chairman of the
                                                                            Mr. Zhong Xincai resigned from the post of general
                    Board and
    Zhong Xincai                          Left the office   20 Apr. 2012        manager of the Company due to personal reason, and
                    concurrently
                                                                            only takes the post of the chairman of the board
                    General Manager
                                                                            Mr. Joerg Thaele resigned from the post of director of the
    Joerg Thaele        Director          Left the office   23 Jul. 2012
                                                                            Company due to personal reason
                    Independent                                             Ms. Zhang Haixia resigned from the post of independent
    Zhang Haixia                          Left the office   24 Jul. 2012
                    Director                                                director of the Company due to personal reason
                    Vice General                                            Mr. Zou Jianping resigned from the post of vice general
    Zou Jianping                          Left the office   24 Sept. 2012
                    Manager                                                 manager of the Company due to personal reason
                    Director and                                            Mr. Zhao Yong resigned from the post of director and
    Zhao Yong           Vice General      Left the office   26 Dec. 2012        vice general manager of the Company due to personal
                    Manager                                                 reasonV. Particulars about changes in core technical team or key technicians during the reportingperiod (not directors, supervisors or senior management staffs)There were no changes in the core technical team or key technicians during the reporting period.VI. About employeesAs to 31 Dec. 2012, the Company has 7657 employees in active service, and the professionalstructure and educational background are as follows:
                                                                                      Proportion in total amount of
    Professional structure of employees                  Amount
                                                                                              employees(%)
               Production staff
                                                         6909                                     90.23
               Technical staff
                                                          453                                      5.92
                 Sales staff
                                                          223                                      2.91
             Administration staff
                                                           40                                      0.52
               Financial staff
                                                           32                                      0.42
                                                                2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
             Total
                                                    7657                                     100
                                 Staffs’ Professional Structure Chart
                                 员工专业结构图
                                 2.91%
                                         0.52%
                                                  0.42%
               5.92%
                                                                                             Production staff
                                                                                         生产人员
                                                                                         Technical
                                                                                         技术人员staff
                                                                                         营销人员
                                                                                         Sales staff
                                                                                         行政人员 staff
                                                                                         财务人员
                                                                                             Financial staff
                                                                               90.23%
    Educational backbroud                        Amount                   Proportion    in     total    amount   of
                                                                          employees
    Above college level
                                                   921                                       12.03Technical secondary school and
                                                  1863                                       24.33
      senior high school
    Below senior high school
                                                  4873                                       63.64
            Total
                                                  7657                                       100
                                                             2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                        Staffs’ Education Background Structure Chart
                                                                                       Above college level
                                                                                       Technical secondary school and senior high school
                                                                                       Below senior high school2. The Company has signed the labor contracts with all its staffs and handled the social insurancefor the staffs, as well as established the public reserve funds system. There were no particulars inviolation of laws and regulations when executing the national employment system, labor protectionsystem, social security system and medical security system. And the Company need not undertakethe expenses of resigned and retired staffs.3. Employee’s remuneration policyThe employee’s remuneration of the Company was paid monthly in accordance with relevantremuneration management system of the Company, and distributed the performance salary at theyear-end according to its business performance and appraisal result.4. Employees’ training planThe Company established the internal team of lecturers in accordance with the development needsof the Company, making the skilled staffs to teach business and technical knowledge regularly tothe new staffs; meanwhile, it made key training on the staffs of the marketing, R&D and productiondepartments by way of combination of internal & external training according to the needs of thedevelopment strategies and functional departments of the Company, so as to cultivate excellenttalents team and enhance its competiveness.
                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                               Section VIII. Corporate GovernanceI. Basic information of corporate governanceDuring the reporting period, in strict accordance with relevant requirements of Company Law,Securities Law, Code of Corporate Governance of Listed Companies and Rules of Stock Listing ofShenzhen Stock Exchange as well as other relevant laws, rules and regulations, the Companycontinuously perfected the corporate governance structure and set up an effective corporategovernance system. At present, the Company has set up governance structure of responsibleShareholders’ General Meeting, the Board of Directors, the Supervisory Committee and managers,who performed right of decision-making, execution and supervision respectively according to theirduties; besides, the Company set up special committees of the Board of Directors and system forindependent directors. The Company strengthened information disclosure of principal shareholdersand persons acting-in-concert, forbidden shareholders of the Company to misapply their rights. TheCompany separated from the principal shareholder in personnel, assets, business, financial affairsand organizational, and was absolutely impendent. The Company timely revised and perfectedvarious systems in accordance with the latest issued laws & rules and relevant regulations of CSRCand Shenzhen Stock Exchange. And the corporate governance is basically in line with therequirements of relevant laws, regulations and regular documents.The main systems (all published on www.cninfo.com.cn) established by the Company are asfollows:
                                                           The latest session to review and approve the
    No.                      Name of system                                                                Disclosure date
                                                                              system
    1                                                          The First Special Shareholders’ General       22 Aug. 2012
           Articles of Association
                                                           Meeting for 2012
           Rules of Procedure for Shareholders’ General   The First Special Shareholders’ General       22 Aug. 20122
           Meeting                                         Meeting for 2012
                                                           The First Special Shareholders’ General       22 Aug. 2012
    3          Rules of Procedure for Board of Directors
                                                           Meeting for 2012
                                                           The First Special Shareholders’ General       22 Aug. 2012
    4          Rules of Procedure for Supervisory Committee
                                                           Meeting for 2012
    5、        Work System for Independent Directors           The Third Session of the Fifth Board of        28 Aug. 2007
                                                                2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                             Directors
    6    Working Rules of GM                                     The 21st Session of the 6th Board of Directors   2 Aug. 2012
    7    Administrative     Measures       on      Information   The Third Session of the Fifth Board of          28 Aug. 2007
    Disclosure                                              Directors
    8    Management System on Related-party Transactions         The Third Session of the Fifth Board of          28 Aug. 2007
                                                             Directors
    9    Management System on Securities Investment              The Third Session of the Fifth Board of          28 Aug. 2007
                                                             Directors
    10   Management System on the Shares Held by                 The 23rd Session of the 5th Board of Directors   29 Apr. 2010
    Directors, Supervisors and Senior Management
    Staffs & Their Variation
    11   Internal Control System                                 The 23rd Session of the 5th Board of Directors   29 Apr. 2010
    12   Accountability System on Material Errors in             The Third Session of the Sixth Board of          15 Jul. 2010
    Information Disclosure of Annual Report
                                                             Directors
    13   Management System on Reporting of External              The Third Session of the Sixth Board of          15 Jul. 2010
    Information                                             Directors
    14   Management       System     on     Registration    of   The 16th Session of the 6th Board of Directors   25 Apr. 2012
    Information Insiders
    15   Work System for Secretary to the Board                  The 17th Session of the 6th Board of Directors   13 Jun. 2012
    16   Management System on Profits Distribution               The 18th Session of the 6th Board of Directors   29 Jun. 2012
    17   Plan on Return for Shareholders in the Future Three     The 21st Session of the 6th Board of Directors   29 Jun. 2012
    Years (from the Year of 2012 to 2014)
    18   Internal Audit System                                   The 21st Session of the 6th Board of Directors   2 Aug. 2012
    19   Financial Management System                             The 21st Session of the 6th Board of Directors   2 Aug. 2012
    20   Method on Risks Assessment                              The 21st Session of the 6th Board of Directors   2 Aug. 2012
    21   System on Anti-fraud and Reporting                      The 21st Session of the 6th Board of Directors   2 Aug. 2012
    22   Management       System    on    Assets   Impairment    The 27th Session of the 6th Board of Directors   12 Dec. 2012
    Provision
                                                                  2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.There was no difference between the corporate governance and the Company Law and relevantrules of CSRCProgress of corporate governance activities, promulgation and implementation of RegistrationSystem for Information InsidersThe Company actively responded to the special inspection work of CSRC and CSRC GuangdongBureau on corporate governance and attended the work sessions on the corporate governance oflisted companies, and it promulgated and perfected various systems in accordance withrequirements of CSRC and CSRC Guangdong Bureau, so as to further improve its corporategovernance structure and increase its governance level. At present, the Company has promulgatedthe Management System for Information Insiders and the Management System on Reporting ofExternal Information, and during the period of preparing the periodical reports and occurringsignificant events, requiring the relevant personnel truthfully and completely record the name list ofthe information insiders involved in the links of reporting, transfer, preparation, examination,disclosure of inside information before disclosure, time of knowing the inside information and thecontent, etc., and report the File of Information Insiders according to the requirements of regulatoryauthorities. Through the above works, the Company further standardized the management on recordof information insiders, strengthened the confidential work for inside information, effectivelyprevented the illegal behaviors of using inside information for trading, and performed the fairprinciple in information disclosure, so as to protect the interest of the investors.The Company’s former Vice General Manager Mr. Zou Jianping and relevant personnel used theinside information for trading stocks of the Company during the period of planning & promotingthe investment in new energy project in 2009, who received the administrative punishment ofCSRC on 20 Sept. 2012 (for details, please refer to the public notice published onwww.cninfo.com.cn dated 24 Sept. 2012, with announcement no. 2012-052), the Company wouldlearn from the case and organize the directors, supervisors, senior management staffs and relevantpersonnel possibly contacting the inside information to learn relevant laws, rules and systems, so asto increase their awareness of standardized operation and confidence, and more strictly execute theManagement System for Registration of Information Insiders.II. Particulars about annual shareholders’ general meeting and special shareholders’ generalmeeting held during the reporting period1. Particulars about annual shareholders’ general meeting held during the reporting period
       Session         Convening date        Name of proposal              Resolution         Disclosure date     Disclosure index
                                        1.   2011   Annual   Work                                               Name                 of
                                        Report of the Board; 2.                                                 announcement:
                                        2011Annual Work Report of                                               Announcement        on
    2011        Annual                                                    All the proposals are
                                        the Supervisory Board; 3.                                               Resolutions Made at
    Shareholders’       23 May 2012                                      approved    at    the 24 May 2012
                                        Proposal on 2011 Annual                                                 the    2011      Annual
    General Meeting                                                       session
                                        Report and Its Abstract; 4.                                             Shareholders’
                                        Proposal on 2011 Annual                                                 General       Meeting;
                                        Financial Statement Report;                                             Announcement No.:
                                                                         2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                        5. Proposal on 2011 Annual                                                        2012-014; disclosure
                                        Profit Distribution Pre-plan;                                                     website:
                                        6. Proposal on Reengaging                                                         www.cninfo.com.cn
                                        GP        Certified         Public
                                        Accountants as the Audit
                                        Firm of the Company in
                                        2012; 7. Proposal on the
                                        2012        Annual      Routine
                                        Related-party Transactions;
                                        8. Proposal on Election of
                                        Mr.       Wu      Shengbo       as
                                        Director.2. Particulars about special shareholders’ general meeting held during the reporting period
      Session          Convening date          Name of proposal                   Resolution            Disclosure date     Disclosure index
                                        1. Proposal on Election of
                                        Mr.       Xue     Yizhong       as
                                        Independent        Director;    2.
                                        Proposal on Election of Mr.
                                        Michel Jean-paul Henri as
                                        Director; 3. Proposal on
                                        Management         System      on                                                 Name                 of
                                        Profits      Distribution;      4.                                                announcement:
                                        Proposal on Plan on Return                                                        Announcement         on
                                        for    Shareholders      in    the                                                Resolutions Made at
    The First Special                       Future Three Years (from                                                          the     First    Special
                                                                             All the proposals are
    Shareholders’                          the Year of 2012 to 2014); 5.                                                     Shareholders’
                     21 Aug. 2012                                            approved       at    the 22 Aug. 2012
    General    Meeting                      Proposal on Revising the                                                          General Meeting for
                                                                             session
    for 2012                                Articles of Association of                                                        2012;
                                        the Company; 6. Proposal                                                          Announcement No.:
                                        on Revising the Rules of                                                          2012-047; disclosure
                                        Procedure for Shareholders’                                                      website:
                                        General          Meeting;       7.                                                www.cninfo.com.cn
                                        Proposal on Revising the
                                        Rules     of     Procedure     for
                                        Board       of    Directors;    8.
                                        Proposal on Revising the
                                        Rules     of     Procedure     for
                                        Supervisory Committee
    The        Second                       Proposal on Transferring the The               proposal    is                     Name                 of
    Special              17 Oct. 2012       Equity of Foshan Gaoming approved                   at    the 18 Oct. 2012        announcement:
    Shareholders’                          Fuwan Landscape Resort session                                                    Announcement         on
                                                                              2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    General    Meeting                            Co., Ltd. by Way of Public                                                         Resolutions Made at
    for 2012                                      Auction                                                                            the Second Special
                                                                                                                                 Shareholders’
                                                                                                                                 General Meeting for
                                                                                                                                 2012;
                                                                                                                                 Announcement No.:
                                                                                                                                 2012-061; disclosure
                                                                                                                                 website:
                                                                                                                                 www.cninfo.com.cnIII. Performance of the Independent Directors1. Particulars about the independent directors attending the board sessions and theshareholders’ general meetings
                              Particulars about the independent directors attending the board sessions
                                                                                                                                      Failing to present
                                                                       Presence by
    Name of independent     Due presence            Presence in                                      Entrusted                            in person for two
                                                                     telecommunicati                               Absence (times)
      directors             (times)            person (times)                              presence (times)                           consecutive
                                                                        on (times)
                                                                                                                                      sessions or not
    Liu Zhenping                             16                     5                     11                       0                   0 No
    Dou Linping                              16                     5                     11                       0                   0 No
    Zhang Haixia                             10                     2                     8                        0                   0 No
    Xue Yizhong                               6                     3                     3                        0                   0 NoPresence of independent directors in
                                                                                                                                                        3shareholders’ general meeting (times)2. Particulars about independent directors propose objection on relevant eventsDid independent directors raise any disagreement about matters of the Company?√ Yes □ No
      Name of independent director                      What the disagreement is about                             Contents of the disagreement
                                                                                                          The three independent directors were of
                                                Proposal      on      the   treatment           of     the the opinion that: The “Equity Transfer
                                                Company’s          equity-holdings        in        Hefei Agreement”    was    signed     with    Hefei
                                                Guoxuan Hi-tech Power Energy Co., Ltd. Guoxuan Marketing Planning Co., Ltd. onLiu Zhenping, Dou Linping and Xue & the termination of the “Equity Transfer 14 Jul. 2010 upon approval of the
    Yizhong                                         Agreement” signed by the Company and Company’s                         Board   of    Directors.    The
                                                Hefei Guoxuan Marketing Planning Co., contract is now still in execution. If the
                                                Ltd. on an earlier date                                   equity cannot be transferred on the
                                                                                                          conditions     mentioned     in   the     board
                                                                                                          resolution on 12 Sept. 2012, the three
                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                       independent directors are against the
                                                                       termination    of    the   “Equity   Transfer
                                                                       Agreement” on an earlier date so that the
                                                                       Company can avoid unnecessary loss. So
                                                                       the three independent directors have voted
                                                                       against the proposal (for more details, see
                                                                       the “Announcement No. 2012-056 on
                                                                       Resolutions of the 25th Session of the 6th
                                                                       Board of Directors” disclosed by the
                                                                       Company       on    http://www.cninfo.com.cn
                                                                       dated 26 Sept. 2012).Explanation about the disagreement raised
                                            Naughtby independent directors3. Other explanation on performance of independent directorsWhether the advices of independent directors for the Company were adopted or not?√ Yes □ NoExplanation on the advices of independent directors for the Company being adoptedDuring the reporting period, in accordance with the requirements of Company Law, Code ofGovernance of Listed Companies, Articles of Association and relevant systems, the independentdirectors of the Company attended the board sessions held during the reporting period, carefullyreviewed the proposals proposed on the sessions, paid attention to the operation of the Company,performed the duties sincerely and diligently, and issued independent opinion on the related-partytransactions, equity transfer, external financial subsidies, etc., as well as proposed many preciousadvices on perfection of systems and decision of routine operation of the Company, so as to play anactive role in protecting the legal right of the Company and its shareholders.IV. Performance of the Special Committees under the Board during the reporting period(I) Work situation of the Audit CommitteeAccording to the related provisions of China Securities Regulatory Commission and ShenzhenStock Exchange, as well as the Rules of Implementation for the Audit Committee of the Board, theAudit Committee diligently performed the following work duties:1. On 18 Jan. 2012, the Audit Committee convened a session and carefully reviewed the financialstatements submitted by the Company’s Financial Department, including the balance sheet as at 31
                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.Dec. 2011, the profit statement, the statement of changes in shareholders’ equity and the cash flowstatement as of the fiscal year 2011, as well as the notes to the said financial statements. Specialattention has been paid to the authenticity and completeness of the accounting data, as well aswhether the financial statements are in strict compliance with the 38 specific rules, including thenewly issued Accounting Standards for Business Enterprises, and the Company’s regulationsconcerning financial affairs. And the Audit Committee believed that the Company’s financialstatements basically reflect the financial situation, operating results and cash flow of the Companyduring the reporting period.Since there is a period of time between this preliminary review of the financial statements and theformal issuance of the auditor’s report and the financial statements, we hereby remind theCompany’s Financial Department to pay attention to dealing with the follow-up affairs after the dateof Balance Sheet in strict compliance with the New Accounting Standards for Business Enterprises,so as to ensure the factuality, fairness and completeness of the financial statements.2. On 16 Apr. 2012, the Audit Committee convened a session and reviewed the financial statementssubmitted by the Company, on which the registered accountants had issued their preliminary auditopinions, including the balance sheet as at 31 Dec. 2011, the profit statement, the statement ofchanges in shareholders’ equity and the cash flow statement as of the fiscal year 2011, as well as thenotes to the said financial statements.After the communication with the registered accountants regarding their preliminary audit opinions,as well as our further referring to the supplementary account books and records, the AuditCommittee believed that the Company had handled the events after the balance sheet date in strictcompliance with the New Accounting Standards for Business Enterprises; And the Company hasprepared its financial statements in accordance with the New Accounting Standards for BusinessEnterprises and the related financial system of the Company, which are a fair presentation of thefinancial position of the Company as at 31 Dec. 2011, as well as the operating results and cashflows for the year then ended. All members of the Audit Committee signed to approve the followingproposals:(1) 2011 annual financial and accounting report of the Company;(2) Summary report by the Audit Committee on the 2011 annual audit performed by GP CertifiedPublic Accountants Co., Ltd.;(3) GP Certified Public Accountants Co., Ltd. has been serving as the Company’s annual auditor for
                                                     2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.more than ten years. And it performed competently, diligently and responsibly during the 2011annual auditing. Therefore, the Audit Committee hereby proposes to renew the employment of GPCertified Public Accountants Co., Ltd. as the annual auditor for the year 2012.3. The Audit Committee convened a session on 27 Aug. 2012 to review the Work Report &Summary on Internal Audit of the Company submitted by the Audit Department and Proposal onEngagement of Principal of the Audit Department of the Company.4. The Audit Committee convened a session on 27 Nov. 2012 to review the Work Report on InternalAudit of the Company submitted by the Audit Department.(II) Work situation of the Remuneration and Appraisal CommitteeDuring the reporting period, based on the completion status of the Company’s major financialtargets and business objectives in 2011, the work scopes and main responsibilities of the Company’spresent directors, supervisors and other senior management staffs, and the completion status ofindexes concerning the performance assessment of the Company’s directors, supervisors and othersenior management staffs, the Committee conducted an assessment in regard to the remuneration ofthe directors, supervisors and other senior management staffs and believed that the remunerationrange for the directors, supervisors and other senior management staffs were decided and adopted inaccordance with the relevant stipulations in the Management System on Decision of Remuneration;The Company’s provision for the incentive funds was in line with the requirements of the EquityIncentive Mechanism for Middle-and Top-Rank Management Staffs, and the Company’s incentivesto its middle-and top-rank management staffs and its operational and technical professionals was inaccordance with relevant laws and regulations, which would promote the close connection ofinterest among the management staffs, the Company and its shareholders.(III) Work situation of the Strategy CommitteeDuring the reporting period, the Strategy Committee made research and issued advices on theCompany’s operation development situation, and significant capital operation & assets managementprojects needing the approval of the Board of Directors stipulated in the Articles of Association.V. Performance of the Supervisory CommitteeWhether the Supervisory Committee finds the Company existing risks or not in the supervisoryactivities during the reporting period?□ Yes √ NoIn 2012, the Company continued to perform its duties diligently in accordance with the stipulationsof the Company Law, Code of Governance of Listed Company and Articles of Association as wellas other relevant rules, and actively protected the interest of the Company, its shareholders andstaffs.
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.(I) Work situation of the Supervisory Committee during the reporting periodThe Supervisory Committee convened three sessions during the reporting period. And the Chairmanof the Supervisory Committee took part in the sessions held by the Board of Directors and themanagement team meetings, participating in the discussion of the Company’s important decisions.Sessions held by the Supervisory Committee are specified as follows:1. On 23 Apr. 2012, the 5th Session of the 6th Supervisory Committee was held at the ConferenceRoom on 5/F of the Company building. Five supervisors were supposed to attend the meeting andfour of them were actually present. Supervisor Mr. Zhuang Rujia, who was on a business trip at thattime, entrusted Supervisor Jiao Zhigang to vote on his behalf. The session was in accordance withthe Company Law and the Articles of Association of the Company. Mr. Jiao Zhigang, Chairman ofthe Supervisory Committee, presided over the session, with the resolutions approved as follows:(1) The 2011 Annual Work Report of the Supervisory Committee;(2) The 2011 Annual Report and its Summary, including both versions in the Chinese language andEnglish language;(3) The 2011 Annual Financial Statement Report;(4) The 2011 Annual Profit Distribution Pre-plan;(5) The Proposal on Re-engagement of CPAs Firm;(6) The Proposal on the 2011 Annual Self-appraisal Report on Internal Control;(7) The First Quarterly Report in 2012 for the Company.2. The Company convened the 6th Session of the 6th Supervisory Committee by way oftelecommunication on 25 Jul. 2012, the five supervisors, who should attend the session, all voted onthe proposals proposed on the session, and approved the Proposal on Revising the Rules ofProcedures for Supervisory Committee with five yes-votes.3. On 27 Aug. 2012, the 7th session of the 6th supervisory committee was held in the meeting roomof the 5th floor of the Company’s office building. 5 supervisors were supposed to attend and 4 ofthem participated in the meeting. Mr. Zhuang Rujia asked for a leave and entrusted Jiao Zhigang,the supervisor, to vote instead of him. The meeting complied with Company Laws and Articles ofAssociation. Jiao Zhigang, chairman of the supervisory committee, presided over the meeting andreviewed and approved the following resolutions:(1) 2012 semi-annual report and abstract (Chinese and English version)(2)Proposal on Conducting No Profit distribution and No Transfer of Capital Reserve to CommonShares during the First Half Year of 2012(II)Independent opinions from the Supervisory Committee on the following matters:1. About the Company’s operation in accordance with the law. During the reporting period, theCompany’s supervisors have supervised on the procedures for convening the shareholders’ generalmeetings and Board sessions, the resolutions and decision-making procedures, particulars on the
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.execution of resolutions made at the shareholders’ general meeting by the Board, particulars on theduty performance of the senior executives of the Company and particulars on the execution of themanagement systems of the Company in accordance with relevant laws and regulations, and sat inon the shareholders’ general meetings and Board sessions. The Supervisory Committee is of theopinion that the Board and the senior executives of the Company were scrupulous, diligent,responsible, honest and self-contained, and with compliant and legal decision-making procedures,as well as scrupulously executed the resolutions made at the shareholders’ general meetings over thepast year; besides, the Company found that some related-party transactions occurred in previousperiods failed to be disclosed timely and some original senior management staffs gainedpunishment from CSRC for using the inside information to trade, apart from these, the Company’sBoard of Directors and senior management staffs hadn’t any other behaviors in violation of the laws,rules and the Articles of Association.2. About the inspection on the Company’s financial status. During the reporting period, theSupervisory Committee actively fulfilled the responsibility for inspecting financial status of theCompnay, examined foreign investment of the Company and issued audit opinion on regular reports.The Supervisory Committee is of the opinion that the audit report and the explanation on relatedmatters provided by GP Certified Public Accountants Co., Ltd. is a factual reflection of theCompany’s financial position and operating results.3. About acquisition and sale of significant assets. During the reporting period, there existed noacquisition of significant assets; the Company sold 18.5% equities of Shenzhen Liang Ke VentureCapital Co., Ltd. and 100% equities of Foshan Gaoming Fuwan Landscape Holiday Village Co.,Ltd., the wholly-owned subsidiary of the Company. The Supervisory Committee held the opinionthat trading price of the above transactions was all based on assessment results and very reasonable.The trading procedure was in conformity with laws, which brought no damage to the interests of theCompany.4. About the related transactions. The Supervisory Committee held the opinion that the prices ofrelated transactions in 2012 were fair and reasonable, which did no harm to the interests of theCompany.5. About construction of internal control. During the reporting period, according to Basic Standardsfor Internal Control jointly issued by five ministries and commissions including Ministry of Financeand CSRC and relevant regulations of Guangdong Securities Bureau, the Company employedprofessional consultancy of internal control and conducted overall check and rectification as to theinternal control system. The Supervisory Committee holds the opinion that at present the Companyhas established complete, normative and effective internal control system and strictly executedrelevant work and construction of internal control institution is in conformity with relevant laws,regulations and requirements of regulatory departments.
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.VI. Particulars about independence of the Company from controlling shareholders in business,personnel, assets, organizations and financeThere existed no controlling shareholder in the Company and the Company is separate from the firstlargest shareholder and the second largest shareholder in five aspects including business, personnel,assets, organizations and finance. The Company has independent and complete business and abilityof independent management.VII. Horizontal competitionNon-applicableVIII. Assessment and incentive for senior executivesIn the reporting period, the Remuneration and Appraisal Committee, according to “EstablishingStock Incentive Institution for Senior and Middle-level Management” passed by 2011 AnnualShareholders’ General Meeting and current operation results, distributed remuneration to seniorexecutives.
                                                    2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                              Section IX. Internal ControlI. Construction of Internal ControlIn the reporting period, the Company, according to Basic Standards for Internal Control andSupporting Guidelines of Internal Control jointly issued by five ministries and commissionsincluding Ministry of Finance and CSRC and Notification on Standardizing Internal Control ofListed Companies Inside the Jurisdiction from Guangdong Securities Regulatory Bureau,formulated and disclosed “Working Plan and Implementation Scheme of Standardizing InternalControl”.In order to ensure the smooth development of implementation of internal control normative system,the Company founded leading group and project group of internal control. Chairman of the board ofdirectors acts as head of leading group and hold the responsibility for organizing, supervising,examining and ratifying implementation of internal control in the Company and subsidiaries.Manager of financial department of the Company acts as head of project group and hold theresponsibility for routine work of internal control and putting the implementation scheme of internalcontrol into effect. Meanwhile, in order to keep normative system of internal control in conformitywith requirements of regulatory departments, the Company employed professional consultancy ofinternal control as advisor of internal control implementation; the experts conducted training forleaders in the Company and its subsidiaries and employers who are responsible for internal control,which further promoted the overall and profound development of internal control. Up to the end ofthe reporting period, the Company, according to Working Plan and Implementation Scheme ofStandardizing Internal Control formulated rectification and reform plan on defects of internalcontrol, rectified the defects found in the plan one by one and then formed report on rectifyingdefects and revised “Internal Control Brochure”.II. Statement on the Responsibility for Internal Control from the Board of DirectorsThe Board of Directors and all its directors hereby ensure that this announcement contains no falseinformation, misleading statement or material omission, and shall be jointly and severally liable forthe factuality, accuracy and completeness of the information carried in this announcement.Establishing, perfecting and effectively conducting internal control is the liability of the Board ofDirectors; establishment and implementation of internal control conducted by the Board is under thesupervision of the supervisory committee; the management is responsible for organizing andguiding daily operation of internal control.The goals of the Company’s internal control: reasonably guarantee the legality and compliance ofthe Company’s operating management, safety of assets, authenticity and completeness of financialreport and relevant information; improve efficiency and results of operation; promote the strategicdevelopment of the Company.III. Bases of financial statements of internal controlIn accordance with national accounting principles and relevant laws and regulations, the Companyformulated “Financial Administration System” on the basis of its own actual situation andstandardized financial administration and accounting calculation; clarified responsibility and rightsof relevant departments and positions in the process of formulating financial statements to ensurethe factuality, completeness and accuracy of financial statements. Up to the end of reporting period,
                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.no significant defect was found in internal control of financial statements,IV. Self-assessment report of internal control
    Specific details about significant defects of internal control during the reporting period found in
                              self-assessment report of internal controlOne major defect in related party identification and the decision-making procedure & disclosure ofrelated-party transactions was detected in the reporting period. To correct the defect, the Companytook some rectification measures, including formulating and revising relevant rules, hiring anintermediary agency to investigate the relevant related-party transactions, disclosing the relevantrelated-party transactions as a supplementation, conducting special trainings for directors,supervisors, senior management staff, etc. After these rectifications, the internal control designrelated to the said major defect was completed and running effectively. By the end of the reportingperiod, the Company had formulated internal control over the business and matters included in theappraisal scope, which ran effectively. The internal control objectives were achieved, with nomajor defect.Disclosure date of wholearticle of self-assessment 26 April 2013report of internal controlIndex for disclosure of
    whole        article   of Name of announcement: 2012 Annual Self-assessment Report ofself-assessment report of Internal Control; website of disclosure: www.cninfo.com.cninternal controlV. Audit report of internal control□ Applicable √ Non-applicableVI. Establishment and implementation of institution of clarifying responsibility for majormistakes in annual reportIn order to improve the normative operation of the Company, with the approval of the 3rd session ofthe 6th board of directors, the Company formulated “Institution of Clarifying Responsibility forMajor Mistakes in Information Disclosed of Annual Report”. Formulation of this institutionclarified the responsibility and rights of persons in charge of disclosing information of annual report,emphasized responsibility of persons in charge of disclosing information of annual report andfurther enhanced quality and transparency of information disclosure of annual report. In thereporting period, there existed no significant mistake in information disclosure of annual report
                                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                        Section X. Financial ReportI. Audit report
    Type of audit opinion                                          Standard unqualified audit opinion
    Date of signing the auditor’s report                          24 Apr. 2013
    Name of audit firm                                             GP Certified Public Accountants
    Document No. of the auditor’s report                          GHSS Zi [2013] No. 12005130016
                                              Text of the Auditor’s Report
                                                 Audit Report
                                                                    Guang-Kuai-Suo-Shen-Zi【2012】No. 12005130016All shareholders of Foshan Electrical and Lighting Co., Ltd.:We have audited the accompanying financial statements of Foshan Electrical and Lighting Co., Ltd. (the“Company”), which comprise the Company’s and consolidated balance sheets as at 31 Dec. 2012, theCompany’s and consolidated income statements, the Company’s and consolidated cash flow statements, theCompany’s and consolidated statements of changes in shareholders’ equity for the year then ended, and notesto the financial statements.I. The management’s responsibility for the financial statementsThe management of the Company is responsible for the preparation of these financial statements inaccordance with the Accounting Standards for Business Enterprises. Such a responsibility includes: (1)preparing financial statements according to the Accounting Standards for Business Enterprises and makethem a fair presentation; and (2) designing, implementing and maintaining internal control relevant to thepreparation of financial statements that are free from material misstatement, whether due to fraud or error.II. Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We haveconducted our audit in accordance with the Audit Standards for Chinese Registered Accountants, whichrequire that we comply with ethical requirements and plan and perform the audit to obtain reasonableassurance as to whether the financial statements are free from material misstatement.
                                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisks assessments, the auditor considers the internal control related to the preparation of the financialstatements so as to design proper audit procedures but not for the purpose of expressing an opinion on theeffectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by the directors, as well asevaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis forus to express auditing opinion.III. Audit opinionIn our opinion, the financial statements of the Company have been prepared according to the AccountingStandards for Business Enterprises in all material aspects, which give a fair view of the Company’s financialposition as at 31 Dec. 2011 and the Company’s operating results and cash flows for the year then ended.
    GP Certified Public Accountants                           CPA: Wang Shaohua
                                                          CPA: Chen Danyan
       Guangzhou China                                        24April 2013
                                               2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.II. Financial statementsThe unit in financial statements is RMB Yuan.1. Consolidated balance sheetPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                      Unit: RMB Yuan
                  Item                  Closing balance                           Opening balanceCurrent assets:
    Monetary funds                                         985,450,890.74                             690,691,751.15
    Settlement fund reserve                                          0.00                                           0.00
    Dismantle fund                                                   0.00                                           0.00
    Transaction financial asset                               4,012,728.75                              4,097,366.22
    Notes receivable                                       175,907,019.08                             120,417,089.71
    Account receivable                                     334,006,892.19                             300,223,854.32
    Account paid in advance                                 12,383,426.98                              41,032,860.94
    Premium receivables                                              0.00                                           0.00
    Receivables from reinsurers                                      0.00                                           0.00
    Reinsurance       contract    reserve
                                                                 0.00                                           0.00receivables
    Interest receivable                                      530,542.81                                 506,347.11
    Dividend receivable                                            0.00                                           0.00
    Other account receivable                              56,196,390.54                              18,851,280.96
    Financial assets purchased
                                                                 0.00                                           0.00under agreements to resell
    Inventories                                          434,541,386.19                             493,613,449.06
    Non-current assets due within 1
                                                                 0.00                                           0.00year
    Other current assets                                    2,935,179.47                                          0.00
    Total current assets                                2,005,964,456.75                            1,669,433,999.47Non-current assets:
    Loans and advance                                                0.00                                           0.00
    Available for sale financial assets                     71,817,642.40                              67,814,691.84
    Held to maturity investments                                     0.00                                           0.00
    Long-term account receivable                                   0.00                                           0.00
    Long-term equity investment                          519,693,431.95                             447,024,125.94
    Investing property                                             0.00                                           0.00
                                         2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Fixed asset                                   539,145,022.38                              643,078,677.62
    Project in construction                        95,684,569.86                               88,017,369.74
    Engineering material                                    0.00                                            0.00
    Fixed asset disposal                                      0.00                                            0.00
    Bearer biological asset                                 0.00                                            0.00
    Oil assets                                              0.00                                            0.00
    Intangible assets                             150,424,391.76                              218,637,493.54
    Development expense                                     0.00                                            0.00
    Goodwill                                                0.00                                            0.00
    Long-term        expense    to    be
                                                          0.00                                            0.00apportioned
    Deferred income tax assets                     23,003,056.72                               21,547,993.12
    Other non-current assets                       42,541,730.00
    Total of non-current assets                   1,442,309,845.07                            1,486,120,351.80
    Total assets                                  3,448,274,301.82                            3,155,554,351.27Current liabilities:
    Short-term borrowings                                     0.00                                            0.00
    Borrowings from Central Bank                              0.00                                            0.00Deposits and due to banks and
                                                          0.00                                            0.00other financial institutionsBorrowings from banks and other
                                                          0.00                                            0.00financial institutions
    Transactional             financial
                                                          0.00                                            0.00liabilities
    Notes payable                                           0.00                                            0.00
    Accounts payable                              246,652,513.45                              196,871,864.30
    Accounts received in advance                   19,632,316.50                               18,464,449.37
    Financial assets sold           under
                                                          0.00                                            0.00agreements to repurchase
    Handling      charges              and
                                                          0.00                                            0.00commissions payable
    Employee’s          compensation
                                                 63,086,369.68                               53,489,679.18payable
    Taxes and fares payable                        58,992,047.62                                -2,082,582.68
    Interest payable                                        0.00                                            0.00
    Dividend payable                                        0.00                                            0.00
                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Other accounts payable                            37,085,568.58                               27,119,424.60
    Due to reinsurers                                            0.00                                            0.00
    Insurance contract reserve                                   0.00                                            0.00Amount payable for acting trading
                                                             0.00                                            0.00securities
    Amount payable for                 acting
                                                             0.00                                            0.00underwriting securities
    Non-current        liabilities     due
                                                             0.00                                            0.00within 1 year
    Other current liabilities                                  0.00                                            0.00
    Total current liabilities                          425,448,815.83                              293,862,834.77Non-current liabilities:
    Long-term borrowings                                         0.00                                            0.00
    Debentures payable                                           0.00                                            0.00
    Long-term payables                                           0.00                                            0.00
    Specific-purpose               account
                                                             0.00                                            0.00payables
    Accrued liabilities                                        0.00                                            0.00
    Deferred income tax liabilities                      6,268,824.89                                5,668,382.31
    Other non-current liabilities                       19,353,441.69                               17,677,441.69
    Total non-current liabilities                       25,622,266.58                               23,345,824.00
    Total liabilities                                  451,071,082.41                              317,208,658.77Shareholders’ equity
    Share capital                                      978,563,745.00                              978,563,745.00
    Capital surplus                                    625,595,757.07                              622,193,249.09
    Less: Treasury Stock                                         0.00                                            0.00
    Special reserve                                              0.00                                            0.00
    Surplus reserve                                    622,494,531.96                              583,537,290.22
    General risk provision                                       0.00                                            0.00
    Retained earnings                                  723,452,942.14                              606,584,375.02
    Foreign exchange difference                                  0.00                                            0.00Total owners' equity attributable
                                                 2,950,106,976.17                            2,790,878,659.33to holding company
    Minority interests                                  47,096,243.24                               47,467,033.17
    Total owners’ equity                            2,997,203,219.41                            2,838,345,692.50
                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Total liabilities and owners’ equity                        3,448,274,301.82                            3,155,554,351.27
    Legal Representative: Zhong Xincai                     Person-in-charge of the accounting work: Zhong XincaiAccounting Manager: Wang Shuqiong2. Balance sheet of parent companyPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                  Unit: RMB Yuan
                  Item                        Closing balance                              Opening balanceCurrent assets:
    Monetary funds                                                 699,511,754.78                              412,626,723.50
    Transaction financial asset                                      4,012,728.75                                4,097,366.22
    Notes receivable                                               167,509,926.71                              117,057,089.71
    Account receivable                                             362,956,611.71                              321,717,684.58
    Account paid in advance                                         12,705,111.19                               19,337,394.94
    Interest receivable                                                    0.00                                            0.00
    Dividend receivable                                                    0.00                                            0.00
    Other account receivable                                      82,043,309.37                               61,235,503.93
    Inventories                                                  389,680,405.66                              441,232,800.79
    Non-current assets due within 1
                                                                         0.00                                            0.00year
    Other current assets                                           2,935,179.47                                            0.00
    Total current assets                                         1,721,355,027.64                            1,377,304,563.67Non-current assets:
    Available for sale financial assets                             71,817,642.40                               67,814,691.84
    Held to maturity investments                                             0.00                                            0.00
    Long-term account receivable                                           0.00                                            0.00
    Long-term equity investment                                  880,176,969.18                              817,501,125.94
    Investing property                                                     0.00                                            0.00
    Fixed asset                                                  443,001,716.36                              544,553,576.11
    Project in construction                                       66,216,618.10                               41,158,543.29
    Engineering material                                                   0.00                                            0.00
    Fixed asset disposal                                                     0.00                                            0.00
    Bearer biological asset                                                0.00                                            0.00
    Oil assets                                                             0.00                                            0.00
                                            2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Intangible assets                                130,800,094.82                              199,532,111.28
    Development expense                                        0.00                                            0.00
    Goodwill                                                   0.00                                            0.00
    Long-term        expense       to    be
                                                             0.00                                            0.00apportioned
    Deferred income tax assets                        20,724,220.91                               21,386,906.12
    Other non-current assets                          41,783,700.00                                            0.00
    Total of non-current assets                      1,654,520,961.77                            1,691,946,954.58
    Total assets                                     3,375,875,989.41                            3,069,251,518.25Current liabilities:
    Short-term borrowings                                        0.00                                            0.00
    Transactional                financial
                                                             0.00                                            0.00liabilities
    Notes payable                                              0.00                                            0.00
    Accounts payable                                 265,603,565.11                              183,223,573.81
    Accounts received in advance                      19,586,999.28                               19,276,919.50
    Employee’s            compensation
                                                    63,084,499.68                               53,120,689.68payable
    Taxes and fares payable                           58,950,265.18                                1,005,639.26
    Interest payable                                           0.00                                            0.00
    Dividend payable                                           0.00                                            0.00
    Other accounts payable                            38,631,089.33                               31,370,556.92
    Non-current          liabilities    due
                                                             0.00                                            0.00within 1 year
    Other current liabilities                                  0.00                                            0.00
    Total current liabilities                          445,856,418.58                              287,997,379.17Non-current liabilities:
    Long-term borrowings                                         0.00                                            0.00
    Debentures payable                                           0.00                                            0.00
    Long-term payables                                           0.00                                            0.00
    Specific-purpose                 account
                                                             0.00                                            0.00payables
    Accrued liabilities                                        0.00                                            0.00
    Deferred income tax liabilities                      6,268,824.89                                5,668,382.31
    Other non-current liabilities                       10,218,441.73                               10,387,441.69
                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Total non-current liabilities                                   16,487,266.62                               16,055,824.00
    Total liabilities                                              462,343,685.20                              304,053,203.17Shareholders’ equity
    Share capital                                                  978,563,745.00                              978,563,745.00
    Capital surplus                                                622,494,930.13                              619,092,422.15
    Less: Treasury Stock                                                     0.00                                            0.00
    Special reserve                                                          0.00                                            0.00
    Surplus reserve                                                622,494,531.96                              583,537,290.22
    General risk provision                                                   0.00                                            0.00
    Retained earnings                                              689,979,097.12                              584,004,857.71
    Foreign exchange difference                                              0.00                                            0.00
    Total owners’ equity                                        2,913,532,304.21                            2,765,198,315.08
    Total liabilities      and      owners’
                                                             3,375,875,989.41                            3,069,251,518.25equity
    Legal Representative: Zhong Xincai                     Person-in-charge of the accounting work: Zhong XincaiAccounting Manager: Wang Shuqiong3. Consolidated profit statementsPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                  Unit: RMB Yuan
                Item                          Current amount                              Last-term amount
    I. Total operating revenue                                   2,201,910,731.89                            2,260,929,873.55
    Including: Operating income                                  2,201,910,731.89                            2,260,929,873.55
        Interest income                                                  0.00                                            0.00
        Premium income                                                   0.00                                            0.00
      Handling charges              and
                                                                         0.00                                            0.00commission income
    II. Total operating cost                                     1,926,164,570.86                            1,892,933,932.01
    Including: Operating cost                                    1,630,429,477.94                            1,620,862,551.60
        Interest expenses                                                0.00                                            0.00
      Handling charges              and
                                                                         0.00                                            0.00commission expenses
        Cash surrender value                                             0.00                                            0.00
        Net amount of claims                                             0.00                                            0.00
        Net         provision       for                                  0.00                                            0.00
                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.insurance contract reserve
       Expenditure       on    policy
                                                         0.00                                            0.00dividends
        Reinsurance premium                              0.00                                            0.00
    Taxes and associate charges                     23,233,814.54                               25,814,560.10
    Sales and distribution expenses                109,867,531.15                              104,154,716.99
    Administrative expenses                        167,102,936.83                              150,580,090.88
    Financial expenses                             -10,988,942.10                                -7,494,610.15
    Asset impairment loss                            6,519,752.50                                 -983,377.41Add: Gain/(loss) from change in
                                                   -84,637.47                                 -889,545.48fair value (“-” means loss)Gain/(loss) from investment (“-”
                                               207,689,597.70                                -5,491,145.47means loss)
    Including:        income        form
    investment         on      affiliated
                                               -10,330,609.99                                -7,949,712.62
    enterprises      and     jointly-runenterprisesForeign exchange difference (“-”
                                                         0.00                                            0.00means loss)III. Business profit (“-” means
                                               483,351,121.26                              361,615,250.59loss)
    Add: non-operation income                        3,156,834.84                                4,361,809.74
    Less: non-business expense                      14,444,931.60                               10,830,409.12Including: loss from non-current
                                                 9,936,458.71                                7,128,432.51asset disposal
    IV. Total profit (“-” means loss)            472,063,024.50                              355,146,651.21
    Less: Income tax expense                        71,833,165.24                               57,872,709.83
    V. Net profit (“-” means loss)               400,229,859.26                              297,273,941.38Including: net profit of the merged
                                                         0.00                                            0.00party before the merger
    Attributable to parent company                 400,466,745.11                              291,660,093.73
    Minority interests                                -236,885.85                                5,613,847.65
    VI. Earnings per share                  --                                         --
    (I) basic earnings per share                             0.41                                             0.3
    (II) diluted earnings per share                          0.41                                             0.3
    Ⅶ. Other comprehensive income                   3,402,507.98                              -23,053,525.44
    Ⅷ. Total comprehensive income                 403,632,367.24                              274,220,415.94
                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Attributable to owners of parent
                                                               403,869,253.09                              268,606,568.29company
    Attributable       to      minority
                                                                  -236,885.85                                5,613,847.65shareholdersAs to the merger which occurred among companies under the same control and during this period, net profitof the merged party before the merger is: 0.00RMB
    Legal Representative: Zhong Xincai                     Person-in-charge of the accounting work: Zhong XincaiAccounting Manager: Wang Shuqiong4. Profit statement of parent companyPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                  Unit: RMB Yuan
                 Item                         Current amount                              Last-term amount
    I. Operating revenue                                         2,216,844,850.02                            2,262,221,459.27
    Including: Operating cost                                    1,682,102,048.21                            1,676,318,053.17
    Taxes and added charges                                         19,629,425.59                               22,868,216.59
    Sales and distribution expenses                                105,359,987.08                               99,130,328.42
    Administrative expenses                                        145,108,688.14                              130,480,939.46
    Financial expenses                                              -3,585,394.00                                -3,606,408.54
    Asset impairment loss                                            6,930,522.03                                 -959,224.76Add: Gain/(loss) from change in
                                                                   -84,637.47                                 -889,545.48fair value (“-” means loss)Gain/(loss) from investment (“-”
                                                               199,549,193.84                                2,443,378.73means loss)Including: income forminvestment on affiliated
                                                               -10,330,609.99                                -7,949,712.62enterprises and jointly-runenterprisesII. Business profit (“-” means
                                                               460,764,129.34                              339,543,388.18loss)
    Add: non-operation income                                        2,716,267.40                                3,488,609.35
    Less: non-business expense                                       4,902,423.79                               10,116,642.57Including: loss from non-current
                                                                 1,903,917.31                                7,085,058.37asset disposal
    III. Total profit (“-” means loss)                           458,577,972.95                              332,915,354.96
    Less: Income tax expense                                        69,005,555.55                               51,881,712.45
    IV. Net profit (“-” means loss)                              389,572,417.40                              281,033,642.51
                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    V. Earnings per share                                  --                                          --(I) basic earnings per share(II) diluted earnings per share
    VI. Other comprehensive income                                   3,402,507.98                              -23,053,525.44
    VII. Total comprehensive income                                392,974,925.38                              257,980,117.07
    Legal Representative: Zhong Xincai                     Person-in-charge of the accounting work: Zhong XincaiAccounting Manager: Wang Shuqiong5. Consolidated cash flow statementPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                  Unit: RMB Yuan
               Item                           Current amount                              Last-term amountI. Cash flows from operatingactivities:
    Cash received from sale of
    commodities and rendering of                                 2,381,547,105.10                            2,480,085,498.99service
    Net increase of deposits fromcustomers and dues from banks
    Net increase of loans from thecentral bank
    Net increase of funds borrowedfrom other financial institutions
    Cash received from premium oforiginal insurance contracts
    Net cash received              fromreinsurance business
    Net increase of savings ofpolicy holders and investmentfund
    Net increase of disposal oftradable financial assets
    Cash received from interest,
    handling     charges      andcommissions
    Net increase of borrowingsfrom banks and other financialinstitutions
                                       2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Net increase of buy-back funds
    Tax refunds received                         47,914,470.99                               64,821,377.95
    Other cash received relating to
                                               25,721,746.18                               18,586,117.97operating activities
    Subtotal of cash inflows from
                                            2,455,183,322.27                            2,563,492,994.91
       operating activities
    Cash paid for goods and
                                            1,362,553,158.60                            1,669,574,884.48services
    Net increase of        customerlending and advance
    Net increase of funds depositedin the central bank and amountdue from banks
    Cash for paying claims of theoriginal insurance contract
    Cash for      paying     interest,
    handling       charges          andcommissions
    Cash for       paying     policydividends
    Cash paid to and for employees              349,423,602.39                              329,714,926.39
    Various taxes paid                          167,276,167.33                              164,245,447.33
    Other payment of cash relating
                                              138,533,541.89                              130,079,293.50to operating activitiesSubtotal of cash outflows from
                                            2,017,786,470.21                            2,293,614,551.70
      operating activities
    Net cash flows from operating
                                              437,396,852.06                              269,878,443.21
             activitiesII. Cash Flows from investmentactivities:
    Cash       received         from
                                                                                           34,103,639.62withdrawing investments
    Cash received from investment
                                               26,729,133.84                                3,458,567.15income
    Net cash received from disposal
    of fixed assets, intangible assets              1,528,546.04                                1,033,474.13and other long-term assets
    Net cash received from disposal
                                              293,651,602.14of subsidiary or other operating
                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.business units
    Other cash received relatingto investment activities
       Subtotal of cash inflows
                                             321,909,282.02                               38,595,680.90from investment activities
    Cash paid to acquire fixed
    assets, intangible assets and other           51,920,198.54                               67,885,400.28long-term assets
    Cash paid for investment                    83,999,916.00                               12,600,000.00
    Net increase of pledged loans
    Net cash paid to acquiresubsidiaries and other operatingunits
    Payment of cash relating to
                                              83,465,700.00other investment activitiesSubtotal of cash outflows from
                                             219,385,814.54                               80,485,400.28
    investment activitiesNet cash flows from investment
                                             102,523,467.48                              -41,889,719.38
            activitiesIII. Cash Flows from FinancingActivities:
    Cash received from absorbinginvestment
    Including: Cash received bysubsidiaries from increase inminority interests
    Cash         received     fromborrowings
    Cash received from issuanceof bonds
    Other cash received relating tofinancing activities
    Subtotal of cash inflows from
                                                                                                       0.00
       financing activities
    Cash repayments of amountsborrowed
    Cash    paid    for interest
    expenses and distribution of                 244,774,840.33                              248,056,198.83dividends or profit
                                                        2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Including: dividends or profit
    paid by subsidiaries to minority                                   133,904.08                                3,415,262.58shareholders
      Other cash payments relatingto financing activitiesSub-total of cash outflows from
                                                               244,774,840.33                              248,056,198.83
       financing activities
    Net cash flows from financing
                                                              -244,774,840.33                             -248,056,198.83
             activitiesIV. Effect of foreign exchange rate
    changes on cash and cash                                          -386,339.62                                -1,094,406.80equivalentsV. Increase in cash and cash
                                                               294,759,139.59                              -21,161,881.80equivalents
    Add : Balance of cash and
                                                               690,691,751.15                              711,853,632.95cash equivalents at year-beginVI. Balance of cash and cash
                                                               985,450,890.74                              690,691,751.15equivalents at the end of the year
    Legal Representative: Zhong Xincai                     Person-in-charge of the accounting work: Zhong XincaiAccounting Manager: Wang Shuqiong6. Cash flow statement of parent companyPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                  Unit: RMB Yuan
               Item                           Current amount                              Last-term amountI. Cash flows from operatingactivities:
    Cash received from sale of
    commodities and rendering of                                 2,390,552,016.17                            2,454,381,553.70service
    Tax refunds received                                          47,914,470.99                               64,821,377.95
    Other cash received relating to
                                                                22,387,293.70                               13,632,400.76operating activities
    Subtotal of cash inflows from
                                                             2,460,853,780.86                            2,532,835,332.41
       operating activities
    Cash paid for goods and
                                                             1,484,604,775.70                            1,787,726,506.82services
    Cash paid to and for employees                               291,808,054.96                              276,515,396.13
                                      2012 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Various taxes paid                         135,663,851.80                              137,328,799.92
    Other payment of cash relating
                                             131,406,374.13                              110,612,475.52to operating activitiesSubtotal of cash outflows from
                                           2,043,483,056.59                            2,312,183,178.39
      operating activities
    Net cash flows from operating
                                             417,370,724.27                              220,652,154.02
             activitiesII. Cash Flows from investmentactivities:
    Cash       received         from
                                                                                             913,639.62withdrawing investments
    Cash received from investment
                                              27,130,846.06                               18,621,319.65income
    Net cash received from disposal
    of fixed assets, intangible assets             1,399,354.41                                  106,751.64and other long-term assets
    Net cash received from disposal
    of subsidiary or other operating             315,073,197.79business units
    Other cash received relatingto investment activities
       Subtotal of cash inflows
                                             343,603,398.26                               19,641,710.91from investment activities
    Cash paid to acquire fixed
    assets, intangible assets and other           28,397,908.80                               35,537,799.22long-term assets
    Cash paid for investment                   117,199,916.00                              227,600,000.00
    Net cash paid to acquiresubsidiaries and other operatingunits
    Payment of cash relating to
                                         &nbs